In my second recent meeting with our GM I asked Rob to give us the details behind the 4th Qtr. 2006 Golf negative of $120,983. We were meeting, once again, at Lone Star Pizza and I picked up the tab again for our buffet lunch.
Rob mentioned that after the last issue (March 17) he had several people question "Wilson's numbers" and he said that he had told all who asked that the numbers were good and Wilson was not making them up. Thanks Rob! My plan is to use the next few issues, before the 1st Qtr. 2007 Core Numbers are available, to expand the detail on various lines of the 4th Qtr. 2006 Core Numbers with golf being the 1st to be looked at. Tht col. on right is a repeat from the last Gazette issue with *on Golf The 4th Qtr of 2006 is Oct. Nov. & Dec.
Revenues:
Member Green Fees $ 20,462
Guest fees $ 2,655
Cart Rentals $ 915
Driving Range $ 638
Annual Membership $ 59,429
Total golf revenues $ 84,099
Payroll expenses:
Pro Shop Payroll $ 37,016
Golf Maint. Payroll $ 79,674
Total Golf Payroll $116,690
Non Payroll expenses:
Pro Shop Expense $ 13,748
Golf Maint. Expense $ 56,644
None Payroll expense total $ 70,392
Net cash flow of golf for Qtr. - $102,983
(note that this is same number on rt. above)
(numbers furnished by Rob James)
4th Qtr. 06 Core Numbers -HLR
Amenity Cost
Gated Security (incl. salaries) $132,444
* Golf -net (incl. salaries) $102,983
Restaurant-net (incl. salaries) $ 95,632
Total amenity cost for Qtr. $331,059
Other Costs
Admin. Salaries (incl. GM) $ 73,430
Garbage fee $ 55,442
Other Adm. Exp. $ 84,425
Maintenance (incl. Salaries) $ 74,506
Roads (Incl salaries) $ 38,894
Recreation (no salaries) $ 6,750
A/R & collections (incl. salaries)$ 32,059
Total other costs $365,606
Revenue
Home owner Dues (Qtr. avg.) $511,728
Silverleaf dues $ 7,882
Initiation fees ($2,500 fee) $ 58,650
Bldg. permits $ 13,100
Garbage fees collected $ 78,222
Rd. assessment (avg. qtr) $ 27,144
Other revenues (estimate) $ 10,000
Total Revenues $706,726
Net operating margin for 4th qtr. $ 10,161
What do the numbers say?
Based on Rob's numbers, we are paying an average of $45,511.20 per year for each of the 7 Golf Maint. employees, which includes Clayton. This is based on full 40 hour weeks by all seven. If they are not putting in 40 hour weeks, then the hourly rate goes up from the $22.05 avg. rate.
This is in the face of having numerous volunteer golfers covering the course doing many things that would normally be done by the "hired hands". Are we overstaffed or understaffed, that is the question? One could also ask if we are overpaid?
(We know that Golf Maint. Payroll includes Clayton and six other workers, or a total of seven workers in all. If they all worked 40 hour weeks for 3 months (4.3 x 3 = 12.9 total weeks for the qtr.) that would be 12.9 weeks x 40 hours per employee x 7 employees or a total of 3,612 hours worked by the 7 employees during the qtr. The average hourly rate is $22.05 per hour that we are paying these guys)
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