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<br /> ORANGE COUNTY ABC BOARD—AGENDA FORM
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<br /> Meeting Date: February 21,2023 Agenda Item # 5a
<br /> Regular Session X
<br /> Closed Session_
<br /> Presenter/Information Contact: Ron McCoy
<br /> Subject: January 2023 Financial Reports
<br /> Attachment(s):
<br /> 1. Attachment"A"Comparative Statement of Net Position for January 2023.
<br /> 2. Attachment `B" Comparative Statement of Revenues, Expenses and Changes in Net
<br /> Position for January 2023 and 2022.
<br /> 3. Attachment"C"Actual to Budget Comparison, FY 2023.
<br /> Brief Summary/Explanations:
<br /> 1. Comparative Statement of Net Position (Attachment"A"):
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<br /> Total cash held by the Board($3,819,101)was-$1,526,013 (-28.551/6)less than the prior
<br /> year, a deficit that has remained consistent for the past three months. The Board remained
<br /> sufficiently"liquid,"however,with a current ratio of 4.25 (current assets/current liabilities)and
<br /> an "acid-test"ratio (cash/current liabilities) of 2.01.
<br /> Inventory volume, an indicator of the Board's financial health, was at $3,969,926, up
<br /> $631,771 (18.93%). While higher than the previous year, the increase included the addition of
<br /> an additional store, Southern Village, accounting for $269,315 of the increase. Inventory of
<br /> bags used to package store sales ($86,808) was up $38,151 (78.41%). (Bags are stocked in the
<br /> warehouse and allocated to stores as needed.)Bag usage fell off during the pandemic period but
<br /> increased significantly in recent months.
<br /> Accounts payable owed by the Board ($1,062,209) decreased by -$3,435 (-0132%).
<br /> Long term liabilities ($4,054,629) increased by 9.79%, due primarily to the First Horizon
<br /> financing of the new Mebane store.
<br /> Year to date income($850,491) decreased -$308,450 (-26.61%) from last year.
<br /> 2. Comparative Revenue, Expenses and Changes in Net Position 2023 to 2022
<br /> (Attachment"B"):
<br /> Retail store sales for the month ($1,776,906) declined by -$47,295 (-2.59%) while
<br /> LBD/commercial sales ($407,317) increased $143,408 (54.34%). (A decline in store sales
<br /> during the post-holiday period is not usual, often driven by New Year's resolutions). By
<br /> comparison,during the pandemic period of the previous year,retail store sales were at elevated
<br /> levels while LBD sales were suppressed.
<br /> Gross profit of$556,608 was up slightly ($20,885, 3.90%).
<br /> Total payroll-related expenses ($328,039)was up $80,007, (32.26%), due primarily to j
<br /> calendarization and a recent increase in employee wages. Increases in employee health
<br /> insurance (+$8,364) was the result of the addition of new employees to the policy and 2023
<br /> rate increases.
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