Management Review of Financials

2014/15 Financials

Our total revenue of $69 million was down from last year ($88 million). The decreased revenue was expected, as the previous fiscal year included the value of the large Waldron project, which, at $35 million, was an exceptionally large acquisition project. Likewise, because the majority of NCC’s expenses are directly related to land acquisition, our expenses decreased over the reporting period. During the year there was an increased focus on stewardship of properties ensuring our conservation assets are maintained for future generations.

These swings in revenue and expenses are normal for NCC and reflect the multi-year nature of many of our large conservation projects.

NCC concluded the 2015 fiscal year with a net income of $4 million before transfers to reserves and endowments (compared to $3 million in 2014).

Because NCC’s mission is focused on the long term, it is important that we have a sound financial base on which to operate. By contributing $2.4 million to reserves over the past year, and by investing $10.3 million into our Stewardship Endowment Fund (which now totals $99.3 million), we continue to build a solid foundation to adequately fund the stewardship of our conservation lands well into the future.

5-Year Average Revenues

* Fiscal Year 2010-2011 to Fiscal Year 2014-2015

We calculate some of our performance metrics on a five-year rolling average in order to give an accurate picture of our financial standing. These rolling averages allow us to account for the fluctuations that a year-on-year measure can cause, such as when we have a large project in one fiscal year, or when projects span more than one year as well as benefits of some non-program expenses exceed one year.

5-Year Average Expenditures

* Fiscal Year 2010-2011 to Fiscal Year 2014-2015

We maintain a close watch over our expenses, though we have also broadened our measures of success to include more tangible measures of long-term impact, and not simply concentrating on shorter-term overhead cost ratios. In the period ending May 31, 2015, a total of 81 percent of our expenditures went directly to program costs (on a five-year rolling average basis), slightly down from 83 percent last year due to lower land acquisition costs.

We are proud of our ability to keep our overhead costs low, but do not wish to do so at the expense of an effective and impactful conservation program.