Thanexus Annual Report 2013

Reinforcing our long-standing commitment
to employer-employee relationships
2013
ANNUAL REPORT
2013 BOARD OF DIRECTORS
Joseph C. Parell III, CFSP, Chair
Poulson & Van Hise Funeral Directors
Lawrenceville NJ
Rosemary K. Mahoney
CoopMetrics
Arrington VA
James R. Tomasello, Vice Chair
Gardner Funeral Home
Runnemede NJ
Steven N. Perlmutter
Walter J. Johnson Funeral Home
Clark NJ
Thomas J. (Toby) Bizub Jr., Secretary
Bizub-Parker Funeral Home
Little Falls NJ
Kimberly M. Saul-Bowne, CFSP
Saul Funeral Homes, Inc.
Hamilton Square NJ
Enrico T. Caruso Jr., CFSP
South Jersey Funeral Associates, Inc.
Pennsauken NJ
Glenda S. Stansbury, CFSP
In-Sight Books, Inc.
Oklahoma City OK
Victor J. Costantino
Costantino Funeral Home
Berlin NJ
MANAGEMENT TEAM
Wilson H. Beebe Jr., President
George R. Kelder Jr., CFSP, Executive Vice President
Barbara D. Guinta, Chief Financial Officer
Lorraine Walker, PHR, Director of Human Resource Services
Chris Murphy, Business Development Manager
O
ur cooperative is stronger and more committed than ever to its employers and employees. Keeping the seamless integration
of human resource and benefit services as our primary focus, we continue to enhance our membership services and
personalize our employee experiences year after year.
Starting off the year, member stockholders successfully executed new master membership agreements. The newly revised agreements
included updates to the vital rules governing member conduct and the delivery of services, and were designed to provide stronger
business protections for Thanexus and its members.
Keeping health care costs manageable was once again a key initiative this year, providing plan participants an unprecedented net
0.98% decrease in health care rates compared to 2012. Additionally, the implementation of new Occupational Health and Safety
Administration (OSHA) compliance plan materials and two new OSHA field representatives helped stockholders provide a watchful
eye on all who entered their worksites.
The Thanexus family continues to expand. As of January 1, 2014, our cooperative welcomed six new stockholders.
We continue to remain strong and at the forefront of our industry. Our commitment to our employers and employees is unwavering.
We expect 2014 to be no different.
Joseph C. Parell, III, CFSP
Wilson H. Beebe Jr.
ChairPresident
In 2013, Thanexus shared employment-related responsibilities
with 68 stockholders in 114 registered mortuaries at 104 worksites
for a combined gross annual payroll of over $30.8 million—
which is approximately one third of the total industry payroll
in New Jersey.
STREAMLINING OSHA COMPLIANCE
In April, Thanexus rolled out its new OSHA Compliance Program in an effort to help stay focused on the most meaningful
parts of its comprehensive safety program.
The new program introduced simplified documentation to assist firms with roster development, personnel management and
compliance assessment, and includes periodic workplace walkthroughs to ensure that safety regulations are being followed.
Our new approach to worksite safety and compliance also includes two new funeral director field representatives, Jonathan
C. Krowicki and Donald S. Cymbor Jr., to help quarterback compliance responsibility. This, alongside a new emphasis
on the responsibilities of each worksite’s OSHA compliance officer, helped assist Thanexus in maintaining safe places of
employment for another successful year.
New compliance plan materials and two OSHA field
representatives helped stockholders provide a watchful eye
on all who entered their worksites.
RECONFIRMING OUR
COMMITMENT
In 2013, Thanexus conducted a complete review and examination
of the current member stockholder agreements. The vital rules
governing member conduct and the delivery of services were updated
to safeguard protections for both the cooperative and its stockholders.
After careful review and discussion with each firm, returning
stockholders of record executed the new agreements successfully.
BETA-TESTING OF
KBFS MODEL
Ten of our stockholder worksites continue
to serve as beta-test sites for the second
year in a row, effectively contributing
to the KBFS research initiative. KBFS,
also known as Knowledge Based Funeral
Service, was established to explore growth
and development opportunities for the
next generation of funeral directors to
better sustain the profession for years
to come.
The beta-testing includes the use of an
unprecedented functional arrangement
tool strategically designed to aid funeral
directors in educating its consumers of
the available funeral options during a
pre- or at-need arrangement conference.
The tool also successfully helps the funeral
director be more accommodating during
the arrangement allowing the dynamics
of each funeral arrangement to unfold
naturally during a conversation.
2013 FUNERAL CALL VOLUME
HEALTH CARE
CONFIDENCE
Thanexus met health care costs
head on in 2013, continuing to keep
increases at an acceptable level. While
there was a 3.52% increase over 2012
premiums, that increase was offset
by a surplus return equal to 4.5% of
the prior year premiums. That means
contributing Plan participants netted an
unprecedented 0.98% decrease in rates
over the previous year.
The following funeral call volume data is based on responses from 73 out of
74 of the 2014 stockholders surveyed.
AVERAGE VOLUME
14,317
198
NUMBER OF CALLS
Total
Calls
Average
Number
of Calls
63%
of
Total
Calls
37%
of
Total
Calls
74 Cremation
124 Non-Cremation
40%
30%
126 – 250 Calls
30%
Over
250 Calls
125 or
Fewer
Calls
2013 ANNUAL COMPENSATION SURVEY
The 2013 Annual Compensation Survey represents data for 269 licensees and 568 non-licensed employees—for a total of 837 funeral service
professionals across New Jersey.
Average Licensed
Owner†
144,852
$
76,343
$
$
Licensed
Non-Owner††
$
Clerical and
Administrative
Funeral
Attendant
Interns
Average Payments*
Median
Celebrant
Services
219
Embalming
$
17.57 /hr
$
15.00 /hr
$
17.44 /hr
$
14.97 /hr
$
† Owner compensation includes only that compensation taken in the form of W-2 wages and does not include
other typical forms of owner compensation such as dividends, rent and net profit distributions.
†† O
n average, a newly licensed non-owner salary begins at $35,000, and varies by county and years licensed.
* A
verage flat rate payments are estimates of total “per function” payments by survey respondents and do not reflect
underlying wage and hour recordkeeping or compensation compliance.
LOWEST BENCHMARK PENSION COSTS
Our Thanexus 401(k) Plan continues to offer low Plan costs and fees.
Benchmarked against close to 500 other companies with a similar plan size, our
employees have access to a robust retirement plan at a significantly lower cost.
LABOR AND WAGE BENCHMARKING
Our Thanexus Annual Compensation and Call Volume Survey remains the only
source of actual labor and wage benchmarking data in the industry. What makes
our survey so unique is that it utilizes actual W-2 wage information, unlike other
compensation surveys.
238
71,721
$
$
Arrangements
$
18.95 /hr
$
200
116,869
225
59
$
57
$
(non-posted
remains)
Local Direction
Door
(two-hour visitation)
Pallbearer (local)
MARKETING AND COMMUNICATIONS
In 2013, Thanexus stockholders received approximately 36,000 customized
marketing pieces that adhered to Federal Trade Commission and New Jersey
State Mortuary Board regulations.
Materials included:
• General Price Lists
• Statement of Funeral Goods and Services Selected
• Authorization Forms
• Promissory Notes and Invoices
ams
Progr
• Cremation, Welfare (County) and Veterans Funeral Packages
e our
brav
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pers
sudd
to the
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with the
mitment
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ciated
As a com our Emergen for any eme
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cost
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maintai
family
and fina others.
pocket
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sacrifice
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availabl
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is the
Program
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Care
routinely have expe
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who
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as follo
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50% redu
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Age 3
25% redu
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Age 4
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Age 11
Public
• Eco Burial and Ethnic Funeral Packages
Thomas E. Day, CFSP, President/Manager N.J. Lic. No. 4037
q
8 Hilltop Road
Mendham NJ 07945
T 973.543.4720
F 973.543.2305
CONTRACT/PROMISSORY NOTE
Date of Death (mm/dd/yy)
Date of Funeral (mm/dd/yy)
Address (street, city, state, zip)
Relationship to Funeral Recipient
Purchaser #2 Name (first, middle, last)
Address (street, city, state, zip)
Telephone Number
Relationship to Funeral Recipient
CONTRACT/PROMISSORY NOTE TERMS:
By signing this contract/promissory note the Funeral Home and the Purchaser(s) acknowledge and agree to the following:
1.
The Purchaser(s) agrees to pay the Funeral Home for services rendered and merchandise provided for the above noted funeral as detailed
on the attached “Statement of Funeral Goods and Services Selected” on which the TOTAL ESTIMATED CHARGES are $__________. The
Purchaser(s) also agrees to pay for any additional services or merchandise ordered by him/her as detailed in the final itemized bill to be
provided. The Purchaser(s) acknowledges that the “Statement of Funeral Goods and Services Selected” is only an estimate, and the final
itemized bill provided will be the final cost to the Purchaser(s) from the Funeral Home.
2.
The Purchaser(s) agrees to pay the Funeral Home a deposit of $__________ on or before the date of the funeral service.
The balance
shall be paid, including any additional charges for items ordered by him/her or any adjusted charges for previously estimated items as
shown on the final itemized bill within 30 days of the funeral service.
3.
General Price Lists
and Statement of
Funeral Goods and
Services Selected
® Inc.
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exus,
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The current estimate includes:
- Total Estimated Charges
$ __________ (as per Statement of Funeral Goods and Services Selected)
- Less Insurance Assignment
$ __________
- Less Prepaid Funeral Allowance
$ __________
- Less Conditional Payment From Social Services
$ __________ (see social services funeral contract)
- Less Deposit/Family Supplementation Received
$ __________
- Total Estimated Balance Due
0.00 (within 30 days of the funeral service)
$ __________
4.
The Purchaser(s) acknowledges and agrees that the financial liability hereby assumed by Purchaser(s) is a personal obligation and is in
addition to the liability imposed by law upon the estate and others. The Funeral Home does not accept estate claims as the primary means of
payment. If this note is cosigned, all persons agree that all provisions of this note shall be binding both jointly and severally upon all parties
hereto. The Funeral Home is not a party to any arrangement to share or split charges among/between family members or any other parties.
5.
Should the Purchaser(s) fail to make full payment of the final itemized bill or the Funeral Home fails to receive full payment of the final
itemized bill within 30 days of the funeral service,
this note will be in default. In the event of a default, the Purchaser(s) agrees and
promises to pay late payment charges which will accrue monthly at the rate of 1.5% (18% per annum), on the unpaid balance, commencing on
the first day following the due date. The Purchaser(s) further agrees to pay, in addition to accrued late payment charges, any and all costs of
attorney and court fees associated with the collection of this account, without limitation. These fees and costs are in addition to any amount
owed to the Funeral Home, and are the legal responsibility of the Purchaser(s).
6.
Any monies collected by the Funeral Home from the Estate of the Deceased will be credited against any remaining balance owed. The
Funeral Home does not waive its right to file a claim against the Estate of the Deceased, nor does this contract/promissory note constitute,
in any way, a release of the Funeral Home’s rights.
7.
If any provision of this contract/promissory note is found to be unlawful or unenforceable, the remainder of the contract/promissory note
shall not be void and shall remain in effect.
8.
KBFS Third Generation
The Purchaser(s) understands the personal liability being assumed for the charges estimated and reflected in the final bill, agrees to all of
the terms outlined above, and acknowledges receipt of a copy of this contract/promissory note.
____________________________________________________________________________________________________________________
I (we) have reviewed and agree to the above provisions:
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
Purchaser #1 Signature
Funeral Director’s Name
Date
N.J. Lic. No.
© 2012 New Jersey Funeral Directors Services, Inc. and Thanexus®, Inc. All rights reserved.
Purchaser #2 Signature
Funeral Director’s Signature
Date
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This is a legal document. It contains important provisions concerning your financial obligations to this funeral home.
Name of Decedent (first, middle, last)
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CONSOLIDATED BALANCE SHEET1
(for year ended December 31, 2013)
2013
ASSETS
Current Assets
Cash and Cash Equivalents
Investments in Marketable Securities
Member Receivables2
Prepaid and Other Current Assets
Deferred Tax Assets
Other Receivables
TOTAL ASSETS
1 The operations of Thanexus, Inc. and its
$
1,568,075
760,230
550,051
40,380
2,069
38,486
$ 2,959,291
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses
$
10,541
Accrued Salaries and Related Payables
1,393,537
Income Taxes Payable
1,598
Deferred Revenue
20,000
Member Capital Payable3
10,628
4
Patronage Dividends Payable 130,712
TOTAL LIABILITIES
1,567,016
STOCKHOLDERS’ EQUITY
Common Stock, $100 Par Value; 300 Shares Authorized,
68 Shares Issued and Outstanding Additional Paid in Capital5
Accumulated Other Comprehensive Income (Loss)
Retained Earnings TOTAL STOCKHOLDERS’ EQUITY
Total Liabilities and Stockholders’ Equity
NOTES:
6,800
394,912
29,901
960,662
1,392,275
$ 2,959,291
wholly owned subsidiary, Thanexus Financial
Services, LLC, are consolidated for financial
reporting purposes. The earnings from
Thanexus Financial Services, LLC do not
contribute to patronage dividends and are
taxed at the cooperative level.
2 Member receivables reflect the financial
reporting requirements to accrue all wages
and benefits as of December 31, 2013 that are
not yet booked and processed. The amount is
considered fully collectible. Accordingly, no
allowance for doubtful accounts is required.
3 The company may retain member capital
for a period of time to pay the outstanding
liabilities of stockholders who terminate
membership after the date of termination.
The accrual to pay stockholders who
terminated membership was $10,628 and
$29,120 for the years ended December 31,
2013 and December 31, 2012, respectively.
4 Stockholders of Thanexus are entitled to a
patronage dividend distribution of eligible
earnings. Investment income and earnings
from Thanexus Financial Services, LLC are
not patronage eligible. For the years ended
December 31, 2013 and December 31, 2012,
the company declared a patronage dividend
of $130,712 and $27,780, respectively, in the
form of a cash distribution.
5 Additional paid-in capital represents prior
years’ patronage dividends, less amounts
paid out in cash distributions.
CONSOLIDATED STATEMENT OF OPERATIONS1
(for year ended December 31, 2013)
REVENUE2013
Administrative Fees Insurance Commissions Initiation Fees
Other Income Employment Related Income6
$
TOTAL REVENUE
1,281,266
468,205
8,800
14,719
38,181,144
39,954,134
DIRECT COSTS
Salaries
Payroll Taxes
Pension Costs7 Other Benefits
30,650,760
2,342,558
1,678,648
3,509,178
TOTAL DIRECT COSTS6
38,181,144
EXPENSES
General and Administrative8
Knowledge Based Funeral Service
1,572,022
14,079
TOTAL EXPENSES 1,586,101
INCOME FROM OPERATIONS
186,889 Other Income
25,618
EARNINGS BEFORE DECLARATION OF PATRONAGE DIVIDENDS 212,507
Patronage Dividends Declared
(130,712)
EARNINGS BEFORE PROVISION FOR INCOME TAXES81,795
Provision for Income Taxes
(28,883)
NET INCOME
$
52,912
Retained Earnings, Beginning of Year
$
907,750
Retained Earnings, End of Year
$
960,662
NOTES:
6 Total direct costs are netted against
employment related income in the
company’s audited financial statements.
The total employee related costs for
2013 and 2012 were $38,181,144 and
$37,191,440, respectively.
7 The Company maintains an employee
retirement plan qualified under Section
401(k) of the Internal Revenue Code. The
plan is available to all full-time employees
who have completed one year of service.
All of the stockholder funeral homes
contribute at least three percent of eligible
compensation. Firms may contribute
additional discretionary funds. The 401(k)
expense for 2013 and 2012 was $1,678,648
and $1,633,994, respectively.
8 General and Administrative costs include
office, marketing, personnel, professional
and management fees. The Company
has a management agreement with New
Jersey Funeral Directors Services, Inc. to
provide office space and related services for
a fee, which totaled $208,750 in 2013 and
$209,250 in 2012.
Thanexus Financial Services, LLC is staffed by salaried,
non-commissioned professionals who have no personal
stake in the lines of coverage offered.
In 2013, funeral directors placed
nearly $3.14 million in insurance premiums
with Thanexus Financial Services, LLC.
THANEXUS FINANCIAL
SERVICES, LLC
In 2013, our wholly owned insurance subsidiary continued to
offer optional lines of insurance tailored to funeral directors and
industry-related businesses. Members and non-members enjoy
the benefits of excellent coverage and competitive pricing through
our top-rated insurance carriers.
As of January 2014, Thanexus welcomed the following new stockholders:
Boucher Funeral Home, LLC
LeRoy P. Wooster Funeral Home
and Crematory, LLC
Woolley-Boglioli Funeral Home
Paul Ippolito Memorial
THANEXUS
PRIMARY WORKSITES
(as of December 31, 2013)
Ana Maria Zevallos/Skrocki Home
for Funerals
Gardner Funeral Home
Pettit-Davis Funeral Home
Anthony R. Pizzi Funeral Home
George H. Wimberg Funeral Home
Poulson & VanHise Funeral Directors
The Godfrey Funeral Homes
Prout Funeral Home, Inc.
Gosselin Funeral Home
Radzieta Funeral Home
Hagan-Chamberlain Funeral Home
Riewerts Memorial Home, Inc.
Higgins Home for Funerals, Inc.
Robert Spearing Funeral Home, Inc.
Hoffman Funeral Homes
S.W. Brown & Son Funeral Home, Inc.
Holmdel Funeral Home
Saul Funeral Homes, Inc.
Introcaso-Angelo Funeral Home
Shook Funeral Home, Inc.
John F. Pfleger Funeral Home, Inc.
Shook’s Cedar Grove Funeral Home, Inc.
Kain-Murphy Funeral Services
Smith-McCracken Funeral Home
Krowicki Gorny Memorial Home
Snover Givnish Funeral Home
M. John Scanlan Funeral Home
South Jersey Funeral Associates, Inc.
MacFadden Funeral Home
Stephen J. Priola Parsippany Funeral Service
Damiano Funeral Home
McCriskin-Gustafson
Home for Funerals, LLC
Timothy E. Ryan Home for Funerals
Doyle Funeral Home, Inc.
McLaughlin Funeral Home
Vander May Wayne Colonial
Funeral Home, Inc.
Ely Funeral Home
Memorial Funeral Home
Vander Plaat Funeral Home, LLC
Evoy Funeral Homes, Inc.
Nazare Memorial Home
Walter J. Johnson Funeral Home
Festa Memorial Funeral Home, Inc.
Norman Dean Home for Services, Inc.
Warner-Wozniak Funeral Service
Freeman Funeral Homes
Norton Funeral Home
Wimberg Funeral Home
Funeral Service of New Jersey, Inc.
Oakland Memorial Home
G. Keenen O’Brien Funeral Home, Inc.
Pancoast Funeral Home
Galante Funeral Home
Parow Funeral Home, Inc.
Gallaway & Crane Funeral Home, Inc.
Peppler Funeral Home
Ashcraft Funeral Homes
Bailey Funeral Home
Beaugard Funeral Home, LLC
Biondi Funeral Home
Bizub-Quinlan Funeral Home
Bradley & Stow Funeral Home
Bradley Funeral Home
Brunswick Memorial Home
Codey & Mackey Funeral Home
Costantino Funeral Home
Costello-Runyon Funeral Homes
Creran Funeral Homes
Bold = New stockholders in 2013
CONTACT US
Interested in becoming a Thanexus stockholder?
Contact Chris Murphy, business development manager, at 888.309.5137.
P.O. Box L
Manasquan NJ 08736-0642
888.309.5137
www.thanexus.coop
© 2014 Thanexus, Inc. All rights reserved. PO#14-092 4.14