Posted by Chad Koepke

Another record setting month in sales!

  • A new record performance in monthly revenue with $212k in sales for an increase of 12% from the previous record month’s sales of $190k
    •  Sales of paper tabs drove the record revenue as paper tab sales were $100k while e-tabs were $103K.
      • The paper tab / e-tab sales ratio of 97% is the highest on record; to put the 97% into perspective, in December 2021, the paper tab / e-tabs sales ratio was 38%.
    • Gross profit on paper tab sales also established a new high at $20k driven by a solid gross profit margin of 20.4% in March 2022.
    • Net income for the month was a healthy $13k
  • Through 6 months (October 21 – March 22) total sales, which have been increasing consistently month-over-month are $873k with net profit of $68k for a net profit margin of 7.78%.
    • Monthly gross profit on e-tabs has averaged ~$13k with a gross profit margin (sales – prizes) of 14%.
    • For paper tabs, which have been more volatile, average gross profit is $10k with a margin of 18.4%.
  • In other gambling news, Dawn has inquired if FRYS would be willing to sponsor/purchase a new video horse racing game to be played at Boxers, costing ~$1,500 for the system
    • Assuming all the tickets are sold, gross profit per game is guaranteed at $92 per game ($308 purse); however, costs to purchase the paper cards and profit-sharing with Boxers are taken out of the $92 gross profit for a net income per game likely around the $50 mark, requiring ~30 games be played to break-even on the investment
    • The “shelf-life” of the computer system is many years, so FRYS will turn profits for years to come once the break-even point is reached
      • On a motion by Jake Cook with a second by Dr. Huston, FRYS membership approved the purchase of horse racing system
  • With regards to monthly expense approval, the following sought membership approval:
    • CG Made Easy Administrative Fee = $250
      • Fixed fee every month
    • Inventory = $6,000
      • Paper tab sales set a record high in March 2022, meaning inventory might need to be higher going forward with the positive momentum at Boxers
    • Rotary Gambling Team Compensation = $2,600
    • Bingo Team Compensation = $2,000
      • Bingo is being hosted every Thursday night now, requiring greater compensation
    • Revenue Share with MPeters = $10,000
      • Profit share is 31% of e-tab gaming à Growth in e-tabs have slowed as gamblers turn to paper tabs
    • City of Faribault = $1,500
      • Revenue share with the city is up with stronger sales
    • Revenue Share with Boxers = $8,500
      • Profit-share w/ e-tabs = 15% & paper tabs = 20% à Paper tabs set record highs in March and that means higher revenue share with Boxers given the 20% share
    • Misc. Cost = $5,000
      • FRYS is hiring Reece, Winter payroll processing is ~$1k a month
      • A specialty “purse” bingo is coming in May with purse prizes of $1,100
    • Total Expenses = $32,250
      • On a motion by George Wickstrom with a second by Natalie Ginter, FRYS membership approved the May expenses
  • Turning to the most exciting news of the monthly membership meeting, today’s membership meeting marked the first membership vote on approval of charitable donations from FRYS’ gambling profits
    1. $10,000:  Healthy Community Initiative “Little Falcons” – Program’s purpose is to increase participation of elementary aged youth in Faribault in extracurricular activities and athletics
    2. $800: Faribault American Legion “Legionville Safety Camp” – Two scholarships for Faribault students to attend
    3. $500: Faribault Parks and Recreation “Safety Camp” – Sponsorship of the camp which benefits Faribault youth ages 8-10 years old
    4. $7,000: Annual Rotary music, theater and arts scholarships program to be held in mid-May
    5. $300: Candy for kids at the Eid celebration
      1. Note, the Eid approval was not noted on the monthly membership memo as the request came last minute
 
  • Total Donations = $18,600
    • On a motion by Rod Muller with a second by Rebecca Freed, FRYS membership approved the first charitable contributions