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-   -   KCBS financial report (https://www.bbq-brethren.com/forum/showthread.php?t=277159)

Pappy Q 11-25-2019 07:10 PM

KCBS financial report
 
If you are a KCBS member, I encourage you to go to their website and read the recently published Year End Financial Report as well as respond to them with questions and comments.

thunderalley3 11-26-2019 07:15 AM

It was only a mere $439,193.11 loss. I am sure there have been many meetings to determine how to cut these losses, from the sight of the membership.


Obviously there are serious issues at hand, does anyone know if there are more detailed reports available that actually break down salaries, expenses paid and to whom?


Obviously there needs to be change

Jorge 11-26-2019 09:44 AM

Quote:

Originally Posted by thunderalley3 (Post 4248379)
It was only a mere $439,193.11 loss. I am sure there have been many meetings to determine how to cut these losses, from the sight of the membership.


Obviously there are serious issues at hand, does anyone know if there are more detailed reports available that actually break down salaries, expenses paid and to whom?


Obviously there needs to be change

The 990s are available. What follows isn't directed at you, but is general info for those that aren't already aware of it.

If you've looked at the 990s from previous years the purchase of the new building stands out. If you read the corresponding minutes of board meetings you can see where some of that $$ was going, A/C repairs, other repairs.

If you go back to the loss of the Sam's Club series you'll see another cause for the change in financials. I'm not going to get into the finger pointing surrounding who/what was responsible because I wasn't in a position to know what really happened.

Membership is dropping. I think some of it is due to higher costs to compete, frustration with the organization, and natural attrition after a spike in popularity due to TV exposure. I'm sure there are other causes as well.

The financials disclosed are probably pretty sobering to some. To be honest, I expected them to be worse.

For those that are relatively new to KCBS, ask those that you know that have been around 10+ years if they can remember a disclosure like this ever being made. I'll give credit to the CEO and the board for doing it. They knew what the perception of the numbers would be when they did it, and what they'd have to deal with after the fact.

Happy Thanksgiving to all!

midwest_kc 11-26-2019 10:08 AM

Knowing nothing else other than this report:

The expenses don't seem out of whack. The IT/Website jumps out, but if that includes a contract for IT Services, it's fine.

KCBS has to bump up those revenue numbers. I know Sam's was a big loss, but it's been long enough that they should have been able to replace that income. Perhaps it says more about the sport of BBQ, but I believe it says that the previous boards didn't put in the effort to go get it.

Personally, I hope that this board and future boards work more on bringing in money, vs pinching every penny. There has to be balance, but it's better to achieve that through higher revenues than lower expenses, imo.

Pappy Q 11-26-2019 10:56 AM

Quote:

Originally Posted by Jorge (Post 4248439)
The 990s are available. What follows isn't directed at you, but is general info for those that aren't already aware of it.

If you've looked at the 990s from previous years the purchase of the new building stands out. If you read the corresponding minutes of board meetings you can see where some of that $$ was going, A/C repairs, other repairs.

If you go back to the loss of the Sam's Club series you'll see another cause for the change in financials. I'm not going to get into the finger pointing surrounding who/what was responsible because I wasn't in a position to know what really happened.

Membership is dropping. I think some of it is due to higher costs to compete, frustration with the organization, and natural attrition after a spike in popularity due to TV exposure. I'm sure there are other causes as well.

The financials disclosed are probably pretty sobering to some. To be honest, I expected them to be worse.

For those that are relatively new to KCBS, ask those that you know that have been around 10+ years if they can remember a disclosure like this ever being made. I'll give credit to the CEO and the board for doing it. They knew what the perception of the numbers would be when they did it, and what they'd have to deal with after the fact.

Happy Thanksgiving to all!

I commend the CEO and BOD for their disclosure. What stands out to me is the Marketing Revenue vs Marketing Expense. Would especially like to know what "Sponsorship Commissions" are and who get them. Also, GAC expenses appear very high, would like to know details of those.

ModelMaker 11-27-2019 08:05 AM

I contacted our newly seated BOD President early this year and asked her why there was no way for the membership to see the financial report the BOD votes to accept each month and her answer was that she would look into it.
Later on (months) it was decided that quarterly reports would made available.
Good on her and the present group.
Ed

Burnt at Both Endz 11-27-2019 08:47 AM

Just got an email from KCBS with updates and the CEO's vision on a forward path.

I'm delighted that the board is starting to be more transparent, the previous board members have always stated that they would, we now have a board and CEO delivering on what was promised.....hell yes!

manmeatbbq 11-27-2019 11:51 AM

It's good to see the marketing coming back in-house. Not sure that we as the membership saw any value in the outsourced marketing. Also, the potential sale of the building will help quite a bit. KCBS seems to be actually taking steps in a positive strategic direction. Of course, these steps aren't going to change the many people's view immediately, but they definitely encourage people that they are finally moving in the direction for the benefit of membership.

Jorge 11-27-2019 01:01 PM

What I'm about to say only applies to the current board, and is not any sort of commentary on past boards.

With everything on their plate when they were seated in Feb. this is the most productive board that I can remember during the 10+ years I've been involved with KCBS and competition BBQ.

Whether it was out of necessity, or the right people, in the right place, at the right time they've made positive progress. Getting out from under the financial burden of the current building will be huge. If you go back and look at the 990s you will understand what I mean. With the current CEO having such a strong background in marketing, as well as her MBA bringing that work in house is a no brainer and props go to the board or whoever was able to get her to take the job.

Tune out, if you don't want the political carp I'm about to inject.





For the first time in years, this may be the election where I won't be voting for change. I think the current board is moving in the right direction. I've been there, and given that experience I'm impressed with what they've done and the time in which it's been accomplished. I'm going to be looking at candidates that are like minded, and prioritize continuing the work the current board has started. If you are involved with KCBS please take the time to vote! I don't care who you vote for, or how many candidates you vote for. Just vote, and encourage others to do the same! Stay involved as time allows. Work has been eating my lunch the last six months and I haven't kept up with the KCBS Involvement thread I started (poster child moment, and yes a Milk carton counts in my case!). If you like what the board has done, let them know. If you don't, let them know. As members, we get the representation that we deserve based on how accountable we hold ourselves and the organization.

sincitydisciple01 11-29-2019 08:05 PM

I let my membership go a few years ago, but still follow events and such. I can’t get to the financial report, but I do have a question... THEY OWN THE BUILDING ON MADISON IN KCMO??? That makes no sense to me. I used to work in that building until DST Output/DST Realty sold it in late 2000’s. The remodel looks great from the outside (haven’t been inside) and it probably wasn’t cheap. Maybe I’m underestimating how big of an operation they have, but it just seems way too big. They were probably losing money on it the day after they moved in.

midwest_kc 12-02-2019 11:48 AM

Quote:

Originally Posted by sincitydisciple01 (Post 4249527)
I let my membership go a few years ago, but still follow events and such. I canít get to the financial report, but I do have a question... THEY OWN THE BUILDING ON MADISON IN KCMO??? That makes no sense to me. I used to work in that building until DST Output/DST Realty sold it in late 2000ís. The remodel looks great from the outside (havenít been inside) and it probably wasnít cheap. Maybe Iím underestimating how big of an operation they have, but it just seems way too big. They were probably losing money on it the day after they moved in.

They were. It was a silly decision.

Pickin' Porkers 12-03-2019 10:58 AM

Further breakdown is needed
 
KCBS definitely cannot continue on the current financial path. In order to better understand expenses, a more detailed analysis is needed in order for me to understand any further cuts in spending, but, this information is appreciated.

airedale 12-03-2019 01:44 PM

Quote:

Originally Posted by midwest_kc (Post 4248444)
... KCBS has to bump up those revenue numbers. ...

During a career in management and executive management I can't tell you how many times I have heard "more revenue"proposed as a solution to a bottom line problem. It's attractive because hypothetical revenue allows managers to postpone cost problems or pretend that they don't have cost problems at all.

Increased revenue, if it comes at all, is always less than hypothesized and comes later than expected.

This kind of situation is always, at the bottom, a cost problem. If the new CEO doesn't immediately start cutting with an axe, the organization may not survive.

One-time cash, like from selling assets, buys a little time for axe-swinging but in the end it doesn't fix anything.

midwest_kc 12-03-2019 03:19 PM

There is no doubt that they are spending more than they can currently afford. That is clear.

Certainly, there is also less variation in cutting costs (you can think a $1MM deal is coming through, but it ends up being $750k - cutting $1MM in spending is cutting a million dollars). Higher revenues also frequently come with higher overhead.

However, an organization of this size and global reach should have significantly more than $1.5 million in revenue. They are going to cut expenses through the sale of the building, so they are already starting on that. I believe the GAC is going to be cut as well. It's too bad, as I think that if it was handled correctly it could be a big publicity driver for KCBS, and help feed more members into the scene. I also am going to guess that no one can pinpoint how much it has helped KCBS, and therefore it will be cut.

Those cuts alone could free up $500k, which immediately puts them cashflow positive. Even if it doesn't get there, say it's just 400k, they're close. However, if they're going to grow, they need more revenue to do so. That will be a constant issue until someone addresses it.

I guess at the end of the day, Emily and the BOD need to decide - do we seek out growth, or are we happy with where we are? That will go a long way to deciding the long term strategy.

airedale 12-03-2019 03:45 PM

Quote:

Originally Posted by midwest_kc (Post 4250543)
... They are going to cut expenses through the sale of the building, so they are already starting on that. ...

I don't think we disagree, but a comment on the building sale: I don't know about KCBS specifically, but selling doesn't usually cut expenses unless the seller occupies significantly less space on a partial leaseback or the seller moves to cheaper quarters.

A quick look at the kcbs website didn't reveal plans for either, though they may be in place. The building sale ballot is almost useless, providing zero information to members about appraised price, leaseback plans, net proceeds after paying fees, any mortgage, etc. Really amateur hour.

But whatever cash they get will give them some breathing room. Hopefully they don't fritter away the respite.


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