FORTY-NINER SHOPS, INC. California State University Long Beach, CA. October 20, Q1 Results

Transcription

1 October 20,

2 Financial Overview Summary Operating Statement September and First Quarter Results Sales Assessment Investment Results Financial Statements September Year-over-year Comparison 2

3 Operating results behind Plan Slow semester start revealed a lost week Budget Variances as Month-end was 9/23/17 Sales $856,373 (8.5%) behind plan Textbooks down $474,720 (11.1%) from budget Retail Dining down $364,380 (19.2%) Residential Dining included $295K Welcome Week Standard pay occupancy at 2,458 vs 2,562 last year COG/Margin rates in line with plan 3

4 Accrued Coke Sponsorship as planned Cash flow of $153K for Q1 Investment Portfolio gain of $510K PERS Payment of $276,412K Major Capital Expenditures still pending Minimum wage impact pending 4

5 September FY 2017/2018 September Budget Variance Reported Sales $ 5,591,236 $ 5,241,078 $ 350,158 Cost of Goods $ 3,023,160 $ 2,742,467 $ (280,693) Gross Margin $ 2,568, % $ 2,498, % $ 69,465 Operating Expenses $ 1,605,388 $ 1,461,507 $ (143,881) Credit & Revenue $ 278,603 $ 354,577 $ (75,974) Operating Income $ 1,241,291 $ 1,391,681 $ (150,390) G&A Allocation $ 272, % $ 341, % $ 69,000 Operating Contribution $ 969, % $ 1,050, % $ (81,390) -7.7% Other Income/Investments $ 171,968 $ 37,500 $ 134,468 Reported Net Contribution $ 1,141, % $ 1,088, % $ 53, % 5

6 Y-T-D FY 2017/2018 September Budget Variance Reported Sales $ 9,197,248 $ 10,053,621 $ (856,373) Cost of Goods $ 4,930,683 $ 5,422,859 $ 492,176 Gross Margin $ 4,266, % $ 4,630, % $ (364,197) Operating Expenses $ 3,938,139 $ 3,874,630 $ (63,509) Credit & Revenue $ 420,285 $ 478,341 $ (58,056) Operating Income $ 748,711 $ 1,234,473 $ (485,762) G&A Allocation $ 812, % $ 996, % $ 183,815 Operating Contribution $ (63,989) -0.7% $ 237, % $ (301,947) % Other Income/Investments $ 510,240 $ 112,500 $ 397,740 Reported Net Contribution $ 446, % $ 350, % $ 95, % 6

7 Current Period - September 2017 Sales Operating Income Net Contribution Budgeted Sales Budgeted O/I Budgeted Contribution Variance Variance Sales Operating Inc Variance Net Contribution Bookstore/Comp Store $ 3,363,229 $ 624,403 $ 466,206 $ 2,909,266 $ 576,058 $ 407,618 $ 453,963 $ 48,345 $ 58,588 Food Service/C-Stores 1,044, , ,550 1,103, , ,165 (59,280) (154,330) (136,615) Residential Dining 1,162, , ,075 1,201, , ,358 (39,174) (42,250) (2,283) ID Card Office 21,515 2,715 3,386 26,866 4,871 4,467 (5,351) (2,156) (1,081) Operating Contribution $ 5,591,236 $ 1,241,292 $ 969,217 $ 5,241,078 $ 1,391,683 $ 1,050,608 $ 350,158 $ (150,391) $ (81,391) 22.2% 17.3% 26.6% 20.0% -4.4% -3% Corporate Income $ - $ 13,117 $ - $ 12,500 $ - $ - $ 617 FMV Adjustment $ - $ - $ 158,851 $ - $ 25,000 $ - $ - $ 133,851 Net Contribution $ 5,591,236 $ 1,241,292 $ 1,141,185 $ 5,241,078 $ 1,391,683 $ 1,088,108 $ 350,158 $ (150,391) $ 53, % 20.4% 26.6% 20.8% 6.7% -4.4% -0.4% Year to Date - September 2017 Sales Operating Income Net Contribution Budgeted Sales Budgeted O/I Budgeted Contribution Variance Variance Sales Operating Inc Variance Net Contribution Bookstore/Comp Store $ 5,621,025 $ 649,562 $ 152,870 $ 6,144,052 $ 933,102 $ 324,102 $ (523,027) $ (283,540) $ (171,232) Food Service/C-Stores 1,531,019 (264,138) (399,424) 1,895, ,148 (87,723) (364,380) (364,286) (311,701) Residential Dining 1,981, , ,895 1,926, ,975 (968) 55, , ,863 ID Card Office 63,292 6, ,790 11,247 2,546 (24,498) (4,984) (1,875) Operating Contribution $ 9,197,247 $ 748,711 $ (63,988) $ 10,053,620 $ 1,234,472 $ 237,957 $ (856,373) $ (485,761) $ (301,945) 8.1% -0.7% 12.3% 2.4% -4.1% -3% Corporate Income $ 123,126 $ - $ - $ 37,500 $ - $ - $ 85,626 FMV Adjustment $ 387, $ 75, ,114 Net Contribution $ 9,197,247 $ 748,711 $ 446,252 $ 10,053,620 $ 1,234,472 $ 350,457 $ (856,373) $ (485,761) $ 95, % 4.9% 12.3% 3.5% -8.5% -4.1% 1.4% 7

8 Current Year Expenditures of $337,014 $217,000 to campus for Bookstore A/C project Project in progress Campus billing complete $41,436 for Papa John s Pizza Received $5K credit for meeting implementation deadline $55,570 for Outpost Patio Furniture $13,225 Camera installation Major Projects Pending Outpost Patio Starbucks Japanese Garden 8

9 FY2017/2018 Budget Corporate 297,450 FY 2017/2018 EXPENDITURES Budgeted/ Carryover Unbudgeted Total Variance $ $ - $ - $ 297,450 $ - Bookstore 295, , ,000 78,000 Food Service 1,166, , ,713 1,053,787 Subtotal Capital Budget $ 1,758,950 $ 329,713 $ - $ 329,713 $ 1,429,237 Prior Year Carryover - 7,301-7,301 (7,301) Unbudgeted Items $ Total Capital $ 1,758,950 $ 337,014 $ - $ 337,014 $ 1,421,936 Carry Over - FY16/17 Budget POS PCI Project $ 7,301 9

10 Account# Beginning Balance Advisory Fees Interest Income Fair Value Adjustment Month end Valuation July $ 9,009, $ (8,274.97) $ 12, $ 190, $ 9,203, August $ 9,203, $ (683.39) $ 11, $ 42, $ 9,256, September $ 9,256, $ $ 11, $ 153, $ 9,422, $ (8,627.60) $ 35, $ 386, Portfolio up $413,185 (4.6%) for the Quarter 10

11 Interest/Capital Total Fair % Increase/ Account# Beginning Balance Other & Settlements Adj. Realized Gain/Loss Unrealized Gain/Loss Income (Reinvested) Month end Valuation Value Adjustment Decrease from Base $ 100, July $ 147, $ $ - $ 4, $ $ 153, $ 5, % August $ 153, $ 0.00 $ - $ (591.90) $ $ 152, $ (591.90) 52.8% September $ 152, $ - $ - $ 4, $ $ 157, $ 4, % $ $ - $ 9, $ $ 9, Portfolio up $10,105 (6.8%) for the Quarter 11

12 Investment Report Cash/Investment down $1.6M from last year Fall Housing Receipts pending $1.7M Pending payments Publishers, Sales Tax Balance Sheet Inventory down $370K, A/P down $500K A/R up $800K $600K Herff-Jones payment in October Cash Flow Statement September/Q1 Cash Flow of $1,365K/$153K Driven by investments 12

13 September-17 LAST. MO. JULY 2017 ** BALANCE** **INCOME/VALUATION ADJUSTMENTS** CURRENT MONTH YEAR TO DATE PRIOR YEAR TO DATE CUR. MO. AUG 2017 LAST YR. INTEREST FMV ADJ. INTEREST FMV ADJ. INTEREST FMV ADJ. Cash/Payroll Accounts $ 1,414,004 $ 1,174,204 $ 2,336,959 $ - $ - $ - $ - $ - $ - CNB Business Ladder 1,892,057 1,892,125 3,390, CASH (includes Business Ladder) $ 3,306,061 $ 3,066,329 $ 5,727,957 $ 75 $ - $ 291 $ - $ 218 $ - *DESIGNATED FUNDS Res.Hall Reserves $ - $ - $ - $ - $ - $ - $ - $ - $ - Sick Leave Reserves 581, , , Accrued Sick Leave Reserves 205, , , FMV Adj. Designated -18,825-18,825-18, SUB-TOTAL DESIGNATED FUNDS $ 768,432 $ 768,432 $ 768,432 $ - $ - $ - $ - $ - $ - **AUXILIARY FUNDS: SMIF - Well Fargo $ 116,487 $ 116,487 $ 113,929 $ 235 $ 4,818 $ 618 $ 9,478 $ 887 $ (446) Adjusting Entry - 0 Smith Barney Citigroup 7,652,945 7,665,136 7,487,602 11,956 23,593 23,520 0 Allowance for Fair Market Value 1,434,716 1,593, , , , ,245 Investments-Offset/Fees 331 (8,628) 0 0 Investments-Offset/Other Income (563,077) (563,077) (563,077) ,000 0 SUB-TOTAL AUXILIARY FUNDS $ 8,641,071 $ 8,812,112 $ 7,740,986 $ 12,191 $ 158,851 $ 24,211 $ 387,114 $ 44,407 $ 336,799 TOTAL CASH/INVESTMENTS $ 12,715,564 $ 12,646,873 $ 14,237,375 $ 12,266 $ 158,851 $ 24,502 $ 387,114 $ 44,624 $ 336,799 VEBA -Off-Balance Sheet $ 5,051,586 $ 5,114,198 $ 4,309,126 Funded amount $ 4,000,000 $ 4,000,000 $ 3,650,000 13

14 ASSETS Current Assets Total Cash 12,646,873 Cash on hand and in commercial accounts 3,066,329 Designated funds 768,432 Savings and other investments 8,812,112 Total Accounts Receivable 2,710,042 Total Inventory 3,300,824 Total Prepaid Expenses 35,548 Total Current Assets 18,693,287 Fixed Assets Total Fixed Assets 26,216,280 Less Accumulated Depreciation (17,650,429) Net Fixed Assets 8,565,850 TOTAL ASSETS $ 27,259,138 LIABILITIES & FUND BALANCE Current Liabilities Accounts Payable 2,104,841 Accrued Payroll and Benefits 1,912,393 Accrued Payroll Expenses 156,969 Accrued Taxes (sales &w/h ) 236,099 Other Accrued Liablities (257,886) Total Current Liabilities 4,152,415 Long-Term Liabilities Accrued Post Retirement Benefits 3,185,391 Bonds Payable 3,478,766 PERS/PEPRA Unfunded Liability 4,961,742 Total Long-Term Liabilities 11,625,899 TOTAL LIABILITIES 15,778,314 Fund Balance - Auxiliary Fund Balance-Auxiliary 10,630,771 Net Contribution YTD 446,252 Fund Balance - Auxiliary 11,077,023 Fund Balance - Designated Fund Balance-Designated 403,800 Total Fund Balance - Designated Funds 403,800 TOTAL FUND BALANCES 11,480,823 TOTAL LIABILITIES & FUND BALANCES $ 27,259,138 14

15 Actual Actual Actual Budget Budget Budget Budget Budget Budget Budget Budget Budget TOTAL YEAR Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 FY2017/2018 TOTAL REVENUE $ 1,172,484 $ 2,575,209 $ 5,869,839 $ 3,903,182 $ 2,663,177 $ 2,857,978 $ 3,840,139 $ 3,841,736 $ 3,564,598 $ 3,088,326 $ 3,148,319 $ 1,578,845 $ 38,103,832 OTHER INCOME (NO INVESTMENT) 87,140 (1,332) ,734 OPERATING CASH IN: $ 1,259,624 $ 2,573,877 $ 5,870,765 $ 3,903,182 $ 2,663,177 $ 2,857,978 $ 3,840,139 $ 3,841,736 $ 3,564,598 $ 3,088,326 $ 3,148,319 $ 1,578,845 $ 38,190,566 COST OF SALES $ 444,475 $ 1,463,048 $ 3,023,160 $ 1,317,514 $ 955,424 $ 1,054,272 $ 2,341,142 $ 1,611,344 $ 1,215,922 $ 1,090,469 $ 1,126,126 $ 849,456 $ 16,492,352 COMBINED GROSS MARGIN $ 728,009 $ 1,112,161 $ 2,846,679 $ 2,585,668 $ 1,707,753 $ 1,803,706 $ 1,498,997 $ 2,230,392 $ 2,348,676 $ 1,997,857 $ 2,022,193 $ 729,389 $ 21,611, % 43.2% 48.5% 66.2% 64.1% 63.1% 39.0% 58.1% 65.9% 64.7% 64.2% 46.2% 56.7% LABOR COST & BENEFITS $ 661,162 $ 773,537 $ 945,467 $ 1,006,545 $ 797,736 $ 790,966 $ 812,563 $ 883,090 $ 887,480 $ 982,392 $ 837,307 $ 657,434 $ 10,035,679 OPERATING EXPENSE (NET DEP) $ 421,303 $ 385,318 $ 430,715 $ 694,926 $ 507,142 $ 525,982 $ 364,858 $ 515,765 $ 546,707 $ 502,725 $ 482,905 $ 489,209 $ 5,867,555 GENERAL & ADMINISTRATIVE $ 296,581 $ 244,043 $ 272,075 $ 362,175 $ 398,914 $ 307,622 $ 357,356 $ 287,747 $ 322,520 $ 378,879 $ 307,614 $ 705,082 $ 4,240,608 OPERATING CASH OUT: $ 1,823,521 $ 2,865,946 $ 4,671,417 $ 3,381,160 $ 2,659,216 $ 2,678,842 $ 3,875,919 $ 3,297,946 $ 2,972,629 $ 2,954,465 $ 2,753,952 $ 2,701,181 $ 36,636,194 NET CONTRIBUTION W/O DEPR/INV $ (563,897) $ (292,069) $ 1,199,348 $ 522,022 $ 3,961 $ 179,136 $ (35,780) $ 543,790 $ 591,969 $ 133,861 $ 394,367 $ (1,122,336) $ 1,554,372 OTHER CASH/NON-CASH IN/OUT(+) CAPITAL EXPENDITURES 101, ,379 5, , , , , , , , ,000 1,857,465 OUTPOST SRB PAYMENT 95,000 95,000 PERS 276, ,412 INTEREST INCOME/NO FMV (12,589) (11,612) (12,191) (12,500) (12,500) (12,500) (12,500) (12,500) (12,500) (12,500) (12,500) (12,500) (148,892) FAIR MARKET VALUE Gain-/Loss+ (187,388) (40,876) (158,851) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (612,115) SUBTOTAL OTHER IN/OUT(+) $ 177,724 $ 177,891 $ (165,695) $ 134,000 $ 195,000 $ 82,700 $ 78,500 $ 227,500 $ (37,500) $ 154,750 $ 205,500 $ 237,500 $ 1,467,870 OPENING CASH BALANCE $ 13,373,023 TOTAL CASH OUT $ 2,001,245 $ 3,043,837 $ 4,505,722 $ 3,515,160 $ 2,854,216 $ 2,761,542 $ 3,954,419 $ 3,525,446 $ 2,935,129 $ 3,109,215 $ 2,959,452 $ 2,938,681 $ 38,104,064 NET MONTHLY CASH FLOW $ (741,621) $ (469,960) $ 1,365,043 $ 388,022 $ (191,039) $ 96,436 $ (114,280) $ 316,290 $ 629,469 $ (20,889) $ 188,867 $ (1,359,836) $ 86,502 CUMULATIVE CASH FLOW $ (741,621) $ (1,211,581) $ 153,462 $ 541,484 $ 350,445 $ 446,881 $ 332,601 $ 648,891 $ 1,278,360 $ 1,257,471 $ 1,446,338 $ 86,502 CASH BALANCE $ 12,631,402 $ 12,161,442 $ 13,526,485 $ 13,914,507 $ 13,723,468 $ 13,819,904 $ 13,705,624 $ 14,021,914 $ 14,651,383 $ 14,630,494 $ 14,819,361 $ 13,459,525 15

16 Q1 results behind last year Sales and O/I trailing in all key areas Residential occupancy down 100 Margins only.3 point lower Labor up ahead of min wage increase Investments up $100K 16

17 Year to Year Comparison - Current Period - September September 2017 September 2016 Monthly Variance Sales Operating Income Net Contribution Sales Operating Income Net Contribution Variance Variance Sales Operating Inc Variance Net Contribution Bookstore/Comp Store $ 3,363,229 $ 624,403 $ 466,206 $ 1,509,562 $ 184,466 $ 63,482 $ 1,853,667 $ 439,937 $ 402,724 Food Service/C-Stores 1,044, , ,550 1,068, ,747 42,431 (24,446) 121, ,119 Residential Dining 1,162, , ,075 1,157, , ,191 4,814 (48,077) 884 ID Card Office 21,515 2,715 3,386 13,342 (823) (1,884) 8,173 3,538 5,270 Operating Contribution $ 5,591,236 $ 1,241,292 $ 969,217 $ 3,749,028 $ 724,778 $ 408,220 $ 1,842,208 $ 516,514 $ 560, % 17.3% 19.3% 10.9% 2.9% 6.4% Div. 1 Corporate Income $ - $ - $ 13,117 $ - $ 15,614 $ - $ - $ (2,497) Div. 1 FMV Adjustment $ - $ - $ 158,851 $ - $ 47,784 $ - $ - $ 111,067 Net Contribution $ 5,591,236 $ 1,241,292 $ 1,141,185 $ 3,749,028 $ 724,778 $ 471,618 $ 1,842,208 $ 516,514 $ 669, % 20.4% 19.3% 12.6% 49.1% 2.9% 7.8% Year to Year Comparison - September Year-to-Date September 2017 September 2016 Total Year Variance Sales Operating Income Net Contribution Sales Operating Income Net Contribution Variance Variance Sales Operating Inc Variance Net Contribution Bookstore/Comp Store $ 5,621,025 $ 649,562 $ 152,870 $ 6,015,051 $ 897,521 $ 359,474 $ (394,026) $ (247,959) $ (206,604) Food Service/C-Stores 1,531,019 (264,138) (399,424) 1,800,551 (209,991) (371,050) (269,532) (54,147) (28,374) Residential Dining 1,981, , ,895 1,905, , ,136 76,362 21,436 16,759 ID Card Office 63,292 6, ,029 4,211 (800) 7,263 2,052 1,471 Operating Contribution $ 9,197,247 $ 748,711 $ (63,988) $ 9,777,180 $ 1,027,329 $ 152,760 $ (579,933) $ (278,618) $ (216,748) 8.1% -0.7% 10.5% 1.6% -2.4% -2.3% Div. 1 Corporate Income $ - $ - $ 123,126 $ - $ 61,056 $ - $ - $ 62,070 Div. 1 FMV Adjustment $ ,114 $ 336, ,315 Net Contribution $ 9,197,247 $ 748,711 $ 446,252 $ 9,777,180 $ 1,027,329 $ 550,615 $ (579,933) $ (278,618) $ (104,363) 8.1% 4.9% 10.5% 5.6% -5.9% -2.4% -0.8% 17