Analysis 2020 Annual Report

[saint66au]

That's a huge loss by Sydney, do we know what hurt them so badly compared to others?

Their Membership plummeted

 

[BrutThough]

That's a huge loss by Sydney, do we know what hurt them so badly compared to others?

The herald sun article doesnt say but Geelong's was a combination of a drop in memberships, $2.7mill decrease in sponsorship/advertising/fundraising, no crowds and forced to pause its hospitality and fitness businesses.

 

[StFly]

That's a huge loss by Sydney, do we know what hurt them so badly compared to others?

Think of services which had to close during a pandemic, and think of Sydney as the nucleus of said pandemic locally. To post a 6.1 loss despite 1.5m in loans and having then to exit from a 70m redevelopment and reduce cost by 38% in the process to post that loss, that kind of screams assets in hospitality, tourism, and insurances which bled heavily and continue to bleed.

Similar to then the Cats and Pies who had "minor" instances in hospitality and still encroached 2m since further diversified to servies which can shift out of enclosed offices.

 

[BrutThough]

St Kilda's members underpin 2020 financial result

St Kilda Football Club has announced an operating profit of $1,246,930 for the financial year ending 31 October 2020.

www.saints.com.au

 

[StCicatriz]

Despite the operating profit, the club’s overall debt grew by $1,686,639 due to the decision to defer the first instalment of 2021 membership subscriptions by one month. As such $2.3m of cash normally generated in October has now been received in the 2021 financial year.

So if we hadn’t delayed the 2021 memberships, we would have made a profit this year.
no doubt the media will spin this as a massive loss and a negative story, but without having read the actual report myself, it doesn’t seem like a bad position - especially given the year the sport had.

Depends of other clubs counted that membership revenue or not. Also not going to be pretty reading if that 2.3m deferred doesn't mean a healthy revenue profit next year.

All it will mean is a yoyo where 2021 looks marginally ok and then 2022 is back to taking a small hit again.

We desperately need to get the P&L back in order and start paying down this debt.

 

[StCicatriz]

Whats interesting is despite the huge redevelopment of moorabbin our asset base is still quite small only 16m. Does that mean the council or government owns the facilities?

I knew they owned the land but didn't know they owned the newly built facilities as well.

The debt to asset ratio is a worry. Only a 3 million buffer.

 

[StCicatriz]

Can anyone explain this:
"Through the support of our members and relief provided through
the Federal Government’s JobKeeper payment scheme, the club has
achieved an operating profit before facility funding, depreciation,
amortisation and interest of $1,246,930 (2019: $383,208). The
statutory result however was a net loss of $963,106 (2019: $2,462,880
net profit)."

So we produced an operating profit, but an overall loss?

 

[StCicatriz]

Looks like they explain it on the next page *doh*:
"The St Kilda Football Club in 2020 posted an operating profit before
facility funding revenue, depreciation, amortisation and interest of
$1,246,930 (2019: $323,975 loss) and an overall statutory net loss of
$963,106 (2019: $2,462,880 profit).
The statutory net loss includes Moorabbin Reserve grant-funding of
$591,000 (2019: $4,997,789), depreciation and amortisation expenses
of $2,536,679 (2019: $1,918,719)."

 

[StCicatriz]

Lol imagine being asked to front up $20 if the club goes under:
"St Kilda Saints Football Club Ltd is a Company limited by guarantee.
Under the Company’s Constitution the liability of members is limited to
$20 each (for members who joined prior to 1st November 2006) and $1
each (for members who joined on or after 1st November 2006) in the
event of the Company being wound up. At the end of the financial year
there were 48,775 members (2019: 43,102)."

 

[StCicatriz]

Anyone know what lease liability is... does that explain the growth in short term loans?

 

[StCicatriz]

"The continued guarantee of the Group’s borrowing facilities
with Westpac totalling $6.75m (currently drawn to $6.75m
and is extended until 31st January 2023)."

 

[StCicatriz]

There's a whole explanation on the leases on page 21 am I right in thinking this if the first year of the reclassification so that accounts for the big increase on the loss sheet?

 

[StCicatriz]

"Right-of-use assets include; the lease of property located at 32-60 Linton Street, Moorabbin (RSEA Park), a storage facility on
Levanswell Road Moorabbin, the Gaming Services Agreement with Max Performance Solutions, and the hiring of various office
equipment.
The training and administration facility at Seaford (Linen House Centre) lease was prepaid in 2011, is considered below market
rate and as such is considered to be a peppercorn lease. In accordance with the Groups accounting policy, the lease has been
accounted for at cost."

So is it the seaford lease the reason for the adjustment in accounting classification that explains the whole massive loss thing? If the operating profit was ok?

So is the overall number a big storm in a teacup non event thing and out P&L is actually ok?

 

[Atomboy]

Looks like another $1.2 million loan from AFL HQ in there as well. Take that out and it is a $2 million+ loss....

Can anyone else also explain the membership revenue deferment, and why they did it this year as opposed to not for every other year ?.

 

[StCicatriz]

"Unsecured AFL loan 1 is a non interest bearing loan which has a review date of the 7th November 2020. Post balance date, the
unsecured loan has been extended and now expires on the 7th November 2021.
Unsecured AFL loan 2 will accrue interest from the 1 April 2021. This loan is payable upon the Group determining that it will
cease to be an Assisted Club under the AFL’s COVID-19 Letter of Financial Support ."

Rofl rhe AFL is actually going to hit us up for interest.... my *in God. They really are campaigners.

 

[StCicatriz]

Lost 500k in cash sitting in the bank

 

[StCicatriz]

Another interesting accounting classification:
"Post balance date the loan facilities with the Australian Football League (AFL) was extended. The AFL Loan Agreement
has been extended to the 7th November 2021. Given the agreement was extended post balance date, it is disclosed as
current liabilities in the financial statements. This puts the Group’s net current asset deficiency at $10,206,763. Had the new
agreements been in place at balance date, the net current asset deficiency would have been $7,349,193."

 

[StCicatriz]

My gut feel is we are reporting a number far worse than it actually is and things are actually minorly ok...

We know the challenges we have but its no where near as bad as the headline points out...

Maybe a strategy to it?

 

[Michael Scarn]

There's a whole explanation on the leases on page 21 am I right in thinking this if the first year of the reclassification so that accounts for the big increase on the loss sheet?

Yep it's the first year that all leases are now shown as an asset (Right of use) and a Lease Liability

 

[StCicatriz]

Yep it's the first year that all leases are now shown as an asset (Right of use) and a Lease Liability

Thanks heaps mate!!!

 

[SpannaMan]

Depends of other clubs counted that membership revenue or not. Also not going to be pretty reading if that 2.3m deferred doesn't mean a healthy revenue profit next year.

All it will mean is a yoyo where 2021 looks marginally ok and then 2022 is back to taking a small hit again.

We desperately need to get the P&L back in order and start paying down this debt.

I wonder if some of that revenue was pushed back to keep the club under jobkeeper restrictions. Pretty unlikely given it's super dodgy, but could be a factor.