- FRYS’ posted a profit of $15K in July for the second highest month since inception ($19k in November)
- E-tab sales were strong at $104K compared to an average of $91K for a positive 14% above trend.
- Gross profit margins had a margin of 14.8%, aligning with the historical average of 14.5%
- Paper tab sales posted the second-best month on record with revenue of $90K for a positive 61% beat above the monthly mean of $56K in sales.
- As with e-tabs, probability remained with FRYS as the gross profit margin on paper tabs hit 21.1% versus the monthly average of 18.4% while delivering gross profit of $19K, exceeding e-tabs’ gross profit of $15K due to more favorable profit margins – even though paper tab sales were only 86% of the e-tabs
- While both paper & e-tabs had favorable returns, FRYS’ most profitable outfit is the surging Bingo experience at Boxers, producing sales of $14K with the highest gross profit margin of all games at 28.1% for $4K in gross profit
- In fact, Bingo revenue has almost doubled in 6 months since the game first rolled out in February
- Turning to other charitable gambling news, FRYS will be selling pull-tabs at the MN Town Ball State Tournament at Bell Field over the long Labor Day weekend from September 2 – September 5 à FRYS is looking for volunteers to help sell pull-tabs
- Another FRYS development is the near completion of the first phase of projects at the Rotary Camp
- This round is focused on exterior assignments with interior work next on the docket for an expected to start in mid-September
- In other news, FRYS dished out $6,900 in unearned business income taxes (UBIT) with $4,700 headed to the Federal Government and $2,200 headed to the State of MN
- Per Dave Beranek and Reese Winter’s research, FRYS was going to have to pay UBIT this year regardless of the amount of money donated back into the community due to the start-up cash FRYS received to get its charitable gambling operation up and running taxed at ~30% clip
- Further complicating UBIT is the numerous payments and expenses that FRYS’ charitable gambling account experiences at the turn of the month, such as revenue share with M-Peters, the City of Faribault along with various other cash outflows that need to be funded
The following expenses were approved - CG Made Easy Administrative Fee = $250
- Inventory = $8,000
- Opportunity to purchase more inventory on hand for MN Town Ball State Tournament along with robust sales in July & August so far, meaning more inventory needed
- Rotary Gambling Team Compensation = $2,600
- Bingo Team Compensation = $2,000
- Bingo is being hosted every Thursday night
- Revenue Share with MPeters = $8,000
- Profit share is 31% of e-tab gaming à Solid activity in July and August so far means a higher revenue share
- City of Faribault = $1,200
- Rise in sales in July could mean more profit share with the city
- Revenue Share with Boxers = $8,000
- Profit-share w/ e-tabs = 15% & paper tabs = 20% à Strong paper tabs sales in July and so far in August means higher revenue share
- Misc. Cost = $2,000
- FRYS hired Reese, Winter payroll processing is ~$1k a month with another $1k for pursue bingo and/or other misc. costs that arrive
- Total Expenses = $32,050
- On a first by Jake Cook & a second George Wickstrom, FRYS’ membership approved September’s expenses
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