General Manager's 2006 Report

Posted Fri, 12/01/2006 - 8:00am
2006 2005 2004 2003
Department Income 1,678,399 1,595,619 1,500,240 1,509,478
Cost of Sales 1,092,056 1,058,675 1,013,677 999,109
Member Discounts 122,433 120,466 113,643 109,850
Gross Profit 464,184 416,832 373,336 410,174
Operating Expenses 456,404 407,290 403,154 384,061
Operating Ordinary Income 7,780 9,543 -29,819 26,113
Net Income 9,878 -13,241 -22,788 7,834
Co-op Net Worth 435,407 394,209 398,525 429,341
Inventory (Wholesale) 119,531 101,829 94,503 90,601
Credit Card Fees 17,046

Our fiscal year runs July 1 to June 30.

Department Income—the total rung through the register.

Cost of Sales—the amount HPC paid for merchandise.

Member Discounts—discount given to working members.

Operating Expenses—includes payroll, utilities, supplies, credit card fees.

Operating Ordinary Income—amount left after paying operating costs.

Net Income—amount left after paying our expenses and adjusting our other income.

Store improvements this last fiscal year included a different cooler for the packaged nuts, eggs, etc., and new nut bins. We also did some revamping in the tea department. As mentioned at last year’s annual meeting, we will be going ahead with installing a replacement walk-in cooler and freezer in the back room, sometime in the winter. This will be our major improvement for this new fiscal year. We are using gains made this past year towards the purchase. We will not need a loan.

We continue to be one of the few co-ops that has volunteers. Thank you for your interest, your participation, and your enthusiasm. I believe that the sense of community that is experienced by us all is good for the over-all community. We continue to maintain the co-op principles and this is a reason to be proud.

Our sales were up at a manageable level. We also have new expenses. We are paying “assessments” to the IOOF [Independent Order of Odd Fellows] in lieu of an actual rent increase. These costs include street/ alley charges, water use, snow plowing, taxes, etc. We estimate this to average $1000+/month. You perhaps noticed the credit card charges above. Considering these new expenses, we did very well last year.

I want to thank all of you who helped to make this a good year—volunteers, employees, shoppers, and our Board of Directors. The board this past year included Jay Dregni, Karen Gill- Gerbig, Kjersti Hanneman, Marcia Hanson, Naomi Karstad, Gregg Richardson, John Rogers, Lisa Scribner, and Sophie Teyssier.

—Respectfully submitted by Helen DuFault, November 18, 2006