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i ORANGE COUNTY ABC BOARD—AGENDA FORM Meeting Date: August 19,2025 Agenda Item#7 Regular Session X Presenter/Information Contact: Ron McCoy Subject: JULY 2025 Monthly Financial Reports i Attachment(s): 1. Attachment"Sales Comparisons Jan to July (2023-2025)". 2. Attachment"Comparative Statement of Net Position for JULY 2025 and 2024". 3. Attachment "Comparative Statement of Revenues, Expenses and Changes in Net Position for JULY 2025 and 2024." 4. Attachment"Actual to Budget Comparison FY 2026." 5. Attachment"Comparative Statement of Monthly/Year-to-Date Retail Sales by Store." 6. Attachment"NC Statewide Report of Spirituous Liquor Sales." i Brief Summary/Explanations: 'll The pattern of decline in liquor sales has continued to affect Orange County ABC and other boards in the state.A three-year comparison of the same seven-month period(Jan-July) clearly demonstrates the decline in Orange County(see attached). Sales for the seven-month period in 2024 (blue line)continued to improve over 2023 (green line)until May 2024 when sales first began falling below those of the previous year. This was due primarily to the full reintroduction of the vacation season post-Covid. In 2025, sales for the entire period are down significantly from the past year for both retail and LBD customers. The decrease is due in part to an ongoing decline in the number of bottles j being purchased. Bottles sold in July decreased by 2,999. There is hope for fiscal improvement,however. The summer vacation season(July-August) is historically a period of diminished liquor sales in Orange County. With the return of travelers, UNC students and the start of the college football,we expect sales to improve, beginning in September. 1. Comparative Statement of Net Position for July 2025 (Attachment"Page 3'): Although monthly sales continued to decline, cash assets held by the Board improved. Total cash held in July was$4,573,237,up $504,495 (12.40%).The increase in cash was related to the decrease in expenditures for inventory($4,148,775), down-$434,198 (-9.47%). Accounts payable owed by the Board($1,686,641) decreased-$99,702 (-5.58%), due primarily to the decline in distillers'(trade) invoices, down-$108,595 (-6.56%). Taxes and payroll liabilities ($866,135)increased$25,590 (3.04%), due primarily to an obligation for employee retirement($36,146.91) incurred in July but paid in August. Net income for the month/year was a loss of-$65,102,but a net improvement of$19,051 over the previous year's position. I I I Page 1 of 9 pages