During 2005, the American Kennel Club (AKC) and AKC Companion Animal Recovery (CAR) achieved excellent financial results by generating a combined net surplus of $11.5 million. This was slightly below 2004's record results of $11.7 million. The back-to-back strong financial performances of 2005 and 2004 have left the organization in a very solid financial position. Management still continues to seek ways to enhance future revenues while diligently controlling expenses.

Combined revenues for 2005 were $72.7 million, compared to $71.9 million in 2004. Core registration revenues for dogs and litters decreased by 3.5%. License fees and certified pedigrees increased 7%. Recording fees increased slightly by 4%. CAR's enrollment revenues declined by 32% due to the contract expiration with its microchip supplier. Royalties increased by 3% and Publications increased by 13.5% primarily due to an increase in advertising revenues. Revenues for 2005 and 2004, respectively, include $3.2 million and $1.9 million for the approximate values of in-kind contributed services received primarily in the form of donated advertising on television, radio stations, and in print, which is included in operating costs related to public education. Interest and dividend income increased by 208%, largely due to dividends from equity investments.

Operating expenses of $65.2 million were slightly higher than 2004's level. Payroll and related benefits were modestly higher than 2004. Increases in depreciation and amortization related to capital lease obligations, travel costs, and public education programs were offset by decreased spending on all other operating expenses.