BY DEBBIE PAGE

The Troutman ABC Board reported another record-breaking fourth quarter and fiscal year at its monthly meeting on Wednesday night. With the board’s building loan expiring at the end of July, members voted to pay off the $457,414 loan debt on the building on Thursday morning to avoid a significant interest rate increase.

The board used its retained working capital of $589,368 and $138,604 saved in a specific capital project fund to pay off the debt, leaving the board $160,000 in savings and a working capital of $297,628 to continue store operations.

The original note was for seven years and due to be refinanced or paid off by July 28.

Board chairman Layton Getsinger said the board “determined that between the projected new rate of 6.75 to 6.91 percent and what we can make in savings there is a nearly a 4 percent point spread. Our expiring loan rate was 3.47 percent.”

“Therefore we felt paying off this store will allow for us to go into the second store debt free.”

SECOND STORE

The second store’s progress has been delayed by issues with the Town of Mooresville staff over releasing the land for Troutman annexation. The board purchased the site, located just south of the southern Flower House Loop entrance to Highway 21, for $270,000 in cash last summer.

The board believes brisk sales will quickly rebuild the store’s working capital reserves in the six to 12 months before the second store may continue to progress.

Board member Wes Edmiston said a possible slow down in residential building and possible recessionary pressures are also being watched before proceeding.

After the land is transferred to Troutman’s planning district, the property must be posted for intent to build an ABC Store and annexed by the town and zoned to highway business. The ABC Board must also submit a business plan and get ABC Commission approval.

If approved, the board would then draft a Request for Proposals for a design/build contractor.

FOURTH QUARTER SALES

Getsinger said strong June sales, up 23 percent, helped cap another strong year. Sales were also up in April a modest 1 percent, followed by 8 percent in May, for a 10 percent increase over the fourth quarter of 2021-2022.

Fourth quarter store sales reached $824,631, compared to $746,723 last year, for a $77,909 increase.

Distributions for the fourth quarter include $11,631 for the Town of Troutman and $2,907.75 for the town’s four designated entities: Friends of Troutman Library, ESC Park, Troutman Parks and Recreation, and Troutman area I-SS schools (Troutman Elementary and Middle, South Iredell High, and CATS).

The Troutman Police Department received $3,993, and the Drug-Alcohol Coalition of Iredell (DACI) received $5,590 for alcohol and drug education efforts, including the annual Iredell Walk for Recovery (September 30 this year) held at ESC Park.

The store’s fourth quarter net profit was $71,131 or $13,025 (a 22 percent increase) over last year during the same period.

Getsinger said the required annual audit is expected to take place at the end of this month, with results available in mid- to late-August and reported to the Troutman Town Council at the September meeting.

2022-2023 FISCAL YEAR RECAP

The budgeted revenue for 2022-2023 was $2.8 million, but sales reached a record $3,207,666, representing a 15 percent increase above projected revenue. Revenues for the first quarter were $753,737 (27 percent of budget), second quarter: $930,774 (33 percent), third quarter $698,523 (25 percent), and fourth quarter $824,631 (29 percent).

Getsinger said the figures equate to an average of $10,347 per selling day, of which there were 310 in the 2022-23 fiscal year.

Distributions for 2022-2023 were $90,830 to the town and its entities, $20,537 to alcohol education (DACI), and $14,669 to the Troutman Police Department, for a total of $126,036 for the community.

The budgeted net profit after distributions was $88,032, with an allowance of $25,000 in admin cost for the new store, but that expense did not occur. Actual net profit after distributions was $260,517, or $172,485 over budgeted profits. Profits were 8 percent of net sales.

STORE HISTORY

Since opening on December 1, 2016, the store has experienced $14,640,706 in net sales, according to Getsinger.

Total store distributions since opening in December 2016 include $332,051 to Troutman and its four entities, $74,768 to DACI for drug and alcohol education, and $53,406 to the Troutman Police Department.

The store has earned a total net profit of $1,038,940 after distributions since opening, which is 7 percent of sales.

Of the profits, $941,414 was used for adding 2,000 square feet to current store ($205,000), purchasing 7.9 acres for the second store ($279,000), and paying off the Main Street building loan ($457,414).