The Pellucid Perspective - July 2011 - (Page 11)

Among the YtD market utilization “winners” are Seattle, Dallas and Boston while the “biggest losers” consist of Denver, Cincinnati and Columbus. Facility Gross Revenue by Department May 2011 8% 6% 4% 2% F&B Merch. Golf Fee Revenue Revenue Revenue ___________________________________________ 6% ___________________________________________ Total Revenue n Curr Month n Curr YtD ___________________________________________ ___________________________________________ 0% ___________________________________________ 1% 5% seeing more partial day weather exclusions this year which reinforces why you can’t rely on the alternate industry approaches to weather of measuring whole Playable Days or the even weaker approach of saying “temperature up, rounds up” or “rainfall up, rounds down”. On the facility golf fees (GF) revenue side via the May PGA PerformanceTrak numbers, the YtD period showed a 3% decline comprised of a 5% decrease in rounds and a 2% increase in rate at the All Facility level (they fixed last month’s glitch on the rate measure). Coupled with the YtD change in GPH of -7%, this produces a positive differential of 4 points suggesting that the vast majority of the national-level GF revenue unfavorability through May can be explained by poorer weather. n 0% –2% –4% –6% –8% ___________________________________________ –3% –3% –3% ___________________________________________ ___________________________________________ ___________________________________________ –6% Source: PGA Performance Trak p Looking at gross revenue by major departments, May was off 3% in Total Revenue dragged down by a 6% decrease in Golf Fee Revenue. The YtD revenue remains flat, driven by a 6% gain in Merchandising revenue and muted by the 3% decline in Golf Fee Revenue. All Facility Gross Revenue-Rounds-Rate May 2011 Curr Month Curr YtD Golf Fee Revenue-Rounds-Rate by Facility Type May 2011 YtD ___________________________________________ n Fac Gross Rev n Rounds n Rate (Rev/Rd) ___________________________________________ ___________________________________________ 8% 6% ___________________________________________ 2% 2% 2% 1% ___________________________________________ –2% –2% –2% ___________________________________________ –3% –4% –6% –5% –7% ___________________________________________ –9% ___________________________________________ Source: PGA Performance Trak 25% 20% 15% 10% 5% 0% –5% –10% ___________________________________________ n Fac Gross Rev ___________________________________________ n Rounds ___________________________________________ n Rate (Rev/Rd) ___________________________________________ 5% ___________________________________________ 4% 0% ___________________________________________ All Fac. Types Private Daily Fee Mun/ Mil/Univ Resort ___________________________________________ –3% –7% ___________________________________________ Source: PGA Performance Trak –5% 20% 15% 10% 5% 0% –5% –10% –15% p Looking at facility gross revenue, rounds and rate as reported by PerformanceTrak, May showed a 3% gross revenue decrease vs. year ago driven by a 7% decrease in rounds but offset by a 4% increase in rate per round played. For the Year-to-Date period, facility gross revenue is flat driven by a 5% decrease in rounds neutralized by a 5% increase in rate. As we’ll see in the revenue components chart below, we continue to see the revenue favorability in the “Other” classification, which we believe to be due to the fact that reporting facilities aren’t incorporating one-time collections (i.e. memberships, seasonal reserved tee time payments, etc.) in the Green Fees department. p Looking at Golf Fees Revenue performance by facility type and contributory factors (rounds vs. rate) for the May YtD period, the 3% drop in revenue was driven by a 9% decline in the Muni/Mil/Univ segment. The 5% decline in rounds was driven by declines of 7% and 6% in Muni/Mil/Univ and Daily Fee respectively. The 2% increase in rate was driven by the Resort (+6%) and Daily Fee (+2%) segments. Looking at the diagnostic measures within each facility type, Private slipped to -2% on revenue driven by a 2% decline in rounds. Daily Fee was down 4% driven by a 6% rounds decrease offset by a 2% increase in rate. Muni/Mil/Univ continues “the negative trifecta” showing a decline of 9% in revenue consisting of a 7% decrease in rounds amplified by a 2% decline in rate. Finally, Resort maintained an 8% gain fueled by a 2% increase in rounds enhanced by a 6% increase in rate. The Pellucid PersPecTive www.PellucidcorP.com 11 http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - July 2011

The Pellucid Perspective - July 2011
Contents
The PGA of America hits the restart button on player development
Permanent tee times, Chicago style
Positive P.R. leads to course record revenue month
Exploring the alternative golf universe
Jun 2011 YtD weather impact, May 2011 YtD utilization
Life at the top of the market
Minneapolis, MN Core Business Statistical Area (CBSA)
Comings & goings
Musings from the rough

The Pellucid Perspective - July 2011