Mad River Glen Cooperative
Finance Committee Conference Call
November 13, 2009
Telephone Conference began at 8:02 am
Attending:Ken Frey, George Lesure, Jim Elkind, Jed Kalkstein, Deb Steines, Pete Ludlow, Tom Cagnina, Gary Lange, Andy Dulik, Eric Schoenholz, Ken Frey, Jamey Wimble, & Lars Bruns
Absent: Roy Liu, Bruce Button, Leigh Michl, Jeff Paduch,
Schedule and Agenda Review
Lars reviewed the objective of the meeting which was to discuss the latest industry trends, receive an update on preseason sales, review October month-end financials, discuss the initial audit report, and review proposed modifications to the incentive program.
1) Market and Industry News/Trends
Resorts out west are still promoting very attractive deals to ski and stay.Regional season pass sales are about flat.We will look into discounted helmet sales for all employees for safety purposes.
2) Preseason/APR Update
Our preseason sales volume is about the same level or slightly better than last year which was a very strong year.Preseason sales dollars are doing slightly better than budget.We’ve seen a slight drop in 7 day passes, and an increase in 6 day passes.Mad cards are off slightly but the deadline for these is December 15th.
3) October P&L and Cashflow Review
We’ve had some lower than budgeted revenue numbers for the retail store.Geordie asked about online sales and expressed concern that we may be missing an opportunity with the website.George asked about physical store sales vs online sales, and commented that it would be good to see what the budget was vs. actual.
Our cash position is holding firm and per plan, we’re in good shape for the coming season at this time.With the next fiscal year we plan to break out the “rainy day” savings line item for visibility.We will need to add an item for 2010 summer expense/capex work if we are to consider redesigning the front entrance of the basebox next summer.
Single Chair Pledges and Mortgage Update - Jamey noted that we currently have ~ $34k in unpaid and outstanding pledges from 2008.The Single Chair Mortgage balance is about $67k at Northfield Savings Bank. Single Chair mortgage payments are down to ~$600/month.We have an opportunity to pay off the Single Chair mortgage by year end if 2009 pledges (planned to be ~$100k) come in.Jamey noted that the office recently sent out a reminder letter to those with pending pledges for this calendar year.Deb highlighted the need to discuss the all-donors plaque (timing) and how we should consider treating those with outstanding pledge payments, perhaps something to look into for January or February.
The group posed a question regarding cashflow and the accounting of next season’s preseason sales in Jamey’s operational cashflow spreadsheet (Summer/fall 2010).The group expressed concern in showing advance sales in the spreadsheet as it does not reflect actual FY to date income.Jamey explained that he uses the spreadsheet for operational planning and it is not a financial FY statement.Numerous varied questions were posed and answered regarding line items in the P&L and balance sheet.
Jed and Jim requested that we separate out into two views the operational and FY projected cashflow for next year’s sales.
4) Initial Audit Report Discussion
Jamey discussed the initial findings from the audit.He has received a draft report this past week and we will review at our next Finance Committee meeting.Last FY we made a small profit.Ray the auditor made one suggestion regarding depreciation and suggested that in the future we may want to consider a software program to help with the calculation.
5) Employee Incentive Program – Guidance Discussion
Jamey reviewed some proposed changes to the employee incentive program with the committee.Some modifications to the existing program were made in his guideline proposal to increase the NOI trigger point of the incentive as well as some other eligibility-related criteria.This modified proposal was similar in structure to the program that was started in 2003.The group had a long discussion as to the benefits and detriments of the structure as well as the timing and effectiveness of the prior program. No recommendation was made by the committee to take to the Board meeting.However, the Finance Committee did express a desire to hear from the Board if they desired the Finance Committee to continue working with Jamey to better structure and outline such a program.
Lars closed the call by thanking the FC members for their time and reminded them of the Board mtg on Saturday @ 8am in the basebox.
Meeting was closed at 9:01 am.
Treasurer and Chairperson of the MRG Finance Committee