Just received the calendar year end ULAA financial statements. Here’s the most recent numbers for our cash on hand under current assets…
These figures reflect a maximum credit line of $20,000,000 with $9,000,000 outstanding. Our net cash balance is $4,073,730 which is what we’d have left if we paid off the credit line.
The monthly burn rate and months of available cash are my calculations and not in the report. The burn rate is for the prior twelve months (12/31/2020-12/31/2021). 43 months of available cash assumes we maxed out the credit line. That’s basically the point where we would be completely illiquid and unable to pay regular expenses.
On face value, it looks like we still have plenty of cash. Here’s why I’m less optimistic about that…
We deplete cash during the course of the school year until about the end of May when ticket and CAF renewals start kicking in. The cash burn rate above averages out over the entire year. Last year during Covid, cash declined by $6.7 million between 12/31/2020 and 5/31/2021. And that was a time when Tyra had significantly reined in expenses. In fact, over the same five months in 2020 of January through May, cash declined by $12.6 million. (Accountants would say Tyra did a pretty good job managing our Covid finances.)
I'm always reluctant to cherry pick financial data without a comparable period to look at. But in the first six months of this fiscal year, July through December 2021, our cash has declined by $9.8 million. That's a recent and ramped up burn rate of $1.6 million per month. Again, a significant part of 2020 and early 2021 involved scaled down athletics operations due to Covid.
In my estimation, our current cash balance of $13.1 million (first two dollar amounts above) will probably be gone by June. And we’ll be spending from the remainder of the credit line by the time the next infusion of cash comes in for the upcoming school year. In other words, we’re basically hand to mouth on cash.
On a different financial subject, I trust it’s pretty easy to see that we’re not self-financing any big buyouts for the foreseeable future…
Cash – $9,603,831
Foundation Investments – $3,469,899
Remaining credit line – $11,000,000
TOTAL – $24,073,730
Monthly burn rate – $561,929
Months of available cash – 42.8
These figures reflect a maximum credit line of $20,000,000 with $9,000,000 outstanding. Our net cash balance is $4,073,730 which is what we’d have left if we paid off the credit line.
The monthly burn rate and months of available cash are my calculations and not in the report. The burn rate is for the prior twelve months (12/31/2020-12/31/2021). 43 months of available cash assumes we maxed out the credit line. That’s basically the point where we would be completely illiquid and unable to pay regular expenses.
On face value, it looks like we still have plenty of cash. Here’s why I’m less optimistic about that…
We deplete cash during the course of the school year until about the end of May when ticket and CAF renewals start kicking in. The cash burn rate above averages out over the entire year. Last year during Covid, cash declined by $6.7 million between 12/31/2020 and 5/31/2021. And that was a time when Tyra had significantly reined in expenses. In fact, over the same five months in 2020 of January through May, cash declined by $12.6 million. (Accountants would say Tyra did a pretty good job managing our Covid finances.)
I'm always reluctant to cherry pick financial data without a comparable period to look at. But in the first six months of this fiscal year, July through December 2021, our cash has declined by $9.8 million. That's a recent and ramped up burn rate of $1.6 million per month. Again, a significant part of 2020 and early 2021 involved scaled down athletics operations due to Covid.
In my estimation, our current cash balance of $13.1 million (first two dollar amounts above) will probably be gone by June. And we’ll be spending from the remainder of the credit line by the time the next infusion of cash comes in for the upcoming school year. In other words, we’re basically hand to mouth on cash.
On a different financial subject, I trust it’s pretty easy to see that we’re not self-financing any big buyouts for the foreseeable future…
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