Back in Black? Potential for profits revealed in KML’s season-ending report
EAGLE RIVER — Harvey Desnick, Keweenaw Mountain Lodge coordinator, gave the last financial report of the lodge for the operating season Wednesday evening, saying he was surprised by the season’s business.
“October proved to be a very good month,” Desnick told the KML Board. “We finished with a 43 percent ‘beat’ on guest lodging. It was up quite a bit. The final week wedding event was very beneficial. Staffing was at a seasonable low, and yet somehow we got through it and all worked out great.”
Desnick said total income for the month of October totaled $121,852, compared to $93,000 last year, for a 31 percent improvement in total income for the month.
“After expenses, we produced a healthy $26,320 net income in cash flow,” he said.
Desnick said he needed to point out that one additional payroll expense will appear in November’s results, which will reduce the October total.
“This amount comes to about $10,000,” Desnick said, “so you can adjust that October number down that amount, leaving about $16,320 in adjusted cash flow, and quite frankly, in a month that I thought we’d be lucky if we broke even, I was very happy to see that.”
Desnick told the board the KML boosted net income for the year through Oct. 31.
“Year-to-date, we boosted net income to $64,500 for the year through Oct. 31,” he said. “If the same holds true on the that number, we’re looking at about 54 (thousand dollars) on sales and $764,000 for the season.”
It has been pointed out by various board members throughout the year, however, that if the debt to Economic Development Association and the Department of Agriculture were to be considered, the KML would have shown no profit for the season.
In response, Desnick pointed out the profits shown by the lodge month to month do demonstrate, that under a new owner who is not burdened by those debts, the facility is capable of making a profit.