CAPITAL DUES

WILMGINTON COUNTRY CLUB capital dues presentation

AUGUST 2024

CB recommends minimum Net Worth growth of 3.5% per year to meet obligatory capital needs Capital Income for aspirational capital will grow Net Worth on top of the 3.5%

Wilmington CC vs. All Clubs w/Golf & $13.5 M to $28M Operating Revenue 131 Clubs

The Private Club Financial and Business Model

ASSETS =

+ LIABILITIES EQUITY (UNRESTRICTED NET ASSETS)

ALL CLUBS

74%

34%

66%

WCC 2022

84%

19%

81%

75%

ALLIANCE

24%

76%

NET PROPERTY PLANT & EQUIPMENT

FROM MEMBERS & BUSINESS (IF OPS SURPLUS)

FROM OTHERS (BANKS)

WHAT WE HAVE

15%

25%

CASH - TO - ASSETS RATIO

DEBT - TO - EQUITY RATIO

14%

10%

Wilmington CC Vs. All Clubs w/Golf & $13.5 M to $28M Operating Revenue 192 clubs

CONCLUSIONS AND RECOMENDATIONS

Wilmington CC is clearly a Green Bucket club. The Balance Sheet is strong, the physical assets are managed well and the PP&E shows as “fresh and up to date.”

The assessment and investment in 2014/2015 shifted the forward-looking capital needs but the capital income profile didn’t shift.

The 2015 – 2022 Capital KPIs indicate WCC needs more capital income to meet the future, ongoing Obligatory and Aspirational needs.

Historically, WCC has used the Operating Ledger as a key source of capital. Is that the best approach looking down the road?

As WCC understands, forward-looking capital planning is mission critical for every club.

99 - Wilmington Country Club

Combined Financial Statement

June, 2024

M-T-D

Y-T-D

This Year

Budget

Last Year

This Year

Budget

Last Year

943,220

947,036

908,077 Membership Dues

5,675,325

5,682,216

5,452,847

Departmental Revenue

-------------------

Golf Operations

466,561

359,725

352,179

1,118,872

1,070,553

1,031,284

45,128

50,400

50,891 Tennis and Squash Operations

123,067

140,175

139,923

18,479

25,570

24,423 Fitness

127,800

125,875

116,005

6,126

5,600

3,504 Swimming Pool

7,191

6,700

4,329

509,955

500,770

478,315 Food and Beverage

1,833,002

1,917,433

1,821,349

1,046,249

942,065

909,312 Total Departmental Revenue

3,209,932

3,260,736

3,112,891

Other Revenue

-------------------

Locker Rooms

21,627

22,887

22,238

126,844

135,517

131,677

16,409

11,650

13,285 Administration

66,742

71,900

78,167

12,340

9,225 White Village

73,580

73,695

62,530

50,377

46,877

44,748 Total Other Revenue

267,166

281,112

272,374

2,039,845

1,935,978

1,862,137 Total Revenue

9,152,423

9,224,064

8,838,112

Departmental Expenses

-------------------

Golf Course Maintenance

379,758

401,599

380,801

1,879,135

1,859,421

1,756,126

287,615

265,068

261,316 Golf Operations

997,874

974,285

882,493

141,463

148,472

131,438 Tennis and Squash Operations

599,465

625,097

614,793

21,916

23,274

21,401 Fitness

141,897

136,348

127,109

39,183

35,318

33,865 Swimming Pool

63,062

43,544

42,462

557,204

520,261

494,437 Food and Beverage

2,531,333

2,441,840

2,358,627

1,427,140

1,393,992

1,323,259 Total Departmental Expenses

6,212,765

6,080,536

5,781,610

Other Expenses

------------------

Administrative and General

193,633

178,871

191,774

1,136,227

1,095,048

1,102,770

214,331

181,712

177,183 Clubhouse Operations

1,198,472

1,084,663

1,050,047

1,167

894

2,747 White Village

5,742

5,364

14,674

35,958

61,027

58,553 Fixed Charges

218,099

354,662

339,461

445,089

422,504

430,258 Total Other Expenses

2,558,540

2,539,737

2,506,952

1,872,229

1,816,496

1,753,517 Total Expenses

8,771,305

8,620,272

8,288,562

167,616

119,483

108,620 Income before Depreciation

381,118

603,792

549,550

167,041

164,000

163,510 Depreciation

994,106

984,000

980,007

576

(44,517)

(54,890) Net Profit (Loss)

(612,988)

(380,208)

(430,457)

WILMINGTON COUNTRY CLUB 2024 CAPITAL EXPENDITURES June 30, 2024

ROUTINE CAPITAL NEEDS

BUDGET

ACTUAL

REMAINING

CLUBHOUSE HVAC - Phase I

565,670.00 38,700.00 115,000.00 301,404.00

553,171.82

12,498.18 38,700.00 115,000.00 283,181.60 - - - 449,379.78

Locker Room Roof Hut Renovation Clubhouse FF&E

18,222.40

1,020,774.00

571,394.22

GROUNDS MAINTENANCE

Various Equipment Various Improvements

296,525.00 306,280.00

44,067.74 208,215.59

252,457.26 98,064.41 - - 350,521.67

602,805.00

252,283.33

RACQUETS AND FITNESS Racquets FF&E

15,275.00 50,000.00

7,980.50 16,701.50

7,294.50 33,298.50 - 40,593.00

Fitness Equipment

65,275.00

24,682.00

POOL Pool Improvements

50,000.00

48,088.20

1,911.80

GOLF OPERATIONS Golf FF&E

13,660.00 131,108.00

26,978.03

(13,318.03) 131,108.00 - - - 117,789.97 (1,761.79) - - - - (1,761.79)

Golf Exhibition WCC history

144,768.00

26,978.03

HOUSING Employee Housing Improvements

26,495.00

28,256.79

26,495.00

28,256.79

MISCELLANEOUS CONTINGENCY

100,000.00

89,560.76

10,439.24

TOTAL ROUTINE CAPITAL NEEDS

2,010,117.00

1,041,243.33

968,873.67

WILMINGTON COUNTRY CLUB Statement of Cashflows ($000's)

Actual

12/31/2023

6/30/2024

Cash flows from operating activities Net Profit or (Loss)

(944)

(613)

Adjustments to reconcile net (loss) to net cash provided by operating activities Depreciation

1,971

994

Provision for bad debt

Loss (gain) on write-off of assets

(Increase) or decrease in certain assets Members' accounts receivable

(182) (148) (192)

Inventories

(91) (28)

Prepaid expenses and other current assets Increase or (decrease) in certain liabilities Accounts payable

344

Accrued expenses Unearned income Other current liabilities

102

86 88

(23)

(21)

Total adjustments

2,013

1,025

Net cash provided by operating activities

1,069

412

Cash flows from nonoperating activities Proceeds from Borrowings on line of credit

600 960

900 830

Sales of capital stock

Purchase of property and equipment Construction in Progress/Other Asset

(792) (113)

(1,041)

(69)

Repayments on line of credit

(1,629)

(764) (197)

Contributions or Refunds and Discounts

(129)

Net cash (used) by nonoperating activities

(1,103)

(342)

Increase or (decrease) in cash

(34)

Cash and cash equivalents, beginning of year

242

208

Cash and cash equivalents, end of year

208

278

WILMINGTON COUNTRY CLUB OPERATING DUES / CAPITAL DUES PROJECT

Scenario - New Capital Due Monthly

Scenario - Increase Sr. Memb/Assoc/2kids

OPERATING DUES DECREASE (MAINTAIN $300M EBITDA)

PROJECTED AVERAGE CAPITAL FUNDING NEED

Sr. Memb/Assoc/2kids

285.21

$ $

156.33

-3.40%

2,000,000.00

(plug figure)

$ 3,422.54

1,875.95

EXISTING FUNDING MODEL

REVISED FUNDING MODEL

BUDGETED ANNUAL OPER.

ANNUAL OPER.

TOTAL ANNUAL

MEMBERSHIP CLASSES

COUNT

DUES PER CLASS DUES PER CLASS OPER. DUES TOTAL DUES

REV. OPER. DUES PER REV. ANNUAL OPER CLASS 2024/BUDGET DUES 2024/BUDGET

NEW CAPITAL DUES CAPITAL DUES

CAPITAL DUES

COMBINED % INCREASE DUES 2024 OVER BUDGET

INCREASE VS INC VS BUDGET

2024

2023

2024/BUDGET 2024/BUDGET % BY CLASS

2024/BUDGET

PER CLASS

PER MONTH

BUDGET 2024

MONTHLY

SENIOR

725

8,898.00 4,494.00 3,720.00 1,464.00 4,494.00 2,271.00 1,887.00

9,336.00 4,716.00 3,903.00 1,536.00 4,716.00 2,382.00 1,980.00

6,768,600

59.43% 0.95% 2.16% 7.01% 1.53% 0.15% 0.42% 0.14% 0.00% 1.23% 0.04% 2.95% 0.16% 0.14% 0.14% 0.00% 20.45% 0.23% 0.03% 0.25% 0.00% 0.00% 0.63% 0.04% 1.24% 0.67% 0.02% 100.00%

8,595.47 4,341.20 3,593.52 1,414.22 4,341.20 2,193.79 1,822.84

6,231,714.30 99,847.69 226,391.76 735,396.48 160,624.55 15,356.50 43,748.21

1,188,537.27 19,046.52 43,177.06 140,251.82 30,640.05

1,639.36

136.61

10,234.83 5,169.31 4,278.87 1,683.94 5,169.31 2,612.06 2,170.52

10%

898.83 453.31 375.87 147.94 453.31 230.06 190.52

74.90 37.78 31.32 12.33 37.78 19.17 15.88

30 THROUGH 34 25 THROUGH 29 10 THROUGH 24

23 63

108,468 245,889 798,720 174,492 16,674 47,520 15,720

828.11 685.35 269.72 828.11 418.27 347.68 138.02

69.01 57.11 22.48 69.01 34.86 28.97 11.50

520

NON-RESIDENT SENIOR

NON-RESIDENT 30 THROUGH 34 NON-RESIDENT 25 THROUGH 29 NON-RESIDENT 10 THROUGH 24 NON-RESIDENT SENIOR TRANSFER

2,927.88 8,344.31 2,760.36

24 20

747.00

786.00

721.60

14,432.04

859.62

73.62

6.14

8,898.00 8,898.00 4,494.00 3,720.00 1,887.00 3,720.00 3,720.00 4,494.00 4,494.00 2,283.00 1,884.00 2,283.00 1,158.00

9,336.00 9,336.00 4,716.00 3,903.00 1,980.00 3,903.00 3,903.00 4,716.00 4,716.00 2,394.00 1,977.00 2,394.00 1,215.00 1,002.00 1,809.00

8,595.47 8,595.47 4,341.20 3,593.52 1,822.84 3,593.52 3,593.52 4,341.20 4,341.20 2,205.38 1,819.94 2,205.38 1,118.63

SENIOR SPECIAL

140,040

128,932.02

24,590.43

1,639.36

136.61

10,234.83 5,169.31 4,278.87 2,170.52 4,278.87 4,278.87

898.83 453.31 375.87 190.52 375.87 375.87

74.90 37.78 31.32 15.88 31.32 31.32

NON-RESIDENT SENIOR SPECIAL

4,716

4,341.20

828.11

828.11 685.35 347.68 685.35 685.35

69.01 57.11 28.97 57.11 57.11

SENIOR SOCIAL

335,658 17,820 15,612 15,612

309,042.72 16,405.58 14,374.08 14,374.08

58,940.11 3,129.12 2,741.40 2,741.40

NON-RESIDENT SENIOR SOCIAL

9 4 4

SENIOR SOCIAL SPECIAL

RETURNING DINING

CLERICAL ASSOCIATE

494

2,329,704

2,144,554.78

409,086.08

828.11 420.38 347.15 420.38

69.01 35.03 28.93 35.03

5,169.31 2,625.75 2,167.10 2,625.75

453.31 231.75 190.10 231.75

37.78 19.31 15.84 19.31

ASSOCIATE 30 THROUGH 34 ASSOCIATE 25 THROUGH 29 NON-RESIDENT ASSOCIATE

26,334

24,259.16 3,639.89 26,464.54

4,624.14

3,954

694.31

28,728

5,044.51

NON-RESIDENT ASSOCIATE 30 THROUGH 34 NON-RESIDENT ASSOCIATE 25 THROUGH 29

- -

954.00

921.56

ASSOCIATE SENIOR SOCIAL

1,725.00

71,456

1,666.35

65,820.83 4,433.94 130,236.12 69,986.70

12,547.28

317.65 169.10 828.11 317.65 317.65

26.47 14.09 69.01 26.47 26.47

1,984.00 1,055.89 5,169.31 1,984.00 1,984.00 87,354.86

175.00

14.58

NON-RESIDENT SENIOR SOCIAL ASSOCIATE

918.00

963.00

4,815

886.79

845.49

92.89

7.74

ASSOCIATE WIDOW

30 42

4,494.00 1,725.00 1,725.00 91,449.00

4,716.00 1,809.00 1,809.00 95,952.00

141,480 75,978

4,341.20 1,666.35 1,666.35 88,339.73

24,843.28 13,341.41

453.31 175.00 175.00

37.78 14.58 14.58

ASSOCIATE SENIOR SOCIAL WIDOW RETURNING DINING ASSOCIATE

1,809

1,666.35

317.65

2,175

11,389,798.50

10,486,043.51

2,000,000.00

13,991.99

1,166.00

7,671.86

639.32

FORECASTED OBLIGATORY FUNDING:

2024 2025 2026 2027 2028 2029

2,010,117 1,929,385 8,819,952 9,114,271 1,457,434 1,070,189 24,401,348

TOTAL NEED:

AVG ANNUAL NEED: Less Projected Stock:

4,066,891 $1,340,000

Proj. Annual Stock

$1,340,000

ANNUAL DUES SUPPORT

2,726,891

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