I am pleased to report that 2006 year-end financial results for Local 802 were unusually robust. In fact, we ended the year with one of the largest gains ever: $877,624. To put things in perspective, we ended 2003 with a gain of $142,109. During 2004 and 2005 we were able to maintain a more comfortable margin with gains of $223,082 and $240,639 respectively. This was achieved by a combination of factors not the least of which were the work dues increase implemented in January 2004 and vigilance regarding our spending.

As you can see, 2006 was an atypical year when compared to prior years. The larger than normal surplus in 2006 was mainly attributable to the numerous internal positions that remained vacant for most of the year.

Since most of the vacant positions have now been filled, it is my expectation that our profitability will normalize during 2007 returning to something more analogous to 2004 and 2005. Of course, even this level of profitability is dependent upon the current volume of work dues remaining constant throughout the year and keeping expenses in check.

There will, however, be some capital expenditures in 2006 and 2007.

Many of our older computers are becoming obsolete because they are unable to run new software. These computers will be replaced throughout the year.

Hopefully, by the time you read this report, the second floor should have received new carpeting as well as some furniture upgrades in the Recording Department. This improvement is long overdue and is part of an ongoing long-term plan to maintain and upgrade our building as it becomes necessary.

Our building has become our best investment by far. The value of real property in Midtown Manhattan continues to rise year after year. Maintaining our building has been and will continue to be a priority.

Our Labor-Management 2 (LM-2) report was filed well before the Department of Labor’s filing deadline. In recent years the LM-2 report has become a much more comprehensive filing, requiring a team effort from several of our departments at 802 as well as our outside accountants. A heartfelt thank you to all involved, particularly the controller’s office.

The new administration has now had three months to coalesce. With all that goes on here at 802 we had to hit the ground running. Vacant positions have been filled and the union is moving ahead — firing on all eight cylinders!

The audited results for 2006 appear in printed version of Allegro. Please take a moment to review them. If you have any questions, feel free to call me at (212) 245-4802, ext. 105.