A Note from the Executive Vice President and CFO
The 2014 fiscal year was another exceptional one for WHYY measured in terms of financial results, increases in all levels of membership and growth in contributed income. Within the positive membership trends we see "loyalty" reigning with tremendous growth in the auto-renewing or sustainer 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) and individual major gifts. The increase in net assets means that for the ninth out of the past ten years, our total revenues exceeded expenditures while expanding programming. This demonstrates sustainability and provides additional resources for investment in our community programs and activities.
We were very active in creating original content during 2014. Our production of Pennsylvania Ballet at 50 aired nationally as part of the PBS’s arts series. We produced and presented the documentary based on the 50 year history of the Cape May Ferry, Billion Mile Journey: The Cape May-Lewes Ferry. Our new Arts & Culture program, Articulate with Jim Cotter, commenced production with the first weekly episode featured in January, 2015. Online we are pleased to see growth in NewsWorks.org, which has surpassed 400,000 monthly visitors.
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. We have also been successful in rolling out Flash Media Labs in several public and private schools.
The 2014 fiscal year continued our large investments in production and broadcasting expenses as a percentage of WHYY's total budget now exceeding 70% for the first time. 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 6.5 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 50 percent increase in the number of automatically renewing members.
We have many challenges ahead. Although the economy is stabilizing, the impact is felt in the slow pace of foundation grants and support for capital projects. The support from the Corporation for Public Broadcasting remains at $2 million; however, there continues to be significant uncertainty at the federal level, which could materially impair our annual CPB grant. We continue to grow both our contributed and earned income to seed future productions with restricted grants, which were at an all time high at the end of the fiscal year.
Overall, fiscal year 2014 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||2014 Fiscal Year||2013 Fiscal Year|
|Contributions receivable, net of current portion||$1,302,000||$840,000|
|Property and equipment||$15,823,000||$16,847,000|
|LIABILITIES AND NET ASSETS|
|Long term liabilities||$6,103,000||$6,903,000|
|Total liabilities and net assets||$33,294,000||$33,408,000|
Statement of Activities — Support, Contributions and Revenue
|Support, contributions and revenue||2014 Fiscal Year||2013 Fiscal Year||FY14%|
|Program funding and underwriting||$11,228,000||$10,372,000||36%|
|Other income (loss)||$2,123,000||$1,428,000||7%|
|Total support, contributions and revenue||$31,275,000||$28,516,000|
Statement of Activities — Expenses
|Expenses||2014 Fiscal Year||2013 Fiscal Year||FY14%|
|Production and broadcasting||$21,097,000||$19,174,000||70%|
|General and administrative||$1,942,000||$2,026,000||7%|
|Change in net assets||$1,259,000||$369,000|