E.D. Open Letter Q4, 2022

• For 2023, we will work to build on this event. We will work towards even better attendance by exploring additional disciplines again where and if possible, and helping this event to become what it once was. This event is not just about our AHRMA racing, but about the festival, the fans, and the highly anticipated “season ending event” for many enthusiasts across the US.

• We had our year ending Board of Trustees meeting at the world renown Barber Motorsports Museum, and what a perfect venue for this event. See more detail on this below.

Henryetta OK

• Our Off Road season finale and awards banquet were held in Henryetta OK again in 2022, and what a great weekend it was. All disciplines were represented, and the talent and competition were exceptional. We were graced by great weather the entire weekend (save Friday), and I was lucky to attend this event.

• Our new Off Road Director, Terry McPhillips, was in fine form as he worked with the team to pull this event off flawlessly. Every time I saw him (and several other team members) they were juggling and hustling to serve you, our owners. The entire team did a fantastic job of making this finale all it could be and my thanks to all of them for their over and above efforts.

• For all who attended the Off Road awards banquet, thank you. I was lucky to meet most of the members there and enjoy that special Off Road vibe. I wrote a piece in AHRMA MAG in 2022 about Off Road being the essence of our original founders’ grass-roots vision and how it creates a feeling of team, fierce but friendly competition, and community. I have seen this at all of the OR events in 2022, and Henryetta really reinforced this.

AHRMA BUSINESS: BOARD OF TRUSTEE MEETING

• We held the last of three Board of Trustee meetings at Barber as noted above and conducted club business as well as hearing from the members in attendance. We had good discussions, aired concerns and suggestions, and initially discussed our plans for 2023.

• I create presentations for each Board meeting, and they are posted on our www.AHRMA.org website. We do this so that you will all have access to key information as presented at the meetings. Please review them when you have a moment and advise with any questions.

• If you are able, I would encourage you to attend these board meetings in the future. Our board meetings in 2023 will be held at Casa Grande (Phoenix, AZ) in March, Laguna Seca in July, and Barber again in October. If you are not able to do that, I will continue to provide status updates of AHRMA with these updates.

• CONTACT: We want you to have access to the Board of Trustees and Management. You can find email addresses on our website under “Resources”, and “Board of Trustees” on the drop down. Click on the mail icon next to their name to provide feedback.

• PHONE: 1-888-41AHRMA. We have seen increased use of our UniTel based system which allows you to easily connect with the person or department of your choice. You can leave messages for the team members, and we will respond to you. We get messages via the new system regularly and it works well. Please let us know if you have issues with contact.

• TRUSTEE ELECTIONS: We conducted our annual trustee elections, and there have been changes.

Є THANK YOU: I’d like to personally thank Rob Poole and Beno Rodi for their service as trustees and the many years of support they have provided to AHRMA.

Є WELCOME: Please join me in welcoming Carl Anderson and Greg Tomlinson to the Board of Trustees. They both bring significant organizational and business experience that will benefit the Board. They also bring longstanding membership and experience within the AHRMA organization that will provide a quality perspective to serve the members.

SYSTEMS / PROCESSES / PERSONNEL:

• FINANCIAL REPORTING SYSTEM: We have continued to utilize our robust financial reporting system (QuickBooks Desktop) for financial oversight and management.

Є With this system we have been able to accurately track our performance by discipline, by event, by time frame.

Є We have built history for 2022, and have gone back to the very beginning of the year so that we would have the year-over-year comparisons to track against in 2023.

Є We will be able to better understand our revenue and expenses by discipline going forward and this will inform better decision making for event planning.

• PLANNING: The 2023 planning process was a bit better than in the past but still needs fine tuning. We will work hard to improve our documentation and process – focusing on lead time and efficiency.

Є Our schedules have been downsized for manageability as we rebuild for the future.

Є We are focused on viable venues and proven winning events. We will begin our RFP process for the 2024 schedule earlier this year to ensure quality dates and agreements.

Є We will continue to visit great locations and venues to maintain our member experience.

• Our calendar will be supported by better plans in 2024 and beyond. We will know what to expect from a revenue VS cost perspective in advance, and we will be able to measure and adjust as we go. This will be a sea change in process for AHRMA and will produce quality results.

• PERSONNEL: We have transitioned our Road Race Director position as you are all aware, and Al Charles has assumed the helm of the RR ship. His range of experience in both racing and managing organizations will serve AHRMA well. As I write this, we are approaching our first event of the year, and I can say with conviction that it will be a success because of his planning, hard work, attention to detail, excellent communication, and team approach. More to follow in our next quarterly updates on the impact that our Race Directors are making for AHRMA.

FINANCIALS: Q422 BETTER VS PRIOR QUARTERS

• We finished Q422 with a negative Net Income of roughly -$27.3K overall. This was our best quarter of 2022 and was driven by successful year end events, including our finales.

• REVENUE / EXPENSE: Improved balance VS prior quarters.

Є Good revenue, with gross profit of ~$279.7K.

Є Total expense of ~$306.9K.

Є We “almost” broke even in Q4 but had losses in each of the first three quarters.

AUDITED FINANCIALS: We have already begun the process of completing our tax filing 990-T, and our CPA is preparing to start work on our audited financials as we speak.

Є TIMING: We will deliver these documents roughly six months earlier than last year.

Є EFFICIENCY: Our “heavy lifting” of creating dependable financial systems has been done, and efficiency and timeliness of operations will improve in the future.

SPONSORSHIP : OUR SUPPORT CONTINUES

• SPONSOR RETENTION: Thanks to the efforts of Jim Doyle, we have retained or replaced virtually all of our sponsorships from 2022. Thus, 2023 will have good revenue and support, and set us up for success as we seek to grow this important portion of our program.

• ADDITIONAL AGENCY SUPPORT: We have made a transition for 2022 and added new support for our sponsorship efforts. We will be working with KCA Special Ops agency, which have a wealth of experience in motorsports sponsorship, promotion, and event management.

• OFF ROAD FOCUS: We will be focusing on multidiscipline sponsorship efforts in 2023 and beyond. This should begin to bring additional support for our Off Road events and lift our visibility across the racing spectrum in the US.

MEMBERSHIP : CONTINUING TO TRACK SIMILAR TO HISTORICAL NUMBERS.

• Our membership remains strong, with overall renewals tracking similar year over year. Our 12-month trend line is basically level, and you can see in the table / chart below that we’re within 24 for our total membership across the 12 most recent months.

Є We could see some membership adjustments as early year renewals are usually highly variable. We will work to build our outreach to continue longer term growth.

• We know that the membership fee increase was a challenge for some, and we appreciate your ongoing support. We need your support now more than ever. We are working hard to create sustainability for AHRMA, and your participation can help make this more successful in 2023.

• We are committed to maintaining and enhancing the member experience.

• We will take your suggestions and improve wherever we can.

As we head into our 2023 season, I would like to thank each of you – our owners – for your ongoing support of our club. We recognize that 2022 was a tough year and we appreciate your support more now than ever. Please know we are doing what is necessary to provide quality management and support for AHRMA and the members. Sustainability is our #1 goal now and we are thinking “long term.” Our quality member experience will not change, and we will never lose sight of the fact that we are here to serve you and conduct this club in the way you have communicated we should. I look forward to seeing you all at several events in 2023.

Now, let’s race! Craig