The DCI 990s

[garfield]

Thanks for the reprieve re contributions. I'm not sure my 100 year budget would have survived its toll.

I have re-read some of your 2012 posts and, as is true today, there were questions re the data and, somewhere along the way, you and/or others raised the hope that the corps would offer answers.

Did any corps do so and, if so, are you at liberty to disclose the responses?

Also, are these 990s audits or reviews or compilations? I ask only to determine whether explanatory footnotes are available to tell the full accounting story.

Not sure what your first sentence means, but...

I heard from many directors and corps board members, some on the record, some off.

It should suffice to say that none ever suggested that the numbers and the explanations I applied were misleading, much less wrong. The Treasurer of SCV followed along and, IIRC, never corrected any numbers and clarified a couple of accounting questions I had, such as expensing or writing down assets.

These are the 990s filed by the accountant and signed off on by the corps director or executive. Unlike corporate annual or quarterly reports, there is no text accompanying these filings so, no, there are no explanatory footnotes. In my experience, however, most corps are more than happy to talk with you in person or answer a question via email.

[garfield]

Next, "Revenue" is broken down into four categories:

1. Contributions and Grants
2. Program Service revenue
3. Investment Income
4. Other revenue

For the four years, Contributions and Grants looks like this:

2009: $327,262
2010: $352,720
2011: $710,196

2012: $357,499

This is a bit misleading because, in 2011, Steve Vickers at Drum Corps World donated a collection to DCI that was valued at $350,000. Excluding that one-time contribution, this category appears remarkably static.

[garfield]

Alright, let's look at "Program Service Revenue". This is the category that includes income from shows and the like, and generally has a couple of income items that comprise it.

Here's the top line number:

2009: $8,040,721
2010: $8,121,373 (plus $80,652 [1%] over 2009)
2011: $8,670,094 (plus $548,721 [6.7%] over 2010, plus $629,373 [7.8%] over 2009)

2012: $8,805,904 (plus $135,810 from 2011, plus $684,531 from 2010, plus $765,183 from 2009)

Here again, an impressive gain both year-to-year and over the four years.

There are two categories that make up "Program Service Revenue". There's "Program Revenue" and "DCI Magazine" (although the magazine is called "Unrelated Business Revenue").

Program Revenue:

2009: $7,824,857
2010: $8,001,731 (plus $176,874 [2.3%] over 2009)
2011: $8,540,384 (plus $538,653 (6.7%] over 2010, plus $715,527 [9.1%] over 2009)

2012: $8,668,435

DCI Magazine

2009: $215,864
2010: $119,642 (minus $96,222 [44.6%] from 2009)
2011: $129,710 (plus $10,068 [8.4%] from 2010, minus $86,154 [40%] from 2009)

2012: $137,469

So, it's obvious that "Program Revenue", which is everything other than the magazine, like shows, clinics, and "programs" was the primary driver of the gains in overall Revenue.

Edit: these are my comments from the original thread:
We know there weren't more shows in 2010 or 2011 (in fact, I seem to remember seeing that there were a few less shows each of the years), so it must mean that there was higher revenue per show or event. Could be more fans paying the same price or it could be the same number of fans paying a higher ticket price. It could also be fewer fans paying a substantially higher ticket price.

Don't I remember seeing that overall attendance was up in 2011 (I know it was in 2012), and my ticket price to finals was the same over the three years. So I guess we see here the impact of more fans in the stands.

Anyone remember the attendance stats from 2012?

Edited August 18, 2014 by garfield

[garfield]

Pause for comments, questions, complaints.

Note: All complaints will result, in every case, in a prompt and friendly refund of all membership and service fees.

[Jeff Ream]

I think there's some meat on the bone in that first post, if anyone wants to take a stab at 'splainin' what those numbers seem to be telling.

ALL TOGETHER NOW!

!! REVENUE - EXPENSE = NET PROFIT (LOSS)

Net Assets are what's owned minus what's owed.

Beuhler?

I thought 2012 was touted to be a great year so why the loss?

[barigirl78]

Alright, let's look at "Program Service Revenue". This is the category that includes income from shows and the like, and generally has a couple of income items that comprise it.

Here's the top line number:

2009: $8,040,721

2010: $8,121,373 (plus $80,652 [1%] over 2009)

2011: $8,670,094 (plus $548,721 [6.7%] over 2010, plus $629,373 [7.8%] over 2009)

2012: $8,805,904 (plus $135,810 from 2011, plus $684,531 from 2010, plus $765,183 from 2009)

Here again, an impressive gain both year-to-year and over the four years.

There are two categories that make up "Program Revenue". There's "Program Revenue" and "DCI Magazine" (although the magazine is called "Unrelated Business Revenue").

Program Revenue:

2009: $7,824,857

2010: $8,001,731 (plus $176,874 [2.3%] over 2009)

2011: $8,540,384 (plus $538,653 (6.7%] over 2010, plus $715,527 [9.1%] over 2009)

2012: $8,668,435

Would the income from Fan Network and the movie theater showings be included in this category?

If the answer to that is "yes", could there have been an increase in Fan Network revenue from 2010 to 2011. I can't recall any specific changes that year. But, over time, they seem to have added more and more live presentations.

[MikeRapp]

Forgive me for the potentially stupid question, but what revenues generated by each corps/organization are not shared with DCI?

[garfield]

Would the income from Fan Network and the movie theater showings be included in this category?

If the answer to that is "yes", could there have been an increase in Fan Network revenue from 2010 to 2011. I can't recall any specific changes that year. But, over time, they seem to have added more and more live presentations.

I'm sure the Fan Network adds to revenues, and I'm pretty sure it shows up here. There are no other categories in which it would be listed shown on the forms.

But the big boost from FN came in 2013 with the broadcast of Finals. We won't see those numbers until the 2013 990s are posted sometime early next year.

[garfield]

Forgive me for the potentially stupid question, but what revenues generated by each corps/organization are not shared with DCI?

I think you have it backwards. Revenue generated by DCI is shared with corps, corps don't funnel money into DCI. Any money a corps can raise on its own stays with that organization. Revenues generated by DCI pay expenses (including payouts to corps throughout the year), then any overage is left in DCI, the org.

One of the expectations is that DCI maintain a half-million dollar (+/-) cushion in assets. They seem to have still met that expectation, although they tapped assets to pay for 2012 to the tune of about $100m.

[IllianaLancerContra]

Well, as it just so happens...

I'm one of the few brave souls who hosts a drum corps show so I know a little about the nature of "The Contract" with DCI. Out of respect I'll not divulge specifics so don't ask, but, essentially, a show host "purchases" a show from DCI. This includes, and is primarily, providing the host with a line-up of corps.

Each of those corps costs a different amount based upon several things, not the least of which is their finishing placement from the prior year(s). Open-Class corps are charged on the same basis.

It is a flat fee that the host is responsible for, and it MUST be paid by the time the show steps off. The host's job is to fill the stands and make enough to cover "The Contract" and have a little profit. A rainout? Tough luck, the host takes the risk. (The actual structure is a little more finessed than this such that there is some sharing of risk but, essentially, if the corps takes the field - even in standstill - and does a performance, they are entitled to be paid so the fee is paid.) If the day of show is cloudy and rainy and the stands are empty while the corps perform the host takes the hit.

FWIW, the idea of 'purchasing' a show drom DCI is not a concept unique to that organization. I know DCM (RIP) worked the same way. I don't know about DCI, but DCM had a sliding scale - a show with, say, 3 DCM finalists and 3 non-fianalists (for example, Glassmen, Geneseo Knights, Emerald Knights, Illiana Lancers, Wausau Story, Skokie Imperials) cost more than a show with 4 non-finalists (for example, Vaqueros, Sundowners, Capitolaires, Racine Scouts).