American Bonanza SocietyFinancial ReportAmerican Bonanza SocietyFinancial Report2010 Annual MeetingSeptember 24, 2010

Membership Revenue

• Slight increase in foreign postage.• Small increase in new membership dues.• Renewal dues steadily declining since 2007.

Magazine Performance

• Static profit margin of about 9%.• Increase in bad debts in recent years. • Production cost controls assist in profitability.

2005 – 2010 Projected

General & Admin. Revenue

Insurance Program Funds have been dropping 8-10% a year. Lower premiums from competitive market. How do we maintain this revenue stream?

General & Admin. Revenue

Investment Income UBS actively managing investment portfolio. Income and unrealized gain (loss) improving. Lower management fees are expected.

Convention & Merchandise

• Convention profitability on the decrease.• Location appears to play a key role.• Replaced with ABS Experiences in 2011.

• Store profitability has been stable & reliable.• New inventory sparked small sales increase.• Oshkosh sales were down this year.

General & Admin. Expenses

• Changes to travel & business expense policy.• Modernizing operating systems.• Effects of Executive Director transition.

Total Revenue & Expenses2005 – 2010 Projected

• Expected loss $72,000 in 2010.• Catching up with member needs.• Optimization of resources important to future.

American Bonanza Society Air Safety Foundation, Inc.Financial ReportIncluding BPPP, Inc. - a wholly owned subsidiary

American Bonanza Society Air Safety Foundation, Inc.Financial ReportIncluding BPPP, Inc. - a wholly owned subsidiary

2010 Annual MeetingSeptember 24, 2010

ASF & BPPP Donations2005 – 2010 Projected

• Donations to ASF & BPPP declined in 2010.• 2009 spike is $1,000,000 Maciel donation.

ASF Service Clinic Revenue and Expense

• Service clinics offered at breakeven price.• 239 planes inspected during FY 2010.

BPPP Revenue & Expense2005 – 2010 Projected

• Estimated $20,000 operating profit in FY10.• Incentive programs for first time attendees.• More flying attendees in FY10 than in FY09.

ASF & BPPP Net Assets2005 -2010 Projected

• 2008 drop attributed to economic factors.• 2009 spike from $1,000,000 Maciel donation.• 2010 sees improvement in investment market.