EFTA01099110.pdf

ESTABLISHED 1937 MBD Acquisitions LLC May 2012 Contents • Assets & Transaction • Growth Strategy • Capital • Projections • Principals CONFIDENTIAL EFTA01099110 Assets & Transaction Flagship Restaurant Wholesale Food Products Licensed Restaurant Deals Annual Revenue = $12.5MM Annual Revenue = $9.0MM Annual Revenue = $0.9MM EBITDA = $1.9MM EBITDA = $1.0MM EBITDA = $0.9MM Key Assets Key Assets Key Assets • Iconic NY Brand • NJ Real Estate & Factory • MGM Mirage (LV) • Flagship Restaurant • Excess Production Capacity • Sands (PA) • Select Existing Distribution • Madison Sq Garden • US Open PURCHASE PRICE = 527MM $ 21.0MM Cash at Closing 6.0MM 3-Year Seller Note • 2-Yr Employment Contract with Sandy Levine • Favorable lease terms on NYC flagship location • Does not include $3MM purchase of real estate (NJ factory) CONFIDENTIAL 2 EFTA01099111 Growth Strategy • Committed to the brand and culture that has been built over past 75 years Embrace the Brand • Stay true to company legacy, brand and signature products • Focus on flagship operations, customer experience & NYC locations Leverage • Seasoned central corporate team and infrastructure is ready to scale Expertise • Well-positioned for the investment of time, money and reputation necessary to develop and operate the business Capitalize on • Quickly extract and formalize the unique "DNA" of company Potential • Utilize brand equity and DNA to drive intelligent growth • Build out key market operations (e.g., "express" model, new flagships) • Capitalize on new licensing opportunities with proven market operators • Expand wholesale & retail partnerships • Develop wholesale product line extensions (e.g., mustard, pickles, etc.) • Investigate international expansion in key, high-profile markets CONFIDENTIAL 3 EFTA01099112 Capital Sources Acquisition Financing $12,000,000 33.9% Real Estate Mortgage 80.0% 2,400,000 6.8% Seller Note 6,000,000 16.9% Mezzanine Financing 7,000,000 19.8% Equity Investment 8,000,000 22.6% Total Sources $35,400,000 100.0% Uses Purchase of The Businesses $27,000,000 76.3% Purchase of the NJ Real Estate 3,000,000 8.5% Closing Costs 400,000 1.1% Growth Capital 5,000,000 14.1% Total Uses $35,400,000 100.0% CONFIDENTIAL 4 EFTA01099113 Projections INCOME STATEMENT DATA Current 1 2 3 4 5 6 Revenues by Unit Trecei S12.500,C00 512.371000 513261.230 511559,058 514,0511560 514490.926 514.925,654 ExisvngLicensing Fees 900,030 927,01 954.810 983.454 L012,958 1.043.347 1.074.647 Exisvng Wholesale 10.000030 10.302003 10.609.01 10,927270 11.35,088 13.592.741 11.943.523 NtwBig Boxes 0 6.001000 12250.01 15.545.4W 25.101,762 31.854.815 38.510.459 New Express Boxes 0 1001000 6090.031 9,272303 12.550,881 11927A07 19,4431230 Newucensing Fees 0 MOM 370.8W 741.92.4 764.182 1.147.107 1181.521 NewWholesale 0 4.400000 7390103 13.086301 19.432.37: a 442 S3S 37,175,290 N4w FrtnchWfs Royalties 0 120000 360.01 841000 1603,3:: ! 4,203,000 Total Pave riles 23.401030 37,982.001 53413840 63.056.337 81,036,532 -77.4.8_'_ 25,713,323 Unit Contribution The Deli 1.575,030 1.931.250 1.989.185 2.048263 2.110,329 2.173.639 2.238,848 Exist ng Lice its rig 901[00 877,000 904,810 933,434 962.938 993.347 1,024,547 ExistingWholesa4 1.000,070 1.030003 1.050.9W 1.092327 1.125,509 1.159274 1.192.052 NewItigBoxes 0 904003 1.827,01 2.781.810 1761264 4778222 3,821.569 Ntw Express Boxes 0 60001 1218,003 1,854340 2.510,176 3181451 3.581.046 New ucensing 0 36001 370,80 741.924 744,182 3.147,107 1,1151521 N•wWhOltnit 0 524003 910,803 1.570,404 2.334,336 3413116 4,451.035 New Franchisees 0 124003 360,01 840,000 100,030 3000,003 4,200,01 Total Unit Contnbution 3,775,030 6,344250 8.541498 11.863,723 15.372,754 19.550.187 24032718 Corporate Overhead 1170,030 1.5122150 2.056,634 2.722261 3.440,261 4299359 5,148.533 Consolidated Operating Pimple 2.606,00 4,824970 6384,848 9,141,461 11532.493 13550128 18,831,185 Depreciation & Amortization 3173[00 3,473000 3,773,003 4,073= 4,375,030 4675000 4,975,000 Interest Expense 1.340.030 1,451.705 1,358.145 1.258.993 1.153,921 1.042.573 924.575 Pre-Tax Income (21.10,030) j99,735) 1,431,719 3,807.468 6,433,572 %saws 12.951610 Income Taxel 0 0 0 1.067,307 2.351.230 1441,429 4.33/114 Net Income (52110,030) (599,7581 51451,719 32.740161 34,162.322 54393226 58,431497 CONFIDENTIAL 5 EFTA01099114 Principals David Mitchell John Rigos / Andy Stc • Over 30 years of finance, M&A and • 10+ companies founded. • Entrepreneurs real estate investment experience. 40 combined years investment • President of Mitchell Holdings LLC, and operations experience. completing over $3.78 in transactions since 1991. 16 combined years in the • Owner /Operators • Managing Partner of Las Vegas restaurant / hospitality industry. Land Partners LLC, developing the 48 stores owned, developed and new Las Vegas Civic Center. operated across 6 brands. • Experienced owner & operator of 4 Board of Director seats across 3 • Investors multiple businesses in the hospitality & gaming industries. non-profit organizations. • Operators of Acquired, Franchised & Original Concept Businesses • Advisors • Broad Experience with Development & Growth Capital • Robust Real Estate Investment Record • Extensive Network of Industry Advisors & Experts • Operational Focus on Human Capital • NYC Market Expertise (site selection, labor pool, unit-level P&Ls) CONFIDENTIAL 6 EFTA01099115