Finance Committee Meeting Minutes: April 24, 2024

Mad River Glen Finance Committee

Meeting Minutes

4/24/24

Attendees: Will Kriewald, Bryan Hall, Leigh Michl, Andrew Carey, Andrew Snow, Brian Williams (scribe)

Absent: Geordie Hall, Richard Gervase, John Tobin, Matt Lillard, Meg Schultz, Jeff Wittingham

Agenda

1. Review the March performance
2. Go through April season ticket Sales
3. Review proposed capital items for 2024 in addition to the mid-station double.

Discussion

• Motion to approve minutes, Will, second Andrew C, no changes.

Revenue Comments

• Poor conditions at start of March but big turnaround for rest of month
• 575K$ above target for revenue YTD
• Paid day tickets down 10% for the season

Expense Comments

• Ran additional lifts for 2nd half of month which was not included in the budget (Birdland/Practice slope)
• Payroll tax higher with 5 Fridays in March
• Cost of Goods Sold remains below 50% in retail store
• Total expense 30K$ over budget
• Operating Income: Net loss of 75K$, 30K$ below budget

Overall P&L Questions and Comments (Andrew Snow)

• Q: Bryan Hall – what was additional $900 fee for transactions? Authorization charges from Bot that . reCAPTCHA now in place to prevent this from happening.
• March interest income of 26K$ moved to other income as it is now a much larger amount than last year. It was included in the budget. Interest income had been rolled up into other operating income previously, will see this as other income outside of operating P&L going forward.
• Insurance recovery income from lift 2 electric drive received. Added to other income. SMF covered the rest of this cost in other grant income.
• Overall, results came out better than expected at start of the month.
• C: Will – pushing interest below income line will result in a lower ROI than was presented to shareholders. Andrew S – will add to report as a footnote.
• Q: Will – where was interest included in the previous audit? Andrew S – not sure but auditor indicated where we put this is not important.
• Tickets and visits. Day tickets down but
• Exceeded 4M$ revenue just before end of month. 1M$ NROI through March. On target for FY 125 K$ NROI.
• Bonuses paid out to seasonal staff in April, full time staff to be paid in May.
• About 120K$ for all bonuses expected (splitting the profit)
• Employees talked with are thrilled with this!
• Department head reviews are used for bonus payout basis
• All departments above budget on P&L
• Net income for plowing is from plowing for homeowners
• Q: Andrew C – Will net income decline towards the target? Andrew S – Yes, as expected with off-season costs as budgeted.

Cash Flow

• 96M$, up 83K$ over same time 2023 after net loans (construction/plowing)

• Q: Bryan H – Can we show how the season ticket sales would be applied to even out NOI? It would be to compare to previous years. Will – what does it tell you? Brian W – We are more focused on cost control than monthly NOI. Cash flow level tracking as the driver for decision-making versus monthly net income.
• We did not pull cash from operating fund balance at end of March, as anticipated, due to good performance (weather).
• Moved 500 K$ versus 400K$ to operating fund as previously planned. Season ticket sales were 60K$ above plan.
• Season pass sales up 10%. 60% of season pass capacity taken in the Spring sale. More than 50% of SM Cards. Above 1M$ total sales for preseason.

Capital Plan

• 10 members of committee with only 5 in attendance today. Suggest we talk about and recommend based upon the 5 in attendance. 1 short of a quorum.
• Mid station cost 850K$
• 200K$ COOP funded capital above the mid-station project spend. We went through breakdown of many items per spreadsheet that can be found in the Google drive.
• 2025 is a placeholder (reference) for now, not fully complete so no detailed discussion.
• A snow gun was tested and we would like to now purchase
• Andrew C – who wears the Uniforms noted in the capital plan. Andrew S – Uniforms are mostly jackets for .
• Septic pumps replacement 52K$ as largest item
• Q: Leigh – Snowcat swapout? Andrew S – .
• C: Will – 200K$ investment coming totally from operating cash, 250K$ from non-operating cash for the MRG share of mid-station.
• Pub likely to be pushed to 2026
• Will – Looking for recommendation. No objections from those present. No quorum for a formal motion. Review at May Finance Committee meeting.

Q: Andrew C – What is our annual level of depreciation? Andrew S – 204 K$/yr. Capital spending proposal right at depreciation. Responsible and appropriate per Andrew Cary. Would vote in favor. Any other concerns? None noted. Maintaining area at the right capital level.

Review of Finance Charts Draft Proposal

• Can we split rainy day accounts between investment fund and operating fund in the view?
• Other Improvements suggested:
• Put label on comments on the chart to show wording for key points in time. Variance from budget to simplify bottom left chart.
• Top left clean up total comment to show something like op cash remaining YTD.
• Add a reading narrative for the entire dashboard.
• Cleanup scale nomenclature.
• Comparison to last year on right side chart would be useful too.

• Brian will review and spend an hour getting the detailed info into the chart. Timing – target for June meeting

Motion to close meeting – did not get motion maker or second.