AVONDALE GOLF CLUB

Financial Update   Member Feedback   Board Priorities

STOCKHOLDER UPDATE · FIRST HALF 26

A Clear Mid-Year View of Club Performance

This first-half update brings together results across golf operations, food and beverage, membership value, and the board’s current focus areas - so members can see where Avondale is tracking well, where pressure remains, and what comes next.

Prepared for Avondale Golf Club stockholders.

Revenue to Budget

+$189K

First-half income finished ahead of plan, supported by increased revenue and cost controls.

Net Operating Income

$293K

At 178% of budget, these results reflect strong revenue growth, disciplined expense management, and the effectiveness of the Club's redesigned budget and operational improvements.

Membership Waitlist

13

With 51 member leads coming in so far in 2026, our waitlist remains strong with 13 prospective members.

ON THE COURSE

A busier tee sheet, without a busier feel

Rounds and Utilization

Total rounds reached 16,547, just 670 rounds (3.9%) below last year. Member play remained strong, increasing to 12,387 rounds, up 238 rounds (2.0%) from the prior year, demonstrating continued engagement from the membership. While non-member rounds declined to 4,160 compared to 5,068 last year, the shift aligns with the Club's ongoing strategy of prioritizing member access during peak demand periods.

Peak weekend utilization (Friday through Sunday) increased slightly to 73%, reflecting consistently strong demand during the Club's busiest tee times.

These utilization levels indicate that the Club continues to maximize available tee times while maintaining a quality member experience.

Tournaments

Tournament participation continues to be exceptionally strong, reflecting the enthusiasm and engagement of our membership throughout the season. Our team successfully executed what many members described as one of the highest-quality Member-Guest tournaments in the Club's history, delivering an elevated experience from start to finish. From course conditions and event organization to food, hospitality, and on-course experiences, every department worked together to create a memorable weekend. The positive feedback received from members and guests reinforces our commitment to continually raising the standard for Club events and delivering experiences that set Avondale apart.

Overall Revenue

Golf operations continue to produce strong financial results, with green fee revenue increasing to $254K up from $217K during the same period last year.

This growth reflects continued demand for the golf course and the Club's ability to generate greater revenue despite a shift toward increased member play.

Cart revenue YTD came in at $56K compared to $61K last year, the slight decrease is primarily attributable to the higher proportion of member rounds, which generate lower cart revenue than non-member play.

Overall, golf operations remain financially healthy, with increased green fee revenue more than offsetting the modest change in cart revenue.

FOOD AND BEVERAGE

Our focus is to be a elevated gastro pub providing excellent service

Food & Beverage operations continue to perform well, generating $629,186 in revenue, exceeding budget by nearly $28,000 and outperforming the prior year. Labor efficiency continues to improve, with labor representing just 39% of sales, outperforming both the 40% budget and prior year performance.

Cost of goods sold is coming in at 40% of sales, slightly better than budget and in line with expectations, while operating expenses represented 58% of sales, improving from 60% budgeted and 69% last year. Overall operating efficiency improved to 97%, down from 108% last year, reflecting continued gains in managing labor and operating costs while supporting increased sales volume.

“A great club restaurant isn't designed to maximize profits - it's designed to maximize the value of membership."

FIRST-HALF PROGRESS

Steady Gains Across the Club

The Club made meaningful progress during the first half of the year through a redesigned operating budget, continued improvements to daily operations, and stronger governance practices that will support better decisions and long-term sustainability.

Mission

Dedicated to offering its members and guests excellent golf facilities within reasonable financial guidelines.

Vision

To position ourselves as a socially active golf club leading the way in innovation and enjoyment.

Core Values

Committed to acting with integrity and transparency

Determined to deliver excellence in our service provision and facilities

Focused on creating and enhancing membership value.

Responsible employer, committed to the development of our valued staff.

Innovative and embrace new ideas in all operational areas.

Welcoming and inclusive to all

Promoters to growing the game of golf

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Budget Held to Plan

Strong financial performance across all departments has positioned the Club ahead of budget through the first half of the year, reflecting disciplined spending, increased revenue, and a continued commitment to delivering an exceptional member experience.

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Service Standards

Targeted upgrades to service routines, staffing coordination, and event execution improved consistency across the clubhouse and supported a smoother member experience.

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Governance System Proposed

The Board proposed governance initiatives designed to improve transparency, clarify decision-making authority, and ensure the Club is governed strategically while empowering management to lead day-to-day operations.

BOARD FOCUS

What the Board Is Working Through

Alongside first-half performance, the board is focused on a number of decisions that shape Avondale’s resilience and member experience well beyond 2026. The work is practical, sequenced, and tied to stewardship rather than short-term operations.

• Long-Term Capital Planning — Continuing to refine the Club's 10-year capital replacement plan to ensure major investments, including irrigation, cart paths, equipment, and facility improvements, are strategically phased while maintaining strong cash reserves and long-term financial sustainability.

• Course & Facility Improvements — Investing in projects that enhance the member experience and protect the Club's infrastructure, including continued cart path expansion, irrigation planning and the ongoing replacement of aging assets.

• Governance Modernization — Proposing updated bylaws, clarifying the roles of the Board, committees, and management, and strengthening governance practices to improve strategic decision-making, accountability, and long-term leadership continuity.

• Membership Experience & Financial Sustainability — Continuing to enhance the overall member experience through investments in golf, dining, facilities, and programming while maintaining disciplined financial management to ensure the Club remains strong and well-positioned for future generations.

CLUB GOVERNANCE PROPOSAL

Modernizing How the Club is Led

The Board is recommending updates to Avondale's governance model that clarify the roles of the Board, committees, and management; modernize bylaws; and create a more consistent system for long-term planning, oversight, and leadership continuity. Day-to-day operations remain the responsibility of management, while the Board stays focused on strategy, risk, and stewardship on behalf of stockholders.

Transition at a Glance

1. Proposal and Member Input: Shared full governance proposal with stockholders at the July 23rd Town Hall meeting

2. Board Review: July 24th-August 11th

3. Attorney Review: August 12th-19th

4. Board Consideration: August 24th Board Meeting at 6 PM

Throughout this process, the Board is committed to preserving the character of Avondale, maintaining continuity in how the Club operates, and providing transparent updates so stockholders can see how governance changes support the Club’s long-term health.

UPCOMING PROJECT UPDATE

Fall Cart Path Improvement Plan Your Capital Money at Work

The Board of Directors has recently approved $415,000 from the Club's Asset Reserve Fund to continue cart path construction this fall. These funds are part of the 2027 Capital Expenditure Plan and represent another significant investment in improving the member golf experience while protecting the long-term condition of the facility.

Construction is scheduled to begin in early fall and will complete the remainder of Phase 1 of the Club's overall cart path plan. The full project is anticipated to span four to six phases, with this fall's work marking another major milestone toward a more elevated member experience.

To minimize disruption, construction will be coordinated around daily play and is expected to take approximately 4–6 weeks, weather permitting. We appreciate everyone's patience during the project and look forward to delivering another lasting improvement to the course.

Below are a few pictures of areas that will see improvement (not all areas shown).

Concept of Hole #4

Yellow: Removed Cart Path

Red: Proposed Cart Path

Concept of Hole #5

Hole #5 will see the most dramatic improvement. The cart path is proposed to go to the right of the tee boxes, eliminating future root issues.

Yellow: Removed Cart Path

Red: Proposed Cart Path

Concept of Hole #8

Yellow: Removed Cart Path

Red: Proposed Cart Path

Black: Existing Asphalt

Proposed Project Phases

Phase 1 – Hole #2 - Hole #8 Green

Phase 2 – Hole #10 - Hole #14 Green and #18 Tee

Phase 3 – Hole #15 Tee to Hole #17 Tee

Phase 4-6 – Remaining areas

Its important to note that these phases are on the radar and could change

MEMBER FEEDBACK

What Members Told Us—And What We Heard

Across the semi-annual survey members consistently pointed to strong course presentation, a welcoming clubhouse atmosphere, and confidence in the club's direction. The clearest concerns centered on pace of play, dining consistency at peak times, and communication around upcoming board priorities.

Course standards and club atmosphere remained the strongest satisfaction signals.

Recurring concerns focused on pace of play, billing system, dining consistency, and clearer updates.

Town hall takeaway: members feel the governance system strengthens the organization while we recieved strong feedback regarding the legend membership category.

STOCKHOLDER UPDATE

Stay Close to the Club’s Direction

Thank you for your continued trust in Avondale Golf Club as we communicate performance, listen carefully to member feedback, and advance priorities through the remainder of 2026.

Prepared for Avondale Golf Club Stockholders

Sincerely,

Austin Westphal, PGA

General Manager

Avondale Golf Club

&

Your Board of Directors

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