A Note from the Senior Vice President and Chief Financial Officer
The 2013 fiscal year was another exceptional one for WHYY measured in terms of financial results, increases in members along with growth in contributed and earned income. Within the positive membership trends we see "loyalty" reigning with tremendous growth in the auto- renewing membership category. All of these positive financial outcomes supported the continued investment in content and program expansion.
We maintained financial stability as our net assets increased while maintaining our goal to invest free working capital in program expenditures. This was accomplished by carefully controlling administrative expenses but was primarily due to the growth in membership (especially sustainers), corporate underwriting and individual major gifts. The increase in net assets means that for the eighth out of the past nine years, our total revenues exceeded expenditures while expanding programming. This demonstrates sustainability and provides additional resources for investment in our community programs and activities.
The groundwork for our next national documentary, showcasing the 50th anniversary of the Pennsylvania Ballet commenced and will be presented by PBS on May 2, 2014.
The Dorrance H. Hamilton Public Media Commons continues to offer a full schedule of media courses, hosts many member events and has generated income from rental activity. NewsWorks.org, our online home for regional news and civic dialogue, has earned critical acclaim and is growing in content and the number of users. Best yet, NewsWorks.org is cultivating the next generation of public media consumers.
The smooth operation of the five former New Jersey Network radio stations in southern New Jersey completed in fiscal 2012 ensured the residents of New Jersey continued to have access to trusted news and information programming. As a result of our expanded presence, New Jersey membership and underwriting revenues have shown significant growth.
The 2013 fiscal year was the seventh year in a row of large investments in production and broadcasting expenses as a percentage of WHYY's total budget, fundraising costs and general and administrative expenses continued their downward trend. In other words, more and more of your contributions are being invested in programs and services, with only 7 percent of all expenditures earmarked for general and administrative costs.
With the continued engagement of the WHYY-FM audience, we grew the number of members in our files by 3 percent compared with declines at most other major public media providers. We also recorded another year of net member revenue increases and a 27 percent increase in the number of automatically renewing members.
During the year we also closed on a new banking relationship providing more favorable terms for managing our line of credit and long-term financing at a significantly lower cost.
We have many challenges ahead. The economy continues to be sluggish, and that impact is felt in the slow pace of foundation grants and support for capital projects. The support from the Corporation for Public Broadcasting has stabilized at $2 million; however, there continues to be significant uncertainty at the federal level, which could materially impair our annual CPB grant. Overall, fiscal year 2013 was a very positive year for WHYY, and we are in a strong position to continue building our programs and services for Pennsylvania, New Jersey and Delaware.
— A. William Dana
Statement of Financial Position
|ASSETS||2013 Fiscal Year||2012 Fiscal Year|
|Contributions receivable, net of current portion||$840,000||$1,439,000|
|Property and equipment||$16,847,000||$18,215,000|
|LIABILITIES AND NET ASSETS|
|Long term liabilities||$6,903,000||$7,564,000|
|Total liabilities and net assets||$33,408,000||$34,091,000|
Statement of Activities — Support, Contributions and Revenue
|Support, contributions and revenue||2013 Fiscal Year||2012 Fiscal Year||FY13%|
|Program funding and underwriting||$10,372,000||$9,968,000||36%|
|Other income (loss)||$1,428,000||$677,000||5%|
|Total support, contributions and revenue||$28,516,000||$28,230,000|
Statement of Activities — Expenses
|Expenses||2013 Fiscal Year||2012 Fiscal Year||FY13%|
|Production and broadcasting||$19,174,000||$19,426,000||68%|
|General and administrative||$2,026,000||$1,858,000||7%|
|Change in net assets||$369,000||$6,000|