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Airport Business Diversity Conference

Airport Business Diversity Conference. Dallas/Fort Worth 2011. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT?. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT?. WELCOME! Jeff Sailer, Vice President* Development & Diversity LS Travel Retail North America (210) 241-9744

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Airport Business Diversity Conference

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  1. Airport Business Diversity Conference Dallas/Fort Worth 2011 WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT?

  2. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? WELCOME! Jeff Sailer, Vice President* Development & Diversity LS Travel Retail North America (210) 241-9744 jsailer@lstrna.com *MODERATOR

  3. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? • Today’s challenging business and financial environment further complicates an already difficult concession financing process • Traditional financing vehicles, primarily banks, do not understand the concession financing model and therefore tend to turn away from airport concession financing. • Non-traditional concession financing vehicles, such as investors, equity firms, etc., have significantly weakened due to the financial circumstances posing a grave question as to how do you “find” the money to finance your airport concession.

  4. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? Today’s panel will explore the “concession financing world” offering insight and real life recommendations to finding the “money” in today’s challenging financial environment. Panel Speakers: • Charles Gates will address the “airport” perspective – requirements, needs, and what can a public-sector entity do to facilitate concession financing. • Ray Quintanilla, DFW airport concessionaire, will bring perspective from the ACDBE small business owner side. • Bob Lopez, PHX airport concessionaire, will bring perspective from the large business side having dealt with financing multi-airport concession locations, and recently pursued a large prime concessionaire opportunity.

  5. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? Requirements: • Responses to RFP • Capital for Build out • Capital for operations Assistance: • Airport Staff • Min. Guarantee • Structure of the lease

  6. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? • What are Your Capital Needs? • Plan Ahead • Payment history • State of the Industry-Impacts • Rent Relief • Finance Needs/Business Plan • Know the Airport Staff • Airport Staff • Min. Guarantee • Structure of the lease

  7. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? Contact Information Charles W. Gates DBA Gates Aviation Consulting Service 512-826-1864 gates4326@sbcglobal.net

  8. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? Small ACDBE Operator Perspective • Personal funds • Simplest Option • Leverage business with current relationships with banks and or partners Bank Financing • Most difficult • Airport Businesses do not follow traditional Bank models. • Prepared to have sufficient collateral to secure financing • SBA program

  9. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? Venture Capital Firms • Very Difficult • Virtually same information and requirements as bank • Financing will probably involve a combination of operating funds and relinquishing a percentage of ownership Joint Venture Financing • Prime partner assisting in obtaining financing through any of programs listed above • Offering financing to ACDBE adhering to 49CFR Part 23 guidelines set out by Department of Transportation

  10. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? Contact Information Ray Quintanilla, President Sierra News 4711 Maple Ave. Dallas, Texas 75219 214-528-3840 rquinta433@aol.com

  11. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? AIRPORT FINANCING KEY ISSUES • Poor lender collateral position • Must demonstrate strong cash flow position from current airport operations • Need a long term lender relationship demonstrating airport operations experience • It’s ultimately is a “Trust and Cash Flow” loan

  12. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? CREDIT BASICS • Accurate up to date and professional Year End Financial Statements over a three year period. Be able to comment on the Profit/Loss statements • Three year history of Federal Tax Returns - are they supported by your financial statements • Identify and comment on any negative credit issues experienced over the past 5-7 years

  13. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? TRADITIONAL FINANCING SOURCES • Local depository banks • National banks/lenders (B of A, JP Morgan Chase, Wells Fargo etc.) • SBA local lenders (search for local resources)

  14. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? NON TRADITIONAL FINANCING SOURCES • Private money (friends, relatives) • Cash • Equity loan on residence • Joint Venture partnership resources

  15. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? Contact Information Robert V. Lopez JMJ-LLC 5535 W. Glenn Dr., Glendale, AZ 85301 602-723-8228 (cell phone) 623-463-2885 x11 (office phone) rvlopez1@aol.com

  16. WHERE DO WE FIND THE “MOOLAH” IN TODAY’S ENVIRONMENT? QUESTIONS & ANSWERS

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