Bay Area Charter Foundation, LLC (Florida) Revenue Bonds, Series 2011 Review of Financial Results for the Six Months Ended December 31, 2012 February 20, 2013 12:00 PM EDT Contained herein is certain financial information, including unaudited information, certain statistical information and explanations of such information in narrative form (the "Information"). Management of Bay Area Charter Foundation, LLC. believes this information to be correct as of the date or dates contained herein. However, the financial affairs of Bay Area Charter Foundation, LLC change constantly, and such changes may be material. Today's discussion may contain forward-looking statements, which may or may not come to fruition depending on certain circumstances, including those outside the control of Bay Area Charter Foundation, LLC. Please be advised that Bay Area Charter Foundation, LLC, Inc. has not undertaken, assumes no duty and is not obligated to update the information. In addition, please be advised that past financial results do not predict future financial performance.
Participants Bay Area Charter Foundation, LLC Richard Garcia, CFO, Charter Schools USA Lorrie Davidson, VP of Finance, Charter Schools USA Hillary Daigle, Controller Schools, Charter Schools USA Adam Segal, Investor Relations, Charter Schools USA Ziegler Michael Braun, Director, Education Finance Will Fossel, Assistant Vice President, Education Finance 2
Historical Florida FEFP* Funding 3
Enrollment 2012-2013 Projected Enrollment* Official FTE Count - October 2012 Actual Enrollment at 12/31/2012 Current Enrollment at 2/5/2013 Current Enrollment Variance Potential 2012-2013 School Waitlist School Capacity Utilization % Winthrop Charter School 1,084 1,076 1,067 1,086 2 377 1,280 84% Woodmont Charter School 906 744 699 666 (240) 28 1,100 68% Total 1,990 1,820 1,766 1,752 (238) 405 2,380 76% * per Offering Memorandum 4
Bay Area Charter Foundation, LLC Financial Results Statement of Activities - Unaudited For the Six Months ended December 31, 2012 REVENUES: School revenues $ 6,558,866 Interest income 41,791 Net realized gain 1,601 Net unrealized gain 3,089 Total Revenue $ 6,618,440 EXPENSES: School operations $ 4,495,754 Management fees 329,655 Provision for depreciation and amortization 551,881 Interest expense - bonds 1,442,311 Other expenses 15,750 Total Expenses $ 6,848,443 Change in net assets $ (230,003) Add back: Provision for depreciation and amortization $ 551,881 Interest expense - bonds 1,442,311 EBIDA* $ 1,764,189 Select Balance Sheet Information - Unaudited As of December 31, 2012 Cash and cash equivalents - unrestricted $ 2,382,683 Total current assets $ 2,531,588 Total assets $ 35,685,894 Current liabilities $ 1,324,286 Bonds payable net of discount $ 35,204,223 (Deficit) $ (842,616) Computation of Operating Reserve Fund Requirement Total audited expenses, June 30, 2012 $ 10,363,307 Adjustments: Capitalized interest (583,021) Depreciation and amortization (854,709) Adjusted expenses $ 8,925,577 Average daily expenses $ 24,793 Reserve required (15 days) $ 371,899 * EBIDA is earnings before interest, depreciation and amortization. 5
Winthrop Charter School Financial Results Six Months Ended December 31, 2012 2011 Change % Revenues: State source revenue $ 3,430,009 $ 2,548,121 $ 881,888 35% Grant revenue 286,211-286,211 100% Program and other revenue 278,260 244,320 33,940 14% Total Revenues 3,994,480 2,792,441 1,202,039 43% Expenses: Wages and benefits 1,649,416 1,126,703 (522,713) -46% Instructional materials 225,330 333,784 108,454 32% Outside services 421,682 337,314 (84,368) -25% Facility operations and maintenance 402,569 619,671 217,102 35% Management fees 205,085 197,654 (7,431) -4% Total Expenses 2,904,082 2,615,126 (288,956) -11% EBIDA* $ 1,090,398 $ 177,315 $ 913,083 515% * EBIDA is earnings before interest, depreciation and amortization. Calculation of Lease Payment Coverage Ratio For the Four Consecutive Quarters ended December 31, 2012 Total Pledged Revenues $ 7,114,859 Total Operating Expenses 4,960,629 Net Income Available for Debt Service $ 2,154,230 Actual Debt Service for the Period $ 1,565,342 Less Capitalized Interest 682,062 Total Debt Service Paid $ 883,280 Lease Payment Coverage Ratio 2.44 Covenant Requirement 1.00 6
Woodmont Charter School Financial Results Six Months Ended December 31, 2012 2011 Change % Revenues: State source revenue $ 2,318,622 $ 1,941,169 $ 377,453 19% Grant revenue 62,438 3,849 58,589 1522% Program and other revenue 183,325 120,297 63,028 52% Total Revenues 2,564,385 2,065,315 499,070 24% Expenses: Wages and benefits 988,528 819,214 (169,314) -21% Instructional materials 130,596 336,266 205,670 61% Outside services 459,285 412,696 (46,589) -11% Facility operations and maintenance 308,349 571,464 263,115 46% Management fees 124,569 105,039 (19,530) -19% Total Expenses 2,011,327 2,244,679 233,352 10% EBIDA* $ 553,058 $ (179,364) $ 732,422-408% * EBIDA is earnings before interest, depreciation and amortization. Calculation of Lease Payment Coverage Ratio For the Four Consecutive Quarters ended December 31, 2012 Total Pledged Revenues $ 4,532,046 Total Operating Expenses 3,464,237 Net Income Available for Debt Service $ 1,067,809 Actual Debt Service for the Period $ 1,136,553 Less Capitalized Interest 619,546 Total Debt Service Paid $ 517,007 Lease Payment Coverage Ratio 2.07 Covenant Requirement 1.00 7
Questions and Answers For additional information please contact: Richard Garcia Chief Financial Officer Charter Schools USA, Inc. 954-416-4015 rgarcia@charterschoolsusa.com 8