February 24, 2003

Slow economy shorts LifeWay
budget despite income gains
___NASVHILLE, Tenn. (BP)--Revenues at LifeWay Christian Resources will fall $18 million short of budget this fiscal year, according to Ted Warren, executive vice president.
___Despite the budget shortfall, overall revenue could post a 3.4 percent gain over the previous fiscal year, Warren told LifeWay trustees Feb. 10.
___The Southern Baptist Convention's publishing house operates on a fiscal year of Oct. 1 through Sept. 30.
___Income is down across the board, Warren said, although the international department especially has been hard hit.
___LifeWay's operating budget for the current fiscal year is $446.6 million, plus budgeted capital expenditures of $23.6 million.
___In the previous fiscal year, LifeWay recorded record revenues of $422.5 million, up $20 million over the year before.
___Warren also reported the market value of LifeWay's retirement trust fund has dipped below its future payout obligation, but LifeWay plans to designate reserve funds to make up the current deficit.
___The deficit is due to the significant decline in the stock market during the last three years, he said.
___"It is important for our employees and retirees to understand that the trust fund is still well-funded and that employee and retiree pension benefits are still intact," Warren said.
___LifeWay's retirement trust fund is 96 percent funded and remains in a solid position compared with many other U.S. corporations facing similar financial challenges, he said.
___Trustees approved a recommendation authorizing an increase in the price of all dated and undated Sunday School curriculum by as much as 3.7 percent, effective in the spring of 2004. The actual price and percentage increase, if any, will be determined in the summer of 2003.
___Gene Mims, vice president of the church resources division, cited increased production costs and declines in unit sales as the reasons for a possible rate increase.
___Mike Arrington, vice president of corporate affairs, reported that a committee is continuing to study water availability for proposed developments at the LifeWay Glorieta Conference Center in New Mexico.
___Planned improvements include completion of year-round youth facilities and multi-level meeting spaces at Glorieta.
___Trustees re-elected George Iwahiro, a layman and retired utility executive from Honolulu, as trustee chairman. They also elected Roger Willmore, pastor of First Baptist Church in Boaz, Ala., as vice chairman, and re-elected Tim Marrow, pastor of Taylor Ranch Baptist Church in Albuquerque, N.M., as recording secretary.

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