QUARTERLY ROUNDS AND REVENUE REPORT. Third Quarter Report Ending September 30, 2004
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1 QUARTERLY ROUNDS AND REVENUE REPORT Third Quarter Report Ending September 30, 2004
2 INTRODUCTION & METHODLOGY This report is based on operating results reported by golf facilities across the U.S. The data is based on same-store sales, meaning that only facilities that submitted data for both time periods (e.g., both September 2003 and September 2004) are included in the results. Approximately 1,100 rounds responses and 450 revenue responses were used in creating the third quarter section of the report. First quarter was based on 1,500 responses for rounds and 400 for revenue. Second quarter was based on 1,400 for rounds and 450 for revenue. (Sample sizes increase over time as additional data is submitted.) The data is weighted by facility type, size, region and price point to ensure national representativeness. Tables The tables show the percentage change in rounds or revenue for various time periods, 2004 vs Information is broken out by course type and public course price point. Weather A chart from the National Climatic Data Center shows the amount of precipitation for third quarter Rounds Played Coalition The quarterly rounds and revenue report is supported and endorsed by a coalition of the industry s leading associations: Club Managers Association of America GOLF 20/20 Golf Course Superintendents Association of America LPGA PGA of America PGA TOUR USGA QUARTERLY ROUNDS PLAYED REPORT PAGE 1
3 EXECUTIVE SUMMARY After three consecutive quarterly increases, rounds played dipped slightly in the third quarter of 2004 but remain up for the year. Rounds had been up 2.5 percent through the first two quarters of 2004, but a third quarter decrease of 0.9 percent lowered year-to-date results to +1.3 percent. Decreases in July (-3.5 percent) and August (-1.6 percent) were offset somewhat by a September rebound of +3.4 percent. Coinciding with the national increase in rounds played, golf facility revenues have increased 2.7 percent year-to-date, while revenue per round at public golf courses has increased just under one percent. The Mid-Atlantic region has posted the strongest gains in rounds so far this year, up nearly 12 percent in 2004 as compared to rain-soaked The Central/South Florida region has managed to hang on to a two percent gain for the year, even with rounds down 20 percent in August and 30 percent in September due to a fearsome hurricane season. With 80 percent of the playing season behind us, we look forward to ending the year on a positive note in terms of the volume of rounds being played. QUARTERLY ROUNDS PLAYED REPORT PAGE 2
4 Rounds Played 1st Qtr 2nd Qtr July Aug. Sep. 3rd Qtr YTD U.S. 6.9% 1.6% -3.5% -1.6% 3.4% -0.9% 1.3% Private 3.5% 2.7% -4.7% -3.2% 4.1% -1.8% 1.0% Public Premium 10.0% 2.1% -0.7% -3.3% 4.8% 0.0% 2.2% Standard 7.5% 1.4% -3.5% -2.2% -0.5% -1.9% 0.8% Value 8.7% 0.7% -4.1% 1.2% 5.6% 0.6% 1.8% Percentage change in rounds, 2004 vs Second quarter figures were revised since last report using 200 additional responses. Public facilities fall into one of three categories based on green fees: Premium (High) 80th-99th percentiles Standard (Middle) 40th-79th percentiles Value (Low) 1st-39th percentiles QUARTERLY ROUNDS PLAYED REPORT PAGE 3
5 Rounds Played Region July August September 3rd Qtr YTD U.S. -3.5% -1.6% 3.4% -0.9% 1.3% 1 Northeast -4.0% -0.7% 7.9% 0.2% 4.4% 2 Mid Atlantic -0.7% 1.2% 20.8% 5.6% 11.6% 3 Southeast -7.0% 0.6% -8.8% -5.0% 1.1% 4 Central/South Florida -8.7% -20.2% -29.5% -18.6% 2.0% 5 Gulf Coast -8.4% -3.4% -14.3% -8.5% -2.6% 6 South Central -7.6% 6.0% 10.7% 2.4% 1.4% 7 Lower Midwest -0.7% 2.0% 13.8% 4.1% 1.9% 8 Upper Midwest -5.3% -4.5% 5.5% -2.1% -2.7% 9 Mountain 0.5% -4.1% -1.4% -1.7% -2.2% 10 Southwest (1) 1.5% -1.5% -1.0% -0.3% 0.1% 11 Northwest (2) -2.4% -9.8% -4.7% -5.9% -0.5% Percentage change in rounds, 2004 vs (1) Includes Hawaii. (2) Includes Alaska. QUARTERLY ROUNDS PLAYED REPORT PAGE 4
6 Revenues 1st Qtr 2nd Qtr July Aug. Sep. 3rd Qtr YTD U.S. 5.6% 2.3% 1.4% -2.2% 5.1% 1.0% 2.7% Private 2.4% 2.7% 6.3% 2.3% -4.2% 1.9% 2.3% Public Premium 10.3% 2.6% 0.0% -5.5% 6.6% -0.1% 3.2% Standard 5.4% 3.3% -0.2% -2.3% 6.0% 0.7% 2.7% Value 5.7% -2.1% -1.3% -1.6% 9.4% 1.4% 1.3% Percentage change in golf facility revenues, 2004 vs Public facilities fall into one of three categories based on green fees: Premium (High) 80th-99th percentiles Standard (Middle) 40th-79th percentiles Value (Low) 1st-39th percentiles QUARTERLY ROUNDS PLAYED REPORT PAGE 5
7 Revenue Per Round 1st Qtr 2nd Qtr July Aug. Sep. 3rd Qtr YTD U.S. Public 0.8% 0.8% 2.0% -0.8% 1.2% 0.8% 0.8% Premium Public 1.3% 1.0% 2.0% -0.9% 0.8% 0.6% 1.0% Standard Public -1.0% 0.8% 1.9% -0.2% 1.4% 1.0% 0.1% Value Public 3.5% -0.7% 1.7% -2.3% 3.8% 1.1% 1.5% Percentage change in golf facility revenue per round, 2004 vs Public facilities fall into one of three categories based on green fees: Premium (High) 80th-99th percentiles Standard (Middle) 40th-79th percentiles Value (Low) 1st-39th percentiles QUARTERLY ROUNDS PLAYED REPORT PAGE 6
8 QUARTERLY ROUNDS PLAYED REPORT PAGE 7
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