presentation to municipal councils - civicweb

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Presentation to Municipal Councils

November 2019

Highlights of the Past Year’s Operations at Misery Mountain Financial Highlights

1. Total revenue was up by almost $60,000. (When we remove the donations in-kind from last year’s totals).

2. Even though operating income was down by about $40,000, fundraising income was up by about $100,000. Most of this was the extra $25,000 in raffle income (from selling 500 more tickets than previous years) and the Northern Sunrise County donations, of which we received two ($50,000 total) during this fiscal year. SnowFest income was also up by about $10,000.

3. For each of the past four years of continuous operation, revenue has increased every year by about 15% or so.

4. Achieved a cash surplus (profit) of about $68,000. 5. Almost all of this went into to paying down debt: $25,000 less in net bank debt; $30,000

less in accounts payable; about $10,000 increase in cash on hand. 6. Total membership/lift ticket sales were down by $27,000 – all of this in daily tickets

sales. We attribute this to poorer snow conditions and more extremely cold weather than the previous year. A similar situation played out in equipment rentals and snow school revenue.

7. We were able to pay almost all our bills on time this year. This shows up in much lower accounts payable at yearend ($7,700 vs $36,000 last year).

8. Revenue $520k; Expenses $453k; surplus $68k.

Operational Highlights

With the progress made this year in moving along our vision of mountain biking we have been forced to look more closely at the structure and operation of Misery Mountain. It has long been our goal to develop this topographical resource into a first-class, all-season, outdoor recreational facility. Up to now, our operation has been almost exclusively skiing/snowboarding, or what we might call snow sports. Now we have to structure our organization for multiple sports and multiple-season operations.

The board has adopted a slightly revised organizational structure to successfully manage

the future growth of our operations. With the potential for many types of conflicts to arise between different recreational activities, and with the need for consistent management of all

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operations, we have structured our operations in terms of business units, with the hill manager exercising overall responsibility for all business units. This has also led us to a slight rebranding. Instead of Misery Mountain Ski Area, we are now simply: Misery Mountain, with the following business units.

• Misery Mountain - Snow Sports • Misery Mountain - Mountain Biking • Misery Mountain - Chalet Rentals • Misery Mountain - Adventures

(special events such as the hill climb, and future ideas)

More Detail if You Want It

Peace River Ski Club – Business Units

Misery Mountain Snow Sports

• Our core business, accounts for 90% of revenue and expenses. • Providing ski/snowboard activities, which includes: hill & 3 lifts, snow making, chalet,

equipment rentals, lessons, snow making, etc.

Misery Mountain Biking

• A new business area. • Summer activities to complement the winter snow sports and utilize much of the same

equipment, facilities, terrain. • Needs to be explicitly included in our business plan and steps laid for the development of this

business unit. • Has the potential for significant expenses but only minor revenue. Thus it needs a long-term

commitment from the local municipalities.

Misery Mountain Chalet

• Has always been a small part of our business but we are being to develop it more explicitly. • Recent changes include: management (making this part of the hill managers responsibilities),

marketing (improved pricing & advertising), facilities (upgrades in kitchen, gradually acquiring more equipment, improvements to room acoustics).

• Needs to be explicitly included in our business plan and careful management to avoid conflicts with other business areas over the use of the space.

• Has the potential for significant revenue with a relatively small ongoing expense.

Misery Mountain Adventures

• A collection of special events and/or small scale opportunities that should at least pay for themselves (preferably be profit-generating) and provide a wider array of services/activities/promotion for Misery Mountain and serve our wider community.

• Misery Mountain Hill Climb: We should ensure this is an annual event that we have primary management of.

• Dark sky events, walking/hiking tours, Canada Day events, geocaching, waterslide, etc.

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Business Unit Highlights Snow Sports

• Business operations: o we have purchased a new Point of Sale system that should streamline our office

operations and reduce labour time; o Increased our presence on social media with a definite brand voice; o Streamlined school booking programs and membership registration processes o Implemented policies and practices that were previously non-existent o Some fleet increase in the rental shop (helmets, skis, several boots) o Increased line up of merchandise available o Sent our Hill Manager & Assistant Manager to industry conferences and seminars

to stay abreast of policy and industry standard changes o For the first time (since we never had any money previously) we put together a

capital plan and have been very successful in accomplishing the minor capital improvements we planned.

• Improvement to lifts: o Updated our chair evacuation gear (ropes and automatic belay devices); o repaired the splice on Dawson T-bar. o bull wheel overhaul on chairlift to replace the liner.

• Extensive work done on groomer from community supporters. Included: frame repair, bushing repairs, hoses, track work.

• Replaced all the plugs on the hydrants for snowmaking that weren’t compatible without a converter plug.

• Updating and increased signage to follow with new changes this fall for industry standard.

• Added more new run names and signs, made new run maps. • Brought in more skiers from out of town. Our Ski & Stay package partnering with local

businesses increased to approximately 10 purchases last year, up from approximately 4 the previous year.

• Planted grass in front of the chalet (where the ground had been torn up to install underground power lines to the new lights) and about 200 spruce seedings along the new ski runs.

Mountain Biking

• Received the new Mountain Biking Master Plan! This is a huge step forward. • Contracted a mechanical engineer to study and report on using bike hooks on the chairlift to

carry bikes up the hill. The engineer is currently working with AEDARSA to determine exactly what we need to do to certify the lift for this use.

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Chalet Rentals

• We brought the chalet rentals specifically under the responsibility of the hill manager and have seen this business unit grow dramatically this year – due to consistent attention and management, better pricing and marketing. This brought an immediate improvement to this business unit and I expect to triple our revenue from last year.

• Contracted an acoustical engineer to study the building and make recommendations for improving the acoustics. (thanks to the Rotary Club for this!)

Adventures

• We will likely be running the hill climb event entirely by ourselves this year, without the involvement of the Western Canadian Hill Climb Association. Last year’s event was moderately successful but hampered by the extremely cold weather. We are planning a new format that should attract more local riders.

Facilities Highlights To improve the lower hill runs:

• We have contoured run #1 (the feature park) and the access into it to make the terrain much more skiable.

• This will make our Feature Park incredibly better! Plus, we have purchased some features from the COP in Calgary and will be building more of our own. We expect our younger clientele to be thrilled!

• As well, we replaced and moved one of the light poles and installed new high efficiency lights to better illuminate the whole lower hill for night skiing.

• (last fall) We installed new lower hill light in front of the chalet.

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To improve the eyesore for the neighbourhood:

• We painted the two old sheds behind the pumphouse. • We moved our inventory of extra light poles from beside 89 street to the laydown area at

the top of the toboggan hill. • We refurbished the lower Dawson lift shack to match the new upper Dawson lift shack.

To meet government regulations: We had to build a new lift shack for the top of the Dawson T-Bar.

To Improve our Grande Chalet

1. We are building and installing acoustical panels according to the engineer’s specifications. This should bring the reverberation time down from the current 3.0 seconds to roughly the 1.5-1.8 seconds that is desirable for meeting rooms and concert halls.

2. We are replacing the somewhat outdated wall sconces and improving the lighting in the food service area.

3. Purchased a second, used, deep freeze for the concession. 4. Replaced the fire suppression system in the kitchen.

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Important This Year 1. We must develop a funding model for mountain biking, since there is very little

opportunity to capture revenue from it. This is a public recreational space, like a park, and we look forward to working with our municipal partners in the coming year to forge some sort of plan for moving forward with developing this regional resource.

2. Replace the pumps and pumphouse after the freeze-up event of December 2017.

Peace River Ski Club (1963)Comparative Balance Sheet

As at 05/31/2019 As at 05/31/2018 Difference

ASSET

CURRENT ASSETSPetty Cash 519.38 0.00 519.38Cash On Hand (Floats) 1,000.00 250.00 750.00Deposit (Cash to be Deposited) -4.01 -141.47 137.46Over/Short 125.27 0.00 125.27Bingo Account - ATB 10.00 10.00 0.00Raffle Account - ATB ***0824 3,809.59 1,952.38 1,857.21Casino Account - ATB 10.00 10.00 0.00Consolidated Gaming Account - ATB 77.34 77.30 0.04Mountain Bike Bk acct - ATB ***6500 12,850.96 7,500.00 5,350.96General Account - ATB ***7324 -2,342.33 -12,053.15 9,710.82GIC Investment - ATB ***6700 2,000.00 0.00 2,000.00Accounts Receivable 0.00 1,856.16 -1,856.16Inventory 5,000.00 5,000.00 0.00

Total Current Assets 23,056.20 4,461.22 18,594.98

Fixed Assets (At Cost)Computer 5,597.86 5,597.86 0.00Office Equipment 504.92 504.92 0.00Grooming Equipment 153,724.63 153,724.63 0.00Snow Guns 111,980.91 111,980.91 0.00Rental Equipment 126,911.58 126,911.58 0.00TV/Camera 2,940.00 2,940.00 0.00

Total Fixed Assets (Cost) 401,659.90 401,659.90 0.00

TOTAL ASSET 424,716.10 406,121.12 18,594.98

LIABILITY

CURRENT LIABILITIESAccounts Payable 3,109.34 23,692.14 -20,582.80CPP Payable 0.00 3,446.70 -3,446.70EI Payable 0.00 2,276.55 -2,276.55Income Tax Payable 0.00 6,630.13 -6,630.13

Receiver General Payable 0.00 12,353.38 -12,353.38GST Included In Revenue 2,612.91 238.09 2,374.82GST Paid On Purchases -1,146.95 9.18 -1,156.13

GST Owing (Refund) 1,465.96 247.27 1,218.69ATB Operating Loan 3500 11,842.33 5,441.51 6,400.82Current portion ATB Term Loan 1800 13,800.00 33,339.33 -19,539.33Current portion ATB Term Loan 1500 18,000.00 70,611.97 -52,611.97Prepaid rental income 500.00 500.00 0.00ATB MasterCard ***6520 1,206.12 0.00 1,206.12

Total Current Liabilities 49,923.75 146,185.60 -96,261.85

Long Term LiabilitiesATB Term Loan 1800 7,914.64 0.00 7,914.64ATB Term Loan 1500 39,100.59 0.00 39,100.59

Total Long Term Liabilitie 47,015.23 0.00 47,015.23

TOTAL LIABILITY 96,938.98 146,185.60 -49,246.62

EQUITY

EARNINGSContributed Surplus 59,453.76 59,453.76 0.00Retained Earnings 200,481.76 158,395.63 42,086.13Current Earnings 67,841.60 42,086.13 25,755.47

TOTAL EARNINGS 327,777.12 259,935.52 67,841.60

TOTAL EQUITY 327,777.12 259,935.52 67,841.60

Peace River Ski Club (1963)Comparative Balance Sheet

As at 05/31/2019 As at 05/31/2018 Difference

LIABILITIES AND EQUITY 424,716.10 406,121.12 18,594.98

Peace River Ski Club (1963)Statement of Cash Flows 06/01/2018 to 05/31/2019

Cash Flows from (used in) Operating ActivitiesNet Income (Loss) 67,841.60Adjustments to reconcile net income to net cash provided by (used in) operating activities:Decrease (Increase) in Operating Assets

Petty Cash -519.38Cash On Hand (Floats) -750.00Over/Short -125.27GIC Investment - ATB ***6700 -2,000.00Accounts Receivable 1,856.16

Increase (Decrease) in Operating LiabilitiesCPP Payable -3,446.70EI Payable -2,276.55Income Tax Payable -6,630.13GST Included In Revenue 2,374.82GST Paid On Purchases -1,156.13ATB Operating Loan 3500 6,400.82Current portion ATB Term Loan 1800 -19,539.33Current portion ATB Term Loan 1500 -52,611.97Accounts Payable -20,582.80

Net Cash provided by (used in) Operating Activities -31,164.86

Cash Flows from (used in) Investing ActivitiesNet Cash provided by (used in) Investing Activities 0.00

Cash Flows from (used in) Financing ActivitiesIncrease in Credit Card Payable

ATB MasterCard ***6520 8,904.02(Decrease) in Credit Card Payable

ATB MasterCard ***6520 -7,697.90Increase in Long Term Liability

ATB Term Loan 1800 7,914.64ATB Term Loan 1500 39,100.59

Net Cash provided by (used in) Financing Activities 48,221.35

Increase (Decrease) in Cash and Cash Equivalents 17,056.49

Cash and Cash Equivalents at Beginning of Period -2,644.94

Cash and Cash Equivalents at End of Period 14,411.55

Peace River Ski Club (1963)Comparative Income Statement

Actual06/01/2018 to

05/31/2019

Actual06/01/2017 to05/31/2018 Difference

REVENUE

LIFT PASSESSeason Lift Passes 72,232.96 64,802.68 7,430.28Lifts Punch Passes 3,076.15 3,922.69 -846.54Daily Lift Passes 26,191.92 59,905.12 -33,713.20Gift Certificates 1,040.00 563.00 477.00

Total Membership Income 102,541.03 129,193.49 -26,652.46

OPERATIONAL CONCESSIONBar Sales (Liquor) 8,692.30 2,142.36 6,549.94Food & Beverage 40,873.92 45,627.76 -4,753.84

Total Operational Concession Income 49,566.22 47,770.12 1,796.10

RENTAL SHOPDaily Equipment Rental 17,216.70 28,474.47 -11,257.77Season Rental Passes 9,682.23 6,965.50 2,716.73Rental Punch Passes 1,328.57 1,637.88 -309.31Retail Sales 2,312.47 1,022.64 1,289.83Tech Services 1,849.00 2,201.67 -352.67

Total Rental Shop Income 32,388.97 40,302.16 -7,913.19

LESSONSCamps 3,982.05 0.00 3,982.05Ski School (DO NOT USE) 0.00 4,108.06 -4,108.06Schools (USE #4520) 0.00 20,452.78 -20,452.78Ski & Stay Package 1,462.34 0.00 1,462.34Group/Drop in 6,398.06 0.00 6,398.06Day Lessons (DO NOT USE) 0.00 8,082.21 -8,082.21

Total Lesson Income 11,842.45 32,643.05 -20,800.60

FUND RAISINGRaffle 131,210.00 105,808.00 25,402.00Raffle Account Interest 2.62 0.00 2.62Snow Fest 32,990.63 22,127.50 10,863.13Corporate Sponsorship 6,056.89 2,795.71 3,261.18Misc. Events 434.00 0.00 434.00Ski Run Name 5,471.13 14,500.00 -9,028.87

Total Fund Raising Income 176,165.27 145,231.21 30,934.06

GRANTS AND DONATIONSDonations from Municipalities 67,186.80 10,000.00 57,186.80Donations 1,776.50 2,479.69 -703.19Donations in kind 0.00 98,802.64 -98,802.64

Total Grant/Donation Incom 68,963.30 111,282.33 -42,319.03

OTHERChalet Rental Income 7,363.81 4,680.24 2,683.57School Bookings 18,767.49 0.00 18,767.49Hill Climb 14,859.27 32,202.33 -17,343.06Xplornet Income 8,734.80 8,563.47 171.33AAMDC Dividends 0.00 28.32 -28.32Mountain Bike 6,196.13 9,655.11 -3,458.98Contract wages revenue 23,102.26 0.00 23,102.26

Total Other Income 79,023.76 55,129.47 23,894.29

TOTAL REVENUE 520,491.00 561,551.83 -41,060.83

EXPENSE

SKI HILL OPERATIONS


Actual06/01/2018 to

05/31/2019


Operations Manager 0.00 9,321.57 -9,321.57Advertising & Promotions 955.07 0.00 955.07Inspections 380.00 3,223.46 -2,843.46Groomer fuel (USE #5151) 0.00 6,388.13 -6,388.13Sled fuel (USE #5186) 0.00 542.45 -542.45Licenses And Permits 468.19 489.06 -20.87Lift Tickets/Passes 325.49 2,717.31 -2,391.82Groomer repair/maint/rent 3,730.94 4,864.02 -1,133.08Groomer fuel 6,771.69 0.00 6,771.69Freight -134.21 1,135.47 -1,269.68Chair Lift repair/maint/rent 1,653.44 8,869.39 -7,215.95Snow making repair/maint/rent 6,416.76 442.12 5,974.64T-Bar repair/maint/rent 504.00 14,146.49 -13,642.49Hill - supplies/maint/rent 2,196.03 96,660.46 -94,464.43Sled R & M 125.33 1,915.68 -1,790.35Sled Fuel 942.73 0.00 942.73Shop Equipment & Supplies 481.70 4.79 476.91Snow Guns 38.10 0.00 38.10Equipment Rental (DO NOT USE) 0.00 380.00 -380.00Slush Cup 35.00 63.00 -28.00Mountain Bike 804.92 0.00 804.92

Total Ski Hill Expenses 25,695.18 151,163.40 -125,468.22

RENTALSEquipment Repairs 2,394.12 14.99 2,379.13Freight - Rental Shop 76.88 156.31 -79.43Shop Supplies 1,364.62 603.52 761.10Purchases - Retail Shop 1,301.50 771.75 529.75Office Supplies - Rentals 80.32 156.56 -76.24

Total Rentals Expense 5,217.44 1,703.13 3,514.31

CONCESSIONBar expense (Liquor) 3,306.63 641.20 2,665.43Food & Beverage 22,298.61 25,102.52 -2,803.91Beverage (USE 5340) 0.00 102.94 -102.94Concession Equipment 1,366.65 0.00 1,366.65

Total Concession Expense 26,971.89 25,846.66 1,125.23

LESSONSInstructor Fees 449.99 0.00 449.99Advertising 19.05 0.00 19.05

Total Lessons Expense 469.04 0.00 469.04

BUILDINGRepairs And Maintenance 1,638.32 3,539.69 -1,901.37Supplies And Materials 19.94 0.00 19.94Utilities And Heating 33,709.46 24,823.04 8,886.42Janitorial Supplies 928.03 434.05 493.98

Total Building Expense 36,295.75 28,796.78 7,498.97

FUND RAISINGHill Climb 2,857.73 5,254.96 -2,397.23Raffle Expenses 59,226.06 56,110.16 3,115.90Raffle Bank Charges 426.27 936.92 -510.65Ski Run Name expense 0.00 574.50 -574.50Misc. Events 0.00 10,500.00 -10,500.00Snow Fest 19,862.16 10,329.62 9,532.54

Total Fund Raising Expense 82,372.22 83,706.16 -1,333.94

ADMINISTRATIVEAdvertising & Promotion (USE #5040) 0.00 2,820.86 -2,820.86Bank Charges And Interest 3,846.60 4,241.18 -394.58


Actual06/01/2018 to

05/31/2019


Insurance 5,717.09 4,916.19 800.90Operating Loan 3500 Interest 972.12 997.67 -25.55Term Loan 1800 Interest 2,175.31 3,124.71 -949.40Term Loan 1500 Interest 4,638.62 7,254.67 -2,616.05Term Loan 6700 Interest 0.00 378.86 -378.86Membership And Assoc. Dues 1,375.68 550.00 825.68Office Supplies 1,441.00 3,334.51 -1,893.51Penalties-Late Filing 9,981.00 4,075.65 5,905.35Telephone And Mobile 2,559.56 2,291.24 268.32Training Expense 38.10 50.00 -11.90Travel 2,113.78 0.00 2,113.78Discounts (chits, coupons etc.) 5,256.84 10,328.37 -5,071.53Miscellaneous 751.31 0.00 751.31

Total Admin. Expense 40,867.01 44,363.91 -3,496.90

WAGE/WAGE EXPENSEWages 220,361.77 173,738.84 46,622.93EI Expense 5,038.58 4,019.45 1,019.13CPP Expense 7,806.10 5,469.44 2,336.66WCB Expense 1,554.42 657.93 896.49

Total Wage Expense 234,760.87 183,885.66 50,875.21

TOTAL EXPENSE 452,649.40 519,465.70 -66,816.30

NET INCOME 67,841.60 42,086.13 25,755.47

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