Finance Committee Meeting Minutes: November 13, 2024

Mad River Glen Finance Committee

Meeting Minutes

11/13/2024

Attendees: Will Kriewald, Matt Lillard (late, in another discussion), Geordie Hall,Leigh Michl, Andrew Carey, Andrew Snow, Brian Williams (scribe), Brad Noble, Richard Gervase

Absent: Jeff Wittingham, Meg Schultz, Bryan Hall

Agenda

1:00 pm – Call to order – Will Kriewald

1:01 am – Review October minutes – Will Kriewald/Brian Williams

1:03 pm – Review October financials – Andrew Snow

1:25 pm – Review cash flow forecast – Andrew Snow​

2:00 pm – Adjournment

Approval of Minutes from Prior meeting

A few minor edits by Andrew Snow added. Will motion to approve, Andrew C Seconded

October

NOI

Very high due to revenue recognition of revenue from season pass sales.

Revenue

Foliage ride revenue higher than last year and budget. Great foliage traffic.

Season pass products are at the maximum control levels for almost all pass products. Some opportunity to grow ski school revenue as kids programs are down slightly.

Geordie – Are the number of kids the same in ski school? Andrew S: -27 kids in ski school, +6 in free ski, +11 in race. Net change across all is -10 at end Oct. 428 v 438 last year.

Overall up 100K$ in revenue due to strength in season pass sales versus budget.

Expense

Expenses higher with higher revenue. Season end bonus for staff who worked the summer season. Overall, expenses consistent with higher traffic and revenue for foliage season.

Geordie – The wait times for items from the grill were excessive sometimes during summer. Over an hour in some cases. Any way to reduce that? Andrew S to review with Matt.

Health insurance increase of 15% for the coming year in the budget.

Will – do we have our own Mad River Plan? Andrew S, Yes.

Geordie – Do we look at other health plans offered by other ski areas? Andrew S – we have not looked lately. Not sure how it compares to Sugarbush. It is competitive with typical Vermont plans.

Andrew Cary – Are most employees happy with the health insurance? Andrew S – will ask Matt, not sure. A 15% increase is paid by both MRG and the employees. Seasonal employees are offered this benefit in addition to full time staff. Not sure if other Mad River Valley employers do this. May be an additional retention perk.

Exact depreciation to be recalculated at the end of the physical year.

Cash Flow Oct

Cash breakdown has been modified per Leigh’s request last meeting to add clarity of accounts and location of available cash. 1.665 M$ in brokerage, just over 300K$ in bank accounts. Illustrated by an account and cash type table on the side of the cash flow statement.

Geordie – do we have a feel for interest on the brokerage cash? Andrew S – 4% for money market, less than 4% for t-bills at the moment.

Cash Flow 2024-25 Projection

Invoices are late from the mid-station double project vendor. Moved 200K$ from brokerage accounts to cover other Nov purchases. 267K$ penciled in for Nov for brokerage withdrawal for anticipated invoice.

Target is to keep minimum available cash balance at 300K$ with a slightly lower value in March anticipating preseason sales in April. Plan for remaining 250K$ for mid-station double from SMF in January. We will have 400K$ in non-operating fund (i.e., board approval not needed).

We paid a deposit of 191K$ in April that was covered by SMF. Expect another 250 K$ from SMF as noted above.

Will – Rainy day account line, can we break it out to available (operating) and non-operating (encumbered) cash. Andrew agrees. Brian suggested available and non-operating.

Leigh – is this the first year for homeowners to prepay for snowplowing? Does this help cash? Andrew S – Prepaid last year as well. It would have helped cash, but the equivalent amount was spent as capital for a new plow as the existing tractor was not optimal. Now have both vehicles available for plowing.

Will – 250K$ grant for SMF. Are they committed? Andrew S – planned but not a binding commitment. Matt – Timing is what is up in the air. Still committed, planning and working on it.

Geordie – Do they have a total that they have raised against the 250k$? Matt – do not know this number.

Geordie – Can we have a mid-station update? Matt – New haul rope splice finished on Sunday, last chair going up today. On track for December.

Discussion

Will moved to close as there was no additional discussion.

Geordie seconded. Meeting adjourned.