CrossRef Financial Review

Financial Review

Linda Beebe, Treasurer

Thursday, November 12, 2009

Financial Achievements

• Business model: balanced and sustainable

• Generating a surplus for re-investment

• No debt: all start-up loans repaid May 2007

• Clean 2008 audit - Audit Committee working well

• Policies and procedures have grown with the organization


Financial Achievements

• Major investment in System Rewrite

• Membership & Fees Committee undertook complete fee review

• Book deposit fees revised

• Affiliate and CrossRef Metadata Services fees revised


Financial Goals

• Sustain and invest in core services – capital expenses for operations.

• Invest in new services.


Financial Goals

• Retain a minimum of 2 months operating cash plus next year’s capital spending on hand at all times.

• Maintain a credit line of $250,000 to support current operations.

• Establish a cash reserve fund ($.5 million) for future improvements to the core services.


Revenues: Key Components $2,993,000 - 2009 YTD

Membership (27%)Deposits (61%)Hos6ng, Metadata, Other (12%)


Revenues: Key Components $2,993,000 - 2009 YTD

Membership (27%)Deposits (61%)Hos6ng, Metadata, Other (12%)

$808,000

$1,837,000

$348,000


Expenses: Key Components$2,555,000 – 2009 YTD

Staffing (51%)Administra6on (25%)Data/SoBware (15%)Travel/Mee6ngs (6%)New Ini6a6ves / Other (3%)


Expenses: Key Components$2,555,000 – 2009 YTD

Staffing (51%)Administra6on (25%)Data/SoBware (15%)Travel/Mee6ngs (6%)New Ini6a6ves / Other (3%)

$1,305,000

$632,000

$382,000

$158,000 $78,000


9-Month 2009 Highlights

• Revenue: $2,993,000

• $177,000 (6%) over Budget

• $322,000 (12%) over same period 2008

• Expenses: $2,555,000

• $55,000 (2%) under Budget

• $121,000 (5%) over from same period 2008


Financial Overview2000-2009 LE


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE

3,500

3,000

2,500 2,000 1,500

1,000

500

0

-500

-1,000

-1,500

-2,000

-2,500

-3,000

Income Statements – By Year


$000's


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE

3,500

3,000

2,500 2,000 1,500

1,000

500

0

-500

-1,000

-1,500

-2,000

-2,500

-3,000



$000's

2,071

2,918 2,8683,245

422

1,176

3,1403,452

3,655

4,058


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE

3,500

3,000

2,500 2,000 1,500

1,000

500

0

-500

-1,000

-1,500

-2,000

-2,500

-3,000



$000's

2,071

2,918 2,8683,245

422

1,176

-786

-1,881

-2,722-2,624

-2,391

-1,641-1,499

3,1403,452

-3,250

3,655

-3,325

4,058

-3,495


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE

3,500

3,000

2,500 2,000 1,500

1,000

500

0

-500

-1,000

-1,500

-2,000

-2,500

-3,000



$000's

2,071

2,918 2,8683,245

422

1,176

-786

-1,881

-2,722

91

-220

254

-45

-501

-99

-2,624

-2,391

-1,641-1,499

3,140

-3612

3,452

-3,250

3,655

-3,325

-85

4,058

-3,495

-17


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE

3,500

3,000

2,500 2,000 1,500

1,000

500

0

-500

-1,000

-1,500

-2,000

-2,500

-3,000



$000's

2,071

2,918 2,8683,245

422

1,176

-786

-1,881

-2,722

91

-220

254

-45

536478

-400 -501

-99

-2,624

-2,391

-1,641-1,499

-422

521257

770

3,140

-3612

3,452

-3,250

214

3,655

-3,325

-85

245

4,058

-3,495

546

-17


2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

-200

Member Loans & Cash at Year-End

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE

$000's



2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

-200


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE

$000's

2,000

1,400

600

1,950

1,700

1,125

1,200

0 0 0



2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

-200


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE

$000's 1,241

2,000

1,400

600

819

1,198

1,950

1,700

935

1,125

454 389

1,200

1,486

1,136

0

1,299

0 0

1,626



Cash$2,034,000 - 9/30/09

Reserved (25%)Opera6ng (75%)


Cash$2,034,000 - 9/30/09

Reserved (25%)Opera6ng (75%)

$1,534,000

$500,000


Safe Cash Investments

• Cash spread across 8 financial institutions

• Spare cash in money market accounts and Certificates of Deposits (CDs) in the US and a Treasury bond in the UK

• CD maturity dates are laddered

• No stocks or Subprime mortgages


2010 Draft Budget

• Revenue - $4,315,000 (6% growth over 2009LE)

• Membership growth leveling off/most new members in lowest tier

• Expenses - $3,827 (9% growth over 2009LE)

• Investments in metadata quality and System Rewrite

• Two new staff positions – tech support and part-time bookkeeper

• Cash balances remain within Board cash policy


Strategic Issues

• Ensure long term viability of CrossRef through prudent policies and long term planning

• Define broad principles for investment in start up initiatives (i.e., innovations)

• Regularly monitor all fees and adjust as necessary


Strategic Issues - Risks

• Decline of Backfile deposits and leveling off of growth of Current deposits

• Impact of general economic downturn

• Costs going up due to growth in members, metadata quality efforts and new services

• Not completing System Rewrite in a timely manner


Strategic Issues - Risks

• Collection on member & affiliate billings has become much more difficult and time consuming

• More invoices go over 90 days past due


Summary

• Excellent financial performance

• Major investment in System Rewrite including IP ownership

• Risks being addressed

• CrossRef can expand and remain a viable non-profit for industry innovations.


CrossRef Financial Review

Business

Transcript of CrossRef Financial Review