USA Debt Crisis Euro Zone Unemployment Global Economy Italys New Premier OffersBBC News Broad Plan to Reform Finances and Spur Growth Greek govt readies Spain latest to take hit in budget, awaits European debt crisis EU/IMF inspectors
U.S. Public Debt• 1980 Debt 33.0% of GDP$909 billion• 1990 Debt 55.9% of GDP$ 3.2 trillion• 2001 Debt 55.9% of GDP$ 5.7 trillion Today?
Recent US Federal Debt Numbers Gross Federal Debt Debt Held by PublicFY 2012 $16.7 trillion $10.8 trillionFY 2011 $15.5 trillion $9.9 trillionFY 2010 $13.5 trillion $8.2 trillionFY 2009 $11.9 trillion $6.8 trillionFY 2008 $10.0 trillion $5.3 trillion Gross Federal Debt is the total debt owed by the United States federal government. It comprises “debt held by the public” and “debt held by federal government accounts,” such as IOUs owed to the Social Security trust fund. “Debt held by the public” includes debt actually held by the public and foreign governments, and also debt held by the Federal Reserve System, i.e., monetized as part of the monetary base.
“Total Debt”Great Depression 250% of GDPToday 350% of GDP Government – Corporate - Personal
Solutions Increase Revenue Decrease Spending Equine PracticeCombinations of both? Default GovernmentClient Purchasing Behavior Personal Financial Health
Top 4 Gov. Expenditures 1. Health Care 2. Pensions 3. Education 4. Defense
Top 3 Equine Practice Expenditures 1. Labor 2. Inventory 3. Insurance
Equine Industry Trends o Increase A/R • Customers Future growth • Vendors / Suppliers o Labor Reductions • Support Staff Improve • Veterinarians Operational o Price Slashing Efficiencies o Decrease Hospital Volume / Revenue o Decrease in discretional spending o Regional Variations
Veterinary Marketplace Retail Sales Manufacturing Distribution Compounding OTC Online
Fairness to Pet Owners Act (H.R. 1406) • Consumer advocacy bill • Requires veterinarians to write a prescription at the time of prescribing a product for a companion animal, regardless of whether or not you would also be dispensing the product to your client. Veterinarians would also be required to provide a written disclosure notifying the pet owner that they may fill the prescription through you, the prescriber, or another pharmacy. AVMA Governmental Relations Division
1. This legislation is unnecessary and redundant.2. The American Veterinary Medical Association is supportive of a client’s right to have their prescription filled at the pharmacy of their choice and encourages veterinarians to write a prescription when asked by a client.3. Pet owners have the freedom to take a prescription to be filled at the pharmacy of their choice.4. State laws already govern veterinary prescription writing making this bill unnecessary.5. The interests of large retail stores shouldn’t dictate how veterinarians operate their practice.AVMA believes that the prescribing veterinarian is themost appropriate professional to provide guidance andeducation when dispensing a prescription product.
Mergers & AcquisitionsService/Support, R&D, Sponsorship, ProductOfferings, New Innovation?
2011 AVMA Survey• 94.8% response rate• 2483 grads from 28 schools• Females 1930 (77.8%)• Males 553 (22.2%)• Ave Age at graduation = 27.5• Single = 66%• Caucasion = 88%
USA Student Debt - the Reality• Ave debt - US veterinary Students 6.5% • $125,00 for males • $134,00 for females• Ave debt - US college Students • $135,00 for males • $145,00 for females• Ave CDN Vet Student Debt = $52,000
USA Veterinarian Starting Salaries 2011 vs (2010)Private Clinical Practice % Mean 1st Year $ Mixed animal 9.4(8.3) 62,655(62,327) Small animal exclusive 23.9(28.2) 69,789(71,462) Equine 2.5(2) 43,405(38,468) Ave Starting Salary = $66,000
Student Debt If veterinary students rack up $252,000 inIn 2017, debt is expected educational debt, theyto climb to $176,000 with will need a startinga debt-to-salary ratio of salary of $145,717 to make repayment on a200 percent. loan at 15 percent of their gross monthly income.
Vet College SKA NonTechnical-Skills, Knowledge, Aptitude• 100% offer 1 course in SKA• 5 schools offer a certificate in business skillsContent50% = Communication30% = Financial management20% = Career choices, grief counseling,animal welfare, regulatory
Equine Vet PracticeAAEP Job Bank – Nov 16, 2011244 Resumes15 Jobs16 resumes for each job
Internships• 688/2483 = 27.7% selected internships• 41.7% = Prerequisite for residency application• 31.1% = Practice better-quality veterinary medicine• 16.9% = Needed more training• 0.7% (5/688) = believed they would make more $$2010 AVMA Biennial Economic Survey• Internship does not equal higher salaryResidencies• 32% of vet students planning on residencyAVMA 2011
AAEP Internships• ~216 offered• ~210 filled• Offer date is Friday before AAEP convention
• 32% vs 23 % of med students in yr 1 • Multi species • Euthanasia
Owner vs Associate Incomes• $155k vs $85k• $60.30 vs $30.54/hr Gross Rev/Income/Hrs 25th perc 75% 90%Owner$160K $67K 45 $490K $187K 60 $800 $363K 70Associate$150K $61K 50 $380K $91K 65 $560 $139K 75
Debt/OwnershipMake it part of the solution not the problem!!
Situational Analysis• Declining Foal Crop: Down 13% 2005: 38,361 - 2012: 24,700• Major Auction Sales: Down 32% (?)• Handle: Down 37% (?)• Purses: Down 6% (?)• Attendance: Down 30% (?)
Core of American Racing is Strong• Kentucky Derby Attendance up 8% (2000-2011)• Breeders Cup Racing up 6% (2006-2010) o Down 7% in 2011. Zenyatta effect• Grade I and Grade II Handle is up 23% (2001-2010)
Main Issues of Racing• Competition from other forms of gambling• Dilution of the racing product• The fan base of racing is decreasing 4% per year• Animal welfare is a growing concern for the U.S. Public.
2010 Horse NumbersUS TB live foals • Down 10% from 2010 • 1973 #s in 2011Canada STB stallions standing o 43% decrease since 2007Canada STB Mares bred o 29% decrease since 2007
Sales In North America• Keeneland Sales o 2008 ave $90,984, med $37,000 o 2009 ave $60,734, med $22,000 o 2010 ave $64, 811, med $25,000 o 2011 ave $81,000, med 41%• Harrisburg Sales o 1st day ave up 5% o Record price for yearling
The Future• Sales catalogues apps – Fasig Tipton and Keeneland• “Live” sales results online• Myracingoffice.com = online condition books• Equibase = Racing Yearbook app• Today’s Racing app• Stats profile available on Equibase Facebook page• Racing Injury Database > 1 million starts (2008-10)
Who is interested? (Fans/clients) What excites them?Growth Strategies?• “Boutique meets”• Wagering platform changes?• Free-to-play fantasy sports game• “Social game”• Online ownership tools and CE
Social Networking• Facebook > 800 million users o 50% go on daily o 350 million access on mobile o 1 in 9 people worldwide has an account o 48% of Americans• YouTube uploads 48 hours of video each MINUTE!• Twitter delivers 350 billion tweets/day.
• 25 million users in 4 weeks• 40 million now• Tech crowd• Interest is leveling