- E-tabs retreated from last month’s record sales to a more normal $101K but any month the century mark in volume is cleared is a sign of favorable demand
- However, whether it was a successful month is driven by probabilities/chance and that also was an average performance with a gross profit margin of 17.4% for $18K in gross profits
- For those curious, when e-tab gross profit margins exceed 20% in a month is when things become real exciting for FRYS in terms of profits.
- Shifting gears to paper tabs, total sales were $51K with a record-breaking gross profit margin of 24.6% for gross profits of $13K
- Cu
rious as to what the prior margin of record was? A few months ago that was established at 23.94% in September 2023 on sales of $58K for gross profits of $14K - For the last twelve months, paper tabs have averaged $58K in monthly sales, but the last four months have averaged only $45K so the large profit margins are very much welcomed given the softer demand
- The other new record established in January 2024 was Bingo sales at $18K, surpassing the prior record of $16K established also in September 2023 as well as March 2023.
- Congrats to the winner of the Bingo jackpots as Bingo’s gross-profits were $2K on 9% margin
- For context, Bingo margins are generally north of 15% so when single digits come across the wire that is an indication of a jackpot going home
- While FRYS established two records in the month, net income was far away from such accomplishment, posting a net loss of $(1K) for the month à what caused the loss? The annual charitable gambling audit by the CPA, which is due to FRYS’ sales exceeding $750K
- Total cost for the 2024 audit was $11,200, up from last year’s $10K
- Looking forward, the MN Gambling Control Board changed requirements for charitable gambling audits in the coming year as e-tab sales will be excluded from the calculation of $750K in revenue, which will make a nail bitter for FRYS whether above or below as paper tab sales for the 2022/2023 campaign were …..$737K, so maybe the recent reduction in paper tab demand is positive?
- FRYS just completed its first compliance review by the MN Gambling Control Board, which culminated in a four-hour site visit at Boxers where all of FRYS’ shortcomings were unearthed…except there were not that many shortcomings
- The individuals from the control board were satisfied with FRYS’ processes, procedures and operation – especially given that this was the first time the regulators have applied a microscope to the organization and have not benefited from wisdom and insights gained in prior examinations
The following expenses were approved for the month of March 2024 - $250 CGMade Easy
- $3,500 Inventory
- $2,800 Gambling Team Compensation
- $12,000 MPeters Revenue Share
- $1,000 City of Faribault
- $7,000 Boxers
- $2,500 Misc. (Bingo team comp, pursues, coolers, etc..)
- Of note, the paper tabs machine has been malfunctioning recently and might need repairs of around $1K, which is under the Misc. costs for the month
- Total $31,850
- On a motion by Laura Bock & seconded by Dr. Dick Huston, FRYS membership approved expenses for March 2024
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