In its strongest financial showing since 1992, the Corp announced an increase in net income of nearly 50 percent and a record-setting fiscal year 2005, according to the organization’s annual report. But while most of the Corp’s services saw increased profits, three suffered losses in net income, with Uncommon Grounds’ seeing a decrease of nearly 70 percent

Posting a net income of $113,425.75, the Corp also reported a total revenue increase of 2.5 percent and a 4.6 percent increase in gross net income.

Jon Carpenter (MSB ’06), president and CEO of the Corp, called the past year a turning point for the organization. He said that the company’s financial success is especially remarkable considering that recent market trends have not been in the Corp’s favor.

“A major move in FY ’05 was the Upper anagement’s choice to adopt [Movie Mayhem Director] Greg Booth’s (MSB ’06) plan to make Movie Mayhem into a delivery model that better serves student needs as that market changes,” Carpenter said.

“The increase in sales across several stores reflects how well directors responded to student needs,” he added. “Visible initiatives like the MUG Fast Lane are only a small part of a larger effort to improve upon how we interact with customers.”

The MUG Fast Lane is an additional service lane during the shop’s busiest hours for items that do not require blending or mixing, such as coffee or tea.

Carpenter said he was impressed by the broad changes initiated by the Corp’s Upper Management last year.

“It went from [a culture] that was more about partying than customer awareness, to one where professionalism – with a college flare – is prioritized,” Carpenter said.

Vital Vittles took in the highest revenue of any Corp service, with $1,707,263.77 in earnings as well as a near 50 percent increase in operating income.

Vital Vittles Director Frank Balsamello (COL ’07) explained in the report that these successes derived largely from improved purchasing efficiency.

“Revenues at Midnight Mug and Hoya Snaxa saw incredible revenue increases of 30 percent and 21 percent, respectively,” Corp Chief Financial Officer Chirag Dedania (SFS ’06) said.

Following a negative net income in 2004, Hoya Snaxa reported its first-ever positive net income during the 2005 fiscal year.

“The end of FY ’05 marked the beginning of the Snaxa identity,” Hoya Snaxa Director Emily True (COL ’06) wrote in the report. “Snaxa is poised for continued profitability and growth as it continues to improve life in the Southwest Quad.”

Not all of the services, however, reported significant increases in income.

Uncommon Grounds in the Leavey Center experienced a 68 percent decrease in net income from fiscal 2004, with a drastic decrease in sales and a slight hike in operating expenses.

Uncommon Grounds Director Joseph Donahue (COL ’06) explained that a number of changes were instituted to insure that that problems encountered in the past would not be repeated in future years.

“We are confident that the Uncommon Grounds of today is a considerable improvement from the Uncommon Grounds of a year ago,” he wrote. “We look forward with much anticipation to the progress forecasted for FY 2006.”

Despite a substantial decrease in the Corp’s Shipping and Storage’s net income from 2004, the service increased its gross profits from 83 to 90 percent of its revenues, reflective of superior efficiency in services despite decreased users.

Although ICC’s More Uncommon Grounds posted a slight decrease in net income from 2004, changes in staffing, customer service and efficiency yielded revenues over $200,000, a first for the service.

Movie Mayhem and the Book Co-op, however, also saw negative net incomes of $23,459.34 and $8,571.81, respectively.

“Time will show the extent to which Georgetown students seize upon the benefits of a movie delivery service [such as Movie ayhem],” Carpenter said.

He said that there are no plans to close the Book Co-op and added that many improvements have been made, including a new book reservation system that began this fall and will be fully in place for the fall 2006 semester.

The Corp also set records for philanthropic giving this past year, donating $22,000 in grants and scholarships to various students and student groups, including Hoyathon, Re-Imagining Georgetown and NSO.

At the end of 2005, the Board of Directors established the Corp Philanthropy Committee to allow employee representatives to oversee a large discretionary fund designated for the greater campus community.

The Board has allotted a projected total sum of $46,000 in philanthropic giving for 2006.

“The philanthropic pledge of the Board of Directors for FY ’06 is as historic as the income figured for FY ’05,” Adrian Ohmer (SFS ’06), chairman of the Board of Directors, said. “We’re proud to affirm that Georgetown students remain the primary beneficiaries of Corp successes.”

Carpenter said he believes the results of the past year will have positive effects for years to come, adding that these changes will allow the next Upper Management to more easily seize upon opportunities for growth as they present themselves.

“The Corp now operates over a solid foundation of internal [checks] and balances, inventory tracking and significantly reduced costs,” he said. “Visibly, store aesthetics, product selection and customer service quality received great attention.”

The Corp is the largest student-owned-and-operated corporation in the United States, employing over 200 Georgetown undergraduates and operating six permanent and four seasonal services.

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