78th Annual Stockholders’ Meeting March 25, 2023 Welcome Stockholders 1
Introduction of Board of Directors
Roll Call of Directors by Secretary
Proof of Notice of Meeting
Minutes of 2022 Shareholders’ Meeting
B.O.Ds’ Annual Review
Results of Election
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ORDER OF BUSINESS
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2
Q&A
Adjournment
ROLL CALL OF DIRECTORS
• Tim Finnegan – Vice President (2020-2021) President (20212023)
• Joel Goldberg – Vice President (2022-2025)
• Richard Brown – Secretary (2020-2023)
• Dan Burke - Treasurer (2022-2025)
• Andy Klein – Vice President (2021-2022) House (2022-2024)
• Angie Cusack – Social (2020-2023)
• Ryan Hollender – Golf (2022-2025)
• Victor Ortiz – Pool & Paddle (2021-2024)
• Nate Goldman – Buildings & Grounds (2021-2024)
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TREASURER’S REPORT
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Business Segment Review
• Overall Financial
• Profit & Loss • Balance Sheet • 2022 Overview •
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OVERVIEW
Performance Financials
PROFIT & LOSS - SUMMARY
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BUSINESS SEGMENTS*
*Excludes Depreciation & Capital Assessments
Totals Grille Room Catering Golf Paddle Pool Dues & Other Revenue $7,536,306 $1,649,615 $1,355,925 $2,539,845 $41,326 $15,016 $1,934,575 Cost of Sales (1,195,793) ($685,101) (506,572) -- -- (4,120) -Gross Profit 6,340,509 964,514 849,353 2,539,845 41,326 10,896 1,934,575 Payroll Expenses (3,827,292) (1,124,917) (508,944) (1,103,702) -- (9,200) (1,080,529) Other Dept Expenses (2,209,956) (414,416) (156,117) (764,326) (23,190) (125,030) (726,877) Contribution Margin $303,261 ($574,819) $184,292 $671,817 $18,136 ($123,334) $127,169 7
COMPARISON OF FINANCIAL OPERATIONS
Revenue 2022 2021 2020 2019 Membership Dues $1,543,958 $1,480,791 $1,438,866 $1,422,655 Golf Dues 1,881,391 1,706,714 1,239,489 1,294,758 Initiation Fees 723,750 520,205 470,125 266,200 F&B Revenue 3,001,327 2,531,101 1,363,822 3,045,050 Golf, Pool, Paddle, Admin 385,876 437,538 354,932 458,217 Total Revenue 7,536,302 6,676,349 4,867,234 6,486,880 Variance from prior year 13% 37% -25% 1% Expenses Cost Of Sales- F&B 1,195,793 1,021,249 609,567 1,077,426 Total Payroll 3,827,292 3,265,963 2,752,049 3,095,487 Department Expenses 1,702,394 1,686,988 1,574,015 1,742,474 Property Taxes 292,504 290,277 289,936 278,582 Fixed Charges 215,058 176,637 145,683 135,114 Total Expenses 7,233,041 6,441,114 5,371,250 6,329,083 Variance from prior year 13% 16% (13%) 1% Operating Income 303,261 235,235 (504,016) 157,797 8
COMPARISON OF OTHER INCOME & DEDUCTIONS
Other Additions & (Deductions) 2022 2021 2020 2019 Depreciation (575,139) (454,999) (398,052) (381,597) Government Grant 1,252,345 - -Employee Retention Credits 610,608 - -Loss on Disposal of Assets (1,681) (39,511) -Interest Rate Swap Adj 398,375 124,074 (92,709) (10,449) Capital Assessment Imp Fee 976,573 960,362 943,994 362,232 Total Other Items 2,661,081 589,926 453,233 (29,814) 9 Net Income $2,964,342 $825,161 (50,783) (127,983)
Total Revenue
Payroll & Benefits
Other Expenses
Fixed Charges/Taxes
Net Operating Income
Depreciation & Other
Capital Assessments
Net Income
$ 7,536,302 (1,195,793) (3,827,292) (1,702,394) (507,562) 303,261 1,684,508 976,573 $2,964,342
2022 COMPREHENSIVE RESULTS
Cost of Sales
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COMPARATIVE COMPREHENSIVE RESULTS
11 Revenue 2022 2021 2020 2019 Resident Dues $ 1,543,958 $ 1,480,791 $ 1,438,866 $ 1,422,655 Golf Dues 1,881,391 1,706,714 1,239,489 1,294,758 Initiation Fees 723,750 520,205 470,125 266,200 Restaurant Revenue 3,001,327 2,531,101 1,363,822 3,045,050 Golf, Pool, Paddle, Admin 385,876 437,538 354,932 458,217 Total Revenue $7,536,302 $6,676,349 $4,867,234 $6,486,880 Variance from prior year 13% 37% -25% 1% Expenses 2022 2021 2020 2019 Cost of Sales F&B 1,195,793 1,021,249 609,567 1,077,426 Total Payroll 3,827,292 3,265,963 2,752,049 3,095,487 Department Expenses 292,504 290,277 289,936 278,582 Property Taxes 215,058 176,637 145,683 135,114 Fixed Charges 215,058 Total Expenses $7,233,014 $6,441,114 $5,371,250 $6,329,083 Variance from prior year 13% 19% (16%) 1% Operating income $ 303,261 $ 235,235 $ (504,016) $ 157,797 Other 2022 2021 2020 2019 Depreciation (575,139) (454,999) (398,052) (381,597) Governmnet grant 1,252,345 - -Employee Retention Credits 610,608 - -Loss on disposal of assets (1,681) (39,511) -Interest Rate Swap Adj 398,375 124,074 (92,709) (10,449) Capital Assessment 976,573 960,362 943,994 362,232 Net income $2,964,342 $ 825,161 $ (50,783) $ 127,983
BALANCE SHEET
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ASSETS Current Assets 2022 2021 2020 2019 Cash $1,353,306 $2,100,657 $1,842,908 $689,581 Construction Loan Escrow 81,010 1,620,054 -Accounts Receivable (Net) 638,800 525,969 394,752 472,908 Employee Retention Receivable 610,608 - -F&B Inventory 56,745 50,204 59,665 87,815 Prepaid Expenses 88,010 73.520 57,864 102,678 ROU Assets & SWAP Valuation 683,113 24,003 -Total Current Assets $3,511,592 $4,394,407 $2,355,189 $1,352,982 Property & Equipment Land & Lease Improvement 6,598,778 6,426,612 5,531,739 5,442,489 Building & Improvements 9,196,938 5,245,538 5,231,730 5,200,359 Furniture, Fixtures, & Equip. 3,411,372 3,183,098 3,064,561 2,980,109 Construction in progress 332,979 1,526,543 1,129,554 Total Property & Equipment $19,540,067 $16,381,791 $14,957,584 $13,622,957 Less Accum. Depreciation 10,244,442 9,699,353 9,858,046 9,459,994 Net Property & Equipment 9,295,625 6,682,438 5,099,538 4,162,963 Total Assets $12,807,217 $11,076,845 $7,454,727 $5,515,945 13
Current Liabilities 2022 2021 2020 2019 Line of Credit $200,000 $- $500,000 $-Accounts Payable 194,615 193,804 148,160 164,436 Accrued Liabilities & Taxes Payable 185,888 515,077 115,389 85,268 Unearned Dues 918,144 726,573 612,782 456,239 Deposits For Functions - 90,963 87,763 85,366 Paycheck Protection Program Note - 1,160,617 606,445 Current Maturities of Long-term Debt 415,540 302,951 194,128 176,169 Total Current Liabilities $1,914,187 $2,989,985 $2,264,667 $967,478 Long-Term Liabilities Disaster Loan, Net of Current Maturities 132,277 141,150 148,169 -Long-term Debt, Net of Current Maturities 3,027,651 3,176,950 998,221 546,723 Interest Rate Swap Valuation 100,071 7,362 Total Liabilities $5,074,115 $6,308,085 $3,511,128 $1,521,563 LIABILTIES & STOCKHOLDERS’ EQUITY Stockholders’ Equity 7,733,102 4,768,760 3,943,599 3,994,382 Total Liabilities & S.E $12,807,217 $11,076,845 $7,454,727 $5,515,945 14
15 Mortgage Construction Note Economic Injury Disaster Loan Line of Credit Principal 1,600,000 3,000,000 750,000 2022 Balance 129,062 2,918,990 136,011 200,000 Term 20 year 10 year Bullet 30 Years Revolving Swap Float to Fixed Float to Fixed Fixed Fixed Rate 4.5% 3.7% 2.8% Maturity 11/1/2023 Open Monthly Payment Annual Payment Principal 1,600,000 3,000,000 $150,000 750,000 2022 Balance 129,062 2,918,990 136,011 200,000 Term 20 year 10 Year Bullet 30 Years Revolving Swap Float to Fixed Float to Fixed Fixed Fixed Rate 4.5% 3.7% 2.8% Prime Maturity 11/1/2023 1/1/2031 7/1/2050 Open Monthly Payment 12,003 17,744 731 N/A Annual Payment 144,036 212,928 8,772 Mortgage Construction Note Economic Injury Disaster Loan Line of Credit Principal 1,600,000 3,000,000 $150,000 750,000 2022 Balance 129,062 2,918,990 136,011 200,000 Term 20 year 10 Year Bullet 30 Years Revolving Swap Float to Fixed Float to Fixed Fixed Fixed Rate 4.5% 3.7% 2.8% Prime Maturity 11/1/2023 1/1/2031 7/1/2050 Open Monthly Payment 12,003 17,744 731 N/A Annual Payment 144,036 212,928 8,772
LIABILITY PROFILE
CAP-EX
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Capital
in 2022 2022 CAP-EX ❑ Dam Project with Ramsey Borough $120K ❑ Clubhouse $14K ❖ Mobile POS & Phone System Upgrade ❑ Golf Improvements & Equipment $90K ❖ Cart Path Paving ❖ 7 & 9 Tee Improvements ❖ Greens Mowers & Maintenance Cart ❖ Pump House & Storage Tank Repairs ❑ Other ❖ Paddle Court Resurfacing/Screens $16K Total $240K 17
Projects Completed
2022 MASTER PLAN EXPENDITURES
❑ POOL
❖ Architects, Engineering & Consultants
❖ Construction Contractor
❖ Legal, Insurance, Bank Fees
❖ Permits & Escrow
❖ Furniture, Fixtures, Landscaping, Kitchen Equipment
$2,931K
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Project Through 12/31/2022 Master Plan Assessment $2,533,969 Loan Proceeds $2,919,490 Total Funding Drawn $5,453,459 Main Building $332,979 Pool Area $4,132,180 Golf Course Irrigation $1,102,632 Golf Course Restrooms $212,585 Total Improvements $5,780,376 19
MASTER PLAN OVERVIEW
MASTER PLAN
• Master Plan Status
• Golf Course Irrigation - Complete
• Golf Course Bathroom – Complete
• Pool Renovation – Complete
• Final Kitchen Equipment Installation To Be Completed by Memorial Day Weekend
• Clubhouse Renovation – Planned Start 01/2024
• Paddle Hut and Proshop – Start Date TBD
• Pool Enhancements In the Works
• Playground Installation
• Shade Structures
• Kiddie Pool Water Features
• More Seating!
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MASTER PLAN
• Master Plan Goals
• Enhance Member Experience
• Bring Catering Space to Current Market Demands
• Maintain Financing Budget and Assessment Commitment
• Clubhouse Budget Allocation
• $8,000,000 in Remaining Loan Funding
• Envelope & Code Compliance – 31.5%
• Lakeside Grill – 29.2%
• Catering Facility – 31.5%
• The Abbey – 7.8%
• Parking Situation
• Revised layout of Abbey and Clubhouse lots and curbs on Lakeside will result in about 30 additional spots
• Better Valet routing will allow for additional 30 valet spots
• Pool Parking area is being evaluated to include parking curbs to promote parking efficiency.
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MASTER PLAN
OUTSIDE OF BUILDING VIEW
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MASTER PLAN
MAIN FLOOR VIEW – GRILLE/BAR/ABBEY
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MASTER PLAN
BAR CONCEPT DRAWING
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MASTER PLAN
BANQUET VIEW –
BALLROOM/LOCKER ROOMS
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B&G UPDATES
• Lake Program
• 5-year plan
• Includes cleanups, repair/replacement of fountains, adding new fountains
• Piers, Islands and Roadsides
• New contract to include defined maintenance plans and staged enhancements
• 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
• New Streams Program
• Goal to work with Town of Ramsey to better understand the streams on our property to leverage Ramsey DPW in the maintenance thereof and/or develop a maintenance program in house
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COLLECTIONS WHERE DO MY DUES GO COMMUNICATION
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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.
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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.
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WHERE DO MY DUES GO?
2022 Dues of $229 Cover Administrative & Building/Grounds Costs. For 2022: Dues Covered 86% of these Expenses.
30 Cost Per Shareholder Covered by Dues Payroll $162 $139 Insurance & Real Estate Tax $29 $25 Utilities, Cable & Phone $7 $6 Supplies & Office $19 $16 Computer & Professional $28 $24 Misc. & Social $22 $19 Total $267 $229
❖ Weekly Golf Emails
COMMUNICATIONS
❖ Social Event Flyers
❖ Monthly Newsletters
❖ Master Plan Updates
❖ Chef’s Corner
❖ Misc. Email Updates
ALWAYS CHECK THE WEBSITE FOR CURRENT INFORMATION
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HOUSE
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LAKESIDE GRILLE & CATERING
Lakeside Grille, Bar & Catering
• Grille & Bar Loss of $574,819
• Catering Profit of $184,292
• Country Clubs in General lose money in F&B – RG&CC is Better than Average
• All local Clubs have a 20% Service Fee in Addition to their Dues – RG&CC does not
• Catering had a total of 287 events in 2022
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OBSERVATIONS
Pool Bar
• Successful Opening of Our New Pool Bar
• $48,500 Revenue from Pool Bar for 5 weeks
Improvements
• New Seasonal Menus
• Better Consistency & Communication
• Chef’s Corner Email Updates
• Patio Tent Made Permanent for Member Dining and Catering Events
Grille, Bar & Catering Thriving
• Family/Holiday Meals back Inside
• Live Music Back on Thursday Nights
• Pasta Night Every Wednesday Night
• Sunday Brunch
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LOOKING INTO 2023
Reducing Costs
• Cut Back Restaurant Hours in Q1
• We Optimized our Dining Schedule to Reduce Payroll & Food Costs
• The Extra Days we Closed had Historically Low Turnout
• The Result of the New Dining Schedule was an Approx. Saving of $50,000 in Payroll & Food Costs
• Please Make Reservations!
• It is Very Important so that Management can Plan on Staffing & Preparing the Correct Amount of Food, so there is Less Waste and more Balanced Staffing
Pool Restaurant Completion
• New Pool Menu
• All New Kitchen Equipment has been Delivered & Being Installed
• Additional Seating Being Added to Pool Dining Deck
• Online Ordering from APP
• Golfers Window Serving Drinks & Snacks
Real Food Hospitality
• They Will be Working with us on Developing a Fresh New Identity for our Clubhouse Restaurant Post Renovation
• Including a New Menu
• Assisting with New Design of Kitchen & Dining Room
• Elevating Caliber of Our Food & Beverage Program
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RESERVATIONS
I Want to Stress Making Reservations Again. We Want to Provide the Best We can to our Members and We Have to Work as a Team.
The Restaurant is an Amenity – Not Necessarily To Make Money But There for Your Pleasure, Convenience and a Great Social Setting
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GOLF
GOLF
Membership
• Resident/Associate mix remains healthy:
• Currently have 137 Associates signed up
• We have a referral program for Members who refer a new Associate Member Golf Course
• Tree Work:
• Continues throughout the golf course/season to prune and remove dangerous and/or damaged trees. Jason works in partnership with the Ramsey Shade Tree Commission on all tree related projects
• With our limited amount of land, we are looking to take back more property and utilize
Irrigation
• Irrigation system continues to impress. The golf course has never been healthier, and the conditions are only improving. Saving 1.5MM gallons per year with new system
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GOLF
Projects
• In spring our newest tee box 7 & 9 opened
• With bigger projects finished around the course, Jason & his team can focus on the fine tuning
• The replacement of safety netting around the course (greens & tees) has started and will continue during the season
Amenities
• Pool bathrooms & bar are now fully open to golfers. We are currently working on Club app that will allow for golfers to order food prior to hole 14.
• PLEASE BE AWARE OF PACE OF PLAY RULES
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GOLF
Pro Shop
• Pro Shop contracts expired in 2022. We happy to announce the entire staff will be returning for 2023
• The RG&CC Head Pro, Chris Sommer was recently elected to the NJPGA board of directors. One of the finest accomplishments for a head professional in NJ
• Men's and Women’s leagues are at an all time high with regards to participation
• New Committees were formed this past year to make the overall experience for all golfers more enjoyable
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0 50 100 150 200 250 2022 2021 2020 2019 226 242 209 209 150 136 111 111 Resident Associate 41
GOLF PARTICIPATION
POOL & PADDLE/PICKLE
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POOL
• NEW Pool Complex opened for 5 complimentary trial/soft opening weeks of operation.
• Anticipate a full Swim Team return in 2023 (50 members participated in 2021).
• New Playground opening this Summer 2023!
• Kiddie Pool geysers & mushroom water features are also scheduled for installation prior to the Pool opening.
• THANKS to our expert Pool Committee of: Grace Cedeno, Eva Farrar, Bob Feeney, Kathleen Gallagher, Chuck Graziano, Brian Nitzberg, Denise O'Dea, Barbara O'Donnell & Ben Roesemann.
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POOL PARTICIPATION
0 10 20 30 40 50 60 70 80 90 100 2022 2021 2020 2019 76 54 96 38 7 23 Resident House 44
PADDLE
• Overall membership has increased 55% over the past 2 seasons
• Once again fielded 5 league teams (4 Men's & 1 Women's); with ALL Men’s teams making the league playoffs (top 4 divisional finish) with our #2 & #3 teams winning MIPL championship banners and our #4 team reaching the finals. Our Women’s team finished league play in 5th place, with an expanding team roster
• Our Club Pro (Krisi Behrens) held 4 complimentary beginner clinics and worked diligently with our league teams + offered private lessons & new Paddle Camps
• Krisi re-launched our Juniors Program (with 22 kids formally participating); and even guided us into Inter-Club play on the Jr. level for the first time
• Resurfaced ALL 3 courts and finished the wind-screens project. Awaiting hut expansion (per formal Master Plan approval) upon Clubhouse renovation completion-estimated timeframe = 2025.
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PADDLE
•Held weekly Social nights play for Men, Women & Mixed Doubles where every level of player is fully welcomed!
•all per the continued dedicated efforts of Jay Bradley, Joyce
Chookazian & Tabitha Lee Damsell
•Ran exciting Men's Club Member/Member tournament (3/11) & fun Shamrock Mixed Doubles event (3/26).
•THANKS to our expert Paddle Committee of: Mike Blasius, Jay Bradley, Bonnie Caliento, Joyce Chookazian, Kristin Graves, Pat Murphy, Kathleen Shevlin, Kevin Wurst & Ari Zweig.
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PADDLE PARTICIPATION
0 10 20 30 40 50 60 70 80 90 100 2022 2021 2020 2019 95 42 50 43 23 29 6 11 18 15 2 21
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Resident Associate House
• Held weekly Social play nights for Men, Women & Mixed Doubles where every level of player is fully welcomed!
• all per the continued dedicated efforts of Joyce Chookazian & Tabitha Lee Damsell
• Our Club Pro (George Cheah) held 4 complimentary beginner clinics + private lesson offerings.
• Provided loaner equipment (paddles & balls).
• 38 members enrolled in 2022, decrease from 74 members in 2021 when offering was complimentary.
• Nominal registration fee offerings again in place for upcoming 2023 season (single = $75 & family = $125) simply to cover program costs!
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PICKLE
SOCIAL
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SOCIAL
• Thank you to the fabulous Social Committee: Sami Abbondondolo, John Asselta, Gina Cambareri, Grace Cedeno, Jenna Goodfellow, Allison Kay, Vanessa Lospalluto, Patricia Maher and Nicole Pregiato!
• Wine Dinner Series are popular as ever in its 10th year!
• Started the year with our Magical Broadway Night, Comedy Night and a fun Jungle Night with the kiddos!
• Spring was hopping with a special visit from the Easter Bunny at our Annual Children’s Spring Party, Family Portrait Day and Adult Spring Fling!
• Started the Summer off with a fun Clambake and kept the good times rolling with Lights Night Out, Family Movie Night, Sounds of Summer and more!
• We finished the year with a Cigar Night, a visit from Santa at the Tree Lighting Event and got all dressed up for the Hollyday Red Carpet Event!
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UPCOMING SOCIAL EVENTS
Children’s Spring Party & Trivia Night in April
• Family Portrait Day in May
• Sounds of Summer will be rebranded into Farewell Summer – happening in September before School starts • We have BBQ’s, Sushi & Saki Night, Wine Dinners, Teen Night, Movie Nights and much more to look forward to this year!
• We are excited to be offering a variety of NEW events this year including the Charcuterie Class we hosted last month!
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REAL ESTATE
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RGCC 2022 SUMMARY
• Almost 20% of homes in RGCC have turned over in just the last 3 years
• Average Sale price was the highest ever in the Club- $806,587
• Slightly higher than Average Sales Price in homes outside of RGCC
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Kristin Graves, Broker/Owner, RE/MAX Properties
• Activity
identical to 2020 & 2021
RGCC
– 2012-2022 0 5 10 15 20 25 30 35 40 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 RGCC Sales Volume/$mm
HOME SALES
Club in
• 33 sales in the
2022
was
54
Kristin Graves, Broker/Owner, RE/MAX Properties
RGCC AVERAGE SALES PRICE VS. RAMSEY HOMES
Average sale price in RGCC: $806,587
Average sale price for outside Club: $799,120
0 100000 200000 300000 400000 500000 600000 700000 800000 900000 2020 2021 2022 Outside Club RGCC
* Source: NJMLS 1/1/20-12/31/22 55
Kristin Graves, Broker/Owner, RE/MAX Properties
RGCC AVERAGE SALES PRICE – 2012-2022
• Average sale price: $806,587
• Average List Price: $792,065
• 21.5% increase from 2021
$$100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Avg List Price Avg Sold
56 2022
Kristin Graves, Broker/Owner, RE/MAX Properties
RESULTS OF ELECTION
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Q&A
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ADJOURNMENT Thank you!
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