Promoting the Superyacht Industry of the United States and serving as its voice

annual report

2011–2012

letter from the chairman John Mann III, Bluewater Books & Charts

Greetings fellow USSA members and Superyacht industry leaders!

their products and services to the visiting superyachts next summer.

On behalf of the U.S. Superyacht Association’s Board of Directors, I’m delighted to report that at the end of my first year as Chairman, our Association has continued to make significant progress against our mission of promoting the industry and serving as its voice through our advocacy initiatives.

Our event schedule continues to grow in number and prominence. Our presence at the Fort Lauderdale International Boat Show in 2012 will be our biggest ever. The St. Maarten event, along with the Newport Charter Show, once again provides us the opportunity to educate captains and senior officers on U.S. regulations and other changes that affect them.

Our board was expanded over the past year to include representation for seven geographic regions of the United States to truly become a national trade association. The new board developed goals for 2012 that revolved around our key areas of focus: advocacy, marketing, events and membership. Great progress has been made on all of these fronts through the efforts of our volunteer members, the board and our association management team that is led by Kitty McGowan. On the marketing front, we launched the “Come Sea U.S.” campaign—our first step towards encouraging superyachts to visit the United States on extended cruises and to participate in big events. Speaking of BIG Events, the yachting world will be focused on the West Coast in 2013 for the 34th edition of the America’s Cup. As an Operational Partner for the Superyacht Program, USSA has been working with America’s Cup Race Management to help encourage more superyachts to participate in this exciting event that begins in July in San Francisco and culminates with Cup finals in September. Through our partnering efforts, many of our member companies, especially on the West Coast, will have the opportunity to provide

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As our association grows (to nearly 250 members), so too does our need for member companies to volunteer their skills, expertise and time. The coming year’s focus will be on engaging members in regional and national committees to help us continue to grow in the coming years. We can’t do it without all of you getting involved with your association! I look forward to working with you all to help make the U.S. the ultimate destination for superyachts in the world! Thanks to everyone for your participation. Best of luck in the year ahead!

our mission Promoting the Superyacht Industry of the United States and serving as its voice

Management Team NautiCom Communications, Inc. Kitty McGowan, President Julie Sack Denise Castro Luana Stowe Mailing Address: 757 SE 17th Street, #662 Fort Lauderdale, FL 33316 U.S.A. 800-208-5801 toll free 954-792-8666 local 954-523-0607 fax www.ussuperyacht.com info@ussuperyacht.com

John Mann Chairman 2011-2013 U.S. Superyacht Association

The Plan Over the past year, the USSA has joined forces with the America’s Cup as an Operational Partner for the Superyacht Division. visit our site for updates: ussuperyacht.com

The US Superyacht Association’s (USSA) board of directors approved an operational plan for 2012 to concentrate on the organization’s key areas of focus including: Advocacy, Membership, Marketing, Special Events and Regional Development. Through the hard work and tireless dedication of countless members, board, committee members and staff, the organization has not only accomplished the key objectives of this Plan—but exceeded them!

Membership Membership is the lifeblood of the USSA. The major focus over the past year has been to not only promote members’ products and services through national and international representation and networking, but also to advance the superyacht industry in the United States. A vibrant and engaged membership is the key to our success and growth! Starting with 11 Charter members only six years ago, the USSA has grown to nearly 250 strong.

Goals and Strategies • Achieve targeted membership growth which assumes 20% attrition and 60 new members. • Identify and target strategic companies by region and business segment for membership. • Increase membership involvement on committees and action teams.

Did you know? The America’s Cup is the oldest continuously contested trophy in international sport— first awarded in 1851.

Action • Developed a national membership committee with representatives from every region in the U.S. and held monthly teleconference meetings to identify, build and approve members. • Expanded the membership base throughout the United States and overseas to include 22 states and 16 countries. •M  embership has nearly doubled to approximately 250 members over the past year and has attracted key sectors of the superyacht industry. •M  odified the Association’s By-Laws to further strengthen and streamline the organizational structure and to enable Captains and Senior Officers to join the USSA (Will be launched in 2013).

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USSA doubles membership in 1 year The U.S. superyacht industry is responsible for generating nearly 29,000 American jobs and contributes more than $6 billion annually to the U.S. economy.

Advocacy

We’re very proud to announce that our membership list has doubled, and we have a tremendous offering of members to help serve the needs of nearly every traveling yachtsman.

• Presented testimony before the U.S. House Small Business Oversight Subcommittee regarding the burdensome regulatory agencies and their negative impact on small business.

Since its inception in 2006, the United States Superyacht • Led a delegation of 18 association members (the largest Association (USSA) has been working hard to develop strong organized group in attendance) to the American Boating relationships in the national regulatory and legislative arenas Congress (ABC) in Washington, DC in April. to protect the special needs of the superyacht industry. These relationships provide the Association with the opportunity • During ABC—the USSA organized more than 30 meetings to educate the country’s leadership about the significant with Congressman and Senators and made progress in economic impact the industry provides. educating our legislators about the significant economic impact and job creation of the superyacht industry. The strength of the USSA in the advocacy arena comes from the membership. The top 15 boating states are represented • Conducted Industry Panel Discussions both national and in the seven regions of the association (Southeast, Midinternational to educate Captains about U.S. entry in St. Atlantic, Northeast, Midwest, Gulf Coast, Pacific Northwest Maarten, Washington DC, Newport and Fort Lauderdale and the Pacific Southwest). Within each of these regions • Supportive of Regional and State Marine Industry there is an advocacy chairperson that will work with local Associations on such issues as the Sales Tax Cap in Florida and state marine trade associations to develop the federal and Pilotage Changes in Washington State. These changes legislative agenda to provide a cohesive message to the resulted in positive impacts to the U.S. Economy. public, congressional leaders and the media.

Goals and Strategies: • Build relationships with national and regional marine trade associations to further continue to develop a national strategy focused on promoting and protecting the superyacht industry. •A  ttend the American Boating Congress to represent the superyacht segment of the industry on Capitol Hill.

Impacts: • Adapted the Come SEA U.S. campaign into the advocacy strategy. • This strategy was developed as a platform to encourage more superyachts to visit ports across the United States. • Utilized the campaign as a two-way conduit for entry information between superyacht crew and United States Coast Guard, Customs and Border Protection and the U.S. State department

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• Working with these government partners, USSA is striving to make it easier for foreign flagged Superyachts to enter and cruise US waters. We continue to form partnerships with marine industry associations to enable coalitions on opportunities and issues of mutual interest. • Developed new reciprocal memberships with regional, state, national and international marine trade associations to add to our existing trade association members, such as: Marine Industries Association of Palm Beach, Rhode Island Marine Trades Association, American Boatbuilders and Repairers Association, Association of Marina Industries and more. • Held VIP legislative tours during the Palm Beach International Boat Show to help educate U.S. Congressmen about the importance of the marine industry and to give our members the opportunity to speak directly with their representative.

the USSA developed the Come SEA U.S. campaign as the centerpiece to its marketing plan and Implemented a new solid Social Media strategy.

Marketing As one of the key areas of attention of the USSA, the association developed the Come SEA U.S. campaign as the centerpiece to the association’s marketing strategy. While the USSA has limited resources to project this message, the past year has been successful in developing the platform for the program’s growth in the future.

Goals and Strategies: • Improve web site for regional representation, member company exposure and crew resource for U.S. entry questions. • Re-launch the site and establish a plan to keep it fresh and updated.

Impacts: • Complete overhaul and rebrand of the USSA website— launched in January 2012. • A new membership database section is being launched in October 2012 to further enhance the member’s searchability and opportunity to add new locations, multiple categories, regions and much more!

• Implemented a solid Social Media strategy to incorporate the new website with a strong presence on Facebook, LinkedIn and Twitter. • Created a system of regular blog updates on members and areas of interest at the local, regional, national and international levels. • Streamlined the email communication system through Constant Contact to be consistent with rebrand of the USSA website. • Redeveloped the Membership Directory and US Entry Guide to maximize exposure for members by increasing its value through powerful editorial content. Also included a full electronic copy of the Directory on the home page of the USSA’s website. • Increased the distribution of the Directory nationally and internationally by 40%. • Through the restructure of the advertising section of the Directory, the Guide became self-sustaining. • Created quarterly e-newsletters to keep members up to speed with Association issues. • As an Operational Partner with the America’s Cup Superyacht Program—the USSA is incorporating the Come SEA US campaign into the drive to bring more superyachts to the United States for the exciting racing events in the summer of 2013.

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The USSA has used its regional and national events to spread the message of the organization and to raise necessary revenue to fund its advocacy and marketing initiatives. Events also serve as a platform to raise the specter of the USSA and its mission and add value to membership.

Events The U.S Superyacht Association has used its regional and national events to spread the message of the organization and to raise necessary revenue to fund its advocacy and marketing initiatives. Events also serve as a platform to raise the specter of the USSA and its mission and add value to membership. These events in various regions also assisted in developing strong membership action teams to further the membership and advocacy missions.

Goals and Strategies The goal of the past year was to work to improve our current events and to make them more cost effective with a stronger ROI for our members and to investigate opportunities to develop new events.

St. Maarten Captains’ Briefing A record-breaker for the USSA with more than 80 members and their representatives participating. The beautiful setting of St. Maarten provided an incredible backdrop for this annual event that is a unique combination of superyacht captains and leaders in the superyacht industry. Palm Beach International Boat Show As a second-year event, it provided members with the opportunity for exposure in a growing event and gave members the opportunity to network with industry leaders throughout the Show. This Show is a developing superyacht event and getting in on the ground-floor is enabling the association to establish a strong presence.

Impacts

American Boating Congress Brought together 18 member companies to Washington D.C. to represent the U.S. Superyacht industry. The event gave members the opportunity to experience their government in action and be a part of the process as they participated in dozens of meetings with U.S. Representatives and Senators.

All the events of the past year have seen better participation from the membership and have been more productive for all. The events line on the Association’s P&L has grown nearly 10% over the past year—providing additional funds for advocacy and marketing initiatives.

American Superyacht Forum Brought the members together to welcome the Delegates to the American Superyacht Forum and to network with national and international guests during our USSA kick-off event and welcome party.

Fort Lauderdale International Boat Show 2011 The USSA Pavilion proved to be a great success in the 52nd Fort Lauderdale International Boat Show (FLIBS). Having doubled in size from 2010, 20 members had the opportunity to exhibit in the Builders and Designers Tent. The USSA also had a huge presence at the Show and hosted numerous networking events to help drive traffic to exhibiting members and to provide opportunities to network with industry leaders.

Newport Charter Show This event kicked off the summer yachting season in the Northeast Region. USSA worked closely with show organizers and yacht charter industry leaders to add a stronger superyacht focus to the event. The always-popular USSA networking event brought together many different segments of the industry.

Annual Meeting 2011 During the five year anniversary celebration, more than 100 industry leaders were able to network, meet with Congressman Alan West (the keynote speaker) and get updated on the Association’s progress over the previous year. Attendees also welcomed the new 2012 board of directors and honored the Association’s Charter members who started the organization five years previously. 6 | 2012 USSA ANNUAL REPORT

Newport Brokerage Show (New in 2012) The U.S. Superyacht Association (USSA) joined forces with Northrop & Johnson and Presenting Sponsor AIM Marine Group to develop the new Superyacht Pavilion at the Newport Brokerage Show that took place September 13–16, 2012 at the Newport Shipyard. This was the USSA’s first year at the Brokerage Show that ran concurrently with the Newport International Boat Show.

A year of accomplishments and successes... Point to a strong and vibrant organization that is ready and poised to truly make a difference and to promote the superyacht industry of the United States and to serve as its voice.

Regional Over the past year, the USSA has developed a strong presence in regions around the country and the Caribbean. This has been accomplished through events and Captains’ Briefings and by building member action teams to help develop that region. The Association has also joined forces with local, regional, national and International associations to help further spread the mission of the USSA.

Goals and Strategies • Implement a strong Regional Organizational structure • Form Committees and establish two-way communications between the regional and national teams. • Start relationship building with local regulators/legislators.

Impacts • Increased strategic partnerships with regional marine trade associations.

• Improved the quality and number of the USSA networking events across the country. • Identified key committee chairs to organize action teams in each region. • Held regional meetings with local members to determine the specific needs and challenges facing each region. Established a national Advocacy Structure to unite all regions: • Development of regional action committees to liaison with government officials in each region. • Developed and implemented a communication framework for an efficient information exchange between regions and regulatory agencies. • Established short and long term national action committees to address specific issues (Pilotage, Entry ENOA). All of these accomplishments point to a strong and vibrant organization that is ready and poised to truly make a difference and to promote the superyacht industry of the United States and to serve as its voice.

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2011-2012 Financial Report The US Superyacht Association (USSA) is a 501 (c)6 non-profit organization. The board of directors of the USSA have worked diligently to manage the Association’s financials in a very conservative manner. As a result, the Association is in a strong fiscal position with some minimal reserves, no debt and a strong balance sheet that has the organization poised for growth. Between the 2011-2012 fiscal years, membership dues became an even larger part of the Association’s revenue stream as the membership rolls nearly doubled. Other sources of Association revenue continue to be events at boat shows and captains briefings. These other areas provide the Association with added resources to utilize for marketing and advocacy initiatives. Membership donations to specific projects further enable the USSA to accomplish specific objectives. The Association’s major expenses continue to be advocacy, events and marketing. Over the past year, the Association put additional emphasis on regional outreach and growth to help get these areas more established. Advocacy continues to be one of the most significant areas of attention and administrative management supports all functions and works to further the efforts of the USSA.

the ussa board of directors have worked diligently to manage the Association’s financials in a very conservative manner.

2012–2013 board of directors officers John Mann chairman

Member Donations Advertising & Sponsorship

Membership

Bluewater Books & Charts Tim Davey past chairman

ISSGMT Events

Corey Ranslem vice chairman advocacy co-chair

Secure Waters Security Group Kristina Hebert advocacy co-chair Wards Marine Electric

INCOME Events & Regional Outreach

Administration Membership

Michael Bach membership chair

Hinckley Yachts Bert Fowles marketing chair

IGY Marinas Mark Cline treasurer

Cline Financial Group Advocacy

Michael Karcher

EXPENSES

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general counsel

Karcher, Canning & Karcher

at large board members John Clayman Seaton Yachts David Reed Triton Publishing Group Eugene Sweeney Marshall Islands Yacht Registry Cris Wenthur Wenthur Law Group George Whitehouse Rybovich

Regional Board Members Southeast Region Rebecca Castellano Ocean Medical International Mid Atlantic Region Jay Dayton Avon Dixon Agency Northeast Region Richard J. “Dick” Tracy Pantaenius America, Ltd. Great Lakes Region James “Jim” Ruffolo Burger Boat Company Northwest Region Peter Schrappen Northwest Marine Trade Association Southwest Region Eric Pearson Fraser Yachts Gulf Coast William “Billy” Smith Trinity Yachts