PRESIDENT’S REPORT
January 21, 2015
Central Florida Chapter
NDIA Proprietary/Confidential: For Internal Use Only by Staff,Directors, Affiliate Presidents, Chapter Presidents, Division Chairs.
Not for release to third parties.
OVERVIEW• FY 14--Positive Operating Correction to FY 13• Overhang--Previous FYs-$380K Penalties • FY 14 a Busy Year….
– Outsourced Accounting – Improved Accounting Software– Web Site Upgrade– USW-Spring back in the portfolio
• Corporate Membership Decline has leveled • FY 15 Promises Solid Year--Some New Twists
– US Army Medical Conference & Exhibition– Larger AFEI ‘Plug Fest’– Jt Chem-Bio Conference & Exhibition is back
0
10000
20000
30000
40000
50000
60000
70000
80000
GovernmentAttendees
IndustryAttendees
Exhibitors &VEOs
Total
NDIAAggregate Participation
2.2%
34644620
‘12 ‘13
12.5%
‘14
3031Exhibits: Booth Equivalents
74,908
61,68963,028
FY 97
FY 98
FY 99
FY 00
FY 01
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
FY 14
In-vestment Re-serves
9.53 9.53 11.15 13.97 12.25 11.63 14.52 17.19 20.13 22.6 26.8 24.27 25.2 27.67 27.14 30.76 32.96 36.02
Available Bank Bal-ance
0.94 0.86 0.93 1.57 1.59 2.78 3.51 4.85 4.4 4.5 5.68 7.54 8.22 13.92 17.3 17.45 13.38 11.91
5
15
25
35
45
55 Available Bank Balance Investment Reserves
$ M
illio
ns
OPERATING AND INVESTMENT RESERVES
4
5
FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY 15
0
10
20
30
40
50
60
70
80
Staff SizeVol Turnover
STAFF SIZE AND TURNOVER
- - 54
6
FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
FY 08
FY 09
FY 010
FY 011
FY 012
FY 013
FY 014
FY 015
Baseline
8421508
8105172
13214648
13196000
14433238
15128852
16328873
17986548
18737444
20316648
21922689
23273045
27486210
27903833
28637835
30955892
32522028
25638732
21697569
20162279
Actual
8577248
8999293
12610416
12359744
14269904
15489794
17988601
19612228
22407351
23469903
25409749
25354096
28768547
28480383
31714345
33986344
30762087
19560385
20834201
NaN
% Increase
0.0184931249842665
0.11031487055425
8
-0.04572441127451
9
-0.0633719308881479
-0.0113165181645311
0.0238578578202761
0.10164375704312
2
0.0903831018603458
0.19585953132134
8
0.15520547484014
1
0.15906169174776
0.0894189393781518
0.0466538311393241
0.0206620359288991
0.10742816277836
6
0.0978958060714258
-0.0541153522160426
-0.23707673998854
5
-0.0397910014711786
NaN
-2500000
2500000
7500000
12500000
17500000
22500000
27500000
32500000
37500000
Operating Revenue - Baseline to Actual
Baseline
Actual
% Increase
(Preliminary FY 14 Results)
As of 11-13-14
7
FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
FY 02
FY 03
FY 04
FY 05
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
Operating Revenue
8.577
8.999
12.61
12.36
14.27
15.49
17.984
19.612
22.518
23.368
25.41
25.42
28.77
28.48
31.714
34.001
30.79
19.56
20.83
20.16
Series2
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
NaN
Net to NDIA
-0.70
5
-0.79
9
-0.51
6
-0.41
-0.18
2
0.122
0.88 0.936
0.987
1.021
1.126
0.96 0.32 0.77 2.329
3.117
1.496
-0.91
0.0136
NaN
2.5
7.5
12.5
17.5
22.5
27.5
32.5
37.5
-1.25
-0.75
-0.25
0.25
0.75
1.25
1.75
2.25
2.75
3.25
Operating Revenue and Net to NDIA $M
(Preliminary FY 14 Results)(Without Incentive)
Operating Revenue
Net to NDIA
Op
era
tin
g R
ev
en
ue
Net to NDIA
As of 11-13-14
FY 15 Program OverviewComparison to Prior Years
(000’s)
FY 13 FY14 FY15
Actual (Preliminary) Program
Revenue 19.561 21.005 20.162
Expense 20.448 20.661 19.177
Net ( .914)* .344** .985**
* Includes Incentive Distribution of $ 1.03 M
** Does not include planned incentive distribution
12-02-2014
Dues, 13.2%
Advertising, 6.4%
Mtgs/Exb/Spshp 77.8%
$ 15,683,271
Other , 2.6%
FY15 Revenue Sources by Activity
$2,657,485 $ 529,523
Total Revenue $ 20,162,279
$ 1,292,000
FY 14:
(000’s) FY 13 FY14* FY 15 $ % $ % $ %
Other .677 3.5 .579 2.7 .530 2.6Dues 3.090 15.8 2.919 13.9 2.657 13.2Advert 1.295 6.6 1.256 5.9 1.292 6.4Mtg/Exb 14.499 74.1 16.291 77.5 15.683 77.8TOT 19.561 21.005 20.162 (* Preliminary)
12-02-2014
NDIA, 63.5%
NTSA, 32.1%
AFEI, 2.4% PSA, 1.0% WID, 1.0%
FY 15 Revenue Sources by Organization
FY 13 FY 14 * FY 15 % % %
AFEI 1.0 1.1 2.4PSA 0.4 1.0 1.0WID 1.0 0.9 1.0NDIA 59.8 64.5 63.5NTSA 37.8 32.5 32.1
* Preliminary
12-02-2014
Personnel 32.8%
$ 6,294,248
Rent/Depr 5.0%
$ 950,629
Mission (Events, Mbrshp) 40.1%
$ 7,687,598
Support (Gov Pol/ Adv/Edit/BusOps)
22.1% $ 4,244,353
FY 15 Expense Distribution
Total Expense $ 19,176,828
Salaries & Fringe for all Business Centers
Facility Rental, Catering,Security, CreditCard Fees, Advert, Awards. Etc.
(000s) FY 13 FY 14* FY 15 $ % $ % $ %
Personnel 7.872 38.5 6.662 32.2 6.294 32.8Rent/Depr .818 4.0 .883 4.3 .951 5.0Mission 8.302 40.6 7.822 37.9 7.688 40.1Support 3.476 17.0 5.294 25.6 4.244 22.1 TOT 20.448 20.661 19.177(* Preliminary)
12-02-2014
FY 15 Program Operating Net(Total Revenue less Total Expense)
•NDIA Membership 383,496 Operations 2,565,059 Editorial (570,779) Advertising 557,089 Gov Policy (484,560) Bus Ops (4,696,852)•NTSA 3,122,178•AFEI 65,220•WID ( 48,315)•PSA 92,969
FY 15 Program Net Income 985,451
*Preliminary12-02-14
MEMBERSHIP
13
Corporate Members – NDIA and Affiliates1,603
Individual Members – NDIA and Affiliates89,531
Govt Members – NDIA and Affiliates25,009
As of 11-13-14
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Members 1,119 1,234 1,365 1,382 1,478 1,564 1,749 1,758 1,723 1,604 1,606
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Members 34,200 38,396 43,162 48,861 61,734 73,598 86,441 93,267 95,623 91,998 89,619
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
5,000
10,000
15,000
20,000
25,000
30,000
Members 8,673 11,587 12,579 11,869 16,722 21,049 25,082 26,233 27,723 27,200 25,055
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MEMBERSHIP
• Corporate Membership Trending Up• CSC rejoined as Corp Member• 222 three-year memberships
• Recruitment• SOFIC – New 5-tiered criteria for exhibiting• DSIE-Corporate Membership Required
14
Continued Progress on Policy
• New Policy Team• Assistant Vice President for Policy, Will Goodman• Director--Legislative Policy, Jimmy Thomas• Director--Executive Branch Policy, Chris Fletcher
• Partial relief on sequestration• Last year’s Effort Successful/FY 14-15• Omnibus Approp. for FY 15• Further work for relief in FY16.
• Increased Presence-Congress/ Executive • Chairman and Senior Fellows testified four times • Numerous meetings with DAE, SAEs• President Testified-Senate Approp.Defense
16
NATIONAL DEFENSE ADVERTISING Average Monthly Readers
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (Jan -Nov)
Nov 2014
BPA Qualified Read-ers
22427 25873 30766 33819 36051 41325 53087 62065 69541 77246 83221 83005 80812 81190
Total Readership w/pass-along
56068 64683 76915 84548 90128 103313 132718 155163 173853 295852 318736 317909 309510 310958
25,000
75,000
125,000
175,000
225,000
275,000
325,000
Pass-Along Readership Per Copy: 2002 - 2010 = 1.50 2011 - 2014 = 2.83Opportunities
• Grow Military/Government/Congressional readers
17
NATIONAL DEFENSE Summary of Advertising Performance
FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Total Revenue 775912 1054514 1209851 1214004 1308012 1476253 1547622 1726703 1526569 1713798 1670045 1634189 1627202 1607327
100,000
300,000
500,000
700,000
900,000
1,100,000
1,300,000
1,500,000
1,700,000
• Adding additional digital advertising options on websites and within eNewsletter products to provide added opportunities to generate revenue and new ways for advertisers to reach our members/audience.
Added Value Information & Service
• ‘Weekly Insider’ eNewsletter
• ‘Defense Watch’ eNewsletter
• ‘Weekly Digest’ eNewsletter
• NTSA ‘Training Industry News’ eNewsletter
• DSIE ‘AreYouReady?’ eNewsletter
NDIA Weekly Insider
• Email Newsletter
• Partnership with CQ
• Distribution—64,000
• Advertising partner PenFed Credit Union
NDIA DEFENSE WATCH
• Email Newsletter• Magazine & Blog • Distribution—70,000• NDIA Event Promo.• Advertising Partners:
• AIRBUS GROUP• IHS• BAE• FLIR
NDIA Weekly Policy eDigest
• Corporate Members
• Acquisition, Defense
• First Issue, May 2014
• Distribution--2000
• Ad sales—Jan 2015
NTSA TrainingIndustrynews
• October 2014 Launch
• Distribution—25,000
• NTSA, I/ITSEC, MODSIM
• Advertising partners include:
• Lockheed Martin• CAE
DSIE “Are You Ready?” Newsletter
• Monthly Newletter
• Cyber Threat Info
• Issue Oct. 2014
• Distribution:– Industrial Security Cmte.– Cyber Divisions– Intel Cmte.
• NDIA Received Google Ad Grant
– Non-Profit edition--Google AdWords
– Advertise Events at No Cost
– $330/Day--$10,000/Month
• Air Force Acquisition—Partnered w/NDIA-AIA
• Identify best practices to ‘reduce award time’
• ~30 best practices identified
• NDIA Participants: NGC, RockwellCollins, P&W
• Next effort: Cost Capability Analyses
International Division Outreach
• Bi-monthly division meetings with speakers – – Ms. Ann Cataldo, DASA for Defense Exports and Cooperation ASA(ALT)– MG Frank D. Turner III, USA, CG, USASAC– Mr. Eric Hirschhorn, Under Secretary of Commerce for Industry and Security– Mr. Keith Webster, Director, International Cooperation, OUSDAT&L
• Attaché Luncheons– Netherlands – October – 53 attendees– Japan – February – 116 attendees– Australia – June – 168 attendees– Sweden – September – 48 attendees
• Industry Days– DICC in Korea – November - 28 U.S. attendees– U.S.- Finland Defense and Security Industry Seminar – October – 111 attendees– U.S.- Austria Defense Industry Day – January – 127 attendees– U.S.- Denmark Defense Industry Seminar – May – 74 attendees– Canada-Australia-UK-U.S. Quadrilateral Conference – May – 129 attendees
• 3 Webinars…2 on ITAR and 1 on Export Control Reform Update • Hosted multiple meetings and signed MOU with SJAC
Management Activities
• Accounting Outsourced to CliftonLarsonAllen
• Accounting processes being refined/re-engineered• Staff SOPs being updated
• Retained new Auditors – Tate & Tryon
• 3 solid proposals to outsource web site evaluated
• Exploring Consortium management opportunity; OTA funded
• Partnership event with Defense Mobility Enterprise
Summary
• FY 14 was positive rebound from FY 13
• FY 15 promises to be….– Busy with events and initiatives– More successful than FY 14