# LCMS Convention Workbook_St. Louis Missouri_1998_S35
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

The first level (for children ages 4-5) of our Hispanic Sunday
school curriculum will be released this fall (1998) with additional
levels every few months.

This is an exciting time as CPH reaches out with more and more
ethnic resources while expanding efforts in the academic realm as

SYNODICAL REPORTS 35
Operating Expenses 15,206,044 14,685.01 14,187,645
Income from Operations 851,730 459,397 1,319,163
Other Income 742.2336 641540 540,380
Net Income 1,594,466 1,106,937 1,859,543
Retained Earnings - Beginning of Period 28,145,244 27,297 458 25.437.915
Adoption of SFAS 124 9 (259,151) 9

well.

CPH Mission Focus: Our Service

CPH is growing to a new level by concentrating on who we are
and what we do best, on our role as provider of resources and ser-
vices.

As CPH looks to the 21st century, it sees a bright future. Rapid
changes in technology will help CPH reach even more customers
efficiently and effectively.

A prime example of how we are trying to reach our churches
more efficiently and effectively is our addition of deployed staff—
Christian Education Specialists—highly trained and experienced
church professionals close by so you can hear firsthand about new
resources and receive training for your staff in how to use those re-
sources. We hope to add more of these deployed people in the next
few years.

CPH has begun to develop Internet access, expand e-mail ca-
pabilities and create the “CPH Mall” for Internet users to visit and
purchase resources on line. We plan to offer our entire catalog elec-
tronically to help customers and employees learn more about CPH
products. We are already offering Today’s Light on our home page.

CPH is also initiating a Customer Satisfaction Index (CSI) Pro-
gram to enhance quality and service to customers. The simple and
effective format measures CPH levels of communication, delivery,
quality, and responsiveness. CSI will help CPH measure the suc-
cess of implemented improvements through customer perception.

As a product/service-driven company, CPH will succeed as it
strives to be passionately user-sensitive so that the Gospel is com-
municated in resources that meet the needs of our customers.

CPH’s Financial Picture

Being good stewards, the employees of CPH strive to maintain
a sound, fiscal, self-sustaining, expanding operation. Just seven
short years ago, CPH was near the point of having to borrow funds
to meet day-to-day operations. By cutting costs, improving effi-
ciencies, and figuring out ways to do more and more with less,
CPH has built a firm financial foundation while being blessed by
our true foundation, Jesus Christ. All this was accomplished while
expanding product offerings faithful to God’s Word and to our
Lutheran heritage.

During this time, we have learned what other industries have,
that one cannot achieve true growth by cutting operations. While
CPH has been incredibly blessed during its 128-year existence,
sales have been on the decline the last 20 years, if adjusted for in-
flation. As we listen to our customers and provide the resources
they need and want, we also realize the need to invest in new tech-
nologies that are coming on the scene at breakneck speeds. Facili-
ties need to be updated and efficient as inventories and workloads
increase and space becomes scarce. Anything less would hinder our
ability to properly service our customers and fulfill our vision: “We
Resource Churches.”

For these and other reasons, CPH, with its Board of Directors, is
making plans to take us into the new millennium—plans “to grow
to a new level.” The blessings our Lord and Savior has showered
on CPH will support efforts to take His Word to a world in desper-
ate need. This growth will take significant investment. But we have
the sure promise of the Scriptures—‘“For I know the plans I have
for you,” declares the Lord, “plans to prosper you and not to harm
you, plans to give you hope and a future.”

Statement of Income and Retained Earnings
For the 12 Months Ending

Dec. 31 Dec. 31 Dec. 31

1997 1996 1995
Tota] Revenue $36,343,249 $35,518,497 $35,623,557
Cost of Goods Sold 20,285,475 20,374,081 20,116,749
Gross Margin 16,057,774 15,144,416 15,506,808

Retained Earnings Since 1869 $29,739,710 $28,145,244 $27,297,458

Statement of Financial Position

Dec. 31 Dec. 3! Dec. 31
1997 1996 1995
Assets
Current Assets
Cash and Investments $13,827,646 $12.932.796  $12.218.317
Accounts Receivable (Net) 4,312,870 4.304.405 4,185,059
Inventories (Net) 11,304,976 11,406,256 11,748,150

Prepaid Expenses 630,661 784.496 364,772

Total Current Assets 30,076,153 29,427,953 28,516,298
Other Assets
Commentary Project Fund 1.719.591 1,535,086 1,340,899
Property and Equipment (Net) 3.377.587 3,431,797 3,266.500
Unamontized Product Development {Net) 2,129,351 L415,958 1,055,143
Total Other Assets 7,226,529 6,382,841 5,662,542
Total Assets 73! 2 $35,810,794 $34,178,840
Liabilities & Retained Earnings
Current Liabilities
Accounts Payable $1,990,799 $1,769,698 $1,679,054
Unexpired Periodical Subscriptions 1,995.119 1,993,420 1,887,034
Accrued Liabilites 1.203.885 1,602,615 1,423,530
Total Current Liabilities 5,189,803 $5,365,733 4,689,618
Long-Term Liabilities:
Notes Payable 0 0 0
Deferred Commentary Project Funds 1,719,591 1,535,087 1,340,899
Post Retirement Benefits 653,578 764,730 850,865
Total Long Term Liabitities 2,373,169 2,299,817 2,191,764
Retained Earnings at End of Period 29,739,7 281,452.44 27,297,458
Total Liabilities and Retained Earnings $37,302,682 $35,810,794 $34,178,840
Statement of Cash Flows
for the 12 Months Ending
. Dec. 31 Dec. 31 Dec. 3]
1997 1996 1995
Net Income $1,594,466 $1,106,937 $1,859,543
Reconciling Adjustments
Depreciation 653.354 601.213 577.874
Amortization of Development Costs 907.988 958.461 928.599
(Gain) Loss on Sale of Property 0 0 1.665
Adoption of SFAS 124 0 (259.151) 0
(Increase) Decrease in Current Assets:
Accounts Receivable (8,465) (119,346) 226.099
Inventories 101.280 396,733 (763,097)
Prepaid Expenses 153,834 (419,724) 315,266
Increase (Decrease) in Current Liabilities:
Accounts Payable 221.101 90.644 (3,156)
Unexpired Periodical Subscriptions 1,699 106,386 165,385
Accrued Liabilities (398,730) 479,085 3.054
Total Adjustments $3,226,527 $2.94} .238 $3,311,232
Cash Flows from Investing Activities:
Capital Expenditures (599,144) (766,529) (952,503)

Proceeds from Sale of Property 0 0 1,500
Commentary Project Receipts/Draws (184,504) (194,187) (257,901)
Non-Print Development (326,754) (165,291) (211.261)
Printed Material Development (1.294.627) (1,208,804) (55,716)

Net Cash Used by Investing Activities (2.405.029) (23.334,811) (1.475.881)
Cash Flows from Financing Activities:

Notes Payable 0 0 0

Commentary Fund Liability 184,504 194.187 287.901

Post Retirement Benefits (1t1.152) (86.135) (72.367)
Net Cash Provided by Financing Activities * 73,352 408,052 185,534
Net Change in Cash and Investments 894.850 714,479 2,020,885
Cash and Investments at Beginning of Year 12,932,196 1 17 ] 7,432
Cash and Investments at End of Period $13,827,646 $12,932,796 $1,2218.317

Stephen J. Carter, President
and Chief Executive Officer
Board of Directors

Marvin Jenkins, Chairman