We have finished closing the first quarter for FY18 (Fiscal Year 2018). Combined sales for Arcata and Eureka were at $8,677,404, below FY17 by $258,467. This was a challenging sales quarter due to road work in every direction—Highway 101 to the north and south, Highway 299, and Highway 36 were all closed at some point this spring. We were also going up against incredibly strong numbers from the previous year.
Payroll & Benefits were up $498,124 over last year, mainly due to higher than normal health care costs which accounted for 85% of that number. As a self-insured employer, we see costs fluctuate wildly. April, May, and June totaled $787,374 compared to last year at $376,210—that’s more than double. Each claim has a significant negative financial and personal impact to an employee. They neither asked for a health issue, nor should they feel responsible for additional expense to the Co-op. Payroll expenses are only slightly up from the previous year, and mostly due to additional staff in anticipation of the Eureka remodel.
Since the first quarter of FY17, our member-owner shares value has grown by $266,570. This has greatly improved our cash situation in a time of difficulty—we appreciate all who have invested! We depend on your loyal patronage and look forward to improved financials in the second quarter.