Tiburon Peninsula Club 2012 A NNUAL M EETING Financial Review – November 8, 2012 1.

Tiburon Peninsula Club

2012 ANNUAL MEETING

Financial Review – November 8, 2012

1

2012 Financial Highlights

Financial metrics of the TPC are improving

Our cash position increased $100,000 YTD and now stands at over $1,400,000

Our partnership with First Republic is solid

There are currently over 30 families on the in-town membership wait list

A slight dues increase at the beginning of this year has helped offset a rise in costs of insurance, utilities and labor.

As of now, all operating units are operating in the black

2

2012 P&L Pre-Bonus Operating Resultsby Unit (through September 2012)

Note: Any year-end profits are returned to the respective business unitsfor equipment upgrades and to pay bonuses. There is no carry forward.

3

Running a Tight(er) Ship

4

TotalRevenuesas a % ofLabor Costs

Jerry Pang is hired As GM of TPC

This is why we have been able to minimize dues increases…

Highlights of 2012 YTD Capital Expenditures

Projects Completed

Clubhouse (largely café improvements) BBQs 80” Flat Screen New Sound System Upgraded kitchen equipment, flatware,

glassware and utensils

Tennis (resurfacing, leveling, windscreens, benches)

Aquatics (new heater in wading pool)

Locker Rooms (flooring and carpets)

Cap Ex remains below norm, but improvements continue

5

2012 Membership Review

As of September 30, 2012:

Regular Members = 699 (700 is max under CUP)Senior Members = 175Total Members = 874

Monthly Dues Income = $198,191

YTD Initiation Income = $424,293

In-Town waiting list of 30 families, each who have submitted a 10% non-refundable deposit (i.e. $1,850).

We budget for 35 new Regular Members annually (5% turnover) – from both resignations and Senior Member conversions.

YTD, 22 new Regular Members have joined the TPC. We are currently at our membership capacity due to our

conditional use permit

6

First Republic Construction Loan Update

1 – Loan Amount: $4,500,000

2 - Interest Rate: 5.35%

3 - Amortization: 15 years (refinanced in 2011)

4 - Monthly Payment: $37,000/month

5 - Prepay Penalty: None

Another refinancing was explored in April 2012 BOG determined the terms were not currently in the best

interest of the TPC. − Although there were interest rate savings, points and fees pushed out the breakeven to over three years.− We will continue to monitor refinancing opportunities.

7

Café – YTD Financial Performance

• Sales through September 2012 were $453,000 vs. $540,000 through September 2011– Café was open two months less this year than last

• Beer, wine and liquor are down nearly 30% from last year

• Fitness Area drink and snack sales are down 60% from last year

8

Final Thoughts

Congratulations to all business units on another exceptional year

Volunteer members - Thank you for your time and effort in making the TPC a great place for family, friends and other members to enjoy

2013 will be another great year for the TPC

9

UNIT P&LS, CASH AND MEMBERSHIP RESULTS BY MONTH(THOUGH SEPTEMBER 2012)

10

Funded by initiation fees

TPC Cash and Reserve Balances(as of September 30, 2012)

CASH BALANCES

"A" Operating Cash/Check Acct

Balance on Jan. 1, 2012 $239,991.23

Balance on Sep. 30, 2012 $156,034.89

Change ($83,956.34)

"B" Emergency Reserve Savings

Balance on Jan. 1, 2012 $558,151.23

Balance on Sep. 30, 2012 $558,673.06

Change $521.83

"C" Cap Ex "Replacement" (Ckg)

Balance on Jan. 1, 2012 $491,711.77

Balance on Sep. 30, 2012 $534,542.55

Change $42,830.78

"D" Cap Ex "New" (Savings)

Balance on Jan. 1, 2012 $40,141.90

Balance on Sep. 30, 2012 $40,146.92

Change $5.02

"E" Cap Ex "Swimming Pool" (Savings)

Balance on Jan. 1, 2012 $0.00

Balance on Sep. 30, 2012 $125,122.64

Change $125,122.64

Total Cash Balance as of Sept. 30, 2012: $1,414,620.06 11

Initiation Fees Dues Non-Member Surcharges

Revenues

Expenses

Aquatics

Fitness

Food/Bev

Tennis

Youth

Activity Specific Member Charges

Non-Member Activity Charges

Activity Fee

Activities – Set at Operational Breakeven

Monthly Debt Retirement Fees

Mortgage

Personnel/Operations- Aqua

Personnel/Operations - Fit

Personnel /Operations– F/B

Persn/Ops - Tennis

Persn/Ops - Youth

TPC Comprehensive Financial Model

20%

80%

Administration

Facility Operations

“A” - Operating Cash/Checking Acct

I

“C” - Capital Reserve“Replacement”

$250,000/yr

“B” - Emergency Reserve Savings Account

Half of Year End

Balance

II

“D” - Capital Expense (New)

Capital Expenses