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Agenda Item -Special Presentations <br />• Financial Standing: <br />o Available Cash and certificates of deposit (as of 6/30/2006 -does not include <br />reserve for retired employees health insurance) _ $1.4 million. <br />o Working capital as of 6/30/2006 was $1.86 million, which was above the <br />minimum requirement, but about 50% less than the maximum allowed by NC <br />ABC Commission Rule .0902. (Amount allowed was $3.7 million -See <br />Note 8 to F/S). <br />o Excess Cash: The reason for the accumulated cash is to fmance future <br />expansion, replacement of leased facilities, and modernization of certain <br />existing facilities as discussed above. Cash will start being disbursed shortly <br />after suitable real estate is located and purchase is approved. <br />o Income Statement Information: <br />^ Overview: Comparative Income Statements - FY02/03 through <br />FY06/07 -See Attachment "A" -Spreadsheet. This sheet provides <br />trend analysis information for afive-year period. <br />^ Sales - FY02/03 - FY06/07 - (Attachment "B" -Graph). This graph <br />depicts the types of sales and increases. <br />• Sales are normally broken down between retail customers and <br />ABC permittees (often referred to as "Mixed Beverage" or <br />"Liquor-By-The-Drink" customers. <br />• Sales have increased substantially for the period presented. <br />-- ^ Breakdown of Sales Dollars: Taxes, Cost-of--Sales & Gross Profit - <br />FY02/03 - FY06/07 (Attachment "C" -Graph). "Sales" minus <br />"Taxes &Cost-of-Sales" equals "Gross Profit". Gross profit refers to <br />the funds left, after paying for the product and related taxes, <br />• to pay bills, <br />• make distributions, and <br />• to re-invest in the enterprise (buy equipment, real estate, etc.). <br />The "Gross Profit %" has remained virtually constant over the last <br />several years. <br />^ Breakdown of Gross Profits: Gross Profits, Operating Expenses, and <br />Operating Income - FY02/03 through FY06/07 - (Attachment "D" - <br />Graph). "Gross Profits" less Operating Expenses equals Operating <br />Income. <br />^ Non-Operating Income (primarily interest income) is added to <br />Operating Income to provide "Net Income Before Distributions". This <br />is a one-line entry on Attachment "A". A graph is not provided. <br />BOCC Meeting 10/17/2006 Page 6 of 7 pages <br />