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ORANGE COUNTY ABC BOARD—AGENDA FORM <br /> Meeting Date: March 21, 2023 Agenda Item # 5a <br /> Regular Session X <br /> Closed Session <br /> Presenter/Information Contact: Ron McCoy <br /> Subject: February 2023 Financial Reports <br /> Attachment(s): <br /> 1. Attachment"A" Comparative Statement of Net Position for February 2023. <br /> 2. Attachment "B" Comparative Statement of Revenues, Expenses and Changes in Net <br /> Position for February 2023 and 2022. <br /> 3. Attachment"C"Actual to Budget Comparison, FY 2023. <br /> Br•iiefSummary/Explanations: <br /> 1. Comparative Statement of Net Position (Attachment"A"): <br /> The Board's financial position continued to improve as total cash held by the Board <br /> ($4,261,203) increased by $384,730 (9.92%) over the previous year. This was due to a decline <br /> in spending reflected in a modest increase in inventory (up $312,200, 8.71%), with the bulk of <br /> the increase($245,973)due to the addition of a ninth store (Southern Village). <br /> The decline in spending was also reflected in a decrease in accounts payable, down <br /> -$306,096(-20.60%) from the same period last year. <br /> Long term liabilities (those greater than one year) increased substantially, up <br /> $2,068,611 (105.87%), due primarily to the note payable to First Horizon bank for the loan on <br /> the new Mebane store. (The Board holds no other debt service, however). <br /> Year to date income ($928,363) continued -37.89% below the robust levels of the <br /> previous year. Nevertheless, revenues and income remained higher than pre-pandemic norms <br /> (2019 sales through February: $14,277,590; year to date income: $625,998). <br /> 2. Comparative Revenue, Expenses and Changes in Net Position 2023 to 2022 <br /> (Attachment"B"): <br /> Retail store sales ($1,901,713) declined by -$29,663 (-$1.54%) while LBD sales were <br /> up $50,527 (13.17%). With taxes ($546,306) up 1.03% and cost of sales ($1,193,914) down <br /> slightly (-0.24%), gross profit($598,192)was up $16,656, (2.86%). <br /> Total payroll expenses ($272,399) were up ($39,693, 17.06%), due primarily to <br /> increased salaries and wages.Total operating expenses ($120,664)were up $14,740 (13.92%), <br /> due primarily to increases in lease amortization (+$20,507), interest on leases (+$3,585), <br /> equipment repairs (+$3,566) and credit card expenses (+$2,387). Expense increases were <br /> offset by declines in rent (-$12,526), office expenses (41,564),professional services <br /> (-$2,177) and interest on debt service (41,507). <br /> Net income for the month (before depreciation) was $112,563, down-$52,769 <br /> (-31.92%). Total sales to date ($21,009,723)were up $777,340 (3.84%) over last year. <br /> Page 1 of 6 pages <br />