NewGuest Bookings, resulting from our increased advertising effortsand discounting, helped raiseoccupancy, especially during week 12 when wehad 15 newfamiliesat camp. Thisyear wehad 52 “newguest” cottagebookingscompared to 35 in 2012, 21 in 2011 and 17 in 2010. Newguest lodgebookingswerealso up significantly, 43 bookings thisyear compared to 25 last year.

Groupsand Conferencesalso bring in significant numbersof newguests to RDC (they are just harder totrack). Groupswere thesole reason for record occupancy in early June. Groupsand Conferenceshad itssecond best revenueyear. A cancelled wedding and a change in theSquam Art Workshop (SAW)program kept us from having our seventh consecutive revenuerecord.

Next Year: Wearenow focusing on mid-June to mid-July weeks for improving occupancy. Improvementduring this timeperiod would help usapproach our record occupancy levelsachieved from 2000 to 2002.Weare just 2,000 guest nightsaway from that mark. Presently, Weeks2, 3 and 5 areall well belowour33 year averageoccupancy. To increase interest during these lower occupancy weeks, thisyear weaddedmore themeweekssimilar to our popular Staff & Shareholder Appreciation Week(s) and TennisWeek.

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RDC Annual Occupancy History

Guest Nights

0

100,000

200,000

300,000

400,000

500,000

1992

1993199

4199

519

96199

7199

819

9920

00200

120

0220

03200

42005

2006

2007

2008

2009

2010

2011

2012

2013

Group Revenue

Group Revenue

FINANCES (Continued)

Wenamed Week 5 "WellnessWeek" offering massage, an abundanceof yoga, Tai Chi, meditation,acupressuresessions, zumba and boot camp. Wealso called Week 3 "NatureWeek". Bob Ridgleyprovided daily birding excursions. Weadded ScienceCenter programs like ”Creaturesof theNight”, a“Full Moon Night Hike,” “Aqua Lab” and a “Wildflower Walk.” SteveSchuch, of Night Heron Music,entertained uswith nature related storiesand music.

Our effortsdid not attract many newguests thisyear, but wewereencouraged by thepositive feedbackreceived from folks that participated in theseprograms. With better and earlier advertising, wearehopefulthat wewill attract moreguests to these themeweeks in 2014.

Wearecontemplating a special themefor theweek leading up to Shareholders’ Weekend, week # 14.Currently, shareholders that stay fiveor morenightsduring thisweek get 40% off their stay. In hopesofmaking thisvery lowoccupancy week moreattractive, wearewilling to consider Dog Week! Twenty-fouryearsafter banning dogsat RDC, folksstill “beg” for a change in policy. Wethink, with strict guidelines,allowing dogs for only the last week of theseason might bea reasonablecompromise. It may also bring insomerevenueand add a nicebenefit for shareholders. Later in thismeeting wewill ask for your thoughtson this idea.

Wearealso tossing around the idea of a themeweek that issimilar to our “Becoming an OutdoorsWoman Conference(BOW), but for families. And, what do you think about an Off theGrid Week? Nointernet, no cell phones, etc.

2013 Projected Gross Income of $4,442,500 isup $158,000, a newrecord. To attract newguests,wearediscounting ratesmore than ever before. Thegood news is that our discounting effortsappear tobeworking. Wearebringing in moreguests. Thebad news is that webring in less revenueper guestnight. Thisnewsreally isn’t that bad, it just requiresmoreexplaining.

For example, the “Room & Board” portion of Gross Income is$3,436,044, up 4.7%. Given our 5.3%increase in occupancy and a 2.5% rate increase, Room and Board revenuewould normally have increasedby about thesame7.8%. A 7.8% increase in Room & Board revenue, without discounting, wouldnormally translate to about $3,537,270. Theapproximatedifferenceresulting from discounting addsupto about $101,000.

Herearea fewexplanations for thisdifference:1) Themajority of our increased occupancy cameduring heavily discounted timeperiods. The

relatively new20% discount for week 12, “alone”, lowered our revenueby $48,000. Theregulardiscounts for weeks1, 2, 3, 13 & 14 combine for reduced revenueof about $32,000.

2) The10% NewGuest Incentivediscount wasused often. Weestimatean impact of about$18,000.

Other factors that kept Gross Incomefrom matching rate increaseand occupancy increasepercentages:

1) The fall Squam Art Workshop (SAW) decided to have their mealscatered. Asa result, wereceived about a third less revenue for their 600 guest nights. Weestimate reduced revenueofabout $20,000.

2) Conferences ratesarediscounted based on thenumber of participants. Largegroups likeSAWand BOW arediscounted at higher rates.

3) Wedding guest nights includerevenue for lodging and breakfast only. Their ratedoesnot includelunch or dinner.

4) Thechange in our “Overage” ratestructure, (raising child overages from 2 to 6 yearsof age to 2to 8), wasappreciated and seemsto havebeen theright thing to do, but it also had a negativeimpact on our income. Thischange in our ratestructureprobably reduced our revenueby$15,000 to $20,000.

5) Shareholder Weekend guest nightsareheavily discounted. Thisweekend reducesnormal guestnight revenueby over $40,000.

Pleasekeep in mind that westill havenearly two monthsbeforeour fiscal year ends. Thesecalculationsarebased on projectionsand estimates that arepulled together whilewearestill very busy accommodatingguest.

2013 Projected Net Income of $462,400 isahead of budget by about $68,000. Asmentionedearlier, theboard agreed that it was timeto catch up on needed improvements. Webudgeted forsignificantly increased expendituresand a lower than normal bottom-line.

2013 Projected Operating Income, of $1,005,103, isdown 4.9% from last year, but ahead ofbudget by $132,000 or 15%. 2013 operating incomewas theseventh highest in RDC’shistory, despiteour decision to catch up on deferred projects. "Operating income" is net incomeexcluding federal, stateandproperty taxes, and "other income". Other incomeis primarily interest incomeand costs associated with financing "TheHut".

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Net Income After Taxes

Net IncomeAfter Taxes

FINANCES (Continued)

2013 Operating Efficiency: "Operating Efficiency” is Operating Incomedivided by Guest Nights.

RDC's 2013 Projected Cash Ending Balance, of $2,175,227, isahead of our earlier projectionby $144,000, down only $170,000 from last year despite record level expensesand an all timehighcapital expenditureof $870,000.

Our 2014 Cash Flow Projection, given a scenario based on a capital budget of $822,000, a $27dividend, a 3% increase in expensesand essentially no change in revenues, our cash position would dropby about $179,000 to $1,996,327.

0200,000400,000600,000800,000

1,000,0001,200,0001,400,000

19871989

19911993

19951997

19992001

20032005

20072009

20112013

Operating Income

Operating Income

0

10

20

30

40

50

60

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Operating Efficiency

Operating Efficiency

Property Tax Status: Therewill bea property tax revaluation in Holderness thisyear. RussThibeault, our appraiser from Applied Economic Research, and John J. will bemeeting with theTownManager and theTown Appraiser thiscoming Tuesday. Wehopeto begin a dialogueregarding therevaluation and it’spotential impact on RDC. In thepast, RDC and theTown of Holdernesshavespenta great deal of money on lawyersand appraisers trying to arriveat a fair value for our uniqueproperty.Both partieshope thismeeting, early in therevaluation process, will help uscometo a satisfactoryagreement without going to court or to theBoard of Tax and Land Appeals.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

20122013

Cash Ending Balance

Cash Ending Balance

050,000

100,000150,000200,000250,000300,000

1986

1987

1988

1989

19901991

19921993

1994

1995

1996

1997

19981999

2000

2001

2002

20032004

20052006

2007

2008

2009

20102011

20122013

Property Tax Payment

! "#$%"&' ) *+! * ' , %- &

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,000

19871988

19891990

19911992

19931994

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20092010

20112012

2013

RDC GROSS INCOME / DIRECT COSTS / ADMIN.EXPENSES

Gross Income Direct Costs AdministrativeExpenses

JRJ9/8/13

Year-endActual Estimated Projection Budget Actual

GROSS INCOME 8/31/13 9/1-10/31 2013 2013 Comments 2012Groups& Conferences 178,621 180,000 358,621 396,000 Second only to2012. Cancelled wedding, etc. kept us from record yr. 394,324Room & Board 3,383,044 53,000 3,436,044 3,298,000 Up 4.7%, most of increasecamein discounted weeks 1, 12 & 13. 3,281,325Adult Overages 272,239 2,000 274,239 270,000 Raised child overages from 2 to6 years of ageto2 to8. Seemed… 287,966Child Overages 70,440 100 70,540 49,000 …liketheright thing todo, but may havecost us over $20,000. 40,137Telephone 0 0 0 0 75Gas& Oil 2,009 100 2,109 2,600 2,642Boats& Canoes 163,772 3,500 167,272 146,000 Up 13%! 147,837Merchandise- Camp Store 64,760 4,500 69,260 67,000 68,785Merchandise- Zodiac 11,605 300 11,905 12,500 12,180BikeRentals - Zodiac 8,515 100 8,615 9,000 9,300EmployeeRoom & Board 14,488 2,900 17,388 14,000 Moreon-siteAmerican staff 13,965Guest Laundry Service 4,191 0 4,191 3,500 3,709Coin-op Laundry 1,816 1,200 3,016 3,400 3,628Fishing License 0 0 0 0 Doneon-linesince2008 0Forfeiture Income 215 0 215 0 210Miscellaneous Income- Revenue 16,097 3,000 19,097 10,000 18,753TOTAL GROSS INCOME 4,191,814 250,700 4,442,514 4,281,000 Up 3.7% from 2012 and 3.8% better than budget. 4,284,835

Budgeted for a 2.5% rateincreaseand a 2% decreasein occupancy.

Year-endDIRECT COSTS Actual Estimated Projection Budget ActualDIETARY: 8/31/13 9/1-10/31 2013 2013 Comments 2012Food ServiceAccount 713,209 1,000 714,209 714,600 Sodexhotells us they will not goover budget! 698,380WagesFood Service 113,640 21,000 134,640 138,400 Raised entry level wagefrom $8.00 to$8.25. 118,725Food Supplies 19,203 3,000 22,203 22,000 28,758TOTAL DIETARY 846,051 25,000 871,051 875,000 845,864

HOUSEKEEPING:Hskp. Salaries& Wages 33,247 3,500 36,747 35,000 Raised entry level wagefrom $8.00 to$8.25. 31,432Hskp. Wages (International) 100,902 32,000 132,902 146,000 148,594Hskp. Supplies& Expenses 88,025 3,000 91,025 80,000 Beds, dock chairs, wicker furniture, cot covers, curtains, hangers,… 56,749Laundry Expenses 6,700 500 7,200 6,000 ...rugs, etc. New washer in coin-op laundry. 4,542TOTAL HOUSEKEEPING 228,874 39,000 267,874 267,000 241,316

MAINTENANCE:MaintenanceSalaries& Wages 163,796 27,000 190,796 190,000 Budgeted for a 3.0% increase. 182,959OutsideCrewSalaries& Wages 73,674 19,000 92,674 90,000 Raised entry level wagefrom $8.00 to$8.25. 94,874Crew/Maint. Wages (International) 11,315 3,000 14,315 30,000 23,325Materials - Maintenance 111,081 8,000 119,081 110,000 See"MaintenanceProjects Accomplished" sheet for details. 89,395OutsideContracts 187,056 12,000 199,056 170,000 See"MaintenanceProjects Accomplished" sheet for details. 178,228TOTAL MAINTENANCE 546,923 69,000 615,923 590,000 4.4% higher than budget, but not far off 2008 expense. 568,782

GENERAL:Heating 34,001 18,000 52,001 50,000 40,737Electricity - General 27,106 19,000 46,106 48,000 43,373VehicleExpense 40,546 6,000 46,546 43,000 44,046Gas& Oil (Cars& Boats) 16,567 4,000 20,567 20,000 20,091General Supplies 5,472 600 6,072 7,500 FCC rules requireus toupgradeour radios in 2012. 8,482Boats& Canoes 16,474 3,000 19,474 24,000 20,109Guest Accommodations 883 0 883 1,900 Extra newspapers, etc.. 2,372EmployeeAccommodations 626 -500 126 0 Staff storeand phonecharges paid from previous fiscal year. -1,957TOTAL GENERAL 141,676 50,100 191,776 194,400 177,252

RECREATION:Recreation Salaries& Wages 34,287 0 34,287 34,000 Raised entry level wagefrom $8.00 to$8.25. 33,110Rec. Wages(International) 30 0 30 4,000 1,100Recreation Supplies& Expenses 30,498 3,000 33,498 36,000 31,738TOTAL RECREATION 64,815 3,000 67,815 74,000 65,947

RDC 2013 YEAR-END PROJECTION(Asof 8/31/13)

Year-endActual Estimated Projection Budget Actual

STORES: 8/31/13 9/1-10/31 2013 2013 Comments 2012Purchases - Camp Store 36,646 4,000 40,646 50,000 49,126Purchases - Zodiac 8,320 200 8,520 9,000 8,477Inventory Change- Camp Store 0 3,000 3,000 0 -2,090Inventory Change- Zodiac 0 0 0 0 971Wages - Camp Store 819 0 819 0 Raised entry level wagefrom $8.00 to$8.25. 0Wages - Camp Store (International) 3,742 1,100 4,842 4,700 4,444Wages - Zodiac 4,112 300 4,412 6,100 5,500Wages - Zodiac (International) 2,024 1,400 3,424 4,300 3,684Supplies& Expenses - Camp Store 1,185 0 1,185 300 644Supplies& Expenses - Zodiac 769 0 769 1,200 20TOTAL STORES 57,617 10,000 67,617 75,600 70,776

Depreciation Expense 195,834 39,166 235,000 235,000 Budgeted 7.7% increaseduetosignificant capital budget. 218,263Rental non-owned houses 0 52,000 52,000 54,000 Howeproperty rentals - owners' share. 50,153

TOTAL DIRECT COSTS 2,081,791 287,266 2,369,057 2,365,000 2,238,355

Year-endActual Estimated Projection Budget Actual

ADMINISTRATIVE EXPENSES 8/31/13 9/1-10/31 2013 2013 Comments 2012AdministrativeSalaries& Wage 276,541 50,000 326,541 315,000 Budgeted for a 3.0% increase. 305,766Bonuses 0 152,500 152,500 152,500 Budgeted for a 3.0% increase. 147,981Admin. Wages(International) 3,483 1,600 5,083 9,500 7,595OfficeMaintenanceContracts 16,458 800 17,258 17,500 16,813OfficeSupplies& Equipment 24,229 2,000 26,229 25,000 24,277OfficePostage 9,203 500 9,703 8,500 Extra shareholder mailings. 7,198Dues& Subscriptions 632 100 732 700 686Travel / Director / Employees 9,937 4,000 13,937 10,000 Additional expenses associated with SEC issue. 6,827Meals - Travel /Special Events 5,696 300 5,996 6,000 5,395Staff Training / Seminars 300 300 600 1,000 80Directors' Fees 1,470 26,000 27,470 27,950 27,950CommitteeExpenses 0 0 0 0 0Advertising 27,939 1,000 28,939 27,000 Experimented with additional advertising, seemed topay off. 25,009Payroll Tax / StateUnemployment 2,881 4,500 7,381 8,300 8,103Payroll Taxes / Fed. Unemployment 1,456 300 1,756 1,800 1,167Payroll Tax / Fica ExpenseEmployer 38,088 20,000 58,088 60,000 58,080Telephone& Telegraph 11,596 4,000 15,596 17,000 16,319Property Tax 208,333 41,667 250,000 250,000 Budgeted for a 3.5% increase, but whoknows? 241,622Professional Services 73,793 13,000 86,793 75,000 Primarily expenses associated with our SEC issue. 51,024Stock Transfer Charge -2,100 -500 -2,600 -3,000 -3,100InsuranceExpense 96,197 24,000 120,197 115,000 111,787Health & Dental Insurance 43,048 8,000 51,048 49,000 Staff decided on a higher deductibleplan. 53,480Pension / Profit Sharing 59,167 11,833 71,000 71,000 66,376Feesor Memberships 7,700 300 8,000 8,500 Now $7,500 for useof Loon Island, up $2,500 from "11". 8,223Contributions 21,950 9,000 30,950 32,300 Includes 5% of Store& Zodiac revenuetoSEPF. 34,665Miscellaneous 3,156 2,000 5,156 8,000 7,587Bad Debt Expense 0 0 0 0 279TOTAL ADMINISTRATIVE EXP. 941,154 377,200 1,318,353 1,293,550 1.9% higher than budget. 1,231,187

Year-endActual Estimated Projection Budget Actual

OTHER INCOME (EXPENSES) 8/31/13 9/1-10/31 2013 2013 Comments 2012Interest Income- TAX EXEMPT 3,210 2,000 5,210 24,000 34,067Gain(loss) on Sale/Assets 0 0 0 0 2012 insuranceclaim on totaled pick-up truck. 4,506N.H. Rooms& Meal Tax Discount 6,099 5,000 11,099 11,000 10,813TOTAL OTHER INCOME (EXP.) 9,309 7,000 16,309 35,000 49,387

INCOME/LOSS BEFORE TAXES 1,178,178 -406,766 771,412 657,450 864,680

PROVISION FOR TAXES 0 309000 309,000 263,000 326,495

NET PROFIT (LOSS) 1,178,178 -715,766 462,412 394,450 17.2% better than budget. 538,185

JRJ9/9/129/7/13

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Gross Income 1,129,932 1,208,001 1,372,459 1,486,601 1,443,925 1,619,670 1,778,705 1,874,510 2,055,470 2,120,003 2,285,307 2,515,497 2,705,76

% increaseor decrease 6.9% 13.6% 8.3% -2.9% 12.2% 9.8% 5.4% 9.7% 3.1% 7.8% 10.1% 7.6%

Direct Costs 606,457 680,624 795,727 768,112 864,754 809,781 877,854 939,186 1,054,866 1,032,864 1,094,571 1,217,086 1,284,14

% increaseor decrease 12.2% 16.9% -3.5% 12.6% -6.4% 8.4% 7.0% 12.3% -2.1% 6.0% 11.2% 5.5%

Administrative Expenses 338,698 368,256 373,406 456,920 591,209 584,316 607,908 676,287 622,779 660,082 731,195 716,654 712,36

% increaseor decrease 8.7% 1.4% 22.4% 29.4% -1.2% 4.0% 11.2% -7.9% 6.0% 10.8% -2.0% -0.6%

Other Income (Expenses) 6,671 1,335 38,247 24,365 26,736 19,312 18,920 8,139 369,307 5,704 6,526 8,551 14,28

Income (Loss) Before Taxes 191,448 160,456 241,573 285,934 14,698 244,885 311,863 267,176 747,132 432,761 466,067 590,308 723,53

% increaseor decrease -16.2% 50.6% 18.4% -94.9% 1566.1% 27.4% -14.3% 179.6% -42.1% 7.7% 26.7% 22.6%

Provision For Taxes 67,000 52,000 93,550 90,878 1,250 83,500 112,200 65,935 303,247 176,071 169,923 223,227 273,98

% increaseor decrease -22.4% 79.9% -2.9% -98.6% 6580.0% 34.4% -41.2% 359.9% -41.9% -3.5% 31.4% 22.7%

Net Income After Taxes 124,448 108,456 148,023 195,056 13,448 161,385 199,663 201,241 443,885 256,690 296,144 367,081 449,54

% increaseor decrease -12.9% 36.5% 31.8% -93.1% 1100.1% 23.7% 0.8% 120.6% -42.2% 15.4% 24.0% 22.5%

Operating Income 225,455 213,357 257,176 327,499 138,200 425,765 502,951 486,621 502,384 585,305 633,194 736,728 893,98

% increaseor decrease -5.4% 20.5% 27.3% -57.8% 208.1% 18.1% -3.2% 3.2% 16.5% 8.2% 16.4% 21.3%

Income(Loss) BeforeTaxes (-) Prop. Taxes (-) Other Income(Exp.)

Capital Expenses 60,000 62,000 175,500 214,000 152,000 72,498 107,137 127,304 153,516 350,151 360,026 273,962 383,13

(TheHut Purchase) 520,000

Rate Increase % 8.0% 7.0% 8.0% 5.0% 5.0% 10.0% 7.0% 5.0% 5.0% 3.0% 5.0% 5.0% 6.0%

Certif icate Price 490 530 560 585 585 600 625 700 800 850 900 1,000 1,10

% increaseor decrease 8.2% 5.7% 4.5% 0.0% 2.6% 4.2% 12.0% 14.3% 6.3% 5.9% 11.1% 10.0%

Dividend 15.00 15.00 16.50 16.50 8.50 16.50 17.00 17.00 17.00 22.50 18.00 18.00 19.0

Guest Nights 22,305 21,641 24,370 23,697 21,574 22,641 23,968 24,207 26,259 25,607 26,306 27,748 28,35

% increaseor decrease -3.0% 12.6% -2.8% -9.0% 4.9% 5.9% 1.0% 8.5% -2.5% 2.7% 5.5% 2.2%

Group Revenue 35,023 35,546 35,407 103,484 46,654 60,763 114,052 69,76

% increaseor decrease 1.5% -0.4% 192.3% -54.9% 30.2% 87.7% -38.8%

Cash Ending Balance 617,092 721,723 939,727 749,673 946,058 839,321 778,883 777,765 811,34

% increaseor decrease 17.0% 30.2% -20.2% 26.2% -11.3% -7.2% -0.1% 4.3%

Operating Efficiency 10 10 11 14 6 19 21 20 19 23 24 27 3

% increaseor decrease -2.5% 7.0% 31.0% -53.6% 193.6% 11.6% -4.2% -4.8% 19.5% 5.3% 10.3% 18.7%

Income(Loss) BeforeTaxes (-) Prop. Taxes (-) Other Income(Exp.) divided by Guest Nights (or Operating Incomedivided by Guest Nights)

Property Tax Payment 40,678 54,236 53,850 65,930 150,238 200,192 210,008 227,584 124,559 158,248 173,653 154,971 184,74

% increaseor decrease 33.3% -0.7% 22.4% 127.9% 33.2% 4.9% 8.4% -45.3% 27.0% 9.7% -10.8% 19.2%

Income(Loss) BeforeTaxes(-) Prop. Tax 232,126 214,692 295,423 351,864 164,936 445,077 521,871 494,760 871,691 591,009 639,720 745,279 908,27

RDC FINANCIAL STA(Asof 8

Projected Budget1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013

60 2,893,676 3,150,708 3,398,026 3,486,379 3,444,909 3,676,027 3,656,449 3,828,372 3,965,247 4,199,286 3,848,027 3,906,268 4,333,819 4,284,835 4,442,514 4,281,000% 6.9% 8.9% 7.8% 2.6% -1.2% 6.7% -0.5% 4.7% 3.6% 5.9% -8.4% 1.5% 10.9% -1.1% 3.7% -0.1%

rev. 12/8/12

49 1,410,228 1,588,758 1,684,656 1,749,241 1,735,893 1,870,409 2,004,451 2,087,555 2,124,874 2,324,375 1,975,220 2,086,352 2,098,866 2,238,355 2,369,057 2,365,000% 9.8% 12.7% 6.0% 3.8% -0.8% 7.7% 7.2% 4.1% 1.8% 9.4% -15.0% 5.6% 0.6% 6.6% 5.8% 5.7%

68 749,676 843,210 859,784 926,322 922,719 979,713 1,071,897 1,084,859 1,099,289 1,203,713 1,218,350 1,162,432 1,163,382 1,231,187 1,318,353 1,293,550% 5.2% 12.5% 2.0% 7.7% -0.4% 6.2% 9.4% 1.2% 1.3% 9.5% 1.2% -4.6% 0.1% 5.8% 7.1% 5.1%

88 23,375 31,192 27,999 21,767 16,869 22,676 33,503 51,379 53,573 50,892 34,160 35,444 24,404 49,387 16,309 35,000

31 757,147 749,932 881,585 832,583 803,167 848,581 613,604 707,337 794,658 722,090 688,617 692,927 1,095,975 864,680 771,412 657,450% 4.6% -1.0% 17.6% -5.6% -3.5% 5.7% -27.7% 15.3% 12.3% -9.1% -4.6% 0.6% 58.2% -21.1% -10.8% -24.0%

85 286,838 290,100 350,200 322,000 318,600 327,941 233,931 265,100 302,300 281,700 254,600 264,705 436,281 326,495 309,000 263,000% 4.7% 1.1% 20.7% -8.1% -1.1% 2.9% -28.7% 13.3% 14.0% -6.8% -9.6% 4.0% 64.8% -25.2% -5.4% -19.4%

46 470,309 459,832 531,385 510,383 484,567 520,640 379,673 442,237 492,358 440,390 434,017 428,222 659,694 538,185 462,412 394,450% 4.6% -2.2% 15.6% -4.0% -5.1% 7.4% -27.1% 16.5% 11.3% -10.6% -1.4% -1.3% 54.1% -18.4% -14.1% -26.7%

rev. 12/8/12

83 920,813 923,546 1,079,433 1,050,966 1,024,113 1,078,379 835,773 904,143 982,520 929,134 911,972 896,960 1,308,021 1,056,915 1,005,103 872,450% 3.0% 0.3% 16.9% -2.6% -2.6% 5.3% -22.5% 8.2% 8.7% -5.4% -1.8% -1.6% 45.8% -19.2% -4.9% -17.5%

32 332,920 461,771 489,216 327,654 446,492 336,059 266,644 657,733 672,589 338,858 385,789 467,118 494,183 826,773 869,754 837,000rev. 4/30/13

% 4.0% 6.0% 6.0% 4.0% 4.0% 4.0% 4.0% 5.0% 5.0% 5.0% 2.5% 2.0% 2.5% 2.0% 2.5% 2.5%rev. 12/8/12

00 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,150 2,200 2,250 2,300 TBA TBA% 9.1% 8.3% 7.7% 7.1% 6.7% 6.3% 5.9% 5.6% 5.3% 5.0% 2.4% 2.3% 2.3% 2.2%

00 20.00 20.00 22.00 23.00 24.00 25.00 25.00 25.00 26.00 26.00 26.00 26.00 27.00 27.00 TBA TBA

55 28,697 29,568 29,693 29,723 27,847 28,602 26,964 26,857 27,293 27,367 24,282 24,068 27,195 26,202 27,602 25,678% 1.2% 3.0% 0.4% 0.1% -6.3% 2.7% -5.7% -0.4% 1.6% 0.3% -11.3% -0.9% 13.0% -3.7% 5.3% -2.0%

60 68,079 99,842 85,258 101,434 118,021 135,635 114,082 70,121 162,446 196,563 215,771 252,148 344,195 394,324 358,621 395,000% -2.4% 46.7% -14.6% 19.0% 16.4% 14.9% -15.9% -38.5% 131.7% 21.0% 9.8% 16.9% 36.5% 14.6% -9.1% 0.2%

47 1,000,527 950,347 1,165,314 1,408,635 1,517,490 1,767,334 1,995,609 1,859,339 1,796,748 2,051,650 2,232,066 2,266,083 2,596,464 2,345,465 2,175,227 2,031,002% 23.3% -5.0% 22.6% 20.9% 7.7% 16.5% 12.9% -6.8% -3.4% 14.2% 8.8% 1.5% 14.6% -9.7% -7.3% -6.6%

32 32 31 36 35 37 38 31 34 36 34 38 37 48 40 36 34

% 1.8% -2.7% 16.4% -2.7% 4.0% 2.5% -17.8% 8.6% 6.9% -5.7% 10.6% -0.8% 29.1% -16.1% -9.7% -15.8%

40 187,041 204,806 225,847 240,150 237,815 252,474 255,672 248,185 241,435 257,936 257,515 239,477 236,450 241,622 250,000 250,000% 1.2% 9.5% 10.3% 6.3% -1.0% 6.2% 1.3% -2.9% -2.7% 6.8% -0.2% -7.0% -1.3% 2.2% 3.5% 3.5%

71 944,188 954,738 1,107,432 1,072,733 1,040,982 1,101,055 869,276 955,522 1,036,093 980,026 946,132 932,404 1,332,425 1,106,302 1,021,412 907,450

ATISTICS 1986 - 20138/31/13)

0.0%

5.0%

10.0%

15.0%

Rate Increase%

Rate Increase%

0.005.00

10.0015.0020.0025.0030.00

RDC Dividend History

Dividend

0

200,000

400,000

600,000

800,000

1,000,000

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

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1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Capital Expenses

Capital Expenses

Budget Actual Year-End2013 Capital Projects 2013 8/31/13 Projection CommentsHouseof Tudor Rebuild 270,000 272,477 272,477 Total project cost was$302,587

Birdsall CottageRebuild 235,000 238,009 238,009 Total project cost was$248,760

Havenwood Upgrade 100,000 102,280 102,280 Total project cost was$105,934

BraeCoveUpgrade 80,000 87,151 87,151 Total project cost was$91,784

Greenwood LodgeUpstairsBathrooms 20,000 24,424 24,424Backlog Bathroom and Kitchen Upgrades 45,000 54,427 54,427 Scopeof work and budget were revised to $45,000 prior to April board meeting

Roofing 15,000 0 20,000 Hope to start on Deep Dining and Roswell this fall

MapleshadeUpgrade 15,000 11,437 11,437 Bathroom upgradeand bedroom ceilings replaced

Foundation Upgrade- Summit 11,000 11,661 11,661Zodiac Upgrade- Phase1 6,000 434 434 Postponed to next year

ShingleBlessBoat Ramp 5,000 0 0Misc. 35,000

Electrical Upgrades 9,348 9,348 Buried electrical lines running behind BraeCove to Havenwood

Septic Upgrades 15,180 12,991 Unbudgeted, but needed upgrades

ShingleBlessBathroom Upgrade 5,114 5,114 Just barely a capital project

By TheWay Design Work 6,782 20,000 Start up money should we be able to begin before next fiscal year

Ewing Design Work 6,324 0Total 837,000 845,049 869,754 JRJ9/8/13

Note: Thescopeof work and budget for theBacklogCottageUpgradewererevised from $15,000 to$45,000 prior toApril board meeting. Subsequently, theoverall capital budgetincreased by $30,000 from $807,000 to $837,000.

Rough Estimates2014 Proposed Capital Projects 2014 CommentsBy TheWay CottageRebuild 270,000Rock Dishroom Upgrade 75,000 replacepiers, new flooring and walls, improve layout, vent dishwasher

Long HouseUpgrade(phase2) 75,000 replacepierson west side, consider converting 2 singles into a doublewith bath

Deep Dining Roof 60,000 replace roof and repair dormers

Zodiac Upgrade 65,000 prep sink, insulatestoreceiling and add a handicapped accessiblebathroom

Deep Library Foundation and Exterior 55,000 re-roof, replacerotted piers& siding; install handicapped accessiblemain door

Hamilton Bathroom and Kitchen Upgrade 40,000Over Yonder Foundation (phase1) 30,000 phase2 to includebath & structural upgrades. Est. $85,000

Laundry Roof 20,000Rock Dining Exhaust Vent Repair 20,000 repair roof exhaust hoods to prevent leakage in main kitchen

CragsmereFoundation Upgrade(phase I) 15,000 phase2 to includeroofing, siding, kitchen, windowupgrades. Est. $115,000

Rock OfficeBathroom Upgrade 15,000 second floor bath upgrade in old section

CampfireLeach Field Upgrade 12,000 associated with By theWay rebuild and Hamilton upgrade

PlayhouseLeach Field Design & Modification 10,000 associated with new Zodiac bathroom

WeTwo Parking Drainage 10,000 improvegradeand add rain garden to divert water from WeTwo and lake

Septic Design 10,000Roswell Roof 10,000Misc. 30,000Total 822,000 JRJ9/8/13

DEPARTMENT HIGHLIGHTS & STAFFING

Asusual, wewere fortunate to havea sincerely friendly and accommodating staff, but our crew thisyearwasextra special. Evidenceof thiswasseen in evaluation results, through frequent guest praiseandobserved daily by us. Onerecent example, after a Labor Day Weekend wedding, parentsof thebride toldBecky that our staff could not havebeen better. They said, “every timean employeecrossed our path,they would ask how thingsweregoing and is thereanything elsewecan do for you.” That isspecial!

Thiscrewwasalwayscheerful on theradio and appeared eager to respond to requests. Weintentionallypassout our evaluation formsat breakfast on Wednesdays, so that wecan review them at our staffmeeting later that morning and respond to any reasonable requests that afternoon. When notified of arequest or problem, asBill Sharkey would say, our staff “jump on it.” Thisseason, wehaveactuallystartled guestswith our responsiveness. On several occasions, usually when weget a request at mealtime,Kathy or I will radio therequest to theappropriatedepartment. When a task getscompleted before theguest returns to their cottage theguest may question whether therewasever an issue. Weknow thisbecause they will sometimescomeback to us to confirm whether someonewasreally thereand able torespond that quickly. That isspecial and fun!

Ann Rampulla, RDC'sFinanceManager and Human ResourcesCoordinator, gets thecredit for hiringthe international segment of our staff. Ann travels to Eastern Europeeach year with an organizationcalled Camp CounselorsUSA (CCUSA) to interviewapplicants. Over theyears, shehasdeveloped aknack for finding exceptional employees. Wethink sheout did herself this time!

Wearevery proud of thisseason'sstaff and hopeyou will take the timetoday to thank them for theiroutstanding service. Herearea fewdetails:

Guest Evaluation Results: Thefollowing results aretheaverageratings and themost frequently repeatedcomments for each department taken from theRDC 2013 Guest Evaluations of RDC Operations. Theseevaluations werecompleted during weeks 2 through 12. On a scaleof 1 to5 (1 = Needs Improvement and 5= Excellent), 447 families whocompleted theevaluations rated thequality of RDC services as follows:

Overall RDC Rating: This Year Last Year 24 Year Avg. First Year2013 2012 1990~ 2013 19904.75 4.76 4.61 4.29

Additional Comments (most frequently repeated):1) Everyone isnice/Friendly (53); 2) Lovenewbeach chairs (39); 3) Wonderful stay/Lovely experience(34); 4) Improve internet (22); 5) Loved themeweek (17)

Office/Reservations: This Year Last Year 24 Year Avg. First Year2013 2012 1990~ 2013 19904.89 4.90 4.72 4.44

Comments (most frequently repeated):1) Helpful (24); 2) Friendly & Very accommodating (21); 3) Prompt and efficient (12)

Under thedirection of Becky Frost, our summer officestaff again had thehighest scoreof anydepartment! Becky also doesan outstanding job as thepoint person for most RDC group and conferencefunctions.

Food Service (Sodexo): This Year Last Year 24 Year Avg. First Year2013 2012 1990~ 2013 19904.58 4.54 4.41 4.14

1) Liked theberries/Loved fruit (77); 2) Food quality improved/Excellent meals (53); 3) Liked OmelettStation (26)

The2013 RDC Food Servicestaff, headed by Brian Monaghan and ably assisted by Donna Hambleton,Ben Shanahan, Lynn Davisand a host of others, did an outstanding job meeting the incredibly diverseneedsof our guestsand staff whilemanaging their budget very well at thesametime. A coupleof ourfavoritehighlightswere themajor upgrade to our Wednesday picnicsand a very talented and cheerfulomelettechef, Ed. Wearevery happy to announce that Ed iseager to return next year! The icing on theFood Servicecakewas that they achieved an all-timehigh evaluation rating thisseason!

Housekeeping: This Year Last Year 24 Year Avg. First Year2013 2012 1990~ 2013 19904.61 4.78 4.55 4.24

1) Very friendly (20); 2) Excellent job (17); 3) Very clean & Responsive(12)

Under AnnieKrom'sdirection, Head HousekeepersAnita Darotsi and Klement Perko did an outstandingjob. New thisyear, were168 folding dock chairsand 96 folding beach chairs, 2,100 chromehangers, 37mattresses, all newcribs (17), 20 fireplacescreensand more.

Our laundry operationscontinue to run smoothly under thesupervision of NievesGreene. Nieveshasbeen with RDC for fifteen seasonsand continues to do a great job managing her department.

Boat Service: This Year Last Year 24 Year Avg. First Year2013 2012 1990~ 2013 19904.86 4.84 4.64 4.63

1) Liked that crewbailed out boats (11); 2) Helpful (10); 3) Crewflipped boatsbeforestorm (8)

Headed by Eric Morseand assisted by Ondrej Sikora and David Badura, theHarbormaster Crewhadtheir second highest rating. Incomefrom boat rentals increased by 13%. To continue to turn over ourrental fleet, wewill onceagain sell a fewof our old boats today. Talk to Eric about thedetails.

FYI, during theoff-season, Eric ispart of our year-round maintenance team, and also playsa vital role intheupkeep of our websiteand wireless internet.

DEPARTMENT HIGHLIGHTS & STAFFING, Continued

Store/Zodiac: This Year Last Year 24 Year Avg. First Year2013 2012 1990~ 2013 19904.74 4.74 4.65 4.11

1) Loved pool table (8); 2) Excellent (7); 3)Friendly/ Helpful & Loved ping pong (6)

Under Kathy Wheeler and Becky Frost'sdirection, our veteran storekeeper Zuzana Korcova, and Zodiacstaff Jennifer Greene, Tanya Struc, Liesl Miller had a solid season and reduced our aging inventorysignificantly with their weekly storesales.Squam Environmental Preservation Fund (SEPF): FYI, wecontribute5% of our Storeand Zodiacrevenueto theSEPF!RDC On-lineStore, check it out at http://www.rdcsquam.com/store/gifts.html. New itemswill beaddedin thenext month or so.Camp StoreSale today from 8:00 a.m. to 12:30 p.m. and again from 1:30 p.m. to 4:00 p.m. Pleasehelp us improveour sales. All regular priced items in thestorewill bemarked 30% off! Outside, all saleitemswill be50% off theoriginal price.

Recreation: This Year Last Year 24 Year Avg. First Year2013 2012 1990~ 2013 19904.71 4.72 4.62 4.35

1) Liked naturewalks& Fun boat cruise (18); 2) WeeCampers isgreat (15); 3) Likekayak trips (14)

Recreation CommitteeHead, Sarah Caswell and her mostly veteran staff received great marksdespiteapoor weather season. On seven occasionswith a forecast of 0% chanceof precipitation they had to cancelor postponean activity because it was raining steadily. In addition to our long list of traditional programsthisseason, weadded two new themeweeks. John Fuller again offered a widevariety of activitiesat theSugar Houseand weadded a boat tour for newguestson most Sunday afternoons. JaneKellogg and RonReynolds returned for their seventeenth season to lead our All Day Hikesand our popular Half DayKayak Tours. Wewerealso very happy to haveJill Miller back for her thirteenth season asour WeeCampersDirector. Lauren Hansen did an outstanding job asour part-timeEmployeeRecreationDirector.

On a very sad note, a guest passed away whileon an RDC All Day hike thispast July 17th. ChristopherTodd was just 30 yearsold, part of theMayfield, Ackerman, Bird family reunion. Themedical examinersaid heat strokewas thecauseof death. Many of Chris’ relativeswerewith him on thishikeup WhitefaceMountain. Membersof his family, search and rescuepersonnel, NH Fish and Gamepersonnel, a localdoctor, themedical examiner, Kathy, myself and othershaveall been very positiveand appreciativeregarding theactions taken by trip leadersRon Reynoldsand Rachel Rothender. I t wasa very emotionaltimefor anyoneassociated with this tragedy. Ron, Kathy, Rachel, Janeand I haveseriously critiqued thisvery unfortunateevent. Even though sometragediescannot beprevented, wehave taken additional stepsto lessen the likelihood of something like thishappening again at RDC.

I f anyone is interested in moredetails, I would behappy to sharemy report to theRDC Board regardingthisunfortunateevent.

Outside Crew/Maintenance: This Year Last Year 24 Year Avg. First Year2013 2012 1990~ 2013 19904.87 4.79 4.74 4.43

1) Great service/Excellent (16); 2) Thanks for fixing our dock fast (10); 3) Pathsaremuch improved (9)

When asked, "what do you likemost about your cottage?" 1) Beautiful view(44); 2) Porch (39); 3)Location (38)

Our year-round MaintenanceStaff consisting of Bill Sharkey, Jon Spence, Doug Adamsand Eric Morse,part-timeMaintenanceStaff Norm Spencer, and our seasonal OutsideCrew led by Burr Tweedy andMichal Kolarik performed exceptionally well thisseason. Onceagain, their biggest challengeof theseasonwaskeeping our seasonal docks in placeand safe. For most of thisseason, themajority of our dockswereon cinder blocksbecause the level of the lakeremained very high until mid-August. Despite less thanfavorableweather, thisdepartment received their all-timehighest evaluation score!

Wealso had a record year for capital and maintenanceprojectscompleted! Takea look at theenclosed“MaintenanceProjectsAccomplished” list for someof thedetails.

Employee Evaluation Results: Typically, wehand out theseevaluation forms to staff and urge them tocomplete the formsat their convenience. Over theyears, that techniquehasbarely produced double-digitreturns. Thisyear, we took about 10 minutesat our staff meeting to have folkscomplete the forms. Thisnewapproach tripled our return. Employeescompleted 45 forms. Unfortunately, this forced approachseemed to also significantly lower our ratings.

Thefollowing aretheaverageratings from employeeevaluations of camp operations completed in August of thisseason. On a scaleof 1 to5 (1 = Needs Improvement and 5 = Excellent), 45 RDC seasonal staff whocompleted theevaluation rated various aspects of RDC operations as follows:

This Year Last Year 24 Year Average First Year2013 2012 1990~ 2012 1990

Effectivenessof Staff Training: 4.14 4.33 4.25 3.65

Effectivenessof facilitiesand equipment 4.29 4.29 4.19 3.69to perform duties:

Helpfulnessand support from your 4.22 4.93 4.54 4.39immediatesupervisor when needed:

Helpfulnessand support from 4.67 5.00 4.65 4.42AdministrativeStaff when needed:

Your effectivenessasan RDC employee: 4.71 4.64 4.53

DEPARTMENT HIGHLIGHTS & STAFFING, Continued

This Year Last Year 24 Year Average First Year2013 2012 1990~ 2012 1990

Quality of staff living accommodations: 3.89 4.14 4.07 3.76

Howwould you rateyour overall 4.64 4.71 4.65 4.82experiencewith RDC:

Overall Rating: 4.37 4.62 4.41 4.12

OTHER EVENTS, PROJECTS, ENHANCEMENTS, ETC.

Improved Wireless Coverage: Our bandwidth wasrecently increased by 2.5 times, weupgraded allthe radio receivers in Deephaven and weadded service to thePlayhouse. Unfortunately, that still hasnotbeen enough to satisfy our needs, especially on rainy days! Eric Morseand John J. met with Gunnar Berg,our current internet provider, and brainstormed on howto improveour situation. With somenewalternativesavailable, Gunnar isoptimistic that wewill beable to significantly improveour service. Wewill explore theseand alternativesand their costs in thenext fewmonthsand report our findingsat ourDecember Board meeting.

Start Reservation Process Sooner? Every year we losepotential guestsbecause they do not want towait until theend of our reservation process to find out if they can beaccommodated. Our cumbersome,seniority based, reservation process takesabout a month to complete. By the timeweget to theend oftheprocess, someof thepotential newguestshavemadeother plans. To improve thissituation, wearecontemplating moving thestart of our reservation process from March 1st to February 15th. Thoughts?

National Register of H istoric Places: Rockywold-Deephaven Camps, asof June2013, isnowlisted on theNational Register of Historic Places. Betsy Whitmorewill givea brief report on this topicshortly.

Advertising: Thisyear wehavehad somesuccesswith our advertising efforts. Asa result, we think itwould bewise to increaseour advertising budget in 2014. The list of what wearedoing in thisdepartment hasgrown to a point where it requiresa separatehandout. See theenclosed “AdvertisingUpdate” for details.

Tuck School of Business: Thispast spring, theTuck School of Businessat Dartmouth conducted astudy of our operationsand their relevance to today’svacationer. Theresultsare in! JulieHowe, ofRDC’sStrategic Planning Committee, will givea brief report later in thismeeting.

2013 Photo Contest: Just a reminder that thedeadline for our Photo Contest isOctober 10, 2013.

Cigna Corporate Challenge: This5K road race in Manchester, NH continues to bean annualtradition for our staff. Wedidn't win theGrand CorporateCup thisyear, but the45 employees thatparticipated seemed to havea good time. Both maleand female teamsplaced well overall.

The Bean Pot Tournament isaliveand well again after a oneyear sabbatical. I t wasa closegameuntil thevery end. Team RDC wasdown by 4 runsgoing into thebottom of the7th, but pulled off thedramatic comefrom behind win!

We Rang Our Bells at 3 p.m. on August 28th for 3 minutes. RDC rang it’sdining room bells tohonor the50th anniversary of TheMarch on Washington and theMartin Luther King, Jr. “I HaveaDream” speech. To honor thisoccasion and RDC’spast involvement with civil rights, Rev. Sidney Lovett,Jr. spoke to our guestsand staff on that morning. Having been an employeeat RDC in the1940’sandhaving participated in TheMarch on Washington, hewas theperfect speaker for thisoccasion.

Les Bradley, our squaredancecaller since1991, most likely called his last danceat RDC a fewweeksago. Leshassomehealth issuesand tellsus theoddsof him returning in 2014 areslim. He isa specialman and hasbeen a special fixture/tradition/icon at RDC. Wehavehad thepleasureof honoring Lesona coupleof occasions thissummer and wewould like to do it onemore time. Lesand hiswife, Sharon,haveaccepted our invitation to tonight’sshareholder social hour and dinner. Wehopeyou will all takethe timeto thank him for thespecial serviceheprovided usall theseyears.

Art Fair: Onceagain, after dinner tonight from 7:30 p.m. to 10 p.m, Squam Art Workshopswill hostan art fair. The fair is located in theDeephaven Dining Room and isopen to thepublic. For thepastseveral years it hasbeen a great way to cap off theevening. Wearesure thesamewill be true tonight.

As wementioned earlier, Kathy and I feel 2013 was our most productiveyear at Rockywold-Deephaven Camps. That accomplishment was only possiblebecauseof theoutstanding team wehavein place. Wearevery grateful toall of our hardworking staff, our dedicated and engaged board ofdirectors and toour supportiveshareholders for being a part of this special team!

Sincerely,

John Jurczynski & Kathy WheelerRDC Co-Managers

Cover photo by Ben Ferenchak. This photowas featured on thewebsitetwistedsifter.com. Thearticlewas titled “America theBeautiful: 50 Statesin 50 Photos.” Insidecover photo by John Schoonover, a first timeDeephaven guest. Back cover photo by Kaitlyn Boucha. Theart work in thisphotowas created by PhoebeWahl. Both Kaitlyn and Phoebeareassociated with theSquam Art Workshops.

Rockywold-Deephaven Camps, Inc.P.O. Box BHolderness, NH 03245

PRSRT STDUS Postage

PAIDHolderness NHPermit No. 11