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TO: Mayor and City Council t 8186.4
<br />-11 j
<br />FROM: mark Bernhardson, City �ldministra+t
<br />DATE: August 1, 1986
<br />SUBJECT: April - June 1986 2nd Quarter Liquor Report
<br />Attached please find the .liquor report for the store through the
<br />end of June 1986. As you'll recall the first quarter lagged
<br />about $1,000.00 behind projections and resulted in a $5,800 loss.
<br />While the sales resu -s from the 2nd quarter sales, have been
<br />very strong and made a 2nd quarter prc- t, the ar to date
<br />operations, lag about $3,600 behind projection; but teduceq 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 results historically and as a view
<br />against the targets that have been �staol ished.
<br />181
<br />Actual
<br />Net Sales 190,115
<br />Cost of Sales 136,200
<br />Gross Profit 53,915
<br />Expenses 55,100
<br />OperatingIncome (1,185)
<br />+ ) - Indicates Loss
<br />'84
<br />Actual
<br />199,485
<br />142,175
<br />57,310
<br />58,228
<br />(91;.)
<br />'85 1986
<br />Acutal Target Actual
<br />189,145
<br />138,513
<br />50,632
<br />59,224
<br />(8, 592)
<br />214,000
<br />154,800
<br />60,705
<br />60,276
<br />435
<br />hDn Operating
<br />Revenues 1,501
<br />1,562
<br />1,100
<br />Net '-ncome
<br />316
<br />644
<br />(7,492)
<br />Inventory
<br />1 14,205
<br />1 1 1, 74 3
<br />1 0 8, 282 90,000
<br />she 1986 targets, ii met, would yield about a10,000 net income by
<br />the end of the year, currently the operatics is $3,600 behind the
<br />target ne+. profit. For comparison the operat:-n was $500 behind
<br />the I-arget in March (a $5,,. )0 loss.) In 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 liabi'Ity
<br />insurance rates. One extraur "Iinary 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 $1,600 net loss for six
<br />months and $2,000 behind the target.
<br />RECOMMENDATION - Although performance conti!-Aes to be strong it
<br />s recommended this item be discussed at the A ust 25, 1986
<br />Council meeting.
<br />Proposed motion - Moved by , seconded by , to accept the
<br />information for the second quarter liquor results and tnat the
<br />it^m be placed on the August 25, 1986 agenda for further
<br />discussion. Ayes _, Nays _.
<br />210,039
<br />153,526
<br />56,513
<br />59,767
<br />(3,254)
<br />1,156
<br />(2,098)
<br />65,376
<br />cc: Tom Kuehn, Finance Director & Lorraine McGowan, Liquox Mgr.
<br />
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