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flyer enterprises annual report 2011–2012


annual revenue of

$1.2 million

one

of the fastest growing

30%

Seniors

15%

Freshmen

in the country

Our program is comparable to Harvard, Stanford, Princeton, Georgetown & Loyola

39 majors Dietetics Theatre Entrepreneurship Engineering Marketing Computer Science Psychology Graphic Design

&

402

170

student-run businesses

active alumni

more

founded in

1990

employees

25%

Juniors

30%

Sophomores

9 divisions


10

letter from our chief executive officer

32 FE IT group

14

coffee divisions

34

letter from the president of corporate development

18

dining services joint ventures

36

our teams

22

retail division

38

letter from our chief financial officer

26

culinary divisions

40

financial statements

42

locations map

30 FE storage


let us introduce ourselves Flyer Enterprises is one of the largest and most established student-run businesses in the nation. At the University of Dayton, Flyer Enterprises employs over 170 undergraduate and graduate students throughout nine different divisions—all of which are experiencing stellar and steady growth. Flyer Enterprises has come a long way since our start in 1990, now generating annual revenues of $1.2 million dollars and still growing! With our business comparable to programs at Harvard, Stanford, Georgetown, Princeton and Loyola, we strive to give our student employees, whether a sales associate or the CEO, unparalleled, hands-on learning opportunities. At FE, we live by four beliefs: Ethics, Accountability, Passion and Purpose. We strive for every employee to incorporate these beliefs into the foundation of their work at Flyer Enterprises. Our employees consist of only the best leaders and team players, all willing to work with passion to make Flyer Enterprises the best it can be.

8 | Flyer Enterprises

2011–2012 annual report | 9


Divisional Presidents of Coffee, Culinary, DSJV & Retail

Corporate Accountants

President of Business Development

Database Director

General Manager of Storage

Web Director

Director of Marketing Communications

Operations Director

Corporate Graphic Designer

President of Corporate Development

The heart of Flyer Enterprises’ success lies within our student employees. We consist of the top students at the University of Dayton working together in a variety of skill sets ranging from financial management, marketing, graphic design, human resources, information technologies and many more. We are committed to helping one another gain valuable work experience that will ultimately allow us to find our purpose in life. We believe that no dream is too far to be reached as long as we stay committed and fully engaged in our work and never stop being team players. Our executives and presidents are able to act as mentors to other employees and even each other by helping to develop skills and establish ultimate success within the company. Our team is unique in that while each of our nine executives have their own focus, they also have multiple roles throughout many divisions of the company and collaborate frequently with many other FE employees.

General Managers

Directors of Marketing Human Resources

Financial Managers

how we operate

While our CEO sets the overall vision the company strives to achieve, he ultimately leads each of the nine executives, ensuring each of their employees are being challenged through a hands-on learning experience and has the ability to move up the corporate ladder.

Our nine executives make it a priority to work personally with all their divisional employees. For example, our CFO is a leader to the financial managers of our divisions, giving them skills in accounting activity and financial strategies. Our CIO also works with a small staff, giving them the tools they need to improve the operational efficiency of FE. But it’s not only the CFO and CIO who act as mentors. The President of Business Development supervises all divisional and corporate directors of marketing while even working with new venture coordinators to continue the growth of FE. And, our President of Corporate Development leads human resource managers and social coordinators in order to reach out to the Dayton community. Finally, each divisional president (Coffee, Culinary, Dining Services Joint Ventures and Retail) works with their managers and employees to operate the daily duties and advance the long-term vision of FE. By offering students the opportunity to apply classroom lessons on business, communication and leadership to prac­tical daily work experience, Flyer Enterprises serves the University community while acting as a learning laboratory for tomorrow’s top professionals.

Sales Associates

2011–2012 annual report | 11


letter from the

chief executive officer

The 2011–2012 fiscal year was the 11th year the Flyer Enterprises’ corporate umbrella had been utilized; however that might have been the only thing that seemed “normal.” Over the five years I’ve been a part of Flyer Enterprises, I’ve seen it grow immensely in both a business sense as well as in the quality of experience our students receive from our pro­gram. In comparison to the other years I’ve been involved in the program, this year reinforced FE’s business foundation, as well as strengthened our relationships with business part­­ners, University administrators and University alumni. The year started with a re-emphasis on the executive positions. Each executive was reminded that they have full control over their divisions and they should be seen as their own chief executive officer. To no surprise, they, along with their man­­agement teams, responded by posting increased sales and profits at many of the divisions, which also led to record profits for FE at the year’s end. The bond that was created by the executive and management teams proved to be necessary as the year progressed and many challenges came about. The first of these challenges was the notification that the monetary support from the School of Business Administration’s Office of the Dean would be $35,000 less than the previous year. The announcement pushed our teams to implement stricter budgets and reduce wastes, all while increasing sales. Although we successfully achieved this challenge, it was easier said than done. The second and third challenges came when the University changed their accounting and human resource systems, pushing FE to make changes as well. We quickly learned that the way things had been done in the past regarding human resource managers interviewing, hiring, paying, and overseeing employees would not be possible anymore. Furthermore, 12 | Flyer Enterprises

the new accounting system gave us trouble for months, as we remained determined to create our monthly financial reports in a timely manner. We soon found that the University’s monthly financial reporting was not a practical tool that could be used to run our businesses on a monthly basis, as we would not be able to compile completed reports until about a month after the reporting month closed. Ultimately, this led us to take a proactive approach and utilize our internal accounting practices and our internal sales reporting system and then balance our numbers to the University numbers once they were released. The changing practices led to an increased emphasis on documentation to ensure future FE employees did not have to learn the new, more complex systems over again. The end result was new transition documents that could be used to lookup step-by-step instructions for any business process or activity a future executive or manager could find themselves facing. I am also pleased to report that these new documents helped FE through one of its smoothest transition periods yet. The 2011–2012 fiscal year also marked the first full year with the FE Information Technology group’s (FE IT) Management Development Program (MDP), as well as the new President of Business Development role. Both proved that they could be monumental in ensuring further development of the use of technology at our current divisions, as well as developing new businesses ideas going forward. The next five years are setting up to be the most exciting in FE’s history as the company has potential for explosive future growth. One of the factors affecting this growth will be FE Storage. Due to a successful implementation of the pilot program this spring, we decided to continue forward with further development of services offered.

It was important to each divisional president to work on further developing the alumni association, specifically for­malizing the 10th Annual Flyer Enterprises’ Alumni Association Weekend held on campus. This year’s weekend set a record with over 30 alumni in attendance and over 60 student employees participating in the weekend. Programming for the weekend included a state of the firm presentation, an alumni panel discussion, and a professional networking event that eventually led to several students receiving interviews for internships and jobs; a trend we hope to continue! In closing, I would like to thank the students, faculty, staff, University of Dayton administrators and alumni that continue to support Flyer Enterprises. This program has come a long way since its beginning and has been one of the most enjoyable organizations I have had the pleasure to be a part of. I would also like to extend a special thank you to our student employees, board of directors, and our advisors, Ray Lane and Janet Leonard. With your guidance and hard work, I am confident that the accomplishments Flyer Enterprises has endured the past several years will continue for the foreseeable future.

FE Love Forever,

Jeffrey R. Firestone Chief Executive Officer

2011–2012 annual report | 13


divisions


coffee divisions


coffee divisions

During the 2011–2012 fiscal year, the Blend and the Blend Express faced difficult challenges and also saw rewarding successes. We looked to provide new opportunities for involvement to the employees and also become more interactive and involved with customers. Our main goal, however, was to tighten internal operations and run more efficient businesses, which the management team worked hard to achieve. A continual issue facing the divisions was the rising cost of coffee, which increased 16.4% in the last year. In order to combat this, prices and profit margins were reevaluated and restructured to account for this jump while still providing fair value and competitive pricing to our customers. A continual focus on quality allowed us to maintain customer loyalty and sales were up over 7% at the Blend and 8% at the Blend Express (compared to the 2010–2011 fiscal year).

Next to our coffee, our specialty items are a huge hit with customers. All of our fresh baked goods are delivered daily from Dayton’s local bakery, Ele’ Cake Co., and made with the highest quality ingredients. Our smoothies are also the perfect mix of real fruit, juice, green tea extracts, and Vitamin C. They’re a great and tasty option for the healthconscious student!

Additionally, we turned the focus inward on our processes and looked for ways to improve operations. Thanks to a close working relationship between the product buyers and financial managers, the buying and receiving process was streamlined. The result was a drastic reduction in waste, and product buyers with a stronger focus on inventory management. Compounding the increase in sales with the cost controlling measures put in place, the Blend’s operating income saw a 113% increase versus last year, and there was a whopping 138% increase for the Blend Express. Looking back, we are very proud of the progress that has been made this year. I am confident the changes and improvements will help ensure the continued success of the businesses in the future.

At The Blend and The Blend Express, we love working for a cause. We set up donation jars at both coffee divisions and each month we choose an organization to sponsor and collect spare change for. We have donated to many different organizations throughout the year, including Hydrate the World, an organization dedicated to providing safe drinking water resources to those in dire need, founded by FE alum, Marty Alegnani ‘11.

As a charity initiative with Boston Stoker, we were also able to provide “Heart to Honduras Roast” to our patrons. Heart to Honduras is an organization serving the needy in Honduras that provides food, shelter, clothing, and health treatment—and they’ve partnered with Boston Stoker to develop a special roast to help give back to communities where coffee is grown and harvested. The Blend and the Blend Express have joined in this initiative, donating $1 for every one pound sold to the cause.

Nicole Swidarski President of Coffee

18 | Flyer Enterprises

2011–2012 annual report | 19


dining services joint ventures


dining services joint ventures

The fiscal year of 2011–2012 was an exciting time with many changes for each of the three Dining Services Joint Ventures, and as a result, these divi­sions experienced progress and also overcame various challenges throughout the year. Furthermore, the relationship with Dining Services and FE has continued to improve and develop. We are now in our second year of working with the Associate Director of Dining Services, Kathy Browning, making the relationship between FE and Dining Services stronger than ever.

For the fifth year, the Chill hosted its annual 3-on-3 basketball tournament. With over 90 participants and a day filled with fun, competitive play, and smoothies, the event turned out to be quite a success! In total, we were able to donate $400 to Relay for Life, an American Cancer Society subsidiary.

This year marked a significant shift in the marketing approach of The Chill. The Director of Marketing, Monica Arcaro, has truly taken the marketing strategy to new heights and has begun many promotions that have strengthened our collaboration with the RecPlex. We have seen these promotions lead to an increase of revenue by 4.51% as compared to last year. In terms of operations, a new ice machine has been installed which allows for a more fluid production process for our smoothies. The Galley experimented with tweaks to the product line which included the launch of churros and the Galley Gantuan. These actions paired with innovative marketing approaches have allowed the Galley to increase sales by $7,587.79 from last year. In terms of human resources, the Galley did a phenomenal job at motivating and encouraging participation from the employees, as seen in the increase in involvement in assistant positions. This has translated to a large number of new managers coming from within the Galley’s ranks for the upcoming fiscal year.

Stuart’s Landing is very unique in that being located in one of UD’s freshman dorms, we cater our products directly to its residents. In addition to offering a wide variety of convenient food products, we hosted our first annual volleyball tournament this year as an opportunity for freshman to mingle. With over 28 participating teams, the event turned out to be better than expected!

Stuart’s Landing continued to lead Flyer Enterprises’ divisions in terms of revenue, with an increase of $2,371.53 relative to last year. The increase in revenue was due to additional analysis on product movement conducted by the GM, Addison Meyers, which allowed Stu’s to be much more responsive to the demands of our customers. This emphasis on product mix paired with strong staffing practices allowed Stu’s to experience an increase of $475 in net income.

James Hankenhof President of Dining Services Joint Ventures

As part of our Galley Gives Back campaign this year, we sold T-shirts in order to raise money for St. Jude’s Hospital. We raised over $400!

The Galley Gantuan is the newest addition to the Galley product line. Consisting of ten scoops of ice cream, five toppings, and whipped cream, this sundae is not fit for the faint of heart. Many students tackle this heaping of ice cream as a team. Anyone able to complete the challenge gets a picture on the Galley Wall of Fame!

At The Chill, many of our customers stop by after a workout. By already having a specific clientele, we are able to target our products to their needs. We offer a variety of protein bars and drinks, healthy smoothies, fruit, and many different items that are perfect for the health-conscious individual.


retail division


retail division

During the 2011–2012 fiscal year, Flyer Spirit worked to gain more awareness in the community and with campus organizations. Major community outreach efforts included participation in the Rubicon Park Business Association; a continued relationship with WHIO; advertising in Reach Magazine during October, November and December; and an outreach to local high schools. A continued relationship with major campus organizations such as Student Government Association, Housing and Residence Life and Student Life and Kennedy Union helped Flyer Spirit see over $95,000 in custom clothing orders—accounting for almost one third of revenues for the year. Other growing campus relationships included Club Sports, Intramural Sports, and Women’s Volleyball. Flyer Spirit also made a connection with Red Scare for the first time, which allowed Flyer Spirit to sell Red Scare T-shirts to the Dayton community. A customer appreciation program was implemented which offered a special discount day to campus organizations including Flyer Enterprises employees and Greek Life.

Flyer Spirit loves working with UD alumni, and for the second year, was able to be an active participant at the University’s Reunion Weekend held in June. Our employees organized and executed the Flyer Fun Run 5K and the Alumni Golf Outing, while also working in the store making outstanding sales of $6,209.17 for the weekend!

Flyer Spirit made major strides towards increasing their pres­ence online. The addition of a second graphic designer helped get a website makeover project started, which will continue to be a work in progress as the store rolls into the next fiscal year. Flyer Spirit’s presence on social media sites also increased dramatically with over 1,000 followers on both Facebook and Twitter. The progress made this year is only the start for great things to come for Flyer Spirit. Employees are developing to become the future leaders of Flyer Spirit and Flyer Enterprises, and the relationship with the UD Bookstore continues to grow and move the store on the path to success.

Kerri Roper President of Retail

26 | Flyer Enterprises

Flyer Spirit’s custom clothing orders account for 24.38% of all sales. We let our customer’s imagination run wild with endless color combinations for T-shirts, sweatshirts, pinnies and more! Whether it’s a group of friends, Flyer fans, or sorority and fraternity members, Flyer Spirit’s custom clothing has been a huge success, all while building community and enhancing the UD experience. 2011–2012 annual report | 27


culinary divisions


culinary divisions

ArtStreet Café has seen amazing success this past year. The full-year record profit of $14,000 was broken when we reached a net income of $15,000 by December. Furthermore, the first $3,000 sales day was achieved on March 17, 2012. Because of achievements like these, the Café increased profits by 304%, compared to the 2010–2011 year. Our success was accomplished through the General Manager, Michael Montag, and his ability to decrease wait time through a lean streamlined ordering process and lower waste through increased standardization. He also managed a greater overall inventory control process. These efforts, combined with those of our Financial Manager, Matt Borchers, lowered overall expenses by 20% from the previous year. Simultaneously, sales increased by 18.9% from the previous year through marketing campaigns conducted by our Director of Marketing, Sarah Hemler. Facebook activity increased by 2,058%, a standardized branding was created, and a destination marketing approach with campus organizations made the Café one of the most desirable locations to hold events. The Events Coordinator, Annie Boone, helped events to grow such as the first annual Rocktoberfest, an expansion of the Thursday Night Live (TNL) series, the Spring Benefit Concert, and the TNL CD Release Party. Because of this year’s outstanding success, ArtStreet has now moved into the black for its entire operating history.

At FE Catering (FEC), we created our own operational location and inventory space inside ArtStreet Café while hiring a staff of employees who work solely for FEC. This year, we continued on our path of increasing revenue from year to year with an annual increase of 15% from last year. This increase stems from a growth of events catered for the academic departments, as well as a greater emphasis on deliverable delights. We also started a wrap partnership with The CHILL to sell a healthier version of wraps currently sold at the coffee divisions.

ArtStreet Café was excited to participate in the first annual Rocktoberfest, an outdoor music, art and activism festival, held on campus. Participants were especially entertained by the Café’s Notorious B.I.G. Sandwich eating contest in which contestants compete to finish a massive panini with all the works!

Now that FEC has set a solid internal foundation, we can begin to expand externally towards new markets. In the upcoming future, FEC will be implementing a new website allowing customers to order daily lunch and dinner options across campus.

Sean Holdmeyer President of Culinary Divisions

ArtStreet Café is so much more than just a place to eat—it’s a place of community and entertainment! One of our favorite weekly events includes Thursday Night Live in which musically talented students take the stage and perform for their friends and biggest fans. We also host weekly takeovers, donating a portion of profits to different organizations, clubs, sororities, and fraternities on campus. This year we outdid ourselves in community outreach, donating $1,092 in total!

Many clubs and organizations on campus also rely on us to host some of their major events of the year. This year FE Catering worked 82 events including the Walk the Talk events, where students discuss ethics and religion in commerce and the workplace, campus ministry events, residence life events and more!

30 | Flyer Enterprises

2011–2012 annual report | 31


FE storage

The 2011–2012 year marked an exciting time for Flyer Enterprises as FE Storage came into full operation from the Pilot Program launched in 2010–2011. The Pilot Program provided the company with a great learning experience, providing services for 53 customers during Summer 2011. This year, the staff has emphasized marketing the division to campus programs such as study abroad, co-op, and international students. This niche market has provided FE Storage with a wonderful opportunity to work in conjunction with the University and allow students traveling to or from different countries to store their belongings with ease. FE Storage hopes to double their customer base for this upcoming year by attracting more students residing out of state.

Only in its second year, FE Storage has proven to be a success! By offering returning customers a discount and exploring new opportunities with international students and study abroad participants, our sales increased by 8.1%.

Another exciting development within FE Storage is the option to store items over the course of a semester. FE Storage was able to accommodate a limited number of customers for the “semester storage option” but projects that the option will become the most popular among undergraduate students. Moving forward, FE Storage looks to add overall success to Flyer Enterprises’ bottom line as the year continues while providing a unique service to students who attend the University. We will continue to seek new market opportunities while adapting to storage needs for those who utilize our service.

Jeff Haberman President of Business Development

32 | Flyer Enterprises

2011–2012 annual report | 33


FE IT group

At the beginning of the 2011–2012 school year, the Flyer Enterprises’ Information Technology Group (FE IT) realized two potentially threatening scenarios for Flyer Enterprises’ server environment and the sustainability of FE IT. Since the creation of the group in 2008, FE IT has utilized the same system hardware and architecture which raised concerns of potential system failure. With either scenario having the potential to compromise Flyer Enterprises’ ability to successfully conduct business, the FE IT Group began to refocus its approach and identified a common theme of sustainability. Our goal for the 2011–2012 fiscal year was two-fold; successfully implement a Management Development Program aimed towards training current FE IT successors, and upgrade FE IT’s server environment to ensure stability of Flyer Enterprises’ critical business functions. Through collaborative efforts with University of Dayton Information Technology (UDIT), FE IT successfully accomplished this goal by beginning the migration of the current server to a more stable and secure, virtual environment within UDIT’s data center. Ultimately, with the implementation plan of new virtual servers paired with the successful training and integration of five Management Development Program participants, the FE IT Group is primed and ready to meet the future needs of a constantly growing and changing organization.

Steven Group Chief Information Officer

2011–2012 annual report | 35


letter from the

president of corporate development

As Flyer Enterprises continues to develop and prosper, so do the leaders that form its backbone. Throughout the 2011–2012 fiscal year, human resources and marketing communications initiatives were implemented to further strengthen FE. This was accomplished through professional development opportunities, effective and efficient human resources procedures, and promoting and communicating our company, as well as the overall Flyer Enterprises experience. Compared to the previous fiscal year, the number of applications for entry-level positions more than doubled. Through introducing a new approach to hiring and training, FE brought in employees who were already knowledgeable about FE, showed a positive and dedicated work ethic, and demonstrated leadership. Furthermore, the feedback structure was reformatted to foster interaction, empowering employees to provide ideas for FE. Additionally, the Leadership Development Program II (LDP II) was reintroduced. LDP II is a sequel course to the Leadership Development Program taught by the CEO, but is only available to FE employees. The course involves topics such as strategy, the application of leadership styles, and analyzing real-world case studies. Through the expansion of opportunities for experiential education, the employees’ desire to learn, and the accomplishments of FE, the 2011–2012 fiscal year was one of developing leaders and positioning them for continued success and growth.

Megan Arko President of Corporate Development

36 | Flyer Enterprises

2011–2012 annual report | 37


our teams

executive team

management teams

Jeffrey Firestone

Chief Executive Officer

coffee divisions

Peter West

Chief Financial Officer

Megan Scully

General Manager of The Blend

Steven Group

Chief Information Officer

Mark Becker

Financial Manager of The Blend

Megan Arko

President of Corporate Development

Rachel Nickolas

General Manager of The Blend Express

Jeff Haberman

President of Business Development

Molly Hobbs

Financial Manager of The Blend Express

Nicole Swidarski

President of Coffee Divisions

Jamie St Clair

Director of Human Resources

James Hankenhof

President of Dining Services Joint Ventures

Danielle Phillips

Director of Marketing

Kerri Roper

President of Retail

Sean Holdmeyer

President of Culinary Divisions

board of directors

Cameron Legan

General Manager of the Galley

Courtney Monaco

Director of Human Resources of the Galley

Andrea Erikson

Director of Marketing of the Galley

Kevin Schrick

General Manager of the Chill Director of Human Resources of the Chill

Raymond Lane

Chairman of the Board, Executive in Residence

Dr. Joseph Castellano

Dean of the School of Business Administration

William Fischer

Associate Vice President for Student Development

Madeline Fox

Dr. Deborah Bickford

Associate Provost for Academic Affairs and Learning Initiatives

Monica Arcaro

Director of Marketing of the Chill

Addison Meyers

General Manager of Stuart’s Landing

Janet Leonard

Senior Academic Advisor

Samantha Costa

Director of Human Resources of Stuart’s Landing

Ken Soucy

Director of Purchasing and Business Services

Caitlin Wajahn

Director of Marketing of Stuart’s Landing

Paula Smith

Director of Dining Services

Robert Chelle

Director of Crotty Center for Entrepreneurial Leadership

retail division

Dr. Rebecca Wells

Associate Professor of Marketing and Flyer Enterprises’ Marketing Advisor

Dinah Robinson

Associate Director of Financial Aid and Office of Student Success

culinary divisions

Art Santoianni

School of Business Administration Information Technology Director

Michael Montag

General Manager of ArtStreet Café

Morgan Whitely

Director of Human Resources of ArtStreet Café

Dimitrios Tsiribas

Student Government Association Business Senator

Sarah Hemler

Director of Marketing of ArtStreet Café

Matt Gordon

President of FE Alumni Association

Matthew Borchers

Financial Manager of ArtStreet Café

Annie Boone

Entertainment Coordinator of ArtStreet Café

Zach Babbe

Director of Marketing of FE Catering

Ashlee Anderson

Director of Human Resources of FE Catering

All members of the University of Dayton community

corporate support

38 | Flyer Enterprises

dining services joint ventures

Keri Crist-Wagner

Full-Time Store Manager

Clare Georges

Director of Merchandising

Meredith Daniels

Director of Operations

Kim Balio

Director of Marketing Communications

FE storage

Hannah Magnan

Corporate Graphic Designer

Nick Fister

JT Elmore

Corporate Accountant

Hannah Viertel

Corporate Accountant

General Manager

FE IT support group Jordan Adams

Database Administrator

Brock Griffey

Network and Web Architect

Pat Seggerson

Operations Director

2011–2012 annual report | 39


letter from the

chief financial officer

The 2011–2012 fiscal year was a year of focus and progression. Increasing revenues were a trend across all divisions, most evidently at ArtStreet Café which had a record-setting year in terms of net income. The Blend and The Blend Express each had doubledigit sales growth compared to last year, while the Dining Services Joint Ventures experienced consistent sales growth and continued to be a solid anchor for FE financially. FE Corporate cut down on company-wide promotional expenses without compromising quality. In addition, executives used their time more efficiently to decrease payroll expenses. This was in response to a four percent statewide increase in payroll and a significant decrease in grants received from our University partner, the School of Business Administration. FE IT added more employees but was able to stay under budget and achieved lower payroll expenses compared to last year. FE IT,

percentage of revenue by division

however, had to purchase a new server and brought themselves to their highest overall accumulations of expense. FE Catering grew revenues but fell short in net income. FE Catering’s net income for the last year was around $4,200 where net income for this year is projected to breakeven. FE’s newest division, FE Storage, kicked off its first full year of services and grew in sales from last year’s pilot program. This past year, the University transitioned to a fully electronic accounting system. FE’s accounting team worked diligently to standardize each duty for easier succession. Moving into the 2012–2013 fiscal year, Flyer Enterprises is positioned for growth and development.

16.6%

7%

1.5% Peter West Chief Financial Officer

14.4%

16.3% 0.5%

2011 2012

40 | Flyer Enterprises

$1,115,596 $1,173,331

5.2% increase in company revenue

11.5%

32.2%


income statement

for the year ending in june 30, 2012

1.

divisional revenue comparison for 2011 vs. 2012 corporate

operational revenue Revenue Total Operational Revenue

$168,891 $82,219 $194,460 $17,975 $191,543 $134,458 $378,458 $5,327 $168,891 $82,219 $194,460 $17,975 $191,543 $134,458 $378,458 $5,327

- -

$115 $1,173,446 $115 $1,173,446

non-operational revenue Grants Interest Income Total Non-Operational Revenue

- - -

- - -

- - -

$610 - $610

- - -

- - -

- - -

- - -

- $35,000 - $339 - $35,339

$38,830 $85,623 $43,389 $109,447

$12,542 $5,433

$62,298 $129,245

$42,031 $92,426

$160,540 $217,917

- $5,327

- - - $35,454

$35,610 $339 $35,949

0.5%

$400,000

$350,000

$300,000

cost of sales

COGS Gross Profit

$76,560 $92,331

$478,424 $730,971

$250,000

payroll expenses

Staff Pay Staff Benefits 2. Total Payroll Expenses

$42,231 $26,200 $61,781 $6,699 $59,319 $41,944 $46,343 $1,807 $16,290 $41,020 $343,635 $1,010 $608 $1,508 $231 $1,264 $878 $1,054 $49 $401 $2,686 $9,687 $47,587 $28,896 $70,093 $8,651 $62,515 $42,695 $50,361 $1,856 $18,565 $51,701 $382,920

operational expenses Utilities Dues, Licenses, and Memberships Repair and Maintenance Contract Services Total Operational Expenses

- $946 $270 $1,728 $2,944

- $680 $1,417 - $2,098

- $1,014 $733 $2,069 $3,817

- - - $195 $195

$2,597 $117 $3,650 $965 $7,330

- $117 $3,222 $921 $4,261

$836 $105 $4,598 - $5,539

- - - - - - $2,737 $1,925 $2,737 $1,925

- $48 - $1,624 $1,672

$3,432 $3,028 $13,892 $12,164 $32,516

$200,000

18.9%

7.3%

4.2%

$150,000

$100,000

7.8%

general & administrative expenses

Advertising & Printing $505 $197 $1,054 - $216 $325 $189 $363 - $4,008 $6,858 Uniforms - - $130 - $42 - - - - - $172 Office Supplies $395 $166 $921 $43 $747 $117 $516 - $10 $958 $3,873 General Supplies $1,182 $1,015 $2,994 $1,483 $3,287 $1,139 - - $206 $11,306 General IT Supplies $218 $338 $436 - - - - - - $69 $1,062 Telephone $484 $484 $702 - $326 $324 $828 - - $894 $4,042 Insurance $37 $22 $765 - - - $119 - - - $943 Charitable Contributions - - $1,093 $54 $215 - $88 - - $100 $1,549 Disposables/Inv. Loss - - - - $12,448 $5,380 $1,478 - - - $19,307 Rent $1,800 - - - - - - $75 - - $1,875 Share of Admin and Corp. 3. 4. $6,454 $1,484 $6,393 $750 $3,064 $2,225 $4,503 ($6,745) $18,128 Misc. Expenses $675 $205 $767 $195 $899 $774 $280 $550 $211 $6,275 $10,831 Total General & Admin Expenses $11,751 $3,911 $15,255 $1,042 $19,439 $12,434 $9,141 $989 $220 $5,764 $79,946 Total Expenses $62,281 $34,905 $89,165 $9,887 $89,284 $59,390 $65,041 $5,582 $20,710 $59,137 $495,382

operational income

Operational Income Less: Distributions 5. 6.

$30,050 -

$8,484 -

$20,282 ($4,454) $10,344

$39,961 $26,787

$33,037 $22,081

$152,876 $137,653

($255) ($20,710) ($23,683) - - -

$235,589 $196,865

net income before

Major Equipment Acquisitions Less: Major Equipment 7. 8.

$30,050 $2,276

$8,484 -

$9,938 ($4,454) - -

$13,174 -

$10,956 -

$15,223 -

($255) ($20,710) ($23,683) - $4,897 -

$38,723 $7,173

Final Net Income 9.

$27,774

$8,484

$9,938

$13,174

$10,956

$15,223

($255) ($25,607) ($23,683)

$31,550

Beginning Retained Earnings Net Income from 2012 Ending Retained Earnings

$340,573 $31,550 $372,123

($4,454)

4.4%

$50,000

-21.9% 8.1%

$0 2011 2012

notes to the financial statements 1. Flyer Enterprises’ fiscal year: July 1, 2011 to June 30, 2012.

revenues to the Flyer Enterprises Corporate account to assist in covering corporate-wide expenses.

2. Staff Benefits—The University of Dayton collects a 2% employee benefit charge for regular student labor and a 4% charge for work study student labor. These changes are to cover student employee’s workers compensation coverage and a composite charge on student’s wages subject to social security.

5. ArtStreet Café was funded through a contract with the University of Dayton. Flyer Enterprises was given a $290,000 line of credit from the University to design the venture, cover start-up expenses and make capital purchases associated with the development of the Café. In return, Flyer Enterprises distributes 51% of positive cash flow annually to the University and does not pay any rent or utilities to the University of Dayton.

3. Share of Admin.—The University of Dayton charges 2.3% of expenses for Flyer Enterprises using the University’s payroll, purchasing, accounts payable, and bursar ad accounting offices. 4. Share of Corp.—The divisions that are not participants in a joint venture are charged 2% of expected

6. The Galley, Stuart’s Landing, and The CHILL are joint ventures with Dining Services. Dining Services provides all capital and technological investments and accounting responsibilities. Flyer Enterprises is respon-

sible for all daily operational decisions and employee development. Per contractual agreements with Dining Services, Flyer Enterprises retains 35% of The Galley’s operational income, 10% of Stuart’s Landing operational income, and 35% of The CHILL’s operational income. The remainder of the operational income for each division is distributed to Dining Services. 7. The Blend purchased an ice machine, accounting to $2,276 in new equipment acquisitions. 8. FE IT purchases server space from UD IT accounting for $4,897 in new equipment acquisitions. 9. Cash on Hand—The amount of cash available in the safe and cash drawers as petty cash at the divisions.

2011–2012 annual report | 43


contact us

designed by Karli Tomaselli

Flyer Enterprises Miriam Hall Rm. 306 300 College Park Ave Dayton, Ohio 45469-2226

photography by Melissa Karasack Ethan Klosterman Marci Duckro Karli Tomaselli

Visit us at one of our locations or check out our website! www.flyerenterprises.com

edited by Katherine Fennessy Sean Holdmeyer Sarah Hemler Jeff Haberman Kerri Roper Rachel Nickolas Cameron Legan Jason Eidam Bridget Liddell Mark Becker Kathy Kargl

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Annual Report 11-12  
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