Annual Report 2015 Website Style - Centra Sota · Annual Report 2015. A MESSAGE TO OUR MEMBERS......
Transcript of Annual Report 2015 Website Style - Centra Sota · Annual Report 2015. A MESSAGE TO OUR MEMBERS......
Commitment
Centra Sota Cooperative Annual Report 2015
A MESSAGE TO OUR MEMBERS...
The theme of this year's Annual Statement, “Commitment”, very accurately describes what Centra Sota Cooperative is all about. The pictures in this year's annual statement help to illustrate activities taking place for the long-term at your cooperative.
As you can see in the financial statements, we had a very good year. Sales during fiscal 2015 were nearly $160 million and we achieved Net Earnings of $5 million. Both of these reflect lower results as compared to the prior few years as is the case with many companies involved in Agriculture. We are now in the middle of a much lower commodity price environment as compared to 2012-2014. This is not only reflected in our customer's operations, but also in ours. Being an extension of your farm, Centra Sota may also experience lower sales and earnings until the current down cycle reverses itself.
When any industry enters a downward cycle, many companies react by slashing expenses and curtailing investment spending. It seems almost on a daily basis I read an article showing companies laying off employees and closing facilities. This is exactly the opposite approach Centra Sota is taking. We will monitor expenses and keep them in control but at the same time we are making significant investments on your behalf. Over the past 2 years we have invested over $12 million in new equipment and facilities to better serve you. When our current projects in Agronomy at St. Martin, Little Falls, and Watkins are completed we will have invested an additional $7 million. Having replaced our remaining Agronomy facilities in Cokato, Watkins and Santiago in recent years, we now have all state of the art facilities to serve our members for many years to come. In addition, we have upgraded facilities and equipment in our Feed Division and Energy Division to increase capacity for the foreseeable future.
2015 Interns
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This is our commitment to our member owners to take the very long-term approach, understanding agriculture is a very cyclical industry. We understand commitment through ups and downs.
The bottom line is really pretty simple – Centra Sota Cooperative is in the business of supplying agricultural supplies and services to our customers. Our customers also own this company as cooperative patrons. Therefore, we believe based on these two statements, investing in helping service your needs better only makes good, sound sense. The price of these investments is high, but we are confident this needs to be done.
As significant as these investments are, we feel the best investment we make is in our people. The employee team at Centra Sota is the real difference maker in setting us apart from other choices you have for a supplier. We will continue to invest in our people – hiring, developing, and retaining people to add value to your operation.
All of the investments Centra Sota makes in facilities, equipment or people, are made in direct alignment with the Brand Vision of your company: To be the partner you can count on, providing real solutions, for today and tomorrow.
Jeff JohnsonCEO/General Manager
Dave RuhlandChairman, Board of Directors
OFFICERS & DIRECTORS
Eden ValleyBrainerdBuffaloSt. CloudSt. CloudMontroseBuffaloLittle FallsUpsalaPaynesvilleAlbany
Dave RuhlandSteve SievekBill HolthausDennis LiethaTom HammerRodney DomjahnCharles KrauseKen WelleRoger RoerickDon ThomesVern WillenbringJeff JohnsonDan Malinski
ChairmanVice ChairmanSecretaryDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorCEO/GMCFO
Waverly
Buffalo
Maple Lake
Clear Lake
Santiago
Watertown
Cokato
Annandale
WatkinsEden Valley
St. Martin
AlbanySauk Centre
UpsalaLittle Falls
Harding
To be the partner you can count on, providing real solutions for today and tomorrow.
To be the partner you can count on, providing real solutions for today and tomorrow.
Our Vision:
SERVING THESE LOCATIONS:
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STATEMENT OF OPERATIONS
This summarized financial information has been extracted from the complete financial statements and auditor's opinions which are on file in the cooperative's offices.
SalesCost of Sales Operating Revenue
Expenses:Employee ExpenseDepreciationInsuranceOther Operating ExpensesTotal Operating Expenses Net Operating Margin
Other Income (Expense)Interest ExpenseCollection/Legal ExpensePartnership Income — MLN, LLC.Other Revenue and Expense Net Other Income (Expense)
Local Net SavingsPatronage IncomeNet Income Before TaxesIncome Taxes
Net Savings
2015$159,992,862$134,893,793
$25,099,069
$10,972,864$2,681,783
$709,890$9,508,475
$23,873,012$1,226,057
($322,836)($260,985)
$125,837$1,763,197$1,305,213
$2,531,270$3,345,268
$5,876,538($805,327)
$5,071,211
$168,639,691$144,565,194
$24,074,497
$9,933,083$2,307,853
$557,375$9,067,184
$21,865,495$2,209,002
($267,305)($203,942)
$117,836 $1,316,262
$962,851
$3,171,853$3,010,093
$6,181,946($795,302)
$5,386,644
2014
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BALANCE SHEET
ASSETS
LIABILITIES
EQUITY
Current Assets:CashReceivablesLess: Allowance for Doubtful AccountsInventory and Other Current Assets Total Current Assets
Other Assets:Fixed AssetsLess: Accumulated DepreciationNet Fixed AssetsInvestments in Other Cooperatives Total Assets
Current Liabilities:Accounts PayablePatronage Dividends PayableOther Current LiabilitiesTotal Current LiabilitiesLong Term Liabilities Total Liabilities
Member EquityCapital Reserve Total Patron Equity Total Liabilities and Patron Equity
$ 550,641 19,631,605 (1,958,210)22,669,26540,893,301
40,497,507(23,942,940)
16,554,56713,795,00071,242,868
9,207,5941,253,480
16,706,29527,167,369
123,60027,290,969
24,636,26019,315,63943,951,899
$ 71,242,868
2015 2014
$ 388,608 18,702,716 (1,869,196)24,142,591 41,364,719
37,004,765 (21,801,276)
15,203,489 12,661,994 69,230,202
9,677,235 1,292,822
17,568,965 28,539,022
298,959 28,837,981
23,068,027 17,324,19440,392,221
$ 69,230,202
Fertilizer
Feed
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
2015
11,9
79,2
26
10,2
86,1
36
Seed & Chemical Sales in Dollars
Seed
Chemical
Fertilizer & Feed Sales in Tons220,000
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
57,8
24
198,
805
67,9
48
196,
602
55,6
79
169,
506
64,8
90
188,
387
HISTORIC SALES VOLUMES15,500,000
14,500,000
13,500,000
12,500,000
11,500,000
10,500,0002013 201420122011 2015
Petroleum Sales in Gallons
2011 2012
10,1
35,1
22
9,00
9,27
7
2013
11,6
90,3
33
10,5
86,8
67
2014
13,7
89,9
53
11,1
57,1
22
15,250,78715,039,13012,389,03411,637,54110,886,032
2013 201420122011 2015
63,1
82
201,
564
12,5
72,6
03
12,3
16,1
526
FIVE YEAR HISTORICAL INFORMATION
Buffalo, MN 55313800.229-1464
www.centrasota.com
Serving: Albany, Annandale, Buffalo, Clear Lake, Cokato, Eden Valley, Harding, Howard Lake, Little Falls, Maple Lake, Santiago, Sauk Centre, St. Martin, Upsala, Watertown, Watkins, Waverly
To be the partner you can count on, providing real solutions, for today and tomorrow.
Sales
Local Net Savings
Total Net Savings
Cash Returned to Members
Working Capital
Local Return on Local Equity
Ownership Percentage
Local Ownership Percentage
Employee Efficiency Ratio
2014
$168,639,691
$3,171,853
$5,386,644
$2,275,954
$12,825,697
11.02%
58.34%
49.94%
38.94%
2013
$177,803,168
$4,111,458
$6,809,087
$1,902,138
$14,258,667
16.04%
61.89%
52.84%
38.32%
2012
$162,438,205
$4,333,507
$5,754,459
$1,511,756
$10,643,430
20.35%
45.15%
35.14%
37.65%
2011
$144,000,380
$2,574,264
$3,234,374
$926,742
$6,996,209
14.97%
51.01%
38.89%
39.12%
$159,992,862
$2,531,270
$5,071,211
$1,470,823
$13,725,932
8.10%
61.69%
53.37%
40.66%
2015