VIA EMAIL November 11, 2015 TO: Jeffrey Epstein — jeevaeation4gmail.com CC: Leon Black Brad Wechsler —¶
Jeffrey,¶
Here is the VERY PRELIMINARY 2016 cash flow you requested. Even though it's very preliminary Brad asked that I copy Leon since revenue numbers are markedly different than prior years.¶
Please note:¶
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- The cash flow is presented in 3 parts: (a) page one annual projected summary for 2016 (b) page 2 month by month summary and (c) page 3 footnotes that tic back to page 2.
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- Most numbers are "estimated- to the nearest ten thousand dollars.
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- Third party-input was used where available (Lg., Chris Pollack on the 70th Street expenditures, most recent Apollo projections, etc.)
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- Where relevant, last year's number were used as a starting point (e.g., plane and boat expense).
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- Only identified art purchases are incorporated.
Let's discuss next steps at your earliest convenience.¶
BLACK FAMILY PRELIMINARY COMPOSITE CASH FLOW SUMMARY PROJECTED 2016¶
| SOURCES: | PROJECTED |
|---|---|
| CASH INFLOWS FROM INVESTMENTS | 2016 • |
| APOLLO DISTRIBUTIONS AND TRA | 133.630 |
| INVESTMENTS | 50,400 |
| PUBLISHING INFLOWS | 2,200 |
| ART SALES | |
| BOAT/PLANE CHARTER INCOME AND MISC | 3,460 |
| 189,690 | |
| CASH INFLOWS FROM FINANCING ACTIVITIES | |
| ART LOAN PROCEEDS | |
| TOTAL SOURCES | 189,690 |
USES:¶
| CASH OUTFLOWS FROM PERSONAL AND INVESTMENT ACTIVITIES | |
|---|---|
| ART, JEWELRY AND COLLECTIBLES | 28,750 |
| INTEREST EXPENSE - ART LOAN | 8,000 |
| ART ADVISORY & INSURANCE | 2,760 |
| REAL ESTATE | 12,120 |
| INVESTMENTS: NON- PUBLISHING | 39,960 |
| INVESTMENTS: PUBLISHING | 11,000 |
| PLANE OPERATING EXPENSES | 4,200 |
| PLANE LOAN P&I | 1,890 |
| BOAT OPERATING EXPENSES | 4,200 |
| BOAT LOAN P&I | 1.200 |
| ADVISORY | |
| TAXES - INCOME. GIFT. USE | 46,640 |
| CHARITY | 34,120 |
| FAMILY OFFICE | 6,600 |
| PROFESSIONAL FEES | 1,560 |
| RESIDENTIAL NON LABOR | 5,280 |
| INSURANCE FOR REAL ESTATE AND AUTOS | 840 |
| RESIDENTIAL LABOR | 1,800 |
| PERSONAL - LEISURE TRAVEL ET AL | 6,000 |
| MISC. DESIGNATED DISBURSEMENTS | 4,800 |
| DISTRIBUTIONS TO CHILDREN | 3,840 |
| TOTAL USES | 225.560 |
| NET INCREASE (DECREASE) IN CASH | (35,870) |
| PROJECTED CASH AT 1/1/16 | 94,150 |
| PROJECTED CASH AT 12/31/16 | 58,280 |
*NUMBERS ARE ROUNDED TO TENS OF THOUSANDS¶
| Amounts in (000s) April Aug Jan Mar Jun July Oct Nov Total Feb May Sep Dec 1 APO distributions 33.380 33.380 33.380 33.380 133.520 TPA Projections 110 2 110 Investment Inflows - non publishing 4.20) 4,200 4,200 4,200 4,200 4.200 4.200 3 4,200 4.200 4.200 4.200 4.200 50.400 Publishing inflows 400 4 1.800 2.200 Art Sales 5 Boat ellen& inane 6 500 500 500 50O 500 2,500 Plane charter Income 80 80 80 80 80 80 80 80 83 80 80 80 960 7 Art Loan 8 Total Sources 4,680 39,460 4,280 4,390 38,160 4,780 4,780 38,160 4,780 4,280 37,660 4,280 189,690 Uses 9 Art & collectibles (28,750) (28.750) (2600) Interest Bofa - Art Loan (2,000) (2.000) (2.000) (8,000) 10 Art advisory and insurance (2.760) 11 (230) (230) (230) (230) (230) (230) (230) (230) (230) (230) (230) (230) Real Estate Miami Property • Construction (210) (210) (210) (210) (210) (210) (210) (210) (210) (210) (210) (210) (2,520) 12 Townhouse - Construction (800) (800) (800) (800) (800) (800) (800) (800) (800) (800) (9,600) 13 (800) (800) SH Meadow - Construction 14 Total Real Estate (1,010) (1.0101 (1,010) (1,010) (1.0101 (1,010) (1,010), (1,010), (1,010), (1,010), (1,010) (1,010), (12,120) Investments (1330) (3330) (3330 (3,330) (3,330) (3,330 (3,330) (3.330) (3.330) (3.330) (3.330) (3.330) (39.960) 15 Investments non•pubkshing (1400 (1400) Investments publishing (1,100) (1,000) (700) (1,500) (900) (1,000) (700) (1,300) _(11.000) 16 Total Investments (4230) (4630) (3,330) (3,330) (4,830 (4.330) (4,030) (4,630) (4,430 (4,330) (4.730 (4.730) (50.960) Plane operating expenses (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (4,200) 17 Plane principal and interest (160) (160) (160) (160) (160) (160) (160) (160) (160) (150) (150) (150) (1,890) 18 Boat operating expenses (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (350) (4,200) 19 (350) (100) (100) (1,200) 20 Boat principal and interest (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) 21 Advisory Taxes Federal 2016 (6.000) (6.000) (6.000) (18.000) 22 (10,500) 23 State 2016 (3.000) (3.750) (3.7501 (3,600) 24 State 2015 (1,500) (2,100) Use tax 2015 (10,200) (4,340) (14,540) 25 Total Taxes (1,500) (9,750) (15,440) (9,750) (46,640) Charity (20) (170) (34,120) 26 (40) (500) (480) (2,510 (340) (750) (130) (11,600) (9,010) (8,570) Family Office (550) (550) (550) (550) (6.600) 27 (550) (550) (550) (550) (550) (550) (550) (550) (1.560) 28 Professional Fees (130) (130) (130) (130) (130) (130) (130) (130) (130) (130) (130) (130) (440) Residential non-labor Including insurance (440) (440) (440) (440) (440) (440) (440) (440) (440) (440) (440) (5.280) 29 (70) Insurance for Real Estate and Autos (70) (70) (70) (70) (70) (70) (70) (70) (70) (70) (MO) 30 (150) Residential Labor (150) (150) (150) (150) (150) (1501 (150) (1,800) 31 (150) (150) (150) (150) Personal -Leisure Et Al (500) (500) (500) (500) 500) (500) (500) (500) (500) 500) 500) (500) (6,000) 32 400) MS Miscellaneous Disbursements (400) (400) (400) (400) 400) (400) (400) (400) 400) (400) (400 (4,800) 33 Total uses (53,340) (9,290) (18,010) (11,770) (11,280) (20,580) (9,820) (9,000) (20,890) (20,760 (18,170) (19,030) (221,720) Net In (Out0ow) before Intrafamily (4,610) (7,490) (15,780) (5,040) (18,480) 21,450 (48,950) 26,880 (15,910) 19,490 (14,750) (32,030) 29,160 IntraFamily Trust Distributions • Ben Donalbane (900) (900) (900) (900) (3,600) 34 Trust Distributions - Alex and Victoria (20) (20) (20) (20) (240) 35 (20) (20) (20) (20) (20) (20) (20) 1.20) (20 ) (92) Total Inds-Family (920) (20) (20) (920) (20) (20) (20) (920) (20) (20) (3,840) Net cash provided (used) (5,530) 21,430 (7,510) (49,870) 26,860 (15,800) 29,140 (15,930) (17,400) 19,470 (14,770) (35,870) (5,960) Beginning of month cash balance 94.150 88,620 110,050 102,540 52.670 79.530 63.7 57,770 86,910 70.980 53.580 73.050 94,150 End of month cash balance 88,620 110,050 102,540 52,670 79,530 63,730 57,770 86,910 70,980 53,580 73,050 58,280 58,280 | Black Family Preliminary Composite Cash Flow Projection For 2016 ( Numbers Rounded to Tens Of Thousands) | |||||||||||
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BLACK FAMILY PRELIMINARY COMPOSITE CASH FLOW SUMMARY -2016 PROJECTION FOOTNOTES AND ASSUMPTIONS¶
| Cash Flow Category | Notes!Assumptions | |
|---|---|---|
| N | Inflows | |
| As of 10/28 Apollo distributions for 2016 are expected to be $1.44 per share. Calculated based upon 92.7MM shares, LDB and the Trusts can expect to receive 5133.5MM. It is assumed that the distributions will | ||
| 1 APO Distributions | be spread evenly across the year. | |
| 2 TRA Projections | Apollo projects that the TRA distribution will be nominal at around 5100K | |
| 3 Investment Inflows - Non-Publishing | Based on 2015 projected numbers and the assumption that the same approximate decline in investment inflows that took place between 2014 and 2015 happens in 2015-6 | |
| 4 Publishing Inflows | These projected repayments were provided by John Murphy, CFO of the publishing entities | |
| 5 Art Sales | There are no known projected art sales | |
| 6 Boat Charter Income | This projection is based upon an average of the last 2 years of boat charter income | |
| Revenue is based upon total usage of 200 hours and 30% of those hours being reimbursed by Apollo. This is similar to the full year 2014. Revenue per hour used is 92.5% of the current reimbursement rate of | ||
| 7 Plane Charter Income | $17,765 to account for FET | |
| 8 Art Loan | The art loan has been fully drawn down. Unless its size is increased there are no projected inflows. | |
| Outflows | ||
| 9 Art & Collectibles | Arts and collectibles only includes the final payment for the Picasso 'Buste". | |
| P&I payments calculated assuming the loan will be outstanding throughout the year and that the rate will be 1.44% (current one month libor plus 1.25%). Maturity is 5/31/17 and full principal outstanding ($565MM | ||
| 10 Interest Bofa - Art Loan | )is due as a balloon payment | |
| 11 Art Expense - Advisory/Insurance | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015 | |
| 12 Miami Property Construction | Based upon the average of the project estimate range provided by Lorraine who is working on the project with Debra | |
| 13 NY Townhouse - Construction | Based upon monthly estimates provided by Chris Pollack, building advisor | |
| 14 SH Meadow - Construction | There are no known projects projected for 2016 according to Ben Krupinski's office. (They are the builders who worked on SH Meadow Lane.) | |
| 15 Investments Non-Publishing | Based on 2015 projected numbers and the assumption that the same approximate decline in investment outflows that took place between 2014 and 2015 happens in 2015-6. | |
| 16 Investments Publishing | These projected needs were provided by John Murphy, CFO of the publishing entities | |
| 17 Plane Operating Expenses | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015 | |
| P&I based upon the amortizing loan balance and current rate 1.91% (1 mo libor plus 1.72%) and assumed the plane loan would remain outstanding on the same terms rather than be repaid as a balloon payment | ||
| 18 Plane Principal and Interest | of $18.7MM on maturity date of 9/5/16 | |
| 19 Boat Operating Expenses | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015 | |
| 20 Boat Principal and Interest | Projected principal plus interest based upon the amortizing loan balance and current interest rate of 1.98% (daily libor plus 1.85%). Maturity of loan is 1211/18 with a balloon payment of $13.6MM | |
| 21 Advisory | Unknown | |
| 22 Federal Taxes 2016 | Based upon estimates provided by Richard Joslin | |
| 23 State Taxes 2016 | Based upon estimates provided by Richard Joslin | |
| 24 State Taxes 2015 | Based upon estimates provided by Richard Joslin | |
| 25 Use Taxes 2015 | Based upon estimates provided by Richard Joslin. Added to this estimate was the tax due in February for the Picasso purchase. This is payable to Gagosian. | |
| 26 Charity | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015 | |
| 27 Family Office | The family office grew in 2015, therefore this estimate was based upon the most recent three months ending September 2015 | |
| 28 Professional Fees | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015, this was reduced by $1MM relating to settlement in 2015 of prior year legal expenses | |
| 29 Residential Non Labor Excluding Insurance | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015.5400K was added to that for Miami taxes, fees and utility expenses | |
| 30 Insurance For Real Estate and Autos | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015 | |
| 31 Residential Labor | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015 | |
| 32 Personal & Leisure | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015 | |
| 33 Miscellaneous Disbursements | Used 2015 full year projections which include actuals through Sept 2015 and estimates for Oct-Dec 2015 | |
| 34 Trust Distribution - Ben Donalbane | This is based upon the current projected budget for Donalbane for 2016 spread out evenly over 4 quarters | |
| 35 Trust Distribution - Josh and Victoria | Based upon projected living needs for Alex and Victoria |