HomeMy WebLinkAbout04202010 GOLF PRESENTATIOND
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Research
Decline in Rounds
Operational X-Ray
Market Supply Oversupplied 8%
Weather Decline in playable days 4%
Rounds Decrease in Rounds over Past 9 years 32%
Value Experience < Price 20%
Note: A playable golf day is defined as where the temperature is between 45 degrees and 90 degrees with less
than %Z inch of precipitation within 12 hours.
Capital Reserve to be Exhausted
b 6 30 2010
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GOLF BUDGETED PROJECTIONS
Fiscal Year
Total Revenues
Total Expenditures
Revenues Over (Under)
Expenditures
Less: Transfers Out
To C I P
To GF Debt Service
Less: Reserves
Regular -Salary
Stumpy Lake Lease Agreement
Storm Water
Expenditures in Excess of
Revenues
Actual Actual Budgeted Proposed Proposed
FY 08 FY09 09-10 10-11 11-12
2,670,741 2,182,189 $2,834,784 $2,380,390 $2,380,390
2,298,791 2,171,439 $2,486,191 $2,329,869 2,370,752
371,950 10,750 $348,593 $50,521 $9,638
200,000 100,000 $200,000
0 89,500 $89,550 $89,550 $89,550 }
0 $34,043 $30,000 $30,000 }
0 $25,000 $27,000 $27,000
0 81,141 0 0 0 }
371,850 (259,940) $0 ($96,029) ($136,912)
Golf Supply -Virginia Beach
Source: Longitudes, Inc.
10, 20, and 30-Minute Travel Times
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Impact of Weather
Gross Revenue $2,649,719 $2,174,936 $474,783
Playable Days 243 228 15
Revenue Per Playable Day $10,904 $9,539 $10,222
Decrease in Green Fee -Weather $153,325
Unexplained $321,458
15 Kev Management Reports
Customer Distribution
Customer Demographics
Customer Retention
Customer Spending By Class
Customer Spending By Individual
Zip Code Analysis
Merchandise Sales By Vendor
Reservations By Booking Method
Reservations By Day Of Week
Revenue Benchmarks
Revenue Per Available Tee Time
Revenue Per Department
Revenue Per Hour
Round Per Revenue Margins
Utilization
Report Available
Yes No /
Yes No /
Yes No /
Yes No /
Yes No /
Yes No /
Report Available
Yes No /
Yes No /
Yes No /
Yes No /
Yes No /
Yes No /
Yes No /
Yes No /
Yes No /
Competitive Golf Marketplace
FY09 Actual
Facility Revenues: average per 18-holes
Earnings Before Interest Taxes
Depreciation Amortization
EBITDA as a % of Gross
CityofH Municipal
Virginia
Beach
$727,397 $1,133,333
$3,583: $206,000
0.50% 18.17%
$625'49 Million + Q'/S Debt
Course Infrastructure
Equipment
Red Wing Lake Clubhouse
Sn,ooo,ooo
549,500
2,000,000
$6,549,500
„may ~a~ ~ ~N~~.
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Survey Response: 648 responses
Survey Completion: 83.5%
Who Is Your Customer?
Gender Demographics
Male 77% 55% 140
Female 23% 45% 51
Household Income Demographics
- 34,999 5% 5% 90
5,000 - 49,999 10% 10% 96
0,000 - 74,999 20% 25% 79
5,000 - 99,999 22% 35% 63
100,000 - $249,999 41% 23% 176
250,000 or more 3% 2% 170
Age Demographics
Junior (up to age 17) 0% 24% 1
Student (18-23) 1% 8% 14
Young Adult (24-34) 8% 15% 51
Adult (35-59) 55% 35% 157
Senior (60 and older) 36% 18% 200
Race/Ethnicity
hite, Non-Hispanic 92% 69% 133
frican-American 3% 12% 26
Hispanic 1% 13% 11
Sian or Pacific Islander 2% 4% 51
ther 2% 3% 62
Affordability
Availability
Convenience
Price
Subsidy
Conditions
Pace of Play
Prices (VA rate)
Prices -Lower Red Wing
On course services
So, what does it all mean'?
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Cultural Factors
Affordable
Sustainable
Flexibility of Performance Targets
Freedom of Business with Governance
Stakeholders
The Great Challenge of Management:
Conflicting Expectations with Limited Resources
Value Created
Golfer/Taxpayer
City Council
(Governance)
Expectations
Management
Expectations
Recommendations
Three Golf Courses
Expenditures over Revenues
Annual Income Rental Income
Ca pita I Investment by City
General Fund Subsidy for Loan
Amortization
Capital Investment in City's
Assets by Private Management
Financial Return (After 10
Years)
Status Quo Private Contract Management
($500,000) $0
1,150,000
(3,000,000) 0
(875,000) (875,000)
$3,000,000
($4,375,000) $3,275,000
Strategic 12/31/2010 Privatize Bow Creek, Kempsville, Red Wing (all aspects )
12/31/2011 Privatize 4 Courses: 10 Year Lease -Capital Improvements
7/1/2010 Committee appointed for resolution of Kempsville Greens
Tactical 7/1/2010 Technology integrated
7/1/2010 Accounting revised consistent with golf standards
7/1/2010 Golf Datatech and PGA Performance Trak benchmarking
7/1/2010 Electronic marketing
12/31/2014 Capital Improvement: Red Wing Clubhouse
7/1/2010 Consolidate Golf Administration and Maintenance
Operational 7/1/2010 Create customer database
7/1/2010 Dynamic Pricing
7/1/2010 Online tee times