Knollwood Country Club

Report
Knollwood Country Club
Semi-Annual Membership Meeting
August 13, 2014
Knollwood Country Club – Next Steps For 2014 & Beyond
 Increase our marketing efforts via local outlets & increase exposure to Knollwood
• Work with the MGA and get the message out about our capital improvements
• Utilize Westchester media
Strategic print ads placed in Westchester Golf & Social Magazines, ESPN commercials, The Lexus Perfect
Drive ads and the 18th hole will be featured in the MGA’s fall publication.
 Drive membership
• Incentive credit offered for each new Member sponsored by an existing Member
• Look to attract a group of golfers from one of the other area clubs
Membership Committee has been very active reaching out to local real estate community, college alumni
associations and prospective members. Membership credit has not been a major driver.
 Seek to obtain highly visible local tournaments
• Knollwood will host a qualifier for the prestigious IKE and Westchester Amateur
 Better understand what the Membership wants from their club
• Create a survey specifically geared towards usage of the restaurant & bar
• Do we need to be open as much for dining during slow periods?
• Are we having too many special functions?
• How much can we save with a different schedule
House Committee monitoring usage and will produce findings and a survey sometime in the Fall
 Create a tight budget to offset potential “non-controllable” expense increases
• The local restaurant union contract expires in 2014
• The Affordable Care Act potentially driving benefit costs higher
Knollwood Country Club – Golf Committee Update
A Year of Great Progress !!
Plans for Remainder of 2014
• Substantial Completion of the 18th
Hole
• Green Expansions - Hole #’s
5,7,10,11,13,14
• Superb and consistent conditions
• Implementation of Senior Tees
• Course re-measurement and rating
• Renovation of left 18th Hole Bunker
• Green Expansions - Hole #’s
4,8,17,18
• Tee Box Leveling – Front of 2, Blue
Tee on 4, Ladies Tee on 9 and
Blue/White Tees on 13
Future Plans – Bunker Restoration
•
•
•
•
Our Course = Our Greatest Asset
Our Bunkers = Our Greatest Liab.
Investigative Progress Started
Long Term Plan to be presented at
2014 Annual Meeting.
Knollwood Country Club – House Committee Update
Restaurant Report
As of June 30, 2014
($ 000's)
Member Dining
Outside Revenue
Total Sales
•
•
•
•
•
YTD 2014
$
226
$
277
$
503
Total Food Costs
Food Cost Ratio
$
P/R & Related Exp.
Other Exp.
Net Income/(Loss)
$
$
$
Bar Report
As of June 30, 2014
($ 000's)
YTD 2013 $ Var.
$ 230 $
(4)
$ 170 $ 107
$ 400 $ 103
(216) $ (175) $
42.9%
43.8%
(289) $
(112) $
(114) $
(227) $
(100) $
(102) $
% Var.
-1.7%
62.9%
25.8%
(41)
-23.4%
(62)
(12)
(12)
-27.3%
-12.0%
-11.8%
Membership dining down…member special
events (Super Bowl, July 4th, Lobster night) up
Outside Revenue increased significantly due to
increased outings and parties
Higher payroll due to full time salaries and
increased outings
Summer Camp program successful
Saturday usage is still lightest of the week
Member Bar
Outside Revenue
Total Sales
YTD 2014
$
131
$
90
$
221
Total Bar Costs
Bar Cost Ratio
$
P/R & Related Exp.
Other Exp.
Net Income/(Loss)
$
$
$
•
•
•
YTD 2013 $ Var.
$
97 $
34
$
55 $
35
$ 152 $
69
(69) $ (43) $
31.2%
28.3%
(37) $
(9) $
106 $
(54) $
(10) $
45 $
% Var.
35.1%
63.6%
45.4%
(26)
-60.5%
17
1
61
31.5%
10.0%
135.6%
Membership Spending increased
Outside Revenue increased
Total Bar Costs higher driven mainly by higher
beverage purchases and inventory inflation
Next Steps:
• Monitor the number of special events to create better demand & reduce costs
• Continue to reduce costs margins in the restaurant by having more outside events
Knollwood Country Club – Capital Committee Update
2014 Projects
•
•
•
•
•
•
•
•
•
•
•
•
18th hole Renovation
Men’s Locker Room Upgrade
Various Golf equipment replacements
Remaining Projects
Left Bunker on the 18th hole
Various Golf related costs
Turnesa Room Carpet Replacement
and painting
Installation of 2 new Har Tru tennis
courts (est. $165k)
Tennis Court Rationalization
KCC is the only country club in our
competitive set without this amenity
Many prospective members have
inquired about tennis during the
interview process.
Much needed amenity to
accommodate to appeal to active
families.
Approved by the board July, 2014
Beginning the town approval now and
hope to begin construction early 2015
Cash Escrow Analysis
($000's)
Restricted Cash 06/30/2014
Remaining Unspent Budget
Remaining Capital Revenue
Remaining Tour GCX Revenue
Estimated Escrow Balance
$
$
$
$
$
319
(130)
67
20
276
Projected Tennis Courts
Estimated Escrow Balance
$
$
(165)
111
Knollwood Country Club – Membership Committee Update
2013
•
•
•
15 New Members
28 Changes in Status
EAM Magnitude +5.52
Completed
 Trial & Sunbird Classifications
 $2,000 Referral Incentives
 College Alumni Program
 Real Estate Introductory Event
 Cornell Club Reciprocal
 Westchester /WAG Articles & Ads
2014
•
•
•
•
•
17 New Members
17 Changes in Status
EAM Magnitude +14.16
$55,000 Initiation Fees
$ 8,800 Member Referrals
Projected
 Associate Members Incentives
 Pool & Tennis Classification
 Westchester /WAG Articles & Ads
 College Alumni Program
EAM = Equivalent Active Members
Increasing membership is critical to maintaining a healthy cash flow. We need to
continue to be creative & aggressive in attracting new members without
compromising standards.
Knollwood Country Club – Importance of Membership
Clearly we cannot afford to lose market share….
Losing
Market
Net EAM Losses Mean
Increases in Cost to Those
That Remain
 Increase and Maintaining
Membership critical
 Knollwood needs to continue to
adapt to changing socio economic
trends to attract new Members
 Capital dollars should be spent in
ways that help attract new Members
 Patience is required…some changes
may not pay immediate dividends
but should have long term benefits.
Dues
Increases
Knollwood Country Club – Treasurer’s Update
Operating Statement
For the Six Months ended 06/30/2014
($ 000's)
Actual
Budget
•
$ Var.
% Var.
Revenues Member Dues
Net Food & Bar Sales
Other Revenues
Total Revenue
$
$
$
$
1,277
456
388
2,121
$
$
$
$
1,327
366
325
2,018
$
$
$
$
(50)
90
63
103
-3.8%
24.6%
19.4%
5.1%
Expenses P/R & Related Costs
Other Expenses
Interest
Total Expenses (1)
$
$
$
$
(1,236)
(972)
(94)
(2,302)
$
$
$
$
(1,168)
(954)
(94)
(2,216)
$
$
$
$
(68)
(18)
(86)
-5.8%
-1.9%
0.0%
3.9%
Net Inc/(Loss) From Operations
$
(181) $
(198) $
17
•
Payroll higher due to increase in
outings and benefits costs
•
Other Expenses are in line with
budget & 2013 totals
•
Next Steps
Continue to be aggressive attracting
new members. Membership dues are
vital to financial stability.
•
Manager payroll efficiently
•
Closely monitor other operating
expenses for the remainder of the
year.
•
If breakeven cannot be achieved with
flat expense growth then the Board
needs to hear from the Membership
as to whether we should reduce
services, increase annual dues or
continue to bear 5%-10%
assessments
(1) Excludes Depreciation
Current projections forecast a potential $1,000$1,500 operating assessment at year end 2014
Notes
Revenue increase due to higher F&B
revenue
Appendix
Knollwood Country Club – Fall 2014 Board of Governors Elections
•
4 boards seats are up for election this fall. The tables shows the status of the board
seats available for the November election. Please contact the nominating committee
if you have any interest in running for the board.
Exiting Board Members
Bob Hughes
Ed Fabiani
Frank Leone
Len Bencivenga
•
Returning Board Members
Nelson Soracco
Gene Leyden
Tony Procops
Dan Amicucci
David Sherwin
Mike Colasuonno
Craig Adams
Nominating Committee
Michael Ciaramella
John Bonito
Membership participation is critical to Knollwood’s success. Committee work touches
all operational aspects of the club and is instrumental in achieving long term
success.
Knollwood Country Club – Industry Comparative Analysis
Category
Knollwood
Average Annual Dues
Westchester County
$13,220
$11,421
57%
58.5%
Food Sales – Cost of Goods
42.9%
41.5%
Bar Sales – Cost of Goods
31.1%
28.0%
Golf Course Maint – Per Hole
$72,819
$84,513
Golf Shop/Bag Room Exp
$19,873
$31,360
Food Sales – Gross Profit
Based on projections supplied by Condon
O’Meara McGinty & Donnelly LLP

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