FY2 01 2 FINANCIAL RES ULTS Fiscal year 2012 (FY2012) was an important year for the Society in terms of continuing the strong performance of many current programs in the face of turbulent market conditions. At the same time, through its strong cash position and stringent expense management, ASPS continues to have the financial strength to invest in new programs and other business development opportunities that will provide even greater value to members and their practices now and in the years ahead. On a consolidated basis, ASPS earned $22.8 million in operating revenues in FY2012 and incurred $21.7 million in operating expenses, resulting in Net Operating Income (earnings before interest, taxes, depreciation and amortization) of $1.1 million. Net operating revenue was adversely affected by a combination of lower advertising revenues from ASPS publications (due to a sharp decline in health care advertising nationally and also to a one-time change in the publishing schedule that resulted in fewer issues being released during the year) and the rotation of educational programs that occur on a biennial basis. ASPS made several technical investments to its infrastructure that ensures it continues to effectively and efficiently address the needs of its members. These include additional investments in both the Society’s website, PlasticSurgery.org, as well as Plastic Surgery Education Network (PSEN) and the launch of Access Medical Purchasing (AMP), a new group purchasing organization. The continuing investment in each of these programs in FY2012 should establish a strong foundation upon which members should realize value for many years to come. Additionally, the first half of FY2012 saw a sharp downtown in both domestic and global financial markets, and ASPS also suffered losses on its investments. However, through its disciplined approach to its investments, ASPS began to recover some of the lost value in the latter half of the year and remained well positioned to invest in new business development opportunities, meet its capital requirements, and maintain a strong balance sheet going into Fiscal Year 2013. ASPS CONSOLIDATED FINANCIAL RESULTS ($000) FY2010 Revenue Expense Net Operating Income (Loss) Net Non-Operating Income (Loss) Net Income (Loss) $23,574 $22,298 $1,276 $812 $2,088 FY2011 $24,061 $22,192 $1,869 $2,134 $4,003 FY2012 $22,778 $21,659 $1,119 ($2,242) ($1,123) FY2013 $25,713 $24,267 $1,446 $538 $1,984 (Projected) W W W. P L A S T I C S U R G E R Y. O R G