- Good tidings were brought to FRYS in the month of June 2023 due to the great work of Rotarians selling raffle tickets in June
- E-tabs recorded the lowest monthly sales activity of the fiscal year at $89K (avg = $114K) but weak sales were overcome by a powerful gross profit margin at 21.27% (avg = 16.02%) that delivered cash of $19K in the form of gross profits
- On the other hand, papers tabs had a surprising surge with sales of $68K (avg = $61K) over the month of June and the cherry on top was a strongest gross profit margin of the 2022/2023 campaign at 20.40% (avg = 17.15%) for gross profits of $14K
- Bingo had a rebound month as sales summed to $14K, which was also above monthly average of $13K
- Unfortunately, the business of charitable gambling is a zero-sum game, meaning if FRYS does poorly the gamblers do well and vice versa as was the case for Bingo as the gross profit margin tumbled to 7.26% (avg = 20.21%) for profits of $1K
- Turning to the Rotary Raffle, the Faribault Rotary Club produced sales of $22K and paid out $5K in gifts for gross profits of $16.5K to FRYS/Rotary
- If anyone was curious about last year’s Rotary Raffle produced $18K in sales and gross profits of $13.4K so an increase of 16.70% for sales and 22.91% for gross profits
- That excellent work from Rotarians selling raffle tickets was critical to deliver net profits, which totaled $11.3K for the month. Without the Rotary Raffle, net income would have been a net loss of $(5K) as FRYS paid $11K in income taxes for June. Looking forward, income taxes for July will be slightly higher at $12K. The other large expense that occurred in June was the payment of the $10K for the inaugural audit.
- In other news, August 31 is year-end for FRYS and that always requires a dance between managing net income, charitable contributions and avoiding the unearned business income tax
- One aspect that will make that dance more interesting is FRYS’ pull-tab sales at the Blue-Collar Festival August 4th & 5th, which the MN Gambling Control Board recently approved of FRYS undertaking.
The following charitable gift was approved - Faribault Rotary Youth Services $25,000
- Due to mistimed cash flows and softer earnings to start the fiscal year, FRYS tapped into its reserves to pay out scholarships, Strive and Warm Our Community as opposed to using cash flows from charitable gambling for which this donation reimburses the reserve fund
- On a motion by George Wickstrom & seconded by Rod Muller, FRYS membership approved the reimbursement
The following expenses were approved for August - CG MadeEasy = $250
- Inventory = $3,500
- Brenda noted that sales have been slower but due to FRYS selling pull-tabs at the Blue Collar Festival greater inventory might be required than the boxes on hand
- Charitable Gambling Team Comp = $2,800
- Bingo Team Comp = $2,800
- MPeters = $10,000
- City of Faribault = $1,000
- Boxers = $7,000
- Misc. = $2,500
- Total Expenses = $29,850
- On a motion by Dick Huston & seconded by Kristen Gleason, FRYS approved expenses for the month of August
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