ASIS Revenue Falls 50%, Hit By COVIDBy John Honovich, Published Feb 18, 2022, 08:55am EST
ASIS International's FY 2021 revenue fell by more than 50%, as its prime money maker, GSX, was impacted. This compounds ASIS problems whose net assets have been declining for years.
Inside this note, we examine ASIS's financials, the main drivers of the organization's business, and the challenges for ASIS' future.
ASIS reports its finances in 2 ways, (1) via its annual "State of the Associaton" (see 2021 report and 2020 report) and (2) via annual Form 990 filings to the US government (2021 and 200 are not yet available, 2019 Form 900 is here). Note: ASIS tells IPVM that the "State of the Association" represents ASIS and its affiliates (e.g., ASIS Foundation) while the 990 only represents ASIS International.
FY2021 Revenue and Expenses
ASIS revenue fell from $27 million to just $13 million in FY 2021 and the organization's expenses ($18 million) exceeded its revenue by $5 million. The chart below contrasts 2021 and 2020 financials:
Declining Net Assets
ASIS International's net assets have fallen about half in the last 2.5 years from $23.4 million at the end of 2017 to $12.4 million on June 31, 2020, per its 990 filings. Net assets continued to decline in 2021, with ASIS International and its affiliates most recently reporting $11.2 million.
Conference Prime Money Maker
The GSX (formerly named ASIS) annual US conference is the organization's prime generator of both revenue and profits (ASIS is a non-profit so while it is technically not "profit", the excess funds earned at the conference fund the rest of the organization). Vendors buying GSX booths and sponsorships from ASIS is the core revenue generator for the Conference.
For example, 2019 ASIS Conferences had a surplus of $3+ million with revenue of $13.75 million compared to expenses of $10.64 million. This was despite the show struggling for years.
Indeed, 2018 ASIS Conferences had a surplus of $4+ million, with revenue of $15.34 million compared to expenses of $11.32 million, calculated from disclosures in its 2019 Association report.
Without a physical show in 2020, Conferences revenue dropped from $13.75 million to less than $2 million.
Contributing to ASIS expenses are 13 executives that have an average compensation of $280,000 and make a combined $3.6 million. Its 2020 990 filing excerpt below shows the top few:
Response From ASIS
ASIS provided us this response to our questions on their financials, copied below in full:
For 67-years the ASIS International Board of Directors has partnered with its staff and volunteers to create and maintain a sustainable organization. The ASIS Board and staff leadership have operated in a transparent and inclusive manner and will continue to do so. Our organization has been led for the past six years by an award-winning CEO, who has recruited and retained a best-in-class staff who have partnered with volunteers around the world to advance ASIS International’s mission.
The COVID-19 pandemic has had an international impact on business and ASIS is no different. It’s been a time when resiliency and dedication to mission have been crucial for survival. To the credit of the ASIS International Global Board of Directors, our global volunteers, and staff, we continue to meet and exceed the needs of our members and stakeholders.
We also continue to honor our commitment to transparency and communication with members and stakeholders by communicating about financials and other important matters. This includes quarterly Town Hall meetings with global volunteer leaders, frequent reports to the Global of Directors and Budget/Finance/Audit Committee, and to the general members through our Annual Report and Annual Business Meeting.
ASIS remains firmly focused on advancing the security profession and continuing to provide value to our 34,000 members worldwide.
While COVID is clearly beyond the control of ASIS, COVID has exacerbated the long-term structural problems of ASIS given its dependency on making money from its GSX Conference as GSX has struggled to compete with ISC West.
2 reports cite this report:
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