CrossRef/PILA Annual Meeting

1
CrossRef/PILA Annual Meeting

• September 16th, 2003

2
Financial Review

• Anthony Durniak, Treasurer

3
The financial backbone for the reference linking
backbone

• Discussion of how PILA has matured from an
  organization dependent on member loans (2000-01)
  to one with positive operating cash (2002)
• Review of audited financials 2002
• Review of 2003 financials and full-year forecast
• Review of strategic financial issues facing
  CrossRef and the impact on dues

4
Revenues and Expenses 00-03( in Millions)

• 2000 June launch/1st generation system
• 2001- 1st full year
• 2002 CrossRef 2.0 system August/first operating
  surplus
• 2003 Continued enhancements/cash build up to
  repay 1st loans

5
2002 Marked a Milestone on the Path to Becoming
Self-sustaining
Source 2002 Audited Financials
6
2003 continues on that path
Source 2003 Management Reports
7
2003 (6 Mos.) Financial Highlights

• 76 increase in revenue over 2002 (same period)
• 19 increase in expenses over 2002 (same period)
• Fee increase in July 2003
• 54 days average for invoice payment (vs.
  specified 30 days payment terms)

8
Emphasis on Financial Controls as PILA Grows

• Executive Committee thoroughly reviews PILAs
  financial position each quarter including a
  rolling 12-month forward view of cash flow
• Financial operations manual adopted by Board and
  now in place
• Custom established for annual visit with audit
  manager by President and Treasurer
• Professional financial consultants are now
  engaged to assist staff (e.g., part-time CFO and
  accountant)
• Streamlined membership billing (now on fiscal
  rather than anniversary year beginning in 2004)

9
Strategic Financial Issues

• 2 million in loans from 12 members to be repaid
  2004-2007 key goals
• Repay 1st group of loans (750k) in 1Q/04
• Remaining 3 groups of loans re-paid (interest
  principal) over following 3 years
• PILA will be debt-free in 2007 (at year-end)
• Cash now building (forecasted 1.2 M at
  12/31/03), but need operating surplus each year
  to repay loans
• Critical to continuously monitor fee structure to
  ensure appropriate and predictable mix of revenue

10
Strategic Financial Issues

• New membership fee structure offers a more
  predictable revenue pattern
• Issue to watch for the future IDF charges an
  annual per DOI maintenance fee but CrossRef does
  not it is included in the annual membership
  fees and one-time deposit fees
• Internal PILA operating and financial
  infrastructure gaining experience and maturing
  well as PILA grows