Linda Beebe's presentation at the 2009 CrossRef Annual Meeting

1. Financial Review
Linda Beebe, Treasurer
Thursday, November 12, 2009

2. Financial Achievements
• Business model: balanced and sustainable
• Generating a surplus for re-investment
• No debt: all start-up loans repaid May 2007
• Clean 2008 audit - Audit Committee
working well
• Policies and procedures have grown with
the organization
Thursday, November 12, 2009

3. Financial Achievements
• Major investment in System Rewrite
• Membership & Fees Committee
undertook complete fee review
• Book deposit fees revised
• Affiliate and CrossRef Metadata
Services fees revised
Thursday, November 12, 2009

4. Financial Goals
• Sustain and invest in core
services – capital expenses for
operations.
• Invest in new services.
Thursday, November 12, 2009

5. Financial Goals
• Retain a minimum of 2 months operating
cash plus next year’s capital spending on
hand at all times.
• Maintain a credit line of $250,000 to support
current operations.
• Establish a cash reserve fund ($.5 million) for
future improvements to the core services.
Thursday, November 12, 2009

6. Revenues: Key Components
$2,993,000 - 2009 YTD
Membership (27%)
Deposits (61%)
Hos6ng, Metadata, Other (12%)
Thursday, November 12, 2009

7. Revenues: Key Components
$2,993,000 - 2009 YTD
$348,000
$808,000
$1,837,000
Membership (27%)
Deposits (61%)
Hos6ng, Metadata, Other (12%)
Thursday, November 12, 2009

8. Expenses: Key Components
$2,555,000 – 2009 YTD
Staffing (51%)
Administra6on (25%)
Data/SoBware (15%)
Travel/Mee6ngs (6%)
New Ini6a6ves / Other (3%)
Thursday, November 12, 2009

9. Expenses: Key Components
$2,555,000 – 2009 YTD
$78,000
$158,000
$382,000
$1,305,000
$632,000 Staffing (51%)
Administra6on (25%)
Data/SoBware (15%)
Travel/Mee6ngs (6%)
New Ini6a6ves / Other (3%)
Thursday, November 12, 2009

10. 9-Month 2009 Highlights
• Revenue: $2,993,000
• $177,000 (6%) over Budget
• $322,000 (12%) over same period
2008
• Expenses: $2,555,000
• $55,000 (2%) under Budget
• $121,000 (5%) over from same
period 2008
Thursday, November 12, 2009

11. Financial Overview
2000-2009 LE
Thursday, November 12, 2009

12. Financial Overview
2000-2009 LE
Income Statements – By Year
3,500
3,000
2,500
2,000
1,500
1,000
$000's
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

13. Financial Overview
2000-2009 LE
Income Statements – By Year
3,500
3,000
2,500
2,000
1,500
1,000
$000's
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

14. Financial Overview
2000-2009 LE
Income Statements – By Year
3,500
3,000
2,500
2,000
1,500
1,000
$000's
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

15. Financial Overview
2000-2009 LE
Income Statements – By Year 4,058
3,655
3,500 3,452
3,140 3,245
3,000
2,918 2,868
2,500
2,071
2,000
1,500
1,176
1,000
$000's
500 422
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

16. Financial Overview
2000-2009 LE
Income Statements – By Year 4,058
3,655
3,500 3,452
3,140 3,245
3,000
2,918 2,868
2,500
2,071
2,000
1,500
1,176
1,000
$000's
500 422
0
-500 -786
-1,000
-1,499
-1,500 -1,641
-1,881
-2,000 -2,391
-2,624 -2,722
-2,500
-3,250
-3,000 -3,325 -3,495
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

17. Financial Overview
2000-2009 LE
Income Statements – By Year 4,058
3,655
3,500 3,452
3,140 3,245
3,000
2,918 2,868
2,500
2,071
2,000
1,500
1,176
1,000
$000's
500 422
91 254
12
0 -36 -99 -45 -85 -17
-220
-501
-500 -786
-1,000
-1,499
-1,500 -1,641
-1,881
-2,000 -2,391
-2,624 -2,722
-2,500
-3,250
-3,000 -3,325 -3,495
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

18. Financial Overview
2000-2009 LE
Income Statements – By Year 4,058
3,655
3,500 3,452
3,140 3,245
3,000
2,918 2,868
2,500
2,071
2,000
1,500
1,176
1,000 770
521 536
$000's 546
500 422 478 245
257 254 214
91 12
0 -36 -99 -45 -85 -17
-220
-400 -422
-501
-500 -786
-1,000
-1,499
-1,500 -1,641
-1,881
-2,000 -2,391
-2,624 -2,722
-2,500
-3,250
-3,000 -3,325 -3,495
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

19. Financial Overview
2000-2009 LE
Thursday, November 12, 2009

20. Financial Overview
2000-2009 LE
Member Loans & Cash at Year-End
2,400
2,200
2,000
1,800
1,600
1,400
$000's 1,200
1,000
800
600
400
200
0
-200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

21. Financial Overview
2000-2009 LE
Member Loans & Cash at Year-End
2,400
2,200
2,000
1,800
1,600
1,400
$000's 1,200
1,000
800
600
400
200
0
-200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

22. Financial Overview
2000-2009 LE
Member Loans & Cash at Year-End
2,400
2,200
2,000 2,000
1,950
1,800
1,700
1,600
1,400 1,400
1,200
$000's 1,200
1,125
1,000
800
600
600
400
200
0 0 0
0
-200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

23. Financial Overview
2000-2009 LE
Member Loans & Cash at Year-End
2,400
2,200
2,000 2,000
1,950
1,800
1,700
1,626
1,600
1,486
1,400 1,400
1,200 1,241
$000's 1,198 1,299
1,200 1,136
1,125
1,000
935
819
800
600
600
454 389
400
200
0 0 0
0
-200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
Thursday, November 12, 2009

24. Cash
$2,034,000 - 9/30/09
Reserved (25%)
Opera6ng (75%)
Thursday, November 12, 2009

25. Cash
$2,034,000 - 9/30/09
$500,000
Reserved (25%)
$1,534,000
Opera6ng (75%)
Thursday, November 12, 2009

26. Safe Cash Investments
• Cash spread across 8 financial institutions
• Spare cash in money market accounts
and Certificates of Deposits (CDs) in the
US and a Treasury bond in the UK
• CD maturity dates are laddered
• No stocks or Subprime mortgages
Thursday, November 12, 2009

27. 2010 Draft Budget
• Revenue - $4,315,000 (6% growth over 2009LE)
• Membership growth leveling off/most new
members in lowest tier
• Expenses - $3,827 (9% growth over 2009LE)
• Investments in metadata quality and System Rewrite
• Two new staff positions – tech support and part-
time bookkeeper
• Cash balances remain within Board cash policy
Thursday, November 12, 2009

28. Strategic Issues
• Ensure long term viability of CrossRef
through prudent policies and long term
planning
• Define broad principles for investment in
start up initiatives (i.e., innovations)
• Regularly monitor all fees and adjust as
necessary
Thursday, November 12, 2009

29. Strategic Issues - Risks
• Decline of Backfile deposits and leveling off
of growth of Current deposits
• Impact of general economic downturn
• Costs going up due to growth in members,
metadata quality efforts and new services
• Not completing System Rewrite in a timely
manner
Thursday, November 12, 2009

30. Strategic Issues - Risks
• Collection on member & affiliate
billings has become much more
difficult and time consuming
• More invoices go over 90 days
past due
Thursday, November 12, 2009

31. Summary
• Excellent financial performance
• Major investment in System Rewrite
including IP ownership
• Risks being addressed
• CrossRef can expand and remain a viable
non-profit for industry innovations.
Thursday, November 12, 2009