Beaver Creek Resort Company of Colorado For the Period October 1, 2018 Through September 30, 2019
Beaver Creek Resort Company of Colorado Table of Contents Page Overview........................... 1 Statement of Operations.............. 4 Revenues........................... 5 Expenses........................... 6 Expenditures........................ 7 Statement of Cash Flows.............. 8 Statement of Financial Position........ 9
BEAVER CREEK RESORT COMPANY OF COLORADO Fiscal Year 2018 Financial Results Net income for fiscal year ( FY ) 2018 was $2,454,000. Total revenues exceeded budget by $952,000. Civic, Lodging Civic and Mountain and Recreation Assessments fell short of budget by $1,158,000 which was due to the historically low snow conditions from November through January. Real Estate Transfer Assessments exceeded budget by $2,090,000. Real estate sales were strong throughout FY 2018 with both condominium/townhome sales and single family/duplex sales exceeding budget. There were savings in expenses of $252,000. Activities and events and marketing had a combined savings of $629,000. These savings were offset by overages in transportation due to vehicle leases and parking lot bus repairs. The Beaver Creek Resort Company ( Resort Company ) spent $794,000 on capital projects in FY 2018. Projects included landscaping improvements, lighting enhancements, plaza furnishings, digital kiosks, recycling containers, ski and bike racks, fire pit and parking lot improvements. Other capital expenditures included maintenance of existing assets and equipment replacement. The unrestricted cash balance went from $7,123,000 at the end of FY 2017 to $9,813,000 at the end of FY 2018. Currently the Resort Company has no outstanding debt. Fiscal Year 2019 Proposed Budget The proposed FY 2019 budget shows year-end net income of $516,000 with an ending unrestricted cash balance of $8,576,000. Revenues are budgeted at $21,737 which is a decrease of $884,000 from FY 2018 revenues. Total expenses are budgeted at $21,222,000 compared to FY 2018 expenses of $20,168,000. This is an increase of $1,054,000 or 5.2%. Revenues 1. Common Assessments there will be no Common Assessment in FY 2019. 2. Civic, Lodging Civic and Mountain and Recreation Assessments the FY 2019 budget anticipates an increase of $528,000 or a 3.9% increase over FY 2018. This increase is made up of increased guest visits along with an increase in the amount of spending per guest. 1
3. RETA FY 2018 RETA is budgeted at $5,502,000. This is a decrease of $1,092,000 over FY 2018. Due to the volatile nature of real estate sales, a conservative approach was utilized in developing the FY 2019 budget. 4. Special event revenues FY 2019 special event revenues are budgeted at $1,336,000. This represents a $296,000 decrease from FY 2018 revenues. Expenses 1. $2,077,000 in administrative expenses to manage the Resort Company s functional and strategic responsibilities. 2. $3,663,000 for resort activities and events. Key events and activities include: Opening Day Activities Cookie Competition Tree Lighting Members Reception Birds of Prey World Cup Races Welcome Weekend and Haymeadow Park Launch New Year s Eve Family Activities Beaver Creek Winter Culinary Festival Snowshoe Race Series Talons Challenge Beaver Creek Extraordinaire Winter Long Family Programming Blues, Brews and BBQ Festival Craft Beer Festival In the Kitchen Movies Under the Stars July 4 th Celebration Arts Festival Summer Wine and Spirits Festival Oktoberfest Zusammen Concerts by the Creek Rodeo Series Hiking Center Children s Day Camp 3. $1,416,000 contribution to the Vilar Center for the Arts to underwrite operations and the headliner series. 4. $4,815,000 to market Beaver Creek winter and summer seasons and events. 5. $2,684,000 for transportation services. 2
6. $2,461,000 for property maintenance, snowmelt systems, escalators, ice rink operations, parking lot maintenance, plaza maintenance, Creekside Park maintenance, landscaping and village technology. 7. $2,232,000 for Public Safety officers, gate attendants, guest attendant services and wildfire mitigation. 8. $193,000 to provide Design Review Board inspections, plan review, and enforcement services. Capital Expenditures $3,009,000 has been allocated in FY 2019 for capital improvements. $648,000 is for asset maintenance and equipment replacement. The remaining $2,361,000 is earmarked for strategic capital investment. 3
Statement of Operations (in thousands) Fiscal Year 2017 Actual, Fiscal Year 2018 Budget and Actual, and '18 Budget '19 Budget FY 2017 FY 2018 FY 2018 '18 Actual % FY 2019 '18 Actual % Actual Budget Actual Variance Change Budget Variance Change Revenue Common Assessments $0 $0 $0 $0 n.a. $0 $0 n.a. Civic Assessments 7,413 7,803 7,316 (487) -6.2% 7,576 260 3.6% Lodging Civic Assessments 650 685 643 (43) -6.2% 660 18 2.7% Mountain & Recreation Assessments 5,998 6,354 5,726 (628) -9.9% 5,976 250 4.4% Real Estate Transfer Assessments 7,318 4,504 6,594 2,090 46.4% 5,502 (1,092) -16.6% Ice Rink Revenues 375 381 420 40 10.4% 437 17 4.0% Design Review Board Fees 123 123 68 (56) -45.1% 88 20 29.8% Business Licenses 60 60 60 (0) -0.1% 60 0 0.1% Activities and Special Events 1,641 1,688 1,633 (55) -3.3% 1,336 (296) -18.1% Interest and Other Income 44 70 162 92 130.5% 101 (61) -37.6% Capital Contributions 0 0 0 0 n.a. 0 0 n.a. Total Revenue 23,624 21,669 22,622 952 4.4% 21,737 (884) -3.9% Expense Operating Expense Administration 1,707 1,931 1,882 50 2.6% 2,077 (196) -10.4% Activities and Events 3,228 3,732 3,319 413 11.1% 3,663 (345) -10.4% Vilar Center 1,454 1,347 1,451 (104) -7.8% 1,416 35 2.4% Professional Services 362 230 146 85 36.8% 233 (88) -60.3% Group Sales 48 77 68 9 11.2% 81 (12) -18.2% Marketing 4,679 4,996 4,780 216 4.3% 4,815 (36) -0.7% Transportation 1,832 2,002 2,492 (489) -24.4% 2,684 (192) -7.7% Property Maintenance 2,169 2,344 2,413 (69) -2.9% 2,461 (48) -2.0% Public Safety 2,126 2,158 2,155 3 0.2% 2,232 (78) -3.6% Design Review Board 200 195 185 10 5.2% 193 (8) -4.5% Contributions and Memberships 0 0 0 0 n.a. 0 0 n.a. Insurance 254 265 241 25 9.2% 252 (11) -4.7% Total Operating Expense 18,058 19,278 19,130 148 0.8% 20,109 (979) -5.1% Other Expense Interest Expense 23 18 18 0 0.0% 13 5 25.9% Depreciation 1,097 1,101 998 102 9.3% 1,076 (77) -7.8% Property Taxes 13 23 21 1 5.7% 23 (2) -9.9% Other Expense 0 0 0 0 n.a. 0 0 n.a. Total Other Expenses 1,133 1,141 1,038 104 9.1% 1,113 (75) -7.2% Total Expense 19,192 20,419 20,168 252 1.2% 21,222 (1,054) -5.2% Net Income Before Capital Contributions 4,432 1,250 2,454 1,204 96.3% 516 (1,938) -79.0% Capital Contributions 0 0 0 0 n.a. 0 0 n.a. Net Income $4,432 $1,250 $2,454 $1,204 96.3% $516 ($1,938) -79.0% Statement of Operations $30 $25 $20 $24 $19 $23 $22 $20 $21 In Millions $15 $10 $4.4 $5 $0 $2.5 Actual Actual Budget FY 2017 FY 2018 FY 2019 Revenue Expense Net Income/(Loss) $0.5 4
Revenues (in thousands) Fiscal Year 2018 Fiscal Year 2019 Actual of Total Budget of Total Common Assessments $0 0.0% $0 0.0% Civic Assessments 7,316 32.3% 7,576 34.9% Lodging Civic Assessments 643 2.8% 660 3.0% Mountain and Recreation Assessments 5,726 25.3% 5,976 27.5% Real Estate Transfer Assessments 6,594 29.1% 5,502 25.3% Ice Rink Revenues 420 1.9% 437 2.0% Special Event Revenues 1,633 7.2% 1,336 6.1% Other Revenues 290 1.3% 249 1.1% Capital Contributions 0 0.0% 0 0.0% Total Revenues $22,622 100.0% $21,737 100.0% Special Event Revenues Ice Rink Revenues Other Revenues Civic Assessments Real Estate Transfer Assessments Mountain and Recreation Assessments Lodging Civic Assessments 5
Expenses (in thousands) Fiscal Year 2018 Fiscal Year 2019 Actual of Total Budget of Total Administration $1,882 9.3% $2,077 9.8% Activities and Special Events 3,319 16.5% 3,663 17.3% Vilar Center 1,451 7.2% 1,416 6.7% Professional Services 146 0.7% 233 1.1% Group Sales 68 0.3% 81 0.4% Marketing 4,780 23.7% 4,815 22.7% Transportation 2,492 12.4% 2,684 12.6% Property Maintenance 2,413 12.0% 2,461 11.6% Public Safety 2,155 10.7% 2,232 10.5% Design Review Board 185 0.9% 193 0.9% Contributions and Memberships 0 0.0% 0 0.0% Insurance 241 1.2% 252 1.2% Interest Expense 18 0.1% 13 0.1% Depreciation 998 4.9% 1,076 5.1% Property Taxes 21 0.1% 23 0.1% Total Expenses $20,168 100.0% $21,222 100.0% Contributions and Memberships Interest Expense Property Taxes Group Sales Design Review Board Professional Services Insurance Depreciation Vilar Center Administration Public Safety Property Maintenance Transportation Activities and Special Events Marketing 6
Expenditures by Category (in thousands) Fiscal Year 2018 Fiscal Year 2019 Actual of Total Budget of Total Expenses $20,150 96.1% $21,208 87.5% Capital Expenditures 794 3.8% 3,009 12.4% Debt Service 18 0.1% 13 0.1% Total Expenditures $20,962 100.0% $24,231 100.0% Capital Expenditures Debt Service Expenses 7
Statement of Cash Flows and Reserve Balances (in thousands) Fiscal Year 2017 Actual, Fiscal Year 2018 Budget and Actual, and FY 2017 FY 2018 FY 2018 FY 2019 Actual Budget Actual Budget Beginning Cash Balance $3,041 $7,123 $7,123 $9,813 Cash Flow from Operations: Net Income 4,432 1,250 2,454 516 Add Back Depreciation 1,097 1,101 998 1,076 Less Capital Expenditures (849) (1,296) (794) (3,009) Changes in Assets and Liabilities (599) 6 32 181 Cash Flow from Operations 4,082 1,061 2,690 (1,237) Cash Flow from Financing Activities: Net Borrowing / (Payment) 0 0 0 0 Cash Flow from Financing Activities 0 0 0 0 Ending Cash Balance 7,123 8,184 9,813 8,576 Less Outstanding Debt 0 0 0 0 Ending Unrestricted Cash Balance $7,123 $8,184 $9,813 $8,576 Capital Reserve Balance Beginning Maintenance Capital Reserve $1,590 $7,123 $7,123 $9,813 Annual Funding 6,308 1,358 3,381 (589) Maintenance Capital Expenditures (775) (296) (691) (648) Ending Maintenance Capital Reserve $7,123 $8,184 $9,813 $8,576 Beginning Strategic Capital Reserve $0 $0 $0 $0 Annual Funding 74 1,000 104 2,361 Strategic Capital Expenditures (74) (1,000) (104) (2,361) Ending Strategic Capital Reserve $0 $0 $0 $0 Change in Cash Balance in Thousands $11,000 $9,000 $7,000 $5,000 FY 2017, $7,123 FY 2018, $9,813 FY 2019, $8,576 8
(A Colorado Nonprofit Corporation) FINANCIAL POSITION (in thousands) ASSETS September 30 2017 2018 CURRENT ASSETS: Cash and cash equivalents Cash $ 7,123 $ 9,813 Restricted cash-design Review Board deposits 656 598 7,778 10,410 Receivables Common assessments 4 4 Civic assessments 401 384 Lodging Civic assessments 32 28 Mountain and Recreation assessments 62 62 Real estate transfer assessments 77 123 Other receivables 1,215 1,215 1,791 1,816 Deposits and other Prepaid transportation expenses 1,169 1,036 Prepaid expenses and deposits 224 178 Inventory 5 3 1,399 1,217 Total current assets 10,969 13,443 PROPERTY AND EQUIPMENT Leasehold improvements 10,232 10,091 Buildings 8,149 8,011 Vehicles 262 325 Equipment 2,382 2,442 Furniture and fixtures 35 35 Computers and software 248 220 Artwork 302 302 21,610 21,426 Less accumulated depreciation 13,277 13,596 Net property and equipment 8,333 7,830 CONSTRUCTION IN PROGRESS - 299 Total assets $ 19,302 $ 21,572 LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 1,783 $ 1,628 Deferred revenue - - Design Review Board deposits 656 598 Total current liabilities 2,438 2,225 NOTES PAYABLE 0 0 UNRESTRICTED NET ASSETS 16,863 19,347 Total liabilities and net assets $ 19,302 $ 21,572 9