UFC Annual Meeting Overview

Feb 11, 2020


UFC Annual Meeting Overview
The UFC annual meeting was held February 5th at 10:00 am in the Berdan Event Center.  There were about 200 in attendance, with 102 voting members. Chairman of the Board of Directors, Kevin Lauwagie, reviewed with the membership the challenges in the ag business sector and fiscal 2019 performance.  Kevin touched on our Net Income of $251,000 and items that effected that number from local operations and patronage. He also discussed the strength of the UFC balance sheet, the investments UFC has made in facilities, non-cash depreciation expense of over $5.7 million and how UFC has paid down $4.4 million of long-term debt in fiscal 2019.  On 8/31/2019, UFC’s long-term debt to local equity was 29%. 

Chairman Lauwagie talked about the hiring of Mitch Altermatt as CEO and the process the Board of Directors went though, UFC’s continuing need to address underperforming operations, cost saving and the operating efficiencies which are showing results in the first 5 months of our fiscal year 2020.  UFC’s Board of Directors proposed changes to update the Bylaws of UFC which the membership overwhelmingly approved.

As part of the Board of Directors election process this year.  The decision was made to reduce the size of the board from 10 members to 8 members.  Eric Annexstad and Kevin Vetter, who’s positions were up for re-election chose not to run to accomplish the downsizing.  Eric Annexstad and Kevin Vetter were recognized and thanked for hard work and dedication during their years of service.  The membership also re-elected Kevin Lindeman and Jeff Manderscheid to 3-year terms.

The financial report was given by UFC’s auditor, Dennis Gardiner from Gardiner + Company.  Mr. Gardiner presented the financial report handed out to those in attendance.  He covered the balance sheet, consolidated statement of savings, members equity and discussed some of the statements of cash flows.  For those not in attendance there are copies available at the Winthrop office or by contacting the office.

CEO, Mitch Altermatt, gave a brief review of fiscal year 2019.  He discussed financial items, operational issues and equity retirement.  Mitch reviewed each departments performance for 2019 and operational changes that have happened. He discussed UFC’s working capital and leverage.  He went through a slide showing equity retirements for fiscal 2019 of $805,000 and equity retirements already in fiscal 2020 of $690,000.  Mitch took time to recognize the dedication of the employees and the management team and the hard work they all went through with the financial, marketing and weather issues UFC and membership faced in 2019.

Mitch ended his discussion talking about 2020 and the bright future UFC has moving forward.  The changes we have made are working and showing very good results but there are still many improvements needed to position UFC for success in the future.  UFC has budgeted to be profitable for local operations in 2020 and with 5 months behind us in fiscal 2020 UFC is ahead of budget.  Mitch ended his comments by thanking the membership for their business.

The meeting concluded with a lunch served by Back Street Catering.
 

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