Financial Report

The dust has settled from the third quarter of this fiscal year (January through March) and the Wedge's Sales were $6,744,187. This is an increase of 8.3% over last year. This quarter, all the increase is attributable to sales from the Warehouse.

Our Gross Margin for the third quarter was 36.2%. That means that for every dollar we made in sales we paid our suppliers just under 64 cents. From this remaining 36 cents, we pay all other expenses of running the business.

As always, our largest expense is Payroll. This quarter we spent 24.9% of sales, or $1,677,103 on wages, benefits, taxes, and work comp insurance. This is a pretty high percentage, and it is intentional. We pay good wages compared to other co-ops and grocery stores, and we have a great benefit package. Benefits include health insurance, dental insurance, long term disability insurance, 401K with match, profit sharing, vacation and personal leave, parenting leave, community service hours, and of course a discount on purchases. As an owner of this business, you should be proud.

Our Occupancy Expenses were $176,538, and 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 and other services, we spent $273,842 or 4% of Sales.

Our Administrative, Governance and Promotion expenses - CPA, legal, office supplies, annual meeting, member discounts, newsletter, advertising etc. came to $200,821 or 3% of Sales. So far this year, members have used $232,530 in 10% electronic coupon discounts, or 1.2% of annual sales.

Overall, our expenses came to 34.5% of sales this quarter. This is a little higher than last year, by .4% of sales, or $203,953.

We booked $144,798 in margin earned from the warehouse and $36,485 in other income, which includes almost $11,000 in interest earned. We sent $45,000 to the government for estimated Income Taxes. Our Net Income After Tax for the third quarter of fiscal year 2004 was $250,418, or 3.7% of Sales.