DISCLOSURE FILING Bloomberg TIF DOCU HEADER HEADER COCO BEACH GOLF & COUNTRY CLUB ANNUAL REPORT 2008 r Coco Beach _ "ores.“.0111 161 GOLF & COUNTRY CLUB 11111111111111 0 /5 PO BOX 21420, SAN JUAN PR 00928-1420 * PHONE: 787-764-1000 * FAX; 787-758-7508 BANCO POPULAR® PO Box 362708 San Juan, Puerto Rico 00936-2708 Telefonos (787) 765-9800, 751-9800 June 3, 2009 Bloomberg Municipal Repository 100 Business Park Drive Skillman, New Jersey 08558 Dear Sir/Madam: Re: Coco Beach Golf & Country Club Project 2000 Series A and 2004 Series B Pursuant to Sections 3 and 4 of the Continuing Disclosure Agreement between Banco Popular de Puerto Rico, as Trustee and Dissemination Agent, and Coco Beach Golf & Country Club, S.E., we enclose a copy of the Annual Report and Financial Statement for the year ended on December 31, 2008. This notice is being provided for the above referenced issue in connection with our undertaking entered into in accordance with Rule 15c2-12 promulgated by the U.S. Securities and Exchange Commission. The information provided in this notice speaks only as of its date and is subject to change without notice. The delivery of this notice may not, under any circumstances, create an implication that there has been no other change to the information provided in the final official statement. We have not agreed to notify the secondary market of subsequent changes to the information in this notice. If you have any questions please call me at (787) 765-9800, ext. 5906. Cordially, L ufloz, Esq. Assistant VicePresident Fiduciary Services Enclosures KPMG LLP Anierican International Plaza Suite 1100 250 Munoz Rivera Avenue San Juan, PR 00918-1819 Independent Accountants' Report The Partners Coco Beach Golf & Country Club, S.E.:, We have examined management's assertion about compliance by Coco Beach Golf & Country Club, S.E. (the Partnership) with the covenants of Section 5.10(a) and 5.10(b) and the representation of Section 2.02(g) of the loan agreement dated September 28, 2000 with the Puerto RiCo Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority (the Authority) during the period from January 1, 2008 through December 31, 2008 included in the accompanying borrower's certificate dated May 26, 2009 (Exhibit). Management is responsible for the assertion. Our responsibility is to express an opinion on management's assertion based on our examination. Our examination was based in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence supporting management's assertion, and performing such other procedures we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Partnership's compliance with specified covenants and representation. In our opinion, management's assertion that Coco Beach Golf & Country Club, S.E. complied, in all material respects, with the aforementioned covenants and representation for the period from January 1, 2008 through December 31, 2008, is fairly stated, in all material respects. This report is solely for the purpose of complying with the covenants of Section 5.10(c) of the loan agreement dated September 28, 2000 with the Authority and is intended solely for the information and use of the partners and management of Coco Beach Golf & Country Club, S.E. and the intended users and others involved with the aforementioned loan agreement, and is not intended to be and should not be used by anyone other than these specified parties. LLB License No. 21 Expires December 1, 2010 May 26, 2009 23%761 KPMG W., a U.S. limited liability partnership, is the U.S. member lirm of KPMG International, a Swiss cooperative. Coco !tack GOLF 6 COUNTRY CLUB Exhibit Page 1 of 2 Borrower's Certificate Pursuant to Section 5.10(c) of the Loan Agreement dated September 28, 2000 between Coco Beach Golf & Country Club, S.E. and the Puerto Rico Industrial, Tourist, Educational, Medical , and Environmental Control Facilities Financing Authority May 26, 2009 Banco Popular de Puerto Rico Att: Luis CintrOn, Esq. 209 MUTIOZ Rivera Avenue Fifth Floor San Juan, Puerto Rico 00918 Puerto Rico Tourism Development Fund Att: Mr. Javier Ramos Stop 22, De Diego Avenue Centro Gubernamental Minillas San Juan, Puerto Rico 00942-2001 KPMG LLP Att: Ms. Luisette M. NegrOn 250 Mufloz Rivera Avenue American International Building, 11th floor San Juan, Puerto Rico 00918-1811 Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority Att: Mr. Fernando L. Battle Stop 22, De Diego Avenue Centro Gubernamental Minillas San Juan, Puerto Rico 00942-2001 Ladies and Gentlemen: This borrower's certificate is made pursuant to Section 5.10(c) of the loan agreement dated September 28, 2000 (the Loan Agreement; all capitalized terms used herein shall have the meaning set forth in the Loan Agreement unless otherwise defined herein) between Coco Beach Golf & Country Club, S.E. (the Partnership) and the Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority (the Authority). We certify the following: The Partnership has complied with each of the covenants of Section 5.10(a) and 5.10(b) and the representation of Section 2.02(g) of tlfe Loan Agreement and, accordingly, an Event of ra ability has not occurred. Coco Beack . _dmaraggel.. GOLF e. COUNTRY CI LIB Exhibit Page 2 of 2 Borrower's Certificate Pursuant to Section 5.10(c) of the Loan Agreement dated September 28, 2000 between Coco Beach Golf & Country Club, S.F. and the Puerto Rico Industrial, Tourist, Educational, Medical , and Environmental Control Facilities Financing Authority The percentage of the Partnership's gross income during the period from January 1, 2008 through December 31, 2008 that was derived from sources within the Commonwealth of Puerto Rico (the Commonwealth) under the sourcing rules of the Code as in effect on the date of the delivery of the Bonds was 100%. The percentage of the Partnership's gross income during the period from January 1, 2008 through December 31, 2008 that was, or was treated as effectively connected with the active conduct of its trade or business in the Commonwealth under the Code as in effect on the date of the delivery of the Bonds was 91%. The percentage of the Partnership's gross income during the period from January I, 2008 through December 31, 2008 that was, or was treated as effectively connected with the active conduct of its trade or business outside the Commonwealth under the Code as in effect on the date of the delivery of the Bonds was 0%. Coco Beach Golf & Country Club, S.E. By: Arturo Diaz, Jr. President Coco Beach Development Corporation Managing Partner INDEX Page Executive Summary 1 Operating Data 7 Audited Financial Statements 27 Officer's Certificate of no event of default and year-end Audited Financial Statements representations (Section 5.08 of the Loan Agreement) 42 Officer's Certificate as to Event of Taxability (Section 5.10 of the Loan Agreement) 47 Coco Beach -• GO7F01.1Lit Annual Executive Summary Report 2°08 Consolidated Operations During zoo8 Coco Beach Golf & Country Club/Trump International Golf Club PR faced many challenges. Golf course was not available t00% due to the renovations to the Golf Courses throughout the year and completion of the clubhouse renovation during the first quarter. These were part of the on-going projects in preparation for the PGA event to be held in March 2(308 & 2009 and the re-branding of the property to a Trump International Golf Club. Another negative factor for the operations was the performance of the Sol Melia Resort throughout zoo8. Due to this, there was an increased focus on building and developing local play and tournaments. This market is very price sensitive and contributed significantly to our inability to achieve budgeted rate targets. Gran Melia Puerto Rico provided 2,182 individual rounds for the year, 1,216 rounds less than 2007. The capture ratio from the hotel was 2.45% of the occupied rooms. Hotel occupancy for the year was 50% versus an annual budgeted occupancy of 69% for 2008. We expect an increase in rounds during 2008 as the hotel was forecasting a higher occupancy and is being marketed to a different clientele. The hotel rate for individual golf play was increased to szoo.00 per round for the high season effective Mid-December zoo8. Coco Beach/Trump International hosted the first official PGA Tour Event in Puerto Rico to great reviews. Attendance exceeded expectations and the media coverage during the event was exceptional. Coco Beach GOLF 6 COUNTRY CLUB Restaurant operations remained closed for 2008, due to the lack of business. Restaurant space was used for awards ceremonies and weddings. The Lounge continued operating seven (7) days a week. Clubhouse operation days were reduced to five days a week starting in June zoo8. The temporary closing was scheduled until October but was extended to the middle of December. Additional maintenance staff was added throughout the year to be able to maintain course to the highest standards. Steps were taken to lower operating costs throughout the year. These types of initiatives will continue throughout 2009 in order to achieve NOl targets. ❖ Total Revenue ($2,715,247) was short $2,732,767 to budget. ❖ Total Cost of Sales was 7.4% above budget. ❖ Total Payroll and Related Expenses were above budget by $119,785. ') Total Operating Expenses were above budget by $108,007. • Membership sales goals during zoo8 were not reached. Membership totaled fifty during 2008 versus ioo budgeted at year end 2008. We had five resignations. 2 CocoiBeack GOLF & COUNTR CLUB Golf Operations •:* Golf Operations revenues were short of budget by $1,517,480. This is a result of golf revenue falling short by $1,314,641 and membership dues falling short by $72,729. • Golf rounds were short by 14,465. ❖ Actual average rate per round for zoo8 was $81.48 vs. the budgeted rate of $89.56. • The average rate per round shortfall represents $131,880 (8.07 x 16,332 of paid rounds) of the shortfall in golf revenue. • Merchandise sales were below budget by $98,634. • Cost of sales was above budget by 7.80/o. Sales were held during zoo8 to clear all Coco Beach logo inventory as new Trump merchandise was being purchased for the Trump Branding. • End of the year inventory value was $184,995. + Payroll and related expenses were above budget by ($117,834). Golf Operations was fully staffed during zoo8. Key positions hired during part of 2008 were Second Assistant Golf Superintendent and Assistant Golf Professional. 3 Coco Beach C)' 60Lf s COUNTItTCLUT3— + Golf Operations expenses were above budget by $25,592. Due to the rebranding of all new supplies that were ordered with the new Trump logo. ❖ Golf Maintenance expenses were over budget by $12o,548.Contract labor being the largest expense $102,391. This was for all work on the golf course in preparation for zoo9 PGA tour event. + Gas & oil expenses were over budget by $21,856, mainly due to the continuous gasoline price increases. + Machine repairs were over budget by $47,786. Membership By the end of zoo8, Coco Beach membership consisted of eight individual memberships, nine corporate memberships, three villa memberships and one social membership. The club had a total of fifty members/users. We had five resignations during 2008; four individual and one corporate membership. We continued to offer a payment plan for memberships throughout zoo8. The Club faced challenges, as the Beach Club construction has not begun. Potential members are concerned, as there are no other facilities for the family to enjoy. Beach Club Facilities are scheduled to start construction during 2009. Several open houses were held during zoo8 to increase awareness of membership offerings and catering space. 4 )4. Coco Beach GOLF & COUNTRY CLUB Food & Beverage ❖ Food and Beverage revenues were below budget by $254,981. This is largely due to the fact that Paradise Bay Grille was not opened for a la carta restaurant service throughout zoo8 and Rainforest Ballroom not available during the first quarter. ❖ Costs of sales were above budget by 2.2%. ❖ Payroll and related expenses were below budget by $23,706. Staff for the Food and Beverage department is subcontracted for special events keeping staff to a minimum. ❖ Operating expenses were above budget by $22,037. ❖ Coco Beach representatives attended one bridal expo during zoo8 This event was successful. This initiative will continue throughout 2009. General and Administrative + Payroll and related expenses were above budget by $23,072. • Operating expenses were below by $34,875. Building ❖ Payroll and related expenses were above budget by $2,584. 5 CCo oco B ack GOLF & COUNTRY CLUB ❖ Operating expenses were above budget by $39,907. 4. Utilities were above budget by $27,669. Electricity was above budget by $64,505 mainly to the increase charges from AEE. Consumption also increased as light fixture was changed to incandescent during renovation. While the course enjoyed positive feedback from the public, Coco Beach Golf was challenged by the presence of on going construction along all perimeter and renovation of the Championship course in preparation for the PGA event to be held in March 2009. Coco Beach Golf and Country Club was officially branded to Trump International Golf Club, Puerto Rico in April zoo8. 6 NMI NIB MB UM NM Int Mill NM - MIN r= MI 111111 OM MIN Coco Beach Golf & Country Club Consolidated Financial Statement For the Twelve Months Ending December 31, 2008 Jan Actual Income Golf Operations Food & Beverage Other Income Feb Actual March Actual April Actual May Actual June Actual ,July Actual August Actual Sept Actual Oct Actual Nov Actual Dec Actual Total ActUBdut Total Budget $152,721 25,643 262 $242,176 71,649 134 $249,505 190,529 311 $247,626 90,754 282 $193,190 74,029 121 $165,808 105,750 131 $117,755 40,066 175 $138,454 64,017 147 $64,132 29,327 128 $110,288 40,073 . 96 $102,013 30,165 139 $131,646 35,829 168 $1,975,312 797,842 2,094 $3,432,793 1,052,821 962,400 Total Income 178,626 313,959 440,345 338,662 267,340 271,689 158,016 202,618 93,587 150,455 132,317 167,634 2,715,248 5,448,014 Cost of Sales Merchandise Food & Beverage 29,665 7,162 36,936 21,453 59,746 64,715 25,101 35,009 16,335 27,403 13,269 19,655 13,090 10,989 8,301 16,829 5,306 6,233 10,732 13,777 9,459 7,761 15,016 10,941 242,956 243,627 266,960 305,778 Total Cost of Sales 36,827 58,389 124,451 60,110 43,438 32,924 24,079 25,130 13,539 24,509 17,220 25,957 486,583 572,744 135,549 31,877 24,758 16,555 149,935 29,392 24,090 17,922 183,615 61,609 25,983 19.574 150,988 49,922 26,097 16,879 132,938 34,320 23,961 15,425 134,050 53,687 26,344 14,684 129,219 39,422 27,259 14,892 129,382 31,003 20,989 13,388 118,521 28,528 21,940 14,064 140,406 30,295 26,147 18,100 129,451 28,017 23,134 14,761 173,086 37,674 25,441 19,169 1,707,140 455,746 296,143 193,413 1,589,306 479,450 273,071 190,830 208,739 221,339 290,781 243,886 206,644 228,765 210,792 194,762 183,053 212,948 195,363 255,370 2,652,442 2,532,657 105,331 4,881 24,695 6,830 5,711 31,318 126,238 11,377 33,349 7,019 11,095 37,777 108,202 14,396 39,507 1,635 25,969 53,482 60,811 6,447 34,148 7,084 17,568 47,591 87,671 3.163 25,793 4,329 10,492 66,418 73,662 7,090 22,906 1,107 9,246 55,556 90,550 8,653 28,114 63,099 12,007 19,892 3,778 4,901 46,223 69,975 9,999 20,497 8,822 11,956 34,968 78,610 8,726 17,793 52,817 71,695 8,458 28,995 13,854 8,886 53,961 6,016 7,058 28,702 95,092 4,940 32,455 20,883 13,117 6,819 178,766 226,855 243,191 193,627 197,864 169,567 197,927 185,847 149,900 154,217 158,669 173,306 2,229,736 2,121,727 (245,706) (192,624) (216,088) (158,961) (180,606) (159,567) (274,782) (203,121) (252,905) (241,219) (238,935) (266,999) (2,653,513) 220,886 1,000 450 7,930 6,252 17,394 710 1,000 450 7,930 10,969 17,394 1,175 1,013 450 9,550 1,013 450 8,424 1,000 450 8,406 12,226 17,394 1,232 1,013 450 8,154 8,770 17,394 528 _____ 1,013 450 8,153 5,954 17,394 559 1,013 450 8,406 7,544 17,394 628 ---------33,736 1,013 450 8,078 47,086 17,394 17,394 17,394 1,823 1,201 1,206 .___.____.________ ____ ___, 38,938 30,230 28,482 75,227 40,708 35,115 37,322 31,868 34,309 33,523 35,433 454,891 533,090 (279,442) (231,562) (248,318) (187,443) (255,833) (200,275) (309,897) (240,443) (284,773) (275,528) (272,458) (322,432) (3,108,404) (312,204) (101,080) (14,104) (46,724) (7,562) (189) (110,522) (101,080) (14,104) (43,933) (7,562) (728) (110,522) (101,080) (14,000) (47,186) (7,582) (682) (110,522) (101,080) (627) (45,697) (7,562) (5,038) (110,522) (101,080) (9,632) (47,661) (7,562) (4,914) (110,522) (101,080) (100,221) (18,759) (48,140) (7,562) (4,601) (110,522) (100,221) (9,606) (48,386) (7,562) (4,803) (110,522) (100,221) (9,296) (47,063) (7,562) (4,010) (110,522) (100,221) (9,031) (48,871) (7,562) (3,930) (110,522) (100,221) (7,968) (47,536) (7,562) (3,849) (1113,522) (100,221) (7,703) (42,154) (7,562) (3,768) (133,544) (1,207,806) (114,830) (559,909) (90,744) (41,253) (1,349,286) (1,231,810) (169,248) (566,876) (90,744) 0 (1,224,000) Payroll & Related Golf Operations Food & Beverage General & Administrallve Building Maintenance Total Payroll & Related Operating Expenses Golf Operations Food & Beverage General & Administrative Marketing Building Maintenance Utilities Total Operating Expenses Income Before Fixed Charges 29,557 1,050,936 912.000 100,135 78,100 339,906 374.783 165,000 79.337 143,792 103,884 4137,960 515,630 ------------- A-- Fixed Charges Common Area Maintenance Golf Course Maintenance Land Rent Insurance Management Fee Property Tax Municipal Tax Total Fixed Charges Net Operating Income Less Interest Expense Bonds Less Interest Expense-Gad Note Less Interest Expense-AFICA 2 Less Bond issuance Costs Less Capital Lease Interest Expense Less Depreciation - (46,358) (7,562) (4,741) (110,522) 1,013 1,026 450 450 8,406 8,406 7,111 9,118 17,394 17,394 728 941 --------- __________ ______ 1,013 450 8,406 4,211 17,394 394 _ 18,000 12,130 5,400 5,400 100,249 95,160 117,261 190,680 208,728 216,000 11,123 7,850 ________ ____________ IIIIIII OM ON Mill III all OM MI NIS IMP M11111. MIN NMI r— MO MI MN Coco Beach Golf & Country Club Consolidated Financial Statement For the Twelve Months Ending December 31, 2008 Jan Actual Feb Actual March Actual April Actual May Actual June Actual Less TDF Fees Less Trustee Fees Add Interest Income/Restricted Funds Add Interest Income FF&E Account Add Disposal of Assets (27,282) (29,631) (27,287) (110,828) (47,979) (141,771) 6,437 66 7,073 8,812 70 5,814 6,269 6,904 Net Profit (Loss) (580,402) (532,049) CO July Actual (47,969) (2,336) 5,896 170 August Actual Sept Actual Oct Actual Nov Actual (47,973) (47,971) ' (47,705) (47,707) (143,799) 6,684 6,468 111 6,813 6,044 172,373 (549,755) (563,183) (578,914) (605,405) (643,941) Dec Actual (390,459) (604,839) (596,757) (591,779) Total Actl(Bdgt Total Budget 5,304 94 28,893 (767,902) (2,336) 76,318 511 201,266 (521673) (6,282) 72,000 (726,892) (6,964,375) (4,051,037) 0 r- re on sr on sr um usi am am mis or an um r r Gran Melia Occupancy 2008 Revised 02/28/09 Jan Occupancy % Feb I Mar I April May 1 June # July Aug Sept Oct I Nov I Dec I YTD Projected I BUDGET Annual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual / Forecast 2008 27% 45% 51% 59% 45% 59% 78% 64% 33% 45% 54% 37% 50% 50% 69% Occupied Rooms 4,068 6,408 7,653 8,593 6,831 8,540 11,826 9,616 4,833 6,848 7,910 5,601 88,727 88,727 Available Rooms 15,066 14,094 15,066 14,580 15,066 14,580 15,066 15,066 14,580 15,066 14,580 15,066 177,876 177,876 191 407 146 488 132 107 64 78 59 200 103 207 2,182 2,182 Sol Melia Golf Rounds Capture Ratio Per Occ Rm Budget 5% 70% 6% 72% 2% 74% 6% 73% 2% 67% 1% 64% 1% 86% 1% 63% 1% 63% 3% 66% 1% 76% 4% • 56% 2% 2% 122,492 177,390 6,160 5% DIFF Actual vs. Budget -19.2% (33,765) (486) (3,978) -2.57% Coco Beach Colt & Country Club Consolidated Financial Statement For the Twelve Months Ending December 31, 2908 YTD 2008 Golf Rounds Income Golf Operations Food & Beverage Other Income Total income % of Sales 18247 $1,915,313 797,840 2,094 YTD Budget of Sales 32712 Variance to Budget -14465 70.5% $3,432,793 63.0% ($1,517,480) 1,052,821 19.3% ($254,981) 29.4% 962,400 17.7% ($960,306) 0.1% 2,715,247 100.0% 5,448,014 100% (2,732,767) Cast of Sales Merchandise Food & Beverage 242,957 243,627 8.9% 9.0% 266,968 305,776 Total Cost of Sales 486,584 17.9% 572,744 1,707,140 455,745 296,144 193,413 62.9% 16.8% 10.9% 7.1% 1,589,306 479,450 273,071 190,830 29.2% 8.8% 5.0% 3.5% 117,834 (23,705) 23,073 2,583 2,652,442 97.7% 2,532,657 46.5% 119,785 1,050,937 100,136 339,905 79,336 143,791 515,629 38.7% 3.7% 12.5% 2.9% 5.3% 19.0% 912,000 78,100 374,783 165,000 103,884 487,960 16.7% 1.4% 6.9% 3.0% 1.9% 9.0% 138,937 22,036 (34,878) (85,664) 39,907 27,669 2,229,734 82.1% 2,121,727 38.9% 108,007 (2,653,513) -97.7% 220,886 4.1% (2,874,399) 12,128 5,400 100,252 117,260 208,728 11,123 0.4% 0.2% 3.7% 4.3% 7.7% 0.4% 18,000 5,400 95,160 190,680 216,000 7,850 0.3% 0.1% 1.7% 3.5% 4.0% 0.1% (5,872) 0 5,092 (73,420) (7,272) 3,273 454,891 16.8% 533,090 9.8% (78,199) (3,108,404) -114.5% (312,204) -5.7% (2,796,200) (1,207,810) (114,831) (559,909) (90,746) (41,253) (1,349,291) (767,902) (2,336) 76,317 510 201,266 -44.5% -4.2% -20.6% -3.3% -1.5% -49.7% -28.3% -0.1% 2.8% 0.0% 7.4% (1,231,810) (169,248) (566,876) (90,744) -22.6% • -3.1% -10.4% -1.7% 0.0% -22.5% -9.6% -0.1% 1.3% 0.0% '0.0% 24,000 54,417 6,967 (2) (41,253) (125,291) (246,029) 3,946 4,317 510 201,266 (6,964,389) -256.5% -74.4% (2,913,352) Payroll & Related Golf Operations Food & Beverage General & Administrative Building Maintenance Total Payroll & Related Operating Expenses Golf Operations Food & Beverage General & Administrative Marketing Building Maintenance Utilities Total Operating Expenses Income Before Fixed Charges 4.9% 5.6% -10.5% (24,011) (62,149) --(86,160) Fixed Charges Common Area Maintenance Golf Course Maintenance Land Rent Insurance Management Fee Property Tax Municipal Tax Total Fixed Charges Net Operating Income Less Interest Expense Bonds Less Interest Expense-Grid Note Less Interest Expense-AFICA 2 Less Bond Issuance Costs Less Capital Lease Interest Expense Less Depreciation Less TDF Fees Less Trustee Fees Add interest Income/Restricted Funds Add Interest Income FF&E Account Add Misc Income Net Profit (Loss) (1,224,000) (521,873) (6,282) 72,000 (4,051,037) 10 Coco Beach Golf & Country Club Golf Operations For the Twelve Months Ending December 31, 2008 YTD 2008 Golf Rounds Income Member Dues Green Fees Cart Fees Tournament Fee Merchandise Other Income Total Income % of Sales YTD Budget of Sales Variance to Budget -14465 18247 32712 $153,146 784,991 477,988 40,000 386,762 72,426 $225,875 1,679,906 897,714 40,000 485,396 103,902 6.6% 48.9% 26.2% 1.2% 14.1% 3.0% ($72,729) ($894,915) ($419,726) $0 ($98,634) ($31,476) 3,432,793 100.0% (1,517,480) 8.0% 41.0% 25.0% 2.1% 20.2% 3.8% -------1,915,313 100.0% Cost of Sales Merchandise COS 242,957 62.8% 266,968 55.0% ($24,011) Total Cost of Sales 242,957 62.8% 266,968 53.0% (24,011) 437,081 839,737 160,941 269,381 22.8% 43.8% 8.4% 14.1% 421,365 752,729 123,730 291,482 12.3% 21.9% 3.6% 8.5% $15,716 $87,008 $37,211 ($22,101) 1,707,140 89.1% 1,589,306 46.3% 117,834 1,022 5,850 3,240 945 6,774 4,878 18,896 8,211 16,608 13,291 6,823 12,000 1,500 2,090 17,364 0.1% 0.3% 0.2% 0.0% 0.4% 0.3% 1.0% 0.4% 0.9% 0.7% 0.4% 0.6% 0.1% 0.1% 0.9% 1,500 3,000 2,700 4,200 7,800 6,000 12,000 5,400 12,000 7,800 4,800 12,000 1,500 1,200 12,000 0.0% 0.1% 0.1% 0.1% 0.2% 0.2% 0.3% 0.2% 0.3% 0.2% 0.1% 0.3% 0.0% 0.0% 0.3% ($478) $2,850 $540 ($3,255) ($1,026) ($1,122) $6,896 $2,811 $4,608 $5,491 52,023 $0 $0 $890 $5,364 119,492 6.2% 93,900 2.7% 25,592 2,954 1,250 108,391 27,047 18,515 227,119 143,813 125,056 1,381 0.2% 0.1% 5.7% 1.4% 1.0% 11.9% 7.5% 6.5% Q.1% 0.0% 0.1% 0.1% 0.4% 1.1% 3,000 300 6,000 12,000 3,600 222,000 242,000 103,200 3,000 4,000 4,800 2,400 2,400 12,000 0.1% 0.0% 0.2% 0.3% 0.1% 6.5% 7.0% 3.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.3% ($46) $950 $102,391 515,047 $14,915 $5,119 ($98,187) $21,856 ($1,619) ($4,000) ($2,477) ($253) $5,645 $8,612 Payroll & Related Golf Ops Wages Golf Maintenance Wages Employee Taxes Employee Benefits Total Payroll & Related Operating Expenses Golf Operations Dues & Subscriptions Meetings & Seminars Handicap Service Laundry & Dry Cleaning Linen Members Amenities Supplies - Bag Room Supplies - Golf Shop Supplies- Locker Room Supplies - Range Printing & Stationery Rental Clubs Rental Shoes Telephone & Pagers Uniforms Total Operations Expenses Golf Maintenance Consulting & Testing Dues & Subscriptions Contract Labor Course Supplies Equipment Rentals Fertilizers Treatments & Pesticides Gas & Oil Meetings & Seminars Mosquito Control Operating Supplies-Maint Bldg Refuse Removal Repairs & Maint.-Building Repairs & Maint.- Irrigation & Drain 2,323 2,147 8,045 20,612 11 Coco Beach Golf & Country Club Golf Operations For the Twelve Months Ending December 31, 2008 YID 2008 Repairs & Maint.-Equip & Machine Repairs & Supplies - Carts Sand, Soil & Stone Tools & Supplies Plant, Seed, Sod Telephone & Pagers Uniforms 167,783 13,913 16,255 7,066 Total Maintenance Expenses % of Sales YTD Budget of Sales Variance to Budget 3,366 33,212 8.8% 0.7% 0.8% 0.4% 0.0% 0.2% 1.7% 120,000 16,800 21,600 4,800 6,000 1,800 18,000 3.5% 0.5% 0.6% 0.1% 0.2% 0.1% 0.5% $47,783 ($2,887) ($5,345) $2,266 ($6,000) $1,566 $15,212 930,248 48.6% 809,700 23.6% 120,548 0.0% 0.1% 0.0% 0.0% 2,400 2,400 1,200 2,400 0.1% 0.1% 0.0% 0.1% ($2,400) ($1,204) ($1,200) ($2,400) Landscape Fertilizer and Treatments Operating Supplies Tools and Supplies Plants and Shrubs 1,196 Total Landscape Expense 1,196 0.1% 8,400 0.2% (7,204) 1,050,936 54.9% 912,000 26.6% 138,936 (1,085,720) -56.7% 664,519 19.4% (1,750,239) Total Operating Expenses Net Profit (Loss) 12 Coco Beach Golf & Country Club Food and Beverage For the Twelve Months Ending December 31, 2008 YTD 2008 Golf Rounds % of Sales 18247 YTD Budget of Sales Variance to Budget -14465 32712 Income $50,091 435,448 35,390 6.3% 54.6% 4.4% $115,424 480,257 65,424 11.0% 45.6% 6.2% ($65,333) (44,809) (30,034) 520,929 65.3% 661,105 62.8% (140,176) 45,469 30,483 132,560 5.7% 3.8% 16.6% 98,136 31,871 179,917 9.3% 3.0% 17.1% (52,667) (1,388) (47,357) 208,512 26.1% 309,924 29.4% (101,412) Grill & Lounge Wine Catering Wine 6,699 3,319 0.8% 0.4% 16,356 15,936 1.6% 1.5% (9,657) (12,617) Total Wine Sales 10,018 1.3% 32,292 3.1% (22,274) Other Income 58,381 7.3% 49,500 4.7% 8,881 Total Income 797,840 100.0% 1,052,821 100.0% (254,981) Grill & Lounge Food Catering Food Course Outlet Food Total Food Sales Grill & Lounge Beverage Catering Beverage Course Outlet Beverage Total Beverage Sales Cost of Sales Food Cost Beverage Cost Wine Cost 187,913 36.1% 224,776 34.0% (36,863) 52,328 25.1% 71,283 23.0% (18,955) 9,718 (6,332) 3,386 33.8% 30.1% Total Cost of Sales 243,627 Payroll & Related Wages Front of House Wages Employee Taxes Employee Benefits Total Payroll & Related 87.1% (62,150) 187,956 23.6% 168,220 16.0% 161,823 20.3% 165,110 15.7% 48,168 48,103 4.6% 6.0% 7.2% 98,018 9.3% 57,798 19,736 (3,287) 65 (40,220) 95.0% 305,777 455,745 57.1% 479,451 45.5% (23,706) 2,433 7,164 1,254 2,400 8,700 5,700 1,200 3,600 3,900 2,400 3,600 1,300 12,000 8,700 4,800 2,400 3,600 3,600 3,000 1,200 6,000 0.2% 0.8% 0.5% 0.1% 0.3% 0.4% 0.2% 0.3% 0.1% 1.1% 0.8% 0.5% 0.2% 0.3% 0.3% 0.3% 0.1% 0.6% 33 (1,536) (4,446) • (1,200) (360) 11,226 (2,200) (3,600) 1,245 (10,078) 8,281 13,223 5,053 (3,495) 1,074 (450) 157 9,110 78,100 7.4% 22,037 Operating Expenses Bar Snacks China, Glass, Silver Contract Cleaning Equipment Rental-Outings Equipment Leased Equipment Repairs Kitchen Fuel Laundry & Dry Cleaning Licenses & Permits Linen Rental Operating Supplies & Expense Paper Products Supplies Printing & Stationery Refuse Removal Smallwares Spoilage & Waste Telephone Uniforms 2,545 1,922 16,981 18,023 7,453 105 4,674 2,550 1,357 15,110 0.3% 0.9% 0.2% 0.0% 0.4% 1.9% 0.0% 0.0% 0.3% 0.2% 2.1% 2.3% 0.9% 0.0% 0.6% 0.3% 0.2% 1.9% Total Operating Expenses 100,137 12.6% 3,240 15,126 200 13 Coco Beach Golf & Country Club Food and Beverage For the Twelve Months Ending December 31, 2008 YTD 2008 Golf Rounds Net Profit (Loss) % of Sales 18247 (1,669) YTD Budget ok of Sales 32712 -0.2% 189,493 Variance to Budget -14465 18.0% (191,162) 14 Coco Beach Golf & Country Club General and Administrative For the Twelve Months Ending December 31, 2008 YTD 2008 Golf Rounds Payroll & Related Wages Employee Taxes Employee Benefits % of Sales 18,247 YTD Budget of Sales 32,712 Variance to Budget (14,465) $234,235 23,864 38,044 0.0% 0.0% 0.0% $218,087 23,359 44,227 0.0% 0.0% 0.0% ($16,148) ($505) $6,183 Total Payroll & Related 296,143 0.0% 285,673 0.0% (10,470) Operating Expenses Accounting & Audit Asset Management Reimb Bank Charges Computer Expense Corporate Reimbursables Directors & Officers. Expense Dues & Subscriptions Employee Relations Legal Fees Meetings & Seminars Music & Cable Operating Equip Leases Office Supplies Operating Expenses Over/Short Payroll & HR Fee Postage Printing & Stationery Security Telephone & Pagers Uniforms 45,000 1,663 51,424 25,415 4,772 33,656 1,849 6,324 2,861 4,720 4,557 5,449 6,651 7,179 0 31,200 5,161 7,316 52,140 39,055 3,515 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 45,000 21,286 45,820 17,539 8,729 26,286 650 1,463 312 0 3,188 5,058 5,467 4,084 22 31,200 4,443 2,176 35,270 35,004 1,925 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $0 $19,623 ($5,604) ($7,876) $3,957 ($7,370) ($1,199) ($4,861) ($2,549) ($4,720) ($1,369) ($391) ($1,184) ($3,095) $22 $0 ($718) ($5,140) ($16,870) ($4,051) ($1,590) 339,907 0.0% 294,922 0.0% (44,985) (636,050) 0,0% (580,595) 0.0% 55,455 Total Operating Expenses Net Profit (Loss) 15 Coco Beach Golf & Country Club Marketing For the Twelve Months Ending December 31, 2008 YTD 2008 Golf Rounds % of Sales 18,247 YTD Budget of Sales Variance to Budget (14,465) 32,712 Operating Expenses Corporate Support Creative Design Collateral Materials Promotion Public Relations & Advertising Member Events Site Visits Web Site Total Operating Expenses Net Profit (Loss) $7,000 1,545 22,550 38,402 6,228 2,892 720 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $42,000 0 11,109 5,205 91,605 3,555 4,090 1,869 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% ($35,000) $0 ($9,564) $17,345 ($53,203) $2,673 ($1,198) ($1,149) 79,337 0.0% 159,433 0.0% (80,096) (79,337) 0.0% (159,433) 0.0% 80,096 16 Coco Beach Golf & Country Club Building For the Twelve Months Ending December 31, 2008 YTD 2008 Golf Rounds Payroll & Related Wages Employee Taxes Employee Benefits % of Sales YTD Budget of Sales 32712 18247 Variance to Budget -14465 $143,121 23,271 27,021 0.0% 0.0% 0.0% $142,141 14,004 34,684 0.0% 0.0% 0.0% $980 $9,267 ($7,663) 193,413 0.0% 190,829 0.0% 2,584 HVAC Operating Supplies & Expense Pest Control Waste Disposal 23,153 19,074 4,171 7,323 0.0% 0.0% 0.0% 0.0% 11,400 6,000 4,800 6,600 0.0% 0.0% 0.0% 0.0% Cleaning & Janitorial Supplies Cleaning Contract 12,089 9,332 0.0% 0.0% 5,400 4,200 0.0% 0.0% Building Repairs Decorations and interior Plants Electrical and Mechanical Elevators Equipment Rental Fountain & Spa Maintenance Fire Protection Generator Maint. Meeting & Seminars Painting & Decorating Permits Tools & Supplies Uniforms Housekeeping Uniforms 15,031 6,937 5,566 8,887 0 3,308 2,949 1,140 1,357 9,697 388 8,996 4,228 165 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 14,400 3,000 10,500 5,700 1,800 5,400 2,400 4,284 3,000 6,000 1,200 4,800 1,800 1,200 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $11,753 $13,074 ($629) $723 $0 $6,689 $5,132 $0 $631 $3,937 ($4,934) $3,187 ($1,800) ($2,092) $549 ($3,144) ($1,643) $3,697 ($812) $4,196 $2,428 ($1,035) Total Operating Expenses 143,791 0.0% 103,884 0.0% 39,907 (337,204) 0.0% (294,713) 0.0% (42,491) Total Payroll & Related Operating Expenses Net Profit (Loss) 17 Coco Beach Goff & Country Club Utilities For the Twelve Months Ending December 31, 2008 YTD 2007 Golf Rounds % of Sales YTD Budget of Sales 32,712 18,247 Variance to Budget (14,465) Operating Expenses Electricity Gas Water & Sewer Irrigation Fees Diesel Total Operating Expenses Net Profit (Loss) $424,505 22,768 36,548 31,808 0 0.0% 0.0% 0.0% 0.0% 0.0% $346,738 18,643 54,277 24,003 500 0.0% 0.0% 0.0% 0.0% 0.0% 77,767 4,125 (17,729) 7,805 (500) 515,629 0.0% 444,161 0.0% 71,468 (515,629) 0.0% (444,161) 0.0% (71,468) 18 MN EN MIN UM- VIM MI 11111 V--MI- E-- i MI MI Coco Beach Golf & Country Club Golf Operations For the Twelve Months Ending December 31, 2008 Jan Actual Income Member Dues Green Fees Cart Fees Tournament Fee Merchandise Other Income Feb Actual $5,822 68,558 38,891 $20,714 105,397 57,690 32,289 7,162 Total Income Cost of Sales Merchandise COS Total CDs' of Sates . March Actual April Actual May Actual June Actual July Actual August Actual Sept Actual Oct Actual Nov Actual Dec Actual Total Actl/Bdgt Total Budget $14,091 116,114 63,886 $11,936 82,808 61,470 $11,937 72,752 52,491 $11,938 49,018 31,670 $11.678 54,380 49,880 $11,678 25,490 15,880 $12,870 49,173 25,840 $13,194 43,185 24,620 $13,195 60,292 28,780 47,738 10,638 $14,091 57,825 26,890 40,000 104,939 5,760 43,167 10,366 30,002 8,972 23,874 4,754 20,485 4,844 18,420 4,096 8,898 2,186 18,166 4,238 15,990 5,024 22,795 6,584 152,722 242,177 249,505 247,626 193,190 165,808 117,755 138,454 64,132 /10,287 102,013 131,646 29,665 36,9313 59,746 25,101 16,335 13,269 13,090 8,301 5,308 10,732 9,459 15,016 242,956 266,968 29,665 36,936 59,746 25,101 16,335 13,269 13,090 8,301 5,306 10,732 9,459 15,016 242,956 266,968 Payroll & Related Golf Ops Wages Goff Maintenance Wages Employee Taxes Employee Benefits 34,954 64,952 14,799 20,844 29,663 81,946 16,338 21,986 53,916 96,937 20,325 12,538 34,268 67,876 12,157 36,689 36,803 60,396 13,315 22,423 40,276 58,875 12,604 22,295 38,746 58,777 11,634 20,062 34,123 62,834 11,376 21,048 23,155 63,205 9,854 22,307 33,108 71,121 12,104 24,074 35,201 69,486 11,679 13,086 42,970 83,330 14,756 32,029 437,081 839,737 160,941 269,381 421,365 752,729 123,730 291,4132 Total Payroll & Related 135,549 149,935 183,616 150,988 132,937 134,050 129,219 129,381 118,521 140,407 129,452 173,085 100 150 3,316 140 1,071 300 606 300 184 893 219 1,594 795 1,013 500 676 1,000 125 231 1,455 675 300 300 183 300 966 152 1,000 620 1,314 853 641 1,000 125 260 2,246 893 987 3,369 567 1,156 1,352 1,337 1,000 125 247 2,495 1,930 1,378 2,649 1,558 1,917 4,403 972 1,000 125 148 2,899 13,828 19,482 12,000 4,094 24,000 1,300 370 13,800 3,227 16,780 10,720 34,793 $153,146 $225,875 784,992 1,679,908 477,988 897,714 40,000 40,000 386,763 485,396 72,426 103,902 -- ----- ----1,915,315 3,432,793 -------------- ------------- -_-_-_-_-_-___ 1,707,140 1,589,306 1,022 5,851 3,240 946 6,773 4,879 18,896 8,211 16,607 13,292 8,823 12,000 1,500 2,092 17,364 1,500 3,000 2,700 4,200 7,800 6,900 12,000 5,400 12,000 7,800 4,800 12,000 1,500 1,200 12,000 Operating Expenses Golf Operations Dues & Subscriptions Meetings & Seminars Handicap Service Laundry & Dry Cleaning Linen Members Amenities Supplies-Bag Room Supplies- Golf Shop Supplies-Locker Room Supplies- Range Printing & Stationery Rental Clubs Rental Shoes Telephone & Pagers Uniforms 225 971 157 344 21 55 29 547 300 300 254 300 508 300 400 870 1,078 1,845 1,348 877 1,805 754 1,958 589 391 1,390 123 1,040 500 620 1,000 125 112 1,128 1,000 125 97 1.183 1,000 125 108 1,326 219 1,806 742 1,098 353 914 1,000 125 88 1,151 98 1,652 785 1,384 762 51 1,000 125 443 1,100 5,648 7,794 8,347 9,591 10,152 417 730 530 427 842 1,120 1,000 ' 125 121 382 278 1,577 791 1,408 2,433 2,173 1,000 125 138 812 3,430 14,191 9,997 5,720 337 4,600 44,189 350 13,700 3,342 1,671 10,172 2,843 670 59 1,000 125 101 1,187 -------------- ________-_-_-__ ------------ Total Operations Expenses Goff Maintenance Consulting &Testing Dues & Subscriptions Contract Labor Course Supplies Equipment Rentals Fertilizers kr) 8,586 8,470 539 200 2,851 8,200 8,000 18,071 2,442 1,961 16,052 400 1,486 28,305 1,000 (1,700) 9,000 10,500 1,504 14,314 3,707 460 19,081 ------------- ------------- --------- 12,000 1,757 3,323 15,733 119,496 93,900 2,955 1,250 108,391 27,047 18,515 227,119 3,000 300 6.000 12,000 3,600 222,000 - I= Mill MIN NM =III NM NM NM NMI I= MIN Mill I= MI OM ME , UM 1111.1 I I 1 Coco Beach Golf & Country Club Golf Operations For the Twelve Months Ending December 31, 2008 Jan Actual Treatments & Pestiddes Gas & Oil Generator Maint. Meetings & Seminars Mosquito Control Operating Supplies-Maint Bldg Refuse Removal Repairs & MaInt.-Building Repairs & Maint.- Irrigation & Drain Repairs & Maint.-Equip & Machine Repairs & Supplies - Carts Sand, Soil & Stone Tools & Supplies Plant, Seed, Sod Telephone & Pagers Uniforms Total Maintenance Expenses Feb Actual 40,349 13,785 March Actual May Actual April Actual June Actual 11,088 15,752 9,000 21,543 283 1,098 2,701 390 14,240 5,228 113 450 409 2,640 16,088 3,301 171 1.256 146 250 1,541 1,678 22,742 2,664 600 4,645 196 4,394 199 5,844 181 2,880 202 2,211 181 1,581 100,705 112,049 98,205 72,225 79,203 i i 11,752 10 250 670 11 19,597 457 July Actual August Actual 9,905 22,541 34,702 3,880 9,000 16,792 320 250 1,170 250 117 14,234 2,265 717 233 232 1,760 3,850 5,860 Total Acti/Bdgt Total Budget 303 2,025 722 3,799 169 2,126 252 2,066 365 2,597 187 2,456 68,013 . 82,758 63,350 53,508 59,826 64,782 75,630 930,254 809,700 0 1,196 0 8,400 9,977 Total Landscape Expense 1,196 0 0 0 0 0 0 105,331 126,240 108,202 80,811 87,673 73,661 (117,823) (70,934) (102,059) (9,274) (43,755) (55,172) NJ 11,902 9,521 Dec Actual Nov Actual 388 1,433 13,482 393 4,015 669 3,711 13,429 1,196 Net Profit (Loss) Oct Actual 143,813 125,057 0 1,381 0 2,323 2,148 8,045 20,612 167,785 13,912 16,255 7,067 0 3,365 33,214 Landscape Maintenance Contract Operating Supplies Total Operating Expenses Sept Actual 6,216 8,440 455 2,923 7,631 193 1,663 255 YY` 11,739 1,240 233 295 4,591 11,497 220 16,090 4.668 7,016 216 740 242,000 103,200 0 3,000 4,000 4,800 2,400 2,400 12,000 120,000 16,800 21,600 4,800 6,000 1,800 18,000 0 0 0 0 0 1,196 8,400 90,552 71,697 63,099 69,978 78,610 95,092 1,050,946 912,000 (115,106) (70,925) (122,794) (110,830) (115,508) (151,547) (1,085,727) 664,519 MI NM NMI 111111 SIN 111111 111111 r EN 1E11 UN ON NM MI 1111111 Coco Beach Golf & Country Club Food and Beverage For the Twelve Months Ending December 31, 2008 Jan Actual Feb Actual Mardi Actual April Actual May Actual July Actual June Actual August Actual Sept Actual Oct Actual Nov Actual Dec Actual Total AC1103dgt. Total Budget Income Grill & Lounge Food Catering Food Course Outlet Food $3,851 1.564 2,770 $4,828 36,647 2,540 $10,134 141,742 8,883 $4,016 53,167 3,938 $4,505 38,584 3,350 $3,448 64,443 2,444 $3,589 10,329 2,808 $2,684 35,390 1,936 $2,893 11,474 2,085 8,285 44,013 158,759 61,121 46,439 70,335 16,726 40,010 16,452 3,358 1,425 11,008 _______ 15,791 3,765 1.481 16,758 8,387 2,369 18,705 5,150 3,062 16,750 4,060 4,737 11,737 3,928 3,682 10,049 3,133 10 3:5 9686 1 428,022935719 22,004 29,461 24,962 20,534 17,659 17,680 14,577 Grill & Lounge Wine Catering Wine 148 114 24 534 623 160 245 2,148 427 250 2,619 270 321 Total Wine Sales 148 138 534 783 2,393 677 2,889 515 676 344 10,018 32,292 Other Income 1,420 5,494 1,775 3,888 4,662 17,078 2,790 9,108 1,642 4,843 4,180 1,501 58,381 49,500 Total Income 25,644 71,649 190,529 90,754 74,028 105,749 40,085 64,016 29,327 40,072 30,166 35,820 797,839 1,052,821 Cost of Sales Food Cost Beverage Cost Wine Cost 2,916 4,208 38 15,802 5,611 40 56,618 7,916 1131 27,193 7,480 358 20,342 5,941 820 18,002 3,384 268 6,170 3,958 861 12,911 3.784 134 5,462 2.610 161 6,207 1,405 150 224,776 71,283 9,718 7,162 21,453 64,715 35,009 27,103 19,654 10,989 16,829 8,233 7,762 8,120 2,694 126 ____ 10,940 187,912 52,328 3,386 Total Cost of Sales 10,169 3,357 251 ______ 13,777 243,626 305,777 11,086 10,697 9,134 11,116 4,668 4,107 5,568 4,893 __--- ____ 29,392 31,877 27,573 23,908 6,588 3,540 16,126 20,451 4,902 8,445 12,251 12,385 3,864 5,821 23,835 18,289 5,091 6,672 19,215 13,348 3,122 3,736 12,727 10,662 3,121 4,492 12,721 9,937 2,431 3,439 13,341 10,296 3,197 3,461 14,009 8,975 3,246 1,787 14,576 13,323 3,631 5,945 187,957 161,824 48,168 57,799 168,220 165,110 48,103 98,018 61,609 49,924 34,321 53,687 39,421 31,002 28,528 30,295 28,017 37,675 455,748 479,451 600 800 600 100 500 250 324 219 300 383 280 1,044 280 3,365 280 1,199 280 1,685 280 (924) 1,519 1,871 830 825 433 1,516 (1,580) 813 2,123 2,433 7,164 1,254 0 3,240 15,127 200 0 2,545 1,922 16,981 18,022 2,400 8,700 5,700 1,200 3,600 3,900 2,400 3,600 1,300 12,000 8,700 4,B00 Total Food Sales Grill & Lounge Beverage Catering Beverage Course Outlet Beverage Total Beverage Sales Payroll & Related Wages Front or House Wages Employee Taxes Employee Benefits Total Payroll & Related . $3,458 $3,238 10,968 14,039 2,078 2,496 ------------------------22,502 16,514 19,771 $50,091 435,447 35,389 7,4 77575 3,522 1,042 7,648 45,400 30,484 132,560 10,633 12,212 192 408 __________ 321 600 492 23 2,401 $3,341 17,100 2,061 20,796 ,849 489 5,458 2,665 3,635 7,704 $115,424 480,257 65,424 --------------520,927 661,105 ----309,424 14,204 640 36 344 98,138 31,871 179,917 6,699 3,319 16,355 15,938 Operating Expenses Bar Snacks China, Glass, Silver Contract Cleaning Equipment Rental-Outings Equipment Leased Equipment Repairs Kitchen Fuel Laundry & Dry Cleaning Licenses & Permits Linen Rental Operating Supplies & Expense Paper Products Supplies tv 250 800 678 2.095 355 725 1,035 250 537 250 300 678 140 1,819 140 2,776 200 420 398 280 280 280 3,089 674 447 976 727 1,521 182 1,364 1,369 2,545 1,225 887 2,0213 1,381 2,136 4,812 2,016 949 1,685 1,687 - 2,010 5130 NM NB MN EN ION IMO EN NMI MN En ION Inn On--In Coco Beach Golf & Country Club Food and Beverage For the Twelve Months Ending December 31, 2008 Jan Actual Printing & Stationery Refuse Removal . Smallwaros Spoilage & Waste Telephone Uniforms 105 571 250 (185) Total Operating Expenses 4,882 Net Profit (Loss) Feb Actual March Actual April Actual May Actual . June Actual July Actual 1,200 (18,277) 1,586 250 98 1,304 374 500 83 1,260 _____________ 11,377 Y 14,396 9,427 49,809 August Actual 500 1,000 Sept Actual Oct Actual Dec Actual 1,000 1,000 479 2,274 278 250 151 2,315 537 250 81 1,010 203 250 131 927 110 1,293 250 86 932 391 1,769 132 1,300 528 300 150 1,725 6,446 3,162 7,090 8,652 8,456 12,008 10,000 (625) 9,442 25,318 (18,977) 7,729 (19,442) (14,000) 600 Nov Actual Total Acttedgt Total Budget 250 128 1,275 7,453 105 4,673 2,550 1,356 15,110 2,400 3,600 3,600 3,000 1,200 6,000 8,727 4,939 100,135 78,100 (14,340) (17,734) (1,670) 189,493 NM NEI En NMI NIP MEI UM Ell 11111111 SIMI Coco Beach Golf & Country Club General and Administrative For the Twelve Months Ending December 31, 2008 Jan Feb Actual Actual Payroll & Related Wages Employee Taxes Employee Benefits Total Payroll & Related Operating Expenses Accounting & Audit Asset Management Reimb Dank Charges Computer Expense Corporate Reimbursables Directors & Officers Expense Dues & Subscriptions Employee Relations Legal Fees Meetings & Seminars Music & Cable Operating Equip Leases Office Supplies Operating Expenses Payroll & HR Fee Postage Printing & Stationery Security Telephone & Pagers Uniforms Total Operating Expenses Net Profit (Loss) March Actual April Actual May Actual June Actual July Actual August Actual Sept Actual Oct Actual Nov Actual Dec Actual Total Acti7Bdgt Total Budget $19,144 2,587 3,026 $18,087 2,301 3,702 $22,156 2,379 1,447 $18,614 2,065 5,418 $18,518 1,900 3,544 $20,025 1,912 4,407 $22,012 1,958 3,289 $16,747 1,717 2,525 $17,174 1,712 3,053 $21,031 1,988 3,129 $19,358 1,322 2,455 $21,368 2,023 2,050 $234,234 23,864 38,045 $218,563 18,592 35,916 24,757 24,090 25,982 26,097 23,962 26,344 27,259 20,989 21,939 26,148 23,135 25,441 296,143 273,071 3,750 117 4,230 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 0,276 1,033 6,443 4,537 2,273 1,697 5,417 1,303 5,204 1,766 3,341 2,611 2,935 1,631 1.204 2,527 3,750 1,546 4,745 3,310 1,296 3,722 2,757 2,965 2,666 1,927 2,858 1,753 4,552 2,579 1,810 218 4,030 5,971 242 2,910 805 233 2,322 130 354 658 393 2,600 750 195 4,810 3,866 1,048 2,295 314 726 452 795 2,600 1,755 322 11,131 3,744 571 385 307 1,075 669 434 902 873 2,600 586 649 3,739 3,101 127 4,740 1,699 1,088 1,141 166 2,907 150 513 1,396 216 1,270 354 885 760 2,600 106 500 2,463 2,780 35 442 354 9 285 2,600 120 672 2,769 3,116 190 294 481 844 739 2,600 696 697 4,395 3,338 299 ,294 354 563 649 2,600 127 500 3,925 4,112 28 294 189 477 2,600 138 500 3,930 759 411 294 493 716 187 2,600 580 584 3,130 3,202 154 1,350 130 354 860 850 2,600 203 1,487 3,205 3,110 108 195 1,005 208 485 2,600 186 1,211 3,441 4,861 546 45,000 1,683 51,424 25,415 4,773 33,656 1,849 6,325 2,862 4,720 4,558 5,450 6,650 7,179 31,200 5,162 7,317 52,138 39,054 3,517 45,000 16,320 98,980 9,000 19,200 18,000 600 3,200 36,000 1,250 3,000 7,548 5,400 5,400 31,200 2,400 2,000 36,000 31,884 2,400 24,697 33,349 39,505 34,147 25,793 22,906 28,117 28,995 19,891 20,499 29,558 32,455 339,912 374,782 (49,454) (57,439) (65,487) (60,244) (49,755) (49,250) (55,376) (49,984) (41,830) (46,647) (52,693) (57,896) (636,055) (647,853) 232 481 384 686 2,600 5 5,200 3,065 3,499 MI MEI OM MI Mill OM Oil IMO MIR NMI MIN NMI Mil IMO MIMI Mil IIIII Coco Beach Golf & Country Club Marketing For the Twelve Months Ending December 31, 2008 Jan Actual Feb Actual April Actual March Actual May Actual June Actual July Actual August Actual Sept Actual Oct Actual Nov Actual Dec Actual Total Ac(lfBdgt Total Budget Operating Expenses Corporate Support Creative Design Collateral Materials Promotion Public Relations & Advertising Member Events Site Visits Web Site Total Operating Expenses Net Profit (Loss) $3,500 $3,500 502 1,795 313 3,519 1,285 3,773 3,291 350 2,953 198 1,178 904 203 1,845 7,200 1,917 2,892 2,319 1,890 (431) 500 767 5,615 1,700 3,737 579 1.045 3,041 14,676 2,120 $7,000 0 1,545 22,548 38,402 8,229 2,892 720 720 $42,000 3,300 18,000 4,800 84,000 7,100 3,000 2,800 6,830 7,019 1,635 7,064 4,329 1,107 0 13,854 3,778 6,822 6,016 20,882 79,336 165,000 (6,830) (7,019) (1,635) (7,064) (4,329) (1,107) 0 (13,854) (3,778) (6,822) (6,016) (20,882) (79,336) (165,000) NMI MIN MN =I =I Mil I= =II =I Mil INN EMI ISM =II NM MINI I= MINI Coco Beach Golf & Country Club Building For the Twelve Months Ending December 31, 2008 Jan Actual Payroll & Related Wages Employee Taxes Employee Benefits Feb Actual M Actual $11,505 $11,179 $15,292 2,401 2,648 2,257 4,487 3,155 1,126 16,555 17,923 I-1VAC Operating Supplies 8. Expense Pest Control Waste Disposal 270 1,473 305 228 2,679 305 883 Cleaning & Janitorial Supplies Cleaning Contract 1,017 929 Total Payroll & Related April Actual May Actual June Actual July Actual Aug Ac uuasit Sept Actual Oct Actual Nov Actual Total ActliBrigt Actual Ce Total Budget $11,365 $11,373 $11,481 $9,758 $10,336 $12,587 $12,534 1,826 2,234 $14,500 1,626 1,685 $143,121 1,563 1,848 1,423 2,207 1,462 2,266 1,634 1,879 1,716 510 2,273 2,396 23,271 27,022 $142,141 14,004 34,684 19,575 $11,208 1,935 3,736 ---16,879 15,425 14,684 14,892 13,388 14,064 16,100 14,760 19,169 193,414 190,829 2,701 2,733 755 433 1,322 1,762 305 1,030 1,841 1,078 305 433 3,929 683 305 433 7,511 2,090 305 2,080 2,025 2,044 305 450 74 336 320 451 1,344 1,535 320 450 1,909 1,820 320 683 23,154 11,400 843 320 19,076 6,000 4,800 8,800 3,635 637 784 940 792 173 443 568 889 819 475 1,176 702 1,217 375 3,231 225 360 200 978 510 1,603 892 412 698 1,600 1,517 956 236 505 1,000 513 1,011 2,084 506 900 300 910 715 300 323 1,048 249 1,334 856 255 965 (519) 13 115 BO 1,241 926 __ Operating Expenses Building Repairs Decorations and Interior Plants Dust Control Electrical and Mechanical Elevators Equipment Rental Fountain & Spa Maintenance Fire Protection Generator Maint. Meeting & Seminars Painting & Decorating Permits Tools & Supplies Uniforms Housekeeping Uniforms Total Operating Expenses Net Profit (Loss) 6,224 3,711 2,310 3,932 2,050 482 1,701 190 981 357 824 475 300 150 357 598 4,170 7,326 12,088 5,400 9,332 4,200 15,030 6,937 0 5,568 8,888 0 3,308 2,949 1,140 1,357 9,699 388 8,995 4,228 165 14,400 3,000 10,500 5,700 1,800 5,400 2,400 4,284 3,000 6,000 1,200 4,800 1,800 1,200 899 678 713 357 680 242 308 • 2,839 953 23 196 138 62 5,712 11,096 25,970 17,569 10,492 9,247 17,794 8,887 4,901 11,955 7,058 13,117 143,798 103,884 (22,267) (29,019) (45,545) (34,448) (25,917) (23,931) (32,686) (22,275) (18,965) (28,055) (21,818) (32,286) (337,212) (244,713) 88 426 149 1,471 3,057 789 332 1,451 580 979 764 43 566 27 299 384 369 891 BO INN OM INN NMI MN MI I= =I NMI NM 111111 OM NM I= I= MI IMO Coco Beach Golf & Country Club Utilities For the Twelve Months Ending December 31, 2008 Jan Actual Feb Actual March Actual April Actual May Actual June Actual July Actual August Actual Sept Actual Oct Actual Nov Actual Dec Actual Total Actl/Bdgt Total Budget Operating Expenses Electricity . Gas Water & Sewer Irrigation Fees Diesel Total Operating Expenses Net Profit (Loss) $22,986 2,332 4,000 2,000 $30,412 1,365 4,000 2,000 $44213 3,269 4,000 2,000 $39,067 2,524 4,000 2,000 $47,573 1,948 7,773 9,124 $48,253 1,303 4,000 2,000 $42,523 3,044 4,559 2,691 $40,134 2,102 5,688 8,037 $37,191 1,534 5,354 2,143 $26,907 2,048 4,831 1,161 $22,802 990 4,418 492 --31,318 37,777 53,482 47,591 66,416 55,556 52,817 53,961 46,222 34,967 28,702 (31,318) (37,777) (53,482) (47,591) (66,4 i 6) (55,556) (52,817) (53,961) (46,222) (34,967) (28,702) $22,444 310 (16,075) 140 ------ 6,819 (6,819) $424,505 22,767 36,548 31,808 0 $360.000 24,000 54,960 42,000 7,000 ----- -------515,628 487,960 (515,628) (487,960) KPMG LLP American international Plaza Suite 1100 250 Munoz Rivera Avenue San Juan, PR 00918-1819 Independent Auditors' Report The Partners Coco Beach Golf & Country Club, S.E.: We have audited the accompanying balance sheets of Coca Beach Golf & Country Club, S.E. (the Partnership) as of December 31, 2008 and 2007, and the related statements of operations, partners' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of Anierica. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Coco Beach Golf & Country Club, S.E. as of December 31, 2008 and 2007, and the results of its operations and its cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles. la