Financial Report

For the second quarter of this fiscal year (October through December) the Wedge's Sales were $6,672,373. This is an increase of 5% over last year. In general, the increase is from a higher average "basket" (industry lingo for the average expenditure per shopping trip) and not from additional customers.

Our Gross Margin for the second quarter was 37%. That means that, on average, for every dollar we make in sales we pay our suppliers 63 cents. From this remaining 37 cents, we pay all other expenses of running the business.

This quarter, we spent $1,603,962 on payroll and related costs (taxes, benefits), or 24% of sales. This is always our largest expense, after Cost of Goods.

Our Occupancy Expenses were $163,439, only 2.5% of Sales. This covers things like insurance, real estate tax, utilities, trash, and building repairs and depreciation.

In Operating expenses - phones, supplies, bank fees, vehicles, cleaning and other services, we spent $250,485 or 3.8% of Sales.

Our Administrative, Governance and Promotion expenses - CPA, legal, office supplies, annual meeting, member discounts, newsletter, advertising etc. came to $302,514 or 4.5% of Sales. So far this year, members have used $161,243 in 10% electronic coupon discounts.

All of the above comes to 34.8% of sales, leaving us with 2.2% profit (37% gross margin less 34.8% expenses) before "other" expenses and income.

We booked $123,700 in margin earned from the warehouse and $43,000 in other income, which includes $7,900 in patronage refunds from other co-ops. We sent $77,500 in to the government for estimated Income Taxes. Our Net Income After Tax for the second quarter of fiscal year 2004 was $237,300, or 3.6% of Sales.