Securing the Future of Our Society
2009 was a year of dramatic positive change and growth for the American Philatelic Society and the American Philatelic Research Library. We still have some major challenges ahead, but I want to use my column this month to share this exciting progress with you. The futures of the APS and APRL are in our own hands, and by making the correct choice when a decision needs to be made, by proactively addressing the difficult situations that could improve by change, and by being honest brokers with ourselves every day, we can flourish. I believe the following examples are testament to this; as they say, “The proof of the pudding is in the eating.”
Our 2009 Year End Financial Statement
With the help of Rick Banks, our controller, I will present a profile of the year-end financial statement for the year ending December 2009. The entire financial statement is available for your review on our website at www.stamps.org/Almanac/AuditReport.pdf. Since moving to the Match Factory in 2003 and through 2008, our combined APS/APRL Operating Budgets did not cover any Interest Expense, Principal Payments, or Depreciation Expense. However, in 2009 the combined APS/APRL Operating Budgets covered ALL Interest Expense, ALL Principal Payments, and 15% of our Depreciation Expense. This turnaround, by itself, is a most significant factor of our financial strength. Below are a few comments from the Audited Financials.
Our Consolidated Statement of Activities shows:
• Total Revenue & Support increased $964K over 2008, significantly impacted by Investment Income that increased $1.021M over 2008. Therefore, the net of Investment Income, Total Revenue & Support only decreased by $57K, in a year that by all measures was fraught by bad economic news and tribulation.
• Cost cutting measures implemented in 2009 were successful as Total Program Services expenses decreased $444K from 2008 and Total Support Services expenses decreased $175K, for a combined decrease of $619K from 2008.
• Net result for the Consolidated Statement of Activities is that we went from a deficit in 2008 of $775K to a surplus in 2009 of $664K. This turn around in 2009, although not sufficient to offset 2008’s deficit, allows us to begin the process of offsetting past deficits, which improves our financial stability.
Our Balance Sheet shows:
• Current Assets increased $695K and Current Liabilities decreased $99K, thereby improving our Working Capital by $794K over 2008.
• Long-Term Debt decreased by $101K.
• Net Assets increased $664K, as stated in the last bullet point on the Consolidated Statement of Activities, none of which was generated from additional debt.
• Our Endowment Funds increased $273K in 2009.
None of this would have been possible without the sacrifices made by the Staff and the redistributed workloads that they have assumed. They are to be commended once again. Working together with the Staff Directors were the Boards of Directors, the Finance Committee, and the Long Range Planning Committee, whose guidance and leadership was invaluable in bringing about these changes of which we all should be proud.
We anticipate the financial outlook for the year ending 2010 will improve in several areas as the results from many new profit margin initiatives that were recently incubated have not yet been realized.
New Lease
A new tenant at the American Philatelic Center (APC) just signed a lease for 7,200 square feet. It is a 10-year lease, with two 5-year options, and represents about 30 percent of the space available for tenant rental. To build out the premises, the APS/APRL took a $900,000 mortgage and added about  $500,000 of funds that was left to the APS as a bequest from former APS President William (Bill) Bauer. The anticipated projected cash flow will be sufficient to pay the debt service on the $900,000 mortgage as well as yield a 7.25 percent return on the $500,000 from the Bauer estate during the first five years and a 9.41 percent return during the
sixth through tenth years. The tenant is the third largest producer of chemical lime/limestone products in North America and has more than a 100-year reserve in its local mine. An Oversight Committee was formed, comprised of the Presidents and Treasurers of the APS/APRL and chaired by the APRL President. The Committee will advise senior Staff during the build out and through the project’s completion.
Retiring Debt
And I have yet another good piece of news to share with you. The Boards of the APS/APRL have voted unanimously on a debt-retirement plan. The plan calls for the pay down of $900,000 of APS/APRL debt over the next five years, with payments annually. The funding to accomplish this will come from donations. There are three outside mortgages on the APC, and each annual payment will go towards the mortgage bearing the highest rate of interest at the time of the disbursement. This is a very fiscally responsible program, as it will not only systematically alleviate our debt load, but will free up funds to further improve the APC as we secure new tenants. We need your help in supporting the APC’s Campaign for Philately.
Just as a reminder, the Into the Future report is on the web site at: www.stamps.org/Almanac/alm_into_the_future.html
I see the outlook for our Society as being bright, yet filled with alternatives and decisions. We must continue to be prudent in our assessment of each issue in order to assure the health and well-being of America’s Stamp Club.
Staff Spotlight
 Denny Greenly, Building Superintendent
I have worked in my position as Building Superintendent of the APS for nearly fifteen years. Although I’ve lived in State College all of my life, I actually was born only blocks away from the new American Philatelic Center in Bellefonte, in the old Willowbank Hospital, now converted to county offices. In fact, the doctor who delivered me was William Welch Sr., father of the late AP editor, Bill Welch. Many of the APS staff have fond memories of the doctor who still made “house calls” and carried lollipops for the children. I am a graduate of the Williamsport Area Community College with a degree in Aviation Mechanics and Maintenance.
The position of Building Superintendent requires me to wear many different hats. At the old building in State College my duties were split between indoor and outdoor work. Due to the size of our Match Factory property, however, it was necessary to contract out the outdoor portion in order to concentrate on the rest of the facilities. In addition to the traditional janitorial duties, I am responsible for set-up and change-over of rental events. I help prepare for shows, conferences, and other APS events; undertake special projects around the building; help tenants with various maintenance items; and just be a Jack-of -All-Trades sort of person. I’m lucky to work with a great group of people and am fortunate enough to see just about everyone daily.
The move from the State College facility was overdue, as lack of space had become an overwhelming problem. I was very pleased when it was decided to renovate an old historic property like the Match Factory. I think Bob Lamb’s vision has become something to be proud of and I am looking forward to the upcoming phases of construction. When the site is totally finished it will truly be something to see and enjoy. |
