RubinBrown Country Club Stats 2011

Clubs continue to aggressively battle to increase membership at all levels and increase utilization of clubs in all areas by the members and guests. Dues rates increased by an average of 1.6 percent and were often accompanied by an operating assessment to fund deficits incurred during the past year. approximately 3% due to poor weather conditions and a decline in special event activity, with the annual average number of rounds per 18-hole equivalents decreasing from 16,400 as reported last year to approximately 15,900 for the most recent period. • Average golf course maintenance expenses remained comparable to the previous year. The average golf course maintenance costs on a per hole basis rose from $49,300 to approximately $49,600. Golf Operations • Total rounds of golf declined by Food and Beverage Operations • Clubs experienced an increase in food and beverage revenues of nearly 6% as compared to the previous year, with increased banquet/event activity accounting for the better part of that increase. – The uptick in banquet/event activity improved the average food profit margin to 58.5%. Profit margins for beverages increased approximately 3/4ths of a percentage point to 66.4%. • Increasing food and beverage revenues drove the total food and beverage labor and fringe benefits as a percentage of total food and beverage revenues downward to an average of 69.3% from the prior year of approximately 75%. Pro Shop Operations • Gross profit margins on merchandise increased nearly one percentage point from the previous year to an average of 17.1%.

• Clubs reported an average net loss (after all direct costs and labor) from food and beverage operations of approximately $73,000 for years ending between September 2010 and March 2011. – This average loss decreased approximately 56% over the prior reporting periods. In order for the club marketplace to rebound, substantial help from the economy and continued focus by club management and boards is needed in the following areas: • Actively and continuously rebuilding membership at all levels • Building a family atmosphere for the next generation • Increasing membership utilization of services in all areas • Aggressively controlling costs and expenses • Managing cash flow for debt service, capital improvements and operations • Retaining quality employees and providing excellent service • Complying with increasingly complex government and tax regulations Thanks to the many area club controllers and general managers who participated in our annual survey. RubinBrown advisors encourage club managers, controllers, board members and others to use these statistics as one of many tools in evaluating their club’s operations. Please keep in mind the wide range in size and diversity in club operations throughout the St. Louis metropolitan area when comparing your financial and operating results to averages contained herein.

Jim Mather, CPA Partner Hospitality & Gaming Services Group

Jeff Sackman, CPA Manager Hospitality & Gaming Services Group

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