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Executive Summary
Congratulations on a stellar year
Your efforts are truly appreciated
Let’s do this again in 2012!
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Operations / PRE-BONUS
About ½ of last year, but a more representative # of future expectations
Difficult to budget for (we had a $140,000 delta y/y)
Cap Ex should average around $250,000/year
2011 Annual P&L Results by Unitand a 5-Year Comparison
Note: Any year-end profits are returned to the respective business unitsfor equipment upgrades and to pay bonuses. There is no carry forward.
and how far we’ve come…
We owe Jerry, Mike and crew ahuge thank you for righting the ship!
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Again, these are pre-bonus results.
2012 initiation fees will be deposited here first, and then into Funds “C” and “D”.
TPC Cash and Reserve Balances(as of December 31, 2011 and pro forma)
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Funds drawn down to close First Republic Loan and for pre-payment penalties to Bank of Marin.
Total Cash and Reserves (as of Feb. 1, 2012) = ~$1.5 million
2011 Membership Review and A Look at What’s Ahead
As of December 31, 2011:
Regular Members = 690Senior Members = 175Total Members = 865
Annual Dues = $1,837,753
As of January 31, 2012:
Regular Members = 700 Senior Members = 175 Total Members = 875
Annual Dues (est.) = $1,944,700
Annual Dues Increase Y/Y = $100,000
10 new members admitted in January 2012.Conditional Use Permit allows for a total of 700Regular Members. We are at the limit.
We currently budget for 35 new Regular Members annually (5% turnover) – from both resignations and Senior Member conversions. If our estimate is correct, we will generate approximately $525,000 for the Club’s capital expenditures (split roughly 40% for replacement/maintenance and 60% for new projects). Already have 10 new members in 2012. For reference, in 2011 we had 30 Regular Membership resignations, 6 Senior
conversions, 8 inactives/leaves of absence and 28 new members (~$500k in initiation fees).
There is currently an in-town waiting list of 22 families, each who have submitted a 10% non-refundable deposit (i.e. $1,850).5
The dues increase will help offset increased costs of insurance, utilities and labor
Summary of 2011 Capital Expendituresand Roadmap for 2012
2012 – Projects Approved by BOGTennis (resurfacing, leveling, windscreens): $64,700Food & Beverage-related enhancements: $10,000
2011 Cap Ex SummaryClubhouse (largely café improvements): $88,000Aquatics (concrete and starting blocks): $20,000Locker Rooms (flooring and carpets): $28,000Fitness (painting): $3,500Administration (computers): $14,000Grounds (fencing, playground, lighting): $79,000
2012 – Projects Currently Under Consideration ($ estimates)Front Desk Reconfiguration: $30,000Tennis (lower court fences): $55,000Outdoor Café Trellis Cover: ?Youth Tennis Center Project: ?Main Pool Refurbishment: ?
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Terms of our Construction Loan Refinancing with First Republic(and what it means for the TPC)
1 – Loan Amount: reduced from $5,620,000 down to $4,500,000.
2 - Interest Rate: reduced from 6.25% down to 5.35%.
3 - Amortization: reduced from 30 years down to 15 years.
4 - Monthly Nut: roughly equivalent (~$36,000/month)
5 - Prepay Penalty: None
LOAN COMPARISON FACTS:
WHAT THE NEW LOAN MEANS TO THE TPC:
1 - FOR THIS LOAN, WE WILL BE DEBT-FREE IN 15-YEARS – PERHAPS SOONER.
2 - SAVINGS OF MORE THAN $2,000,000 IN INTEREST PAYMENTS.
3 - WE HAVE GAINED A COMMITTED PARTNER IN FIRST REPUBLIC BANK.- Lead sponsor for TPC Challenger
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Initiation Fees Dues Non-Member Surcharges
Revenues
Expenses
Aquatics
Fitness
Food/Bev
Tennis
Youth
Activity Specific Member Charges
Non-Member Activity Charges
Activity Fee
Activities – Set at Operational Breakeven
Monthly Debt Retirement Fees
Mortgage
Personnel/Operations- Aqua
Personnel/Operations - Fit
Personnel /Operations– F/B
Persn/Ops - Tennis
Persn/Ops - Youth
TPC Comprehensive Financial Model
20%
80%
Administration
Facility Operations
“A” - Operating Cash/Checking Acct
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“C” - Capital Reserve“Replacement”
$250,000/yr
“B” - Emergency Reserve Savings Account
Half of Year End
Balance
II
“D” - Capital Expense (New)
Capital Expenses
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