EXEC SUM June 2019 3.11

 
 
 
 
 
 
 

 

  Status: A New York C corporation

DraggonsGate Entertainment, LtdTM Industry: Fantasy Park and Entertainment

presents Company Incorporated: June 2017

DraggonsGate™ No. of Employees: 12

 

Industry Focus: Family Entertainment/Live

Video Game-Interactive Fantasy Adventure

The Interactive Fantasy Adventure Park™ Parks, Commercial RE Development, Internet

   
DraggonsGateTM Park is so big and so unique, that it
Project Status: Executive Team assembled, Sites
is impossible to experience it all in a single visit.
selected, Partnerships established.

 

  Total Funding: For opening of parks,
construction, marketing and IT
The DraggonsGate Entertainment LtdTM mission is to

develop and operate Interactive Fantasy Adventure Parks

that include stylized, fully interactive Adventures, Attractions and Activities. DraggonsGateTM

Entertainment Developments includes a wide range of projects that include water parks, themed attractions,

retail, dining, nightlife areas and similar related businesses.

 

DraggonsGateTM Park is a 1,000+ acre Fantasy Adventure Park for the entire family. It is staffed with over

900 professional costumed characters, Hollywood stunt professionals and battle choreographers along with

hundreds of attractions and activities. Guests have the opportunity to participate in or simply witness live

action adventures in the Park’s eight Worlds, based on the fantasy settings of: Ancient Rome, The City of

Ancient Healing, The Battle Arena, and 3 global bestselling video game ‘worlds’: The Vikings, The

Samurai and The Knights, along with a ‘child’s world’ based on the hit video game that has been played

by millions of fans all over the world.

 

DraggonsGateTM Park is fully interactive. Typical theme park rides are replaced with exciting Adventures,

Activities, Shows and Special Events centered on chart busting ‘hit’ global video games, and Hollywood

fantasy characters from the Dark Ages, Hollywood movies, hit television shows, illustrated novels and

mythology. Guests may elect to visit the world-class wellness center, attend chariot races, view or join in

and march in massive parades or sample any of the Park’s hundreds of other Attractions and Activities

either as a participant or as a witness. Food offerings are not traditional theme park fare. Instead, find the

best Italian foods in ‘Rome’, the very best Asian food in the Samurai world and fully organic, vegan and

vegetarian in the City of Ancient Healing with international retail shopping available, park-wide.

 

As an entrepreneurial organization, DraggonsGate Entertainment LtdTM. is structured to recognize, develop

and capitalize on arts and entertainment opportunities in live, animation, electronic, film, and web related

technologies. It is the intention of the company to make its conceptual DraggonsGateTM Park one of the

most visible, memorable and attractive brand associations in the themed entertainment industry.

 

Guest satisfaction is not just a goal. It is a minimally acceptable standard. Implicit is the company’s

fiduciary responsibility to its investors and shareholders. This commitment creates and maintains a culture

which honors and rewards employee integrity and dedication to the achievement of excellence.

 

Experience Live Fantasy Environments matched with the well-known branded characters from some of

the world’s most popular video games, as played by tens of millions of fans worldwide

  DraggonsGate Entertainment, LtdTM - 1 - Private and Confidential

  Operating Summary

Dragonsgate Parks Inc. Model

Five Year Operating Plan

OPERATING YEARS

YR 1 YR 2 YR 3 YR 4 YR 5

(expressed in '000) 4,190 3,143 3,143 2,584 2,584
Attendance 244 244 244 244 244

Operating Days

Revenue: $269,941 $202,456 $202,456 $166,474 $166,474
Admissions 1,248 1,026 1,026
Parking 1,664 1,248
Food & Beverage 21,212 17,442 17,442
Merchandise 28,283 21,212 7,856 6,460 6,460
Theme Restaurant in Lands 270 222 222
Vendors fees 10,475 7,856 4,658 5,785 7,185
Locker Rentals 1,571 1,292 1,292
Photos 360 270 314 258 258
Private Parties/Weddings 450 450 450
Bacchus Wine 3,020 3,750 1,528 1,782 2,079
Spa Services 4,570 5,865 6,913
Specialized Training 2,095 1,571 3,318 3,514 3,709
Tent & Camping 5,033 5,033 5,033
Sponsorships 419 314 1,000 1,000 1,000
Web Membership 6,000 6,000 6,000
Additional Sources of Revenue 450 450
Subtotal Other 12,210 12,210 12,210
Total Revenue 1,123 1,310
71,238 $ 68,339 $ 71,278
Admissions % revenues 1,511 2,770 $ 273,694 $ 234,813 $ 237,752
Cost of Goods Sold:
2,577 2,811 74.0% 70.9% 70.0%
Food & Beverage
Merchandise 5,033 5,033
Bacchus Wine
Spa Services 1,000 1,000
Tent & Camping
Miscellaneous 6,000 6,000

Total COGS 12,210 12,210
Gross Profit
76,218 $ 67,805 $
Gross Profit %
Operating Expenses: $ 346,159 $ 270,261

Salaries 78.0% 74.9%
IP Partner Lic/Incentive Fee
Entertainment (Discretionary) 4,242 3,182 3,182 2,616 2,616
Creative Development 3,666 2,750 2,750 2,261 2,261
Food and Supplies (Discretionary) 1,039
Contest Prizes 562 655 764 891 3,456
755 1,385 2,285 2,933 2,516
Archery 2,516 2,516 2,516 2,516 1,250
Board Games 1,250 1,250 1,250 1,250 $ 13,139
Bocce $ 12,992 $ 11,738 $ 12,747 $ 12,467 $ 224,613
Ancient Golf $ 333,167 $ 258,523 $ 260,947 $ 222,346
Music Competition 94.5%
Paper Scissors 96.2% 95.7% 95.3% 94.7%
Strongest Man on earth
Contest Production Expense $49,937 51,934 56,469 58,728 63,535
Utilities 33,147 24,823 24,823 20,118 20,118
Telecommunications 3,400
Trash 2,000 2,550 2,550 2,097 2,097
Electric, H2O, Sanitation 750 2,000 2,000 2,000 2,000
Office Supplies & Equipment
Travel 563 563 463 463
Insurance
Accounting, Legal & Consulting 10 10 10 10 10
Property Tax 31 31 31 31 31
Contingency 18 18 18 18 18
Marketing (Discretionary) 1,525 1,525 1,525 1,525 1,525
Royalty Fees 45 45 45 45 45

Total Operating Expenses 4 4 4 4 4
45 45 45 45 45
70 70 70 70 70

200 150 150 123 123.34
100 75 75 62 62
600
300 450 450 370 370
200 225 225 185 185
1,000 150 150 123 123
2,000 750 750 617 617
750 1,500 1,500 1,233 1,233
3,184 563 563 463 463
18,000 2,388 2,388 1,964 1,964
8,000 13,500 13,500 11,101 11,101
$ 125,316 8,000 8,000 8,000 8,000
$ 111,368 $ 115,903 $ 109,394 $ 114,201

EBITDA $ 207,851 $ 147,155 $ 145,044 $ 112,952 $ 110,413
60.0% 54.4% 53.0% 48.1% 46.4%
EBITDA %
Depreciation 16,920 16,920 16,920 16,920 16,920
Amortization of Start up Costs 12,003 12,003 12,003 12,003 12,003

Net Income before Interest and Taxes $ 178,178 $ 117,669 $ 115,558 $ 83,567 $ 81,027
51.5% 43.5% 42.2% 35.6% 34.1%

Interest expense $ 22,263 $ 19,481 $ 16,497 $ 13,297 $ 9,866

Taxes @ 39.6% $ 61,742 $ 38,883 $ 39,228 $ 27,827 $ 28,180
Net Income
$ 94,172 $ 59,306 $ 59,833 $ 42,443 $ 42,981
Loan term - 7 Year
27.2% 21.9% 21.9% 18.1% 18.1%

Debt service (24 Month no Principle deferred Int) $ 38,494 $ 41,277 $ 44,261 $ 47,460 $ 50,891

Cash Flow from Operations $ 84,601 $ 46,952 $ 44,496 $ 23,906 $ 21,013

* indicates see detailed sheet -2- Private and Confidential

  DraggonsGate Entertainment, LtdTM

PROPOSED USE OF FUNDS

 
 

Source of Funds Uses of Funds Year 1 Year 2
Land $45,300,000 $0
Debt Instruments $263,310,279 Site Improvement $12,257,000 $0
Construction $13,640,648
Equity $263,310,279 Infrastructure $6,125,000 $13,640,648
Digital & Game $8,746,671 $0
Total $526,620,558 Marketing $7,500,000
General Expense $6,990,000 $8,746,671
Pre-Opening Expense & Consulting $27,095,000 $7,500,000
Salaries $24,968,504 $6,990,000
IP Partner Lic/Incentive Fee $1,000,000 $27,095,000
Villages $102,430,396 $24,968,504
Contingency $39,598,061
Total $295,651,279 $0
$102,430,396
$39,598,061
$230,969,279

SUMMARY
 A pending partnership with Ubisoft, one of the top branded video game companies in the world.
 Profitable from Operating Year 1.
 A fully interactive family styled fantasy adventure park.
 Based on the most popular global video games, Hollywood movies and branded icons.
PROPERTY
 Targeted property in New York, Georgia, Texas, California, Canada
 Full support from Local, Regional, and Statewide municipal authorities.
 The largest entertainment development in the United States.
MARKETING BUDGET
 Powerful marketing and advertising programs of $117m over first five years drawing 2 to 4
million visitors annually.
LOCATION
 All sites strategically selected for convenient driving distances of large metropolitan areas.
OPPORTUNITY
 Significant frontage has been reserved to provide and encompass dynamic commercial
development potential generated by DraggonsGate partnerships.
REVENUE
 Projected cash reserves exceed $100 million annually.
 Business Plan Based on Disney 'In Park Stay Time” Model.
MANAGEMENT
 Team: Former Execs: Warner Brothers, 20th Century, Six Flags, Universal & Disney.
 Strong team members.
 Specialists in developing, executing and maintaining major theme parks and entertainment
attractions across a wide spectrum including specialists in startup operations in the vertical.
FUTURE PLANNING
 Phase II Park planned on-site includes: Game of Thrones, World of Warcraft, The 300, SMITE
and League of Legends.
 Plan includes 10 parks worldwide: China, India, Russia, New York, California, Texas,
Georgia, Canada and Ireland.

 

DraggonsGateT is to Theme Parks what Cirque du Soleil is to Ringling Brothers

  Private and Confidential
DraggonsGate Entertainment, LtdTM - 3 -