KCBS financial report

[midwest_kc]

I thought I had read somewhere they were moving. I am 99.9% sure that the plan is not to lease back the whole building, as they're not using the whole thing now (they have one tenant and the other floor is unused, and was designed to house another tenant).

I know David Qualls also commented on a facebook post that this would leave KCBS debt free and with about $750k cash from the sale. As long as they don't take on debt, they should be in pretty good shape. Assuming they no longer have an appetite to be real estate investors, they should be in good shape as long as the adults remain in charge.

But, yes, the ballot itself isn't very helpful, and there are many questions to be answered.

[midwest_kc]

Also, next year at any competition I would encourage everyone - when you're walking around, socializing on Friday, have some conversations around topics like this. Good, thoughtful discussion around the issues will lead to a better membership, which will trickle up to a better BOD. I am very impressed by this board. They have done a lot to dig us out of the hole we were in, and I am optimistic about the future. However, we know there will always be turnover in the board, and having more quality candidates will help ensure we have a strong board in the future.

[midwest_kc]

Here are his comments. I'm sure he may stop by and expand as he sees fit.

Sent from my SM-N975U using Tapatalk

[airedale]

It sounds like they are doing the best they can in recovering from a really bad business decision. I note that he does not say what they paid for the building four years ago.

[Funtimebbq]

It would be interesting to know who the broker or realtor was/is who earned the commission, typically 6% in CA, on the initial purchase and subsequent sale of the property. I hope it was not a KCBS insider who profited from either transactions.

[midwest_kc]

Originally Posted by airedale

It sounds like they are doing the best they can in recovering from a really bad business decision. I note that he does not say what they paid for the building four years ago.

I found a flyer for it, and the picture on it was taken before the renovations, so it was before they purchased it, but I couldn't find any dates to know if this was when they bought it. They were asking $1.7MM

http://www.colliers.com/-/media/imag...f.pdf?la=en-us

[midwest_kc]

They did quite a bit of renovations, as I recall, too, though, so who knows how much they have in it.

[manmeatbbq]

Originally Posted by midwest_kc

Here are his comments. I'm sure he may stop by and expand as he sees fit.

Sent from my SM-N975U using Tapatalk

What thread was David's comment on? I would like to share it on my feed as it is good information.

[airedale]

Originally Posted by midwest_kc

They did quite a bit of renovations, as I recall, too, though, so who knows how much they have in it.

Well, sunk cost is really irrelevant to their decision anyway. Apparently they will clear $750K and presumably cut their facilities cost by keeping only the one floor or moving to cheaper digs. All of that buys time for the axe-swinging that no one wants to do.

According to their 2017 tax return "occupancy" ran $330K, 22% of revenue, so if they could cut half of that it would help cut the run rate. Fringes and payroll taxes ($80K) were 41% of salaries. That is a very big number and another candidate for the axe. I would look for at least $20K there. Office expenses ($100K) were 7% of gross revenue. Probably a few sins buried in there. Investments $350K at the end of 2017; that money is probably gone, used to fund the losses.

(Incidentally, anyone can go to guidestar.org and register, then get access to tax returns from any nonprofit in the US (though not churches). Usually there is a year lag, so 2017 is all that is available for kcbs. I have been registered for several years and nothing bad/no spam has happened.)

[midwest_kc]

Originally Posted by manmeatbbq

What thread was David's comment on? I would like to share it on my feed as it is good information.

It was in the official judges group. I tagged you in it.

[sincitydisciple01]

Originally Posted by midwest_kc

I found a flyer for it, and the picture on it was taken before the renovations, so it was before they purchased it, but I couldn't find any dates to know if this was when they bought it. They were asking $1.7MM

http://www.colliers.com/-/media/imag...f.pdf?la=en-us

Yep. That’s the Leiter building. Assuming it was in the same shape at the time of purchase, as it was when we moved out, it would be a total blank slate for the next owner. But that’s also the challenge because the new owner then would be sinking substantial resources into remodeling a cube farm, warehouse and loading dock.

[Burnt at Both Endz]

Originally Posted by midwest_kc

They did quite a bit of renovations, as I recall, too, though, so who knows how much they have in it.

While my memory is getting bad with age, I remember it was just under 500K?

[Jorge]

Originally Posted by sincitydisciple01

Yep. That’s the Leiter building. Assuming it was in the same shape at the time of purchase, as it was when we moved out, it would be a total blank slate for the next owner. But that’s also the challenge because the new owner then would be sinking substantial resources into remodeling a cube farm, warehouse and loading dock.

Any idea who was running a small server farm? I'd been told that there were still servers running when KCBS moved in, and the listing appears to confirm it was used for that or something similar at one time.

[sincitydisciple01]

Originally Posted by Jorge

Any idea who was running a small server farm? I'd been told that there were still servers running when KCBS moved in, and the listing appears to confirm it was used for that or something similar at one time.

DST Output was responsible for print and digital output for financial services, utilities s and assorted credit companies. Statements for your 401k, auto loans, utility bills etc. In addition to physical manufacturing (print, hard copies) that took place in the print facility around the block, we also did presentment to the web and other portable media. CD’s, DVD’s even microfiche. For a few years, most of the ePresentment was managed out of that building as well as other types of soft copy production. But ALL data and application hardware was offsite in a secure location that made Fort Knox look like a 7-11.

There was a pretty impressive operation on the ground floor for the portable media stuff. The microfiche machine was in the basement (along with the best men’s room in the entire building).

Second/top floor was the cube farm. A few offices and conference rooms with GREAT views of downtown KC. I think there was also a server room on that floor, but it had been repurposed as a conf room.

Urban legend was that DSTO had been trying to move out of there for a few years. BUT... the microfiche machine was extremely fragile (dying form of media) and was so old, they didn’t have anyone around that would be able to reassemble in a new location.

Can’t confirm if there were still servers running, but as the schematics point out, the building was definitely set up to accommodate.

Ironically, we got our first big smoker (Bandera knockoff) from a super nice guy I used to work with in that building.

[rorkin]

THey are talking about $750 K recovery.
I dont think that is profit even without renovation costs.
I am sure they had to put down substantial down money on a 2mil loan