10-RMSC review of Janesville realistic numbers
Janesville Ice Skating Center
Evaluation of Expected Profit and Loss numbers provided by Janesville Youth Hockey
ProjectedDifference
Club/Operated 2009
Item200820092010/2011vs Projected
Public Total$ 43,853$ 47,639$ 57,000 $ 9,361 (1)
Program Total 35,173 33,455 67,000 33,545
Contract Rental Total 91,857 137,617 193,000 55,383
Misc. Total 16,977 4,523 20,500 15,977
Total Revenue$ 187,860$ 223,234$ 337,500 $ 114,266 (2)
Total Personnel 147,369 139,522 95,000 (44,522) (3)
Total Utilities 83,493 80,136 99,500 19,364
Insurance 1,864 1,645 35,000 33,355
Total Maintenance 22,254 40,122 12,500 (27,622) (4)
All Misc. Expenses 20,073 31,850 42,950 11,100 (5)
Total Expenses 275,053 293,275 284,950 (8,325)
Profit/Loss$ (87,193.00) $ (70,041.00) $ 52,550.00 $ 122,591.00 (6)
** Janesville Youth Hockey proposed two budgets: conservative and realistic. This schedule represents the realistic budget.
(1) Total projected Public Admissions are very low compared to other RMSC facilities.
(2) An incremental increase in revenues of $114K does not justify the construction of a second sheet of ice.
(3) A typical RMSC managed facility grossing $300 K to $350K will have payroll expenses of $135K to 155K.
(4) Maintenance should be budgeted at a minimum of $21K.
(5) Miscellaneous expenses for a twin facility can be between $38K and $52K based on our experience.
(6) Net profit will be mostly impacted by the payroll expense line item; in our opinion, the payroll expense cost is too low.