MAY 2022 Q2 Edition

POINT GREY GOLF & COUNTRY CLUB

As previously communicated in PGQ1, the Board led long range planning process has been underway for a number of months. This week, members are being provided with a report on the State of the Club that sets out the state of the Club’s primary assets and services, and considerations we should all be aware of. At a scheduled Town Hall meeting on May 31 at 6:00pm we will spend approximately one hour on the State of the Club and the balance of the meeting will be dedicated to providing members with information about tree management at Point Grey. As the trees on our property age, and we deal with the impacts of climate change, we will update members on why certain work is necessary, how we balance tree and turf priorities, and we look forward to hearing member views on these important matters. Please take a moment to let us know if you will be attending the May 31 Town Hall meeting by clicking here. The next phase of planning is underway, and the Board intends to release a report on Priorities and Alternatives in September of this year. This will be followed by extensive member consultation in the form of Town Halls, round tables, and a member survey. As outlined in the State of the Club report please do not hesitate to contact us with any questions you may have. Sincerely, Scott Wilson, President Adam Zubek, GM/COO

INSIDE State of the Club

2

Finance

3

Golf Operations

7

Report on the Club’s Primary Assets & Services Click on the image above and take a few minutes to review this robust document as prepared by the Long Range Planning Committee and Board of Directors. We encourage your feedback at the upcoming Town Hall on Tuesday, May 31 at 6:00pm. Let us know if you will be attending the Town Hall on May 31st by clicking below:

CLICK HERE

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FINANCE The Club’s financial results are split between: i.

Operations – services provided to members and funded by member dues (excluding the capital dues) and activity-specific revenue; and

ii.

Capital – projects and sustaining capital expenditures funded by member capital dues, entrance fees, and bank borrowing.

The year-to-date results are shown in the tables below, accompanied by performance indicators in color (see legend below). The performance indicator reflects how each activity is performing yearto-date (YTD) and whether it is forecasted to meet budget/forecast for the year. Any activity that is not expected to meet budget will be discussed below.

LEGEND On Track with meeting budget or better than budget Caution with meeting budget Concern with meeting budget

OPERATIONS

YTD

Member Dues

2,452,000

F&B

(290,000)

Golf Operations

(200,000)

Golf Course

(796,000)

Admin., Clubhouse & Other Operations Cash Flow *

(1,206,000) (40,000)

* before working capital changes CAPITAL Capital Dues

YTD 289,000

Golf Course Equipment Lease

(169,000)

Sustaining Maintenance Capital Spend

(453,000)

Entrance Fees

1,033,000

Bank Debt

(392,000)

Project Captial Spend Centennary, net

(69,000) -

Capital Cash Flow

239,000

KEY BALANCES

as of March 2022

Cash

1,288,000

Bank Loan

5,503,000

Entrance Fee Receivable

6,686,000

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OPERATIONS RESULTS The Club’s operations cashflow before working capital movement shows a favourable variance of $14,000 YTD in relation to budget. As of Q2, management continues to forecast an operating breakeven by fiscal year end. i.

Food & Beverage (F&B) – Strong member food and liquor sales continued to offset a portion of the banquet shortfall ($50,000 YTD). Labour uncertainties are also being managed. With COVID restrictions now lifted, the outlook for rest of the year is relatively positive. The team expects to lessen the variance to budget by end of fiscal year.

ii.

Golf Course – Variance is solely related to timing of expenses. No concerns with meeting budget by end of fiscal year.

iii.

Admin – Additional talent acquisition and retention efforts were needed to support all departments amidst the increasingly challenging labour market.

iv.

Golf Operations – Strong retail sales helped offset the shortfalls in guest fees and cart rentals. The positive variance was a factor of labour shortages YTD, which is being improved through additional hiring efforts.

v.

Clubhouse – Unbudgeted repair & maintenance (R&M) was needed as various components within the Clubhouse age and near end of useful life. The total YTD variance of $42,000 included unbudgeted one-time R&M for front entrance fire suppression system, amplifier failure, refrigeration evaporator leakage, mandated first-aid device replacement, and tool purchases for recurring repairs. Some supplies such as cleaning supplies and masks will be reduced from Q3 onward. Management expects an overage in R&M costs by end of fiscal year.

vi.

Member Dues - Positive variance of $38,000 YTD due to strong member uptake and contributions from eligible waitlist members.

All teams continue to manage the balance between labour shortages and overtime. Actions were also taken to mitigate the impact of supply chain disruption and pricing increases on the Club’s procurement. CAPITAL RESULTS The Club’s capital cashflow has been strong, driven by favourable entrance fees. The Club added 9 Full Play members and 7 Associates in Q2. The net entrance fee cashflow was $528,000 better than budget YTD. Cash received from new member entrance fees is 56% YTD. The current full member equivalent (FME) number is 861. The Club’s YTD capital expenditures totalled $453,000 in sustaining capital and $69,000 in improvement projects, marking approximately 50% of total approved annual capital spend. Any timing difference on capital expenditures will be caught up in the upcoming quarter. As planned, any excess capital cash will be applied towards bank loans in the latter half of the fiscal year. SUMMARY The Club’s financial position and cashflows are in good health.

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POINT GREY GOLF AND COUNTRY CLUB Cash Based Financial Summary (in 000's) Mar 2022

Operations

Members' Dues

YTD Actual

YTD Fav/(Unfav) vs Budget

2,452

38

Food and Beverage, net

(290)

(37)

Golf Operations, net

(200)

46

Golf Course

(796)

25

Administration and Clubhouse

(1,138)

(56)

(68)

(2)

Operations -before working capital

(40)

14

Working capital

(14)

(82)

Operations - cash flow

(54)

(68)

Other (incl. CEWS, other revenue, property taxes)

Capital

Capital Dues Entrance Fees (net of bad debt and membership sales expenses) Golf Course Equipment Lease Capital Expenditures Sustaining Capital Capital Project Centennial expenses, net Bank Loan (net)

289 1,033

6 528

(169)

6

(453) (69) (392)

90 8 -

Capital - cash flow

239

638

Net cash flow (Operations and Capital)

185

570

Mar 2022 Actual 1,288 5,503 6,686

Fav/(Unfav) vs Budget 570 277

10 1,552

(1) -

Key Balances Total Cash Bank Loan Entrance Fees Receivable (incl current portion)

Key Balances (PGSL) Total Cash Bank Debt

Point Grey Golf and Country Club and Point Grey Golf and Country Club Limited. Unaudited Condensed Financial Statements For Period Ended March 31, 2022 Combined Statement of Income YTD

YTD

Actual

Budget

Revenue Member dues

2,454,262

2,420,753

Food and beverage

637,548

606,014

Golf operations

554,937

489,502

Total revenues

3,646,747

3,516,269

Golf course

796,196

821,546

Clubhouse

474,891

433,035

Administration

663,254

649,118

Property taxes

69,377

71,556

Food and beverage

927,491

858,938

Golf shop

755,226

735,979

3,686,435

3,570,172

Total income(loss) before undernoted items

(39,688)

(53,903)

Amortization of operating assets

149,000

148,998

Capital dues

288,814

282,693

Golf course equipment lease

168,935

175,002

Total income(loss) before other revenues and expenses

(68,809)

(95,210)

Expenses

Total expenses

Other revenues and expenses Entrance fees

1,189,700

242,400

Interest Income

1,297

-

Centennial, net

176

-

(64,276)

(62,172)

Bank loan interest Membership sales expenses

(73,863)

(84,080)

(299,000)

(298,998)

-

(20,000)

Other income (loss), net

754,034

(222,850)

Net earnings

685,226

(318,060)

Amortization of long term assets Professional and consulting fees

Combined Balance Sheet Fiscal 2021 Year-end 2022-03-31

2021-09-30

Cash

1,287,989

1,103,413

Other current assets

3,210,306

3,330,298

Assets Current

Housing loan Promissory Note Receivable

180,000

192,000

3,150,108

3,150,108

5,441,872

5,421,218

Fixed assets

16,832,329

16,682,765

Total Assets

30,102,604

29,879,802

Liabilities

3,051,654

3,183,627

Demand loan

5,502,526

5,834,377

Members' & Shareholders' equity

21,548,424

20,861,798

Total Liabilities & Equity

30,102,604

29,879,802

Entrance fees receivable

GOLF OPERATIONS Below is an overview of the historical rounds of golf for the past quarter.

HISTORICAL ROUNDS OF GOLF FOR Q2 JAN

FEB

MAR

3 MONTH TOTAL

2016

868

1314

1998

4180

2017

249

342

422

1013

2018

697

368

2002

3337

2019

1390

147

2008

3545

2020

569

1362

1677

3608

2021

2355

2154

4508

9017

2022

1724

2325

3065

7114

Respectfully, The Board and Adam Zubek, GM / COO

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