On a quick initial read of the financial statements that were delivered to shareholders’ doors today, a few things jumped out.

The bad:

• We have disturbingly little operating cash.  At 11/30/15, we had just over $100k in operating cash (with almost $3MM in outstanding payables).  This is far worse than previous years.
• After last year’s big write-off, commercial tenants’ arrears have already started creeping back up (up another $100k from last year).
• Flip tax collections were down over $1MM vs. 2014.

The good:

• Heating costs are down, so it looks like the boilers are paying off.  There’s also a note that they are fully paid off.
• Security costs are down, so it looks like bringing security in-house is paying off.
• In the notes, it is revealed that the base rent Icon pays for the garage is $1.08MM per year, which is more than $200k more than the total garage charges we collected from shareholders in 2015.  So even ignoring any costs that are being shifted to Icon (like maintenance/repairs for the gates that are always breaking), the co-op is immediately making more money from this arrangement than from the old arrangement.  And based on the note, it sounds like there is the possibility for us to share in additional revenue under unknown circumstances.

The good and bad:

• The long-running public-adjuster lawsuit was finally settled for $950k.  This seems like a lot of money to pay to someone for failing at his job, but we had fought it for many years and the latest rounds in court had not gone our way.  At least it’s done and we’re not paying lawyers to continue fighting it.