Annual Report: 2021 Fiscal Year Financial Update

by Jason Mallon

Chief Financial Officer

I was interacting with one of Eton’s community members recently, and they nonchalantly mentioned that our society has been dealing with COVID-19 now for about two years. That casual comment hit me like a ton of bricks and really made me reflect. Our society, to put it mildly, is living in “interesting” times, probably one of the most polarizing in the last forty years. I am thankful that my oldest child has had Eton to help shield him from that uncertainty while at the same time building the foundation to help prepare him to deal with this complex and nuanced world. I will be forever grateful for the decisions made by Eton’s Management and the Board. With any organization, a significant component of strategy involves finances, including financial success and sustainability. The strategic financial decisions made previously has had a direct impact on Eton during the COVID-19 hurricane. These decisions and the school’s ability to pivot have put the school in the best position financially since I have been at the school. In last year’s annual report, I mentioned how the school put preventive measures in place to ensure our financial sustainability (operating reserve and line of credit). The school did not tap into either to help sustain operations during the 2020–21 school year and will not need to for the 2021–2022 school year. We did, however, take the next steps in building upon our financial success by fortifying Eton’s cash position. We did this by refinancing our debt at historically low interest rates, which allows us the ability to address opportunities in the marketplace if

opportunities should arise. When looking at our overall financial strategy, it is also important to know how the school has done in the short term.

Even during the pandemic, Eton was firing on all cylinders. We had another strong year of enrollment and demand, which led to a net income of $280,485 and positive cash flows from operations of ~$1M. The school is currently at capacity for the 2021-2022 school year, along with an outstanding wait pool full of families that want to join our community. This didn’t happen by accident. It happened because of the dedication of Eton faculty and staff. Everyone has done a tremendous job of collaborating across program and operational platforms to ensure our community continues to thrive. One of our main tenets is putting the majority of our resources towards delivering an exceptional education to the students, resulting in 77% of each dollar going towards our program. Below is a further breakdown of the financial operations for the year. ❧