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TO: Mayor and City Council 8186.4
<br />FROM: Mark Bernhardson, City Administrat a NG
<br />DATE: August 1, 1986 [Ij u
<br />SUBJECT: April - June 1986 2nd Quarter Liquor Report "'i"c' 1,si;y0
<br />Attached pie ase find the liquor report for the store through the
<br />end of June 1986. As you'll recall the first quarter lagged
<br />about $1,000.90 behind projections and resulted in a $5,800 loss.
<br />While the sales results from the 2nd quarter sales, have been
<br />very strong and made a 2nd quarter profit, the year to date
<br />operations, lag about $3,600 behind projections but reduces the 6
<br />month loss to ($2,098). Business continues to be brisk and staff
<br />is working to minimize expenses and make sales more profitable.
<br />Below are the first six months
<br />results
<br />historically
<br />and as a view
<br />against the targets
<br />that have
<br />been established.
<br />'83
<br />184
<br />185
<br />1986
<br />Actual
<br />Actual
<br />Acutal
<br />Target
<br />Actual
<br />Net Sales
<br />190,115
<br />199,485
<br />189,145
<br />214,000
<br />210,039
<br />Cost of Sales
<br />136,200
<br />142,175
<br />138,513
<br />154,800
<br />153,526
<br />Gross Profit
<br />53,915
<br />57,310
<br />50,632
<br />60,705
<br />56,513
<br />Expenses
<br />55,100
<br />58,228
<br />59,224
<br />60,276
<br />59,767
<br />Operating Income
<br />(1,185)
<br />(918)
<br />(8,592)
<br />435
<br />(3,254)
<br />( ) - Indicates Loss
<br />Non Operating Revenues
<br />1,501
<br />1,562
<br />1,100
<br />1,156
<br />Net Income
<br />316
<br />644
<br />(7,492)
<br />(2,098)
<br />Inventory
<br />114,205 111,743
<br />108, 282
<br />90,00
<br />85,376
<br />The 1986 targets, if met, would yield about $10,000 net income by
<br />the end of the year, currently the operation is $3,600 behind the
<br />target net profit. For comparison the .eration was $500 behind
<br />the target in March (a $5,400 loss.) 1983 when the operation
<br />lost ($1,185) through June eventually made $17,500 by years end.
<br />While personnel services expenses have been significantly
<br />decreased these are somewhat offset by a doubling of liability
<br />insurance rates. One extraordinary cost has been $1,650 for
<br />legal expenses charged in 1986 for a 1985 case. Excluding these
<br />charges places the operating loss about $1,6Q6 net loss for six
<br />months and $2,000 behind the target.
<br />RECOMMENDATION - Although performance continues to be strong it
<br />Ti-recommended this item be discussed at the August 25, 1986
<br />Council meeting.
<br />Proposed motion - Moved by seconded by to accept the
<br />information for the second quarter liquor results and that the
<br />item be placed on the August 25, 1986 agenda for further
<br />discussion. Ayes , Mays
<br />cc: Tom Kuehn, Finance Director 8 Lorraine McGowan, Liquor Mgr.
<br />
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