Finance Committee Meeting Minutes: January 17, 2024

Mad River Glen Finance Committee

Meeting Minutes 1/17/2024

Brian Williams agreed to take minutes prior to the start of the meeting.

Attendees: Will Kriewald, Jeff Whittingham, Andrew Carey, Andrew Snow, Brian Williams, Geordie Hall, Bryan Hall, Meg Schultz, John Tobin, Leigh Michl, Brad Noble

 

Regrets: Matt Lillard (enjoying the powder), Richard Gervase, Sharon Crawford

 

Call to order by Will

Geordie moved

Andrew Carey second

 

Dec Financials Review by Andrew Snow:

 

Revenue

Difficult Christmas holiday due to rain/fog and move back to a practice slope-only operation.

The Mountain opened Dec 7^th with almost 2 weeks of main mountain skiing before this.

Ancillary revenue good despite lack of skiers. It was a poor holiday week but on-budget as December is conservatively budgeted.

Poor day ticket sales were offset by a great retail business. It was the best December ever for retail. Revenue was 95K$ which was about 30K$ above budget.

Cell tower rent and interest were two other significant contributors within other income.

 

Expense

An increase due to higher audit bill received in December.

There was an 8K$ expenditure for the practice lift. This unexpected expense will be reimbursed by the Stark Mountain Foundation.

There was a about a 1K$ savings from the new in-house plowing versus the contracted cost in previous year. The wages for the staff for plowing are allocated to this expense.

Some variance seen in health insurance costs but not expected to continue and should even out in the future.

 

Question by Andrew Carey: Are these health insurance costs a cash basis or accrual?

• Answer (Andrew Snow): These are not accruals but actual expenditures, not accruals for health

Payroll tax budget higher than actual. Noted as a budget issue rather than a true savings.

 

Question by Geordie Hall: What is gross prod margin for retail?

• Answer (Andrew Snow): 47% with a range typically of 45 – 50%. Geordie agreed this was in-line with industry. Andrew Snow noted we also provide a 10% Shareholder discount for those sales.

Net Operating income for December was 1% below budget.

Question by Geordie: Where is ski patrol budgeted? Andrew noted it is included in Facilities.

Question from Brian: Would a double chair mid-station have mitigated the bad December holiday period?

• Answer Andrew Snow: Broadway was an issue but from Kay’s Grove down it was OK. We could have used for seasonal programs.
• Comment from Meg: The mid-station would alleviate ski training/school crowd. This crowding on the practice slope likely dissuades folks to come out when running everything only on the practice slope.

Question from Will: Would we charge more than the $49 day ticket price for just practice slope if we had a had a double chair mid station?

Answer from Brad: It is an economic challenge. The goal is to reduce churn. Concern that practice slope-only operation creates fatigue season after season. Main concern for the Co-op is more about revenue protection versus an increase in day ticket revenues.

Comment that Dave Knoop (Ski School) budgets for two weeks of time on the practice slope and noted it gets tough to extend beyond that.

Question from Geordie: Could we combine Birdland chair and mid-station?

• Answer Andrew Snow: Yes, that is the plan with a double chair mid-station.

 

Plowing is prepaid and allocated throughout the season. Upfront revenue for instruction offsets later monthly costs as we pay instructors (race) each month. Total income 2.23 M$ for fiscal year so far. All season ski school/race programs have good subscriptions. Off to a good start here.

 

Question from Brian: What was the comment in the previous meeting about the audit comment regarding unapproved wage scales.

• Answer Andrew Snow: There was an unsigned approval sheet but the wage was in-line with existing pay rates so just a comment.

 

Question from Geordie: Who are our early season attendees, Passholders or day ticket buyers?

• Answer from Andrew Snow: They are mostly pass holders.

 

Question from Geordie: Did we see an increase in season pass sales with good start?

• Answer Andrew Snow: No, except for weekday pass sales. We did see some sales there.
• Comment from Will: Having pass holders on-site and spending money appear to have offset lower day ticket sales through their purchases in December.

 

Balance Sheet

 

We are just shy of 2.4 M$ at end of December. This is 240 K$ better than the same time last year.

400K$ remaining on our outstanding loan. There are a few new item breakouts for operating, non-operating and excess cash (old rainy day fund). Earning close to 5%

Question from Geordie: Can we come up with an alternate word to “Excess?” Action: Andrew and Will to give some consideration. “Available” or “unrestricted” suggested by different members.

 

Question from Andrew Carey: Where should “excess” cash generated by the interest on our funds go?

Answer from Will: We could reclassify as growth in fund or as operating income? How to show full cash picture of the coop? Ending cash balance misses additional cash (non-operating/excess).

Comment from Andrew Carey: The current Finance charts for the Trustees illustrate the operating cash but not the total.

Comment by Will: How do we include a total picture? We need a short term/long term story to tell. Brian volunteered to help Will illustrate these key measures in a better story-telling view and Will accepted the offer. Action: Will and Brian to look at condensing current 3 chart report to one chart for monthly cash measures and income.

 

Comment by Andrew Carey: I cannot remember the last good conditions Christmas period. All memories are the practice hill-only operation at this point. Bryan commented that overall user experience is beyond the finance committee remit. See discussion from earlier on getting people spread around the mountain via a double chair mid-station.

 

Will suggested that he will revisit the time for Finance committee. Brian made a comment that afternoons would be better. Will agreed that would be better for him as well. Andrew Carey mentioned Matt prefers 8AM if in AM. 1 PM works for Andrew Carey.

Action: Will to put together vote for team. Will also provide a “Powder day” clause to move meeting in the event of a powder day as well.

 

Meg commented that she couldn’t access the Google Drive. Action: Will to help troubleshoot.

 

Geordie noted that he is not in favor of powder day clause.

 

Meg suggested Wed or Fri for day of meeting, Will commented that Wed looks good for other reasons.

 

Meeting Adjournment

Meg moved , Brad seconded. Meeting Adjourned at 10:21. 9 Minutes early!