IES Reports Loss in 2024, Driven by Strategic Write-Offs and Conference Costs

The Illuminating Engineering Society (IES) reported a net loss of $2,348,620 in its recently released Annual Report for the time period of 1 JAN 2024 through 31 DEC 2024. While the numbers reflect a challenging year, they also highlight strategic decisions that may lead to long-term benefits.

Depreciation and Asset Write-Off: A Defining Number

The most significant line item in the report is the $1,617,318 charge for depreciation and asset write-offs. This non-cash expense is tied to the Society’s decision to terminate its long-term lease at 120 Wall Street—an action your humble editor views as a very smart move. The monthly rent, which I believe to be in the range of $50,000 to $60,000, included fees from an expensive pre-pandemic remodel. Several staff members do not reside in the New York area, and exiting the lease reduces overhead in a way that aligns with today’s hybrid work environment.

The decision to exit the lease was easy—but the real brilliance was in the negotiation, especially given the current surplus of office space in New York City. The lease termination became effective on 1 February 2024. A quick check of the landlord Silverstein’s website reveals that the 10,973-square-foot office space remains unrented.  

If we estimate the termination fee was around $1 million (strictly a guess), then with monthly savings of $55,000, IES will hit break-even by next month.  I wouldn’t be surprised if Silverstien sits on that unrented property for a very long time.

Conferences: A Heavyweight in Revenue and Cost

Conferences generated $2.36 million in revenue—40% of IES’s total—and were the Society’s largest income stream. However, they were also the biggest expense, costing $2.41 million, or 30% of total expenditures.

To address this, IES made key changes to its Conference programming. The most notable was the elimination of the Progress Report skit segment in this upcoming IES25, The Lighting Conference.  Because of the Progress Committee’s high production costs, removing the skit should help the Conference’s finances. This move is controversial and we wrote about it last week.

If the conference manages to break even, it would mark the first time in many years—possibly even decades—that it has done so.  While the 2024 conference ran at a small deficit, a surplus is anticipated for the 2025 edition.

LightFair is a different story.

Although LightFair did not take place in 2024, both IES and IALD continued to incur management-related costs. I expect the past 2025 show to break even or deliver a small surplus.  However, 2026 will prove more difficult financially unless there are substantial improvements to LightFair. 

Publications and Membership

Publications—including LD+A, LEUKOS, and lighting standards—brought in $978,108 but cost $1.83 million to produce, resulting in a significant deficit. That situation should improve with the sale of LD+A to Sage Publishing in July 2024.

Membership dues totaled $1.17 million, while expenses to administer the program came in at $856,772. Membership remains one of the few areas where revenue exceeded costs. However, total membership dropped from 5492 to 4663, this continued decline raises concern. On a positive note, student membership and emerging professionals both had gains.

Operating Reality

Total operating revenue for the year was $5.8 million against $8.15 million in expenses. After applying $638,347 in funds, IES reported a net operating deficit of $2.99 million. Notably, nearly 70% of that shortfall came from depreciation and write-offs—non-cash items that skew the appearance of the overall financial health.

Looking Ahead

Despite the reported loss, IES leadership, under CEO Colleen Harper, is taking meaningful steps to recalibrate operations and align spending with strategic goals. The lease termination, conference program adjustments, and changes in publication strategy all point toward a leaner, more resilient organization.

The main elephant in the room is LightFair and they, with IALD, have got to find a way to fix it by 2026.