Financial Report

For the first quarter (July through September) of our 2004 Fiscal Year, the Wedge's Sales were $6,493,815. This is down a teeny bit from last quarter (1.5%), but is an increase of 5.8% over last year. One trend that I do see is that while the average transaction per customer is increasing, the customer count is the same as, or slightly below, last year. This means that the growth in sales comes primarily from each customer purchasing a bit more, not from there being additional customers.

Our Cost of Goods Sold (COGS) for the first quarter was 63.8%, and our Gross Margin is 36.2%. This is a lower Gross Margin than last quarter or last year, but not alarmingly so. A 63.8% COGS means that out of every dollar in sales, we have 36.2 cents left over after paying for the food we sell.

This quarter, we spent $1,617,033 on payroll and related costs (taxes, benefits), or 24.9% of sales. This is always our largest expense, after Cost of Goods.

Our Occupancy, or Building Expenses were $169,020, a mere 2.6% 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 & other services, we spent $267,509 or 4.1% of Sales.

Our Administrative, Governance and Promotion expenses - CPA, legal, office supplies, annual meeting, member discounts, newsletter, advertising etc. came to $167, 539 or 2.6% of Sales.

All of the above comes to 9.3% of sales, leaving us with 2% profit (or just 2 cents per dollar in sales) before "other" expenses and income.

We booked $128,000 in margin earned from the warehouse and $28,000 in other income, mostly service fees at the warehouse. We sent $12,500 in to the government for estimated Income Taxes. Our Net Income After Tax for the first quarter of Fiscal Year 2004 was $274,200, or 4.2% of Sales.