The Pellucid Perspective - September 2016 - 14

MARKET FOCUS Cardinals not the only ones in the red in St. Louis St. Louis, MO Metro Core Business Statistical Area (CBSA) I n this monthly section we profile one of the Top 25 US Golf Markets based on a Pellucid composite score of the golfer base, supply level and rounds demand. Within that Top 25 universe, we then rank them based on relative health using a Pellucid weighted scoring system of 8 variables ranging from Population Growth to Estimated Profitability-per-Available Round. In this issue, we'll profile the 25th healthiest market, the St. Louis Metro Core Business Statistical Area (CBSA). Fate once again intervenes in our market profile timing as St. Louis was the site of the only US-hosted golf Olympics event back in 1904. St. Louis has also had a prominent role in civil rights such as Rev. John Berry Meachum establishing the Freedom School on a steam boat in the Mississippi to educate blacks circumventing a law that they couldn't be educated on Missouri soil (I love that kind of contrarian thinking!). Finally, who could forget the gateway St. Louis's historic claim as the "gateway to the West" (post Louisiana Purchase) and the financing of Charles Lindbergh's first solo transatlantic crossing (hence the Spirit of St. Louis). A lot has changed over the years but let's see whether that's been better/same/worse for the average golf operator in this market. By rounds demand (one of our 3 selection criteria for initial inclusion in the Top 25 list), the St. Louis CBSA ranks 24th among US markets with facility-reported annual demand of just under 3M rounds (that facility-reported tally counts both local and tourist play). Looking at the golf consumer base, we see that it's home to a healthy local golfer base of roughly 0.2M golfers (ranking 19th in the US, remember this is only local, resident population, doesn't count any annual tourist inflow). That golfer base is served by a healthy supply amount of 125 18-hole equivalents (EHE), producing an above average ratio of roughly 2.0K local resident golfers per EHE, 20%+ above the national average. The supply mix vs. the national distribution across Pellucid's five access/value/usage segments is fairly evenly balanced with slightly more concentration in Public-Value compared to the US average. The Private vs. Public access balance is 28%/72% which is right in line with the national average of 27%/73%. The balance of Value-added (Private & Public-Premium) vs. Value (PublicValue, Price and Learning & Practice) golf supply is 50%/50% which is in line with the 50%/50% national distribution. Within Public-Regulation golf, the distribution between Premium/Value/ Price is 33%/48%/19% vs. the national picture of 34%/42%/24% which again shows a slight skew to the Public-Value segment. 14 The Pellucid PersPecTive Private PublicPremium PublicValue Golfer Base - Est. # of Golfers (Ks) - # of 18 Hole Equivalent Facilities - Golfers per 18-Hole Equiv. PublicPrice Learning & Practice St. Louis, MO CBSA Supply Mix - Private - Pub-Prem - Pub-Val - Pub-Price - Learn & Prac Supply/Demand Balance - '00-'13 Cume Supply Growth/Decline* - '00-'13 Cume Rds Demand Growth/ Decline* - '00-'13 Cume Mkt Supply Dilution (-)/Absorption (+) Level* ** - Avg Ann Rds Velocity (Ks per 18-hole vs. ks) (EHE) Rounds & GF Revenue Health - % Utilization Rate - Avg. Ann. Rev. per Public Regulation EHE ($Ks) - Revenue per Available Round (RevpAR) Future Facility Tot US Index vs. US 247.4 22,900 125 14,672 1,979 1,561 127 28% 22% 32% 13% 5% 27% 23% 28% 16% 6% 104 96 116 80 80 4% -12% 9% -12% 43 100 -16% -21% 75 20.5 26.7 77 38% 56% $580 $1,155 $11 $19 68 50 58 * Inverse index, lower is better ** Period % Chng in Rds vs. Period % Chng in Supply Above average level vs. US (Index >105) Average level vs. US (Index 95-104) Below average level vs. US (Index <95) Remember that in this particular analysis Pellucid allows the definitions of Premium/Value/Price to "float" across each of the markets, driven by the local market price spectrum, so the absolute September 2016

Table of Contents for the Digital Edition of The Pellucid Perspective - September 2016

An opportune time for equipment creative disruption: Why Wilson Golf could be in Position A
Companies launch pay-per-hole, pay-for-time options
Superintendents key players in courses’ survival
Myrtle Beach market a testimony to cooperation
Golf weather impact: Aug down slightly; July utilization holds
Cardinals not the only ones in the red in St. Louis
Finally, some help for golf ’s time crunch
The Pellucid Perspective - September 2016 - 1
The Pellucid Perspective - September 2016 - An opportune time for equipment creative disruption: Why Wilson Golf could be in Position A
The Pellucid Perspective - September 2016 - 3
The Pellucid Perspective - September 2016 - 4
The Pellucid Perspective - September 2016 - Companies launch pay-per-hole, pay-for-time options
The Pellucid Perspective - September 2016 - 6
The Pellucid Perspective - September 2016 - Superintendents key players in courses’ survival
The Pellucid Perspective - September 2016 - 8
The Pellucid Perspective - September 2016 - Myrtle Beach market a testimony to cooperation
The Pellucid Perspective - September 2016 - 10
The Pellucid Perspective - September 2016 - Golf weather impact: Aug down slightly; July utilization holds
The Pellucid Perspective - September 2016 - 12
The Pellucid Perspective - September 2016 - 13
The Pellucid Perspective - September 2016 - Cardinals not the only ones in the red in St. Louis
The Pellucid Perspective - September 2016 - 15
The Pellucid Perspective - September 2016 - Finally, some help for golf ’s time crunch
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