MARKS POINT BOWLING CLUB LIMITED

Transcription

1 MARKS POINT BOWLING CLUB LIMITED Quarterly Financial Statements For the Quarter Ended 31 December 2015

2 1 MARKS POINT BOWLING CLUB LIMITED COMPILATION OF FINANCIAL INFORMATION Scope On the basis of the information provided by the Directors of Marks Point Bowling Club Limited, we have compiled, in accordance with APES 315 'Compilation of Financial Information, the special purpose financial report of the Club for the period ended 31 December 2015 as set out on the following pages. The Directors are solely responsible for the information contained in the special purpose financial report and have determined that the accounting policies used are consistent with the financial reporting requirements of Marks Point Bowling Club Limited and are appropriate to meet the needs of the Directors. Our procedures use accounting expertise to collect, classify and summarise the financial information, which the Directors provided, into a financial report. Our procedures do not include verification or validation procedures. No audit or review has been performed and accordingly no assurance is expressed. To the extent permitted by law, we do not accept liability for any loss or damage, which any person, other than the Club, may suffer arising from any negligence on our part. No person should rely on the abovementioned special purpose financial report without having an audit or review conducted. The special purpose financial report was prepared exclusively for the benefit of the Directors and the purpose identified above. We do not accept responsibility to any other person for the contents of the special purpose financial report. CUTCHER & NEALE CHARTERED ACCOUNTANTS Nick Nancarrow Director 29 February 2016

3 Financial Summary Analysis 2 Percentage change DEC DEC MAR JUN SEP DEC Previous Same $ $ $ $ $ $ Quarter Quarter Last Year % % Profit/(Loss) Bar Trading 63% (5%) - 45,554 36,243 36,396 26,521 43,322 Profit/(Loss) Poker Machine Trading (41%) (45%) - 98,314 91,164 89,247 92,374 54,205 Profit/(Loss) Bowling & Greens Trading (179%) (161%) - (6,642) (5,507) 475 (6,217) (17,321) Paper Trading & Other Income 212% 207% - 34,966 (1,810) 8,592 34, ,346 27% 9% - 172, , , , ,552 Less: Other Expenses (8%) (6%) - 118,171 93, , , ,513 Net Operating Profit /(Loss) 183% 43% - 54,021 26,298 (28,003) 27,239 77,039 Non Cash Charges 2% 12% - 27,319 26, ,958 30,548 Net Profit /(Loss) Before Income Tax 1,810% 74% - 26,702 (492) (28,580) (2,719) 46,491 Income Tax Expense /(Benefit) 0% 0% Profit /(Loss) After Income Tax 1,810% 74% - 26,702 (492) (28,580) (2,719) 46,491 Profit / (Loss) After Income Tax $60,000 $40,000 $20,000 $0 -$20,000 -$40,000 Last 5 quarters 2016 Last 5 quarters 2015 Summary of Results The Club has reported an operating profitfor this quarter of $46,491. This compares to a profit $26,702 for the same quarter as last year. This quarters result has been impacted by a significant decrease in poker machine revenue due to the closure of the outdoor gaming area. It is also noted that the club has received approx $100k in insurance proceeds this quarter which has assisted with this quarters profit result. YTD the club has posted a profit of $44k, however this does include insurance proceeds of approx $120k. This time last year the club posted a profit of $11k. The decline in poker machine revenue has impacted on the YTD result as well. We note that the six months results do not include any leave movements for employees. Calculations from the auditor as at 30/6/15 will be required so leave movements can be accounted for in future quarters.

4 Earnings Before Interest, Tax, Depreciation Amortisation (EBITDA) 3 Percentage Change DEC DEC MAR JUN SEP DEC Previous Same $ $ $ $ $ $ Quarter Quarter % Last Year % Operating Result After Tax 1,810% 74% - 26,702 (492) (28,580) (2,719) 46,491 Add Back - Income Tax 0% 0% Depreciation 0% 4% - 26,022 26,022 23,381 27,000 27,000 - Interest Expense 20% 174% - 1, ,024 2,958 3,548 - Loss/(Profit) on Sale 0% 0% (23,828) - - Less - Interest Received 1,082% (68%) - 1, , Insurance Proceeds 394% 100% , ,925 (486%) (148%) - 52,605 26,236 (29,517) 6,564 (25,335) Total Revenue (2%) (17%) - 446, , , , ,258 EBITDA % #DIV/0! 11.8% 6.9% (7.6%) 1.7% (6.8%) Average EBITDA - past 5 quarters #DIV/0! #DIV/0! #DIV/0! 3.2% 1.2% EBITDARD (345%) (146%) - 52,705 26,236 (29,043) 9,853 (24,114) EBITDARD % #DIV/0! 11.8% 6.9% (7.5%) 2.6% (6.5%) 30.00% EBITDA 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec % Severe Financial Distress Financial Distress Stable - Maintain operations Solid - Critically Evaluate Capex Ability to reinvest and reinvent EBITDA % Trend Line Linear (EBITDA %) TO ACHIEVE THE FOLLOWING TARGET EBITDA %, AS AN APPROXIMATION, THE CLUB NEEDS TO INCREASE CASH MARGIN BY: 10% EBITDA / REVENUE 16.8% or $ 62,361 Per quarter or $ 4,797 Per week 15% EBITDA / REVENUE 21.8% or $ 80,874 Per quarter or $ 6,221 Per week 20% EBITDA / REVENUE 26.8% or $ 99,387 Per quarter or $ 7,645 Per week 25% EBITDA / REVENUE 31.8% or $ 117,900 Per quarter or $ 9,069 Per week

5 Revenue Analysis 4 Percentage change DEC DEC MAR JUN SEP DEC Previous Same $ $ $ $ $ $ Quarter Quarter Last Year % % Bar sales 16% (1%) - 195, , , , ,907 % of total revenue #DIV/0! 43.8% 46.5% 46.8% 41.7% 40.9% Poker machine net receipts (34%) (38%) - 130, , , ,274 81,071 % of total revenue #DIV/0! 29.3% 32.0% 30.7% 30.9% 17.2% Bowling Club & Greens 24% 14% - 31,245 36,394 32,355 28,694 35,691 % of total revenue #DIV/0! 7.0% 9.6% 8.3% 7.2% 7.6% Keno & TAB 47% (14%) - 19,284 10,914 10,730 11,245 16,575 % of total revenue #DIV/0! 4.3% 2.9% 2.8% 2.8% 3.5% Raffles & Bingo 10% (22%) - 40,852 30,036 29,543 28,918 31,856 % of total revenue #DIV/0! 9.1% 7.9% 7.6% 7.3% 6.7% Other income 182% 297% - 28,723 4,146 15,140 40, ,083 % of total revenue #DIV/0! 6.4% 1.1% 3.9% 10.1% 24.2% Total revenue 18% 6% - 446, , , , ,183 Sources of Revenue Dec 15 Sep 15 Jun 15 Mar 15 Dec % 41.7% 46.8% 46.5% 43.8% 17.2% 30.9% 30.7% 32.0% 29.3% 6.7% 24.2% 7.3% 9.1% 7.9% 7.6% 3.9% 1.1% 6.4% 10.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Bar sales Poker machine net receipts Keno & TAB Raffles & Bingo Other income Bowling Club & Greens

6 2 Year Analysis - Balance Sheet 5 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 2 year $ $ $ $ $ $ $ $ $ Average FINANCIAL POSITION Current Assets , , , , , , ,874 Current Liabilities , , , , , , ,691 Working Capital ,019 72,745 98,275 35,478 (55,489) 19,616 21,183 Working Capital Ratio #DIV/0! #DIV/0! #DIV/0! #DIV/0! Total Cash , , , , , , ,077 Total Borrowings ,000 50,000 50,000 50, , ,383 48,268 Net Assets ,075,959 1,102,661 1,102,170 1,030,810 1,028,091 1,074, ,697 Working Capital 120, ,000 80,000 60,000 40,000 20,000 - (20,000) (40,000) (60,000) (80,000) Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec Working Capital Working Capital Ratio

7 2 Year Analysis - Income Statement 6 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 2 year $ $ $ $ $ $ $ $ $ Average BAR TRADING Sales , , , , , , ,820 Gross Profit % #DIV/0! #DIV/0! #DIV/0! 52.4% 56.7% 57.6% 52.7% 54.2% 57.3% #DIV/0! Net Profit % Revenue #DIV/0! #DIV/0! #DIV/0! 19.4% 23.3% 20.5% 20.0% 16.0% 22.5% #DIV/0! Bar Wages as a % of Bar Sales #DIV/0! #DIV/0! #DIV/0! 31.5% 30.0% 31.7% 23.6% 33.8% 32.0% #DIV/0! POKER MACHINE TRADING Net Revenue , , , , ,274 81,071 79,838 Net Profit % Revenue #DIV/0! #DIV/0! #DIV/0! 77.0% 75.1% 74.9% 74.6% 74.9% 66.9% #DIV/0! Number of Machines Revenue Per Machine #DIV/0! - - 4,440 4,674 4,345 4,270 4,403 2,895 #DIV/0! Revenue per $1 of Bar Sales #DIV/0! #DIV/0! #DIV/0! $ 0.78 $ 0.67 $ 0.69 $ 0.66 $ 0.74 $ 0.42 #DIV/0! NET PROFIT ANALYSIS Bar Net Profit as a % of Total Revenue #DIV/0! #DIV/0! #DIV/0! 8.2% 10.2% 9.5% 9.3% 6.7% 9.2% #DIV/0! PM Net Profit as a % of Total Revenue #DIV/0! #DIV/0! #DIV/0! 25.5% 22.0% 24.0% 22.9% 23.2% 11.5% #DIV/0! Profit/(Loss) after Income Tax (15,303) 26,702 (492) (28,580) (2,719) 46,491 2,900 EBITDA ,026 52,605 26,236 (29,517) 6,564 (25,335) 4,842 EBITDA as a % of Total Revenue #DIV/0! #DIV/0! #DIV/0! 3.0% 11.8% 6.9% (7.6%) 1.7% (6.8%) #DIV/0!

8 Bar Analysis 7 Percentage change DEC DEC MAR JUN SEP DEC Previous Same $ $ $ $ $ $ Quarter Quarter Last Year % % Revenue Gross Bar Sales 16% (1%) - 195, , , , ,907 Total Revenue 16% (1%) - 195, , , , ,907 Less: Cost of Goods Sold 8% (3%) - 84,830 74,947 86,086 76,025 82,363 Gross Profit /(Loss) 23% (0%) - 110, ,911 96,050 90, ,544 Gross Profit % 6% 1% #DIV/0! 56.7% 57.6% 52.7% 54.2% 57.3% Less Expenses Bar Wages & Superannuation 10% 5% - 58,690 56,041 43,014 56,102 61,652 Bar Wastage (77%) (75%) - 2,994 4,539 4,178 3, Freight & Cartage 27% (1%) - 1,508 1,354 1,553 1,179 1,498 Bar Other Expenses 14% 48% - 2,242 3,734 10,909 2,913 3,313 Total Expenditure 6% 3% - 65,434 65,668 59,654 63,541 67,222 Net Profit / (Loss) 63% (5%) - 45,554 36,243 36,396 26,521 43,322 Net Margin as a % of Bar Sales 41% (3%) #DIV/0! 23.3% 20.5% 20.0% 16.0% 22.5% Bar Wages as % Bar Sales (5%) 7% #DIV/0! 30.0% 31.7% 23.6% 33.8% 32.0% Bar Analysis 250, , , ,000 50,000 - Summary of Results Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Gross Bar Sales Gross Profit / (Loss) Total Expenditure Gross Profit % 58.0% 57.0% 56.0% 55.0% 54.0% 53.0% 52.0% 51.0% 50.0% Bar sales have increased by 6% on last quarter but decreased 1% on the same quarter as last year. The bar GP% was high this quarter compared to the previous two quarters and we will be looking for a GP number going forward that does not vary as greatly. Bar wastage is lower this quarter and possibly includes free drinks. Accounting treatment for this needs to be consistently applied.

9 Poker Machine Analysis 8 Dec 13 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Percentage change DEC DEC MAR JUN SEP DEC Previous Same $ $ $ $ $ $ Quarter Quarter Last Year % % Revenue Poker Machine Turnover (13%) (32%) - 1,601,847 1,283,112 1,217,210 1,244,191 1,087,036 Less: Poker Machine Payouts 10% 32% - (1,470,972) (1,161,443) (1,097,643) (1,120,917) (1,005,965) Net Poker Machine Clearances (34%) (38%) - 130, , , ,274 81,071 Net Retention as a % of Revenue #DIV/0! 8.2% 9.5% 9.8% 9.9% 7.5% Less Expenses GST Liability (34%) (38%) - 11,898 11,061 10,870 11,207 7,370 Poker Machine Wages 10% 0% - 7,318 6,927 6,361 6,663 7,325 Other Expenses (8%) (3%) - 10,197 10,202 8,634 10,715 9,856 Total Expenditure (13%) (17%) - 32,561 30,505 30,320 30,900 26,866 Net Profit / (Loss) (41%) (45%) - 98,314 91,164 89,247 92,374 54,205 Gross Revenue / $ Gross Bar Sales #DIV/0! $ 0.67 $ 0.69 $ 0.66 $ 0.74 $ 0.42 Number of Machines Net Clearances Per Machine #DIV/0! 4,674 4,345 4,270 4,403 2,895 Net Margin as a % of Revenue #DIV/0! 75.1% 74.9% 74.6% 74.9% 66.9% Poker Machine Analysis 160, , , ,000 80,000 60,000 40,000 20,000 - Dec 14 Mar 15 Jun 15 Sep 15 Dec % 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Net Poker Machine Clearances Net Retention as a % of Revenue Summary of Results Poker machine turnover is down 13% on last quarter and 32% on the same quarter as last year. The net retention % this quarter was 7.5% which is well down on last quarters result. This decrease has also affected the bottom line for net revenue from poker machines being well down on last quarter and the same quarter as last year. The club should investigate further its outdoor gaming area as this will have a significant impact on the club improving its financial position in the near future.

10 Bowling Club and Greens Analysis 9 Bowling Club & Greens Percentage Change DEC DEC MAR JUN SEP DEC Previous Same $ $ $ $ $ $ Quarter Quarter % Last Year % Income 24% 14% - 31,245 36,394 32,355 28,694 35,691 Bowls R&M and Other Expenses 50% 57% - 26,371 31,232 20,285 27,590 41,370 Wages 59% 1% - 11,516 10,669 11,595 7,321 11,642 Net Profit / (Loss) (179%) (161%) - (6,642) (5,507) 475 (6,217) (17,321) Bowling Club & Greens 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Bowling & Greens Income Bowling & Greens Expenditure Bowling & Greens Wages SUMMARY OF RESULTS Bowls income has increased this quarter and mainaly associated with the mens fees and mens raffles income increasing. Bowls expenses have also increased with an increase in mens and ladies expenses and also mens prizes.

11 Other Income 10 Percentage change DEC DEC MAR JUN SEP DEC Previous Same $ $ $ $ $ $ Quarter Quarter Last Year % % Paper Trading Analysis Keno Trading Profit /(Loss) 72% (24%) - 13,062 5,103 4,636 5,798 9,956 Tab Trading Profit /(Loss) (6%) (111%) - (3,883) (8,378) (7,898) (7,690) (8,180) Raffle Trading Profit/(Loss) (1,708%) (275%) - 2,320 (215) (789) (225) (4,068) Bingo Trading Profit/(Loss) (14%) 15% - (5,256) (2,466) (2,497) (3,887) (4,445) (12%) (208%) - 6,243 (5,956) (6,548) (6,004) (6,737) Other Income Interest Received 1,082% (68%) - 1, , Poker Machine GST Rebate (25%) (75%) - 17, ,727 4,295 Commissions Received (49%) 33% - 1,456 1,159 1,731 3,780 1,943 Members Subscriptions (9%) 83% ,947 1,892 1,726 Insurance Recovery 394% 100% , ,925 Coffee Machine (29%) (29%) - 2,872 2,015 2,406 2,873 2,046 Donations & Sponsorship 100% (78%) - 2,169-3, Other (78%) (54%) - 2, ,873 5,502 1, % 297% - 28,723 4,146 15,140 40, ,083 Net Other Income 212% 207% - 34,966 (1,810) 8,592 34, ,346 Other Income 140, , ,000 80,000 60,000 40,000 20,000 - (20,000) Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Keno Trading Profit / (Loss) Tab Trading Profit / (Loss) Raffle Trading Profit/(Loss) Bingo Trading Profit/(Loss) Other Income Summary of Results This quarter the club received the annual bonus keno commission of $5k. The loss from raffles this quarter is higher with similar expenses compared to last year, however revenue from raffles was down $6k to the corresponding period. Insurance recovery over the last six months relates to $42k for fraud and $80k for the bar. It is noted that $138k has been received for the Greens in January Other income was high last quarter as included ticket sales to a show in the club.

12 Expenditure Analysis 11 Percentage Change DEC DEC MAR JUN SEP DEC Member Expenses Previous Same Occupancy Expenses Quarter Quarter $ $ $ $ $ $ Administrative Expenses % Last Year % Expenses Member Expenses (23%) 71% - 11,303 27,658 28,524 25,054 19,284 % of total expenses #DIV/0! 9.6% 29.5% 17.5% 20.9% 17.4% Occupancy Expenses (6%) 0% - 39,814 39,874 52,268 42,454 39,921 % of total expenses #DIV/0! 33.7% 42.5% 32.1% 35.4% 36.1% Administrative Expenses (2%) (23%) - 67,054 26,260 81,921 52,376 51,308 % of total expenses #DIV/0! 56.7% 28.0% 50.3% 43.7% 46.4% (8%) (6%) - 118,171 93, , , ,513 Expenses Dec % 36.1% 17.4% Sep % 35.4% 20.9% Jun % 32.1% 17.5% Mar % 42.5% 29.5% Dec % 33.7% 9.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Administrative Expenses Occupancy Expenses Member Expenses SUMMARY OF RESULTS Members Expenses Significant fluctuations include: -Entertainment expenses decreased this quarter as well as promotion expenses. The club did inur member draw expenses of $4,600this qtr compared to only $550 last quarter. (This expense should be provided for (raised as a liability) in the future) Clubhouse Expenses Significant fluctuations include: -R&M has continued to decrease over the last two quarters. Administrative Expenses Significant fluctuations include: -Admin wages have decreased over the last two quarters. -Legal costs over the last two quarters relate to various matters

13 Wages Analysis 12 Percentage change DEC DEC MAR JUN SEP DEC Previous Same $ $ $ $ $ $ Quarter Quarter Last Year % % Wages Analysis Bar 10% 5% - 58,690 56,041 43,014 56,102 61,652 Poker Machine 10% 1% - 7,913 7,484 6,939 7,297 8,007 Bowling Club & Greens 59% 1% - 12,600 11,683 12,259 7,992 12,727 Paper Gaming 10% 11% - 9,392 8,594 8,048 9,474 10,408 Cleaning 7% (10%) - 5,803 5,759 5,609 4,851 5,214 Administration 14% (35%) - 17,494 17,648 24,854 9,890 11,321 Total Wages 14% (2%) - 111, , ,723 95, ,329 Total Revenue 18% 6% - 446, , , , ,183 Wages % of Total Revenue #DIV/0! 25.0% 28.2% 25.9% 24.0% 23.2% Average Wages % for Prev 5 Qtrs #DIV/0! #DIV/0! #DIV/0! 26.9% 25.3% Wages Analysis $500,000 $400,000 $300,000 $200,000 $100,000 $0 Dec 14 Mar 15 Jun 15 Sep 15 Dec % 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Total Revenue Wages % of Total Revenue Summary of Results Total wages for the quarter has increased 14% on last quarter and decreased 2% on the same quarter as last year. The increaseinwages this quarter compared to last quarter is mainly in greens and bar. Admin wages have decreased over the last two quarters.

14 Balance Sheet 13 BALANCE SHEET DEC DEC DEC CURRENT ASSETS CASH 1 145, ,944 - RECEIVABLES 2 41,104 9,110 - INVENTORIES 3 20,725 15,786 - OTHER CURRENT ASSETS 4 23,197 5, , ,875 - NON CURRENT ASSETS PROPERTY, PLANT & EQUIPMENT 5 1,068,965 1,012,500 - OTHER 6 73,527 73,527 - INVESTMENTS TOTAL NON CURRENT ASSETS 1,142,492 1,086,027 - TOTAL ASSETS 1,373,050 1,356,902 - CURRENT LIABILITIES PAYABLES & ACCRUALS 8 137, ,235 - PROVISIONS 9 36,537 32,895 - BORROWINGS 10 36, TOTAL CURRENT LIABILITIES 210, ,130 - NON CURRENT LIABILITIES PAYABLES & ACCRUALS PROVISIONS ,111 - BORROWINGS 13 86,854 50,000 - TOTAL NON-CURRENT LIABILITIES 87,527 56,111 - TOTAL LIABILITIES 298, ,241 - NET ASSETS 1,074,581 1,102,661 - MEMBERS FUNDS RETAINED PROFITS 1,077,250 1,102,661 - TOTAL MEMBERS FUNDS 1,077,250 1,102,661 - OUT

15 Balance Sheet 14 DEC DEC DEC NOTE 1. CASH CASH ON HAND 46,250 46,500 - WESTPAC ,259 44,294 - WESTPAC TERM DEPOSIT 42,663 41,340 - BUSINESS LOAN - 50,000 - MAXI - DIRECT 2 3,028 - MASTERCARD ACCOUNT ,936 - LADIES - TRADING ACCOUNT ,774 9,024 - LADIES - GBS ,619 15,048 - LADIES - PETTY CASH MENS BOWLING CLUB 14,613 15,607 - MENS INVESTMENT ACCOUNT ,060 7,956 - MENS PETTY CASH (295) 2,464 - SOCIAL CLUB 1 1, , ,944 - NOTE 2. RECEIVABLES & PREPAYMENTS SUNDRY DEBTORS 27,791 5,928 - TRADE DEBTORS 2,791 6,226 - CLEARING ACCOUNT 5,807 (3,294) - CASH PURCHASES UNDEPOSITED FUNDS 2,185 - ELECTRONIC CLEARING ACCOUNT 2,280-41,104 9,110 - NOTE 3. INVENTORIES STOCK ON HAND 20,725 15,786-20,725 15,786 - NOTE 4. OTHER ASSETS PREPAYMENTS 23,197 5,035-23,197 5,035 -

16 Balance Sheet 15 DEC DEC DEC NOTE 5. PROPERTY, PLANT & EQUIPMENT LAND & BUILDINGS 584, ,210 - LESS: ACCUMULATED DEPRECIATION (6,933) (6,375) - 577, ,835 - BUILDING IMPROVEMENTS 77,709 73,889 - LESS: ACCUMULATED DEPRECIATION (28,693) (17,806) - 49,016 56,083 - BUILDINGS & GREENS 643, ,282 - LESS: ACCUMULATED DEPRECIATION (482,695) (453,908) - 160, ,374 - PLANT & EQUIPMENT 847, ,713 - LESS: ACCUMULATED DEPRECIATION (721,146) (677,102) - 126, ,611 - POKER MACHINES 502, ,441 - LESS: ACCUMULATED DEPRECIATION (429,237) (413,844) - 73,205 28,597 - CAPITAL WORKS IN PROGRESS 82, ,068,965 1,012,500 - NOTE 6. OTHER POKER MACHINE LICENCES 73,527 73,527-73,527 73,527 - NOTE 7. INVESTMENTS SHARES - CO-OPERATIVE FEDERATION OF NSW

17 Balance Sheet 16 DEC DEC DEC NOTE 8. PAYABLES & ACCRUALS (CURRENT) TRADE CREDITORS 73,659 61,708 - CLEARING ACCOUNTS 2,663 1,552 - GST PAYABLE 4,206 82,663 - MEMBERS SUBSCRIPTIONS IN ADVANCE 14, OTHER CREDITORS & ACCRUALS 42,801 19, , ,235 - NOTE 9. PROVISIONS (CURRENT) PROVISION FOR ANNUAL LEAVE 24,248 28,048 - PROVISION LONG SERVICE LEAVE 12,289 4,847-36,537 32,895 - NOTE 10. BORROWINGS (CURRENT) CAPITAL FINANCE 1 27, CAPITAL FINANCE 2 8, ,

18 Balance Sheet 17 DEC DEC DEC NOTE 11. PAYABLES & ACCRUALS (NON-CURRENT) OTHER CREDITORS & ACCRUALS NOTE 12. PROVISIONS (NON-CURRENT) PROVISION LONG SERVICE LEAVE 673 6,111 - MEMBERS SHARE CAPITAL ,111 - NOTE 13. BORROWINGS (NON-CURRENT) WESTPAC LOAN 69,982 50,000 - CAPITAL FINANCE 1 16, UNEXPIRED INTEREST (3,365) - - CAPITAL FINANCE 2 5, UNEXPIRED INTEREST (1,072) ,854 50,000 -

19 Income Statement 18 SUMMARY STATEMENT Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 DEC MAR JUN SEP DEC YTD YTD INCOME PROFIT/(LOSS) BAR TRADING 45,554 36,243 36,396 26,521 43,322 69,843 80,965 PROFIT/(LOSS) POKER MACHINE TRADING 98,314 91,164 89,247 92,374 54, , ,659 PROFIT/(LOSS) BOWLING & GREENS TRADING (6,642) (5,507) 475 (6,217) (17,321) (23,538) (6,845) PROFIT/(LOSS) KENO TRADING 13,062 5,103 4,636 5,798 9,956 15,754 20,655 PROFIT/(LOSS) TAB TRADING (3,883) (8,378) (7,898) (7,690) (8,180) (15,870) (18,286) PROFIT/(LOSS) RAFFLE TRADING 2,320 (215) (789) (225) (4,068) (4,293) 3,414 PROFIT/(LOSS) BINGO TRADING (5,256) (2,466) (2,497) (3,887) (4,445) (8,332) (14,799) OTHER INCOME 28,723 4,146 15,140 40, , ,532 53,228 TOTAL 172, , , , , , ,991 LESS: EXPENSES OPERATING EXPENSES 118,171 93, , , , , ,869 TOTAL EXPENSES 118,171 93, , , , , ,869 OPERATING PROFIT 54,021 26,298 (28,003) 27,239 77, ,278 67,122 DEDUCT NON CASH CHARGES: LOSS/(PROFIT) ON SALE OF FIXED ASSETS - - (23,828) DEPRECIATION 26,022 26,022 23,381 27,000 27,000 54,000 52,044 1, ,024 2,958 3,548 6,506 3,678 27,319 26, ,958 30,548 60,506 55,722 PROFIT/(LOSS) BEFORE INCOME TAX 26,702 (492) (28,580) (2,719) 46,491 43,772 11,400 INCOME TAX EXPENSE / (BENEFIT) PROFIT/(LOSS) AFTER INCOME TAX 26,702 (492) (28,580) (2,719) 46,491 43,772 11,400

20 Income Statement 19 BAR TRADING ACCOUNT DEC MAR JUN SEP DEC YTD YTD GROSS BAR SALES 195, , , , , , ,394 TOTAL 195, , , , , , ,394 LESS: COST OF GOODS SOLD OPENING STOCK 15,786 15,786 15,786 17,060 14,160 17,060 15,786 BAR PURCHASES 84,830 74,947 87,360 73,125 88, , ,717 CLOSING STOCK (15,786) (15,786) (17,060) (14,160) (20,725) (20,725) (15,786) TOTAL COST OF GOODS SOLD 84,830 74,947 86,086 76,025 82, , ,717 GROSS PROFIT/(LOSS) 110, ,911 96,050 90, , , ,677 GROSS PROFIT % SALES 56.68% 57.62% 52.74% 54.23% 57.3% 55.9% 54.6% LESS EXPENSES BAR WAGES 54,310 51,897 35,410 51,305 56, , ,533 BAR SUPERANNUATION 4,380 4,144 7,604 4,797 5,248 10,045 8,602 REPAIRS & MAINTENANCE 1,591 1,855 10,101 1,932 2,518 4,450 2,213 BAR WASTAGE 2,994 4,539 4,178 3, ,106 2,994 FREIGHT & CARTAGE 1,508 1,354 1,553 1,179 1,498 2,677 2,895 GAS ,776 1,475 BAR ACCOUNT - 1, TOTAL 65,434 65,668 59,654 63,541 67, , ,712 BAR TRADING NET PROFIT 45,554 36,243 36,396 26,521 43,322 69,843 80,965 % SALES 23.26% 20.49% 19.98% 15.97% 22.5% 19.5% 21.4% POKER MACHINES TRADING ACCOUNT POKER MACHINE TURNOVER 1,601,847 1,283,112 1,217,210 1,244,191 1,087,036 2,331,227 3,166,312 LESS: POKER MACHINE PAYOUTS (1,470,972) (1,161,443) (1,097,643) (1,120,917) (1,005,965) (2,126,882) (2,893,355) NET POKER MACHINE CLEARANCES 130, , , ,274 81, , ,957 LESS EXPENSES GST LIABILITY 11,898 11,061 10,870 11,207 7,370 18,577 24,814 DATA MONITORING FEE 3,420 3,420 3,420 3,497 3,519 7,016 6,811 REPAIRS & MAINTENANCE 3,464 3,780 2,982 3,691 3,112 6,803 7,868 LICENCE AGREEMENT 3,148 2,315 4,455 2,315 2,315 4,630 5,463 POKER MACHINE PROMOTIONS 2,718 2,445 1,654 2,893 2,543 5,436 4,971 POKER MACHINE WAGES 7,318 6,927 6,361 6,663 7,325 13,988 14,224 POKER MACHINE SUPERANNUATION ,316 1,147 TOTAL 32,561 30,505 30,320 30,900 26,866 57,766 65,298 POKER MACHINE TRADING PROFIT/(LOSS) 98,314 91,164 89,247 92,374 54, , ,659 % SALES 75.12% 74.93% 74.64% 74.93% 66.9% 71.7% 76.1%

21 Income Statement 20 BOWLING CLUB & GREENS TRADING ACCOUNT DEC MAR JUN SEP DEC YTD YTD GREEN FEES 10,673 10,682 8,932 9,245 8,450 17,695 21,101 BOWLS SALES LADIES - FEES 3,055-1,227 1,365 1,064 2,429 5,699 MENS - FEES ,988 7,900 3,162 7,758 10,920 14,532 LADIES - RAFFLES 4,790-3,768 4,288 4,448 8,736 9,830 MENS - RAFFLES 11,100 5,038 9,226 5,974 8,260 14,234 12,983 LADIES - SUNDRY INCOME 667 4,449 1,352 4,593 5,669 10,262 1,101 MENS - SUNDRY INCOME - - (200) TOTAL 31,245 36,394 32,355 28,694 35,691 64,385 65,799 LESS: EXPENSES WAGES 11,516 10,669 11,595 7,321 11,642 18,963 24,244 SUPERANNUATION 1,084 1, ,085 1,756 2,268 REPAIRS & MAINTENANCE 3,843 3, ,679 1,851 12,530 4,772 BOWLS DIRECT COSTS LADIES - EXPENSES 4,397 5,288 1,379 7,615 13,998 21,613 9,692 MENS - EXPENSES 4,061 16,116 9,494 1,697 11,581 13,278 10,292 LADIES - RAFFLES 1,780-1,085 1,986 1,855 3,841 3,134 MENS - RAFFLES 7,339 5,051 5,103 4,487 5,983 10,470 14,266 MENS - PRIZES , ,017 5,381 - TROPHIES & PRIZE MONEY 3, ,562 TOTAL EXPENSES 37,887 41,901 31,880 34,911 53,012 87,923 72,644 BOWLING & GREENS TRADING PROFIT/(LOSS) (6,642) (5,507) 475 (6,217) (17,321) (23,538) (6,845) KENO TRADING ACCOUNT KENO COMMISSION 18,301 10,283 9,693 10,684 15,763 26,447 31,256 KENO INCOME 18,301 10,283 9,693 10,684 15,763 26,447 31,256 LESS: EXPENSES KENO WAGES 3,659 3,464 3,180 3,332 3,662 6,994 7,112 KENO SUPERANNUATION KENO EXPENSES 1,283 1,438 1,588 1,242 1,804 3,046 2,916 TOTAL EXPENSES 5,239 5,180 5,057 4,886 5,807 10,693 10,601 KENO TRADING PROFIT/(LOSS) 13,062 5,103 4,636 5,798 9,956 15,754 20,655

22 Income Statement 21 TAB TRADING ACCOUNT DEC MAR JUN SEP DEC YTD YTD TAB COMMISSION , ,373 1,337 TOTAL , ,373 1,337 LESS: TAB EXPENSES TAB WAGES 3,659 3,464 3,180 3,332 3,662 6,994 7,112 TAB SUPERANNUATION TAB EXPENSES 910 5,267 5,466 4,607 4,989 9,596 11,938 TOTAL EXPENSES 4,866 9,009 8,935 8,251 8,992 17,243 19,623 TAB TRADING PROFIT/(LOSS) (3,883) (8,378) (7,898) (7,690) (8,180) (15,870) (18,286) RAFFLE TRADING ACCOUNT RAFFLE INCOME 35,785 25,883 25,750 25,332 29,209 54,541 61,413 TOTAL 35,785 25,883 25,750 25,332 29,209 54,541 61,413 LESS: RAFFLE EXPENSES RAFFLE EXPENSES 33,465 26,098 26,539 25,557 33,277 58,834 57,999 TOTAL EXPENSES 33,465 26,098 26,539 25,557 33,277 58,834 57,999 RAFFLE TRADING PROFIT/(LOSS) 2,320 (215) (789) (225) (4,068) (4,293) 3,414 BINGO TRADING ACCOUNT BINGO TAKINGS 5,067 4,153 3,793 3,586 2,647 6,233 11,848 TOTAL 5,067 4,153 3,793 3,586 2,647 6,233 11,848 LESS: EXPENSES BINGO EXPENSES 8,843 5,509 5,180 5,287 4,690 9,977 22,945 BINGO WAGES 1,352 1,014 1,014 1,999 2,197 4,196 3,381 BINGO SUPERANNUATION TOTAL EXPENSES 10,323 6,619 6,290 7,473 7,092 14,565 26,647 BINGO TRADING PROFIT/(LOSS) (5,256) (2,466) (2,497) (3,887) (4,445) (8,332) (14,799)

23 Income Statement 22 DEC MAR JUN SEP DEC YTD YTD OTHER INCOME COMMISSION - ATM ,930 1,604 4,534 1,581 COMMISSION - VENDING MACHINES ,189 1,825 COFFEE MACHINE 2,872 2,015 2,406 2,873 2,046 4,919 3,398 INTEREST RECEIVED 1, , ,490 MEMBERS SUBSCRIPTIONS ,947 1,892 1,726 3,618 19,260 POKER MACHINE GST REBATE 17, ,727 4,295 10,022 20,726 BUS INCOME SUNDRY INCOME - - 3, INSURANCE RECOVERY , , ,562 - DONATIONS & SPONSORSHIPS 2,169-3, ,169 TICKET SALES 2, ,432-4,432 2,491 KIDS ZONE ,620 - TOTAL 28,723 4,146 15,140 40, , ,532 53,228 LESS: EXPENSES MEMBER EXPENSES ADVERTISING 4,744 4,840 4,533 5,228 3,283 8,511 8,584 MEMBERSHIP DRAW 2,400 1,900 8, ,600 5,150 4,800 POKER / TRIVIA DIRECT COSTS - ENTERTAINMENT ,611 11,085 12,521 6,126 18, DIRECT COSTS - FOOD PURCHASES DIRECT COSTS - MEMBERSHIPS , ,328 DIRECT COSTS - PROMOTIONS 2, ,035 6,380 4,877 11,257 3,058 11,303 27,658 28,524 25,054 19,284 44,338 28,687 OCCUPANCY EXPENSES CLEANING MATERIALS ,056 2, CLEANING WAGES 5,803 5,759 5,609 4,851 5,214 10,065 11,724 CLEANING - CONTRACTOR ELECTRICITY 9,646 11,345 9,619 9,712 10,047 19,759 20,610 RATES 1,872 1,872 1,872 1,989 1,988 3,977 3,757 REPAIRS & MAINTENANCE 4,699 2,823 11,343 8,886 4,672 13,558 12,652 TELEPHONE 2,718 1,678 3,003 1,724 2,509 4,233 5,376 EQUIPMENT UNDER $ ,761 3, DIRECT COSTS - COFFEE MACHINE 2,430 2,058 2,109 2,506 1,419 3,925 3,526 DIRECT COSTS - BISTRO ,441 CLUB AMENITIES 8,597 6,127 7,816 7,430 6,440 13,870 19,115 FLEXIRENT - SOLAR 3,250 3,250 3,250 3,250 3,250 6,500 6,500 WATER - 2,323 3,302 1,453 1,525 2,978 1,612 39,814 39,874 52,268 42,454 39,921 82,375 87,459

24 Income Statement 23 ADMINISTRATIVE EXPENSES DEC MAR JUN SEP DEC YTD YTD ACCOUNTING FEES - C&N ,500 1,500 3,000 - AUDIT & ACCOUNTANCY FEES ,160 3,750 4,200 7,950 4,500 BAD DEBTS - - 1, BANK CHARGES ,464 BORROWING COSTS UNDERS / OVERS 1, (3,541) (584) 4 (580) 2,645 CONTRACTOR / PROFESSIONAL FEES 10, ,450 5,775 3,209 8,984 10,768 DIRECTORS EXPENSES - EXPENSES 1,409 1, ,523 2,876 - HONOURARIUMS 7,000-4,000 (4,000) 3,000 (1,000) 3,000 8,409 1,390 4,421 (3,420) 3, ,876 DONATIONS & SPONSORSHIPS ,289 1,221 4, INSURANCE 10,110 7,856 2,120 14,085 12,937 27,022 24,393 LEGAL COSTS 1,365 1, ,200 1,400 5,600 1,540 LEASE - PHOTOCOPIER , ,442 1,860 LEASE - MULTISCREEN ,739 1,740 MOTOR VEHICLE 1,088 1,142 1,207 3,073 1,812 4,885 3,935 PRINTING, STATIONERY & STAMPS 2,113 1, ,261 1,616 3,877 4,118 SALARIES & WAGES WAGES - ADMINISTRATION 15,532 15,755 19,933 9,890 11,321 21,211 53,404 SECURITY SERVICES 458 1,278 1, ,232 1,025 SOFTWARE & COMPUTER EXPENSES 1,235 1, ,062 2,313 3,375 2,470 STAFF AMENITIES & UNIFORMS 1, , ,554 2,124 STAFF TRAINING SUBSCRIPTIONS & AFFILIATIONS 791 1,180 3, ,416 2,590 SUNDRY EXPENSES 7,730 (13,153) 12, ,282 SUPERANNUATION 1,962 1,893 4,921 1,380 1,571 2,951 4,677 67,054 26,260 81,921 52,376 51, , ,723 TOTAL EXPENSES 118,171 93, , , , , ,869