Good day FRYS, To begin, my apologies for not being able to attend today’s meeting; however, Brenda will do a phenomenal job presenting the monthly CG report to membership! With August now history, the 2023/2024 campaign is in the books, offering a great opportunity to review performance year-over-year but first let’s take a look at August’s numbers. E-tabs had a solid month with sales of $141K; however, the gross profit margin utterly collapsed to 6.93%, which is the lowest performance in FRYS’ history (second lowest = 8.79% August 2022). Gross profits on the $141K in sales ended up at just $10K. For the 2023/2024 campaign, e-tabs had average monthly sales of $127K with gross profits of $19K for a margin of 14.96%. In the prior year, the margin was 16.40%. In the tangible realm, paper tabs produced sales of $77K over August with a gross profit margin of 20.76%, the second best of the year, netting $16K in gross profits. For the 2023/2024 campaign, paper had average monthly sales of $63K with gross profits of $12K, translating to a 19.04% gross profit margin, which means paper tabs are slightly more profitable for FRYS on a per dollar basis. In the prior year, the margin was 17.98%. Bingo had another successful month at Boxers producing revenue of $17K with gross profits of $2K. Bingo averaged $16K a month in revenue with gross profits of $3K for a margin of 18.75%. For August, net income was $7K; however, that figure is largely irrelevant now since that income was included when FRYS was making the big donation checks last month in preparation for year-end. This goes without saying, but to see growth in all the major games year-over-year speaks volumes to the type of experience Boxers & FRYS is putting on for players. Can revenue grow year-over-year? Absolutely! The FRYS gaming experience will continue to improve and that will continue to draw in new dollars and gamers. Synthesizing all the data from above, total net income fell $12,462 due to weaker performance on e-tabs as the margin compressed 1.44%. If that margin would have been maintained for 2023/2024, net income would have been roughly $22K higher than the posted figure of $69K. In other FRYS news, the MN Department of Revenue contacted FRYS and stated the organization has not paid its UBIT taxes. This is not the first-time the MN Department of Revenue has contacted the organization about UBIT but FRYS is no tax cheat! The organization paid the UBIT tax on time via an ACH payment and has the receipts, so that is all being rounded up with the help of Reese, Winter and sent to the Department of Revenue clear this issue. Those PDFs - the communication from Department of Revenue & ACH payment - are included in this month's attachments. Well that’s a wrap for the 2023/2024 fiscal year! Here’s a big thank you for all your continued support of FRYS charitable gambling – much appreciated, Brenda DeMars, Amy Lubrant, Jessica Amundson & Chad Koepke Sept. 26, 2024 Club meeting - With August now history, the 2023/2024 campaign is in the books, offering a great opportunity to review performance year-over-year but first let’s take a look at August’s numbers
- E-tabs had a solid month with sales of $141K; however, the gross profit margin utterly collapsed to 6.93%, which is the lowest performance in FRYS’ history (second lowest = 8.79% August 2022)
- Gross profits on the $141K in sales ended up at just $10K
- For the 2023/2024 campaign, e-tabs had average monthly sales of $127K with gross profits of $19K for a margin of 14.96% à in the prior year, the margin was 16.40%
- In the tangible realm, paper tabs produced sales of $77K over August with a gross profit margin of 20.76%, the second best of the year, netting $16K in gross profits
- For the 2023/2024 campaign, paper tabs had average monthly sales of $63K with gross profits of $12K, translating to a 19.04% gross profit margin, which means paper tabs are slightly more profitable for FRYS on a per dollar basis à In the prior year, the margin was 17.98%.
- Bingo had another successful month at Boxers producing revenue of $17K with gross profits of $2K
- Bingo averaged $16K a month in revenue with gross profits of $3K for a margin of 18.75%
- For August, net income was $7K; however, that figure is largely irrelevant now since that income was included when FRYS was making the big donation checks last month in preparation for year-end
- Rather than dwell on August alone, the completion of the most recent fiscal year is the perfect opportunity to evaluate how the FRYS charitable gambling operation evolved in its third full year of business:
Game | 2023 Sales | 2024 Sales | % Increase | E-Tabs | $1,400,985 | $1,527,400 | 9.02% | Paper Tabs | $737,763 | $756,196 | 2.50% | Bingo | $152,425 | $189,569 | 24.36% | Net Income | $81,727 | $69,265 | -15.24% |
- Synthesizing all the data from above, total net income fell $12,462 due to weaker performance on e-tabs as the margin compressed by1.44%
- If that margin would have been maintained for 2023/2024, net income would have been roughly $22K higher than the posted figure of $69K
- In other FRYS news, the MN Department of Revenue contacted FRYS and stated the organization has not paid its UBIT taxes
- This is not the first-time the MN Department of Revenue has contacted the organization about UBIT but FRYS is no tax cheat!
- The organization paid the UBIT tax on time via an ACH payment and has the receipts, so that is all being rounded up with the help of Reese, Winter and sent to the Department of Revenue clear this issue
The following expenses were approved for October - GG Made Easy = $250
- Inventory = $4,500
- Slight decrease due to purchase at the end of August in preparation for year-end
- CG Team Compensation = $3,000
- MPeters = $12,000
- City of Faribault = $1,500
- Boxers = $10,000
- Misc (coolers, pursues, Bingo team comp) = $2,500
|
|
