Community Connection Publications — May 2026 Financial Insights

📽 Monthly Video Walkthrough

Your bookkeeper walks through the key numbers — recorded just for you

Key Metrics — May 2026

Current month vs. prior month (April 2026)

Total Revenue

$120,201

▲ +33.9% vs April

3-edition month · 5-month high

Net Income

$51,120

▲ Swing from −$10,698 in April

Adjusted · FRY accrual applied

Cash in Bank

$59,584

▲ +45.5% vs April

Univest Checking + Savings

Profit Quality Score

0.43

⚠ Below 0.8 — see note

OCF ÷ Net Income · UR-driven

⚠ Accrual Note: Net Income and COGS include an estimated accrual of $14,082 for the May 2 edition FRY printing invoice (104 pages, not yet received). Profit Quality Score is depressed by $39,014 in Unearned Revenue release — cash was collected in prior months, not lost.

"May was Community Connection's breakout month — three editions publishing simultaneously drove revenue to a 5-month high and cash nearly doubled to $59,584 — but two open COGS accruals need closing before the true margin is fully on record."

Three Power Insights

The three most impactful findings from your May close

Insight 01

Three Editions Made May the Strongest Month of 2026

Three editions publishing in May — May 2, May 16, and May 31 — produced $120,201 in total revenue, a 34% jump from April and the highest month of 2026. With 304 total pages published, the three-edition structure generated meaningful incremental revenue without proportional cost increases. Even with adjusted COGS, May's gross margin of 53.5% is comfortably the best margin month of the year — the next best was February at 31.1%.

Action: Review the 2026 publishing calendar and identify additional months where a third edition could be added. The May data makes a strong financial case for more three-edition months.

Insight 02

$150K in Unearned Revenue Is Your Pre-Sold Revenue Pipeline

Community Connection holds $150,618 in Unearned Revenue — advertising already sold, already paid for, waiting to run in upcoming editions. This balance decreased by $39,014 in May as pre-sold ads published. Think of it as a business that enters each month already knowing a significant portion of its revenue. A rising Unearned Revenue balance signals your sales team is staying ahead of the publishing calendar — the healthiest position to be in.

Action: Track this balance monthly as a leading indicator. If it drops below $100K, the sales pipeline needs attention before it shows up as a revenue problem.

Insight 03

Two Advertisers Need a Direct Call This Week

$7,478 in A/R is 60 days or older. Eli Miller (KY) carries $2,359 in the 91+ day bucket — at this age, balances approach write-off risk if left until next cycle. Rustic Ridge Equine spans two aging buckets with $2,865 total. These are community advertisers where relationships run deep; a personal phone call from a familiar voice consistently outperforms invoice reminders for this advertiser type.

Action: Call Eli Miller (KY) this week specifically. At 91+ days, this balance needs direct communication before June 30 close puts it in a harder-to-collect position.

P&L Summary — Feb through May 2026

Colors vs. 4-month average: Teal = above avg (favorable) · Coral = above avg (unfavorable for expenses)

Line Item	Feb 2026	Mar 2026	Apr 2026	May 2026	4-Mo Avg
Revenue
Total Revenue	$97,701	$107,695	$89,765	$120,201	$103,840
Cost of Goods Sold
Magazine Printing	$31,725	$48,162	$29,795	$27,626 *	$34,327
Magazine Shipping	$24,420	$25,512	$37,673	$24,940	$28,136
Layout Design	$375	$4,496	$437	$183	$1,373
Empire Express Sharing	$6,012	$10,648	—	—	$4,165
Cost of Labor	$4,816	$4,115	$8,493	$3,234	$5,164
Total COGS	$67,348	$92,932	$76,397	$55,983 *	$73,165
Gross Profit	$30,353	$14,763	$13,368	$64,218	$30,675
Gross Margin %	31.1%	13.7%	14.9%	53.5%	28.3%
Operating Expenses
Meals & Entertainment	$516	$24	$93	$59	$173
Owner's Comp (Omar)	$4,174	$6,143	$9,619	$4,664	$6,150
Professional Fees	$770	$520	$695	$1,170	$789
Reimbursements	$341	$492	$453	$498	$446
Banking / Merchant Fees	$843	$1,204	$782	$1,021	$963
Communication	$250	$315	$185	$250	$250
Marketing	$1,250	$2,711	$980	$2,229	$1,793
Office Expenses	$1,639	$976	$1,021	$1,424	$1,265
Office Rent	$300	$300	$300	$300	$300
Travel	$2,632	$0	$0	$0	$658
Interest Expense	$2,432	$2,190	$2,338	$1,346	$2,077
Employee Gifts	—	—	—	$138	$35
Total Operating Expenses	$15,146	$14,874	$16,465	$13,099	$14,896
Operating Profit	$15,206	−$111	−$3,098	$51,119	$14,374
Operating Margin %	15.6%	−0.1%	−3.5%	42.5%	13.8%
Other Income / (Expense)
Charitable Contributions	—	−$2,100	−$7,601	—	−$2,425
Net Income	$15,207	−$2,210	−$10,698	$51,120	$13,355

* May printing includes $14,082 accrual for May 2 edition (FRY Communications, 104 pages, invoice pending). Empire Express: $0 for April and May — intentional per reporting structure.

Cash Flow Waterfall — May 2026

Where every dollar came from and where it went · Verified to B/S ending cash $62,107

▸ What This Means

Net Income +$62,872

Revenue minus all operating costs produced a strong profit month, driven by three editions publishing simultaneously in May

A/R Collections +$6,509

Customers paid existing invoices faster than new invoices went out — a positive cash signal showing strong collection activity

A/P Paydown −$8,470

More supplier balances were paid than new bills arrived — cash out the door now, but healthy for vendor relationships

Unearned Revenue −$39,014

$39K in pre-collected ad cash was earned as May editions ran. This is a timing shift — the cash was already in the bank from prior months, now showing as earned revenue

Loan Payment −$3,676

On-schedule Mid Penn Bank payment ($1,346 interest + $2,330 principal). Loan balance now $382,654 — down $2,330 from April

Key Accounts Snapshot

Balance positions as of May 31, 2026

Cash in Bank

$59,584

Checking $47,697 · Savings $11,887

▲ +$18,639 vs April

Accounts Receivable

$54,343

DSO: 13.6 days · $7,478 is 60+ days

▼ −$6,509 vs April (improving)

Accounts Payable

$14,045

DPO: 10.1 days · All current or 1–30

▼ −$12,145 vs April (paid down)

Unearned Revenue

$150,618

Pre-sold ad pipeline · Future editions

▼ −$39,014 vs April (earned in May)

Mid Penn Bank Loan (7993)

$382,654

Monthly payment $3,676 · $2,330 principal + $1,346 interest

▼ −$2,330 principal paid in May

Financial Health Ratios

Key indicators of business stability and sustainability

DSCR

3.92×

Debt Service Coverage. Your 4-month average operating profit covers your loan payment nearly 4 times over. Anything above 1.25× is healthy — you're well above.

Adj. Current Ratio

8.29×

Current assets vs. current liabilities, excluding Unearned Revenue (a publishing commitment, not a cash outflow). Adjusted for your business model, liquidity is excellent.

Interest Coverage

38.0×

Operating profit divided by interest expense. You generate 38× more operating income than it costs to service your debt — a very strong position.

Owner Comp % Revenue

3.9%

Omar's compensation as a percentage of May revenue. This is well within healthy norms for an owner-operated business. April ran slightly higher at 10.7%, and the owners also took roughly $40,000 in equity distributions in April (recorded on the balance sheet, not as expense) — May is back to a normal run-rate.

📰 Publication Performance KPIs

Revenue, cost, and margin analysis by edition and month · Jan–May 2026

May Revenue

$120,201

3 editions · 304 pages

Revenue / Page

$395

5-month range: $395–$518

Cost / Page

$184

Adj. · FRY accrual incl.

Total Revenue by Month

Jan–May 2026 · May includes 3-edition month (304 pages)

Revenue per Page vs. Cost per Page

Monthly comparison · Cost per page adjusted with FRY accrual for May · Empire Express $0 for Apr/May per reporting structure

Edition-by-Edition Detail

Edition	Date	Pages	Month Total Pages	Rev/Page	Cost/Page †	Margin/Page
Winter 1	Jan 10	96	192	$442	$342	$100
Winter 2	Jan 24	96	192	$442	$342	$100
Spring 1	Feb 7	96	200	$489	$337	$152
Spring 2	Feb 21	104	200	$489	$337	$152
Spring 3	Mar 7	104	208	$518	$447 ⚠	$71
Spring 4	Mar 21	104	208	$518	$447 ⚠	$71
Spring 5	Apr 4	104	216	$416	$354	$62
Spring 6	Apr 18	112	216	$416	$354	$62
Spring 7	May 2	104	304	$395	$184 **	$211
Spring 8	May 16	104
Spring 9	May 31	96
5-Month Average		225	224	$452	$333	$119

† Cost/Page uses total COGS ÷ total pages published. · * Empire Express $0 for April and May (intentional per reporting structure). · ** May includes $14,082 FRY accrual for May 2 edition (104 pages, invoice pending). · ⚠ March cost/page elevated due to higher printing costs — investigate with FRY if recurring.

Before Next Month

The Event

The actual FRY Communications invoice for the May 2 edition will arrive and need to be reconciled against the $14,082 accrual entered this month. Simultaneously, the Empire Express revenue-sharing statements for any future periods should be confirmed per the current reporting structure.

Estimated Dollar Impact

If the actual FRY invoice differs from the $14,082 estimate, adjust in June. Variance is expected to be less than $1,500 based on comparable invoices. May's adjusted gross margin of 53.5% will be confirmed or slightly revised.

One Action Item

When the actual FRY May 2 invoice arrives (expected by June 15), enter it and reverse the $14,082 accrual. Note any variance in the June close summary. Also call Eli Miller (KY) — $2,359 in 91+ day A/R — before June 15 to confirm payment timing.

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May 2026 Insights for Community Connection Publications