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Corp Sees Record Revenue in 2007
Fiscal year 2007 brought in the most revenue in The Corp’s 35-year history, company leaders announced Sunday.
The student-run company earned $3.8 million in total revenue last year and $1.4 million in gross profit, according to an annual report released at Sunday’s second annual Corp Shareholders’ Meeting in Sellinger Lounge.
Charlie Harrington (COL ’08), chairman of the board of the Corp, said the company’s success extends to all Georgetown students.
“Nominally, all students at Georgetown are shareholders,” he said.
The directors of each of The Corp’s seven services presented the successes, shortcomings and profit margin of their operations. In the record-breaking fiscal year 2007, which ended June 30, there was a 17 percent increase in gross profit, a 256 percent increase in net income, and a 49.5 percent increase in the amount of money given to philanthropy and scholarships.
Vital Vittles ranked at the top of the gross profit list with $460,328.71 in earnings, while the seasonal Book Co-op came in last, earning $13,230.31. However, this has been a consistent trend over the past four years due to the size of the services. Vital Vittles also became the first Corp service to make over $2 million dollars in sales.
Last year, $36,456 of The Corp’s revenue was given back to students. According to Harrington, The Corp has remained loyal to its mission as a non-profit organization to “give back to the students.” At the meeting, he announced two new scholarships — the Corp Textbook Scholarship, which is a need-based scholarship that will give six incoming freshmen $500 for textbooks, and “The Word,” awarded to six students who write the best essays on innovation.
Jillian Perlow (COL ’08), the chief financial officer of the company, said that the storage program was growing and that efforts to make The Corp “green” were also progressing. She said that there is widespread demand for green initiatives in particular, including more recyclable products and potential composting.
“Our customers and the Corpies were interested in seeing The Corp become a more environmentally friendly company,” she said. “Look out for more changes soon.”
Ted Reilly (COL ’08), president and chief executive officer of The Corp, said the recent closing of Movie Mayhem would allow the company to focus on improving the profitable services.
“Our time and our resources can best be used focusing on what we already have working,” he said. He did add, though, that he hopes to have DVD kiosks installed around campus in the future.
Corp leaders also discussed possible plans for the creation of a Corp Google calendar, the expansion of Corp catering, and potentially the creation of a new service in the new McDonough School of Business building.
“We’re putting a bid into the new business school to open a coffee-shop type store,” said Reilly. “The hardest thing to get on campus right now is space so, for now, much of our expansion is online.”
The board of directors introduced the newly elected leadership, which will take office Friday. Jesse Scharff (COL ’09) will be the next president and CEO, Adah Berkovich (SFS ’09) will become chief operating officer, and Kevin Lynch (COL ’09) will be the CFO.
Harrington said that new ideas are central to the continued success of The Corp.
“Your ideas are what started this company in the first place, and that’s why we’re lucky enough to stand before you today,” he said to shareholders at the meeting.
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Wait, The Corp gave back $36,456 out of its $1.4 million in profits? That works out to 2.6%. Not bad, but not exactly something to brag about.
So, a not for profit made 1.4 million in profit. Interesting. How about this. Seeing as the Corp is "nominally" student owned, why not turn it into an actual service for students? Instead of over charging for nearly everything, make a discounted price list for GOCard holders. That would actually amount to giving back to the students.
Great. Every time I overpay for something at UG, Mug, or VV, I'll remember the profit they ran...
$36k of giving on a $1.4 million profit? That's only 2.6%! Not of revenue, but of PROFIT.
I no longer drink coffee in the Corp's coffee shops. The prices don't seem any lower than Starbucks or Saxby's, and the quality at SB and Saxby's is significantly higher, as is the professionalism of the service and the atmosphere.
Maybe the Corp should cut all coffee prices by a dollar and spend a couple hundred K of their profit that way. That way, students wouldn't feel like they're being bilked for convenience. I, for one, would love to support the Corp's coffee shops (despite the lower quality of the coffee products), but only because they're closer to campus and only if the prices were more reasonable for the lower quality of the product.
That's an enormous profit. Doesn't sound like it's being run as a not-for-profit -- where are the price reductions?
Gross profit is before operational expenses. If you look at the Corp's annual report, given out at their shareholders meeting this past weekend, you'll see that net income (the actual money they have at the end of the year) was $169,000, most of which came through investments.
Before getting upset, check out your facts.
OK so they should report Operating Profit, not Gross Profit. 3.6% margins are not worth writing a front page article about.
This article could have been framed better by saying that the Corp's Net profits are low, but low precisely because (maybe) they keep their prices low. The way the article is written, it seems like the Corp is gouging its customers and hoarding its money
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