skywhopper Posted January 20, 2013 Share Posted January 20, 2013 (edited) Setting aside YEA is the most diversified organization, Blue Devils and SCV stand out with the size of their revenue streams. Given that a lot of their revenue is bingo, my question is--are they at risk of a Gmen-like collapse in bingo earnings? And if so, what are they doing to hedge that risk? I guess the question here is, why did Gmen's bingo earnings collapse? I assume this was discussed some in the other thread, though I missed it. Too much competition from local casinos? What's the casino picture in California? And if bingo *is* a healthy revenue stream in California, are Mandarins and Pacific Crest hooked in? Can DCI or other corps set up California bingo operations elsewhere in the state, or are BD and SCV just lucky enough to have ownership of long-standing operations that would be impossible to duplicate anew? Edited January 20, 2013 by skywhopper Quote Link to comment Share on other sites More sharing options...
danielray Posted January 20, 2013 Share Posted January 20, 2013 Setting aside YEA is the most diversified organization, Blue Devils and SCV stand out with the size of their revenue streams. Given that a lot of their revenue is bingo, my question is--are they at risk of a Gmen-like collapse in bingo earnings? And if so, what are they doing to hedge that risk? I guess the question here is, why did Gmen's bingo earnings collapse? I assume this was discussed some in the other thread, though I missed it. Too much competition from local casinos? What's the casino picture in California? And if bingo *is* a healthy revenue stream in California, are Mandarins and Pacific Crest hooked in? Can DCI or other corps set up California bingo operations elsewhere in the state, or are BD and SCV just lucky enough to have ownership of long-standing operations that would be impossible to duplicate anew? Viability of Bingo also has to do with the jurisdiction (county and city), suitable location and other competitive factors (other bingo operations, proximity to Indian gaming, proximity to Casinos, etc.). Freelancers apparently still have a bingo operation, if that may answer your question as to viability in the Sacramento area. Quote Link to comment Share on other sites More sharing options...
garfield Posted January 20, 2013 Author Share Posted January 20, 2013 NOTE: I posted this in the G7 thread but it got buried in that discussion so I'm bumping it here. One more thought... Again, from the 990s: TOTAL REVENUE: 2009: $8,592,976 2010: $8,838,914 2011: $9,722, 125 TOTAL EXPENSES: 2009: $8,542,134 2010: $8,875,705 2011: $9,429,827 REVENUE LESS EXPENSES: 2009: $50,842 2010: ($36,791) a loss 2011: $292,298 So, in addition to the, roughly, $400,000 more that DCI paid out in "show expenses", they also added nearly $300,000 towards the G7's goal of building a $500,000 "reserve" (from the '10 G7 presentation). So, is DCI really broken? Is it on the edge of insolvency? Is it inept in its management of the activity's goal of paying out the maximum to the corps? Something changed in the past couple of years. Maybe it was DCI getting off their butts and doing better. Maybe it was the economy. Maybe it was the fear induced by the G7. Who knows? But if we assume that they are beginning to right the ship and the benefits are starting to accrue, I wonder if the G7 has considered that, if they leave, they won't be a part of whatever it is that DCI is doing to attain that success. If I were DCI, I'd not share their future plans with the 7 until that group capitulates and agrees to get off the bus and help push. To share those details with the 7 will only give them the chance to use that info against DCI and to their own benefit. The 7 don't need a seat at the voting table to be a part of whatever it is that brought DCI success in the past couple of years. The fact is that they weren't at the table, and DCI turned a nice profit. What does that say? 2 Quote Link to comment Share on other sites More sharing options...
IllianaLancerContra Posted January 20, 2013 Share Posted January 20, 2013 Setting aside YEA is the most diversified organization, Blue Devils and SCV stand out with the size of their revenue streams. Given that a lot of their revenue is bingo, my question is--are they at risk of a Gmen-like collapse in bingo earnings? And if so, what are they doing to hedge that risk? I guess the question here is, why did Gmen's bingo earnings collapse? I assume this was discussed some in the other thread, though I missed it. Too much competition from local casinos? What's the casino picture in California? And if bingo *is* a healthy revenue stream in California, are Mandarins and Pacific Crest hooked in? Can DCI or other corps set up California bingo operations elsewhere in the state, or are BD and SCV just lucky enough to have ownership of long-standing operations that would be impossible to duplicate anew? Wasn't there some change in CA law a few years back that had BD & SCV up in arms that it would hurt their bingo revenue stream? I guess they found a work'around or something... Quote Link to comment Share on other sites More sharing options...
garfield Posted January 21, 2013 Author Share Posted January 21, 2013 (edited) Wasn't there some change in CA law a few years back that had BD & SCV up in arms that it would hurt their bingo revenue stream? I guess they found a work'around or something... It was related to Indian casinos and bingo operations. BD's 990s led me to believe that they spent heavily defending their bingo franchise and, eventually, prevailed. Edited January 21, 2013 by garfield Quote Link to comment Share on other sites More sharing options...
troopers1 Posted February 12, 2013 Share Posted February 12, 2013 This is an attempt to show the overall financial health of the member drum corps on one page. Public companies are sometimes analyzed by using the "Quick Ratio." This compares the amount of their liquid assets to their liabilities. Liquid assets are considered to be cash or near-cash. Near-cash is things like certificates of deposit, bonds, etc. that can be quickly converted to cash without significant penalty. Ideally, any organization will have enough liquid assets to pay off their liabilities. Acceptable ratios seem to depend on the type of business being evaluated, but usually the minimum healthy level resides between 80% and 100%. Any ratio over 100% indicates that the organization can pay all their liabilities and still have cash to fund their operations. This ratio shows how well the organization can recover from unexpected events, like crashed food trucks. This chart shows this ratio for the average of the three years in garfield's database. On the left side you will see the total liquid assets. On the bottom are the total liabilities. The circles represent each drum corps. The size of the circle indicates the average relative profit or loss for that corps. Green circles mean profit, red circles mean loss. Any corps that falls below the "break even" line doesn't have enough liquid assets to cover their liabilities. The first thing that jumps out is that BD, SCV and The Cadets dwarf the rest of the activity. This is even more profound than when you compare the corps just by revenue. It shows that they have made a lot of money, and also have some of the best financial positions. In the next chart, we'll look at the same information without the "Big 3." 3 Quote Link to comment Share on other sites More sharing options...
troopers1 Posted February 12, 2013 Share Posted February 12, 2013 (edited) Here is the same data presented without the "Big 3". The goal is to have a big, green circle place as far to the left and as high up as possible. If a corps has a green circle, then their position on the chart is probably going to improve. The bigger the circle, the more rapid the improvement. If they have a red circle, the same will apply but in the opposite direction: their health is probably deteriorating. In this picture, things are not pretty for a lot of corps. Most fall below the break even point. Any that fall below the 50% ratio line are at significant risk of failure if anything happens to them: if their food truck goes out, if any part of their revenue stream is threatened, etc. Edited February 12, 2013 by troopers1 4 Quote Link to comment Share on other sites More sharing options...
garfield Posted February 12, 2013 Author Share Posted February 12, 2013 excellent visuals, Troopers1, for the numerically impaired. Reading your descriptions makes the circles come to life. Question: Where do accounts receivable fall in this analysis? Are they included? Is inventory available for sale included as "near cash"? Quote Link to comment Share on other sites More sharing options...
troopers1 Posted February 12, 2013 Share Posted February 12, 2013 excellent visuals, Troopers1, for the numerically impaired. Reading your descriptions makes the circles come to life. Question: Where do accounts receivable fall in this analysis? Are they included? Is inventory available for sale included as "near cash"? Neither accounts receivable nor inventories for sale are part of liquid assets - unless the definition used in the 990s thread differs from this: http://www.investopedia.com/terms/l/liquidasset.asp#axzz2KjGfQpld Quote Link to comment Share on other sites More sharing options...
N.E. Brigand Posted February 12, 2013 Share Posted February 12, 2013 Those are great, albeit scary, charts. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.