Club achieves second-best profit in history; falls short of projections

Following is the text of the report given by Treasurer Myron Belkind at the National Press Club general membership meeting on Jan. 20:

I stand before you to report on the Club¹s finances, and as you will appreciate often happens in our profession, there is good news and some not-so-good news but still very hopeful news for the future of the National Press Club.

The good news is that the Club finished 2011 with $1.236 million in profits,
the second best in the Club¹s history, exceeded only by the $1.45 million in
2010.

The not-so-good news is that the 2011 profits were $300,000 below budgeted
profits of $1.54 million, largely because of a downturn in performance from
September as revenues were down across the board in the Club¹s operations.

This could reflect the continuing uncertainty about the economy, which
impacted room rentals, catered events and the Broadcast Operations Center,
whose revenue was down $240,000 from a record in 2010 but, still, the BOC
had revenue in excess of $2million for the second consecutive year, and when
revenue is in the $2 million range that provides a solid basis for a
profit-generating Broadcast Operations Center.

Another reason for the shortfall in budgeted profits, frankly, is that the
Board set a very high bar for continuing profit growth rather than
low-balling that number, and hence while somewhat disappointed with a profit
of only, and I stress only, $1.236 million in profits, we are satisfied.

And we are very, and I stress very, confident that in 2012 we will achieve
our fourth consecutive year of profits in excess of $1 million, especially
against the following additional financial achievements:

--Debt. We continue to pay down the Club¹s debt ­ from $1.35 million at the
end of 2010 to $926,000 at the end of 2011, and - how is this for a
headline? - we expect to be debt-free by July 2013.

--Reserves: Our current cash/reserves are $1.23 million, and we will strive,
as mandated by the board, to reach $3 million by July 1, but that might be a
reach in the current economic climate. Still, by July 1, we expect our
reserves to be at an all-time high.

--Costs: Thanks to the efforts by Executive Director Bill McCarren and his
staff, we have costs well under control. Last year, they were $500,000 below
2010 costs and $800,000 below the budgeted costs for 2011.

Happily, we have not cut back on any membership services as part of the
hold-down on costs; we have not increased food prices in the Club¹s
restaurants, and we continue to provide free continental breakfast, free
hors d¹oeuvres Monday through Thursday in the early evening and tacos on
Friday nights (provided you buy a drink), and free use of the health center,
as well as major facilities for you to use your laptops or the Club¹s
desktops in the work area on the 14th floor, which I have noticed is often
nearly full whenever I come to the Club.

And while this month marks the first increase in more than a decade in bar
prices ­ approximately a dollar a drink for alcoholic drinks ­ that was done
as part of a package in which we added a happy hour on Thursdays,
traditionally a busy night at the bar, and also kept our membership dues
frozen this year.

Now I would like you to bear with me for less then a minute to give you four
easy ways to contribute to the Club's economic success:

1 - Attend an NPC luncheon and bring a guest who might become a new
member!

2 - Bring your spouse or partner or girlfriend or boyfriend to dinner at
one of our wonderful restaurants. If you have not been in a couple months
or a couple years, you will enjoy the changes that Susan Delbert and her
talented staff have made.

3 - Make sure we have your email address so we can let you know what is
going on at the Club.

4 - Fill out or update your entry in the online Directory so we can find
you when something of interest is happening.

These four simple things will make the Club a better place for you and for
others and will improve the Club in significant ways. It is not much to ask,
but just think what would happen if all 3,000-plus members did these four
things.

I now would like to conclude on a light note by a reference to the
Republican presidential primary. Naturally, the Club cannot and will not
take a stand on which candidate would be preferred to be the Republican
nominee. However, it is our view that a quick end to the Republican primary
contests would bring some of the news focus back to Washington, along with
more news conferences held at the National Press Club. That would be welcome
for business conditions.

Nevertheless, the Club will survive ­ and so will those of you who thrive on
covering the political campaign ­ even if the primaries do not produce a
winner promptly.

And we look forward to seeing everyone on election night, Tuesday, November
6, to watch the results in the Reliable Source and the Truman Lounge and, if
you are working the political beat that night, to file your dispatches from
the National Press Club.

Thank you.