KUR
2020 ANNUAL REPORT
CONTENTS OF 01 TABLE CONTENTS
02
LETTER FROM THE CEO
05
LETTER TO THE SHAREHOLDERS
AND 06 HISTORY MISSION GROWTH 08 OUR AND IMPACT
10 HIGHLIGHTS FROM 2020 12
FINANCIAL RESULTS This 2020 Annual Report for the KUR Wellness Resort was created using data collected during the 2020 fiscal year. It is represented to the best knowledge possible by the official legal auditors of KUR. All information is owned by KUR and its affiliates and is for public shareholder use only.
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LETTER FROM THE CEO KUR's CEO, Jonas Mรถven, discusses the incredible growth of KUR over the past year and shares his goals of expanding KUR into a household name in holistic health.
he past year has been that of
T
by 10%- a total of 40% at the end of
notable successes, discoveries, and
2020. This has helped up keep our
innovations for KUR. We have recently
promise of well-being not only inside
finished our exciting 5-year undertak-
our facility, but outside as well.
ing of updating several facilities on the grounds, and introduced a number of cutting-edge services to our already extensive catalog. We would thank to graciously thank those who contributed to the research and construction funds for our aspirational projects. We
Our commitment to the wellness of each customers body, mind, and soul has kept our company growing and thriving for the past 32 years. We are always researching new ways to take advantage of nature's healing powers.
would not have been able to achieve
With 2021 comes 2 new doctors with
our goals without your support.
specialties in using hydrotherapy to
2020 was also a great year for KUR to focus on our impact on the Earth. The new decade was a chance for us to focus on keeping our world as healthy and clean as we wish to keep our visitors. Our team created a new eco-friendly plan to reduce harmful waste and utilize more sustainable resources. In the first year of our new program, we have exceeded our goal of using more sustainable resources
treat those of our visitors experiencing chronic pain. Our goal this year is to create improvements in our treatments to more effectively treat the various conditions we see daily. We insist on using the power of water, fresh air, and organic food to power the body and heal from the inside out. I wish you all a new year of success, happiness, and wellness!
Dr. Jonas Mรถven
Chief Executive Officer, KUR
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3
BODY
MIND SPIRIT
4
LETTER TO THE SHAREHOLDERS Marina Weber, COO, uses her European training in hydrotherapy to bring relaxation and relief to KUR patients seeking an all-natural alternative to health care.
Since 1989, KUR Wellness Resort has provided state-of-the-art care for the public who seek holistic healthcare options. We have used years of research and practice to create created a fresh, unique approach to caring for the physical body and soul of every visitor to our resort. As the Chief Operating Officer, I took it upon myself to increase involvement between our corporation and our stock holders. We feel that it's important to show appreciation for the financial support our sharehold-
holistic and natural health care. We
ers, therefore we plan to hold our
heal the body, mind, and spirit individ-
first stockholders conference on
ual, and as a whole.
January 30th, 2021. The conference will consist of a weekend-long retreat featuring information sessions, demonstrations, auctions, panels, and a banquet. Shareholders are invited to participate and get involved with the staff and board of KUR in order to create a lasting relationship of benefactors. With this conference, we aim to keep our stockholders up to date on all of our new facilities, products, and ser-
Influenced by our German roots, KUR remains true to old German natural remedies as well as using water as a natural healer. We are dedicated to educating the public about the power of natural healing and self-care. KUR aims to bring its unique approach to wellness to every person looking for relief without pharmaceuticals.
Dr. Marina Weber
Chief Operating Officer, KUR
vices. We pride ourselves in being the only health center dedicated solely to 5
HISTORY KUR Wellness Resort, now a nationally-known health center, began very humbly. Immigrating from Germany in 1976, Heinrik Mรถven, a doctor of dermatology found that his doctor license was not satisfactory for most hospitals and practices in the U.S. Still wanting to pursue his passion, Dr. Mรถven researched natural remedies that he could use to treat the conditions of his family and friends. He used his knowledge to naturally treat his sons suffering from psoriasis. He began sharing some of his natural remedies and methods with his neighbors, and eventually they spread to the entire community. Dr. Mรถven felt that it was very important to share his natural healing techniques with his sons, who were all interested in becoming doctors themselves. His 2 eldest, Nico and Jonas, were inspired by their father's original techniques and holistic methods and became passionate about keeping these techniques in their futures. The 2 brothers studied holistic health at John's Hopkins and opened a wellness clinic in 2003. The clinic saw booming success in the first few years due to its natural methods of healing. After 5 years of hard work, KUR relocated into the state-of-the-art facility it is housed in today and has been a staple of holistic health on the west coast ever since.
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WELLNESS ENCOMPASSES A HEALTHY BODY, A SOUND MIND, AND A TRANQUIL SPIRIT. ENJOY THE JOURNEY AS YOU STRIVE FOR WELLNESS LAURETTE GAGNON BEAULIEU
MISSION OUR BODIES ARE OUR GARDENS. OUR WILLS ARE OUR GARDENERS. WILLIAM SHAKESPEARE
KUR WELLNESS RESORT IS DEDICATED TO PROVIDING TOP-QUALITY, NATURAL, AND AFFORDABLE HEALTHCARE TO ALL PEOPLE SEEKING WELLNESS IN THE MENTAL, PHYSICAL, AND EMOTIONAL PARTS OF THEIR LIVES.
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OUR GROWTH 163
125 82
94
61 49
2019
2020
15%
Growth in number of on-site employees.
2019
2020
25% More insurance plans accepted by KUR.
2019
2020
30% New KUR patients accepted than 2019.
170 144
154 138m3
120 92m3
2019
2020
20% More available rooms in the resort.
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2019
2020
10%
Additional products and services than 2019.
2019
2020
50% More sustainable resources utilized.
WHO DID WE HELP?
2020 Visitors by Condition
This year, we helped over 8,000
ing from injuries, pregnant patients,
people from all over the world. Our
and patients suffering from cancer.
facility saw the largest range of con-
These pools offer weightless relief for
ditions in a year since our creation.
those unable to bear their full weight
Relaxation
While some visitors come to KUR for
without pain. Our new nutrition pro-
387 Visitors
a respite from everyday chaos, most
grams also reached over 504 patients
of our visitors come specifically to
struggling with an Eating Disorder. We
treat their ailments. With our new
are seeking to expand our program
hydrotherapy pools, we are able to
catalog to encompass all aspects of
accommodate more conditions more
wellness while trying to remain as
effectively such as patients recover-
inclusive as possible.
Eating Disorders 504 Visitors
Mental Health 488 Visitors
Cancer Relaxation
106 Visitors
Eating Disorders
Chronic Pain Skin Conditions
Mental Health
138 Visitors
Injury Recovery 674 Visitors Prenatal Care
Cancer
Prenatal Care Injury Recovery
Chronic Pain
122 Visitors
Skin Conditions 415 Visitors
FINANCIAL TOTAL SALES
$10.4 million (up 12.1%)
E-COMMERCE SALES
$4.82 million (up 8.5%)
OPERATING MARGIN
18.3% (up 2.5%)
QUARTERLY DIVIDEND 13% increase (up 1.5%)
TOTAL ASSETS
$9.46 million (up 3.2%)
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HIGHLIGHTS The year 2020 began a new decade of prosperity for KUR as it officially became a stand-out destination among other wellness facilities in the U.S. Using last year's success, the board plans to expand the facility's reach on public health even further.
2020 was a year of many highlights
5 years. A new bath house and a
for the success of KUR. Despite the
physical therapy center opened in
uncertain economy, KUR thrived with
October, 2020 and added $9.46 mil-
patients seeking affordable, natural
lion to our total assets. These 2 new
care for their health issues. Most
facilities brought in a large number of
notably, visitors purchased products
new visitors to our facility. Our visitor
from the spa shop about 23% more
total for 2020 was 8,741- a 13.6%
than the previous year. There was also
increase from 2019.
a 17% increase in visits in 2020 than the average from the past 5 years. These factors combined resulted in a 12.1% increase in total sales for KUR.
Our operating margin also increased from 15.8% to 18.3%, resulting in a very profitable year for the KUR Wellness Resort. We had a total of $712
The increased profits from 2020 went
million in profits for this fiscal year.
partially to fund more research for
These numbers aided in our company
natural healthcare and organic prod-
decision to begin plans to open a
ucts. They also were used to fund our
secondary location on the east coast.
non-profit and community outreach
Our prosperity this year is a driving
sectors. We intend to use our suc-
force to continue to grow and spread
cesses to grow our company and give
total wellness to anyone in need,
back to the community.
regardless of location. 2021 will be
KUR also acquired more assets this year by finishing the renovation and construction projects from the past
a year of great change, great improvements, and great profits!
2020 RESULTS All data is calculated in millions of U.S. dollars unless otherwise noted. Data collected from the 2020 fiscal year.
STATE M E NT O F E A R N I N G S D ATA
I N V E STI N G A CTI V ITI E S
Net Sales
4024
Sales of Business
15
14
Sales of Property
23
Sales of Equipment
18
Net Sales Increase (%) Net Earnings
802
Net Earnings Increase (%)
22
Purchased Investments
(13)
Diluted Earnings per Share
2.4
Maturities of Investments
25
Diluted Earnings Increase (%) 1.1
Contributions to Partnership (54)
Gross Margin (%)
16
Acquired Business Payments (12)
Operating Expenses
68
Research Investments
General Expenses
12
Other 10
B A L A N C E S H E ETS + R ATI O S
A S S ETS
Total Assets
85
Short-Term Investments
13
Working Capitol
28
Receivables (Net)
57
Merchandise Inventory
40
Merchandise Inventories
66
Net Property + Equipment
32
Other Assets
20
Stockholder's Equity
12
Land 906
Value per Share
4.1
Buildings 807
Current Ratio
2.04:1
Equipment 312
Inventory Turnover
3.8x
Furniture + Fixtures
Returned Investment
18.3
Construction in Progress
STO C K H O L D E R'S E Q U IT Y
112 38.4
EARNINGS
Accounts Payable
72
Net Sales
Accrued Salaries
34
Gross Profit
Sales Taxes Payable
29
Operating Expenses
85
Other Accrued Expenses
40
Earnings Before Taxes
92
Deferred Revenue
62
Net Earnings
712
Income Tax Payable
21
Earnings per Share (Basic)
12
Earnings per Share (Diluted)
17
Total Liabilities 12
(62)
401
114 625
1000 800
G R O S S P R O F ITS in millions of U.S dollars
600
10 year results
2021 P R OJ E CTI O N
400
$1012 million US dollars
200 0 2011
2012
2013
2014
2015 201 6
2017
2018
2019 2020
15000
N U M B E R O F C U STO M E R S
10000
Individual visits per year 10 year results
5000
2021 P R OJ E CTI O N 1000
10,832 customers
500 0
2011
2012
2013
2014
2015 201 6
2017
2018
2019 2020
25 20
O P E R ATI N G M A R G I N calculated percentage
15
10 year results
2021 P R OJ E CTI O N
10
19.7%
5 0
2011
2012
2013
2014
2015 201 6
2017
2018
2019 2020
K U R S U P P O RT C E NTE R KUR WELLNESS RESORT 401 Harriman Route Klamath Falls, OR 97601 Telephone: 541-900-8000
KU R WEBSITE www.Kur_Resort.com
I N D EPEN D ENT AU D ITO RS White Grove Trust P.O. Box 58203 Atlanta, GA 30308
STO CK EXCHAN G E LISTI N G New York Stock Exchange Trading Symbol - HD
AN N UAL M EETI N G The Annual Meeting of Stockholders will be held at 2:00 pm, May 28th, 2021 at the Kur Wellness Resort Conference Room.
N U M BER O F STO CKH O LD ERS As of May 1, 2021, there were approximately 312,908 stockholders of record. This excludes stock holders holding stock under nominee position listings.