2022 Shareholders Presentation

77th Annual Stockholders’ Meeting March 19, 2022 Welcome Stockholders 1

ORDER OF BUSINESS • • • • • • • • •

Introduction of Board of Directors Roll Call of Directors by Secretary Proof of Notice of Meeting Election of Directors Minutes of 2021 Shareholders’ Meeting Combined President’s & Treasurer’s Report Results of Election New Business and Q&A Adjournment 2

ROLL CALL OF DIRECTORS • Tim Finnegan– Vice President (2020-2021) President (20212023) • Andy Klein - Vice President (2021-2024) • Richard Brown– Secretary (2020-2023) • Brian Kay - Treasurer (2019-2022) • Cay Franck – House (2019-2022) • Angie Cusack – Social (2020-2023) • Scott Ives – Golf (2019-2022) • Victor Ortiz– Pool & Paddle (2021-2024) • Nate Goldman –Buildings & Grounds (2021-2024)

3

PRESIDENT’S & TREASURER’S REPORT

4

OVERVIEW • Overall Financial Performance Financials • Profit & Loss • Balance Sheet

• Collections • 2021 Overview • Business Segment Review

5

PROFIT & LOSS - SUMMARY

6

2021 OPERATING RESULTS Total Revenue Cost of Sales Payroll & Benefits Other Expenses Fixed Charges/Taxes Net Operating Income Depreciation & Other Capital Assessments Net Income

$ 6,676,349 ($1,021,249) ($3,265,963) ($1,686,988) ($466,914) $235,235 ($370,436) $960,362 $825,161 7

COMPARISON OF FINANCIAL PERFORMANCE Revenue

2021

2020

2019

2018

Membership Dues

$1,480,791

$1,438,866

$1,422,655

$1,349,881

Golf Dues

$1,706,714

$1,239,489

$1,294,758

$1,237,098

$520,205

$470,125

$266,200

$285,250

Restaurant Revenue

$2,531,101

$1,363,822

$3,045,050

$3,142,166

Other Revenue/Assessments

$1,397,900

$1,298,926

$870,491

$749,915

Total Revenue

$7,636,711

$5,811,228

$6,899,154

$6,764,310

32%

(16%)

2.0%

1.0%

Cost Of Sales- F&B

$1,021,249

$609,567

$1,077,426

$1,131,592

Total Payroll

$3,265,963

$2,752,049

$3,095,487

$3,051,402

Property Taxes

$290,277

$289,936

$278,582

$272,228

Fixed Charges

$176,637

$145,683

$135,114

$135,241

Depreciation

$454,999

$398,053

$381,597

$442,948

Other Expenses

$1,602,425

$1,666,715

$1,752,923

$1,621,468

Total Expenses

$6,811,550

$5,862,003

$6,721,129

$6,654,879

16%

(13%)

1.0%

(1.0%)

$825,161

($50,783)

$178,025

$109,431

Initiation Fees

Variance from prior year

Expenses

Variance from prior year

Net Income

8

REVENUE / EXPENSES $7,636,711 $6,811,550

$5,811,228 $5,862,003

$6,899,154 $6,721,129

$6,764,310 $6,654,879

8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2021 2020 2019 Total Revenue Total Expenses

2018

9

BALANCE SHEET BALANCE SHEET

10

ASSETS Current Assets

2021

2020

2019

2018

$2,100,657

$1,842,908

$689,581

$655,025

Construction Loan Escrow

1,620,054

-

-

-

Accounts Receivable (Net)

525,969

394,752

472,908

474,585

F&B Inventory

50,204

59,665

87,815

88,977

Prepaid Expenses

97,523

57,864

102,678

163,900

$4,394,407

$2,355,189

$1,352,982

$1,382,487

Land & Lease Improvement

6,426,612

5,531,739

5,442,489

5,340,529

Building & Improvements

5,245,538

5,231,730

5,200,359

5,092,066

Furniture, Fixtures, & Equip.

3,183,098

3,064,561

2,980,109

2,925,985

Construction in progress

1,526,543

1,129,554

--

--

$16,381,791

$14,957,584

$13,622,957

$13,358,580

Less Accum. Depreciation

9,699,353

9,858,046

9,459,994

9,078,397

Net Property & Equipment

6,682,438

5,099,538

4,162,963

4,280,183

$11,076,845

$7,454,727

$5,515,945

$5,662,670

Cash

Total Current&Assets Property Equipment

Total Property & Equipment

Total Assets

11

LIABILTIES & STOCKHOLDERS’ EQUITY Current Liabilities

2021

2020

2019

2018

$193,804 515,077 726,573 90,963 1,160,617 302,951

$500,000 148,160 115,389 612,782 87,763 606,445 194,128

$-164,436 85,268 456,239 85,366 -176,169

$-218,895 178,195 506,507 84,642 -$174,435

$2,989,985

$2,264,667

$967,478

$1,162,674

141,150

148,169

--

--

3,176,950

998,221

546,723

683,639

--

100,071

7,362

--

Total Liabilities

$6,308,085

$3,511,128

$1,521,563

$1,846,313

Stockholders’ Equity

4,768,760

3,943,599

3,994,382

3,816,357

$7,454,727 $5,515,945

$5,662,670

Line of Credit Accounts Payable Accrued Liabilities & Taxes Payable Unearned Dues Deposits For Functions Paycheck Protection Program Note Current Maturities of Long-term Debt Total Current Liabilities

Long-Term Liabilities Disaster Loan, Net of Current Maturities Long-term Debt, Net of Current Maturities Interest Rate Swap Valuation

Total Liabilities & S.E

$11,076,845

12

ASSETS: CASH 2,500,000

2,100,657 1,842,908

2,000,000 1,500,000

689,581

1,000,000

655,025

500,000 0 2021

2020

2019

2018 13

LIABILITIES & STOCKHOLDERS’ EQUITY 7,000,000 6,308,085 6,000,000 5,000,000

4,768,760 3,943,599

3,511,128

4,000,000 3,000,000

3,994,382

3,816,357

3,318,100

2,000,000

967,478

1,162,674

1,246,461

1,000,000 0

2021 Total Liabilities

2020 Long Term Debt

554,085

683,639

2019

2018

Stockholders' Equity 14

L.O.C. & LONG-TERM DEBT ❑

Mortgage

❑

Term: Due 11/01/2023 Rate: 4.50% Original Balance: $ 1,600,000 Balance on 12/31/21: $ 263,880 2021 Debt Repayment: $ 128,800 $3 Million-Construction Note

❑ ❑

❑

Term: Rate: Loan Proceeds Received Loan Held in Escrow Paycheck Protection Program Note Balance on 12/31/2021 Economic Injury Disaster Loan Term: Rate: Balance on 12/31/2021

Due 01/01/2031 3.71% $1,379,946 $1,620,054

Line of Credit

$750,000 maximum Balance on 12/31/21: $ 0

$1,160,617 Due 07/01/2050 2.75% $144,783

15

MEMBER RECEIVABLES

16

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.

17

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.

18

CAP-EX

19

2021 CAP-EX

Capital Projects Completed in 2021 ❑

Crystal Lake Terrace Area

❑

Clubhouse ❖ Ipads, Computers, Patio Tent

❑

Golf Improvements & Equipment ❖ Hitting cages

❑

❖

7 & 9 Tee Improvements

❖

Greens Mowers & Aerator

❖

Golf Cart Building Electrical Repair

$92K $28K

$190K

Lake/ Pool ❖ Ronald Court Fountain Installation, ❖ Fountain Upgrades & Repairs ❖ Pond Dredging

$50K

Total

$360K

20

2021 MASTER PLAN EXPENDITURES ❑

$106K

Clubhouse ❖ Architects, Engineering & Consultants ❖ Wifi Installation (Phase 1)

❑

❑

$1,075K

Pool ❖ Architects, Engineering & Consultants ❖

Construction Contractor

❖

Legal, Insurance, Bank Fees

❖

Permits & Escrow

Golf Course ❖ Irrigation System Completion ❖ Golf Course Restroom Completion & Installation

$536K

Total

$1,717K

21

MASTER PLAN OVERVIEW Project Through 12/31/2021 Master Plan Assessment

$1,754,550

Loan Proceeds

$1,379,946

Total Funding Drawn

$3,134,496

Main Building

$318,282

Pool Area

$1,200,358

Golf Course Irrigation

$1,102,632

Golf Course Restrooms

Total Improvements

$212,585

$2,833,857

22

MASTER PLAN •

Master Plan Status • • • •

Golf Course Irrigation - Complete Golf Course Bathroom – Complete Pool Renovation – Completing Soon (Mid June 2022) Clubhouse Renovation – Planned Start 01/2024 •

Pro Shop and Paddle Renovation

23

MASTER PLAN •

Master Plan Goals (POOL and CLUBHOUSE) •

Enhance Member Experience • • • •

•

Bring Catering Space to Current Market Demands • • •

•

Outdoor Dining Enhanced Kitchen & Food Prep Area Updated Aesthetic Larger Bar Space Dedicated Pre-function (Cocktail Hour) Space Better Layout for Capacity Enhanced Kitchen & Food Prep Area

Maintain Financing Budget and Assessment Commitment

24

MASTER PLAN •

Construction Mentality •

Quality, Time & Cost • •

•

Deliberate Design Development • • •

•

Only Get Two We opted for the right quality & the right cost

Did we follow the goals?

Does the material make sense?

What future maintenance looks like?

Holistic Approach •

Does a pinch or a tuck here lead to a missed opportunity down the line?

25

MASTER PLAN

26

MASTER PLAN •

Pool Enhancements and Constraints •

During Design, opportunities and needs that we were able to address: •

• •

•

•

Code requirements to the water circulation system for the Pool Replacement of the Retaining Wall Ability to house all Pool Equipment in a Basement and add heating system Enhanced Kitchen Capacity (this will be our "Restaurant" during construction after all) Added and Upgraded Furniture

27

MASTER PLAN •

Pool Construction Update •

Completed: • • • • •

•

In Progress: • • • •

•

Foundations and Inground Concrete New Pool Plumbing and Electrical Run Wading Pool Plumbing and Poured Building Framing Roof Framing Roofing and Sheathing Mechanical and Electrical Roughing Deck Framing Pool Mechanical Room Installations

Up Coming: • •

Retaining Wall Interior Finishes

28

MASTER PLAN •

Clubhouse •

Program Goals •

Envelope • •

•

Lakeside Grill •

• •

•

Dedicated Member Outdoor Dining Area Expand and Upgrade Bar Area Update Kitchen Equipment and Layout

Catering Facility • • • • •

•

Repoint and Roofing Upgrades HVAC Upgrades

Expand Ballroom Revise Bride's Room, Bar and Storage for Ballroom Additional Ballroom Bathrooms Upgrade Locker Room and Existing Bathrooms Update Kitchen Equipment and Layout

The Abbey • • •

Relocate Bathroom / Stair for Open Layout Add Vestibule Renovation of Finishes and Bradford Room

29

MASTER PLAN OUTSIDE OF BUILDING VIEW

30

MASTER PLAN MAIN FLOOR VIEW – GRILLE/BAR/ABBEY

31

MASTER PLAN BAR CONCEPT DRAWING

32

MASTER PLAN BANQUET VIEW – BALLROOM/LOCKER ROOMS

33

OTHER B&G UPDATES •

Lake Program •

•

Plantings •

•

Continual review of lakes and systematic cleanup Working with our greenskeeper, maintenance staff and outside contractors in the identification and delineation of responsibilities for these areas

Tree Work •

•

90% of our tree work comes in connection with the Golf Course Efforts to remove dead and/or decaying materials to allow for more healthy growth of the live ones

34

BUSINESS SEGMENT REVIEW

35

BUSINESS SEGMENTS Revenue Grille Room

87,730 , 1%

$1,782,090 27%

$1,418,371 21% $1,119,446 17%

39,259 >1%

$2,229,453 34%

Catering Golf Paddle Pool Dues and Other 36

BUSINESS SEGMENTS* Grill Room

Catering

Golf

Paddle

Pool

Dues and Other

Totals

Revenue

$1,418,371

$1,119,446

$2,229,453

$39,259

$87,730

$1,782,090

$6,676,349

Cost of Sales

($631,653)

($381,157)

--

--

($8,440)

--

($1,021,250)

Gross Profit

$786,718

$738,289

$2,229,453

$39,259

$79,290

$1,782,090

$5,655,099

Payroll Expenses

($1,081,929)

($254,204)

$(1,004,431)

--

($15,001)

($910,398)

($3,265,963)

Other Dept Expenses

($388,584)

($120,096)

($744,593)

($751,289)

($2,153,902)

Contribution Margin

($683,795)

$363,989

$480,429

$120,403

$235,234

($21,856) $(127,484)

$17,403

($63,195)

*Excludes Depreciation & Capital Assessments 37

HOUSE

38

FOOD, BEVERAGE & CATERING OVERVIEW 2019 Pre-COVID • •

Total F&B Revenue of $3.1M 291 Events

2020 COVID • •

Total F&B Revenue of $1.4M, 55% decrease 19 Events, 93% decrease

2021 Recovery • •

Total F&B Revenue of $2.5M, exceed goal by $450K 196 Events 39

CATERING 2021 • •

• •

Goal: Exceed $1M Q1-Q2 still COVID, first wedding not held until April June return to normal, 196 events Result: $1.1M!

2022 • • •

Goal: $1.2M 2 weddings so far, first wedding in February expecting 210-225 events 40

CATERING REVENUE $1,429,888 $1,500,000 $1,450,000 $1,400,000 $1,350,000 $1,300,000 $1,250,000 $1,200,000 $1,150,000 $1,100,000 $1,050,000 $1,000,000 $950,000 $900,000 $850,000 $800,000 $750,000 $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0

$1,495,158

$1,119,446

$279,451

2021

2020

2019

2018

41

LAKESIDE GRILLE & BAR 2021 • •

• •

Goal: $1.1M Q1-Q2 still COVID June return to normal Result: $1.4M, 27% increase over 2020

2022 • • •

Goal: $1.6M Busy with Abbey Patio opening April Profitability challenges remain 42

GRILLE & BAR REVENUE $1,651,463

$1,750,000

$1,650,557

$1,418,371

$1,500,000 $1,087,672

$1,250,000 $1,000,000 $750,000 $500,000 $250,000

$0

2021

2020

2019

2018 43

TOTAL REVENUE 3.5

$3.1 3

$3.1

2.5

2.5 2 1.5

$1.7

$1.4

1.4 1.1

$1.7 $1.4

$1.5

$1.1

1 0.5

$0.3

0 2021

2020 Grille & Bar

2019 Catering

2018

Total F&B

Values in $ millions 44

OBSERVATIONS Survived COVID! • • • •

Took care of our members and staff To-go orders still at 25% of revenue Outside dining – Crystal Spring Terrace, Abbey Patio 2022 Total revenue goal: $2.8M

Improvements • • •

Promoted Brian Fazekas, hired his assistant, Michael Wannamaker.

Mobile (iPad) POS system for better service and more efficient operations Expanding outdoor dining – pool, CST, Abbey Patio

Safe to come back!

• •

Family/Holiday Meals moving inside Make reservations!

45

GOLF

46

GOLF •

Resident/Associate mix remains healthy:

•

Currently have 150 Associates signed up. We have a referral program for Members who refer a new Associate Member New Pro Shop staff received rave reviews across the board, and we are very happy to announce that all Pro Shop staff are expected to return for the 2022 golf season •

•

New hitting and warm up bays were a big success in their first year and we thank the board for their support on this successful project

•

First full season using our new irrigation system and Jason and his team are giving the new system 5 stars for the way it is treating our golf course. It has been a tremendous improvement over the old system and as a bonus the new system used almost 1.5 million gallons less than the old system for the golf season

•

New golf course bathroom was a tremendous improvement to our golf course amenities. The building was winterized last fall to shut down for the winter and Jason and his crew will be sure to get the bathroom ready for the spring season once freezing temperatures are not a concern. Again, we thank our Board and our membership for their support 47

GOLF •

Tree work continues throughout the golf course to prune and remove dangerous or damaged trees. Jason works in partnership with the Ramsey Shade Tree commission on all tree related projects

•

Drainage work is an ongoing project and this winter Jason and his team continue to work on poor draining areas and the replacement of old drainage piping that has failed or requires upgrading

•

New tee boxes have been built on tees 7 and 9 for Men and Ladies and the Ladies also have a new tee box on hole #4. We hope to have these new tee boxes open for play late spring

•

The Orange and Rockland project is just about completed •

For those of you that were not aware the utility removed the high voltage power lines from the telephone poles running from hole 7 through to hole 4 and the sub station. The power lines were buried under the cart paths on those holes. The existing telephone poles will unfortunately have to remain to carry the Fios and Cable wires, but the plan is for the pole heights to be reduced by about 8’ each. The utility worked with Jason and his staff to minimize the impact to the golf course during this work but of course there is collateral damage, so Jason and his staff are now faced with the repair to the golf course paths and damaged turf areas to get the golf course ready for the 2022 golf season 48

GOLF •

Our golf course maintenance equipment has been aged and antiquated, but we have purchased and leased a great deal of new golf equipment for Jason and his team to continue the tremendous improvement of our golf course and the golf course conditions.

•

We have also added 2 electric mowers to our equipment list in an effort to be a greener and quieter operation and again we thank the board for their support in the acquisition of these machines

•

We are very proud of the tee times alterations created last year to promote inclusion and we appreciate the help of our board and our legal counsel in setting that up. Those changes will continue this upcoming season

•

Senior Tees were added last year with Gold markers, and we are very happy to provide those tees for our Senior membership

•

The Board has approved replacing all the safety netting throughout the golf course by greens and tees 49

GOLF PARTICIPATION 242 250

199

200

150

218

209

136

150

111

119

100 50 0 2021

2020 Resident

2019

2018

Associate 50

POOL & PADDLE/PICKLE

51

POOL • We were able to have the pool open for member enjoyment all of 2021 • Swim Team returned to action with 50 members last season (2021) • Kayak & Boat Program remained successful • F&B Sales at the Pool Café were strong • Established formal Pool Committee of: Grace

Cedeno, Eva Farrar, Bob Feeney, Kathleen Gallagher, Chuck Graziano, Brian Nitzberg, Denise O'Dea, Barbara O'Donnell & Ben Roesemann

• New Pool complex grand opening this Summer 2022!

52

POOL PARTICIPATION 115

120 100

96 76

80 60

54 38

40

26

23

7

20

0 2021

2020 Resident

2019

2018

House 53

PADDLE • •

•

•

•

Overall membership has increased nearly 40% Fielded 5 league teams (4 Men's & 1 Women's); with our Men’s 3 team finishing as MIPL Runner-Up and Men’s 2 team reaching the playoff semi-finals Launched new Juniors Program with 18 kids (special thanks to Kevin Wurst & Mike Sullivan) Contracted new Club Pro (Krisi Behrens) who held numerous complimentary beginner clinics and worked with our league teams/private lessons Added court windscreens and completed paint projects (exterior bench/boards & interior hut) 54

PADDLE •

Held weekly Social nights for Men, Women & Mixed Doubles where every level of player is always warmly welcomed •

•

•

(thanks to the dedicated efforts of Jay Bradley, Joyce Chookazian & Tabitha Damsell)

Conducted Men's Club Member/Member tournament & orchestrated return of the Shamrock Mixed Doubles event Established formal Paddle Committee of: Jay Bradley, Bonnie Caliento, Lee Fassler, Kristin Graves, Pat Murphy, Kathleen Shevlin & Kevin Wurst

55

PICKLE • Contracted Club Pro (George Cheah) who held numerous complimentary beginner clinics/private lessons • Provided loaner equipment (paddles/balls) & court lining • 70 complimentary members in ‘21 • Nominal single/family registration offerings for ‘22 season

56

PADDLE PARTICIPATION 50 50 45

47

43

42

40 35

29

30

21

25 20

17

15

11

15

6

10

5

12

2

0 2021

2020 Resident

2019 Associate

2018 House 57

SOCIAL

58

SOCIAL • The social scene offers a nice variety for kids families and adults • The beginning of the year was challenging due to Covid • Spring allowed us to utilize our beautiful outdoor venues • Ladies Wine & Design event, Family Spring Painting Party & Movie Nights were a hit for all • Started the Summer off with Summer Fling and kept the good times rolling with Schools Out for Summer, Tiki Nights and a Mixology Night • Tequila and Wine Dinners continue to be poplar and sell out quickly • Family Portrait Day, Craft Beer Night and Jester Jim were a few fun events held in the Fall • The year ended with a battle of the brains at Trivia Night and a special visit from Santa at our Children’s Holiday Party and Light the Season event 59

UPCOMING SOCIAL EVENTS • Children’s Spring Party in April • Family Portrait Day in May and if successful again in September • Sounds of Summer will be making a return this Summer • We have BBQ’s, a Luau, Wine Dinners, a clambake, Movie Nights and much more to look forward to this year!

60

REAL ESTATE

61

RGCC HOME SALES – 2011-2021

RGCC Sales

40

Volume/$mm

35 30 25

• 33 sales in the Club in 2021 • Activity was identical to 2020

20 15 10

5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Kristin Graves, Broker/Owner, RE/MAX Properties 62

RGCC AVERAGE SALES PRICE – 2011-2021 $800,000 Avg List Price

$700,000

Avg Sold

$600,000 $500,000

• average sale price of $671,850

$400,000 $300,000 $200,000 $100,000 $2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Kristin Graves, Broker/Owner, RE/MAX Properties

63

RGCC 2022 TO DATE

2 active listings

6 under contract 3 sales

* Source: NJMLS 1/1/22-3/10/22

Kristin Graves, Broker/Owner, RE/MAX Properties

64

RESULTS OF ELECTION

65

Q&A 66

ADJOURNMENT Thank you!

67