Financial update: stability and growth in 2024!
As the BHS finance and accounting team makes preliminary reports in preparation for the scheduled annual audit, they are pleased to report that the Society BHS surpassed most of its financial goals for 2024. Thanks to increased revenue in all program areas, a powerful rebound in convention attendance, and careful expense management, the Society has stabilized its financial position and is well-positioned for growth in the coming years.
Executive Summary
The Barbershop Harmony Society (BHS) ended 2024 with significant achievements across all operational areas. The preliminary year-end financial results highlight robust revenue growth, strategic expense management, and increased contributions from key programs:
Total Revenue: $5,314,000 (exceeding budget by $522,000); excluding Development results, total revenue in 2024 exceeded 2023 comparable results by $450,000.
Net Income: 2024 preliminary results reflect a positive $37,000 net income. Normalizing the accounting treatment of HFI grants and Development results, the Society’s normalized net income in 2024 was $422,000 a positive $870,000 variance to the comparable results in 2023.
Line of Credit Use Elimination: The Society’s line of credit was paid down to $0 in February 2024 from the $650K outstanding at the beginning of 2024. The line remained unused during the balance of 2024, reflecting solid financial cash flow management.
Improved cash position — As a result of these measures, BHS ended 2024 with a meaningful improvement in ready cash and line availability totaling $1,509,154 compared to $756,047 at FYE 2023, a $753,107 increase. We are working to achieve our 90-days cash-on-hand target without relying on line of credit availability.
Program Contributions: Positive contributions across major areas, with particularly strong results in Events (notably International) and Subscription Services.
Expense Management: Controlled costs, with targeted investments in education and events.
These results position BHS for continued success in 2025.
Financial Highlights
Subscription Services
Prelim FY 2024 Revenue: $1,941,000
FY 2023 Revenue: $1,690,000 (Year-Over-Year (“YOY”) Increase of $251,000)
- Membership stability, retention efforts, dues increase and effective use of the Member Center platform drove a 15% year-over-year revenue increase.
The 3-year dues offering in January/February 2024 resulted in 550 members taking advantage of the program generating $216,000 in cash flow. Dues for the 3-year participants will be recognized over 2024-2027. The year-over-year increase in subscription dues was not artificially increased based on the results of the 3-year dues program.
Outreach
Prelim FY 2024 Expenses: ($181,000)
FY 2023 Expenses: ($94,000) — YOY Increase of $88,000 due to higher youth participation at the BHS Midwinter Next Generation Barbershop Junior program in 2024 compared to 2023 - a “good problem!”
Youth participation and youth groups attending are returning to pre-pandemic levels.
Music Education / Harmony University
Prelim FY 2024 Revenue: $474,000
FY 2023 Revenue: $426,000 (YOY Increase of $48,000)
Harmony University’s relocation to Denver resulted in expanded participation, offsetting higher logistical costs. Harmony University’s $458,000 in net revenues exceeded 2023 by $108,000.
Events (Midwinter & International)
Prelim FY 2024 Revenue: $1,575,000
FY 2023 Revenue: $1,369,000 (YOY Increase of $206,000)
The 2024 International Convention achieved its highest attendance (5,557 attendees) since Nashville 2016 and 1,044 more than Louisville 2023. Strong revenue results were aided by cost management and hotel rebates.
Harmony Marketplace
Prelim FY 2024 Revenue: $615,000
FY 2023 Revenue: $589,000 (YOY Increase of $26,000)
Revenue growth was driven by music sales, the Hal Leonard partnerships, and higher than-budgeted demand at Event-based marketplace offerings. Revenue was offset by higher-than-budgeted expenses associated merchandise and merchandise write-downs as we prepare for the eventual relocation of Harmony Hall.
Additional expenses were incurred in connection with the production of the Arranging Barbershop Manuals in 2023/2024 that should be recouped over the next several years with book sales.
The Society continues to expand its partnership with Hal Leonard, the world’s largest music print publisher, with more barbershop arrangements and charts being accessible and marketed to music educators and related programs.
Strategic and Operational Updates
Events
The 2024 International Convention achieved the highest attendance (5,557) since 2016, demonstrating the vitality of the barbershop community.
Harmony University’s Denver relocation enhanced educational outreach and engagement, and reflected the steady increase to pre-pandemic attendance levels.
Membership Growth
The dues increase coupled with effective retention and support strategies resulted in a 15% increase in subscription service revenues.
Cash Flow and Liquidity
Unrestricted cash reserves totaled $352,000 as of December 31, 2024, with additional board-restricted investments and endowments of $407,000.
The Society’s line of credit was paid down to $0 in February from the $650,000 outstanding at the beginning of 2024 and remained unutilized during the balance of 2024, reflecting robust financial management.
Operational Efficiencies
Wage and benefit optimizations and delayed replacement hirings resulted in a $549,000 reduction from 2023, reinforcing cost-effective staffing strategies.
Looking Ahead to 2025
The Society is well-positioned to:
Expand outreach and educational programs, particularly with music educators, the American Choral Directors Association (ACDA), and state music education association events to strengthen community engagement.
Launch campaigns that are both community-centric and welcoming to attract more people to the Society, particularly with the completion of the initial BHS Brand project and anticipated launch and strategies.
Continue to produce compelling and in-demand barbershop events, including the inaugural Un-Convention event planned for Memorial Day Weekend 2025.
Invest in innovative member services and digital platforms, embracing the scalability and power of AI to enhance operational efficiencies.
Transition smoothly to a new headquarters upon the successful sale of Harmony Hall, anticipated in late 2025, maintaining operational excellence.
BHS remains dedicated to its mission of advancing barbershop harmony and serving its members. The 2024 audit process is expected to start in early Q2’2025 and draft audit statements are expected to be shared at the 2025 BHS International Board Meeting in July.
Erik Dove is Chief Financial Officer and Chief Operating Officer for the Barbershop Harmony Society.