| SUBMITTED AGENDA ITEMS:
Review of Oct. Financial statements
· November's sales results were extremely encouraging. They were
the best growth results that we have had all year.
o The bridge re-opening was a great success.
o This result was largely due to the South store rebounding from the poor
sales in October.
· October Income Statement.
o October had a negative growth rate at South.
§ YTD we are 671,000 dollars behind the budget in sales.
o Another inventory was done for select departments in response to the
skewed margins from the 3rd Quarter.
§ The COGS is back in line in response to the October 31st inventory.
o Discount write-offs are elevating our COGS. Measures are being taken
to curb this.
o Payroll expense has increased due to the June increases.
§ Remember that this is a percentage of sales. YTD payroll is still
within budget as a percentage and as a dollar figure.
o Other operating expense is marginally over budget.
§ The reason is that kitchen products are now being donated to the
gleaners. This was not budgeted for.
o Despite the reduced sales, we still ended up with net income from retail
operations.
o Non-operating income and expense are well within budget.
o YTD we are still within 36,000 of the budget.
· October Balance Sheet.
o We did really well with owner share sales. 63 is high for any month.
Review the full draft of the '07 Budget
· Reviewed the current draft of the 2007 budget. Went through section
by section giving Dana feedback on items to be corrected and clarified.
· Toni will submit the agenda item to Exec to present the final
2007 draft budget at the December board meeting. Marty Schulz will also
be present at the December board meeting.
ORC Growth Flyer Questions
· ORC has asked the Finance committee to address the financial
question on the growth flyer. The question is, 'can we afford to open
a new store?'
o One of the proposed sentences is, 'revenues generated will cover the
new costs.'
o This question is supposed to cover just the financial aspect.
o This would include expenses at the new store as well as debt incurred.
o 'The financial committee says that revenues will cover the expenses.'
o 'The finance committee is closely examining how much of a new store
we can currently afford.'
o We are not overextended. Our property puts us in a good borrowing position
and our leases give us flexibility.
o 'South store property provides equity; leasing the north store and a
third store would give us flexibility.'
· Toni will submit the final response to Rivka to include in the
revised brochure draft going to the Board in December.
Meeting adjourned: 6:50pm
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