- Guess the old rhyme should be May showers bring June flowers, huh? Hope everyone’s basement is dry after all the rain the last couple days à Unfortunately, FRYS’ basement is not dry after the traditional “April showers.” (Yes, that was a very poor metaphor to give a preview of what to expect in the gambling report below as the organization was underwater in April)
- E-tabs sales retreated to a three-month low in April, totaling $118K, which is just above the YTD average of $114K, so not bad à the gross profit margin also held up alright at 19%, topping the YTD average of 15.6%
- Putting it all together, e-tabs delivered $22K in gross profits for FRYS, nearly identical to last month
- Unfortunately, the tide went out on paper tabs as a new record was established but not a positive record: to start, paper tab sales dropped noticeably in April, falling to $74K from $93K in March
- YTD paper tab sales have averaged $82K so not a great start but that did not puncture the hull that resulted in the organization taking on water àthat occurred from the gross profit margin, aka the volatile, lucky side of the gambling business
- The gross profit margin for April collapsed to an all-time low of 9.7%!!! à The previous low on paper tabs was 12.81%, which occurred during the organization's third month in business back in December 2021
- For those curious on the statistics, the 9.7% gross profit margin is more than a two standard deviation move, meaning the chances are about 1% for such an occurrence any given month
- A pitiful margin of 9.7% resulted in gross profits of $7K, the lowest total since December 2023’s $6K when total paper tab sales were only $40K
- Bingo sales also retreated over the month of April, pulling back to $17K after a $22K performance in March; however, luck was on FRYS side in this case as the gross profit margin held up at a powerful 23% for gross profits of $4K.
- If record softness in paper tab sales was not enough to sink the earnings ship in April, taxes of $14K on top of soft gross profits certainly did, culminating in a net loss of $(3K) for FRYS.
- Looking forward, monthly taxes decline to $10K in May, so there are prospects of better seas ahead.
- In other FRYS news, Dave Beranek continues to oversee the development of a blueprint for a septic system out at the Camp with the results expected any day here now
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