Tiburon Peninsula Club 2013 ANNUAL MEETING Financial Review – November 21, 2013 1 2013 Financial Highlights  The TPC finances continue to improve  Cash Position: $1,670,000 (up $300,000 y/y)  Our Cap Ex is below budget ($250k) for third year in a row.  We now have $265,000 in our pool replacement fund  Up from $0 at the beginning of 2012.  Membership: At our Conditional Use Permit (CUP) Capacity  Waitlist is currently at 50 in-town families  Operating Costs: Trending Slightly Higher  Insurance, utilities, labor  Bank: Partnership with First Republic Bank remains solid.  Operations: Aside from the Cafe, all departments are in the black. 2 Café - Loss Run Rate Analysis  2013 Monthly High: => Annualized:  2013 Monthly Low: => Annualized:  2013 Most recent: => Annualized: ($27,933) – July ($335,196) ($10,943) – September ($131,316) ($11,546) – October ($138,552) • Since the summer months, losses are stabilizing • Club usage this summer was down significantly due to member travel • Difficult to plan labor schedules and food buying • Main culprits for loss: • • • • Food costs Labor costs Service charge removal Catering 3 2013 P&L Pre-Bonus Operating Results by Unit (through October 2013) => Department profits are not carried forward (i.e. zero balance on Jan. 1st each year)  Profits returned to departments for equipment upgrades and bonuses. 4 Running a Tight(er) Ship This is why we have been able to minimize dues increases… 80% 75% 70% Jerry Pang is hired as GM of TPC 65% Total Revenues as a % of Labor Costs 60% 55% 50% 45% 40% 35% 30% 2007 2008 2009 2010 2011 2012 5 Highlights of 2013 YTD Capital Expenditures  Cap Ex remained below average for the third year in a row  Most expenditures were related to general/deferred maintenance Projects Completed  Clubhouse  Café redesign consultation services  Clubsoft – management/membership software  Security camera system upgrade  Fencing  Concrete work – sidewalks and stairs  Fitness  TV system upgrade  Aquatics  Locker room enhancement in boys/girls rooms 6 2013 Membership Review As of October 31, 2013:  Regular Members =  Senior Members =  Total Members = 699 (700 is max under CUP) 175 874  Monthly Dues Income = ~$200,000  YTD Initiation Income = $455,809  In-Town wait-list at 50 families, each who have submitted a 10% nonrefundable deposit (i.e. $1,850). It’s a real list.  We budget for 35 new Regular Members annually (5% turnover or $647,500) – from both resignations and Senior Member conversions.  YTD, 26 new Regular Members ($481,000) have joined the TPC.  Note: some new members are on a 3 month installment plan.  Membership is at capacity due to our conditional use permit (CUP). 7 First Republic Construction Loan Update 1 – Loan Amount: $4,500,000 (current balance = $4,056,810) 2- Interest Rate: 5.35% 3- Amortization: 15 years (refinanced in 2011) 4- Monthly Payment: $37,000/month 5- Prepay Penalty: In 1st 4 years, we can pay down 20%/year w/out penalty.  Construction loan refinancing was explored in April 2012  BOG determined the terms were not currently in the best interest of the TPC. − Although there were interest rate savings, points and fees pushed out the breakeven to over three years. − We will continue to monitor refinancing opportunities. 8 Final Thoughts  Congratulations to all departments on another exceptional year  Thank you to all volunteer members for your time and effort in making the TPC a great place for family, friends and other members to enjoy  Jerry and Aaron are huge assets to the TPC  On the CapEx front, 2014 will prove to be an exciting year for the TPC. Stay tuned! 9 Addendums 10 UNIT P&LS, CASH AND MEMBERSHIP RESULTS (THOUGH OCTOBER 2013) BY MONTH 11 TPC Cash and Reserve Balances (as of October 31, 2013) CASH BALANCES "A" Operating Cash/Check Acct Balance on Jan. 1, 2013 $244,761.26 Balance on Oct. 31, 2013 $101,808.98 Change ($142,952.28) "B" Emergency Reserve Savings Balance on Jan. 1, 2013 $558,701.22 Balance on Oct. 31, 2012 $559,110.85 Change $409.63 "C" Cap Ex "Replacement" (Ckg) Balance on Jan. 1, 2013 $554,200.41 Balance on Oct. 31, 2012 $704,202.01 Change $79,743.70 "D" Cap Ex "New" (Savings) Balance on Jan. 1, 2013 $40,147.93 Balance on Oct. 31, 2013 $40,155.73 Change $7.80 "E" Cap Ex "Swimming Pool" (Savings) Balance on Jan. 1, 2013 $155,126.13 Balance on Oct. 31, 2013 $265,224.38 Change $110,098.25 Total Cash Balance as of Oct. 31, 2013: $1,670,601.95 Funded by initiation fees 12