In the Black... and White

[DraftBalta]

http://www.collingwoodfc.com.au/news/2017-11-24/magpies-confirm-2017-financial-result-

The Collingwood Football Club today announced an EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) result of $1,656,235 (2016 – 1,694,221) for the financial year ending October 31, 2017.

The result was a reflection of unwavering membership support, with our membership tally increasing to 75,985 (2016 – 74,819).

 

[Bad Horse]

You missed a few interesting bits.


Total club revenue of $77,736,469 (2016 - $71,475,457)
- EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of $1,656,235 (2016 - $1,694,221)
- Net Loss of $2,732,624 (2016 – Loss of 2,622,623)
- Membership figure of 75,985 (2016 - 74,819 members)
- Collingwood’s net asset position is $32,578,418
- Home and Away AFL attendance for the year broke the one million mark (1,003,991)



Depreciation on the Holden Centre and our pokies assets will make up a fair bit of the loss but lets be clear our net asset position has gone backwards by 2.7 million.

Also interesting our revenue went up almost 10% but EBITDA went backwards.

The positive spin is made up of a fair quantity of actual spin. It is better than I thought but its not good and the club wouldnt want too many years like this in the near future

 

[BringouttheGimp]

You missed a few interesting bits.


Total club revenue of $77,736,469 (2016 - $71,475,457)
- EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of $1,656,235 (2016 - $1,694,221)
- Net Loss of $2,732,624 (2016 – Loss of 2,622,623)
- Membership figure of 75,985 (2016 - 74,819 members)
- Collingwood’s net asset position is $32,578,418
- Home and Away AFL attendance for the year broke the one million mark (1,003,991)



Depreciation on the Holden Centre and our pokies assets will make up a fair bit of the loss but lets be clear our net asset position has gone backwards by 2.7 million.

Also interesting our revenue went up almost 10% but EBITDA went backwards.

The positive spin is made up of a fair quantity of actual spin. It is better than I thought but its not good and the club wouldnt want too many years like this in the near future

Depreciation of a building? Wtf

 

[Anzacday]

Time to shine Scodog10...

 

[jackcass]

You missed a few interesting bits.


Total club revenue of $77,736,469 (2016 - $71,475,457)
- EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of $1,656,235 (2016 - $1,694,221)
- Net Loss of $2,732,624 (2016 – Loss of 2,622,623)
- Membership figure of 75,985 (2016 - 74,819 members)
- Collingwood’s net asset position is $32,578,418
- Home and Away AFL attendance for the year broke the one million mark (1,003,991)



Depreciation on the Holden Centre and our pokies assets will make up a fair bit of the loss but lets be clear our net asset position has gone backwards by 2.7 million.

Also interesting our revenue went up almost 10% but EBITDA went backwards.

The positive spin is made up of a fair quantity of actual spin. It is better than I thought but its not good and the club wouldnt want too many years like this in the near future

Be interested to see the full financials to:
1. get a sense of the start-up cost of the AFLW and the SN teams. Also be nice to get a sense of how they anticipate the income/expenditure against those activities to evolve moving forward; and
2. see what are the big $$$ amounts being expended that impact EBITDA causing the nearly $4.5m shift. Are we still paying off the glasshouse?

I'm also surprised to see that membership has actually risen at a time when you'd reasonably expect a decline so be interesting to see how that total figure has been compiled. Does it include AFLW and SN members?

 

[HFF]

Too busy expanding "the club" in non core business all whilst our core business (football) actually struggles.

And yet, we are still waiting to see serious change.

Gary Pert took the fall for this yet is not completely responsible.

 

[Obese Arachnid]

You missed a few interesting bits.


Total club revenue of $77,736,469 (2016 - $71,475,457)
- EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of $1,656,235 (2016 - $1,694,221)
- Net Loss of $2,732,624 (2016 – Loss of 2,622,623)
- Membership figure of 75,985 (2016 - 74,819 members)
- Collingwood’s net asset position is $32,578,418
- Home and Away AFL attendance for the year broke the one million mark (1,003,991)



Depreciation on the Holden Centre and our pokies assets will make up a fair bit of the loss but lets be clear our net asset position has gone backwards by 2.7 million.

Also interesting our revenue went up almost 10% but EBITDA went backwards.

The positive spin is made up of a fair quantity of actual spin. It is better than I thought but its not good and the club wouldnt want too many years like this in the near future

I don't know nuffin bout nuffin but...... When they release it on the day of the draft, you know it's not good.

 

[Scodog10]

Time to shine Scodog10...

Without access to the actual report I’d say it’s a completely contrived result.

I mean does anyone actually believe that our EBITDA was within $30k of last year despite an 8.75% increase in total club revenue? It also means a hit on our margins. Essendon turned over $12 million less, but managed to run at an almost $3.5 million larger surplus. By comparison our finance department looks dreadful.

It also indicates to me that at best the netball franchise broke even, but almost certainly ran at a loss given the revenue injection and overall lack of growth. Not to mention the lack of analysis on it. If it was even close to a profit making venture we’d have shouted it from the roof top...

Murphy took over from Pert mid way through Q1 of the 2018 FY so it’ll be interesting to see whether any of the accounting treatments change in the next annual report and whether our yearly $1-2 million operating profit moves. I’d also love to know what makes up that asset base...

 

[Bard]

Too busy expanding "the club" in non core business all whilst our core business (football) actually struggles.

And yet, we are still waiting to see serious change.

Gary Pert took the fall for this yet is not completely responsible.

Surely you'd agree however that as a club we've been better managed since his departure? The lack of presence we've had in the media since his departure has been a blessing.

 

[Bad Horse]

Depreciation of a building? Wtf

We depreciate "leasehold improvements" at a rate of 5% a year. That would include the recent improvements to the Holden Centre. That accounts for a bit under 2 million a year.

 

[Bad Horse]

Be interested to see the full financials to:
1. get a sense of the start-up cost of the AFLW and the SN teams. Also be nice to get a sense of how they anticipate the income/expenditure against those activities to evolve moving forward; and
2. see what are the big $$$ amounts being expended that impact EBITDA causing the nearly $4.5m shift. Are we still paying off the glasshouse?

I'm also surprised to see that membership has actually risen at a time when you'd reasonably expect a decline so be interesting to see how that total figure has been compiled. Does it include AFLW and SN members?

If you look at what was there last year, it is likely to split about as follows

Depreciation about 3.6 million. Mostly the holden centre and plant and equipment.

Amortisation about 800k. Mostly poker machine licenses and entitlements.

interest about 1-200k. We drew down about 2 million from available borrowing last year, might have done some more this year, so going to have some financing costs in there too.

Also on the memberships will be interesting what the membership revenue number is too. Do we have more but at lower average value? That would be my bet.

 

[Baltimore Jack]

Standard accounting practices don't change because of the name "Collingwood"

 

[Bad Horse]

Standard accounting practices don't change because of the name "Collingwood"

And an operating loss is an operating loss, regardless if your name is Collingwood, and regardless if you spin it by quoting EBITDA.

 

[TKiL]

Depreciation of a building? Wtf

Buildings also wear out and have to be renovated / replaced in the long term...
or was that an allowance for the damage caused by the Richmond bogans after they won the GF?

 

[magpies42]

Accounting is a dark art, doesn’t mean anything....can be interpreted and adjusted in a number of ways

 

[doppleganger]

I mean does anyone actually believe that our EBITDA was within $30k of last year despite an 8.75% increase in total club revenue? It also means a hit on our margins.

From 15 to 16 overall revenue increased by 5m, and the gaming / function division accounted for 4.5m of that...the membership, AFL distribution and commercial activities remained relatively stable from a revenue perspective.

gaming and function expenses also had the largest increase, of 3.5m from 15 to 16.

So would assume that again the majority of the 'revenue' increase would be a result of increase from gaming and function area. Which would also have a very large expense increase. And the membership revenue perhaps went backwards slightly.

It also indicates to me that at best the netball franchise broke even, but almost certainly ran at a loss given the revenue injection and overall lack of growth. Not to mention the lack of analysis on it. If it was even close to a profit making venture we’d have shouted it from the roof top...

Also the football expense would no doubt increase with the women's pursuits, which would have been generated minimal revenue in 2017.....but they are strategic long term plays.

So the large growth in revenue with barely a nudge in EBIT would have been expected.

Murphy took over from Pert mid way through Q1 of the 2018 FY so it’ll be interesting to see whether any of the accounting treatments change in the next annual report and whether our yearly $1-2 million operating profit moves. I’d also love to know what makes up that asset base...

Look at the previous years report, available on the website, it details accounting treatments including depn and amortisation schedule.

 

[jmac70]

I haven’t got a clue what any of this means. In SIMPLE terms, should I be worried?

 

[CFC2010]

I haven’t got a clue what any of this means. In SIMPLE terms, should I be worried?

 

[JB1975]

I haven’t got a clue what any of this means. In SIMPLE terms, should I be worried?

If by 'worried' you mean should you have more beer, then sure, worry away.

 

[jmac70]

If by 'worried' you mean should you have more beer, then sure, worry away.

Way ahead of you man.

 

[JB1975]

Way ahead of you man.

The only set of numbers that need be worried about: How many beers left in the fridge?

 

[Scodog10]

From 15 to 16 overall revenue increased by 5m, and the gaming / function division accounted for 4.5m of that...the membership, AFL distribution and commercial activities remained relatively stable from a revenue perspective.

gaming and function expenses also had the largest increase, of 3.5m from 15 to 16.

So would assume that again the majority of the 'revenue' increase would be a result of increase from gaming and function area. Which would also have a very large expense increase. And the membership revenue perhaps went backwards slightly.



Also the football expense would no doubt increase with the women's pursuits, which would have been generated minimal revenue in 2017.....but they are strategic long term plays.

So the large growth in revenue with barely a nudge in EBIT would have been expected.


Look at the previous years report, available on the website, it details accounting treatments including depn and amortisation schedule.

Trust me I’ve read last years report! Some of the internal journaling that must have gone on with it to contrive that result as well would have been a pain to process...

 

[Baltimore Jack]

And an operating loss is an operating loss, regardless if your name is Collingwood, and regardless if you spin it by quoting EBITDA.

Nah, it was a profit of $1.66 mill, no matter how you want it to look at it
Its the law

 

[Baltimore Jack]

I haven’t got a clue what any of this means. In SIMPLE terms, should I be worried?

All cash indicators positive
Some write downs on assets as all large organisations do.

The weird thing is, if our assets Appreciate, the same people saying we are running at a loss will refuse to acknowledge the opposite

 

[Scodog10]

All cash indicators positive
Some right downs on assets as all large organisations do.

The weird thing is, if our assets Appreciate, the same people saying we are running at a loss will refuse to acknowledge the opposite

Are you able to explain how capital expenses we are depreciating on assets we don’t own are meant to appreciate?