Presentation is loading. Please wait.

Presentation is loading. Please wait.

Las Vegas Railway Express, Inc.. Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway.

Similar presentations


Presentation on theme: "Las Vegas Railway Express, Inc.. Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway."— Presentation transcript:

1 Las Vegas Railway Express, Inc.

2 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Executive Summary Las Vegas Railway Express, Inc. (the “Company”, “LVRE”) will operate the “X” Train, a luxury passenger train, on a 330 mile route between Los Angeles and Las Vegas and will offer a compelling alternative to current travel options  Trains Outfitted With First Class Accommodations − Deluxe first class cars with executive seats, multiple flat screens in each car, bar and five-star food service, smoking cars, limited card games (for hotel credit—no gambling), corporate suites and door-to-door hotel transfers upon arrival in Las Vegas  Concierge Reservation Services: Pre- and post-boarding at discounted prices from hotels, restaurants, shows − Non-train booking income provides supplementary growth opportunity  Procure Operating rights for passenger train service over existing Union Pacific (“UP”) and Burlington Northern Santa Fe (“BNSF”) rail systems − LVRE to provide market rate fees to railroads to for financial incentive to give priority to LVRE trains − LVRE has negotiated right-of-way over longer and slower UP freight trains − UP has agreed to a 90% on-time arrival guarantee Quick Train Statistics  Average Speed – 65 mph  Trip Time – 5 hours  Fare – $99/passenger (one-way) 2

3 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Market and Competition Driving is cheapest and most popular mode of travel, but route congestion and safety are prevalent and growing problems  12MM individuals drive between Los Angeles and Las Vegas each year  Single highway (I-15) drive over mountain pass (plus intersections) –On peak travel days (which coincide with Las Vegas as entertainment destination) the drive can take 6+ hours –Drive takes ~4.5 hours on uncongested days (Monday afternoon, Tuesday and Wednesday)  I-15 between Los Angeles and Las Vegas is the most dangerous highway in the country (according to U.S. DOT)  Typical trip costs: ~$68/one way (17 gallons of gas) Flying is more expensive and door-to-door transit time only marginally faster than driving  2MM individuals fly to Las Vegas each year from one of four Los Angeles airports  Tickets are $280-$320 per person one way  Flying has its own issues: –1 hour actual flight time, plus drive time in traffic to airport –Incur additional parking fees –Must endure check-in and airport security procedures –Additional waiting time in advance of flight –Total time: ~4.5 hours 3 Flying is generally an uncomfortable experience given driving to airport through congestion, airport procedures, uncomfortable seats due to small plane configuration, lack of carry-on baggage space, limited service and Las Vegas hotel transfer

4 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Compelling Opportunity Ample demand exists in current market to make LVRE a winner  Las Vegas Municipal RTC Survey estimated 4MM individuals would use rail if a viable option existed  Other surveys estimate that 30% of the 12MM individuals which travel to Las Vegas do so for entertainment alone (gambling, shows, world-class dining, shopping, etc.—excludes travel for business, conventions, athletic events, etc.) Non-train booking services will generate a high-margin, supplemental and diversified revenue stream  Online booking platform and concierge reservation service offer travelers an easy and convenient solution for lodging and entertainment booking  Opportunity to capture additional fee income from current train passengers  LVRE team of experienced Las Vegas leisure and gaming experts possess deep relationships with top Vegas hotels and casinos and intimate knowledge of the market  Conservative non-train revenue forecast means greater upside exists beyond current projections LVRE need only capture a small fraction of the overall market to achieve profitability  Break even projected at 120,000 passengers per year  Year 1 – Two trains making two round trips 2 days a week (Thursday, Friday –Sunday) –Travel Thursday, Friday & Sunday (most popular travel days and most highly congested highway times) –Overall capacity of 1,200 passengers on a train of 15 cars 4

5 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Non-Train Revenues High-Margin Supplementary Revenue Stream  Booking platform will be sole channel to purchase “X” Train tickets –In discussions with Navitaire Rail to build custom tailored ticketing and reservation portal  LVRE will offer packages and specials to bundle with train tickets –High hit bookings: Hotel rooms, shuttle transfers (model assumes 40-50% capture rate) –Specialty bookings: Golf packages, shows, club bookings etc. (model assumes ~20% capture rate)  Projections calculated using a full bottom-up model for each bucket of non-train revenue White-Glove Concierge Booking and Reservation Service  Sales team will proactively call customers after booking to upsell bundled packages  Onboard concierge to book hotels, restaurant reservations, golf and other packages Attractive Upside Potential  Current model assumes very conservative capture rate  Management’s hospitality experience suggests actual upsell rates could meaningfully exceed forecasted assumptions  Potential volume discounts from hotels, restaurants, shows, etc. currently not reflected in the model –Discounts passed on to customers to further encourage bundling 5

6 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Financial Metrics 6

7 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Financial Metrics 7

8 Click to edit Master title style Project Status

9 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Operating Agreement with Union Pacific Railroad Union Pacific Railroad  Rail access agreement to run trains on UP route from Las Vegas to Daggett, California  Market Rate fee structure  Right of way agreement to pass slower freight trains –Guarantee 90% On- Time arrival –LVRE will pay competitive market rate—incentivizing freight rail companies to give priority to LVRE trains  Sole Right to run privately operated passenger service on Daggett to Las Vegas rail corridor for 5 years  Provisions for running additional trains in future years  Capital Improvements to be paid for by LVRE for capacity improvement  UPRR completed RTC capacity planning  Agreement finalized 9

10 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Union Pacific Project Team 10 Union Pacific John RebensdorfVP OperationsOmaha, NE Jerry WilmothGeneral Manager Network InfrastructureRoseville, CA Don CaldwellReal Estate GroupRancho Cucamonga, CA Terry M Tate Director Transportation Services – WestSalt Lake City. UT David D Orrell, PEDirector Construction/Public ProjectsOmaha, NE Rick DurrantDirector Quality Services – WestRoseville, CA Neil ScottSuperintendent Transportation SVCS – UtahSalt Lake City, UT James MarshallProgram Manager – Commuter EngineeringSalt Lake City, UT Simon J HjelmCapacity PlanningOmaha, NE

11 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. BNSF Operating Agreement Summary  Market Rate $142 per train mile  Guarantee 90% on time operations  Priority scheduling over freight  BNSF dispatch Fullerton to Daggett, California  Operations commence while construction on Cap Ex is underway  Economic Benefits to BNSF Direct LVRE »Year 1$9,746,880 Year 2 $19,493,760 »Year 3$38,987,520 »Year 4$58,481,280 »Year 5$77,975,040 11

12 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Project Team BNSF 12 Burlington Northern Santa Fe Matt RoseChairman/CEOFt. Worth, TX Carl IcePresident/COOFt. Worth, TX Rollin Bredenberg VP Capacity PlanningFt. Worth, TX DJ MitchellAVP Passenger RailFt. Worth, TX Rich WesslerDirector Passenger Rail OperationsFt. Worth, TX Gary AgnewGeneral Director Resource Planning Ft. Worth, TX Rick L DeplerAsst. Director Passenger Operations Ft. Worth, TX

13 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Haulage Agreement with Amtrak 13  Operating train crews and scheduling  Experienced crew and maintenance teams  Familiar with the Los Angeles to Las Vegas route on the BNSF and UP rail lines  Established security and safety procedures  Efficient operating performance record

14 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Amtrak Project Team 14 Amtrak Joe McHughVP Policy & DevelopmentWashington, DC. Stephen GardnerVP Policy & DevelopmentWashington, DC. Jonathan HutchinsonDirector – Corridor DevelopmentOakland, CA. Don KushtoPrincipal – Host RailroadsPhiladelphia, PA. William SheridanChief, Service Planning/StrategyWashington, DC. Paul VilterAVP – Host Railroads Philadelphia, PA. Suzanne FikePrincipal Officer – Strategic Partnerships Oakland, CA.

15 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Rail Car Procurement & Refit  Agreement in place to acquire 24 Bi-Level Budd 7600 Series passenger cars from Transportation Management Services  BRC Coach & Transit of Las Vegas Nevada to complete refit and refurbishment of rail cars  Don Primi of Rail Enterprises serves as Owner’s representative on refit & FRA, UPRR and BNSF compliance  Interior design by Carpenter Sellers DelGatto, architects 15

16 Southern California Terminal

17 Metrolink Feeder System 12 million passengers a year ride this system These are examples of specifications and drawing disclosures of the train concept that will help you understand what constitutes a complete design of the train, which are provided as examples only. Actual designs will vary from these illustrations.

18

19 Vegas Station Design Concept

20 These are examples of specifications and drawing disclosures of the train concept that will help you understand what constitutes a complete design of the train, which are provided as examples only. Actual designs will vary from these illustrations. Capacity up to 3 trains & 700,000 riders annually

21 These are examples of specifications and drawing disclosures of the train concept that will help you understand what constitutes a complete design of the train, which are provided as examples only. Actual designs will vary from these illustrations. Capacity up to 8 trains and 2 million riders annually

22

23 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Development Timeline Uses of Proceeds  The Company estimates that it will require $35MM to begin Phase I operations in the 1st year –Use of proceeds include: » Railcar purchase, design, refurbishment and outfitting » Las Vegas Depot design and construction » UP & BSNF mileage fees » Salaries and other professional fees (legal, marketing/PR, etc.) » IT and corporate infrastructure development Anticipated Timeline of Significant Events 23 1Q 20121Q 20134Q 20123Q 20122Q 2012 Close $35MM Round Retrofit Design WorkRefurbishment and Outfitting Site DesignDepot and Station Construction Rail Cars Las Vegas Depot BNSF & UP Fees Financing Mileage Fees Completion and Launch Mezzanine Financing

24 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Organizational Chart 24 President/CEO Michael A. Barron Human Resources Vicki DiBernardo Training & Development Legal Operations Chief Jim Wilson Director Maintenance Operations Director Logistics Safety Officer Station Development Dianne Barron Passenger Services Penny Stegeman Director Food & Beverage Bartenders Waitstaff support Chefs Cooks Support On Board Operations (2) Housekeeping Engineering Support Security Director Retail Sales VP Sales & Marketing Don Adams Director Marketing Social media Director Sales Ticket Manager Manager Call Center Operations Manager Corporate Sales CIO Bob Gottesman Website Development On Board technical Operations Corporate Systems Infrastructure VP Asset Development Joe Cosio-Barron Rail Car Locomotives CFO Wanda Witoslawski Controller Senior Accountant Investor Relations Mike Mason

25 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Key Personnel Gilbert H. Lamphere – Chairman of the Board Mr. Lamphere serves on the Board of Directors of CSX Corporation ($25bn, 23,000 mile railroad) and has served on the board of Canadian National Railway ($25bn, 15,000 mile transcontinental railroad), Chaired the Board of the Illinois Central Railroad ($2.5bn, 1,000 mile Class 1 railroad between Chicago and New Orleans) and served on the board of Florida East Coast Railway ($2.8bn railroad, 350 miles down East Coast of Florida). He was also instrumental in the investment and oversight of Mid South Rail. Mid South, Illinois Central and Canadian National became successively the most efficient railroads with the lowest operating ratios in North America. Michael Barron – President/CEO Mr. Barron has been a developer of new business enterprises for nearly 30 years. Trained as a City & Regional Planner, Mr. Barron was responsible for Monterey California’s downtown redevelopment project of famous Cannery Row and Fisherman’s Wharf. Mr. Barron founded Citidata, the first electronic provider of computerized real estate multiple listing service (MLS) information in the nation. He led the business development team at TRW that acquired 11 companies and became the world’s largest repository of real estate property information - Experian. He founded and served as President, Finet Holdings Corporation (NASDAQ:FNCM), a publicly traded mortgage banking business specializing in e-mortgage financing on site in real estate offices. The company maintained a market capitalization of $500mm. Mr. Barron pioneered the first nationwide commercially deployed video conference mortgage financing platform for Intel Corporation operating in 20 states and funded over $1bn in closed loans annually. He was CEO for Shearson Home Loans and founded Liberty Capital, a $100mm asset management company based in Las Vegas, Nevada. Wanda Witoslawski - Chief Financial Officer Ms. Witoslawski has served in progressively responsible financial positions for public companies over the past twelve years. She served as Controller for Ocean West Enterprises until its acquisition by Shearson Home Loans in 2005 where she managed the accounting function for a staff of 1,350 employees and $200mm credit facility. Upon Shearson’s exit from mortgage banking in 2007, she joined the principals Mr. Barron and Mr. Cosio-Barron as Controller at Liberty Capital Asset Management, an investor in acquiring defaulted mortgage pools, managing public accounting documents for SEC filings and the financial supervision over the liquidation of over 4,000 mortgage loans the company had acquired. 25

26 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Key Personnel (cont.) Joseph A. Cosio-Barron –Vice President – Asset Development Mr. Cosio-Barron currently serves as LVRE’s Executive Vice President and has over 35 years of experience in real estate investment and development. Previously, Mr. Cosio-Barron was President of Shearson Home Loans and co-founded Liberty Capital, a $100 million asset management company based in Las Vegas. He has also served as the Managing Partner and President of CBS Consultants, Inc. a financial firm offering highly specialized services in securities compliance, development and lending for hotels, resorts, casinos and entertainment, as Executive Vice President of Finet Holdings Corporation, President of Terra West Construction, Senior Vice-President of Multi-Financial Corporation. John H. Marino, Vice President –Rail Operations (interim) Mr. Marino currently serves as Vice President – Rail Operations where he supervises the Company’s activities with the Class 1 railroads, railcar procurement, and railset maintenance. Mr. Marino also serves as President of Transportation Management Services, Inc., and was previously President and Chief Operating Officer of Rail America (NYSE:RA), co-founder of Huron & Eastern Railway Company, Inc., President of Huron Transportation Group, President and Chief Executive Officer of several short line railroads, as an officer of the Reading Railroad and with the United States Railway Association. 26

27 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Key Personnel (cont.) Donald J. Adams, Vice President, Sales & Marketing Mr. Adams currently serves as Vice President of Sales & Marketing for the LVRE. Mr. Adams has spent the last 35 years as Founder and Chief Executive Officer of Allstate Ticketing in Las Vegas. Allstate ticketing is the oldest and largest broker of sightseeing tours in Nevada, with over 20 (and growing) locations including the Flamingo, Harrah's, Hoover Dam, Las Vegas Convention and Visitors Authority and McCarran International airport. Mr. Adams and Allstate were pioneers in using the web-based platforms for the industry and in 2005 sold Allstate to Travelocity, Inc. Prior to founding Allstate, Mr. Adams served in executive roles for many Las Vegas gaming companies. Dianne D. David-Barron, Stations Development Manager Ms. David-Barron serves as LVRE’s Stations Development Manager. Ms. David-Barron has been an executive in the real estate and mortgage industries for 38 years. She is currently responsible for the construction and operations of the Las Vegas, Nevada, X Train Railway Station and for the integration of the service in Fullerton, California Station. Ms. David-Barron was previously the VP of the REO Department for Liberty Capital Asset Management, where she he managed a portfolio in excess of 4,000 loans located in 23 states. Ms. David-Barron has also served as Vice President of Residential Lending for Shearson Home Loans, Sales Manager for Virtual Mortgage Network, Vice President of Lender Services for Finet Corporation and as President of the Lender Services Division of American Financial Network. 27

28 Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway Express, Inc. Team Board Members and Consultants LVRE is supported by a team of experienced consultants and advisors whose specialties include railroad operations, investment banking, legal, insurance, real estate development, and marketing 28 John McPhersonPresident Illinois Central Railroad (ret) President – Florida East Coast Railway (ret.) Board Member - LVRE Tom MulliganDirector, Passenger Ops. – Union Pacific (ret.) Board Member - LVRE John Marino President Rail America (ret) Board Member - LVRE Mark Schulte Managing Director Dahlman Rose Investment Bankers Rob PekPresident – BRC Coach and Transit Brian HarringtonHarrington Group LLC - Insurance Mike DelGattoCSD Architects Dave SundaramOdyssey Real Estate Capital – Commercial RE Chet OpheikensR&O Construction – General Contractor Phil CherryLamar Advertising Daniel T. Behr Jordan, Knauff & Co Jody WalkerWalker Engineering – Civil Engineers

29 Las Vegas Railway Express, Inc.


Download ppt "Las Vegas Railway Express, Inc.. Click to edit Master title style Confidential – May not reproduce or distribute without permission of Las Vegas Railway."

Similar presentations


Ads by Google