During 2004, the American Kennel Club (AKC) and AKC Companion Animal Recovery (CAR) achieved record financial results by generating a net surplus of $11.7 million. This was accomplished by increased revenues coupled with prudent financial management of operating costs. Investment gains achieved an all time high and contributed significantly to these results.

Combined revenues for 2004 were $70 million, compared to $65.4 million for 2003—a 7.1% increase. Core registration revenues for dogs, litters, and transfers increased by 2.6%. License fees, certified pedigrees and dues increased 12%. Recording and event fees increased 170% due to the initial year of the new event fee.

Product sales for videos, books and other services increased 10.5%. CAR continued with a strong performance as enrollment revenues increased 25.4%. Lower revenues were realized for royalties and publications in 2004.

Operating expenses of $62.2 million were contained below 2003’s level. Payroll and related benefits decreased 10.5%. All other operating expenses, which were primarily to support various programs, were comparable to 2003 after excluding a contribution of $1 million provided for by AKC’s Board for the Canine Health Foundation.

Investment gains of $3.9 million in 2004 made a significant contribution to the bottom line and exceeded 2003 by $1 million. The investment strategy revamped in 2003 along with diligent cash flow management generated the highest investment return on record.

As of December 31, 2004, the AKC and CAR Boards designated $31.4 million to fund various projects for preserving the future of the organizations and the sport of purebred dogs. This included $1.2 million for support of the Canine Health Foundation in 2005.

AKC also continues to support The AKC Museum of the Dog by providing funds to supplement their operating requirements. Other reserves have been designated for scholarships and canine educational programs. The Board previously had mandated that an operating expense reserve of 50% of annual operating expenses be established for unforeseen contingencies. The record financial results in 2004 have assisted in increasing this amount to more closely to approximate the Board’s goal.