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St. George’s Golf and Country Club2013 Annual Report

October 31, 2013

St. George’s Golf and Country Club 2013 Annual Report

CHAIRMAN’S REPORT TO THE MEMBERSHIP On behalf of your Board of Directors and Management, I am pleased to submit the 2013 Annual Report, including audited financial statements for the year-ended October 31, 2013 and more specific detail on Club operations. It was a very successful year at the Club with many Members commenting on the very positive atmosphere and participation. There were several significant events in the past year that warrant mentioning that helped to create and sustain that ‘buzz’. Most important amongst these events was the official opening of the new Men’s Locker Room. This renovation/expansion exceeded everyone’s expectations and set up the very positive environment on which to start the season. That environment stayed right through the season with the successful launch of the Ladies League, the introduction of the Mixed Member Match Play and the continued success of the Men’s League. Also, the Board changed the date of the Annual General Meeting from February to April. This change was very popular and allowed far more Members to be able to participate. We now have the President’s Spring Cocktail Party and the Annual Meeting on the same day. Another significant event was the introduction of our new golf course architects – Tom Doak and Ian Andrew. The Membership had an opportunity to hear them speak about the proposed Green’s Reconstruction Project and they impressed Members with their expertise and their honest assessment of the project. On the flip side, we had the storm on July 8 that, while doing some significant damage, demonstrated how well the course actually drains and kept us off the course for only a day and a half. The Board also introduced changes to the Limited Play category that proved unpopular. The Board re-evaluated these changes and, with additional input from Members, approved an amended Limited Play category Policy. The Board reviewed our Strategic Plan again this year and updated it to ensure we were continuing to pursue those issues that were critical to supporting the Club’s mission, vision, and values. One of the key outputs from the Strategic Board Offsite discussion in June was the determination by the Board of the four major capital projects for the Club over the next 5+ years (as previously announced in the July CEO/Board Summary). They are:

i) Water Reservoir on the golf course; ii) Clubhouse Roof Replacement; iii) 2nd storey of Men’s Locker Room and 2nd floor of Clubhouse; and iv) Greens Reconstruction.

The Board discussed the priority of these four major projects and deemed the Roof Replacement and Water Reservoir to be the highest priority. Planning has been underway for some time to ascertain the scope and costs of these two projects. We are currently in the final phase of due diligence for both and it is likely they will be presented to the Membership for approval in early 2014. Due diligence for the Greens Reconstruction, 2nd storey of the Men’s Locker Room and the 2nd floor of the Clubhouse is continuing concurrently. The process for each project will be determined in length and scope, by the project itself and not by an artificial time line that we may


impose on it. The Board will make its final proposals to the Members when we are sure that we have all the information that the Board and the Members need to make an informed decision. It is estimated that the combined capital cost of these four projects is approximately $8.5 million. While this number includes estimates for the Water Reservoir and the Roof Replacement that are close to what we believe the final cost will be, the estimates for the 2nd floor of the Clubhouse and the Greens Reconstruction are very rough estimates until more work has been done. St. George’s continues to maintain its prominence in golf as we were most recently ranked #30 in the world by Golf Digest. This most recent ranking marks the highest international ranking the Club has ever received. In 2013, Golf Magazine, Golf Course Architecture Magazine and Platinum Clubs of the World each ranked St. George’s among the top 100 golf courses in the world. Mark Elgner and Craig Sinclair furthered the prominence of St. George’s by winning the World Club Championship competition at Nine Bridges in Seoul, Korea. We are proud to have Members who can compete on the world stage and represent our Club so well. St. George’s remains in a strong position to grow and continue to offer value, service, and enjoyment for its Members. We are not immune to the changing demographics of the golf industry and we will strive to maintain our strong reputation and Membership. 2013 marked the first year in many that the Club was successful in attracting sufficient new Members to have a wait list. Thanks largely to the efforts of our existing Members, we were very successful in recruiting new Members and this will continue to be a focus in the years ahead. Thank you to the Members for supporting your Club in 2013 and we look forward to a great year in 2014! The Members will again be asked to participate in a satisfaction survey to ensure we continue to meet your expectations about Club operations in the next few months. I extend my personal thanks to all of the Board and Committee Members for their volunteer efforts and valuable contributions in providing the Club with their time and expertise and enhancing the stability and strength of the Club. My thanks to Joe Murphy and each and every one of our employees whose dedication helps deliver on our strategy of a world-class golf course and an excellent Club experience. Gail Kilgour, Chair of the Board/President


CHIEF EXECUTIVE OFFICER’S REPORT The Management, Board and Committee Members continue to work diligently on improving the Club’s services and ambience for its Members. It is through their desire to keep St. George’s as a world-class facility that we maintain our prominence in the golf and local community. The Management group continues to focus on:

i) Value and services for Members ii) Cost containment and operating efficiencies iii) Improved Member communications

Value and Services for Members In alignment with our mission and vision of the Club, we continue to offer services commensurate with your expectations. The 2013 Member Satisfaction Survey revealed a 94% overall satisfaction and more impressively, a 73% ‘Very Satisfied’ ranking versus 65% in 2012. While we are pleased with these results, we continue to look at improved services and different offerings that will meet your expectations. The staff performed very well this past year. We retained a third-party consulting group who offers intense hospitality training for high-end service establishments. The training focused specifically on experiential components to service. Based on this concept we developed our new STARS approach to service which aims at improving the total Member experience at the Club from every aspect and touch-point. 2013 marked the first year where our staff participated in a training module that was so in-depth and intense. The precepts of the STARS service standards are reinforced throughout the year through the new Staff News, an interdepartmental refresher meeting which took place mid-season and through department specific training sessions and incentives. Food and beverage service was a key focus in 2013 and we took steps to ensure our Members experienced reliable and consistent service in the dining areas. Corey Ladouceur, Food and Beverage Manager, was hired in early 2013 and he quickly established improved levels of service through effective food and wine service training programs. Members have commented frequently about the service improvements in Food and Beverage, Pro Shop/Back Shop and Locker Room operations. Value-added services and amenities remain a key focus. The new Men’s Locker Room and adjacent lounge clearly improved the atmosphere, service and use of this facility. The Upper Verandah, the most popular dining location, was again very well utilized by Members and their guests! Social events such as the ‘Food and Wine’ evening, Seafood Night and New Year’s Eve were well attended and the Social Committee continues to look at new offerings for our Members in 2014. The new Indoor Golf facilities offered in 2014 promises to be well supported by the Members. A state-of-the-art golf training program is now offered throughout the year which is consistent with our objectives of providing this service to our Members.


Cost Containment/Operating Efficiencies At the 2012 AGM we stated that we needed to set the annual fees commensurate with the services and products expected by our Members and to balance the budget. We further stated that in 2012 and for the foreseeable future, annual fee increases would be in the ‘cost-of-living’ range. We have delivered on this objective as in 2013, and now in 2014, annual fee increases have remained in the cost-of-living range. The operating loss of ($40,000) in 2013 represents a half-percent (.005%) of the total operating budget of $8.470 million. The loss includes $25k of direct costs related to the storm damage and another $15k as a result of lost revenue related to the storm. The Club operations essentially broke-even without these non-recurring costs. Food and Beverage and Clubhouse maintenance operations are cited as the largest variances in the operational costs compared to budget and/or last year. Much of the reasons attributed to these variances are highlighted in the Finance Report. We will continue to work diligently in these areas to improve operating efficiencies and productivity and to minimize additional costs. Sr. Management spends considerable time reviewing and discussing methods to reduce operating costs and/or to offset departmental operational shortfalls without affecting the level of services and products. Despite the additional expenses incurred throughout the year and declining outside catering revenues in Food and Beverage, the Management team worked hard to ensure the operating budget was achieved. The Management team remains committed to operating this Club at peak efficiency. Communications and Marketing Improving communications to our Members has been a priority throughout 2013. Our new Communications Manager, Andrea Oliverio, developed a strong communications program and has played a significant role in elevating our program. Communications improvements in 2013 included the use of new digital signage screens in key areas of the Club to reduce paper use and keep promotional information current and up to date, regular maintenance of information on the Member website, enhancements to the online tournament registration process, improved e-Communications through our eNews and eBlasts, a new Club blog and introduction of video content for Member interest, as well as a focus on special communications for Members concerning special projects and new initiatives/objectives, aimed at improved transparency. Our new Member acquisition program helped to generate 20 new Full Play Members and one new Spousal Membership this past year. The introduction of the spousal rate at 50% of the Full Play entrance fee also played a role in attracting both new Member couples and spouses of existing Members. We have now re-established our Golf Waiting List at 11 persons heading into 2014. Our Members are to be congratulated for their efforts in recruiting family, friends, and associates to St. George’s. This is indeed the best approach…Members recruiting Members. Membership recruitment will continue to be a key focus in the years ahead. On behalf of the volunteers, Management, and staff of the Club, I look forward to continued improvements in 2014 and providing as the best private Club for our Members.


The balance of my report provides an overview of various areas of the operation with input from the Committee Chairs and Senior Management. Golf Course: For the past few years, weather seems to be highlighted in the annual report. This year is no different as the July 8 storm defined the season from that point forward. With over four inches of rain in under two hours, the golf course team, with support from the clubhouse staff, managed to resume play the following afternoon. This was truly remarkable considering the damage cited by neighbouring golf courses. The five bunkers that were most damaged by the storm were repaired this fall and minor changes have been implemented to prevent a recurrence of surface drainage into the bunkers if this magnitude of rain falls again. The Golf Course Committee discussed several long range initiatives:

1. Greens Reconstruction Project • The Golf Course Committee and Board of Directors approved the

recommendation by the subcommittee to select Tom Doak and Ian Andrew as the consulting architects for this project and future golf course renovations.

• On-course tours were conducted to demonstrate and educate interested Members about the existing agronomic and design challenges to the greens in comparison to the USGA sand green located at the short game practice area.

• A town hall meeting on October 7 provided an opportunity to introduce the Doak/Andrew team along with their design philosophies and revisit the agronomic opportunities as presented by Dave Oatis of the USGA.

• Focus group meetings will take place in early 2014 to discuss the project and gain valuable Member feedback.

• The Golf Course Committee recognizes the complexity of issues surrounding a project of this nature and strives to ensure Members are well informed before any decision is made by the Membership.

2. Water Reservoir Project

• The Board of Directors approved Burnside Environmental to proceed with the design and planning of the water reservoir to be located between the 11th and 18th tee.

• This phase should be completed in early spring and be ready to present to the Membership in the spring.

• Timeline to start this project is still to be determined and will depend on all required approvals by the government agencies involved.

3. Practice Facility • Phase two will be to expand the East end of the building to include proper storage

for the Pro Shop/Range equipment and provide for a proper teaching office. • The next phase will be to improve the Woods tee in order to provide greater

safety, larger tee surface and improve parking.


4. #5 and #9 Fairway Improvements • The Committee discussed the feasibility of improving the divot area of #5 without

compromising the integrity of this fairway. The solution will be to create a wider landing area through the middle and recreate the right side as an additional landing area.

• #9 Fairway improvements are to create continuous surface drainage off the fairway to the left rough. The key will be to ensure it retains the classic design character. The bunkers along the left side would be slightly modified to improve their position and impact on the hole without penalizing a higher handicap player.

The Integrated Pest Management Accreditation Program (IPMAP) created by the Ministry of the Environment allowing golf courses to be exempt from the Cosmetic Ban on pesticides is now in its second year of implementation. The Club has met all its obligations with this law and other regulatory obligations. We will continue to strive to reduce pesticide use without compromising the quality of the golf course. This is best attained by improving turf health, increasing air and sunlight to green sites and emphasizing the establishment of creeping bentgrass either through overseeding or reconstruction. Tree removal related to Arborcom’s Shade Study around the greens continues but much less than in previous years. No. 3 green is still a concern, but the potential to reposition the green will reduce the number of trees that need to be removed to meet the minimum amount of sunlight for the turf. The Club continues to replant new trees to meet and exceed its obligation to the City of Toronto. Thank you to Keith Bartlett and the entire golf course department. A special thank you to the Golf Course Committee for their input and support, particularly in the selection process for the new Golf Course Architects. Clubhouse and Facilities: The completion of the Men’s Locker Room was the primary focus of the Facilities Committee in 2013. Much time and effort was provided by the Committee and Management on this project and it is clearly an improvement to this area of the clubhouse. The Committee focused their attention in the latter half of the year on seeking information for the highest and best use of the 2nd storey of the Men’s Locker Room and the 2nd floor of the clubhouse. Member focus groups were hosted in August and they provided good input that will help to formulate a survey that will be circulated to the entire membership for input. Other improvements are “behind the walls” or in the basement and are definite benefits to retain the Clubhouse in good working order. The December ice storm has caused some unexpected damage to heating and water pipes and this will be assessed and remedied as quickly as possible. Given the two significant power outages in 2013, the Board has approved the installation of a generator that will provide sufficient energy to keep the main floor of the clubhouse operating. Most importantly, it will keep the refrigerators and water lines operating.


Upcoming capital improvements to the clubhouse are refurbishment of the Upper Verandah this spring including new furniture, floor covering and improved electrical supply that will reduce energy consumption and provide an opportunity to expand existing amenities. Special thanks to the Facilities Committee for their focus and attention on the Clubhouse Facilities and in particular, the new Men’s Locker Room. Food and Beverage: Food and beverage operations performed well throughout 2013. The quality and variety of food offerings were well received by Members. Member dining was up 20% over 2012 in the primary dining areas of the operation. Our front-of-house service was improved with the addition of Food and Beverage Manager, Corey Ladouceur. The training of service staff improved steadily throughout the year and the wine offerings at the Club enjoyed a resurgence being carefully managed by (certified Sommelier) Corey. The Social Committee organized several key events for 2013. The year kicked off with a sold out Super Bowl party in February. The Tropical ‘Eat-Wave’ event in June presented an elaborate buffet of fresh seafood and other tropical fare. Our Wine Dine and Sax event was again a major success of good wine, wonderful food stations and an award winning saxophonist. The Gourmet Wine Dinners were a great success and we continued to present cooking classes in the shoulder seasons. Our revitalized New Year’s Eve Gala delivered an elegant black tie celebration. Executive Chef, James Saunders and his kitchen team delivered an excellent selection of menus and specialty promotions in 2013. Pizza Night, Curry Night, BBQ, Oyster Week, Lobster Week, Comfort Food Menus, Small Plates Big Taste and Steakhouse Weeks provided Members with diversity in our food offerings. The Cook’s Tour Menu was very successful along with new food selections made with fresh organic produce grown in our own vegetable gardens. Menus are priced on a break-even philosophy considering all costs required to service the Members adequately. Our food and beverage operation is labour intensive and Members have come to expect attentive and well-trained servers. We use the highest quality of food where possible which further increases costs. Non-Member catering event revenue fell significantly this past year. Non-Member (or Member-sponsored) catering events have been declining in the past two years and we plan to review and restructure this area of the operation. James Saunders, Executive Chef, directs the food and beverage operation in concert with Corey Ladouceur, Food and Beverage Manager. The Food and Beverage operations continue to improve each year and we look forward to servicing the Membership in 2014. A special thank you to the Social Committee for their dedication and hard work throughout the year.


Membership: The dedication and commitment by many Members resulted in the addition of 20 new Full Play (FP) Members, one Spousal Membership and the build-up of an active Wait List of 11 individuals (seven inactive) as of October 31, 2013. The continuation of the new pricing of our spousal Entrance Fee (50%) proved successful as in addition to three new FP couples, six spouses of existing FP members took advantage of the newly established fee. Wait List Comparison: Year (at Oct. 31)

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Full Play Wait List

18 9 8 15 26 47 62 65 72 54

Membership levels remain strong. The following table summarizes the status of the Club’s Membership as at October 31, 2013: Category Full

Play Golf

Limited Play Golf

Golf & Curling

Curling Non Resident

Heritage & Clubhouse

Grand Total

Senior & Intermediate Men 386 105 26 125 140 782 Senior & Intermediate Women

48 82 17 129 70 346

Junior & Pre-Junior Boys & Girls

0 133 0 0 0 133

Life Members 3 0 0 1 0 4 TOTAL MEMBERS 437 320 43 255 210 1265

The on-boarding program continues to be well received by new Members of the Club. The opportunity to meet Directors, Senior Management, and other Members provides for a thorough orientation to the Club and is appreciated by all new Members. The Membership Committee continued with its mandate of reviewing membership categories in an effort to ensure the Club balances the needs of all Members. They spent considerable time and effort in 2013 reviewing the Limited Play (LP) category and changes were presented to the Membership. While some of the proposed changes were not well received initially, through Member discussion groups and other input, the Board presented alternatives that were more acceptable to the LP Members, particularly long-standing Members of the Club. Thank you to Barbara Pennington, Executive/Membership Assistant for her support to the Membership Committee throughout the year.


Golf Operations: The 2013 golf season enjoyed peak enrollment and participation from Members:

• 241 men participated in the Wednesday Men’s League • 120 Members joined the Men’s Captain’s Cup • The Ladies’ League had over 60% of the female golfing Members join in its inaugural

season

In additional to these events, 22 teams played in the Mixed Match Play ladder event and the first ever Ladies’ ‘Magical Mystery Tour’ was played at The London Hunt. Member programming for Men’s, Ladies, Juniors and Mixed are being well supported. The Golf Activities Committee has set the 2014 golf event calendar. We have been diligent in respecting the various Member-communities while being sensitive to overall access to the tee. We are now offering offsite Member trips. A trip for the men has been launched to Ireland and a ladies trip is being advertised in February for next November. In 2012, the “Under 4 hour” pace of play initiative was launched. This continued to be communicated to the Membership throughout the 2013 golf season and Members have responded favourably. There is still room for improvement and we hope to see further progress in 2014. In 2013, the Handicap Committee launched the peer review process for golf Members. This “soft” launch was helpful in educating the Members about the need to post all round scores to ensure a proper and valid handicap. Year round learning is now available at the Club. Currently we have 50 Members enrolled in the winter golf program. The three year goal of solidifying high level coaching/teaching at the Club has been achieved. With the addition of a full time Head of Golf Instruction in conjunction with the other Professionals, we have one of the top coaching programs in the country. Education, training and studying by all the Professionals will continue and we will keep this as a priority in the Club’s golf operation.

Thank you to Tim Moore and his team and the efforts of the Captains’ Committees and Golf Activities Committee for their hard work in making the golf program so successful.

ROUNDS OF GOLF2013 2012 2011 2010 2009 2008 2007

Total Rounds 27,404 28,405 28,040 26,640 26,589 25,235 27,510Member Rounds 23,397 24,177 23,223 22,169 21,872 21,260 23,135% Guest Rounds 14.6% 14.9% 17.2% 16.8% 17.7% 15.8% 15.9%

GUEST GREEN FEE REVENUE2013 2012 2011 2010 2009 2008 2007

Dollars 743,603 758,631 698,593 780,399 717,266 564,610 604,895


Curling: Curling continues to be very active at St. George’s. Most of the leagues were fully subscribed for 2013. The St. George’s Junior curling program has been under subscribed for several years and in recent months, Graeme McCarrel has fostered a relationship with Richview Collegiate to expose high school students to the game. This marks the first step in introducing the game of curling to a new generation and building a foundation of future curlers at St. George’s. Our new condenser has been installed and with our fine group of ice technicians we continue to enjoy some of the best ice conditions in the City. The Tuesday Night Major League provides us with positive feedback on ice conditions, further affirming the high quality of our curling facility. A new 50” monitor mounted outside the curling office displays sheet assignments, stats, announcements and food and beverage specials. A smaller screen in the assembly room provides sheet assignments only as the curlers head out onto the ice. This is consistent with the Club’s intent of eliminating as much ‘paper’ as possible. A new “Doubles” league has commenced on Tuesday evenings. The World Curling Federation created Mixed Doubles which will become an Olympic sport in 2018. The interest has been tremendous and league play commenced January 2014. In 2013 we have focused our efforts on improving our facilities, services and offerings with an aim toward increasing Member satisfaction in the curling section. We thank Graeme McCarrel and his team, Members of the Curling Committee and all the event conveners for their diligence in making St. George’s curling program one of the best! Governance: The mandate of the Governance Committee is to oversee and provide recommendations to improve the processes of the Board of Directors. The Committee continued to focus on Board and Committee succession planning. The new process provides for a consistent framework to match the needs of the Club with the skills of its Members. This process feeds into the existing Nominating Committee that spends considerable time discussing the appropriate candidates for the current and future Board of Directors. The Committee updated the Club policies, guidelines and orientation binders, which will be finalized early in 2014. A sub-Committee of the Governance Committee was initiated to review the Ontario Not-For-Profit Corporation Act, 2012 (the “Act”) as it relates to the newly proposed Bill 85. It imposes consistency of practice in the administration of corporate entities across most of the Ontario statutes that deal with different types of corporations and partnerships. The amendments also provide future proofing to a number of aspects of the Act and impose new transition requirements for share capital social clubs which were incorporated under the current Corporations Act. The new Bill is not expected to be enacted until later this year and will have a


three-year implementation period. The sub-Committee will monitor any developments and report to the Governance Committee and the Board of Directors. The Committee is to be commended for its diligence and contribution in monitoring and improving the governance processes of the Club. Social/Environmental and Community Responsibility Environmental Initiatives: Golf Course Trees and Shrubs - In 2013 tree and shrub planting exceeded City of Toronto bylaw requirements of planting three trees for every one tree removed. There is an increased focus on recreating natural habitat areas. This took place between #7/9, right of #10 tee, right side of #13 fairway, the west side slope of the lower parking lot and in future left of #9 green and near #9 tee. We continue to plant only native trees and have expanded beyond the typical Sugar Maple, and Oak. This diversity will protect the Club from massive decline due to a single pest and there will be a greater age diversity of the trees. Tree removal - While removal of trees on the course is a difficult decision, through proper maintenance and removal of weak structured trees, we reduce long term costs associated with tree damage. The recent ice storm highlighted this threat with weaker Silver Maples experiencing most of the damage. Irrigation Water - Other initiatives include water conservation through growing healthier turf, allowing some rough areas to go through seasonal change, and continued maintenance of the irrigation system. Pest Management - Key staff is trained under the Integrated Pest Management (IPM) designation and are licensed to apply pesticides. We use low impact pesticides and control pests before they populate to a threshold that creates significant damage, or require higher rates of product use. Long term initiatives, such as creating healthier turf conditions and potentially new greens complexes, would further reduce our use of some pesticides. Environmental Initiatives: Clubhouse Lighting - The ongoing replacement of incandescent bulbs to LED and pot light bulbs will save energy costs over the long-term. In some instances, bulbs that once used 50 watts have been replaced with bulbs drawing a mere three or five watts. The most recent lighting upgrade took place in the main kitchen where aging fluorescent fixtures were replaced with high efficiency LED bulbs. Waste Removal - An Enviropure System was installed in the kitchen which digests all wet waste, including food scraps, and vegetable waste (no bones or paper) and converts it into grey water, diverting it away from landfills. An increased focus on sorting recycling and green bin matter was also implemented in 2013. The end result is less waste reaching landfills and a reduction in waste costs of 70% compared to five years ago.


Heating and Air Conditioning (HVAC) - The aging heating system has been serviced and temperature adjustment dials have been added in order to regulate the temperature when a room is not in use. Preventative maintenance and replacement of pipes, valves, filters and cleaning the heating elements (annually) over the past few years have made the system more efficient and may extend the life of the system. Cleaning Products - In 2013 the Club purchased a Lotus 3 system that converts water into a safe environmental oxygenated cleaner. The charged water remains oxygenated for two hours before converting back to regular uncharged water. The oxygenated water acts as a cleaner and disinfectant that replaces all of the previously used cleaning products such as Windex, Fantastic and other toilet products. This system saves the Club money and is healthier for our Members and staff. Health and Safety Continuous awareness and training is provided to the Staff on our Health and Safety program. Our Joint Health and Safety Committee (JHSC) ensures a healthy and safe Club for the Staff and Members. This involves a significant amount of time and attention on the part of many Staff and the services of a contracted Health &Safety professional to ensure we are compliant with the Ministry of Labour and other Safety Associations. Community Outreach Several community outreach initiatives took place over the course of 2013. The following is a summary of these events. Rocks in the Rings Program - Each year St. George’s donates curling ring-sets to a local elementary school, along with an instructional class. The program exposes children to the game of curling when they otherwise may not have had an opportunity to try out the sport, as well as adding diversity to the physical education curriculum offered at school. This year’s recipient of the Rocks in the Rings program was Rosethorn Public School. Special Co-op Assignment - In April of 2013 the food and beverage department received an email from a local neighbour requesting consideration for his son Marco, to gain unpaid work experience in an environment that would be beneficial for his social upbringing, as well as to develop a sense of value being part of a working team. Marco is 18 years old and has been diagnosed with Autism Spectrum Disorder. In tandem with the Co-operative Education department at St. Michael Power High School, we have continued to enjoy Marco’s presence as part of our dynamic team. Many Staff members of the food and beverage department have found that while Marco was discovering the extent of his abilities, they too were learning to recognize and appreciate their own.


Notable Charitable Events from 2013 – Both the Members and the Staff have been involved in a variety of charitable events during the past year.

On May 16 The Ladies’ Captains’ Choice Charity Tournament raised $17,000 for the Yorktown Shelter for Women which provide a safe and secure haven for women and their children fleeing abusive relationships. The Annual Ladies’ Fall Fashion Show was held on October 13 with over 140 women in attendance. The event showcases local fashions, jewelry and hair and makeup services. The event’s live auction and raffle raised more than $7,300 in support of Sheena’s Place, the Toronto support centre for individuals and families affected by eating disorders.

The Ladies Curling Section has collected hats, mittens and intimate apparel for several years, this year the initiative was promoted in conjunction with CHFI’s “Shelter from the Storm”. The drive culminated with the Christmas lunch raffle that raised approximately $1,250 with 50% of the proceeds going to charity. Weston Golf & CC joined our Ladies Curling Section’s efforts this year and pooled their donations with St. George’s. The donations were delivered to Yorktown Women’s Shelter just prior to Christmas. A Winter Coat Drive was initiated in 2013 and the curling office collected over 160 lightly used jackets. The donations were delivered to a series of organizations such as Out of the Cold, which distributes winter clothing to the homeless and less fortunate. In April 2013 the Ladies’ Curling Closing charity event raised $5,250 for Family Outreach and Response, an Etobicoke based non-profit organization offering family and youth mental health support services. The staff at St. George’s also contributed to the Club’s community outreach initiatives, donating 182 pounds of food to the Daily Bread Food Bank and raising $1,200 at the 2013 Staff Christmas party.

Joseph Murphy Chief Executive Officer and General Manager


Financial Statements for the year ended October 31, 2013 Management Discussion and Analysis This report accompanies the audited financial statements of St. George’s Golf and Country Club (the “Club”) for the year ended October 31, 2013. The 2013 financial statements have been prepared applying the Canadian accounting standards for not-for-profit organizations (ASNPO). The financial statements present separately the operations and the capital activity of the Club. No significant issues were raised during the course of the audit. The operating loss for the Club was $39,885, compared to an operating profit in 2012 of $40,433. As a small net operating profit was earned over the last two years, no assessment was recommended for the 2013 loss. The aggregate entrance fees and capital contribution is $1,461,000, lower than $1,740,000 for 2012. Capital amortization in 2013 was $1,401,000 compared to $1,253,000 in the prior year. In total, the operating and capital activity generated $1,609 compared to $558,372 in 2012. The variance relates to the 2013 operating loss, lower entrance fee revenue due to the implementation of the family discount and higher amortization costs in 2013 relating to the capitalization of the Men’s Locker Room. Operations: The following charts provide information on the departmental results for the year:

1. Golf operations continued to generate positive results. A wet spring limited guest green fees but contributed to lower water costs on the golf course.

2013 2012

Revenue Golf activity fees $2,980,440 $2,873,688

Green Fees 743,603 758,631

Carts 225,698 219,280

Expenses Golf course (1,770,534) (1,820,070)

Golf Shop (394,811) (391,456)

Carts/Backshop (299,133) (272,775)

Locker Room (164,269) (138,089)

Net $1,320,994 $1,229,209

2. The Clubhouse maintenance costs increased due to the addition of a “handyman” during

the golf season, higher repairs, maintenance and consultants contracted for staff training.

2013 2012

Clubhouse Fees- Golf and Social $905,873 $871,518

Expenses (891,144) (777,173)

Net $ 14,729 $ 94,345


3. The Food and Beverage (F&B) revenues overall were similar to 2012 however, the mix

of revenue changed to more Member dining and less outside catering revenue. Member dining increased by 20% in the primary Member dining areas while catering revenue fell almost the same amount. The margins are generally much higher on outside catering than on Member dining which resulted in reduced F&B profitability in 2013.

2013 2012

F&B Revenue $3,351,502 $3,320,773 Cost of Sales (1,181,966) (1,157,663) Wages (1,996,182) (1,929,070) Other expenses (220,290) (177,623) Net ($46,936) $56,417

4. Curling produced a positive contribution of about $47,000 as wages and cost increases

related to ice maintenance and repairs were largely offset by increased fees and rental income.

2013 2012

Curling fees and ice rental $248,277 $233,029 Expenses (201,339) (172,893) Net $ 46,938 $ 60,136

5. Administration and General expense increased $17,000, primarily due to higher property

taxes which increased from $180,000 in 2012 to $215,500 in 2013.

6. Investment income increased to $163,036 from $153,009 in 2012, due to increased revenue derived from Members’ late penalties and interest on entrance fee instalments. Income tax expense was lower in 2013 due to an over accrual from the previous year.

Capital: Net capital revenue was $41,000 compared to $518,000 last year. 1. Revenue from entrance fees decreased by $280,000. The Club admitted 21 new Members in

2013 compared to 22 in 2012, 18 in 2011, 27 in 2010, and 32 in 2009. Many of the new Members are couples that qualified for the new family discount. The active wait list stands at 11 at October 31, 2013 as compared to 2 at October 31, 2012.

2. Revenue of $315,000 was generated in the year from monthly Member capital contributions versus $313,000 in 2012.

3. Amortization expense increased by $150,000 due to the addition of the Men’s Locker Room.


Capital Additions:

2013 2012

Clubhouse projects, landscaping, kitchen roof, security, HVAC and new computers 567,000 250,000 Golf course projects 437,000 543,000 Golf course/ carts equipment 216,000 309,000 F&B/Kitchen equipment 185,000 69,000 Curling area 57,000 98,000 sub-total $1,462,000 $1,269,000 Men’s locker room 2,417,000 127,000 TOTAL $3,879,000 $1,396,000

Capital expenditures for the year were in line with the 2013 approved capital budget and the Men’s Locker Room project’s final cost of $2,807,536 was slightly over the approved budget of $2,740,000. Balance Sheet: As at October 31, 2013, the Club’s Balance Sheet was in a strong financial position. Cash, short term and longer term investments were $2,766,000 compared to $5,149,000 at the end of last year. The year over year decrease is explained by the investment in the Men’s Locker Room. Outlook: The operating budget for 2013-14 provides for a 2% increase in annual dues. The budget expectation is to maintain breakeven results with revenue targets maximized for guest fees, and golf cart revenues. The F&B operation target has been reduced to contribute $25,000 compared to historical annual contributions of $50,000 to $100,000 to reflect reduced outside catering and to reflect the changing nature of the Club’s food and beverage operation to be more Member centric and focused on service and menu variety. Operating expense budgets continue to reflect improved efficiencies and the challenge for Management will be to contain costs. Department Managers will be required to control costs while maintaining the same level of Member service. Certain initiatives can be undertaken if the variable revenues trend below target. Every effort will be made to maintain a high level of Member service. Capital funding, capital expenditures and projections for future capital revenue are of vital importance for the Club. The Club has a short wait list. Historically, capital expenditures have been funded by new Members. Acquiring new Members will continue to be a primary focus for Management. Members will be actively involved in the information gathering and decision making issues regarding the reservoir project, the second storey of the Men’s Locker Room and the second floor of the Clubhouse, as well as the greens reconstruction project and the imminent replacement of the Club’s roof. An insurance claim has been filed for the July 2013 storm. The claim includes expenses and restoration of the creek bed. Nothing has been accrued in 2013 for any insurance claim. This will be resolved in 2014.


Management, the Finance, Audit and Risk Committee and the Board will continue to discuss recommendations for funding options including debt financing to ensure our capital programs meet Members’ expectations and that we remain the most desirable private golf club in the community. I would like to thank the members of the Finance, Audit and Risk Committee and our Treasurer, David Imrie for their guidance and assistance during the year. Karen Stacey, CPA, CA Controller

MANAGEMENT RESPONSIBILITY FOR FINANCIAL REPORTING The following financial statements are the responsibility of the management of St. George's Golf and Country Club. They have been prepared in accordance with Canadian generally accepted accounting principles, using management's best estimates and judgments where appropriate.

Management is responsible for the reliability and integrity of the financial statements. In the preparation of these statements, estimates are sometimes necessary because a precise determination of certain assets and liabilities is dependent upon future events. Management believes such estimates have been based on careful judgments and have been properly reflected in the accompanying financial statements. Actual results could differ from estimates.

Management is also responsible for maintaining a system of internal controls designed to provide reasonable assurance that assets are safeguarded and that accounting systems provide timely, accurate and reliable financial information.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal controls. The Board is assisted in exercising its responsibilities through the Finance Audit & Risk Committee. The Committee meets periodically with management and the auditors to satisfy themselves that management's responsibilities are properly discharged, to review the financial statements and to recommend approval of the financial statements to the Board.

Gail Kilgour Chair of the Board David Imrie Treasurer

Joe Murphy CEO

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St. George’s Golf and Country Club Statement of Operations Year ended October 31 2013 2012 Revenue Golf $ 3,949,741 $ 3,851,599 Curling 248,277 233,029 Clubhouse 905,873 871,518 Food and beverage 3,351,502 3,320,773 Investment and other income 163,036 153,009 8,618,429 8,429,928 Expenses (Note 13) Golf 2,628,747 2,622,390 Curling 201,339 172,893 Clubhouse 891,144 777,173 Food and beverage 3,398,438 3,264,356 Administrative and general 1,483,062 1,465,834 Income tax on investment income 55,584 86,849 8,658,314 8,389,495 Excess (deficiency) of revenue over expenses before undernoted items (39,885) 40,433 Entrance fees 1,146,548 1,426,861 Capital contributions 314,782 312,719 Gain on sale of capital assets 56,989 31,295 Golf cart lease (75,978) - Amortization (1,400,847) (1,252,936) 41,494 517,939 Excess of revenue over expenses $ 1,609 $ 558,372


St. George’s Golf and Country Club Statement of Financial Position As at October 31 2013 2012 Assets Current Cash and cash equivalents $ 340,718 $ 2,726,243 Short-term investments (Note 3) 916,186 - Accounts receivable 656,008 624,654 Inventory (Note 4) 278,347 259,946 Prepaid expenses 184,138 86,746 Current portion of entrance fees receivable (Note 5) 578,690 515,141 2,954,087 4,212,730 Entrance fees receivable (Note 5) 1,042,671 960,160 Investments (Note 3) 1,509,268 2,422,477 Capital assets (Note 6) 9,906,394 7,541,843 Projects under development (Note 7) 244,627 - $ 15,657,047 $ 15,137,210

Liabilities Current Accounts payable and accrued liabilities (Note 8) $ 1,417,567 $ 1,168,265 Members’ dues and fees received in advance 671,442 651,605 Entrance fees received in advance 369,325 111,575 2,458,334 1,931,445 Members’ debentures (Note 9) 3,773,280 3,781,941 Net assets Net investment in capital assets (Note 10) 6,133,114 3,759,902 Reserved for capital purposes (Note 11) 3,292,319 5,663,922 9,425,433 9,423,824 $ 15,657,047 $ 15,137,210

Commitments and contingencies (Note 12) On behalf of the Board Director Director


St. George’s Golf and Country Club Statement of Changes in Net Assets Year ended October 31 Net Reserved Operating Investment in for Capital Total Total Fund Capital Assets Purposes 2013 2012 Balance, beginning of year $ - $ 3,759,902 $ 5,663,922 $ 9,423,824 $ 8,865,452 Excess (deficiency) of revenue over expenses (39,885) (1,514,358) 1,555,852 1,609 558,372 Transfer to operating fund 39,885 - (39,885) - - Current year’s investment in capital assets Purchase of capital assets - 3,878,909 (3,878,909) - - Financed by debentures - 8,661 (8,661) - - Net investments in capital assets - 3,887,570 (3,887,570) - - Balance, end of year $ - $ 6,133,114 $ 3,292,319 $ 9,425,433 $ 9,423,824

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St. George’s Golf and Country Club Statement of Cash Flows Year ended October 31 2013 2012 Increase (decrease) in cash and cash equivalents Operating Excess of revenue over expenses $ 1,609 $ 558,372 Items not involving cash Amortization of capital assets 1,400,847 1,252,936 Gain on sale of capital assets (56,989) (31,295) Unrealized gain on investments (2,977) (9,852) 1,342,490 1,770,161 Net change in non-cash working capital items Accounts receivable (31,354) 211,142 Inventory (18,401) 5,501 Prepaid expenses (97,392) 51,682 Current portion of entrance fees receivable (63,549) (123,398) Accounts payable and accrued liabilities 249,302 28,380 Members’ dues and fees received in advance 19,837 17,590 Entrance fees received in advance 257,750 (51,500) 316,193 139,397 Net change in long-term portion of entrance fees receivable (82,511) (345,393) 1,576,172 1,564,165 Financing Members’ debentures (8,661) 20,422 Investing Proceeds on disposal of capital assets 170,500 41,690 Purchase of capital assets Men’s locker room (2,417,028) (126,663) Other capital assets (1,461,881) (1,269,381) Projects under development (244,627) - Purchase of investments - (500,000) (3,953,036) (1,854,354) Net change in cash and cash equivalents during the year (2,385,525) (269,767) Cash and cash equivalents Beginning of year 2,726,243 2,996,010 End of year $ 340,718 $ 2,726,243

Cash and cash equivalents are comprised of: Cash $ 43,108 $ 609,261 Cash equivalents 297,610 2,116,982

$ 340,718 $ 2,726,243

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St. George’s Golf and Country Club Notes to Financial Statements October 31, 2013 1. Organization St. George's Golf and Country Club (the “Club”) is a private member owned golf club incorporated without share capital in the Province of Ontario. The Club is a not-for-profit organization and is exempt from income taxes, except on investment income under section 149(i) of the Income Tax Act.

2. Summary of significant accounting policies The financial statements have been prepared by management in accordance with Canadian accounting standards for not-for-profit organizations (ASNPO), the more significant of which are outlined below. Use of estimates The financial statements have been prepared by management in accordance with ASNPO. The preparation of the Club's financial statements in conformance with Canadian ASNPO requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and liabilities at year end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from management's best estimates as additional information becomes available in the future. Financial instruments The Club’s financial instruments are comprised of cash and cash equivalents, investments, accounts receivable, entrance fees receivable, accounts payable and members’ debentures. Financial assets and financial liabilities are initially recognized at their fair value with the exception of members’ debentures which are recorded at face value. The Club subsequently measures all financial assets and financial liabilities at amortized cost with the exception of investments and members’ debentures. Amortized cost is the amount initially recognized less any principal payments. Investments are subsequently measured at fair value based on active market rates. Under this method, the realized and unrealized gains and losses on designated financial assets and liabilities are recorded on the statement of operations. Members’ debentures are subsequently measured at initial face value, as amortized cost is not determinable due to an undefined repayment period. Net assets reserved for capital purposes The Board of Directors (the “Board”) has resolved that all net excess of revenue over expenses should be reserved for the purchase of capital assets. Cash and cash equivalents Cash and cash equivalents include cash and investments with initial terms to maturity of less than three months.

St. George’s Golf and Country Club Notes to Financial Statements October 31, 2013

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2. Summary of significant accounting policies (continued) Inventory Inventory is valued at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. Capital assets Capital assets are recorded at cost. Repairs and maintenance costs are charged to expense. Amortization is provided on a straight-line basis over the following periods: Clubhouse Building and improvement 10 - 20 years Equipment, furniture and fixtures 5 - 10 years Golf course Improvements 5 - 10 years Equipment 5 - 10 years Irrigation system 20 years Buildings 10 - 20 years Golf carts 5 years Revenue recognition Entrance fees due from senior and spousal golf members are recognized as revenue in the year full golf membership privileges are granted. Deposits paid by wait list members are non-refundable and are accounted for as entrance fees received in advance. They are recognized as entrance fee revenue in the year golf membership is granted or the wait list member resigns. Entrance fees due from intermediate golf members are recognized as revenue in the year received. Golf, curling, and clubhouse fees are recognized as revenue over the period to which they relate.

Other revenues, including capital contributions and food and beverage, are recognized when invoiced.

Contributed services The Club is dependent on the volunteer services of many members. Since these services are not normally purchased by the Club and because of the difficulty of determining their fair value, these donated services are not recognized In the financial statements.


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3. Investments 2013 2012 Short-term Ontario savings bond step up series 2009, due June 21, 2014, current year interest at 4.5% (2012 - 3.50%) $ 916,186 $ - Long-term Ontario savings bond step up series 2009, due June 21, 2014, current year interest at 4.5% (2012 - 3.50%) - 912,986 Ontario savings bond step up series 2011, due June 21, 2016, current year interest at 2.0% (2012 - 1.50%) 1,006,740 1,007,234 Ontario savings bond step up series 2012, due June 21, 2017, interest at 1.50% (2012-1.25%) 502,528 502,257 $ 1,509,268 $ 2,422,477

4. Inventory 2013 2012 Food and beverage $ 202,142 $ 181,897 Golf course supplies 76,205 78,049 $ 278,347 $ 259,946 The amount of inventories recognized as an expense during the year is $1,181,966 (2012 - $1,157,664) in food and beverage cost of sales and $507,899 (2012 - $446,969) in golf course supplies.


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5. Entrance fees receivable

Entrance fees may be paid over terms as set by the Board from time-to-time.

The entrance fees are receivable as follows: 2014 $ 578,690 2015 530,238 2016 344,218 2017 130,415 2018 37,800 1,621,361 Less: Current portion (578,690) $ 1,042,671

6. Capital assets 2013 2012 Accumulated Net Book Net Book Cost Amortization Value Value Land $ 1,280,000 $ - $ 1,280,000 $ 1,280,000 Clubhouse Building and improvements 9,727,363 5,801,300 3,923,023 1,497,824 Equipment, furniture and fixtures 4,136,536 3,189,704 946,832 784,580 Golf course Improvements 6,615,829 3,889,983 2,725,846 2,709,951 Equipment 2,124,371 1,597,867 526,504 583,427 Irrigation system 1,083,034 707,942 375,092 429,244 Buildings 596,703 492,677 104,026 81,753 Golf carts 121,401 99,370 22,031 175,064 $ 25,685,237 $ 15,778,843 $ 9,906,394 $ 7,541,843


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7. Projects under development Included in projects under development are costs of $167,534 (2012 - $Nil) related to new capital projects, principally greens reconstruction and the construction of a water reservoir. As these projects are in their initial stages and have not been approved by membership no amortization has been incurred. Costs of $77,093 (2012 - $Nil) are included resulting from storm damage to the golf course in July 2013. As the scope of the repairs required is yet to be determined no amortization has been incurred. The Club has made an insurance claim for this damage and the outcome of the claim cannot be determined at this time. The foregoing items have not been included in capital assets pending their completion.

8. Accounts payable and accrued liabilities Included in accounts payable is $241,936 (2012 - $243,535) in respect of Government remittances and property taxes.

9. Members’ debentures Members' debentures are non-interest bearing, and repayable to members in good standing following cancellation of membership. Intermediate members pay debenture instalments over the lesser of five years or the number of years remaining as an intermediate. Instalments receivable are approximately $9,000 (2012 - $9,000) of which approximately $1,000 (2012 - $1,000) is due within the next fiscal year. Senior curling members are required to purchase debentures and are permitted to pay debenture instalments over five years (interest free). Instalments receivable are $57,311 (2012 - $60,032) of which $20,426 (2012 - $20,272) is due within the next fiscal year. Future instalments from senior curling, and intermediate golf and curling members have not been accrued in the financial statements.

10. Net investment in capital assets 2013 2012 Capital assets $ 9,906,394 $ 7,541,843 Less: amounts financed by members’ debentures 3,773,280 3,781,941 $ 6,133,114 $ 3,759,902


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11. Net assets reserved for capital purposes Capital 2013 Contribution Restricted Total Balance, opening $ 2,152,976 $ 3,510,946 $ 5,663,922 Add: Entrance fees - 1,146,548 1,146,548 Capital contributed 314,782 - 314,782 Sale of capital assets - 170,500 170,500 Deduct: Operating fund deficiency of revenue over expenses - (39,885) (39,885) Golf cart lease payments - (75,978) (75,978) Financed by debentures (8,661) (8,661) Investment in capital assets - (3,878,909) (3,878,909) Balance, closing $ 2,467,758 $ 824,561 $ 3,292,319 A single project in excess of $250,000 requires authorization by a special resolution of the membership.

12. Commitments and contingencies Leases The Club leases golf carts and course equipment under operating leases. The future minimum payments under these commitments are as follows: 2014 $ 65,201 2015 65,201 2016 43,056 $ 173,458 Current and deferred property taxes Under the fixed assessment agreement signed December 2, 1963 with the City of Toronto (formerly the City of Etobicoke), the accumulated deferral of municipal property taxes including interest will be $1,639,438 as at October 31, 2013 (2012 - $1,626,049). Deferred property taxes become payable when the Club lands, or any portion thereof, cease to be occupied for the purpose of a golf club. Letter of credit The Club is contingently liable for an irrevocable standby letter of credit payable to the City of Toronto related to tree replacement in the amount of $70,000 (2012 - $70,000).


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13. Expenses in detail 2013 2012 Labour and benefits $ 5,012,436 $ 4,877,186 Food and beverage cost of sales 1,181,966 1,157,664 Golf course repairs and maintenance 325,786 349,779 Utilities 307,325 321,168 Clubhouse supplies and other 289,333 194,589 Food and beverage supplies and other 220,291 177,623 Property taxes 215,500 180,000 Communications and publications 199,881 198,960 Golf course supplies and other 182,113 165,060 Sundry and miscellaneous 153,789 113,376 Water 152,156 171,780 Administrative and general supplies and other 120,792 138,367 Insurance 75,288 79,799 Professional fees 72,445 62,034 Income tax on investment income 55,584 86,849 Golf shop and back shop supplies 49,575 78,857 Computer expenses 44,054 36,404 8,658,314 8,389,495 Amortization 1,400,847 1,252,936 $ 10,059,161 $ 9,642,431

14. Financial instruments Transactions in financial instruments may result in the Club assuming or transferring to another party one or more of the financial risks described below. The disclosures below provide information that assists the users of these financial statements in assessing the extent of risk related to financial instruments. Credit risk The Club is exposed to credit risk primarily with respect to the accounts receivable and entrance fees receivable from its members. Management has adopted credit policies in order to minimize those risks and does not believe that there is significant credit concentration or risk. As at October 31, 2013 the Club has recorded an allowance for doubtful accounts of $25,000 (2012 - $25,000). Liquidity risk Liquidity risk is the risk that the Club will encounter difficulty in realizing its assets and meeting the obligations associated with its financial liabilities. The Club is exposed to this risk mainly in respect of its member debentures and accounts payable. Liquidity risk is not considered to be significant.


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14. Financial instruments (continued) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Club’s financial instruments will fluctuate because of changes in market interest rates. The Club is exposed to interest rate risk resulting from its investments with fixed interest rates. This risk is mitigated through investing in instruments with shorter terms to maturity and which have low susceptibility to significant fluctuations in market interest rates. In addition, the Club is exposed to interest rate risk as a result of its entrance fees receivable being subject to variable interest rates. As the Club does not have interest bearing financial liabilities, it is not exposed to interest rate risk on financial liabilities. Currency risk Currency risk is the risk to the Club that arises from fluctuations in foreign exchange rates. The Club is not exposed to significant currency risk as transactions in foreign currencies are limited.

15. Brian Shaw Memorial Fund The Brian Shaw Memorial Fund was created in 1987, for the purpose of providing financial assistance to a deserving young assistant professional to develop his or her golf career. The Fund is administered by the Board of Directors under the terms of a Declaration of Trust. The Fund is segregated from Club assets and is invested in treasury bills and bank deposits and not included in the financial statements of the Club. As at October 31, 2013, the net equity of the Brian Shaw Memorial Fund is $28,070 (2012 - $39,323). This has not been included in the Club’s financial statements.

ST. GEORGE'S GOLF AND COUNTRY CLUB

SELECTED 10 YEAR

HISTORICAL INFORMATION

ROUNDS OF GOLF

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Total Rounds 27,404 28,405 28,040 26,640 26,589 25,235 27,510 26,232 25,973 28,401

Member Rounds 23,397 24,177 23,223 22,169 21,872 21,260 23,135 22,143 22,075 24,280

% Guest Rounds 14.6% 14.9% 17.2% 16.8% 17.7% 15.8% 15.9% 15.6% 15.0% 14.5%

GUEST GREEN FEE REVENUE

Revenue 743,603$ 758,631$ 698,593$ 780,399$ 717,266$ 564,610$ 604,895$ 558,696$ 529,132$ 580,235$

WAIT LIST

Full Play 11 9 8 15 26 47 62 65 72 54

Limited Play 1 1 1 2 2 4 12 15 19 29

CAPITAL

Revenue 1,461,330 1,739,580 1,523,587 2,226,671 2,499,899 2,251,645 1,910,108 1,806,816 1,059,019 1,401,078

Expenditures, net 3,878,909 1,398,544 1,523,589 1,764,866 1,946,804 1,474,067 1,493,948 829,307 771,105 702,574

Net Contribution -2,417,579 341,036 -2 461,805 553,095 777,578 416,160 977,509 287,914 698,504

OPERATING RESULTS

Operating Revenue 8,618,429 8,429,928 8,171,070 8,930,232 8,163,430 7,643,278 7,030,100 6,808,214 6,486,503 6,286,592

Operating Expenses 8,658,314 8,389,495 8,324,499 8,926,695 8,273,028 7,723,150 7,674,035 6,946,478 6,468,139 6,312,381

Net, Operating Earnings -39,885 40,433 -153,429 3,537 -109,598 -79,872 -643,935 -138,264 18,364 -25,789

F&B contribution -46,936 56,417 128,854 157,082 89,679 -23,899 97,808 125,928 170,575 114,199

Golf Course Expenses 1,770,534 1,820,070 1,803,331 1,811,908 1,606,450 1,520,239 1,830,076 1,310,174 1,233,471 1,130,371

Clubhouse Expenses 891,144 777,173 900,675 984,499 986,418 833,570 919,603 885,400 817,407 742,214

Admministrative and General 1,483,062 1,465,834 1,403,667 1,898,189 1,386,426 1,239,637 1,211,298 1,286,012 1,235,979 1,164,202

2010 RBC Cdn Open restructuring provision


Notes

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