board of directors meeting minutes sunday...

ACerS Board of Directors Meeting Minutes, January 27, 2013 of 5

BOARD OF DIRECTORS MEETING MINUTES Sunday, January 27, 2013 Hilton Daytona Beach Resort, Daytona Beach, Florida Coquina F Room

Board Members Present: Board Member Absent: Richard Brow, President (arrived at 11:30am) Bill Lee, Director George Wicks, Past President Others Present: David Green, President-elect Geoff Brennecka, EIC Chair Ted Day, Treasurer Bill Kelly, Finance Committee Member Keith Bowman, Director Jian Luo, Chair, BSD Beth Dickey, Director Kathleen Richardson, President-elect Nominee Bill Fahrenholtz, Director Sujanto Widjaja, Chair-elect, ECD Vijay Jain, Director Staff Present: Ivar Reimanis, Director Megan Bricker Lora Rothen, Director Eileen De Guire Robert Schwartz, Director Sue LaBute Jay Singh, Director Mark Mecklenborg

Non-Voting Board Members Present: Peter Wray David Johnson, Parliamentarian Charlie Spahr, Executive Director

1.0 CALL TO ORDER AND OPENING STATEMENTS

President-elect Green called the meeting to order at 10:05 a.m. and chaired the meeting until President Brow arrived at 11:30 a.m. The agenda was approved with no additions.

2.0 APPROVAL OF CONSENT AGENDA

2.1 Approval of October 6, 2012 Board Meeting Minutes

2.2 Acceptance of Committee Reports

On motion by Rothen, seconded by Jain, the board voted unanimously to approve the consent agenda of January 27, 2013. Note: the order was altered slightly to accommodate Brow’s arrival.

3.0

PRESIDENT’S REPORT

3.1. 2013 Presidential Committee Reports

Fellows Review Committee Brow reported that he appointed a Presidential Committee consisting of John Kieffer as chair and members Randy Johnson, HT Lin and Jeff Smith. They will review the Fellows nomination process and will also address the ratio of Fellows elevated annually. The committee will present recommendations to the Board for consideration at the June meeting in San Diego.

Diversity Committee As was discussed at the October Board meeting, a proposal was submitted by Lynnette Madsen recommending the establishment of a Diversity committee. At that time, it was agreed that a Presidential Committee would be assigned to review the topic and make recommendations for possible Board action. Brow will follow up with the Committee Chair, Linda Jones, on the status.

3.2. Ceramic Education Foundation Update

ACerS Board of Directors Meeting Agenda, 2 June 2013 Attachment 1 Page 1 of 14


Spahr reported that he and Dick Brow met with Joel Moskowitz at Ceradyne, Inc., in November to present a foundation plan modeled after the Foundry Education Foundation. Moskowitz would like to explore the idea further and with the possible inclusion of Alfred University. A follow up meeting is scheduled with Moskowitz and Linda Jones from Alfred on Tuesday.

3.3. Strategic Planning for Emerging Opportunities Update Brow reported that Technical Interest Groups were presented to the Strategic Planning for Emerging Ideas committee; they initially plan to promote two or three themes, such as MCARE, Modeling or Biomaterials. TIGs were also discussed with Division leaders during their recent conference call with Brow and Spahr where they requested that the Division leaders bring the concept to their Divisions. A column by Brow featuring the TIGs will be published in the March Bulletin.

3.4. BOD Liaisons to Divisions/Classes – Guidelines [Appendix A] As requested, staff prepared the attached guidelines for the Board members to use as liaisons to the Divisions.

3.5. Purdy Award – Proposed Changes to Selection Process Green discussed his concern over the Purdy award not being presented last year, mainly due to the award rules being overly broad in scope. He thinks the extent of the search too large making it is essentially impossible to satisfy the goals of the award and that perhaps the award process or purpose need to be revised.

Action item: Schwartz and Fahrenholtz volunteered to work with Green to review the Purdy Award criteria and recommend a path forward.

4.0 FINANCIAL UPDATE

4.1 Preliminary (Unaudited) 2012 Results Day reported that the Society is in a very good financial position. Spahr reviewed the 2012 unaudited results, reporting that over $1 million was added to reserves for the year (operations and investments). Operations produced a surplus of $586k, and return on investments was approximately 10%. Spahr noted the following highlights:

- Membership revenue is $6k ahead of last year’s revenue but $12k below budget - Combined surplus from ‘other meetings,’ MS&T and ICACC are $48k below 2012 budget but ahead of

2011 by $70k, due mostly to 3rd tier revenues from MS&T of $52k - Phase surplus is outperforming budget by $111k, and a new five-year agreement with NIST was signed. - Bulletin revenues are exceeding budget by $43k that includes a one-time $20k from AMS conversion - CPC Revenues are $220k ahead of 2012 budget - Magazine advertising revenue (CM and PMI) ahead of budget by $59k, subscription revenue below

budget by $27k - DVD and book sales continue to outperform in 2012, $181k over budget year-to-date and $165k ahead

of last year - Potters Council revenue is ahead of budget by $7k

4.2 Investment Portfolio Update and Major Fund Bank Balances Day reported that the investments yielded a 9.7% rate of return, reaching $6 million in reserves, which is almost 10 months of operating expenses and exceeds the goal of six months of operating expenses in reserves.

4.3 2013 Budget Review and Approval Day and Spahr reviewed the 2013 budget which projects an increase in both expenses and revenue. Spahr noted the following highlights:

- ACerS revenue growth of $376k is being driven by the increase in ‘other meetings’ being held in 2013. These meetings are also driving expenses higher, accounting for 40% of the ACerS expense increase over 2012. PACRIM and UNITECR are the largest contributors to the increase. Revenue from MS&T’13 will be split between five partners and is budgeted at $70k less than in 2012.



- Investing $279k in operations for product development, including data products and services for corporate members. - $98k - product development manager to support development, marketing and sales of new data and

reference products - $27k - increased AMS operating costs for full year on platform - $22k - administrative services staff to assist with meetings and technical books - $20k - additional funding of member marketing efforts at division level - $112k - project consulting expenses including data product development, non-profit educational

Foundation, accelerated electronic product development, transition to new Bulletin management and potential migration to in-house customer service function

On motion by Reimanis, seconded by Jain, the board voted unanimously to approve the 2013 Budget as recommended by the Finance Committee and presented in Appendix B.

5.0 EXECUTIVE DIRECTOR’S OPERATIONS UPDATE

Meetings Update Spahr reported that the EMA meeting that just took place in Orlando resulted in a 50% increase in attendance over last year, with strong student and international participation.

The ICACC meeting taking place this week is projected to exceed attendance projections, the exhibition performed over budget, but there is concern that the Army Research Lab employee travel restriction will impact presenters of the armor symposia.

The Structural Clay Products Division is planning a meeting with the National Brick Research Center in May in Salt Lake City.

PACRIM10 is ahead of budget as well as the last PACRIM (2009), the program is strong with HT Lin doing a great job as the chair.

UNITECR 2013 has exceeded projections for size and number of speakers, and a poster session was added to accommodate all the submissions.

MS&T’13 meeting projections present a concern due to the addition of a fifth partner, and the government employee travel restrictions, which will be an ongoing problem for all of our conferences.

World Kitchen Litigation Spahr provided a status update on the litigation with World Kitchen. In January, ACerS legal counsel filed motions to dismiss and an ‘anti-SLAPP’ motion. World Kitchen has until mid-February to respond to the filing.

Customer Service and Staffing Update Over the next six to nine months staff will be evaluating the potential transition of the customer service function in-house; current staff is undergoing extensive cross-training in preparation, as well as documenting all major functions currently handled by the third party vendor (BrightKey).

A new staff position was added, spilt between ACerS and CPC, to support additional ACerS meeting activity and CPC launch of additional electronic products.

CPC Product Development Spahr reported the highlights of CPC products planned for 2013: - 12 new Ceramic Arts Daily Presents DVDs - launch one per month - New sponsored DVD for educational market to be released in late first quarter - Compilation DVDs based on new content with first title to be released in early second quarter - Streaming video R&D for possible 2014 launch - Tablet editions (iPad and Android) available for single-copy purchase and subscriptions to be launched

in early first quarter (March issue) - Digital back issues available for purchase to launch in third quarter - Enhanced tablet editions of top-selling Ceramic Art Handbooks to be released in second quarter, and

one per month thereafter.



- Co-publish three new titles with Bloomsbury in second or third quarter - Two new in-house titles scheduled to be released in 4th quarter

6.0 STRATEGIC INITIATIVES

6.1 New ‘Art, Archaeology and Conservation Science’ Division Spahr reviewed the activity to date in the effort to launch a new Art Division:

- Email ballot was sent to members of ACerS Art Division in December 2012 asking them to vote for/against a proposal to rename the division and redefine the mission, and to vote for new officers - 17 members voted, with 16 voting yes to change the name to the “Art, Archaeology and Conservation Science Division”

- All 17 voted to change the mission to: “To advance the scientific understanding of the materials found in ceramic art, and to provide information that aids in the interpretation, reconstruction and preservation of traditional ceramic art and artifacts, as well as the techniques used in their creation”

On motion by Singh, seconded by Schwartz, the board voted unanimously to approve the name change of the Art Division to Art, Archaeology and Conservation Science and to approve the redefined mission of the Art Division as described above.

The Art Division members also approved the following slate of officers for an initial term through October 2013: Chair: Lynnette Madsen, National Science Foundation Vice-Chair: Marc Walton, Getty Conservation Institute Secretary: Glenn Gates, Walters Art Museum Trustee: Katherine Faber, Northwestern University Action item: request that the officers of the AACS Division complete the ‘Division and Class Mission and Vision Template.’

6.2 Ceramic Products Database Development Steve Freiman, representing R&R Data Services, made a report proposing that they help ACerS develop a plan and conduct a study to determine the data services that could be offered by ACerS, for a fee of $20k.

On motion by Fahrenholtz, seconded by Green, the Board voted to defeat the proposal submitted by Steve Freiman on behalf of R&R Data Systems, with 2 in favor, 9 against and 1 abstention.

Action item: Spahr and Brow will request that R&R Data Services submit a revised proposal to include an outline of what else could come out of it for ACerS, identifies who would be interested in the potential product, what are the obstacles and establish a path forward. Decide if there’s another path to follow, other things to consider. There is great value in a central depository of data, can R&R do something else that would be useful to ACerS? 6.3 ACerS Membership Spahr reviewed the membership campaigns and tactics that were previously launched and reviewed strategy and tactics for growth going forward:

Directing member recruitment efforts and resources at the Division level - e.g., would ‘member get a member’ be more effective at Division-level activities - Each Division should have a volunteer to serve as a single point of contact for membership recruitment

Additional emphasis on recruitment through ACerS YPN organization Board members and society leaders personal involvement in recruitment Establish relationships with additional international societies, e.g., like we are doing with India Create more value (and incentive) for corporate/industry members to join ACerS, e.g., website devoted

to their business/commercial interests



7.0 EXECUTIVE SESSION

On motion by Schwartz, seconded by Green, the Board voted to move into executive session.

8.0 COMMITTEE APPOINTMENTS

On motion by Singh, seconded by Jain, the Board voted unanimously to approve Jacques Lamon as a member of the Books Subcommittee for the term of October 2012 to October 2015.

On motion by Jain, seconded by Reimanis, the Board voted unanimously to approve Sanjay Mathur as a member of the Nominating Committee for the term of January 2013 to October 2014 (to replace Tatsuki Ohji).

9.0 NOMINATING COMMITTEE REPORT

The Board voted to approve the slate of nominees for the positions of president-elect and board of directors as provided by the 2012-2013 Nominating Committee:

President-elect for Society term 2014 – 2015:

Mrityunjay (Jay) Singh - motion carried unanimously with 10 yes votes (Singh was not present during this discussion and vote)

Board of Director Nominees for Society term 2013 - 2016:

John Halloran - motion carried unanimously with 11 yes votes

Edgar Lara-Curzio - motion carried unanimously with 11 yes votes

Tatsuki Ohji - motion carried unanimously with 11 yes votes

10.0 EXECUTIVE PERFORMANCE ASSESSMENT

Report on December 2012 Electronic Vote Two motions were approved in December via electronic ballot.

11.0 DISCONTINUE EXECUTIVE SESSION AND ADJOURNMENT

On motion by Jain, seconded by Reimanis, the Board voted to end the executive session and adjourn the meeting.

BOARD OF DIRECTORS MEETING SCHEDULE

2013 San Diego, CA Sunday, June 2 10:00 a.m. – 5:00 p.m. (PACRIM) Montréal, Québec, CN Saturday, October 26 10:00 a.m. – 5:00 p.m. (MS&T)

2014 Orlando, FL Saturday, January 25 10:00 a.m. – 5:00 p.m. (EMA) Baltimore, MD June TBD (CLS) Pittsburgh, PA Saturday, October 11 10:00 a.m. – 5:00 p.m. (MS&T)


BOD Liaisons to Divisions/Classes ‐ 2012‐2013

Division/Class Board Liaison Art Division Robert Schwartz Basic Science Division David Green Cements Division Jay Singh Electronics Division Robert Schwartz Engineering Ceramics Division Ivar Reimanis Glass & Optical Materials Division Dick Brow Nuclear & Environmental Technology Division Vijay Jain Refractories Ceramic Division Lora Cooper Rothen Structural Clay Division Bill Lee Whitewares & Materials Division Bill Lee Ceramic Educational Council Bill Fahrenholtz National Institute of Ceramic Engineering Lora Cooper Rothen & George Wicks

Guidelines for the Board Liaisons to the Divisions: Sit in on quarterly division leader calls that ACerS schedules, if available Periodically review division websites on ceramics.org and provide feedback for improvement Review division brochure for those divisions that have requested one, and assist with/review

marketing plan that is developed for the division to attract new members Attend division annual meetings for at least a day, if possible, to become more familiar with

programming (i.e. Cements, GOMD, EMA, St. Louis/RCD or UNITECR, etc.) Attend division executive committee meetings and general business meetings at MS&T, if

schedule permits Contact division officers by email at least once a quarter (or more often) to touch base and be

available as a resource

ACerS Board of Directors Meeting Agenda, 2 June 2013 Attachment 1 of 14

The American Ceramic Society 2013 Budget

For 2013, we are projecting revenues to grow 10% overall, with ACerS revenue growing 13% and CPC sales increasing 6%. Combined net operating surplus is budgeted at $103k. Total revenues are projected at $7.81 million while expenses will increase to $7.70 million. ACerS is budgeted to deliver a ($226k) deficit and CPC is planned to generate a surplus of $330k. ACerS

In 000’s 2013 Budget 2012 Forecast

2011 2010 2009 2008

Revenues $4,298 $3,811 $3,326 $3,287 $3,270 $3,672Expenses 4,524 3,763 3,190 3,326 3,496 3,827(Deficit) ($226) $48 $136 ($39) ($226) ($155) CPC


2011 2010 2009 2008

Revenues $ 3,508 $3,310 $ 3,124 $ 2,931 $ 2,807 $ 2,873Expenses 3,178 2,956 2,858 2,819 2,748 2,888Surplus/(Deficit) $330 $354 $266 $112 $59 ($15) TOTAL


2011 2010 2009 2008

Revenues $7,805 $7,121 $6,450 $6,218 $6,077 $6,545Expenses 7,702 6,718 6,048 6,145 6,244 6,715(Deficit) $103 $403 $402 $73 ($167) ($170) Major Themes and Factors in 2013 Budget The growth in ACerS 2013 revenue is almost exclusively from the ‘Other Meetings’ category, which includes the PACRIM and UNITECR meetings. Revenue for ‘Other Meetings’ is growing from $936k to $1,509k, while associated expenses for these meetings is increasing from $864k to $1,276k. The revenue for two of our key annual meetings, MS&T and ICACC, are both projected to decline because of uncertainty surrounding travel and conference budgets as well as a decrease in ICACC sponsorship revenue. The non-US (Montréal) location of MS&T adds another potentially negative variable to MS&T. Membership dues revenue is projected to grow 1% in 2013. However, the Membership revenue line shows a slight decrease due to some one-time subscription revenue in 2012 that will not re-occur in 2013. Increased emphasis will be placed upon 1) member retention programs and 2) recruitment of new members through division level marketing of member benefits. The Phase Diagram product is projected to post a good performance, but down from 2012, which included some one-time expense offsets in the form of lower royalties. Technical Books, Journals and the Bulletin are all projected to have another solid year. Journal revenue is slightly depressed by the continued erosion of ‘page-charge’ revenue (optional for Journal authors), while Technical Books should have a strong year with a boost in contribution from the UNITECR proceedings. Bulletin


revenue is projected slightly down from 2012 because of some one-time Bulletin subscription revenues that were realized in 2012. All CPC product lines are expected to grow in 2013, including for the first time in several years, magazine subscriptions and advertising. Most of the subscription revenue increase will be due to the roll-out of electronic versions of CPC’s products (mobile ‘apps’) which should help expand magazine audiences. Ceramic Arts Daily (CAD) projects a 2.4% increase in book and DVD sales, from $836k to $856k. Potters Council also expects strong revenue growth, with the introduction of a second international workshop, building on the success of its initial ventures. In midyear 2012, the IT department was formally separated from Administration and placed under its own Director. Accordingly, 40% of related payroll and benefits for the IT director were reclassified from various departments into the IT department. In 2013, IT expenses will reflect a full year of this change. There are several areas of investment included for ACerS and CPC in the FY 2013 budget:

Product Development Manager to support development, marketing and sales of new data and reference products ($98k)

New staff position within CPC to support the continued rollout of digital products ($43k) Increased AMS (Avectra) operating costs ($27k) reflecting first full year on new platform Additional funding of ACerS member marketing efforts at the division level ($20k) Consulting expenses, with direct oversight of Executive Director, for potential projects

including data product development, setting up a non-profit educational Foundation, support for accelerated electronic product development, transition to new Bulletin management as current Director leaves full time employment, potential migration to in-house customer service function ($112k)

ACerS Individual Membership – For 2013 the membership department is planning a nearly 2% growth in individual members (from 5,565 in 2012 to 5,667 in 2013). This includes approximately 1,500 new members and an overall retention rate of 75% for current individual membership. The plan includes the following:

Retention

Working to raise retention rate – new 1st year member program put into place Earlier telemarketing calls Retention work through the divisions

Recruitment Specific marketing for divisions includes linked-in/google ad words, working with

sister meetings/organizations, more division help recruiting new members at PACRIM and UNITECR

Society-specific efforts include more sign up of new members at non-ACerS meetings, such as PACRIM and UNITECR at a specific membership sign up booth

Recruitment of more corporate members will result in new individual members More international members and Associate members

Corporate Membership – Corporate membership has been a difficult road in 2012. However with the efforts to reach out to more corporate members with industry specific programming/idea exchanges, we think we will see a rise in this area. We are anticipating a 6% growth for 2013


(113 for 2012 to 120 for 2013) with an 87% retention rate of current members. Programs include: Retention

Adding a first year member program Contacting current members more throughout the year

Recruitment

Working with divisions to not only provide additional individual members but also recruit new corporate members.

Hold three corporate sessions with programming and idea exchanges this year (starting with Columbus, Ohio).

Work more with international companies such as India to recruit more corporate members

Membership Revenue – For 2013, individual membership revenue grows from $404k to $407k and corporate membership revenue grows from $61k to $64k. Highlights of expense variances from 2012 to 2013:

Direct marketing costs are increasing for division marketing, corporate marketing materials and three corporate roundtable events.

Food and beverage costs will be higher in 2013 because of higher costs in Montréal and San Diego.

Travel is higher due to increased conference activity. International Conference on Advanced Ceramics and Composites (ICACC 2013) – Revenues from ICACC 2013 are budgeted at $434k, a decrease of $21k from 2012. This decrease is primarily due to $22k less in sponsorship revenue compared to 2012. Note that in 2012, ECD raised $37k for speaker and special program support, including two invitation-only dinners that will not be held in 2013 unless additional funding is raised. A registration revenue decline of $9k will be offset by an exhibit revenue increase of $10k. ICACC 2013 attendance is budgeted to decrease by 25 people (to 998 attendees) due to fewer abstract submissions and travel restrictions recently put in place by the U.S. government. The exhibit will include 54 booths versus 48 in 2012. Expenses are budgeted at $307k, which is $7k higher than 2012. After having its rental fees waived in 2012 for allowing another exhibit to take place at the same time as ICACC 2012, ACerS will once again pay $8k in rental costs for the Ocean Center. Operating surplus is budgeted to decrease from $155k in 2012 to $127k in 2013. MS&T/Annual Meeting – Although we expect the MS&T 2013 surplus to be similar to 2012, The American Ceramic Society’s share of this MS&T surplus will be reduced from $250k in 2012 to $205k in 2013. This is due to the agreement that MS&T signed in 2010 to partner with the Metallurgy and Materials Society of CIM (METSOC) in 2013. Overall the ACerS net operating surplus for MS&T 2013 is budgeted at $81k, which is $27k less than 2012. Other Meetings – In 2013 ACerS will run six topical and/or division meetings and five short courses in addition to MS&T 2013 and ICACC 2013. ACerS will be paid by GMIC to provide staff support for the 2013 Glass Problems Conference. The “Other Meetings” for 2013 include: Electronic Materials and Applications 2013 (EMA), January 23-25, 2012, Orlando, FL PACRIM 10, including GOMD, June 2-7, San Diego, CA ACERS-NSF PI Workshop, June 24-26, Arlington, VA


Cements Division Meeting, July 8-12, Champaign, IL 12th International Conference on Ceramic Processing Science, August 4-7, Portland, OR UNITECR 2013, September 10-13, Victoria, Canada These meetings and the scheduled short courses will generate revenue of $1.5 million and generate an operating surplus of $233k. This compares to Other Meeting revenue of $936k and operating surplus of $72k in 2012. Revenue and expense details by meeting are below.

Other Meetings Detail 2012 Actual 2013 Budget

EMA

Revenue 65,290 82,000

Expense 63,750 70,602

Net Operating Surplus 1,540 11,398

PACRIM Last Held 2009

Revenue 550,217 521,000

Expense 447,149 435,036


NSF Workshop

Revenue 21,738 26,500

Expense 18,535 22,081


Cements Division

Revenue 16,293 18,000

Expense 14,083 16,114


12th Processing Science

Revenue - 77,000

Expense - 70,535

Net Operating Surplus - 6,465

UNITECR 2013

Revenue - 704,000

Expense - 588,313

Net Operating Surplus - 115,687

Short Courses

Revenue 38,782 47,000

Expense 29,690 35,676


Glass Problems

Revenue 33,000 34,000

Expense 25,147 27,118



Phase Equilibria Diagrams – The Phase Equilibria Diagram program operating surplus is budgeted to decrease $81k from $142k in 2012 to $61k in 2013. Most of this difference is due to a $60k royalty expense reduction recognized in 2012. This “windfall” was due to accruing NIST royalties in 2011 at a higher rate to ensure that we could cover the terms of the new ACerS-NIST agreement that was being negotiated. Fortunately, the terms of the agreement signed in June 2012 were more favorable to ACerS. As part of the new five-year ACerS-NIST agreement, 1) the CD products are priced at a significantly lower rate set by NIST, 2) both ACerS and NIST are selling the CD, and 3) ACerS does not pay NIST royalties on CD sales. The new lower prices are spurring higher demand for the CD. We expect to sell 70 single and multiple CDs in 2013 compared to the 55 that were sold in 2012. Even though demand for CDs will go up in 2013, CD revenues will actually go down (from $101k in 2012 to $76k in 2013) due to the significantly lower rates. Online sales to libraries are remaining strong and are expected to increase $3k from $87k in 2012 to $90k in 2013. Note that ACerS pays NIST a royalty on online product sales. In addition, as part of the new agreement, ACerS is now charging NIST a $10,800 annual administrative fee to manage editorial contracts on behalf of NIST. Technical Books – The operating surplus from technical books is budgeted at $74k, which is a $15k increase from 2012. The increase is driven partially by a revenue transfer of $52k from the UNITECR meeting to cover the costs of the proceedings. From 2011 to 2012, Wiley royalties increased almost 18% due to the addition of four new ACerS-Wiley series books. In 2013, we expect to produce two more ACerS-Wiley books, bringing the total front-list books to nine. Royalties are budgeted to increase $2k over 2012. On the expense side, salaries are going up due to adding a part-time administrative assistant to the Technical Publications and Meetings area. Journals – Operating surplus from journal operations is budgeted at $541k, a $13k decrease over 2012. This decrease comes from two factors: 1) a decline in optional page charge revenue and 2) the addition of part-time staff to assist the Technical Publications and Meetings area. Page charge revenue dropped $20k in 2012 (from $138k to $108k) and is budgeted to drop another $13k in 2013. Copyright revenue from Wiley is expected to increase slightly from $540k in 2012 to $546k in 2013. Total expenses are going up slightly from $287k in 2012 to $293k in 2013. Communications, including the Bulletin – Bulletin revenue is projected to rise modestly in 2013 from $256k to $261k. There is also some 2012 one-time revenue from Bulletin subscriptions (approximately $20k) that will not recur in 2013. We anticipate a management change in mid-2013 with the departure of the current Editor/Director, which may incur a one-time expense to ensure a smooth transition. Finally, because of the unusually heavy meetings schedule, the department’s T&E has increased by approximately $3k to provide adequate conference coverage. Other Items – Merit increases are planned at a 3% increase for the organization. The new association management system software licensing is budgeted at $66,200 and related depreciation expense will be $45,600. Management has opted for early renewal of our health insurance plan to limit the potential cost increase, and we are projecting a 9% increase in 2013. Historically, ACerS increases/(decreases) for prior renewals were: 2012 - 15%; 2011 - 2.5%; 2010 - (10%); 2009 - 15% (in previous years there were significant plan changes, including increases to deductibles and copays, reduction in benefits and the addition of an HSA high-deductible plan).


Ceramic Publications Company Ceramics Monthly – Advertising revenue is budgeted to increase 3% over 2012, from $776k to $800k. This reflects a 1.5% rate increase and a 1.5% increase in ad pages. We have seen some of our smaller and more regionally focused print advertisers reduce their schedules, but we also see some of the larger equipment and materials producers (with wider distribution) increasing their schedules. Subscription revenue is budgeted to increase 3%, from $732k to $754k. We have stabilized subscriptions through email promotions, gift offers, and direct-mail, and have introduced multi-year subs to further stabilize the base over the long term. We will be launching tablet magazines in the second quarter of 2013, which is an untapped market for us, though it shows promise. Pottery Making Illustrated – Advertising revenue is budgeted to increase 6.5% over 2012, from $218k to $232k. This reflects a 1.5% rate increase, and a 5% increase in ad pages. Larger advertisers are expected to increase placements, and one of our print competitors is struggling to produce and fulfill issues in a timely manner, potentially making more of our advertisers’ budgets available to us. Subscription revenue is budgeted to increase 3%, from $325k to $347k. As for CM, we have stabilized subscription levels in 2012, and have introduced multi-year subs to further stabilize the base over the long term. We also plan to launch tablet magazines in the second quarter of 2013, which is a potentially large market for PMI’s instruction-based content. Ceramic Arts Daily – Revenue from product sales for Ceramic Arts Daily is budgeted to grow 2.4% from $836k to $856k [books from $360k to $361k, and DVDs from $476k to $495k]. The majority of this is due to projected sales of downloadable media (primarily video, but some books in PDF form). We expect to see continued audience growth and new product releases, and with 21 current in-house CAD DVDs and the planned launch of 12 more in 2013, almost all DVD sales will be from in-house DVDs, leading more of the revenue to the bottom line than for third-party DVDs. While we do see some flattening of sales in the last quarter of 2012, our primary market for DVDs and books (registered CAD users) is projected to be just under 120,000 users to start 2013, which should bolster not only our new-release sales, but sales of existing titles as well. Online advertising revenue is budgeted to increase 16%, from $73k to $85k, with 4% [$3.2k] due to realizing a full year of mobile-app sponsorship, and the remaining 12% due to increases in site-section sponsorships (new web advertisers and increased placement for existing clients). Potters Council – Potters Council revenue is budgeted up 23% from $349k to $432k. The majority of that [20%] is due to the addition of a second international conference, and this is offset by an equal increase in expenses associated with that conference (meeting registration is increased by $75k, as are expenses). We are also introducing three one-day conferences on-location in conjunction with our CAD DVD recording sessions. Membership revenue is budgeted up 8% from $134k to $145k, which is based on projections for increased member retention through the Member One program, as well as direct mail/email campaigns that continue to show positive results for new members. We’ve seen a 6% increase in membership dues in 2012 and with more robust marketing and incentive, we expect to see that improve in 2013.


The American Ceramic Society

Business Product Comparison

2013 Budget

REVENUES 2013 Budget 2012 Forecast2012 Original

Budget 2011 Actual 2010 Actual 2009 Actual 2008 Actual13 Budget vs 12 Forecast

Membership 500,445 503,193 520,700 504,807 502,498 491,638 522,968 (2,748) Daytona Meeting 434,000 455,152 452,100 444,830 412,474 409,127 516,765 (21,152) MS&T Meeting 205,000 250,000 250,000 296,449 250,156 229,442 255,301 (45,000) Other Meetings 1,509,500 936,130 1,063,640 369,149 518,063 584,120 577,355 573,370 Phase 185,200 201,002 160,000 271,101 227,000 236,369 283,236 (15,802) Tech Books 194,000 161,154 156,650 121,782 165,262 130,274 133,701 32,846 Journal 836,000 841,694 861,000 872,748 774,175 790,538 878,752 (5,694) Bulletin 300,500 314,282 285,400 308,586 288,409 267,223 360,765 (13,782) Emerging Ops - - - - - - - - Communications - - - - - - - - Web - - - - - - - - IT - - - - - - - - Admin 133,300 148,315 131,200 136,065 148,625 131,293 142,977 (15,015)

ACerS 4,297,945 3,810,922 3,880,690 3,325,517 3,286,662 3,270,024 3,671,820 487,023 CPC 3,507,644 3,309,836 3,124,937 3,124,107 2,931,437 2,806,698 2,872,777 197,808

Combined Revenue 7,805,589 7,120,758 7,005,627 6,449,624 6,218,099 6,076,722 6,544,597 684,831

EXPENSESMembership 732,189 701,764 790,612 624,250 643,825 630,757 733,065 (30,425) Daytona Meeting 306,701 299,520 294,773 304,703 303,665 287,268 314,623 (7,181) MS&T Meeting 123,190 141,898 144,613 137,678 135,284 145,397 181,555 18,708 Other Meetings 1,276,118 864,033 903,478 363,452 428,792 501,072 510,032 (412,085) Phase 124,215 59,108 110,787 223,652 211,125 216,026 282,754 (65,107) Tech Books 120,108 101,908 105,791 86,520 94,330 84,798 90,749 (18,200) Journal 294,810 287,386 283,803 297,911 284,949 247,092 281,401 (7,424) Bulletin 419,477 406,246 410,122 403,308 439,270 576,921 588,405 (13,231) Emerging Ops - - - 1,120 232 2,475 3,457 - Communications 75,791 71,507 78,305 58,496 33,135 2,947 135 (4,284) Web 61,565 71,688 68,304 78,806 93,642 145,251 138,536 10,123 IT 146,923 74,779 - - - - - (72,144) Admin 1,358,558 1,003,109 1,121,723 909,835 924,261 904,815 941,221 (355,449)

ACerS 5,039,645 4,082,946 4,312,311 3,489,731 3,592,510 3,744,819 4,065,933 (956,699) CPC 2,658,987 2,631,275 2,642,365 2,541,814 2,553,304 2,499,806 2,648,348 (27,712)

Combined Expenses 7,698,632 6,714,221 6,954,676 6,031,545 6,145,814 6,244,625 6,714,281 (984,411)

DIRECT CONTRIBUTION (R-E)Membership (231,744) (198,571) (269,912) (119,443) (141,327) (139,119) (210,097) (33,173) Daytona Meeting 127,299 155,632 157,327 140,127 108,809 121,859 202,142 (28,333) MS&T Meeting 81,810 108,102 105,387 158,771 114,872 84,045 73,746 (26,292) Other Meetings 233,382 72,097 160,162 5,697 89,271 83,048 67,323 161,285 Phase 60,985 141,894 49,213 47,449 15,875 20,343 482 (80,909) Tech Books 73,892 59,246 50,859 35,262 70,932 45,476 42,952 14,646 Journal 541,190 554,308 577,197 574,837 489,226 543,446 597,351 (13,118) Bulletin (118,977) (91,964) (124,722) (94,722) (150,861) (309,698) (227,640) (27,013) Emerging Ops Expense - - - (1,120) (232) (2,475) (3,457) - Communications (75,791) (71,507) (78,305) (58,496) (33,135) (2,947) (135) (4,284) Web Expenses (61,565) (71,688) (68,304) (78,806) (93,642) (145,251) (138,536) 10,123 IT (146,923) (74,779) - - - - - (72,144) Administrative Expenses (1,225,258) (854,794) (990,523) (773,770) (775,636) (773,522) (798,244) (370,464) CPC Overhead allocation 515,250 320,500 320,500 300,000 266,000 249,000 238,920 194,750

ACerS (226,450) 48,476 (111,121) 135,786 (39,848) (225,795) (155,193) (274,926) CPC 329,807 354,461 158,472 265,954 112,133 57,892 (14,491) (24,654)

Combined Operating Surplus/(Deficit) 103,357 402,937 47,351 401,740 72,285 (167,903) (169,684) (299,580)

Investment Gain/(Loss) 47,276 (3,280) 31,873 94,545 (224,854) (47,276) Total Surplus/(Deficit) 103,357 450,213 47,351 398,460 104,158 (73,358) (394,538) (346,856)


Ceramic Publications CompanyBusiness Product Comparison2013 Budget

REVENUES 2013 Budget 2012 Forecast2012 Original

Budget 2011 Actual 2010 Actual 2009 Actual 2008 Actual13 Budget vs 12 Forecast

Ceramics Monthly Advertising 800,689 776,401 763,000 750,222 752,912 734,028 868,721 24,288 Subscriptions 753,861 732,018 727,900 749,834 767,902 819,712 919,024 21,843

1,554,550 1,508,419 1,490,900 1,500,056 1,520,814 1,553,740 1,787,745 46,131 Pottery Making Illustrated - Advertising 231,700 218,349 208,000 210,250 202,528 196,217 220,880 13,351 Subscriptions 347,219 324,715 343,800 338,026 351,643 334,564 336,997 22,504

578,919 543,064 551,800 548,276 554,171 530,781 557,877 35,855 Ceramic Arts Daily - Art books 361,356 360,366 293,402 306,075 341,290 324,367 343,585 990 DVDs 494,965 475,917 359,600 369,564 202,475 178,121 - 19,048 Advertising 85,400 73,076 80,000 73,791 73,903 40,942 18,354 12,324

941,721 909,359 733,002 749,430 617,668 543,430 361,939 32,362

Potters Council 432,454 348,994 349,235 326,345 238,784 178,747 165,216 83,460 Revenue 3,507,644 3,309,836 3,124,937 3,124,107 2,931,437 2,806,698 2,872,777 197,808

EXPENSESCeramics Monthly 1,030,486 1,061,881 1,106,072 1,093,737 1,154,352 1,131,485 1,332,123 31,395 Pottery Making Illustrated 496,206 504,467 520,618 513,643 569,239 545,156 635,701 8,261 Ceramic Arts Daily 758,574 765,616 708,368 668,876 661,213 664,283 504,558 7,042 Potters Council 373,721 299,311 307,307 265,558 168,500 158,882 175,966 (74,410)

Expenses 2,658,987 2,631,275 2,642,365 2,541,814 2,553,304 2,499,806 2,648,348 (27,712)

DIRECT CONTRIBUTION (R-E)Ceramics Monthly 524,064 446,538 384,828 406,319 366,462 422,255 455,622 77,526 Pottery Making Illustrated 82,713 38,597 31,182 34,633 (15,068) (14,375) (77,824) 44,116 Ceramic Arts Daily 183,147 143,743 24,634 80,554 (43,545) (120,853) (142,619) 39,404 Potters Council 58,733 49,683 41,928 60,787 70,284 19,865 (10,750) 9,050

848,657 678,561 482,572 582,293 378,133 306,892 224,429 170,096 Non-operating (Expense) (3,600) (3,600) (3,600) (16,339) - - - - Arts Overhead Expenses (515,250) (320,500) (320,500) (300,000) (266,000) (249,000) (238,920) (194,750) **

CPC Total (Deficit)/Surplus 329,807 354,461 158,472 265,954 112,133 57,892 (14,491) (24,654)

investment years for CAD 2009, 2008, 2007

** Salary costs from top management staff were allocated from direct expenses to overhead allocation in the amount of $141,135


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