LCMS Convention Workbook St. Louis, Missouri — 2001, Page 33

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SYNODICAL REPORTS 33

ues to develop an impressive array of titles for choirs of all sizes
and kinds, instrumental groups, handbells, organists, and pianists.
We also continue to provide practical resources for preaching, lead-
ership development, and other aspects of daily ministry.

+ CPH as the “Provider of Multiethnic Resources” +

This has been one area that has seen the most growth in this past
triennium—both in terms of development and sales. Among the
highlights we include the new Spanish Sunday school curriculum,
Caminando con Jesus; our Arch books in original Spanish; the
Bible commentary Juan (which received a Gold Medallion nomi-
nation); and the new translation of Kurth’s Catechetical Helps into
Chinese. The Chinese Book of Lutheran Worship is nearing com-
pletion. There’s a considerable breadth and depth in the current line
of resources for multiethnic ministries. In addition, CPH published
Ken Behnken’s Planting Missions across Cultures to assist
“Anglo” congregations in reaching out to their neighborhoods. This
was a part of the Pentecost 2000 campaign to help launch new
LCMS multiethnic ministries. We hope to have a bilingual His-
panic Vacation Bible School program published within the next
few months.

+CPH as the “Provider of Scholarly Resources” +

This area is another that has seen considerable expansion and
growth. In response to a number of convention overtures and reso-
lutions (in 1998 and prior years), CPH released in the fall of 2000
the new “CPH Classics” series, which attempts to keep in print cer-
tain foundational and important theological works from the
Synod’s history. So far the Abiding Word series has been repub-
lished, along with Arndt’s commentary on Luke and Fritz’s Pas-
toral Theology. More are planned for the future. 2000 also saw the
release of the long-awaited biography of C. F. W. Walther, Servant
of the Word, by the sainted Rev. Dr. August Suelflow. Two advi-
sory committees (one of LCMS seminary professors, the other of
LCMS university professors) keep the Concordia Academic Press
imprint producing new texts. Recent publications include That J
May Be His Own by Charles Arand, Jerusalem and the Parousia
by Jeff Gibbs, Fundamental Biblical Hebrew by Andrew Bartelt.
Foundations of Lutheran Education by William Reitschel, Christ
and Culture, edited by Angus Menuge, and Order Restored by the
sainted Garth Ludwig. New advisory groups have also been formed
to help guide CPH in setting publishing priorities in the areas of
the Lutheran Confessions and Lutheran missiology. The Concor-
dia Commentary series continues to regularly release new volumes,
most recently Revelation by Louis Brighton and / Corinthians by
Gregory Lockwood. Both have been well received.

The Future

As we look at changes in the publishing industry, which include
changing technologies and a changing marketplace, CPH is develop-
ing a new, three-year (2002-2004) strategic plan to increase products
and services faithful to the Lutheran Confessions for 21st-century
churches. To be sure, these strategic directions will enable us (1) to as-
sure that our products consistently embody our Lutheran identity, (2)
to be a quality product/service organization, (3) to provide ongoing
assessment of the products, services, and operations of CPH, and (4)
to exercise good stewardship in the management of CPH.

CPH’s Financial Picture

In 1998, CPH and its Board of Directors made plans to “grow to
a new level.” While thankful for years of blessings, the board rec-
ognized that sales had been on the decline during the previous 20
years when adjusted for inflation.

Given the realities of declining sales and the difficulties in con-
tinuing to cut costs, CPH adapted a plan to invest in its future. Re-
sults of this plan bore fruit, including a $7,100,000 growth in rev-

enues during the three years between 1998 and 2000. CPH invested
in new products and services to reach people with the Good News
of Jesus Christ, including a new Christian science curriculum and
taking over the operations of campus bookstores at the seminary in
St. Louis and at Concordia University—River Forest. Additionally,
CPH invested in its infrastructure by installing a new state-of-the-
art distribution center.

These planned efforts to grow sales and invest in the future, in
conjunction with an unplanned loss in investments held at the
Foundation, caused CPH to suffer a loss of $538,000 during the
three-year period. Excluding the investment loss of $1,360,000,
CPH’s net income for the three-year period was $822,000.

Blessed with a very solid financial position that CPH plans to
build upon during the next three years, with God’s help CPH will
work to fulfill its vision statement, taken from its core documents
adapted in June 2000: “We resource churches and their schools
with products and services faithful to the Scriptures and the
Lutheran Confessions.”

Statement of Income and Retained Earnings
for the 12 Months Ending

Dee. 3] Dee. 31 Dee. 31
2000 1999 1998
Total Revenue $43.432.472 — $41.938.757 $41,304,708
Cost of Goods Sold 24,729,946 23,762.421 23,316,628
Gross Margin 18.702.526 18.176,336 17.988.080
Operating Expenses 19,098,454 18,975,666 17,523,708
Income from Operations (395.928) (799,330) 464.372
Other Income (58,369) 509,577 257,989
Net Income (454,297) (289.753) 206,383
Retained Earnings—Beginning of Period _29.656,340 29,946,093 29.739,710
Retained Earnings Since 1869 $29,207,043 $29,656,340 — $29,946,093
Statement of Financial Position
Dee, 31 Dee. 31 Dee. 34
2000 1999 1998
Assets
Current Assets
Cash and Investments $7,169,050 $6,661,637 SIL.718.197
Accounts Receivable (Net) 5.026.859 5,120,208 4.388.160
Inventories (Net) 15,618.077 16,270,150 (2.288.276
Prepaid Expenses 1,045,830 116,735 1.200.165
Total Current Assets 28,859.816 29.168.730; 29,594.798
Other Assets
Restricted Project Funds 2.482.134 2.629.744 1,962.29)
Property and Equipment (Nev) 5.579.029 5.623.792 3.871.655
Unamortized Product Development (Nev) 1,989,962 2.294.686 2.559.211
Total Other Assets 10.051.125 10,548,222 8.393.157
Total Assets $38,910,941 $39,716,952 $37,987,955
Liabilities & Retained Earnings
Current Liabilities
Accounts Payable $4,008.88 1 $4.378.004 $2,719,049
Unexpired Periodical Subscriptions 2444095 2.273.721 2.101.214
Accrued Liabilites 425,456 340,811 697,581
Tota! Current Liabilities 6.878432 6,992,626 S\S27 844

Long-Term Liabilities
Notes Payable 0 0 )

Deferred Cominentary Project Funds 2.482.134 2.629.744 1,962.29]
Post Retirement Benefits 348,332 438,244 551,729
Total Long-Term Liabilities 2.830.466 3.067.988 2.514.020
Retained Earnings at End of Period 29,202,043 29,656,338 29,946,091
Total Liabilities and Retained Earnings $38,910,941 $39,716,952 $37,987,955
Statement of Cash Flows
for the 12 Months Ending
Dee. 31 Dee. 3] Dev. 31
2000 1999 1998
Net Income $(454.295) $(289,753) $206,381
Reconciling Adjusunents:
Depreciation 1.038.484 817.4606 724.083
Amortizalion of Development Costs 867.371 876.570 QT1248
(Gain) Loss on Sale of Property (10,000) 0 1.054
Realized (Gain) Loss on Investments 620,343 12.481 726,223

2001 Convention Workbook