MI-Connection Board of Directors Share
FY 2016-2017 Budget and Excellent Q3 2015-2016 Results
The MI-Connection Board of Directors met Thursday, April 28 at Davidson Town Hall to present their FY 2016-2017 budget and share their third quarter 2016 results.
MI-Connection’s budget year begins July 1, 2016 and runs through June 30, 2017. The meeting began with a public hearing regarding the proposed FY 2016-2017 budget.
CEO David Auger presented the budget which shows continuing growth: total revenue is projected at $22,121,307, and cost of goods sold is projected at $8,960,495, yielding a gross profit of $13,160,812 or 60%. Total operating expenses are projected at $7,096,541 and EBIDA (earnings before interest, depreciation and amortization, a key metric used by cable operators to measure performance) is projected at $6,064,271. MI-Connection’s operating income is projected at $3,300,000 and will go toward paying debt. The subsidy to MI-Connection by the Towns of Davidson and Mooresville is projected at $3,049,674. The Town of Davidson will contribute $1 million based on our most recent interlocal agreement with Mooresville.
Auger also shared third quarter FY 2015-2016 results. Revenue is up by 5.15% and total expenses are up 4.42% in the third quarter of FY2015-2016 compared to the third quarter of FY 2014-2015. EBIDA is up 7.17% as compared to 2015 and “it’s notable that the overall EBIDA percentage is at 26.31%, getting closer to our goal of 30%,” said MI-Connection CEO David Auger.
Revenue generating units are up 1.89% and customer relationships have increased 2.78% in FY 2015-2016 as compared to FY 2014-2015.
The MI-Connection board of directors approved the proposed FY 2015-2016 recast budget and the proposed FY 2016-2017 budget.
“For the first time ever, MI-Connection should be covering more than 50% of our debt in this new fiscal year,” said MI-Connection Board of Directors Chairman Larson Jaenicke. “This is a big accomplishment and I’m proud of the upward trajectory we are on.”
The next meeting of the board of directors is scheduled at Davidson Town Hall on Thursday, June 30 at 6:30 p.m.
For more information on MI-Connection and services available, please visit: www.mi-connection.com.