Mad River Glen Cooperative
Finance Committee Conference Call
July 9th, 2009
Telephone Conference began at 8:02 am
Attending: Andy Dulik, Gary Lange, Roy Liu, Pete Ludlow, Tom Cagnina, Eric Schoenholz, Jamey Wimble, and Lars Bruns
Absent: Ken Frey, Jed Kalkstein, Jim Elkind, George Lesure, Leigh Michl, Jeff Paduch, Andrew Snow, Deb Steines
Schedule and Agenda Review
Lars reviewed the objective of the meeting which was to review the latest industry trends, discuss two budget modifications, review recent financial reports, and confirm changes/additions to the financial reports management provides to the committee. Lars thanked Deb Steines for providing a helpful comparative view of the budget data to be discussed.
Market and Industry News/Trends
Jamey discussed concerns he and the team are seeing in the market and cited lower summer camp numbers throughout the MR Valley as indicative of a tougher economy. He mentioned ski areas out west are already marketing heavily discounted skiing to get people to travel for vacation.
Lars discussed two minor budget item revisions that were made since the budget was recommended and approved regarding elimination of a kids program pricing increase and another change to operations costs which netted out to an additional $20k of planned NOI.
June P&L and Cashflow (Rainy Day fund) Review
Jamey discussed the latest P&L statement and answered questions regarding deltas from plan. Roy asked about recurring general expenses and Jamey confirmed much of the summer expense items are for workers compensation, GL insurance, and property tax. A balance sheet was requested by the group to be provided with the monthly P&L reports. Gary asked about unplanned basebox income that was related to additional parties and events that were not budgeted. Eric inquired about the FY end numbers and after paying share redemptions, performing maintenance, and paying forward for annual insurance to save interest cost we will be about break even. Eric also asked about the retail shop and online sales. Jamey mentioned it is on budget and online sales are going well, especially after the online echo/newsletters. The 5th of July BBQ also helped bring in additional revenue.
Single Chair Pledges and Mortgage Update
Jamey noted that we currently have ~ $30k in outstanding pledges from 2008. Single Chair Mortgage balance is about $86k, we plan to pay that down further next month. We have an opportunity to pay off [PJL1] the Single Chair mortgage by year end if 2009 pledges come in.
Jamey provided a brief update regarding Capex – projects are proceeding according to plan, no overages at this time. Some opportunity for cost savings from prior projects so far may be used to help purchase replacement matting in the basebox cafeteria line as this is a safety concern. Lift 2 Bullwheel work may come in under budget as we plan to do the work in-house and pay only for parts.
Financial Reporting Changes/Additions
Lars discussed some additions to future financial reports to be provided by Jamey and staff. He will be indicating in the reports a projected year-end NOI on the YTD actuals tab of the monthly P&L statements, in addition to a per-department P&L view showing revenue and cost numbers. Jamey will also be indicating on the cash flow statement an allocation for our rainy day fund separate from operating cash. Lars also agreed with Jamey at the request by the FC to provide a monthly balance sheet.
Roy mentioned that the reality of the economy and summer camp numbers is sobering. Gary commented that he was glad to hear that the budget is conservative for next year given the economy and our pending capex needs.
Meeting was closed at 8:42 am.
Treasurer and Chairperson of the MRG Finance Committee