Annual Meeting March 26, 2018
Call to Order Jim Clayton, President
Meeting Agenda • Call to Order
Jim Clayton
• Certify Quorum
Hedy Whitney
• Introduction of 2018–2019 Board of Directors • Results of Member Vote • President’s Message • Financial Report
Jim Clayton
Hedy Whitney /RMS Rep Jim Clayton Pete Kloet
• Operations Report
Don Hunter
• Closing Comments
Jim Clayton
Certify Quorum Hedy Whitney, Secretary
Introduction of the Board Jim Clayton
Thanks to Our Outgoing Board Members •Bill Pescod •Tom Robertson •Jerry Westwood
Welcome, New Board Members •Jim Forte •Stu Hodgson •Jack Phillips
Introduction of Board Members • Jim Clayton
• Jack Phillips
• Elaine Christian
• Steve Powell
• Pete Kloet
• Gary Smith
• Jim Forte • Stu Hodgson
• Hedy Whitney
Results of Member Vote Hedy Whitney, Secretary as audited and certified by RMS / McGladrey
President’s Message Jim Clayton
Treasurer’s Report Pete Kloet
Finance Committee • Pete Kloet, Chair • Rick Berge • John Friend • Paul Lacy • Tom Robertson • Joe Roller • Renee Neville, Controller 2
Operating Results
FYE 2017
FYE 2016
Change
Revenue Membership Fees & Dues
$6,344,635
$6,241,324
1.7%
Food & Beverage
$2,374,776
$2,376,215
-0.1%
Golf Operations
$1,980,796
$1,957,558
1.2%
$359,177
$319,681
12.4%
$11,059,384
$10,894,778
1.5%
Food & Beverage
$2,946,654
$2,914,118
1.1%
Golf Operations
$1,169,907
$1,146,688
2.0%
Course Maintenance
$3,387,320
$3,210,799
5.5%
Tennis & Fitness
$605,162
$559,087
8.2%
Facilities Maintenance
$688,296
$768,437
-10.4%
$1,921,649
$1,815,825
5.8%
$359,639
$382,184
-5.9%
$11,078,627
$10,797,138
2.6%
-$19,243
$97,640
Tennis, Fitness & Other Total Revenue Costs
General & Administrative Taxes & Insurance Total Costs Operating Results
Capital Income FYE 2017 Net Capital Maintenance Dues
FYE 2018
$1,212,783
$1,244,271
$22,292
$46,322
$300,580
$159,560
Net Interest Expense
-$166,832
-$171,002
Net Capital Proceeds
$1,368,823
$1,279,151
-$1,622,294
-$1,504,150
-$253,471
-$224,999
$821,500
$810,250
-$730,561
-$653,701
Operating income
-$19,243
$97,640
Net Asset Increase
-$181,775
$29,190
Asset Sales Proceeds Net Transfer Fees
Depreciation Net Capital Income Membership Issuances Membership Redemptions
Board-Designated Funds Board-Designated Funds @ Aug. 31, 2016
$1,751,169
Capital Contributions
$1,212,783
Net Transfer Fees on Equity Memberships
$300,580
Social Membership Initiation Fees
$57,500
Asset Sales
$22,292
Capital Interest Operating loss
$248 -$19,243
Lease Obligations
-$279,981
Principal and Interest on Debt
-$582,628
Property and Equipment Purchases
-$811,535
Board-Designated Funds at Aug. 31, 2017
$1,651,185
Key Operating Statistics 2017
2016
2015
525
546
556
Operating Revenue per FME
$21,057
$19,953
$18,510
Operating Expenses per FME
$21,094
$19,645
$18,340
$1,089
$987
$1,104
$94,092
$89,166
$79,694
Average FMEs
F&B subsidy per FME Golf Course Maintenance per Hole Golf Revenue (Cart, Green and Guest Fees) Payroll and Benefits
$1,980,796
$1,956,000 $1,811,000
$5,999,451
$6,043,000 $5,961,000
Operating Results - FYE 2018 through Feb. 28, 2018 Actual
Budget
Dues and Fees
$3,296,249
$3,280,091
Food and Beverage Revenue
$1,317,176
$1,414,579
Golf Revenue
$1,008,669
$1,144,856
$264,668
$307,345
($1,568,176)
($1,635,815)
($648,693)
($714,126)
($1,652,812)
($1,712,697)
($348,956)
($398,822)
($1,206,392)
($1,183,510)
($433,051)
($466,733)
$28,682
$35,168
$549,500
0
Hurricane Related Expenses
($964,361)
0
Net Operating Results
($386,179)
$35,168
Tennis & Fitness Revenue Food and Beverage Expense Golf Expense Golf Course Maintenance Facilities Maintenance General and Administrative Expense Tennis & Fitness Expense Net Operating Results excl. Hurricane Related Special Hurricane Assessments
Operations Report Don Hunter, General Manager/COO
Shortest Presentation Ever - I Promise! • Budgets will be based on the outcome of today’s vote • Written report covering the our short-range goals and financial plan will be sent to the Membership by April 30
Operations • Membership is growing in the right direction • By the end of March, the 2018 YTD bottom line will be better than budget by $380K due to insurance advances on Irma damage • We expect to show a gain for the 2019 fiscal year • Key factors in attaining the gain are improved Food and Beverage results and labor cost controls • Golf Course Maintenance is currently under budget • Food and Beverage has caught up with budget and will be better than budget by the end of the fiscal year
The Courses • Greens are fast and receptive and should stay this way until the rains come • Greens are expected to stay healthy based on expected weather patterns • Fairways are good - aerification and top-dressing plan is working well • We still have major damage. We expect an additional cleanup cost of $180K and two months worth of work this summer • Summer weather patterns are expected to be mostly dry but heavy storms with potential for tropical storms • Cart traffic is a major issue that is inhibiting great growth in the rough and the fairways
Before and After Irma
Plant Damage
Before and after Irma
Summer Projects • Remove wood chips and stumps • Add 15+ acres of sod • Clear and clean natural areas • Replace plant material
Buildings • Focus will be on repairing damage this summer • This will result in a lot of drywall dust and roof and window repairs • We have hired a new housekeeping company due to unsatisfactory results
Insurance Coverage • All inspections were completed by both the carrier and our independent adjuster • Both adjusters expect to compare findings this month • We are optimistic that a conclusion is possible this summer • Insurance update will be included in Membership letter • Golf Course coverage has paid $1.3M to date and will pay another $500K in April • Our insurance premiums will increase by 11% next year
Membership Report
Current Membership Counts • • • • • • •
Total Memberships - 661 423 Class A golf 5 Preview 38 Associate 35 Senior 15 Senior Social/Sports 136 Socials
• Averages 524 full dues equivalents (FMEs) • Down from 534 Memberships (or 10) from one year ago
Key Improvements • Nick Gray and Joan Bilson sold 55 new Memberships this season • 22 Class A Golf and 2 returning Class A Golf Members
• The key this year has been Member referrals • Member referrals are up significantly
• Improved database management • Increase in marketing spending for advertising and direct mail • Targeted approach
COO Wrap-Up • Operations has seen significant challenges in 2017 and these challenges continue today • Our team is solid and strong • Staff believes in the vision of QCCC • With all of our challenges, we have made significant progress • Written report covering long and short-term goals, financial plans and an insurance coverage update will be sent to Membership by April 30
Closing Message Jim Clayton, President