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Another Successful Year
Customers and employees of Rocky Mountain Supply (RMSI) pulled off another year for the record books in Fiscal 2022. Sales for the year ending Jan. 1, 2022, topped $100 million for the first time, finishing at $135,539,071. Before taxes, total net savings for the year ended at $4,458,990--down $2,999,732 from FY 2021. Much of the difference is due to significantly lower earnings of cooperative partners (primarily CHS, Inc.) during the pandemic. CHS is bouncing back, and we look for stronger earnings and patronage dividends from them in the future. RMSI’s local net earnings for FY 2022 finished at $2,930,473—also down from FY 2021. Last year’s earnings were artificially enhanced by the government’s Paycheck Protection Program (PPP) which boosted income by just over $1 million. Subtracting that out, the local net savings for FY 2022 is $697,730 above the local net savings for FY 2021. The main thing to focus on is that FY 2022 is the second year in which RMSI’s local savings topped $2 million.
Records set across divisions
The major project of FY 2022 was construction of our new retail store at Townsend. (See Bill Balliet’s story on page 1.) Our old store was able to operate without disruption while the new store was built. Without internal disruption, then, we were able to set sales records in many product areas:
• We topped thirty million gallons of refined fuels sold.We also set records in fertilizer tonnage, in-store sales, and seed sales.
• Many product areas have set records for two, three or even five years in a row. My point is this: all product areas contributed significantly to our success in FY 2022. We are strong across all divisions of the company.
Returning cash to members
As a result of RMSI’s success this past fiscal year, we will be sending out patronage dividend checks totaling over $800,000 this year. Our farm and ranch members will again receive the equity portion of their patronage dividends in the form of un-qualified equity, which does not carry a current tax obligation for the patrons. We also plan to send out approximately $750,000 in equity retirement checks to patrons based on their ages and on the year in which equities were earned. Between patronage dividends and equity retirements, we will put into the hands of our members almost $1.6 million in cash. Kudos to the employees and customers of RMSI who have proven themselves very resilient. You are fueling our growth and success in the present and allowing us to invest to be relevant far into the future.