Poppy Holding, Inc. Shareholders Report Update 2008
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Detailed insights on the golf industry trends, financial overview, and operational objectives of Poppy Holding, Inc., including key observations and strategic plans.
Poppy Holding, Inc. Shareholders Report Update 2008
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Presentation Transcript
SHAREHOLDERS REPORT Presented by Poppy Holding, Inc. January 24, 2008
INDUSTRY UPDATE In the last decade: • Number of golfers/facilities increasing by 5% • Number of rounds/golfer decreasing by 10% • Number of rounds/facility decreased by 5%
OBSERVATIONS NATIONAL TREND • Rounds stagnant in 2007 • Rounds/golfer decreasing • Rounds/facility decreasing • Facility growth slowing NORTHERN CALIFORNIA • Rounds at public courses grew 5.8% in 2007 • Low-end facilities getting more play than high-end facilities • NCGA membership stabilize/growing • Poppy Holding, Inc. rounds increasing
Poppy Holding, Inc.2007 FINANCIAL OVERVIEW • Gross revenue: $13.25M • Net cash flow: ($25,361) • Cash position: $3.6M • Investment account: $1.7M • Debt: $1.4M • Taxes (2006) - Federal $300K - State $ 72.5K
Poppy Holding, Inc.CONSOLIDATED GROSS REVENUE • 2007 Gross revenue: $13.25M Plan: $14M
Poppy Holding, Inc.CONSOLIDATED CASH FLOW • 2007 Cash flow: ($25K) Plan: $6161
Poppy Holding, Inc.CONSOLIDATED CASH POSITIONas of January 1, 2008 • Cash position: $3.6M
Poppy Holding, Inc.INVESTMENT ACCOUNTas of January 1, 2008 • Investment position: $1.7M
Poppy Holding, Inc.2007 OBJECTIVES • Play 113,135 rounds at Poppy facilities • Achieve net cash flow of $6,161 • Increase $/round • Pursue these strategic plan objectives: - Confirm appropriate staffing levels - Improve employee image and appearance - Enhance employee training - Make physical plant improvements - Upgrade point of sale systems - Improve golf course conditioning - Improve food & beverage product and service
Poppy Holding, Inc.2008 OBJECTIVES • Achieve consolidated cash flow: $23,724 • Increase rounds to 114,000 (+2.3%) • Increase spending/round at both courses • Grow food/beverage business by 10% and improve profit margins • Provide additional free instruction clinics • Increase free club fittings • Create business plan for golf academies at Poppy facilities • Select course renovation architect, approve upgrade concept/plan and commence permitting • Pursue options to unlock and leverage Poppy Holding, Inc. equity • Review for-profit tax status • Create business plan and revised renovation plan for Mulligan’s • Increase wedding business
Poppy Holding, Inc.2008 OBJECTIVES • Pursue strategic plan objectives - Adopt and implement a customer intimate philosophy - Improve Poppy course condition, design and playability - Create and execute Poppy facility master plans - Provide an affordable and high-quality product - Provide player development, fitness education and instruction - Enhance the total clubhouse experience at Poppy facilities - Provide an educational and historic experience at the NCGA headquarters and Poppy facilities - Protect member accessibility to NCGA-owned courses - Achieve a “Top 100” ranking - Retain the AT&T Pebble Beach National Pro-Am and attract other major events - Increase rounds to 120,000 by 2010
Poppy Hills2007 OBJECTIVES • Confirm appropriate staffing levels • Improve employee image and appearance • Enhance employee training • Make physical plant improvements • Upgrade point of sale systems • Improve golf course conditioning • Improve Food and Beverage Product and service
Poppy Hills2007 SUMMARY Confirm appropriate staffing levels • Added additional staff in several areas: - Driving range - Bag drop - Starter position - Call center - Restaurant
Poppy Hills2007 SUMMARY Improve employee image and appearance • Emphasized employee grooming • Acquired and provided new nametags • Increased uniform budget Enhance employee training • Held 8 customer intimate training sessions, including: - Server training - Golf operations - AED/CPR certification - Safety education
Poppy Hills2007 SUMMARY Make physical plant improvements • Completed kitchen renovation • Updated fixturing in and around the clubhouse, including: - Added new benches, ball washers and flags on course - Provided new bag stands on the range - Created new teaching tee for independent contractor - Provided new Pepsi vending machines on course - Added new lighting - Installed new shoe cleaning devices around clubhouse - Added new signage for restaurant
Poppy Hills2007 SUMMARY Upgrade point-of-sale system • Installed new Fairway systems server • Streamlined Maitre’D point-of-sale system • Enhanced website - Added virtual tour - Collect and blast emails • Upgraded phone system
Poppy Hills2007 SUMMARY Improve golf course conditioning • Acquired new greens aerators • Instituted an aggressive top dressing program • Began course enhancement plan - Architect interviews (3) - Chipping green trial of T1 bentgrass • Made course playability changes - Tree trimming - New tees - New bunker sand - New divot mix
Poppy Hills2007 SUMMARY Improve food and beverage product and service • Re-named restaurant to “Porter’s Grill and Bar” • Created new menu look and offerings - Authentic Mexican dishes added - Incorporated popular specials as permanent menu items - Added six draft selections • Pursued wedding business
Poppy Hills2007 ADDITIONAL HIGHLIGHTS • Achieved $1M in golf shop sales • Received “Top 100” award from Golf Business Magazine • Received “Best Promotional Idea” award among “Top 100” facilities • Ranked #12 on Zagat “Most Popular Courses in the Country” • Conducted 56 hours of instruction to 300 NCGA members • Offered approximately 30 free club fittings • Hosted Pacific Grove, Carmel, and RLS high school golf teams • Conducted AT&T Pebble Beach Junior Golf Assoc. events/clinics • Hosted NCPGA apprentice training • Acquired new fleet of golf carts
Poppy Ridge2007 OBJECTIVES • Confirm appropriate staffing levels • Improve employee image and appearance • Enhance employee training • Make physical plant improvements • Upgrade point of sale systems • Improve golf course conditioning • Improve Food and Beverage Product and service
Poppy Ridge2007 SUMMARY Confirm appropriate staffing levels • Restructured group coordinator position • Hired new 1st assistant professional and three additional apprentice professionals • Added six additional outside service staff • Added office coordinator position • Created Concierge/Receptionist position
Poppy Ridge2007 SUMMARY Improve employee image and appearance • Improved service and teamwork in all departments • Provided all golf operations and food and beverage staff same color uniform golf shirt and cap • Enforced nametag and grooming standards policy • Held daily, weekly, and monthly meetings by managers and supervisors Enhance employee training • Held 20 customer intimate training meetings • Conducted AED/CPR annual training for management • Required monthly safety education for all departments • Provided sexual harassment classes for management
Poppy Ridge2007 SUMMARY Make physical plant improvements • Improved clubhouse and Mulligan’s landscape • Developed a plan for administrative office upgrade • Replaced HVAC unit in the golf shop • Completed bunker, irrigation and drainage projects • Replaced necessary kitchen equipment • Started fescue removal project • Ongoing repair and maintenance of building, signage
Poppy Ridge2007 SUMMARY Upgrade point-of-sale system • Installed new Fairway systems server • Streamlined Maitre’D software system • Upgraded phone system • Genesis payroll system training HR and accounting Improve golf course conditioning • Started fescue removal project • Completed 3 of 8 Audubon certificates • Continued Heathland approach with irrigation, drainage and bunker improvements • Maintained course to standards
Poppy Ridge2007 SUMMARY Improve food and beverage product and service • Restructured Management team • Created Banquet sales position • Added host positions • Seasonal menu changes • Managers, chef on floor to converse with guests • Fine dining training for servers • Achieved $425k in banquet revenue (44 weddings, 62 banquets)
Poppy Ridge2007 ADDITIONAL HIGHLIGHTS • Improved service and teamwork in all departments • Made a good transition with new Director of Human Resources • Good annual safety record • Improved Genesis timecard management and payroll procedures • Conducted 32 free clinics • Offered 50 free club fittings • Conducted LARPD junior classes • Hosted Nike junior golf camps, Granada High School and Charter Middle School golf teams • Successful email blasts produced 3,000 rounds of golf • Controlled expenses and maintained course standards • Seaver Golf Academy hosted junior series and parent/child weekend events • Controlled expenses
