Log in

VSDA Exceeds 2003 Budget Expectations

26 Mar, 2004 By: Kurt Indvik

The Video Software Dealers Association (VSDA) generated better-than-anticipated performance in its invested reserves as well as income from its trade shows in fiscal 2003. The gains propelled the organization to a net positive balance of about $371,000 on an accrual basis for the 2003 fiscal year, according to the association.

The 2003 budget anticipated a $9,000 net positive balance.

Preliminary figures were presented to the VSDA board of directors during a meeting of the board in Atlanta March 19. Final figures on revenue and expenses were not made available, pending a final audit sometime in April.

The 2003 budget forecasted $3.96 million in revenue, including an annual accrual revenue allocation of $700,000 from the 1998 purchase of the VSDA's trade shows that resulted in a joint venture company, Home Entertainment Events (HEE), in partnership with Advanstar Communications (publisher of Video Store Magazine). Accrual revenue from that deal is to be spread equally over a 10-year period.

In 2002, the association lost $780,000 on an accrual basis.

According to Sean Bersell, VP of public affairs for the VSDA, the association's aggressive cost cutting also contributed to the VSDA's positive financial performance last year. “It's been a major focus for all of us,” Bersell said.

The association has managed to trim salaries and general and administrative costs almost 40 percent since 2001, according to Bersell. The VSDA also has reduced its office space and renegotiated its lease at its Encino, Calif., headquarters.

The association's $2.6 million 2004 expense budget calls for a net positive balance of $260,000 on an accrual basis. The board has set as a goal to achieve a net positive budget on a cash basis by 2005.

The challenge will be to develop additional revenue streams, including membership dues expansion, to help the association grow beyond its current reliance on accrued revenue from its trade show sale as a significant revenue source.

To that end, the VSDA is planning on some significant organizational initaitves, which it plans on announcing Monday during a special presentationn with VSDA board members in Las Vegas.

Add Comment