2010 annual meeting presentation

Opening Remarks

• President’s Welcome: Mrs. Carolyn Burger

• Approval of 2009 Annual Meeting Minutes

• Governance Report: Mr. Stuart Grant

Governance Report

We are deeply grateful to the following Trustees who have completed their service to the Museum:

Thomas J. Allingham II

Doneene Keemer Damon

Linda Brinton Harra

Governance Report

Up for re-election for a second 3-year term:• LISA R. DAVIS• DONALD C. DEWEES, SR.

Governance Report

Nominees for election to the Board of Trustees

Richard J. Immesberger

Richard J. Immesberger joined WSFS in August 2008 as the Executive Vice President of WSFS Wealth Strategies. Mr. Immesberger brings more than 20 years of private banking and wealth management experience. Prior to joining WSFS, Mr. Immesberger was Senior Vice President at U.S. Trust, Bank of America Private Wealth Management in Charlotte, North Carolina.  Mr. Immesberger graduated with a Bachelor of Business Administration in Finance and Investments from Baruch College, City University of New York. In addition, he graduated with honors from the Stonier Graduate School of Banking at the University of Delaware. Over his career, he has served on many not-for-profit boards including the McCarter Theatre in Princeton, NJ and the Charlotte Trolley. Mr. Immesberger was elected to the Museum Board to fill the unfilled term of Alan Levin. He is now being nominated to his first three-year term.

Governance Report

Mr. Krapf, a director in Richards, Layton and Finger’s Real Estate Group, is an active member of the bar and numerous other professional organizations. He is a frequent speaker on topics of real estate, land use and business law, and has published various educational materials and articles. Mr. Krapf is a trustee of The American University of Rome and has been active with Lutheran Community Services and the DCCA.

Robert J. Krapf

Governance Report

Dr. Rodríguez is the Deputy Provost, Professor of Sociology and Criminal Justice, and Core Faculty of the Disaster Research Center (DRC) at the University of Delaware. A principal investigator of numerous funded research proposals and author of various disaster-management publications, Dr. Rodríguez is also frequent speaker. He is involved with many organizations in Delaware such as the Delaware Community Foundation, Aspira of Delaware, and the President’s Commission to Promote Racial and Cultural Diversity, University of Delaware.  

Havidán Rodríguez

Governance Report

Mr. Rowe is a Senior Vice President of Bank of America. He joined Bank of America in 1992 and is currently the Savings Products executive for the Deposit & Card Products organization within Consumer, Small Business and Card Banking (CSBC). A University of Delaware graduate, Mr. Rowe lives in Wilmington with his wife and son and is involved with the American Heart Association.

Andrew T. Rowe

Governance Report

Ms. Schwartz, a Litigation Associate with Skadden, is a Villanova University School of Law graduate. She serves as Vice Chair of the YMCA Resource Center Board of Governors and also Chairs the Committee for Distinguished New Lawyers Service Award. Ms. Schwartz also worked with former Museum Trustee Tom Allingham to represent the Museum in bringing its complaint against ABA to successful resolution.

Alyssa M. Schwartz

Finance Report

Mr. Mike Miller, Chief Financial Officer

2009 Operating Expenses2009 Cash OperatingExpenses $4,157,205 (2008 $5,125,693)

Salaries & Benefits2,282,783

Exhibits & Programs594,826

Public Support306,849

Administration200,631

Earned Income84,887

Building/Operations687,229

Employees

37 35

27

1514

11

0

10

20

30

40

50

60

2007 2008 2009

Part Time

Full Time

2009 Operating Income

Admissions64,499

Programs, 212,363

Contributions, 1,454,524

Investment Portfolio, 2,015,794

Earned Income, 198,739

Membership, 103,965

Special Events, 10,601

Government Grants, 263,928

2009 Operating Income $4,324,413(2008 $5,136,561)

Operating Results--2009 vs. prior years & 2010 Budget

Operating Expense, Operating Revenue & Attendance

0

1000000

2000000

3000000

4000000

5000000

6000000

2005 2006 2007 2008 2009 2010 Budget

0

10000

20000

30000

40000

50000

60000

70000

80000

Operating Expense Operating Revenue Attendance

Investments + Cash

2005 2006 2007 2008 20090

5000000

10000000

15000000

20000000

25000000

30000000

35000000

Bond Covenants• Museum financed building expansion with bonds

issued by the City of Wilmington and secured by a letter of credit from Wachovia.

• Wachovia requires 1) we have enough funding annually to cover operating expenses plus interest payments and 2) maintain liquidity (investments + cash) equal to debt outstanding.

• In 2008 we did not meet either of these conditions due to market impact on our investments. In 2009 we did not meet the liquidity covenant.

• We are in discussions with Wachovia to resolve this issue.

Bond Covenants• Impact on 2009 Financial Statements--because

issue is not resolved our auditors were required to classify bond debt as a current liability and include a “going concern” footnote.

• We are taking steps to ensure we meet the covenants in 2010– In short term we are reducing size of operating deficit to

minimize draw from investments– Longer term we have significant pledges for legacy gifts

and will raise additional funds to grow our endowment to support operations.

Director’s Report

We launched the year with the exhibition Paintings from the Reign of Victoria: The Royal Holloway Collection (February 1 to April 12, 2009)

Wonderful Exhibitions

Lively Programs

Amazing VolunteersOur wonderful Docents celebrated 50 years of service and received the Governor’s Volunteerism Award

Thanks largely to their help we were able to double our adult group tours this year!

Remarkable Acquisitions

So Much to Look Forward To!