The meeting was called to order by Will at 9:30 AM. John Tobin volunteered to take minutes.
Minutes Review:
There were no changes. Georgie moved to approve, Andrew second.
Approved.
February Financials/Andrew
Revenue
Andrew reported that February was a strong month financially for the Coop. Skiing was good early in the month, followed by a thaw-freeze cycle, but conditions improved for President’s weekend and we had an excellent week. There was some rain at the end of the month. Day ticket sales were 16% over budget with increased traffic and improved yield vs. last year. Basebox was busy all month with a strong President’s week, and 21% over budget. The retail store had great traffic both in the store and online, and 15% over budget. Ski school was very busy and is up 6% for the year, but under budget for the month as so much was prepaid. Rental was 34% over budget, Racing was 100% over budget and very busy with five races, and Cricket club was busy all month and 54% over budget. Overall gross profit for the month was 18% ($123K) over budget.
YTD gross profit of $3,552K is 10% over budget.
Expense/Andrew
Basebox expense was 4% over budget, in line with increased business, and food/alcohol costs are in good shape as a % of revenue. Facilities costs were 3% over budget, with increases in lift operations, patrol, and grooming, offset by savings in parts, plowing and fuel. Payroll tax was 5% over budget, in line with slightly increased payroll. Other departments were in line with budget.
Overall expenses for the month were 5% over budget, in line with the increased business. N.O.I. was $132K, a very healthy 221% over the budget of $41K. Andrew cautioned that March numbers will likely not be as favorable but we are still on track to have a good year overall.
YTD expenses of $2,401K are 3% over budget, inline with increased business. YTD N.O.I. of $1,151K is 31% over budget.
Balance Sheet
Cash is $2,276K, an increase of $74K over last year. Cash adjusted for the construction loan and the plowing equipment loan is $1,919K, a decrease of $38K over last year due to the plowing loan. There is currently $400K in the Operating Fund, and $750K in the Non-Operating Fund.
Comments on Financials
Geordie asked if there was any way to get data on our audience. Will and Andrew are planning to dive deeper into the data this summer to see what insights can be obtained.
John Tobin mentioned that the results were impressive considering it had been a so-so winter. Andrew replied that this was the warmest winter on record to date according to the NWS. The changes put in place over the last four years are yielding positive results and our strong preseason sales help insulate us from bad winters. He pointed out that very strong winters might not have as much upside as in the past but that was a worthwhile compromise.
Geordie asked how the staff was doing and Matt replied that morale was good but some were looking forward to time off to ski. Geordie asked how the new plowing business was going and Matt said it was going reasonably well and we are still learning. He felt we were doing at least as good a job, if not better, than the previous vendor.
Leigh proposed skipping the discussion of the cash flow to devote adequate time to the Double Midstation discussion. Andrew concurred.
Sunnyside Double Midstation Financing Plan/Andrew, Matt
The capital budget for the Midstation/Sunnyside Double project is $850K. Of this, $765K will go to the contractor, with the remaining $85K allocated for work to be done by MRG staff, plus contingency. The project will be voted on at the Annual Meeting, with construction to take place this summer and fall. MRG and SMF have agreed on a 50/50 split for the project, with half to be provided by fundraising and half from MRG. A Memorandum of Understanding has been drafted to be presented to the MRG board for approval. SMF has committed to providing $175K in grants this year for the project, with the balance to be provided next fiscal year. A joint SMF/MRG committee is being formed to oversee the fundraising.
Matt and Andrew looked into a loan to cover the costs of the project but after considering the interest expense vs. income on our reserves, decided the best approach was to use our cash reserves, as well as operating profit from this fiscal year. The reserves will be partly replenished by the additional grants from SMF and share sales. Potential future capital projects in the next five years include work to the pump station, a new groomer, and the Pub project.
The biggest risk factor to the COOP would be multiple bad winters, such as was experienced in 2016-17. Andrew felt one such winter would not impact preseason sales too much, but multiple bad winters could. It was felt that the cash reserves were still adequate to deal with such scenarios.
Richard asked if proceeding with the project was contingent on the success of the fundraising. Matt replied that they felt the project was essential to our mission and we already have enough committed from SMF to ensure we can proceed.
John Tobin asked about the proposed Pub rebuild project, and how that would be handled in terms of fundraising. Andrew replied that the plan was for a continued fundraising engine, that each project would not be a separate appeal but would be part of an ongoing capital fundraising effort. The midstation project is our highest priority project and we have flexibility regarding the other capital projects. Brad Noble mentioned that donors will have the ability to restrict their donations to specific projects although the general emphasis will be on unrestricted funds. The messaging will be on general capital needs but specific projects such as the Midstation may be the focus at times.
Bryan asked about how the funds from SMF would be dispersed. A process already exists for submitting grant requests to SMF and grants must fit within their mission to be approved. Brian pointed out that the Midstation project would use only about 10% of our cash upon completion of fundraising.
Will made this motion:
The Finance Committee recommends approval of the double mid station financing plan which uses a combination of non-operating funds and available cash; both of which are expected to be partially replenished by a combination of fundraising, share sales, and COOP Net Income.
Geordie seconded.
All in favor.
Spring Pass Sale Pricing/Andrew
Andrew briefly discussed the proposed pricing for the spring pass sale. Prices need to be raised slightly to cover increased costs and preserve margin at the sale prices. No new products are being introduced. He proposed we approve a general 3% increase rather than approve the specific pricing.
Geordie made this motion:
The Finance Committee recommends approval of price increases of approximately 3% for the spring sale of 2024-25 season passes.
Brad seconded.
All in favor.
Discussion of the financial charting project by Bryan and Will was deferred until next meeting.
