zipcar+fishbone (1)

24
Cost/Car Car Cost/Member Member Monthl Revenues/Member Monthly Monthly I # Members Contribution Margin/Member Contribution Margin per Month

Upload: krishna-srikumar

Post on 28-Dec-2015

314 views

Category:

Documents


14 download

DESCRIPTION

Zipcar Harvard solution

TRANSCRIPT

Cost/CarCar Cost/Member

Members/Car

Monthly fee

Revenues/MemberMonthly Usage

Monthly Interest

# Members

Contribution Margin/Member

Total Contribution Margin per Month

Forecast ActualLeaseAccessInsuranceParkingMaintenanceFuel

Hours Used/MonthUtilization Rate

Monthly fee

Uses/Member$/HourHours/Use$/MileMiles/Use

Uses/MemberDaily Usage Member $/Hour

Hours/Use$/MileMiles/Use

$/MemberI rate (monthly)

Beginning MembersNew Members (sept)

Attrition

Hourly Usage Member

Cost/CarCar Cost/Member 723.33 778.16

39.45 67.14Members/Car

18.33 11.5991.00 26.10 220/12 P. 15 5,088/439 P. 20

Monthly fee6.25 6.25

15,469.23 4,437.41

Revenues/Member130.45 93.24 Monthly Usage

123.2 86.34(92,928+232,320)

(12*220)

Monthly Interest1 0.65

# Members170.00 170.00

Exb 8A

Contribution Margin/Member

Total Contribution Margin per Month

1

Lease 366.67 400.00 4400/12 Page 15, 4800/12 Page 11 2

Access 41.67 41.67 500/12 Page 15 3

Insurance 141.67 141.67 1700/12 Page 15 4

Parking 50.00 62.50 600/12 Page 15, 750/12 Page 11 5

Maintenance 33.33 33.33 400/12 Page 15 6

Fuel 90.00 99.00 1080/12 Page 15, 10% higher Page 11 7

8

Hours Used/Month 16.00 19.00 4x4 Page 15, Page 20 9

Utilization Rate 40.0% 30.6% Page 5 10

11

Monthly fee 6.25 6.25 75/12 Note B Exb 8B 12

13

Uses/Member 1.29 218/169.6 Page 20 14

$/Hour 5.34 7,220.5/1,351 Page 20 15

54.99 Hours/Use 6.20 1,351/218 Page 20 16

$/Mile 0.39 2,106/5,341 Page 20 17

Miles/Use 24.50 5,341/218 Page 20 18

19

Uses/Member 0.69 117/169.6 Page 20 20

Daily Usage Member $/Hour 2.75 5,148/1,872 Page 20 21

31.35 Hours/Use 16.00 1,872/117 Page 20 22

$/Mile 0.02 169.6/10,998 Page 20 23

Miles/Use 94.00 10,998/117 Page 20 24

25

$/Member 300.00 300.00 26

I rate (monthly) 0.33 0.37 27

28

Beginning Members 141.00 141.00 Exb 8A 29

New Members (sept) 101.00 101.00 Exb 8A 30

31

Attrition 0.01 0.02 32

1.69 2.96 141.00 141.00 33

Hourly Usage Member

Cost/CarCar Cost/Member 9.00 9.00

17.00 18.00Members/Car

15.00 16.0027.00 27.00 15 16.00

Monthly fee19 19.00

29 29.00

Revenues/Member26 26.00 Monthly Usage

23 23.0023

23

Monthly Interest25 25.00

# Members28 28.00

28.00

Contribution Margin/Member

Total Contribution Margin per month

Lease 1.00 2.00 2.00

Access 3.00 3.00 3.00

Insurance 4.00 4.00 4.00

Parking 5.00 6.00 6.00

Maintenance 7.00 7.00 7.00

Fuel 8.00 9.00 9.00

Hours Used/Month 16.00 16.00 16.00

Utilization Rate 16.00 16.00

Monthly fee 19.00 19.00 19.00

Uses/Member 19.00 19.00

$/Hour 19.00 19.00

21.00 Hours/Use 19.00 19.00

$/Mile 19.00 19.00

Miles/Use 19.00 19.00

Uses/Member 20.00 20.00

Daily Usage Member $/Hour 20.00 20.00

22.00 Hours/Use 20.00 20.00

$/Mile 20.00 20.00

Miles/Use 20.00 20.00

$/Member 24.00 24.00I rate (monthly) 24.00 24.00

Beginning Members 28.00 28.00 28.00

New Members (sept) 28.00 28.00 28.00

Attrition 28.00 28.0028 28.00 28.00 28.00

Hourly Usage Member

Assumption Year 0 Year 1 Year 2 Year 3Beginning Members - 440 856 Attrition 0.15 - 66 128.4 Ending members 440 856 908 New Members 440 482 180.4 Avg # of Members 220 648 882

Uses/Member 1.29$/Mile 0.39

Miles/Use 24.50 32,782 96,558 131,426 $/Hour 5.34

Hours/Use 6.20 112,395 331,053 450,600 TOTAL Hourly Usage 145,177 427,611 582,026

$/Mile 0.02

Miles/Use 94.00 4,919 14,489 19,721 $/Hour 2.75

Hours/Use 16.00 149,309 439,784 598,595 TOTAL Monthly Usage 154,228 454,273 618,316

Application Fee (per new member) 25 11,000 12,050 4,510 Annual Fees (per avg member) 75 16,500 48,600 66,150 Security Deposits (Avg Balance) 300.00 66,000 194,400 264,600

Interest income (On Avg. sec dep. Balan 0.37% 243 715 974 TOTAL Other Revenues 27,743 61,365 71,634 TOTAL REVENUES 327,148 943,249 1,271,976

Contribution Margin/Member 26.10

Variable Costs / CarBeginning Cars - 38 74 Ending Cars 11.59 38 74 78 Avg # of Cars 19 56 76 Lease costs (car/year) - 4,800 - 91,113 - 268,370 - 365,281Access equp. (car/year) - 500 - 9,491 - 27,955 - 38,050Insurance (car/year) - 1,700 - 32,269 - 95,048 - 129,370Parking (car/year) - 750 - 14,236 - 41,933 - 57,075Maintenance (car/year) - 400 - 7,592 - 22,362 - 30,437Fuel (car/year) - 1,188 - 22,551 - 66,422 - 90,407TOTAL VARIABLE COSTS - 177,252 - 522,089 - 710,621

Fixed Costs - Corp. LevelCorporate Insurance - 800 - 800 - 800Reservation System - 2,895 - 3,160 - 12,000Administration - Corp. - 100,000 - 100,000 - 100,000Benefits 20% - 20,000 - 20,000 - 20,000Office Space - - - 5,000Office Equipmen. & Supplies - 1,000 - 1,000 - 1,000Phone - 1,200 - 1,800 - 1,800TOTAL CORP. OVERHEAD - 125,895 - 126,760 - 140,600

0.7% 10.9%Fixed Costs - Per OfficeBilling (member/year) 24 - 5,280 - 15,552 - 21,168Administration - local - 24,000 - 24,000 - 24,000Benefits 20% - 4,800 - 24,780 - 24,780Office Space - - - 5,000Office equip. & supply - 1,000 - 1,000 - 1,000Telephone and Datalines - 1,200 - 1,800 - 1,800

Marketing - 10,000 - 12,000 - 12,000Background checks (per new member) 20 - 8,800 - 9,640 - 3,608TOTAL BOSTON OVERHEAD - 55,080 - 88,772 - 93,356

61.2% 5.2%

TOTAL OVERHEAD COSTS - 180,975 - 215,532 - 233,956

Net Income Before Taxes - 338,946 - 436,770 - 503,151

WACC 13%

TOTAL REVENUES [Thousands] - 327 943 1,272 PV Revenues 3,801.5 TOTAL VARIABLE COSTS [Thousands] - - 177 - 522 - 711PV Variable Costs - 2,113.8TOTAL CORP. OVERHEAD [Thousands] - - 126 - 127 - 141PV Corp. Overhead - 468.3TOTAL OFFICE OVERHEAD [Thousands] - - 55 - 89 - 93PV Office Overhead - 303.1FCF [Thousands] - - 31 206 327 NPV 916.3

$ 916 NPV(WACC=13%, 1 Office)

Year 4 Year 5 908 1,180 136.2 177 1,180 1,196 408.2 193 1,044 1,188

155,566 177,023

533,363 606,931 688,929 783,954

23,343 26,562

708,541 806,271 731,884 832,833 10,205 4,825 78,300 89,100 313,200 356,400

1,153 1,312 89,658 95,237 1,510,471 1,712,024

78 102 102 103 90 103 - 432,374 - 492,011 - 45,039 - 51,251 - 153,132 - 174,254 - 67,558 - 76,877 - 36,028 - 40,997 - 107,012 - 121,773 - 841,143 - 957,163

- 800 - 800 - 6,000 - 7,000 - 100,000 - 100,000 - 20,000 - 20,000 - 5,000 - 5,000 - 1,000 - 1,000 - 1,800 - 2,500 - 134,600 - 136,300

-4.3% 1.3%

- 25,056 - 28,512 - 24,000 - 24,000 - 24,780 - 24,780 - 5,000 - 5,000 - 1,000 - 1,000 - 1,800 - 2,500

- 12,000 - 12,000 - 8,164 - 3,860 - 101,800 - 101,652

9.0% -0.1%

- 236,400 - 237,952

- 523,214 - 547,461

1,510 1,712

- 841 - 957

- 135 - 136

- 102 - 102

433 517

Year 1 Year 2 Year 3 Year 4 Year 5 - 100

-

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

177

522

711

841 957

126

127

141

135

136

55

89

93

102

102

31

(206) (327) (433) (517)

Revenue Usage

Variable Costs Corp. Overhead CostsOffice Overhead Costs FCF

10

8

6

4

2

1

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

NPV Vs Citis Launched

Dolars [Thousands]

# Cities

1 Year 1 Year 2 Year 3 Year 4 Year 5Variable Costs 177 522 711 841 957 TOTAL VARIABLE COSTS [Thousands]Corp. Overhead Costs 126 127 141 135 136 TOTAL CORP. OVERHEAD [Thousands]Office Overhead Costs 55 89 93 102 102 TOTAL OFFICE OVERHEAD [Thousands]FCF 31 (206) (327) (433) (517) FCF [Thousands]

# Offices NPV FCF Year 1 FCF Year 2 FCF Year 3 FCF Year 4 FCF Year 510 $62,652 5,720.7 15,667.9 20,900.1 24,668.7 27,844.7

8 $50,215 4,601.7 12,559.6 16,748.2 19,761.9 22,303.0 6 $37,779 3,482.8 9,451.4 12,596.3 14,855.1 16,761.3 4 $25,342 2,363.8 6,343.2 8,444.4 9,948.3 11,219.7 2 $12,905 1,244.9 3,235.0 4,292.5 5,041.4 5,678.0 1 $6,687 685.4 1,680.9 2,216.6 2,588.0 2,907.1

Year 1 Year 2 Year 3 Year 4 Year 5TOTAL REVENUES [Thousands] 327 943 1272 1510 1712TOTAL VARIABLE COSTS [Thousands] 177 522 711 841 957TOTAL CORP. OVERHEAD [Thousands] 126 127 141 135 136TOTAL OFFICE OVERHEAD [Thousands] 55 89 93 102 102FCF [Thousands] 31 -206 -327 -433 -517

TOTAL VARIABLE COSTS [Thousands]TOTAL CORP. OVERHEAD [Thousands]TOTAL OFFICE OVERHEAD [Thousands]

Assumption Year 1 Year 2 Year 3 Year 4

Trips/member/month 4Miles/trip 22Hours/trip 4

Beginning Members - 440 856 908 Attrition 0.15 - 66 128.4 136.2 Ending members 440 856 908 1,180 New Members 440 482 180.4 408.2 Avg # of Members 220 648 882 1,044

Application Fee (per new member) 25 11,000 12,050 4,510 10,205 Annual Fees (per avg member) 75 16,500 48,600 66,150 78,300 Per mile charge 0.4 92,928 273,715 372,557 440,986 Per hour charge 5.5 232,320 684,288 931,392 1,102,464 Security Deposits (Avg Balance) 300 66,000 194,400 264,600 313,200 Interest income (On Avg. sec dep. Balance) 4% 2,640 7,776 10,584 12,528 TOTAL REVENUE 355,388 1,026,429 1,385,193 1,644,483

Costs Variable Costs / CarBeginning Cars - 24 48 50 Ending Cars 24 48 50 66 Avg # of Cars 12 36 49 58 Lease costs (car/year) - 4,400 - 52,800 - 158,400 - 215,600 - 255,200Access equp. (car/year) - 500 - 6,000 - 18,000 - 24,500 - 29,000Fuel (car/year) - 1,080 - 12,960 - 38,880 - 52,920 - 62,640Insurance (car/year) - 1,700 - 20,400 - 61,200 - 83,300 - 98,600Maintenance (car/year) - 400 - 4,800 - 14,400 - 19,600 - 23,200Parking (car/year) - 600 - 7,200 - 21,600 - 29,400 - 34,800TOTAL VARIABLE COSTS - 104,160 - 312,480 - 425,320 - 503,440

Fixed Costs - Corp. LevelCorporate Insurance - 800 - 800 - 800 - 800Reservation System - 2,895 - 3,160 - 12,000 - 6,000Administration - Corp. - 100,000 - 100,000 - 100,000 - 100,000Benefits 20% - 20,000 - 20,000 - 20,000 - 20,000Office Space - - - 5,000 - 5,000Office Equipmen. & Supplies - 1,000 - 1,000 - 1,000 - 1,000Phone - 1,200 - 1,800 - 1,800 - 1,800TOTAL CORP. OVERHEAD - 125,895 - 126,760 - 140,600 - 134,600

Fixed Costs - Boston OfficeBilling (member/year) 24 - 5,280 - 15,552 - 21,168 - 25,056Administration - local - 24,000 - 24,000 - 24,000 - 24,000Benefits 20% - 4,800 - 24,780 - 24,780 - 24,780Office Space - - - 5,000 - 5,000Office equip. & supply - 1,000 - 1,000 - 1,000 - 1,000Telephone and Datalines - 1,200 - 1,800 - 1,800 - 1,800Marketing - 10,000 - 12,000 - 12,000 - 12,000Background checks (per new member) 20 - 8,800 - 9,640 - 3,608 - 8,164TOTAL BOSTON OVERHEAD - 55,080 - 88,772 - 93,356 - 101,800

61.2% 5.2% 9.0%

TOTAL OVERHEAD COSTS - 180,975 - 215,532 - 233,956 - 236,400

Net Income Before Taxes 70,253 498,417 725,917 904,643

Year 5

1,180 177 1,196 193 1,188

4,825 89,100 501,811 1,254,528 356,400 14,256 1,864,520

66 66 66 - 290,400 - 33,000 - 71,280 - 112,200 - 26,400 - 39,600 - 572,880

- 800 - 7,000 - 100,000 - 20,000 - 5,000 - 1,000 - 2,500 - 136,300

- 28,512 - 24,000 - 24,780 - 5,000 - 1,000 - 2,500 - 12,000 - 3,860 - 101,652

-0.1%

- 237,952

1,053,688

September

Overhead ExpensesBoston 14,000 Corporate 30,000

Application & MembershipBeginning members 141 Applications 112 Application Aproved 105 New members 101 Attrition 3 Ending Members 239 Total "member days" 5,088 Application fees 2,800 Annual member fees received 7,575 Annual member fees Booked 1,512

DepositsDeposits recceived in September 42,300 Total Deposits balance month end 71,700 Average deposit balance 42,090 Interest earned on total deposits 155

UsageAvailable "car days" 439 Total Trips taken (uses) 335 Hour uses 218 Daily uses 117 Total miles driven 16,339 Mile Driven - hourly uses 5,341 Mile Driven - daily uses 10,998 Total Hours used 3,223 Hours Driven - hourly uses 1,351 Hours Driven - daily uses 1,872 Trips - night & weekend % 60%Hours of uses - night & weekend % 53%

RevenueTotal Miles billed 5,765 Miles billed - hourly uses 5,341 Miles billed - daily uses 424 Total hours billed 2,287 Hours billed - hourly uses 1,351 Hours billed - daily uses 936 Total miles billed 2,276 Miles revenue - hourly uses 2,106 Miles revenue - daily uses 170 Total hours revenue 12,369 Hourly revenue - hourly uses 7,221 Hourly revenue - daily uses 5,148 Total usage revenue 14,645 Revenue from hourly usage 9,327 Revenue from daily usage 5,318

New MembersAttrition Ending MembersBeta 14 0 14June 20 0 34July 49 3 80Ausgust 64 3 141September 101 3 239