Financials - 2016 APA Annual Report

03 April, 2017 in Financials

Financial Highlights

Table 1 – Revenue & Expenses Table 2 – Balance Sheet Table 3 – Net Assets Table 4 – Performance Returns/Market Value Portfolio Composition Table 5 – Grants & Contracts

Table 1 - APA Revenues & Expenses

OPERATING ACTIVITY

REVENUES	2014	2015	2016
Dues and fees	$10,451	$9,962	$9,302
Journal subscriptions	11,633	10,378	9,599
Licensing	64,515	67,584	70,713
Publication sales	13,662	11,726	13,727
Other	12,146	11,646	12,147
TOTAL REVENUE	$112,407	$111,296	$115,488

EXPENSES	2014	2015	2016
Salaries and benefits	$62,300	$62,875	$62,615
Publication production costs	17,129	17,197	17,218
Space costs	8,254	8,306	8,442
Boards/committees/other meetings	4,756	4,369	4,739
Consulting/contractual/temporary	10,027	9,245	8,376
Printing/postage/office	3,752	3,738	2,245
Equipment/maintenance/depreciation	1,931	1,333	2,110
Stipends/tuition/grants/honoraria/contributions	4,940	5,283	5,083
Other	7,972	8,667	11,059
TOTAL EXPENSES	$121,061	$121,013	$121,887

	2014	2015	2016
NET LOSS FROM OPERATIONS	$(8,654)	$(9,717)	$(6,399)

Composition of Net From APA Operations:	2014	2015	2016
Gain/(loss) from undesignated activities	$279	$(687)	$3,108
Cash flow from buildings used for operations	(3,500)	(4,100)	(5,000)
Cash flow from buildings used for designations	(500)	(500)	(500)
Loss from designated activities	(4,933)	(4,430)	(4,007)
Net Loss From Total APA Operations	$(8,654)	$(9,717)	$(6,399)

NONOPERATING ACTIVITY

LONG-TERM INVESTMENT ACTIVITY	2014	2015	2016
Realized gain/(loss) on sale of long-term investment	$9,594	$(1,344)	$2,718
Investment management fees	(614)	(522)	(388)
Unrealized gains/(losses)	(6,665)	(6,227)	4,617
NET LONG-TERM INVESTMENT ACTIVITY	$2,315	$(8,093)	$6,947

REAL ESTATE ACTIVITY	2014	2015	2016
10 G Street operations	$3,113	$3,705	$3,357
750 First Street operations	5,597	4,191	2,836
Unrealized gain/(loss) on interest rate swap (LLC)	(1,207)	568	1,270
Unrealized gain/(loss) on interest rate swap (APA)	(802)	254	684
Interest on 750 First Street term loan (BoA)	(1,171)	(1,136)	(1,087)
Deferred rent	458	474	466
NET REAL ESTATE ACTIVITY	$5,989	$8,056	$7,526

OTHER NONOPERATING ACTIVITY	2014	2015	2016
Other income	$ —	$ —	$1,300
Loss on disposal of property and equipment	(308)	(1)	—
Legal settlement reserve	(4,215)	—	—
Miscellaneous expense	—	(6,918)	(945)
Income tax expense/provision	(909)	(919)	(800)
NET OTHER NONOPERATING ACTIVITY	$(5,432)	$(7,838)	$(445)

	2014	2015	2016
TOTAL NONOPERATING ACTIVITY	$2,872	$(7,875)	$14,028

Note. All figures shown in thousands. BoA = Bank of America.

Table 2 - Balance Sheet (Consolidated)

ASSETS	2014	2015	2016
Cash and short term investments	$44,349^a	$48,879^a	$54,608
Long-term investment portfolio	93,587^a	59,311^a	57,849
Real estate/equipment	80,862	83,990	81,908
Other	46,113	41,646	40,615
TOTAL ASSETS	$264,911^a	$233,826^a	$234,980

LIABILITIES	2014	2015	2016
Divisions/other groups	$10,312	$10,069	$10,439
Long-term debt/swap liability	107,099^a	102,583^a	96,873
Accounts payable/accrued expenses/other	31,627	22,968	21,947
Deferred revenues	54,369	54,127	53,882
TOTAL LIABILITIES	$203,407^a	$189,747^a	$183,141

	2014	2015	2016
NET ASSETS	$61,504	$44,079	$51,839

	2014	2015	2016
TOTAL LIABILITIES AND NET ASSETS	$264,911^a	$233,826^a	$234,980

Note. All figures shown in thousands.
^a 2014 and 2015 numbers were changed to conform to 2016 financial report presentation.

Table 3 - Net Assets Summary (Consolidated)

	2014	2015	2016
NET ASSETS BEGINNING BALANCE (CONSOLIDATED)	$67,219	$61,504	$44,079

ASSETS	2014	2015	2016
APA operations (see also Table 1)	$(8,654)	$(9,717)	$(6,399)
APA nonoperating activity (see also Table 1)	2,872	(7,875)	14,028
Practice Organization operations	(45)	174	(20)
Practice Organization nonoperating activity	112	(7)	151
TOTAL CHANGE IN NET ASSETS	$(5,715)	$(17,425)	$7,760

	2014	2015	2016
NET ASSETS ENDING BALANCE (CONSOLIDATED)	$61,504	$44,079	$51,839

COMPOSITION OF ENDING UNRESTRICTED NET ASSETS	2014	2015	2016
APA unrestricted/undesignated net assets	$39,244	$22,568	$31,646
Practice Organization net assets	1,823	1,990	2,121
Investment in APA^a	5,656	4,062	3,164
The Trust Business Agreement^a	6,144	5,899	4,845
Investment in APA 2.0^a	2,400	3,727	5,152
Special Purpose Fund (drawn from long-term portfolio)^a	2,002	3,946	4,067
Strategic Plan Initiatives^a	1,965	—	—
Intern Stimulus Plan^a	1,167	602	88
Accreditation^a	636	773	756
Convention^a	207	350	—
APA Centralized Application for Grad. Ed. in Psychology^a	260	162	—
GGP Implementation Workgroup^a	—	—	—
Web Relaunch^a	—	—	—
Publications and Databases R&D^a	—	—	—
ENDING UNRESTRICTED NET ASSETS	$61,504	$44,079	$51,839

Note. All figures shown in thousands. GGP = Good Governance Project; R&D = research and development.
^a APA-designated activity.

2016 LONG-TERM PORTFOLIO COMPOSITION

Large Cap Equity – 67.7%
Small/Mid Cap Equity – 18.6%
Developed Non-US – 13.6%
Cash – 0.1%

Table 4 - Performance Returns / Market Value

2016 LONG-TERM INVESTMENT PORTFOLIO	Portfolio Type	Market Value^a 12/31/2016	% of Market Value	2016 YTD Returns (%)^b
Southeastern Asset Management	Large Cap Equity	11.0	19.7%	19.9%
Vulcan Value Partners	Large Cap Equity	10.9	19.5%	12.0%
Schafer Cullen	Large Cap Equity	8.0	14.3%	12.6%
Bahl & Gaynor	Large Cap Equity	7.9	14.2%	12.9%
Fuller & Thaler	Small Cap Equity	3.8	6.8%	21.3%
Russell 2000 Growth ETF	Small Cap Equity	3.3	5.9%	0.0%
Russell Mid Cap Growth ETF	Mid Cap Equity	3.3	5.9%	0.0%
First Eagle Overseas	Developed Non-US	3.8	6.8%	5.9%
Cap Group International	Developed Non-US	3.8	6.8%	0.0%
TOTALS		$55.8Market Value[a] 12/31/2016: $55.8	99.9%% of Market Value: 99.9%		2016 ANNUAL RETURN: 12.7%	RETURN SINCE INCEPTION: 10.2%

		2016 ANNUAL RETURN		12.7%
		RETURN SINCE INCEPTION		10.2%

Note. ^a In millions. ^b Returns are net of fees.

Table 5 - Grant and Contract Activity in 2016

Title	Grant or Sponsor	Total Award ($)
Cyber Mentors: Minority HIV Researchers	National Institute of Mental Health	1,315,610
International Psychology Network for LGBTI Issues	Arcus Foundation	300,000
APA Best Practices Dissemination Network	Agency for Healthcare Research and Quality	294,900
Capacity Building Assistance to State and Territorial Education Agencies	Centers for Disease Control and Prevention	1,200,000
Education Development Center, Inc. – Mental Health Care Provider Education in HIV/AIDS and Mental Health	Substance Abuse and Mental Health Services Administration	249,173
Minority Fellowship Program Transition Age Youth Fellowship	Substance Abuse and Mental Health Services Administration	2,182,655
Center for Health Professions Leadership on Tobacco Cessation	The Regents of the University of California	24,050
Committee on Children, Youth & Families Practitioner Reference Guide	William T. Grant Foundation	15,219
Group Travel to 31st ICP Yokohama, Japan 2016	National Science Foundation	45,000
2016 APA Summit on National Assessment of Psychology	National Science Foundation	29,100^a
Center for Mathematical Talent	NYU (Sloan Foundation)	10,000^a
Transforming Clinical Practice Initiative, Support and Alignment Networks 2.0	Centers for Medicare & Medicaid Services	2,040,161^a
Minority Fellowship Program in Mental Health and Substance Abuse Services	Substance Abuse and Mental Health Services Administration	4,906,916
TOTAL		$12,612,784

Note. Most grants include multiyear funding. Only active externally funded grants in excess of $1,500 are listed.
^a New award for 2016.

The 2016 APA financial data have been certified by Archie L. Turner, Chief Operating Officer and Chief Financial Officer, American Psychological Association.