Sunday, January 11, 2004
DEBT FREE
ONE OF A KIND INVESTMENT POTENTIAL
CONTINUED GROWTH EXPECTED
OVER 1000 THEATERS BY END OF 2005, POTENTIAL IS UNKNOWN
ONE OF A KIND INVESTMENT POTENTIAL
CONTINUED GROWTH EXPECTED
OVER 1000 THEATERS BY END OF 2005, POTENTIAL IS UNKNOWN
Theaters with more screens have more admissions and concession revenue, but also have higher expenses for cleaning and customer service. Also, the average people per show tends to be lower, as the top 4 films will draw a higher per screen average. Therefore, the profit tends to be similiar.
20431 in
16717 out
$3714 profit per week x 50 weeks o' the year (50 used to cover for bad weather) =
$185700 x 548 theaters = $101,763,600
$101.7636 mil/40 million shares = $2.54409 per share
If P/E is 20, share price would be $50.8818
16717 out
$3714 profit per week x 50 weeks o' the year (50 used to cover for bad weather) =
$185700 x 548 theaters = $101,763,600
$101.7636 mil/40 million shares = $2.54409 per share
If P/E is 20, share price would be $50.8818
Saturday, January 10, 2004
Expenses
General manager salary--$50K
Director of Theater Ops---40K
Managers (2)----------------35K
Total salaried payroll------160K
160k/52 = 3077
Hourly payroll, 8 people per hour open,
Sun-Thurs---12noon-10:30, 10.5 x 5 = 52.5
Fri-Sat--------11:30AM-12:30AM, 13 x 2 + 26
78.5 x 8 = 628
628 x $8.50 = 5338
3077 + 5338 = 8415 total payroll
Concession cost = 15% of concession sales
$11502 x .15 = 1725
Maintenance = $500
Overhead = $1000
Misc = $1000
Benefits = $3500
Corporate expense, 400 people x $30000 = 12M/400 theaters = 30K/52 = 577
Total expenses = 16,717
General manager salary--$50K
Director of Theater Ops---40K
Managers (2)----------------35K
Total salaried payroll------160K
160k/52 = 3077
Hourly payroll, 8 people per hour open,
Sun-Thurs---12noon-10:30, 10.5 x 5 = 52.5
Fri-Sat--------11:30AM-12:30AM, 13 x 2 + 26
78.5 x 8 = 628
628 x $8.50 = 5338
3077 + 5338 = 8415 total payroll
Concession cost = 15% of concession sales
$11502 x .15 = 1725
Maintenance = $500
Overhead = $1000
Misc = $1000
Benefits = $3500
Corporate expense, 400 people x $30000 = 12M/400 theaters = 30K/52 = 577
Total expenses = 16,717
Money coming in, based on a 4 screen theater:
Admission averages, per day--
Friday afternoon, 75 per show, x 2 shows, x 4 screens = 600
Friday night, 150 ps x 2 shows, x 4 screens = 1200
Friday total = 1800
Saturday, all shows, 150 per show x 4 shows x 4 screens = 2400
Sunday afternoon = 150 ps x 2 shows x 4 screens = 1200
Mon, Tues, Thur afternoon, 25 ps x 2 shows, x 4 screens x 3 days = 600
Sun, Mon, Tues, Thur evening, 75 per show, x 1 show x 4 screens, x 4 nights = 1200
Wed afternoon, 50 ps x 2 shows, x 4 screens = 400
Wed night, 125 ps x 1 show x 4 screens = 500
Total weekly admissions--8100
Share from admission = $8100
Per customer concession average--$1.51
Concession revenue = $12231
Misc revenue-- $100
Total revenue-- $20431
Admission averages, per day--
Friday afternoon, 75 per show, x 2 shows, x 4 screens = 600
Friday night, 150 ps x 2 shows, x 4 screens = 1200
Friday total = 1800
Saturday, all shows, 150 per show x 4 shows x 4 screens = 2400
Sunday afternoon = 150 ps x 2 shows x 4 screens = 1200
Mon, Tues, Thur afternoon, 25 ps x 2 shows, x 4 screens x 3 days = 600
Sun, Mon, Tues, Thur evening, 75 per show, x 1 show x 4 screens, x 4 nights = 1200
Wed afternoon, 50 ps x 2 shows, x 4 screens = 400
Wed night, 125 ps x 1 show x 4 screens = 500
Total weekly admissions--8100
Share from admission = $8100
Per customer concession average--$1.51
Concession revenue = $12231
Misc revenue-- $100
Total revenue-- $20431
We will only purchase theaters with:
1. 4 or more screens (6 preferred).
2. Enough parking.
All theaters will have:
1. Extra wide, comfortable seats with cupholders. If not there, we will install, without exception.
2. The highest standards of cleanliness and customer service in the industry.
Benefits of employment include:
1. 4 day weeks for management.
2. No late shows Sun-Thurs.
3. Closed Xmas Eve and Xmas Day.
4. Bonuses, benefits, and pay will lead the industry.
5. Insurance plans for all associates (90% paid for F/T upon hire, 75% paid for P/T, after one year)
6. Common sense and respect are our main decision making methods.
1. 4 or more screens (6 preferred).
2. Enough parking.
All theaters will have:
1. Extra wide, comfortable seats with cupholders. If not there, we will install, without exception.
2. The highest standards of cleanliness and customer service in the industry.
Benefits of employment include:
1. 4 day weeks for management.
2. No late shows Sun-Thurs.
3. Closed Xmas Eve and Xmas Day.
4. Bonuses, benefits, and pay will lead the industry.
5. Insurance plans for all associates (90% paid for F/T upon hire, 75% paid for P/T, after one year)
6. Common sense and respect are our main decision making methods.
I will use this blog to write down my thoughts on my ideas on how to run a profitable business.
