75th Annual Stockholders’ Meeting March 28, 2020 Welcome Stockholders
ORDER OF BUSINESS • • • • • • • • •
Introduction of Board of Directors Roll Call of Directors by Secretary Proof of Notice of Meeting Election of Directors Minutes of 2019 Shareholders’ Meeting Combined President’s & Treasurer’s Report Results of Election New Business and Q&A Adjournment
ROLL CALL OF DIRECTORS Jay Bradley– Golf (2017-2019) President (2019-2020) Paul Brody - Vice President (2017-2020) Robert Taylor– Secretary (2018-2021) Brian Kay - Treasurer (2019-2022) Cay Franck – House (2019-2022) Brianna Badalamenti – Social (2017-2019) Angie Cusack – Acting Social (2019-2020) • Scott Ives – Golf (2019-2022) • John Lee – Pool & Paddle (2018-2021) • Michael Sullivan – House (2018-2019) Buildings & Grounds (2019-2021) • • • • • •
PRESIDENT’S & TREASURER’S REPORT
OVERVIEW • GM Search Update • Overall Financial Performance Financials • Profit & Loss • Balance Sheet • Collections • 2019 Overview • Business Segment Review
PROFIT & LOSS - SUMMARY
PROFIT (LOSS)/NET INCOME 2019
2018
2017
2016
Total Revenue
6,486,880 6,421,669 6,363,372 6,458,378
Total Expenses
6,721,129 6,654,879 6,700,746 6,478,514
Total CGS Total Payroll Other Departmental Exp
(1,077,426) (1,131,592) (1,164,720) (1,158,738) (3,095,487) (3,051,402) (2,914,497) (2,895,366)
Depreciation/Taxes/ Fixed Net Income Net Income (before Depreciation)
(1,742,474) (1,641,627) (1,752,874) (1,648,860) (805,742)
(830,258)
(868,144)
(234,249) (233,210) (337,374) 157,797
189,579
111,850
(775,550) (20,136) 351,411
REVENUE / EXPENSES 6,800,000
$6,486,880 $6,721,129
$6,421,669 $6,654,879
2019
2018
$6,363,372 $6,700,746
$6,458,378 $6,478,514
6,700,000 6,600,000 6,500,000 6,400,000 6,300,000 6,200,000 6,100,000
Total Revenue
2017 Total Expenses
2016
BALANCE SHEET BALANCE SHEET
ASSETS & LIABILITIES Assets
2019
2018
2017
2016
$689,581
$655,025
$332,658
$380,703
Property & Equipment
$4,162,963
$4,280,183
$4,284,001
$4,383,667
Total Assets
$5,508,583
$5,662,670
$5,184,290
$5,333,331
Cash
Liabilities & Stockholder Equity
2019
2018
2017
2016
Liabilities
$967,478
$1,162,674
$773,975
$1,624,579
Long Term Debt
$546,723
$683,639
$703,389
$871,278
$3,706,926
$3,708,752
Stockholder Equity
$3,994,382 $3,816,357
ASSETS: CASH 689,581 700,000
655,025
600,000 380,703
500,000 332,658
400,000 300,000 200,000 100,000 -
2019
2018
2017
2016
LIABILITIES & STOCKHOLDERS EQUITY
4,000,000
3,994,382
3,816,357
3,706,926
3,708,752
3,500,000 3,000,000 2,500,000 2,000,000 1,500,000
1,624,579 967,478
1,162,674 773,975
1,000,000 500,000
546,723
683,639
703,389
2019
2018
2017
871,278
-
Total Liabilities
Long Term Debt
2016
Stockholder Equity
2019 OPERATING RESULTS Total Revenue Cost of Sales Payroll & Benefits Other Expenses Fixed Charges/Taxes Depreciation
$ 6,486,880 ($ 1,077,426) ($ 3,095,487) ($ 1,742,474) ($ 424,145) ($ 381,597)
Net Income/(Loss)
($
234,249)
LOC & LONG TERM DEBT Line of Credit $750,000 maximum Balance on 12/31/19: $0 Balance on 3/23/20: $400,000 _________________________________________________________ Mortgage Term: Due 11/01/23 Rate: 4.50% Original Balance: $ 1,600,000 Balance on 12/31/19: $ 546,723 2018 Debt Repayment: $ 178,895 __________________________________________________________
MEMBER RECEIVABLES
COLLECTIONS Delinquent Account Process: Member accounts are payable upon receipt of invoice (Article 1, Section 3(h) of By-Laws)
Any account past due 30 days OR after the end month the invoice was issued shall be subject to a late payment charge of $25 and interest at 1-1/2% per month (Article 1, Section 6 of By-Laws). A member is considered “Not In Good Standing” and their charge account privileges and participation in all club activities are suspended if any charges on their account remain past due more than 60 days beyond the statement date (Article 1, Section 3(h) of By-laws). A member account is referred to the club attorneys and may be reported to the credit bureaus if any charges on their account remain past due more than 90 days beyond the statement date.
COLLECTIONS
1st Notice of Delinquency Letter – sent when a members account goes over 30 days past due. 2nd Notice of Delinquency Letter – sent when a member’s account goes over 60 days past due. 3rd / Final Notice of Delinquency Letter – sent when a member’s account goes over 90 days past due. Referred to Club attorneys for collection when a member’s account goes beyond 90 days past due, without any payment or payment plan established. Attorney sends a Dunning Letter to the member as first notice of legal action to collect the debt. Board determines based upon the amount outstanding and the circumstances at hand (e.g., liens on property, judgments, bankruptcy, other assets) if they wish to pursue the debt by filing a Summons and Complaint.
CAP-EX
2019 CAP-EX Capital Projects Completed in 2019 Total Clubhouse Improvements POS Club Essential 10-inch screens were replaced New Exit Signs (Fire Inspection Mandated) Golf Improvements Electric panel for Golf carts was upgraded to ensure all 30 carts can be charged at all times
$12K
$52K
HVAC units in the pro shop were replaced #14 tee box synthetic grass installed Pool Improvements Replacement of pumps, motors & filters 5-year bonding certification for pool Subtotal
$16K $80K
2019 CAP-EX Capital Projects Completed in 2019 Total Buildings & Grounds Cann’s Lake (Ronald Ct.) and #11 Pond hydro-racking Tiki Hut Other Miscellanous
$35K
On-Going Annual Equipment Leasing Expenses Machinery used at RGCC
$44K
Long Range Master Plan JGA Architects focus group scope, budget preparation & artistic renderings
TOTAL CAP-EX
$50K
$209K
2020 CAP-EX Capital Projects Approved for 2020:
Crystal Spring Lake Dam – Gate Valve Replacement (November)
Ramsey Township is performing this work. RGCC is responsible for 33.33% of the cost (approx. $50K)
Long-Range Master Plan
We will now discuss what has happened since RGCC membership approved the Master Plan and the path ahead for 2020 & 2021
MASTER PLAN Master Plan progress report
The recent COVID-19 pandemic was certainly something nobody could have foreseen The Board of Director’s will continue to monitor the macro/micro economic situation and will continue to review before undertaking any large expenditures That said, we wish to update Membership on what has been completed since the November vote and what the process will be if macro/micro economic conditions do indeed return to normal within short order
MASTER PLAN A Buildings & Grounds Committee(B&G) was formed to oversee the Master Plan process
The entire RGCC membership was invited to submit nominations for those people who possess relevant experience and could contribute value to the Committee Qualified nominees met with the B&G nominating committee who then selected a well-diversified group of committee members who have experience in every area that is critical to this Master Plan Selections were made and this new Committee consists of eight (8) RGCC Members These members have extensive experience in commercial construction oversight, construction bidding & finance, architectural & interior design, commercial real estate management & operations, etc. The Committee’s chairperson is the Board of Director’s Building & Grounds Director
MASTER PLAN B & G Committee (Cont’d)
All Committee members are volunteers who are devoting a large amount of their personal time to fulfill the Master Plan This Committee has and will continue to meet with third-party firms, make recommendations to the Board of Directors and thereafter, oversee the implementation of each retained company’s work This Committee meets regularly to ensure that the Master Plan process moves forward as quickly & efficiently as possible
MASTER PLAN The B&G Committee have accomplished the following: We determined the first phase in the process was to retain both a Civil Engineering firm and Land-Use Attorney
Civil Engineers perform surveys and calculations which are required by governmental agencies before they will approve/deny proposed renovations
These surveys include water drainage, topography maps, traffic surveys, etc.
Land-Use Attorney’s initially conduct “behind-the-scenes” conversations with the town’s Buildings Department before the plans are presented to the Council
This is done so applicants may obtain feedback to any possible objections which the town may have before the project is presented in a public form We will then address any objections that are raised, The attorney will review again with the town’s Buildings Department and receive their “verbal approval” that they would recommend the Town Council approve the plans when they are formally presented in the required public forum
MASTER PLAN
The B&G Committee recommended to the Board of Directors (BOD) that Langan Engineering (Civil Engineer) and Wells Jaworski (Land-Use attorney) be retained
Langan has completed the required surveys for the pool area JGA Architects was hired to create LIMITED drawings of the pool area which are required before a meeting can be arranged with the New Jersey Department of Environmental Protection (NJDEP)
The BOD approved and these firms were retained in February 2020
We will discuss the larger Master Plan Architectural services on the next slide
Langan will submit all documents to NJDEP this week and request a meeting for review
NJDEP is still conducting meetings (via phone/Zoom conferencing) and we expect a meeting date some time between mid-to-late April
MASTER PLAN The B&G Committee has sent out Requests for Proposal (RFP) to three (3) pre-qualified architectural firms. The bidders include:
JDB/JGA
This is the original architect firm that assisted RGCC with the focus groups, artistic renderings and Master Plan budget They have worked with Edgewood Country Club, Glen Ridge CC, Echo Lake CC, etc.
Rogers McCagg
This firm has worked with Montammy Golf Club, Century CC and Engineers Country Club, etc.
H. Chambers Company
This firm has worked with Alpine Country Club, Navesink CC and Plainfield Country Club, etc.
The proposals are due March 27th
MASTER PLAN PHASING
Pool Renovations (Fall 2020)
We are currently working on plans and we hope to begin the work immediately after the pool closes this season. We expect to complete all work before the Summer 2021 season
As mentioned before, Langan will submit the required documents to New Jersey Department of Environmental Protection (NJDEP) and requested a date to meet and review the proposed work. We expect this meeting will happen mid-to-late April
Note: The current pool is located within a 100-year Flood Zone. The next slide will show you a map indicating these areas
At this time, Langan believes we should not receive many, if any, objections from the NJDEP since we are proposing the removal of hard structures (i.e. the current snack stand) and replacing these areas with supports for the elevated pool decking Thereby, we have decreased any impact on rising water levels and actually have improved the natural flow of the water in a flood scenario with this removal
MASTER PLAN
MASTER PLAN
Clubhouse Renovations (Fall 2021)
Due to Catering commitments which have already been booked as far out as Spring 2021, we have decided to perform the Clubhouse renovations in Fall 2021 We did not want to close the Clubhouse during the Summer of 2021 since this is the time when our membership uses the facility the most We expect the Clubhouse will be closed for approximately 12 months after renovations begin However, we hope to phase this work so that at least some of the Clubhouse will be completed and returned to use within 68 months after renovations begin We will know better once construction plans are completed, bids are received from builders and discussions with each take place to see what phasing options/timing are possible with minimal cost
MASTER PLAN
Pickle/Paddle & Golf Shop Renovations (Following Clubhouse alterations)
These renovations are not extensive Simply, we will remove the golf bag storage space and relocate this storage to the nearby maintenance shed The pickle/paddle hut and golf shop will be expanded within the former bag storage space to provider better accommodations for the pickle/paddle members and larger golf pro shop for additional apparel and golf products In addition, the adjacent patio will be renovated
MASTER PLAN The Board of Directors will continue to keep our Shareholders informed throughout this process.
We have been and will always be transparent with our community
You will receive periodic Master Plan updates throughout this process
We are working hard to complete these renovations in a timely manner
However, if economic conditions do not return to normal following the COVID-19 pandemic, we may choose to hold off on any large expenditures until the marketplace stabilizes
BUSINESS SEGMENT REVIEW
BUSINESS SEGMENTS Revenue Grille Room $1,613,580 25%
$1,651,463 25%
104,075 , 2% 53,600 , 1%
Catering Golf Paddle
$1,639,274 25%
$1,429,888 22%
Pool Dues and Other
BUSINESS SEGMENTS* Grill Room Revenue
$1,651,463
Cost of Sales ($587,076) Gross Profit Payroll Expenses
$1,064,388
Pool
Dues and Other
Totals
$1,429,888 $1,639,274 $53,600
$104,075
$1,613,580
$6,491,880
($465,207)
($18,864)
--
($1,071,146)
$85,211
$1,613,580
$5,420,735
($19,387)
($831,069)
($3,102,070)
($267,834) ($690,574) ($22,426) ($107,487) ($621,485)
($2,151,585)
Catering
$964,681
Golf
--
($441,419)
Contribution Margin *
($433,596)
$286,189
--
$1,639,274 $53,600
($1,056,565) ($410,659) ($784,390)
Other Dept Expenses
Paddle
$164,309
*Excludes Depreciation and Tax
--
$31,174
($41,662)
$160,669
$167,083
HOUSE
CATERING •
2019 revenue of $1.4M o
•
Event pricing increases went into effect at the end of 2018 o
•
Revenue stable (±5%) over last 5 years
Decreased number of events
2020 uncertain due to event cancellations o
Expectation of rescheduling at RGCC
CATERING REVENUE $1,495,158 $1,479,889
$1,500,000 $1,455,057
$1,450,000
$1,429,888
$1,400,000
$1,350,000
2019
2018
2017
2016
LAKESIDE GRILLE & BAR • •
2019 revenue stable at $1.65M Listened to and reacted to members o o o
•
Reinstituted Restaurant Committee Conducted member survey Introduced new menu
2020 plan, once we are reopened o o o
Seasonal menus Wine pairing dinners International themed weeks
GRILL & BAR REVENUE $1,750,000
$1,700,000
$1,721,755 $1,663,248
$1,651,463 $1,650,557
$1,650,000
$1,600,000
$1,550,000
$1,500,000
2019
2018
2017
2016
HOUSE OPERATIONS •
2019 revenue stable at $3.1M o o
• •
Half of annual RGCC revenue 1-4% variability over last five years
Negative impact of COVID-19 uncertain Expansion and extensive upgrades included in Master Plan
TOTAL REVENUE $3,500,000
$3.1M
$3.2M
$3.2M
$3.1M
$3.0M
2019
2018
2017
2016
2015
$3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $-
Grille & Bar Revenue
Catering Revenue
Total Food & Beverage
GOLF
GOLF • Principal recreation activity and club asset • Symbolic of health of club • Highly recommend coming out for Championship Day Sunday 8/30 • 25% of Club revenue • Overall course conditions are excellent • Resident/Associate mix remains healthy: • Currently have 100 Associates signed up and always see that number increase as the season progresses • We have a referral program for Members who refer a new Associate Member
GOLF • • • • •
Strong Junior Program Strong Ladies Program New 2020 Golf World Handicap System New scorecards and golf manual Golf Course Winter Projects:
• Trees throughout, improve sight lines and playability, unhealthy trees removed • #2 redesign of path area and berm removals • Drainage improvements on #4 & #5 • New #4 tee area • Yardage plates on all par threes
JUNIOR GOLF
DRAINAGE & TREE WORK
GOLF PARTICIPATION 250
209
218
198
198
200 150
111
118
126
126
100 50 0
2019
2018 Resident
2017 Associate
2016
POOL & PADDLE
POOL & BEACH • Weather played a key role in reduced F&B revenues at the Pool Café • Pool deck has been resurfaced • Friday Tiki bar with our new Beach Shack and alternating Adult Only/Family Friendly themed nights continue to be a success • Kayak & Boat Program remains successful • Swim team had another strong year
POOL PARTICIPATION 140 140 120
119
115 96
100 80 60 40
26
23
25
18
20 0
2019
2018 Resident
2017 House
2016
PADDLE/PICKLE • High social element: weekly social men's/women’s groups, socials & tournaments • Hosted some competitive/national-type events • Courts have been refurbished and repairs made • Ramsey 1 & Ramsey 3 Men’s Teams both made the playoffs – they were scheduled to play 3/22 but have been postponed till October • Pickleball had a successful complimentary launch season with 40 members experiencing the sport for the first time. • We are excited to announce we will be offering another complimentary Pickleball season for 2020!
PADDLE PARTICIPATION 70
54
60 50
63
47
43
40 30 20
21 11
17
19 16
12
24 11
10 0
2019
2018 Resident
2017 Associate
2016 House
SOCIAL
SOCIAL • The social scene offers a nice variety for kids families and adults. • Holidays such as Easter, Mother’s Day and Thanksgiving continue to sell out every year. • Wine Dinner Series popular as ever in its 9th year. • Family events like the Christmas Holiday Party, Children’s Spring Party and the Halloween Party are fun welcomed traditions. • The Annual Sounds of Summer was another resounding success in 2019 with more than 575 member families & friends! • Our new Broadway Night and Family Oktoberfest events will become a new staple at our Club.
RESULTS OF ELECTION
Q&A
ADJOURNMENT Thank you!