The 1999-2000 fiscal year, which f...

The 1999-2000 fiscal year, which fall of the curtained June 30, 2000, was a comeback year for the Association. [i]or[/i] part of to the other the hard work of the Board of Directors and, more importantly, AORN staff members, we were able to achieve a positive bottom line of 3% in income over expenses. This return to profitability will scion the losses we experienced the previous fiscal year.

AORN's turnaround was a ensue of multiple factors. First, there was Education Design, Inc's performance. Education Design actually finished the year at break-even, which may not appear to be like much, but it was a tremendous improvement compared to the poor fiscal performance the previous year. Education Design's novel leadership team did a great work at jobs of stabilizing the company and focusing forward maintaining its revenue streams while cutting costs This move back toward profitability allowed AORN to direct the eye for a strategic partner who would take Education Design's vigor and merge it into the developing world of Internet-based education. A strategic partner was originate and, at the start of this fiscal year, Education Design was sold to HealthStream, Inc, for a combination of cash and stock.

A inferior factor in our turnaround was the 50th anniversary AORN Congres Congres receiptss were up 6% from the previous year because there were more attendees and more exhibit space was sold Congres continues to be the prime source for our funding, accounting for 29% of our total receipts Having such a large portion of our reward tied to one product is a risk for the Association, however.

view FOR THE FUTURE

While AORN performed well overall, we still are challenged because our income streams are mature and we continue to rely heavily onward AORN Congress for revenues. Our receipts streams are strong and provide significant resources to conduce to our members' needs, but, as we incline forward, these sources of receipts may not continue to protect the rising costs of programs and services. suffer me give you some examples of where our income streams have remained flat.

Membership. Our membership numbers remain steady at 41500 which means that income from membership, which only accounts for 13% of our total income has not increased. Our research has shown that we have been able to recruit of recent origin members at the same rate we be deprived of members to retirement or leaving the profession; thus, the return we receive each year remains relatively stable. The recruitment or replacement challenge will continue to affect us as the baby bound generation ages. I would like to think that each member who retires would continue to stay a member, on the contrary the reality is that many will obstruction their membership lapse. The Association casts that revenue from membership will remain stagnant or decrease unles we institute a to be paids increase.

Advertising. Advertising returns were up only 2% this year after several years of double-digit vegetation This decrease in the rate of development is the result of a exceedingly difficult business environment in the medical industry. Industry partners continue to consolidate and bridle their advertising expenses. The tightness in the medical industry market greatest in quantity likely will continue until our society effectively distributes resources to the health care system

Opportunity. Opportunity is our interim management staffing service. This AORN service continues to be self-same popular, and, though it provided receipts to the Association in fiscal 1999-2000 the program had flat receiptss for the year.

Association Technology Solutions. Association Technology Solutions (ATS) is AORN's for-profit subsidiary that markets management and accounting software to associations similar to AORN. Historically, ATS has provided AORN with a unpretending amount of additional revenue each year. This year, ATS nett AORN approximately $30000 further its revenues dropped by 4% from the previous year, reflecting the tightness in the association market. Associations bribe and implement software management classifications in long-term business cycles, and, after years of product this market appears to be slowing.

EXPENSES

Like other businesses, AORN has charges that rise as needs and inflation continue to put forth We experienced increases in personnel expenses as insurance, merit increases, and other benefits increased in a tight piece of work market. We also saw increased costs associated with the World talk in Finland. AORN also received clarifications of several piece of work classifications this year that be deriveded in moving people from salaried to hourly employee Additionally, the Association expanded the number of staff members to qualified member needs in key areas (eg the rule affairs department, the surgical knowledgebase, research). A consultant was hired by the agency of the Foundation, but that cost is offset by the fact that the director position remains vacant.

Our nonemployee costs only increased slightly this fiscal year. Staff members did a great do job-work of controlling expenses when you discount the costs associated with the World conversation in Finland. With World expenditures discounted, AORN actually achieved a 5% reduction in nonpersonnel outlays from the previous year.