September is typically our biggest profit month of the year and this year was no exception. Our professional staff delivered a better-than-budgeted month and made good on their promise to “Create Memorable Experiences”.
Total contribution to capital (CTC) for the month was $345,000, $25,000 more than budgeted. Revenue was $127,000 more than budgeted. The $250,000 Rolex sponsorship contributed the lion’s share of the revenue, as it does every year in September; Food & Beverage contributed twice as much as forecasted; Tinsley performed better than budget; Administration performed better than budget. Race and Clubhouse were off budget primarily associated with the Rolex Big Boat Series, and the Ketch All missed budget as it continues to manage excess inventory.
Year to date, our Food & Beverage revenue is up. This follows a three-year trend of increased member dining: September 2015 had 5,939 a la carte covers; in September 2016 there were 6,933; in September 2017 there were 7,365. That’s a 24% increase in three years, a strong indication that members are enjoying their Club dining experience.
Race, Junior and Yards & Docks are all performing better than budget. Administration & General is slightly better than budget despite the challenge of the Ketch All inventory. Tinsley and Cruises are below expectations mostly due to lower than budgeted dockage revenue and cruise participation. Dues revenue is below budget. All things considered, we are $27,000 ahead of our CTC budget year-to-date. This gives us a little cushion going into the last two months of the fiscal year, October and November. The staff remains optimistic we will meet our annual CTC target of $129,000.
Our total cash position remains solid, at approximately $3.9M. That includes approximately $1.59M in insurance reserves, which have grown about $90,000 since being invested in a low-risk investment UBS account earlier this year. In that total is also some contingency reserves and the Dredge/Berm monies. We remain conservative with our capital spending at about $150,000 less than budgeted for the year.
The Board continues to monitor our membership count. The membership committee has built momentum throughout the year and the Membership Director is in the process of simplifying and streamlining our application process so new members may be welcomed smoothly and efficiently.
Now, we enter one of our busiest seasons. Your professional staff is preparing for the holidays and the Board is fully engaged in the 2018 planning process. The final version of the 2018 budget will be determined in early November. One of the influencing elements is our labor contract with Local 2, which is contingent on a meeting with our union representatives; that meeting has been delayed by the local representatives. We’ll keep you posted.
Another important component of the 2018 budget is our sponsorship contract with Rolex, which is up for renewal this year. Discussions are well underway with Rolex and we hope to have some news to announce before the end of the year.
Congratulations to all for a successful September. As always, if you have any questions about the operation of your Club, please contact me at firstname.lastname@example.org.
Robin J. Driscoll
Chairman of the Board