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Category Archives: Financials


 

Planned Parenthood Federation of America’s President,
Cecile Richards, makes a whopping $340,498 per year in salary.

Planned Parenthood of America is a charitable organization
and like most all charities, are typically not self-sustaining.
They rely on funding from donations, both private and public. 

One of the problems with certain charities as well-intentioned as
they may be, is that most are not resigned to an end-game.
They have to keep the “issues” or problems perpetuating.
Now for some organizations, there exists more serious and very
real health problems which are fatal and/or debilitating-
for which there are no cures and their work is absolutley needed.

But, for many charities, the “problems” are solvable.  But here’s
the rub and the paradox;  if the “problems” get solved…the
organization in all likelyhood go away or are then significantly
reduced…as do the usual large and bloated salaries and the
many jobs within these organizations. It’s a double-edge sword.

One could argue that Planned Parenthood would be better off
spending a portion of that almost One Hundred and Four Million 
in Net Assests on education for the predominatley minority contingent
who often become pregnant in their teens and pre-teen years.

It’s also  no secret that many charities have “un-offical” political ties
and backing and are influenced as such. Whether it’s religion, politics
or social agenda’s, some charities are not as ‘transparent’ as we
would like to believe.

One could even make the argument that if Planned Parenthood
made a serious and concerted effort to help lower the number
of these unwanted and unplanned pregnancy cases through education
and outreach campaigns (excluding rape situations) by a significant number,
they would be ensuring their own demise. Ah…and therin lies that RUB.

 

Income Statement    

Revenue  
Primary Revenue

$81,941,013

Other Revenue

$3,682,293

Total Revenue

$85,623,306

Note: This organization receives $0 in government support.
   
Expenses  
Program Expenses

$59,222,768

Administrative Expenses

$7,688,063

Fundraising Expenses

$13,085,719

Total Functional Expenses

$79,996,550

   
Payments to Affiliates

$0

Excess (or Deficit) for the year

$5,626,756

   
Net Assets

$103,850,562

Compensation of Leaders    

Compensation % of Expenses Paid to Title  
$340,498 0.42% Cecile Richards President

 

Data obtained from Charity Navigator

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There was a report recently published outlining the top 40/top 50
most valuable sports brands, by a high-profile business magazine.
Well, Real Analytics is about to burst that (incorrectly published) bubble…

We’re sorry that we have to disappoint all the Yankee fanatics and
the stick & ball sport fans, but alas there is more to the sporting world
than the United States. Much more.

According to the high-profile business publication that put the report
out they utilized their OWN proprietary formula to arrive at their
conclusions- (albeit, flawed conclusions)

The reporter who covered the story is a regular on a TV show with the
program initials SM, on the promineant cable network MSG and who has
his own web column as well. The publication is usually reliable, but in this
case we think they have not considered a variety of factors and methods.

The most likely scenario is that the publication employed an in-house
intangible or ‘name’ only valuation or third-party appraisal, as well their
use of a model of correlation between Value and Revenue. Unfortunately,
we don’t know the credibility of those methods and sources.

So, in order to ‘correct’ the somewhat questionable methods,
Real Analytics has put together the Top 5 Most Valuable Sports
Brands/Teams in the sports world, based on the reaserch mostly
derived from a high profile Auditing/Accounting firm.

Before we get to the list, a little tid-bit; The most valuable sporting events– (multiple series events) hands down is Formula One. Oh, we know your
boo-hoo’ing that fact…but it’s a stone cold lead pipe lock folks.
(our homage to the entertaining  and awesome Mike & Mike)

Without further adieu here is the list. (note: exact values are nearly
impossible to attain so approx values within +-1% are utilized)

Top Five Most Valuable Sports Brands/Teams

1. Manchester United: £1.5 Billion (British Pounds)
2. Real Madrid: £1.4 Billion (British Pounds)
3. Scuderia Ferrari: $1.81 Billion (U.S. Dollars)
4. Dallas Cowboys: $1.79 Billion (U.S. Dollars)
5. New York Yankees: $1.7 Billion (U.S. Dollars)


Footnotes:

The published dollar figures consider both the intangible (theoretical)
and tangible (asset based) values of each entity. Furthermore, each value is based upon an “Arm’s Length Transaction” (A-L-T)

Obviously, it would be extremely difficult to parse out pieces of these teams. One could argue for the ‘value’ of just the teams “name” which would
be an entirely intangible valuation.

But then the Yankees would be worth significantly lower than the estimated $1.7 B. That figure includes the Yes network, the stadium, and all other subsidiaries. Same goes for all the top 5 teams/brands.

To separate out the property from the name brand would be very difficult
and not paint a true picture of the entire worth of these organizations.
Therefore a mixed valuation is the correct method. A fractional valuation
would not be practical. One has to take into account both enterprise and
equity values.

Conversely, the figures do not consider any Debt-To-Loan Ratios (D-T-L)
or outstanding debts. Strictly A-L-T Sale Values based on the entire
‘property’ -both intellectual and asset based properties.

The methods and metrics that go into a sports business valuation are very
complicated and very detailed. Some methods employed are DCF
(Discounted Cash Flow- future earnings) Capitalized Earnings, Value Added Analysis, Valuation Multiples, Weighted Averages, Broadcast Rights, Merchandising, etc.

Partial data and figures were sourced from:
Deloitte Touche LTD and FormulaMoney

One last side note, valuations are usually reliable from quarter to quarter.
So during a business cycle year, the top 3 can flip flop. But it is safe to say that the top 3 are all within a few hundred thousand dollars at any given time.


One of the most prestigious, long-standing bicycle races and sports events in general- is “Le Tour de France”. The Tour is the third largest sporting event around the globe, following the Olympic Games and the FIFA World Cup.

The 95 year old race event creates  massive interest from the international media, as it is broadcast on TV in 180 countries. The race brings in representatives from 75 radio stations in 25 countries and over 450 newspapers, photographers and media from 26 countries in total.

The Tour involves shuttling, accommodating and feeding over 4,500 people each and every day for the full 23 days (21 days of racing plus two rest days) A total of 2,400 vehicles will be following the race, including race director with support, team vehicles, medical and general support.  Then there is the matter of the huge, dedicated, fanatical crowds that line the routes for three solid weeks.

The entire budget for the Le Tour is estimated at nearly 100 million euros, or $140 million U.S. dollars-  of which, approximately 50% derived from the broadcast television rights, 40% from title and presenting sponsors and the remainder from participant fees paid by each town where the stages start and finish.

The 2009 edition of the Tour will see the competing cyclists span about 2,200 miles, visit 34 towns, pass through 560 municipalities and make stops in a total of six countries- Monaco, France, Andorra, Spain, Switzerland and Italy.

Each and every town in every country will feel the effects of the Tour from spectators, media and team personnel in the way of traffic jams, long lines, and crowded streets- but most importantly; money spent.

The event organizer- the ASO, or Amaury Sport Organisation owns the newspapers and magazine publications l’Equipe, France Football, l’Equipe Magazine, Vélo Magazine, Le Parisien and Aujourd’hui in France.

Created in September 1992, the ASO  is a specialized organization of sporting events, and in addition to the Tour de France, they put on the famous Dakar Rally and the Paris Marathon.

Aiding the ASO in France will be the French police and emergency services, who will direct and assist all the French municipalities in dealing with needed highway repairs, road signs, safety barriers and the planting of yellow flowers in all of the prevailing open spaces.

The cost of these operations is approximately three and a half million euros- with technical costs accounting for over two million euros and the rest spent on miscellaneous items including, communications and local ancillary supporting events.

On the financial side, along with the promotion of tourism in each city and town there will be a substantial increase in the traffic and flow of people in and out of restaurants, hotels and merchant shops. The subsequent impact of the large increase in traffic will spur positive economic upshots for all commercial merchants involved.

A major retailer, the Champion supermarket chain, which is the presenting sponsor of the “Polka Dot Jersey” or “King of the Mountains” for the best climber, will have 21 vehicles and countless personnel in the Tour’s caravan.

For the 2009 edtion of Le Tour, Champions managers have planned a very aggresive, dedicated marketing and promotions campaign for their 1,000 stores in France, Belgium, Spain, Poland, Greece, Turkey and Argentina.

With Spain being one of this year’s major themes for the supermarket, the chain’s plan is to have the in-store hostesses wearing outfits designed by one of the country’s most famous fashion designers all in hopes of attracting more female customers.

It is estimated that there will be approximately 15,000,000 spectators over the 21 days, spending an average of three euros per day- for a whopping total of 45,000,000 million euros or $63,000,000 million U.S. dollars.

The result will be a significant economic impact for all of the participating countries, cities, towns and boroughs. It is no wonder that over 200 towns in France alone apply to the ASO every year for a spot on the famed Le Tour route.


 -NJ Industrial Market Report

During the first Quarter, Northern New Jersey Industrial Real Estate data shows the overall leasing and absorbtion of 921,766 square feet. Mainly in the Hudson and Bergen corridors- along the Hudson waterfront and centered around the Route 46/23 areas.

In the Central region, the New Jersey industrial market ended the quarter with 1.14 million sq ft of leased out space. The most activity was in the 287/Exit 10, Exit 8A and Somerset submarkets, which had a combined total of 873,496 sq ft of leased space.

‘Asking’ net lease rates in Q1 stood at $5.90 per sq ft- which represented only $0.26 less or a 4.66% decrease from the mean asking rents posted just a year ago. While the asking rents in Central New Jersey stayed basically stable, with the Trenton/295 submarket yielding the highest asking rate increase, which was up $0.18 per sq ft.

ask rents ind njOverall, gross absorbtion remains negative- around 9 million square feet of space and the overall vacancy rate stood at 9.2%- up from 8.7% Q4. Subletting activity has and continues to increase, a sign that companies are reducing their real estate holdings in this deeply troubled economy.

  • Negative Gross Absorbtion:                  9(+\-) million
  • Overall vacancy rate:                         9.2%
  • Northern NJ space leased:                   921,766 SF
  • Central NJ space leased:                     1.14 m SF

Recovery in the industrial market is expected to lag behind retail and office space which will ultimately prolong the efforts of investors and corporate holders to normalize vacancy and absorbtion rates.

Of course industrial/flex space is directly affected by retail sales and the entire retail sector, so the sooner retail rebounds- the sooner the industrial market will see recovery as well.

All of NJ real estate, commercial and residential recovery is resting on the states and the national economic climate. Depending on how quickly the country can dig itself out this current deep recession/mild depresion.


 –Basking Ridge, NJ

Part II

For those who may not know, Basking Ridge/Bernards Township is situated in the Pharma belt of Somerset County- which is also the second wealthiest county in New Jersey.

The Bernards Twp/Basking Ridge area is home to the corporate offices of AT&T, Verizon and The United States Golf Association. Basking Ridge boasts its own country club as well, with an 18 hole PGA golf course.

Ridge High School, one of the best rated in the state was ranked second overall in 2007.  There is no doubt that Basking Ridge is a much sought after, desirable community and a nice place to live- just ask any of its 26,000 residents.

untitled1

Quick Stats

Bernards Township is one of the most expensive boroughs to reside within Somerset County, as well as the state. The cost of living is 68.66% higher than the national average.

The median house value is approximately $685,000, with median property taxes just over $9,500 and the median household income above $128,000.

The public school budget rings in at a hefty $84,007,764. The cost per pupil is over $11,000 (24% higher than the state average) with a total student cost of approximately $68,500,000. Which leaves approximately $17,000,000 for expenditures. Salaries, vehicles, athletics, etc. A very healthy budget indeed.

The general tax levy in Basking Ridge has increased a massive 110% in 10 years. Rising over 11% annually, (more than double the cost of living) from $30,128,190 to $66,837,438.

The only aspect that keeps the very beautiful and historic borough from being an exclusive bedroom community is the four thousand plus condominium units throughout the township.

Those 4,000 units have a median price in the neighborhood of $300,000. These more affordable options (evidently to the chagrin of some locals) are approximately half the cost of most single family homes in Basking Ridge.

Who invited you to the party?

The Ricola Race has the distinction of being the only professional sporting event to take place in Basking Ridge and immediate surounding area (excluding the Somerset Patriots Baseball team). This alone should be a fantastic draw for the fast-paced, excitment filled event.

You want reality? The race is the best reality show around, happening real-time, up close and in your face. No other sport allows the spectator to get so close to the athlete- while he or she is competing! Cycling offers unique perspectives and unprecedented access.

Interestingly enough the only other two other major annual events that take place in Bernards Twp., are the Far Hills Race Meeting Steeplechase and the Music at Moorland Farms Summer Symphony. Both of which get a lot of attention and exposure from the local media, surounding townships and presenting sponsors.

It seems as though the bicycle race may not be perceived in the same vein as the equestrian, golfing and symphonic events. But a look at the social and sporting statistics of bicycling tells a different tale.

FYI

Cycling is the second most popular recreational activity in the United States.

Cycling demographics cover three areas of interest. Recreational, Racing and Spectator Events. Like most professional sports the race participation is male dominated. Though unlike most sports, cycling has a very large female recreational and spectator base.

Demographics

grids

  • Cycling is the #1 fitness and health activity among doctors and lawyers over the age of 40.  
  • Cycling is the second most popular recreational activity behind sport walking.
  • 17-million bicycles are sold in the United States each year.  
  • The mean price for a professional racing bike is $3,500.  
  • Household income for 45-49 year old licensed racers. ($95,940)

  Source: Simmons, MRI, USA Cycling Membership, Bicycling Magazine

There is no doubt that the sport of cycling is very popular and attracts a wide array of participants who take part in one way or another.


 -Basking Ridge, NJ

Part I

ricola_grand_big

The 4th annual Ricola Twilight Grand Prix cycling race is set to take place on Wednesday, May 27th in the bucolic borough of Basking Ridge New Jersey.

The elite cycling event attracts a good number of pro and pro-am riders from all over the country including a small contingent of globally based riders as well.

Though not a points paying race for these pro’s and non-pro’s , the large attractive purse of $10,000 in prize money is definitely a strong pull for the 120+ competing riders. Most of whom were already in town for the oldest bicycle race in the country- the 50 mile Tour of Somerville, which will have run its 66th edition on Memorial Day.

The Ricola GP organizers capitalized on the Somerville classic, taking advantage of logistics by staging their race just 2 days after the ToS event. Local bicycle shop Liberty Cycle and its owner/operator, Greg Cordasc was instrumental in bringing the event to the Somerset County borough.

The race takes place in historic downtown Basking Ridge, with the riders passing along the main line of retailers along South Finley Avenue. The circuit layout is key in showcasing the many types of retail stores and services in the borough.

The race course is not the typical “criterium” style course and is regarded as one of the most technical short race circuits in the U.S. It features a 1.1 mile loop that offers a combination of 8 tight and sweeping corners every lap over the 44 mile race distance.

There are plenty of ideal spectating spots where fans get up close and personal- just inches away from some of the best elite riders- sweeping past in excess of 35 mph, which makes it unique and exciting to watch.

small alp horns

The event offers some interesting and fun pre-race activities such a BMX riding and tricks demo, the Bonnie Brae Knights Drum Corp. and the Ricola Swiss Alp horn players. The organizers have made the event appealing not only to cycling fans, but the whole family and all ages as well.

Obtaining the headline sponsor, Ricola USA was a huge ‘get’ for the event, providing visibility, name recognition and a lot of potential market appeal. With such a major sponsor, you would think that the race would be a fairly big attraction for the borough.  After all, it is a professional sporting event.

But apparently that is where that thought ends. It is somewhat painfully obvious that borough officials of Basking Ridge do not exactly embrace the event- for whatever inexplicable or unapparent reasons they may have.

Spectator turn out is decent, but certainly nowhere near its true potential. The racing event has tremendous appeal, but does not yield the bigger, more enthusiastic type crowds at other similar cycling events within the area, such as the Tour of Somerville.

There seems to be a bit of a disconnect between the solid efforts from the promotion of the race and the townships lack of efforts to publicize and market the race- in fact, one could even say they almost seem to undermine it.

(a topic further explained in parts II & III)


The New Jersey housing market showed that it still has a pulse as contract-sales increased by 23% in March despite the continuing stream of grim economic news. The March increase, which is the 3rd consecutive monthly sales increase, is largely due to seasonality as home sale activity typically rises in anticipation of the Spring selling season. That this year’s increase was 23%, compared with a 9% rise last March.

contract sales

A major reason behind the rise in home sales is lower home prices and lower mortgage interest rates that have raised housing affordability in New Jersey from a low of 81% in 2006 to 111% today.

The bottom line is that the current sales pace remains the lowest of the past 5 years. This is directly due to the challenges posed by a weak economy, tightened credit standards, rising food and energy costs and a high amount of unsold inventory, which presently reflects an 11-month supply.

While New Jersey is faring a bit better than most of the country, it remains to be seen if this short-term positive news can become a positive trend.


From ISC – Daytona, FL.

Reported results for the fiscal first quarter ending February 28, 2009.

The April 7th meeting kicked off with a statement from the ISC President.

“While pleased with the level of excitement and competition on the track as well as the fans’ avid support of NASCAR, we are not immune to the broader macroeconomic challenges facing all businesses,” said ISC President Lesa France Kennedy.

First Quarter Comparison

Total revenues for the first quarter decreased to $166.1 million, compared to revenues of $193.9 million in the prior-year period. Operating income was $50.0 million during the period compared to $66.9 million in the first quarter of fiscal 2008. In addition to the macroeconomic challenges, quarter-over-quarter comparability was impacted by:

    --  Exceptionally strong consumer and corporate demand for the 50th
        running of the Daytona 500 and surrounding events in the first quarter
        of 2008.  The historic race provided unique opportunities to drive
        revenue above the otherwise strong appeal of one of sport's most
        marquee events.

    --  The 2008 first quarter also included a non-cash charge of $3.8
        million, or $0.07 per diluted share after tax, to correct the carrying
        value of certain other assets as of November 30, 2007.  In addition,
        the first quarter of 2008 included an impairment charge of $0.7
        million, or $0.01 per diluted share after tax, related to charges for
        the fill removal process on the Company's Staten Island property and,
        to a lesser extent, the net book value of certain assets retired from
        service.

    --  The first quarter of 2009 included a $1.6 million, or $0.03 per
        diluted share after tax, charge for equity in net loss from equity
        investments related to Motorsports Authentics, LLC ("MA"), the
        Company's motorsports-related merchandise 50/50 joint venture with
        Speedway Motorsports Inc.

Net income was $25.1 million, or $0.52 per diluted share, compared to net income of $36.2 million, or $0.71 per diluted share, in the prior year.  Non-GAAP (defined below) net income for the first quarter of 2009 was $27.2 million, or $0.56 per diluted share. Non-GAAP net income for the first quarter of 2008 was $39.7 million, or $0.78 per diluted share.

GAAP to Non-GAAP Reconciliation:

The 2008 adjustments relate to: a benefit for equity in net income from equity investment; accelerated depreciation for certain office and related buildings in Daytona Beach; the impairment of long-lived assets associated with the fill removal process on the Staten Island property and the net book value of certain assets retired from service; and, a non-cash charge to correct the carrying value of certain other assets.

The adjustments for 2009 relate to: a charge for equity in net loss from equity investment; accelerated depreciation for certain office and related buildings in Daytona Beach; and, the impairment of long-lived assets associated with the net book value of certain assets retired from service,.

Non-GAAP diluted earnings per share                $0.78          $0.56
                                                                                              

Outlook

“Although we expect our business will continue to be impacted by a challenging macroeconomic environment throughout 2009, we enjoy a business model that benefits from strong consumer support and a solid foundation of contracted revenues,” stated Ms. France Kennedy.

“These significant top-line visibilities combined with undertaken cost containment measures help ensure that our business will continue to generate substantial cash flow.”

Attendance for 2009 is expected to be down about 15% from 2008. Given the economic climate and financial difficulties the entire country is experiencing  a 15% decline seems fairly acceptable.

To somewhat combate this short-fall in ticket sales, Nascar and ISC have decided to lower ticket prices on a certain number of seats at each of its ISC owned tracks. A simple, yet smart strategy, that will probably pay off…

Full report here: http://ir.iscmotorsports.com/phoenix.zhtml?c=113983&p=irol-newsArticle&ID=1274018&highlight=


 The historic and famed TD Commerce Bank “Triple Crown of  Cycling” has been consolidated into just one title event for 2009. The single sponsored event- the Philadelphia International Cycling Championship is scheduled to take place on June 7th of this year.

Admist the deep recession and troubled economy as well as TD Bank’s assessment of its sponsorship dollars, the bank has decided to step down from title sponsorship of the Reading and Lehigh Valley Classics, the first two legs of the Pennsylvania Triple Crown of Cycling.

The event is now in its 25th year of existence, starting out as the old Core States race back in 1984. Each year its stature and popularity has proved to continually grow with both the fans and competitors alike. But with the on-going financial difficulties, 2009 will be more of a test to the future of the long standing event.

There will be a  main featured race for the contingent of pro riders and a few of races for the amateur riders. Philadelphia city and Pro Cycling Tour officials expect a slight decline this year, with between 50,000 and 75,000 spectators posibly attending, based on figures from previous years.

“Given the succesful history of the event and the past amount of spectators, the 2009 expected numbers are a bit down due to the economic climate.” Said a Pro Tour official.

Race Statistics:

Biggest One-Day cycling event in U.S.
Over 350,000 spectators – 2008
Local live television coverage
2007 ratings – 3.4 audience share

Video impressions – 12.5-million
Website hits 30 days prior to event – 3.6-million

Event Demographics:

53% male
47% female
57% ages 25–49
64% college graduate or higher

49% professional
31% non-professional
20% students
59% earning $50,000+
30% earning $100,000+

The estimated total economic impact for the city of Philadelphia  is approximately between $3 and $5 million dollars. Being the 5th largest media market in the country that type of boost to the local and regional businesses will do the tax coffers good.

The impact of revenue ranges from the mom & pop stores to chain hotels, restaurants and a variety of retail services.

Sporting events, both local and national are visible reminders that hard work eventually pays off and that winning is never easy- but is always rewarding.


Milleville NJ,

New Jersey Motorsports Park, or Thunderbolt Raceway as it is better known by, will play host again this weekend for the second year to the Grand American Road Racing Series.

ga

Daytona Prototypes (pictured above) and GT cars are showcased in the Grand-Am Rolex Series. The series will feature both classes on Thunderbolt’s course simultaneously. The Rolex Series features some of the top teams in motorsports, including Chip Ganassi Racing Brumos Porsche and Penske Racing.

The 700+ acre sprawling, country-club type raceway opened in 2008 and has hosted the ARCA series along with the Grand-Am Series. This season the track will add the AMA Superbike Series as well.

The $150 million world class Motorsports complex is considered one of the more premier tracks in the country. The track contains an exclusive motorsports country club known as the Drivers Club, unique trackside Villa homes and the Shade Tree Garages which are secure garage suites.

Later this year a world-class driving school will open their head quarters at NJMP. The track broke ground in 2007 and was partially designed by Harvey Siegel and legendary racer, Caroll Shelby.

The facility provides about 180 jobs for the local area and has 60 corporate partnerships for the 2009 season. The positive impact on the travel and leisure industry is a plus for the south Jersey area.  The track is expected to bring in a host of other related businesses in the near and long term future.

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