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Annual Reports: 2000: Financial Review
"The Foundation’s
long-term goal is to maintain a condition of financial
equilibrium in which revenues and expenditures are
balanced, adequate funding is provided to maintain
and preserve our facilities and collections, and the
purchasing power of the endowment is maintained."
The
Foundation undertook a number of new initiatives in calendar
year 2000. Construction began on the new 300-unit Woodlands
Hotel and on the renovation and expansion of the adjacent
Visitor Center. In addition, the renovation of the Williamsburg
Inn began last August and is scheduled to be completed by
September 2001. Revenues from ticket sales, hotels, restaurants,
and retail stores were reduced as a result of the construction
disruption, reduction in rooms inventory from the renovation
of the Inn, a fire at the Woodlands Hotel in late 1999 that
destroyed thirty guest rooms in one of the older buildings,
and a ticketing structure that had the unintended effect of
encouraging visitors to purchase lower-priced one-day tickets.
In spite of reduced revenues, the Foundation maintained its
commitment to provide work for staff displaced by closings
and to improve compensation levels.  In addition, the Foundation
added staff in order to enhance training, fund-raising, Historic
Area programming, and the effectiveness of its financial and
other administrative functions. Additional staff was needed,
also, to support the growth of the catalog operation. The
combination of increased expenditures and reduced revenues
resulted in an increased operating deficit for the year.
Operating revenues from ticket sales, the hospitality businesses,
products, and commercial real estate declined by $0.5 million
(0.3 percent) to $148.5 million. Support from the annual fund
and gifts restricted for current operations grew by $1.5 million
(6 percent) to $25 million, and investment income available
for operations increased by $6.2 million (44 percent) to $20.3
million. Total operating expenses increased by $13.9 million
(7 percent) to $204.4 million, driven by payroll and related
costs, maintenance, and interest. As a result, the Foundation
incurred an operating deficit of $10.6 million for the year.
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The
total net assets of the Foundation increased by $16.2
million in 2000 because of successful
fund-raising and investment performance. |
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The total net assets of the Foundation increased by $16.2
million in 2000 because of successful fund-raising and investment
performance. Cash receipts from gifts totaled $46.8 million,
an increase of $14.3 million (44 percent) over the prior year.
The combined market value of the Colonial Williamsburg Foundation
endowment and the DeWitt Wallace Fund for Colonial Williamsburg
increased by $46.9 million over the prior year’s value
to a total of $775.3 million as of December 31, 2000. (In
May 2001, the board of trustees of the DeWitt Wallace Fund
announced the dissolution of the Fund and the transfer during
this year of the assets of the Fund to the Colonial Williamsburg
Foundation.) The combined funds produced a total return of
7.3 percent for the year, which exceeded the total return
of the Standard & Poor’s 500 by more than sixteen
percentage points.
The Foundation’s long-term goal is to maintain a condition
of financial equilibrium in which revenues and expenditures
are balanced, adequate funding is provided to maintain and
preserve our facilities and collections, and the purchasing
power of the endowment is maintained.
Although the Foundation’s investments in facilities,
staff, and programs put substantial pressure on the budget
in the short term and will continue to do so for several years,
the institution has a strong balance sheet. The challenge
is to refine the scope of the Foundation’s educational
programs, maximize the financial and programmatic benefits
of the investments in facilities, and increase further the
asset base by maximizing return on invested assets and by
continuing to receive philanthropic support from friends of
Colonial Williamsburg.
The Colonial Williamsburg Foundation and Subsidiary
Consolidated Statement of Financial Position
For the Years Ended December 31, 2000 and 1999
($ in Millions)
| Assets |
2000 |
1999 |
Change |
| Current assets: |
| Cash and temporary investments |
$22.5 |
$19.1 |
$3.4 |
| Cash held by trustee for capital projects* |
22.8 |
0.0 |
22.8 |
| Receivables |
13.2 |
12.7 |
0.5 |
| Inventories and prepaid expenses |
16.7 |
15.5 |
1.2 |
| Total current assets |
75.2 |
47.3 |
27.9 |
| Noncurrent assets: |
| Fixed assets |
294.2 |
264.5 |
29.7 |
| Endowment |
591.4 |
561.6 |
29.8 |
| Contributions receivable |
10.9 |
14.9 |
(4.0) |
| Split interest agreements |
14.8 |
14.8 |
0.0 |
| Other assets |
12.5 |
7.3 |
5.2 |
| Total assets |
$999.0 |
$910.4 |
$88.6 |
| Liabilities And Net Assets |
| Current liabilities: |
| Accounts payable and accrued expenses |
$22.5 |
$22.8 |
$(0.3) |
| Current debt |
20.0 |
20.0 |
0.0 |
| Deferred income |
3.0 |
2.5 |
0.5 |
| Total current liabilities |
45.5 |
45.3 |
0.2 |
| Noncurrent liabilities: |
| Long-term debt* |
129.7 |
56.7 |
73.0 |
| Split interest agreements |
8.5 |
8.5 |
0.0 |
| Other liabilities |
30.0 |
30.8 |
(0.8) |
| Total liabilities |
213.7 |
141.3 |
72.4 |
| Total net assets |
785.3 |
769.1 |
16.2 |
| Total liabilities and net assets |
$999.0 |
$910.4 |
$88.6 |
* The cash held by trustee and the increase in long
term debt are the result of borrowings to finance the
Foundation’s major capital renovation program.
The Colonial Williamsburb Foundation and Subsidiary
Summary of Operating Results and Change in Net Assets
For the Years Ended December 31, 2000 and 1999
($ in Millions)
| Operating Revenues |
2000 |
1999 |
Change |
| Admissions |
$30.5 |
$30.6 |
$(0.1) |
| Hotels and Restauruants |
71.1 |
73.0 |
(1.9) |
| Products |
41.2 |
39.0 |
2.2 |
| Real Estate |
5.7 |
6.4 |
(0.7) |
Revenues from operations |
148.5 |
149.0 |
(0.5) |
| Unrestricted gifts |
14.7 |
13.2 |
1.5 |
| Gifts restricted for operations |
10.3 |
10.3 |
0.0 |
Gifts for Operations |
25.0 |
23.5 |
1.5 |
| Investment income available for operations |
20.3 |
14.1 |
6.2 |
| Total Revenues |
193.8 |
186.6 |
7.2 |
| Operating Expenses |
| Payroll and related |
92.1 |
84.4 |
7.7 |
| Cost of sales |
27.9 |
26.8 |
1.1 |
| Depreciation |
12.1 |
13.1 |
(1.0) |
| Other expenses |
72.3 |
66.2 |
6.1 |
| Total expenses |
204.4 |
190.5 |
13.9 |
| Operating Deficit |
(10.6) |
(3.9) |
(6.7) |
| Nonoperating Revenues and Expenses |
| Gifts for endowment or capital projects |
20.8 |
8.0 |
12.8 |
| Other |
(2.4) |
(0.1) |
(2.3) |
| Investment income and realized and unrealized
gains retained in endowment and reserves |
8.4 |
142.9 |
(134.5) |
| Change in net assets |
$16.2 |
146.9 |
$(130.7) |
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Historic Triangle