Phoenix Associates Land Syndicate (fka PBLSQ)

[Renavatio]

Calculations on the City of Laurent Project per http://www.pbls.biz/pressrelease_content.asp?prid=98:

(Note: Prices are based upon our experience in Florida pricing steel frame prefab construction. I don not claim to be an expert in Gulf Coast infrastructure or land expense, nor do I know if Phoenix would be receiving volume discounts for buying 600+ structures from the Prefab manufacturer. Neither of these scenarios takes into consideration the impact of “charitable” investors/celebrities who would want the publicity from giving to such a good cause.)

Scenario 1: Phoenix pays for land, builds infrastructure, takes out credit line per project, pays in-house sales agents, no charitable contributions, no government help

Set crew – $8K
Foundation crew – $8K
Electrician/Plumbing – $5K
Structure – $40K
Lot cost – $10K
Infrastructure per Lot - $15K
In-house Sales Expense – $5K
Administrative Expense - $5K
Debt Service – $10K
Total Expense – $106K
Sales Price/Revenue per House - $125K
Potential Profit per House for Phoenix - $19K
Potential Profit per House for Phoenix Construction Divisions - $2100 ((8K+8K+5K)*10%)
Potential Total Revenue for City of Laurel Project - $76.26M ((600*125K)+(600*2100))
Potential Total Profit for City of Laurel Project - $12.66M ((19K+2100)*600)
Total Profit Margin – 16.88% ((19K+2100)/125)

Scenario 2: Phoenix is provided land by government, Phoenix builds infrastructure, uses “in-house” cash for financing, Government provides pre-arranged “buyers” and back-end financing, Phoenix sells homes for lower price to “be charitable.”

Set crew – $8K
Foundation crew – $8K
Electrician/Plumbing – $5K
Structure – $40K
Lot cost – $0K
Infrastructure per Lot - $15K
In-house Sales Expense – $0K
Administrative Expense - $5K
Debt Service – $0K
Total Expense – $81K
Sales Price/Revenue per House - $100K
Potential Profit per House for Phoenix - $19K
Potential Profit per House for Phoenix Construction Divisions - $2100 ((8K+8K+5K)* 10%)
Potential Total Revenue for City of Laurel Project - $61.26M ((600*100K)+(600*2100))
Potential Total Profit for City of Laurel Project - $12.66M ((19K+2100))*600)
Total Profit Margin – 21.1% ((19K + 2100)/100K)

Either scenario, assuming they place 200 of these homes a year (very attainable if they have the systems in place), that would be a potential profit of $4.22M per year. Assuming an O/S of 815M, the eps would be $.0052 (4.22M/815M). A P/E of 10 from profits off this single project would give us a pps of $.052.

Now add the $.047 pps from the Pit contract (and I think I was WAY LOW on profits from the trucking on that), and the pps should be in the $.10 range just from the City of Laurent construction project and the renewable Cherokee pit contract.

All we need now is the 2 PR's that matter most...

Please feel free to check my math as I am sure there are mistakes in the numbers some where (there always are).

Ren
IMO