Financial Report

Sales for the first quarter of fiscal year 2001/02 (July through September) were $5,499,904. This is an increase over last year of 13.4%. Sales by the produce warehouse were just over $450,000, and the store's sales were just over 5 million.

Our Cost of Goods Sold for the quarter was 62.8%, giving us a gross margin of 37.2%. This means that, after paying vendors for the products we sold to you, we had 37 cents from every dollar in sales to pay all other expenses.

Payroll related expenses were 24.7% of sales for the quarter. Compared to last year, we spent $155,000 more on payroll related expenses, or about 13%. Most of this increase is in wages; attributable partially to higher average wages and partially to an increase in total hours worked.

Building expenses, 2.5% of sales, are up just a bit due to real estate taxes and insurance.

Operating expenses - 4.5% - are also up a little. We spent a lot in the supply category to outfit the new in-house Bakery. Also, trucking costs were higher than expected this quarter at the warehouse.

Administration/Promotional expenses are down to 2.6%, for a variety of reasons. Primarily, last year we were spending a bunch on consultants helping with the expansion process.

The skinny "Other" (2.2%) slice of the pie represents both other expense and other income. On the expense side, we have estimated State and Federal taxes and interest on loans. On the income side, we have interest earned (ha!), classroom fees, and profits generated by the produce warehouse, which account for 5.2%.