1. Finance & Investment Committee FY2016/2017 1st Quarter Results
October 21, 2016

2. FY 2016/2017 First Quarter Financial Results
Financial Overview
Summary Operating Statement
September and First Quarter Results
Sales Assessment
Investment Results
Financial Statements
September Year-over-year Comparison
Contribution History/Wage Impact

3. FY 2016/2017 First Quarter Financial Overview
Operating results behind Plan
Timing Variances on Sales and Credit & Revenues
Sales $531K (5.2%) behind plan
Textbooks down $249K (6.0%) from budget
Residential Dining down $169K (8.1%)
Slow summer Sales
Margins running half point below plan
Operating Income on plan
Delayed hiring/Expense deferal
-Textbook/Verba Link fixed
ID Card Sales were a timing benefit. Budgeted later.

4. FY 2016/2017 First Quarter Financial Overview (cont’d)
Major Capital Projects completed
Expenditures in line and awaiting campus invoicing
Cash flow of $556K for Q1(False Positive)
Investment Portfolio up $380K
$520K Campus Track Loan reimbursement
PERS Payment of $228K
Minimum wage impact pending
-Textbook
ID Card Expense/Sales were a timing impact. Invoice pending from CO.

5. Operating Statement Summary September and 1st Quarter Results
Credits & Revenues missed budgeted Coke Sponsorship funding

6. Current Year Expenditures of $421,250
FY2016/2017 Q1Capital Status
Current Year Expenditures of $421,250
$294,841 Amazon Locker ($567K Budget)
Project complete and awaiting campus invoicing
$48,647 USU EBT Project ($47K Budget)
$18,301 Prior year project Carry over
Ongoing miscellaneous projects

7. Capital Expenditure Status FY 2016/2017 September YTD
Amazon and USU EBT Projects completed
- Awaiting final invoicing from campus

8. Smith Barney Portfolio FY 2016/2017 Performance
Portfolio up $360,765 (4.5%) for the Quarter

9. SMIF Portfolio FY 2016/2017 Performance
Portfolio up $441 (.3%) for the Quarter
$240K up since 9/30/11

10. Financial Statements Overview September 2016
Investment Report
Cash/Investment up $2.5M from last year
Campus paid of $520K track Loan
$960K Investment swing ($580K YTD loss last year)
$500K Pending payments to Campus, Sales Tax, Capital
Balance Sheet
Cash per Investment report
A/R down $1M - $500K Athletics loan
Inventory up $260K, A/P up $300K
Employee Long Term Liability up $600K
Cash Flow Statement
September/Q1 Cash Flow of $1,071K/$556K
Track Loan repayment and Investments. Rest operational.
PERS GASB 68 Payment of $228K in July

11. Investment Designation Report September 2016
PERS GASB 68 Payment of $228,312 in July
$520K Receipt in September for Track Loan
Investment turn around
$300K+ pending for Athletics, Housing, Campus
Sales tax due

12. Balance Sheet – September 2016
Update
Cash Up from last year
Fall Housing payment ($2.7M) received in September this year
Monthly VEBA funding of $50K chipping away at Post Retirement but PERS now added to the mix.

13. Cash Flow – September 2015
September/Q1 Cash Flow of $983,567/$528,117. Driven by Track Loan reimbursement $520K, Investment $381K
PERS Payment and Monthly VEBA Funding

14. FY 2015 & 2016 Year-to-Year September YTD Comparison
Q1 results tracking behind of last year
Sales trailing in Textbooks and Residential Dining Summer Activity
Margins a half point lower
Awaiting second half minimum wage impact
Investments turn around from loss position

15. September Operating Statement Year-to-Year Comparison

16. Contribution History

17. Financial History Contribution Reporting
Need to Formally Define Budget Base Target for Incentive
Need to Address how to achieve that Target
Paradigm Shift between Books and Food
Ongoing Minimum Wage Impact threatens success

18. Financial History Contribution Reporting
Official Reported Results Skewed by investments and Accounting adjustments
Accounting for Extraordinary events includes PERS and Post Retirement Medical
History only Reported the liability
Cash requirement Pending and Ongoing
Ongoing historical catchup/Payments for PERS
Post Retirement Medical being covered through VEBA

19. Sales and Contribution History (Per Audit )

20. Contribution History (by Category)
Post Retirement Medical
Economic Melt own
PERS/Post Retirement
PERS

21. FY 2015/2016 Pro-Forma Operating Results

22. Contribution History Net of Non-Operational Items
Meal Price Increases/Textbook Challenges
Staff/Benefit reductions
Historical TextBook Cash Cow
Pricing slowdown/Minimum wage challenges
Economic Meltdown

23. Escalating HR Costs to Consider
Minimum Wage Increases
Effective Date
Old Rate
Final Minimum Wage Mandate
Increase Amount
Average Labor Hours
Projected Total Impact
(align CA & LB)
January 1, 2014
$8.00
$9.00
$1.00
469,768
$ ,768.00
January 1, 2016
$10.00
January 1, 2017
$10.50
$0.50
$ ,884.00
January 1, 2018
$11.00
January 1, 2019
$11.50
$12.00
January 1, 2020
$12.50
$13.00
January 1, 2021
$13.50
$14.00
January 1, 2022
$14.50
$15.00
$ 2,348,840.00
These total average hours are based on:
- Full time hourly employees
- Part time employees
- Majority part time student workforce