The Pellucid Perspective - January 2011 - (Page 11)

MARKET FOCUS Dallas, TX Core Business Statistical Area (CBSA) Private PublicPremium PublicValue PublicPrice Learning & Practice Future Facility verything’s big in Texas (except the greens fees)! The Dallas TX CBSA ranks 17th of the Top 25 golf markets in the US by size (# of golfers). It has a solid golfer base with just over 435K golfers supplied by 169 18-hole equivalent (EHE) facilities. This produces, in the absolute, an ample consumer base of just over 2,600 golfers per EHE (45% above the national average). The supply mix is markedly skewed vs. the national distribution across Pellucid’s five access/value/usage segments with a much higher concentration of Private offsetting a relative undersupply of Public-Premium. One must keep in mind however that a considerable amount of the Private supply in TX is “value private” (prepaid greens fee type clubs). The change in supply since 2000 has exceeded the change in demand resulting in a cumulative dilution for existing facilities of 24% which is nearly 2.5x the national average of 10%. This means, while there still exists an ample number of golfers to service the supply, compared to 2000 the average existing operator has suffered an estimated 24% revenue decline due to supply dilution through some combination of rounds loss and/or rate erosion. The average facility has throughput of 38,000 rds/yr, higher than the national average. The more accurate comparison is that Dallas’ 60% utilization exceeds the national average by 7 points (in other words, even after factoring in the season length, they still use their facilities more efficiently than the average market). On Greens Fee RevpAR (Greens Fee Revenue/ Available (Capacity) Rounds), Dallas lags the national average with a $15 rate driven by its higher utilization rate but offset by a lower average effective greens fee rate (compared to the E tional average). This makes Dallas a good market for golfers but a challenging environment for profit-minded operators. n Golfer Base – Est. # of Golfers (Ks) – # of 18 Hole Equivalent Facilities – Golfers per 18-Hole Equiv. Supply Mix – Private – Pub-Prem – Pub-Val – Pub-Price – Learn & Prac Supply/Demand Balance – ‘00-’09 Cume Mkt Supply Dilution (-)/Absorption (+) Level* – Avg Ann Rds Velocity (18-hole Equiv.) Rounds & GF Revenue Health – % Utilization Rate – Avg. Ann. Rev. per Public Regulation EHE ($Ks) – Revenue per Available Round (RevpAR) * Period % Chng in Rds vs. Period % Chng in Supply Dallas TX CBSA Tot US Index vs. US 435.8 26,600 169 15,929 2,579 1,774 37% 16% 32% 12% 4% –24% 29% 20% 33% 13% 4% –10% 145 128 80 97 92 100 235 121 38,019 31,512 60% 53% $978 $1,137 $15 $16 113 86 94 Above average level vs. US (Index 111+) Average level vs. US (Index 90-110) Below average level vs. US (Index <90_) The Pellucid PersPecTive 11 http://WWW.PELLUCIDCORP.COM

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

The Pellucid Perspective - January 2011
Municipal Courses Face Major Property Tax Challenge
Dec YtD Weather Impact, Nov YtD Utilization
2011 Equipment News Highlighted by Acushnet Fate
Is Groupon Good for Golf?
Symposium Examines Varied Aspects of Affordability in Golf
Dallas, Tx Core Business Statistical Area (CBSA)
Yes! Golf the Recession’s Latest Victum
Year of Change for Golf, for Better or Worse?

The Pellucid Perspective - January 2011