A very basic business plan that includes my version of a profit and loss statement. The California High Speed Rail Authority Dec. 9 Business Plan failed to include a P&L statement.

1. Income 2012 2013 2014 2015 2016 2017 2018
Operating Income - - - - - - -
1A Bond Income 4,500 4,500
Federal Grants 4,500 4,500 2,000 2,000 2,000 2,000
Gifts From Local Jurisdictions 1,000 1,000
Other Income
Public Private Partnerships 1,000 1,000 1,000 1,000
Subtotal Income 9,000 9,000 2,000 3,000 3,000 4,000 2,000
Cumulative Income 9,000 18,000 20,000 23,000 26,000 30,000 32,000
Expenses
Operating Expense - - - - - - -
Capital Construction Expense 9,000 9,000 2,000 3,000 3,000 4,000 2,000
Bond Principal and Interest Expense 324 647 647 647 647 647 647
Other Loan Principal and Interest Expense 72 144 216 288
Other Interest Expense
Subtotal Expenses 9,324 9,647 2,647 3,719 3,791 4,863 2,935
Net Profit (324) (647) (647) (719) (791) (863) (935)
Accumulated Profit or Deficit (324) (971) (1,618) (2,336) (3,127) (3,990) (4,925)
Passengers 5,906,397
Ticket Price $105.00
Total Base Year Revenue 620,171,661
Summary P&L
Assumptions
1. Californian's would use HSR in the same proportions as in the NE Corridor
2. Ticket price is $105 increased 5% each year for inflation
3. The system can actually be built for $47 Billion
4. CHSRA gets gifts of $17 billion from the federal government and $5 billion from local jurisdictions
5. The CHRSA is able to generate loans of $16 billion from PPP at a 5% interest rate
6. The CHRSA is a highly efficient operator and generates profit margins from operations of 30%
The above assumptions result in: 2012 2013 2014 2015 2016 2017 2018
Income $9,000 $9,000 $2,000 $3,000 $3,000 $4,000 $2,000
Expenses $9,324 $9,647 $2,647 $3,719 $3,791 $4,863 $2,935
Net Profit $(324) $(647) $(647) $(719) $(791) $(863) $(935)

2. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
- 620 651 684 718 754 792 831 873 916 962
1,000 1,000 1,000
1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
2,000 2,620 2,651 1,684 1,718 1,754 1,792 1,831 1,873 1,916 1,962
34,000 36,620 39,271 40,955 42,673 44,427 46,218 48,049 49,922 51,838 53,800
- 434 456 479 503 528 554 582 611 641 673
2,000 2,000 2,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
647 647 647 647 647 647 647 647 647 647 647
360 432 504 576 648 720 792 864 936 1,008 1,080
3,007 3,513 3,607 2,702 2,797 2,895 2,993 3,093 3,194 3,296 3,400
(1,007) (893) (956) (1,018) (1,080) (1,141) (1,201) (1,262) (1,321) (1,380) (1,438)
(5,932) (6,825) (7,780) (8,798) (9,878) (11,018) (12,220) (13,481) (14,802) (16,182) (17,621)
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
$2,000 $2,620 $2,651 $1,684 $1,718 $1,754 $1,792 $1,831 $1,873 $1,916 $1,962
$3,007 $3,513 $3,607 $2,702 $2,797 $2,895 $2,993 $3,093 $3,194 $3,296 $3,400
$(1,007) $(893) $(956) $(1,018) $(1,080) $(1,141) $(1,201) $(1,262) $(1,321) $(1,380) $(1,438)

3. 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
1,010 1,061 1,114 1,169 1,228 1,289 1,354 1,421 1,493 1,567
1,000
2,010 1,061 1,114 1,169 1,228 1,289 1,354 1,421 1,493 1,567
55,811 56,871 57,985 59,155 60,382 61,672 63,025 64,447 65,939 67,507
707 742 780 819 860 903 948 995 1,045 1,097
1,000
647 647 647 647 647 647 647 647 647 647
1,152 1,224 1,296 1,368 1,440 1,512 1,584 1,656 1,728 1,800
3,506 2,613 2,723 2,833 2,946 3,061 3,179 3,298 3,420 3,544
(1,496) (1,553) (1,609) (1,664) (1,719) (1,772) (1,825) (1,876) (1,927) (1,977)
(19,117) (20,669) (22,278) (23,942) (25,661) (27,433) (29,257) (31,134) (33,061) (35,038)
2030
$2,010
$3,506
$(1,496) $(19,117)

4. 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049
1,646 1,728 1,814 1,905 2,000 2,100 2,205 2,315 2,431 2,553
1,646 1,728 1,814 1,905 2,000 2,100 2,205 2,315 2,431 2,553
69,152 70,880 72,694 74,599 76,599 78,699 80,904 83,220 85,651 88,203
1,152 1,209 1,270 1,333 1,400 1,470 1,544 1,621 1,702 1,787
647 647 647
1,872 1,944 2,016 1,944 1,872 1,800 1,728 1,656 1,584 1,512
3,671 3,800 3,933 3,277 3,272 3,270 3,271 3,277 3,286 3,299
(2,025) (2,073) (2,119) (1,372) (1,272) (1,170) (1,066) (961) (855) (746)
(37,063) (39,136) (41,254) (42,627) (43,898) (45,068) (46,135) (47,096) (47,950) (48,697)

5. 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059
2,680 2,814 2,955 3,103 3,258 3,421 3,592 3,772 3,960 4,158
2,680 2,814 2,955 3,103 3,258 3,421 3,592 3,772 3,960 4,158
90,884 93,698 96,653 99,756 103,014 106,435 110,027 113,798 117,759 121,917
1,876 1,970 2,069 2,172 2,281 2,395 2,514 2,640 2,772 2,911
1,440 1,368 1,296 1,224 1,152 1,080 1,008 936 864 792
3,316 3,338 3,364 3,396 3,432 3,475 3,522 3,576 3,636 3,703
(636) (524) (409) (293) (174) (54) 70 196 324 456
(49,332) (49,856) (50,265) (50,558) (50,733) (50,786) (50,717) (50,521) (50,197) (49,742)

6. 2060
4,366 79,283
4,366
126,283
3,056 55,498
19,734
720 53,203 72,936
23,785
3,776 49,152
590
(49,152)

7. Interest & Princ. Reduction Payment expense based on 1A legislative analyst
2008 Core Market Travel Data
Total Visitors to LA (Source: LA Visitors and Convention Bureau)
% above from SF/Oakland (Source: LA Visitors and Convention Bureau)
Visitors to LA from SF/Oakland (Source: LA Visitors and Convention Bureau)
Total Visitors to SF, other than Bay Area (Source: SF Visitors and Convention Bureau)
% above from LA Basin (Source: SF Visitors and Convention Bureau)
Visitors to SF from LA
Total SF Visitors to LA & LA Visitors to SF
Round trip multiplier
Trips between Bay Area and LA Basin (Source: SF & LA Convention Bureaus)

8. 9,000,000,000.00
647,000,000.00
71,888,888.89 per billion
25,600,000
12.30%
3,148,800
11,930,000
12.70%
1,515,110
4,663,910
2
9,327,820 4663910