Salamander Innisbrook Navigates Seasonal Swings, Extends PGA TOUR Deal

TL;DR

**Salamander Innisbrook's lack of detailed financials makes it a black box, but the long-term PGA TOUR deal is a major win for brand visibility and future bookings.**

AI Summary

Salamander Innisbrook, LLC, a Florida-based entity, operates the Innisbrook Resort and Golf Club, a 63-hole destination golf and conference facility near Tampa. For the fiscal year ended December 31, 2024, the company reported no material cybersecurity incidents, indicating effective risk management. The Resort features 1,216 condominium rooms, with approximately 288 owners participating in a rental pool, contributing to 284 hotel rooms. The company owns three of these condominium units. The 2024 Valspar Championship, a PGA TOUR event, was held at Innisbrook's Copperhead course, with an agreement extending through the 2030 tournament, providing significant marketing exposure. The Resort's business is seasonal, with stronger performance in winter and spring due to leisure and group convention travelers from colder regions. The company employs 482 individuals, comprising 344 full-time and 138 part-time staff as of December 31, 2024. The 10-K filing does not provide specific revenue or net income figures, but highlights the diverse revenue streams from hotel, food and beverage, retail, golf, and real estate commissions.

Why It Matters

Salamander Innisbrook's continued operation of the Innisbrook Resort and Golf Club, including its extended PGA TOUR Valspar Championship agreement through 2030, provides a stable revenue stream and significant brand visibility, which is crucial for investors in the competitive resort market. The resort's reliance on a rental pool model, with 288 condominium owners participating, creates a unique operational structure that impacts both property owners and the company's financial flexibility. For employees, the 482 staff members (344 full-time, 138 part-time) represent a substantial local economic impact in Palm Harbor, Florida. Customers benefit from a well-established, full-service destination, but are subject to seasonal pricing and potential hurricane-related disruptions common in the Florida resort industry.

Risk Assessment

Risk Level: medium — The risk level is medium due to the inherent seasonality of the Florida resort industry, which causes business levels to decline in summer months, as explicitly stated in the filing. Additionally, the reliance on a rental pool model with 288 condominium owners introduces complexity and potential variability in available accommodations. While the company has a cybersecurity program, the evolving nature of threats means 'these protections may not always be effective,' posing an ongoing operational risk.

Analyst Insight

Investors should seek more detailed financial data to assess Salamander Innisbrook's profitability and cash flow, as the current 10-K lacks specific revenue and net income figures. Given the strong competitive landscape in the southeastern U.S. resort market, understanding the company's unique price/value strategy and its ability to maintain high occupancy rates, especially during off-peak seasons, is crucial for a comprehensive investment decision.

Financial Highlights

debt To Equity

X.X

revenue

$X

operating Margin

X%

total Assets

$X

total Debt

$X

net Income

$X

eps

$X

gross Margin

X%

cash Position

$X

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• 63 — holes of golf (Feature of Innisbrook Resort and Golf Club)
• 1,216 — condominium rooms (Total rooms at the Resort)
• 288 — condominium owners (Participating in the Rental Pool)
• 284 — hotel rooms (Equivalent number of hotel rooms from Rental Pool participation)
• 2030 — year (Extension of PGA TOUR Valspar Championship agreement)
• 65,000 — square feet (Banquet and catering space at the Resort)
• 482 — employees (Total employees at December 31, 2024)
• 344 — full-time employees (Number of full-time employees at December 31, 2024)
• 138 — part-time employees (Number of part-time employees at December 31, 2024)
• 600 — acres (Land area of the Resort)

Key Players & Entities

• Salamander Innisbrook, LLC (company) — Registrant and operator of Innisbrook Resort and Golf Club
• Innisbrook Resort and Golf Club (company) — Full-service 63-hole destination golf and conference facility
• Valspar Championship (event) — Nationally televised annual PGA TOUR event held at Innisbrook's Copperhead course
• PGA TOUR (company) — Professional golf tour, partner for Valspar Championship
• Copperhead Charities (company) — Partner for Valspar Championship
• Golf Host Securities, Inc. (company) — Wholly owned subsidiary selling condominium units
• Salamander Farms, LLC (company) — Organizer of Salamander Innisbrook, LLC
• Golf Trust of America, Inc. (company) — Seller of the Resort in 2007
• Chief Financial Officer (person) — Oversees cybersecurity program
• Corporate Controller (person) — Oversees cybersecurity program

FAQ

Risk Factors

• Seasonality of Business [medium — operational]: The Resort's business is inherently seasonal, with peak performance during winter and spring due to leisure and group convention travelers from colder regions. This seasonality can lead to fluctuations in revenue and occupancy rates throughout the year.
• Condominium Owner Relations [medium — operational]: The operation of the rental pool involves managing relationships with 288 condominium owners. Disagreements or issues with the Association of Condominium Owners regarding common property maintenance, fees, or rental pool management could impact operations.
• Competition in Hospitality and Golf [medium — market]: As a destination golf and conference facility near Tampa, Florida, the Resort faces competition from other hotels, resorts, and golf courses in the region and nationally. Market demand and competitive pricing can affect occupancy and revenue.
• Reliance on Third-Party Owners [medium — operational]: The Resort's 1,216 condominium rooms are primarily owned by third parties. The company's ability to generate revenue from these rooms is dependent on the participation of 288 owners in the rental pool and their adherence to the rental pool agreement.
• Maintenance of Common Property [low — operational]: The Association of Condominium Owners is responsible for maintaining common property, including land, buildings, and utilities. Inadequate maintenance or funding by the Association could negatively impact the Resort's appeal and operational efficiency.
• PGA TOUR Event Dependence [low — market]: While the Valspar Championship provides significant marketing exposure, the Resort's reliance on this event, even with an agreement through 2030, could be a risk if the event's status or sponsorship changes.
• Employee Management [medium — operational]: The Resort employs 482 individuals (344 full-time, 138 part-time). Managing this workforce, including recruitment, retention, and labor costs, is critical to service delivery and operational success.
• Revenue Recognition Complexity [low — financial]: Revenue recognition for membership initiation fees, which are amortized over 5-10 years, requires significant estimates. Changes in membership life assumptions could impact reported revenue.

Industry Context

Salamander Innisbrook, LLC operates within the highly competitive hospitality and resort industry, specifically focusing on destination golf and conference facilities. The industry is characterized by significant capital investment, seasonal demand fluctuations, and a strong reliance on marketing and event hosting for visibility. Trends include a growing demand for experiential travel, the importance of golf tourism, and the need for robust digital marketing and customer service.

Regulatory Implications

The company must comply with Florida state statutes governing condominium associations and real estate transactions. Additionally, standard business regulations related to employment, health and safety, and consumer protection apply. The lack of reported cybersecurity incidents suggests effective compliance with data protection regulations.

What Investors Should Do

1. Monitor revenue diversification and growth drivers.
2. Assess the impact of condominium owner participation in the rental pool.
3. Evaluate the long-term sustainability of the Valspar Championship partnership.
4. Analyze operational efficiency and cost management, particularly labor.

Key Dates

• 2007-06-14: Salamander Innisbrook, LLC organized — Marks the formation of the entity that would acquire and operate the Innisbrook Resort.
• 2007-07-16: Purchase of Innisbrook Resort — The company acquired the Resort, three condominiums, and equity interests in Golf Host Securities, Inc., establishing its core business.
• 2024-12-31: Fiscal year end — Reporting period for the 10-K, providing financial and operational data as of this date.
• 2030-12-31: Valspar Championship agreement extension — Secures the PGA TOUR event's presence at the Resort through this year, offering continued marketing and economic benefits.

Glossary

Rental Pool

A program where condominium owners agree to make their units available for rent by the resort operator, generating revenue for both the owner and the operator. (Key to the operation of 284 hotel rooms and a significant revenue stream for the company.)

Association of Condominium Owners

An organization formed by condominium owners to manage and maintain common property and administer the condominium association's affairs. (Manages shared resources and responsibilities, impacting the overall condition and appeal of the Resort.)

Common Property

Areas of a condominium development that are not individually owned but are jointly owned and maintained by all condominium owners, such as land, pools, and common areas. (Essential for the resort experience and requires collective management and funding.)

Performance Obligation

A promise in a contract to transfer a distinct good or service to a customer, which is the unit of account for revenue recognition. (Underpins the company's revenue recognition policies, particularly for services and memberships.)

Deferred Revenue

Revenue that has been received by the company but not yet earned, typically recognized over the period the service is provided or the good is delivered. (Applies to non-refundable membership initiation fees, impacting the timing of revenue recognition.)

Ad valorem property taxes

Taxes based on the assessed value of real estate property. (An expense borne by individual condominium owners, separate from rental pool operations.)

Year-Over-Year Comparison

This analysis is based on the provided 10-K filing for the fiscal year ended December 31, 2024. As specific comparative financial data (revenue, net income, margins, debt levels) is not detailed in the provided text, a direct comparison to the previous year's filing cannot be made. However, the filing highlights the continued operation of the Innisbrook Resort, the extension of the Valspar Championship agreement through 2030, and the company's employee count as of December 31, 2024, suggesting ongoing operational activity.

Key Financial Figures

• $841,472 — 24 overall resort revenues increased by $841,472 or 1.8% compared with the prior year. T
• $2,354,147 — ortization) increased year-over-year by $2,354,147 or 9.9% which is attributable to an inc

Filing Documents

• ck0001418372-20241231.htm (10-K) — 2022KB
• ck0001418372-ex31_1.htm (EX-31.1) — 14KB
• ck0001418372-ex31_2.htm (EX-31.2) — 14KB
• ck0001418372-ex32_1.htm (EX-32.1) — 8KB
• ck0001418372-ex32_2.htm (EX-32.2) — 8KB
• img165537584_0.jpg (GRAPHIC) — 14KB
• img165537584_1.jpg (GRAPHIC) — 14KB
• 0001193125-25-282775.txt ( ) — 8455KB
• ck0001418372-20241231.xsd (EX-101.SCH) — 1186KB
• ck0001418372-20241231_htm.xml (XML) — 1451KB

BUSINESS

BUSINESS 5 ITEM 1A.

RISK FACTORS

RISK FACTORS 6 ITEM 1B. UNRESOLVED STAFF COMMENTS 6 ITEM 2.

PROPERTIES

PROPERTIES 7 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 7 ITEM 4. MINE SAFETY DISCLOSURES 7 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 8 ITEM 6.

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA 8 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 12 ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 12 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 12 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 12 ITEM 9B. OTHER INFORMATION 13 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 14 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 14 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 15 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 15 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 16 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 17

SIGNATURES

SIGNATURES 42 3 Table of Contents Cautionary Note Regarding Forward-Looking Statements The following report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that predict or describe future events or trends and that do not relate solely to historical matters. All of our projections in this annual report are forward-looking statements. You can generally identify forward-looking statements as statements containing the words "appears," "believe," "expect," "hope," "may," "will," "anticipate," "intend," "estimate," "project," "assume" or other similar expressions. Certain factors that might cause such a difference include the following: changes in general economic conditions; including changes that may influence group conference and guests' vacation plans; changes in travel patterns; changes in consumer tastes in destinations or accommodations for group conferences and vacations; changes in Rental Pool participation by the current condominium owners; our ability to continue to operate the Innisbrook Resort and Golf Club, or the "Resort" under our management contracts; and the resale of condominiums to owners who elect neither to participate in the Rental Pool nor to become members of the Resort. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to known (and unknown) risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the limited information currently available to us and speak only as of the date on which this report was filed with the Securities Exchange Commission. Our continued internet posting or subsequent distribution of this dated report does not imply continued affirmation of the forward-looking statements included in it. We undertake

BUSINESS

ITEM 1. BUSINESS Background Salamander Innisbrook, LLC (the "Company") was organized on June 14, 2007, by Salamander Farms, LLC under the laws of the state of Florida for the purpose of owning and operating Innisbrook Resort and Golf Club (the "Resort" or "Innisbrook"). The Company, and its wholly owned subsidiaries, Salamander Innisbrook Securities, LLC and Salamander Innisbrook Condominium, LLC, are hereinafter referred to as "we", "us", "our". On July 16, 2007, we purchased the Resort, three condominiums, which became Salamander Innisbrook Condominiums, LLC, and all of the equity interests in Golf Host Securities, Inc. from Golf Trust of America, Inc. and its subsidiaries and affiliates. The Resort is a full service 63-hole destination golf and conference facility located near Tampa, Florida. The Resort features 1,216 condominium rooms, all of which are owned by third parties or affiliates. Approximately 288 condominium owners (representing 284 hotel rooms) participate in a rental pool (the "Rental Pool") we operate. Rental Pool Condominiums Condominium ownership is a realty subdivision in which the individual "lots" are deemed apartment units. Instead of owning a plot of ground, the condominium owners own the space where their condominium units are located. This leaves substantial properties in interest which are not individually owned, such as the underlying land, driveways, parking lots, building foundations, exterior walls and roofs, garden areas and utility lines. These areas are termed common property or common elements. Each condominium owner has an undivided fractional interest in the common property. The condominium owners at the Resort have established an Association of Condominium Owners (the "Association"), to administer and maintain this common property and to conduct the business of the condominium owners. In particular, the Association is responsible for maintaining insurance on the real property, upkeep of the structures, maintenance of

RIS K FACTORS

ITEM 1A. RIS K FACTORS Not required for Smaller Reporting Company.

UNRE SOLVED STAFF COMMENTS

ITEM 1B. UNRE SOLVED STAFF COMMENTS None.

CYBERSECURITY

ITEM 1C. CYBERSECURITY Cybersecurity risk management is an important part of our overall risk management efforts. We maintain a cybersecurity program that is comprised of policies, procedures, controls and plans whose objective is to help us prevent and effectively respond to cybersecurity threats or incidents. Through our cybersecurity risk management process, we monitor cybersecurity vulnerabilities and potential attack vectors to company systems. We, directly and through our third-party service providers , maintain various measures to safeguard against cybersecurity threats such as monitoring systems, security controls, policy enforcement, data encryption, employee training, 6 Table of Contents tools and services from third-party providers and management oversight to assess, identify and mitigate risks from cybersecurity threats. We and our third-party service providers conduct regular testing of these controls and systems including vulnerability scanning, penetration testing and simulating the execution of parts of our disaster recovery plan. We have implemented cybersecurity frameworks, policies and practices which incorporate industry-standards and contractual requirements. We gather information and review security protocols of certain third parties who integrate with our systems, such as our payroll processor, managed solutions provider, and software as a service provider, on an annual basis to identify and manage risk. We regularly seek to improve and mature our cybersecurity processes. We apply lessons learned from our efforts to help prevent attacks and utilize data analytics to detect anomalies and search for cyber threats. Cybersecurity threats of all types, such as attacks from computer hackers, cyber criminals, nation-state actors, social engineering and other malicious internet-based activities, continue to increase generally in business and society. We believe that our current preventative actions and response planning provide adequate me

PROPERTIES

ITEM 2. PROPERTIES The Resort is situated on approximately 600 acres of land located in the northern portion of Pinellas County, Florida, near the Gulf of Mexico. It is approximately 9 miles north of Clearwater and approximately 20 miles west of Tampa. There are 938 condominium units, 36 of which are strictly residential, with the balance eligible for Rental Pool participation. Of the 902 remaining eligible units, approximately 288 participate in the Rental Pool. See additional discussion in Item 1 under the caption "Rental Pool Condominiums." These condominium units are leased by us from the condominium owners and used as hotel accommodations for the Resort. We also own three condominium units, all of which participate in the Rental Pool in the same fashion as all other Rental Pool participants. Approximately 20% of the units have lockout master bedroom units, which allow the rental of the condominium unit as two hotel rooms. As a result of the potential use of lockout master bedroom units, the total number of rooms at the resort is 1,216 and the average number of units participating in the Rental Pool at any one time is equivalent to approximately 284 hotel rooms. The Resort complex includes 63 holes of golf, practice ranges, three clubhouses with retail, golf, and food and beverage outlets, three conference and exhibit buildings, a full-service spa and fitness center, six swimming pools including a themed water attraction, a recreation facility, a tennis facility, and numerous administrative and support structures. These amenities are owned by the Resort and have undergone substantial renovation and improvements since we purchased the Resort in 2007.

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS We were not aware of any legal proceedings as of December 31, 2024 or through the date of this report.

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES None. 7 Table of Contents PA RT II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES We are a single member limited liability company and do not have any stock. Our membership interests are not publicly traded. There are 902 deeded condominium units allowing Rental Pool participation by their owners, of which three are owned by us. The condominium units that are leased to us for Rental Pool participation, are deemed to be securities. These units are hereinafter referred to as Rental Pool Securities. These securities are deemed securities pursuant to the Securities Act of 1933, as amended, but there is no market for such securities other than sales through the normal real estate market. Because the Rental Pool Securities are real estate related, no dividends have been paid or will be paid to their owners. However, the Rental Pool lease agreements provide that the Rental Pool participants are entitled to a contractual distribution paid quarterly in exchange for our right to use their condominium units in the Rental Pool.

SELEC TED FINANCIAL DATA

ITEM 6. SELEC TED FINANCIAL DATA Not required for Smaller Reporting Company. 8 Table of Contents

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Critical Accounting Policies and Estimates The following accounting policies are considered critical to the preparation of our consolidated financial statements. These and other accounting policies require that estimates be made based on assumptions and judgment, which can affect the reporting of revenues, expenses, assets, liabilities and disclosure of contingencies in our consolidated financial statements. These estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. However, actual results may differ from changes in these estimates and assumptions. Revenue Recognition Revenues are derived from a variety of sources including, but not limited to, hotel, food and beverage operations, retail sales, golf course operations and commissions on real estate transactions. With the exception of initiation fees and membership dues, all revenues net of any sales and other taxes collected are recognized as products are delivered or services are performed. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under the new revenue recognition standard. The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our revenue is transactional, and the contracts performance obligation is generally satisfied at the time of the transaction. Revenues from performance obligations satisfied over time include membership dues, annual fees and initiation fees. The membership initiation fees at the Resort are non-refundable and are initially recorded when received as deferred revenue and amortized over the average life of a membership which, based on historical information, is deemed to be ten years for full go

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