GOODWILL INDUSTRIES OF HOUSTON BOARD FINANCIAL PACKET FOR THE MONTH OF JANUARY 2018

Transcription

1 GOODWILL INDUSTRIES OF HOUSTON BOARD FINANCIAL PACKET FOR THE MONTH OF JANUARY 2018 February 12, 2018

2 To: From: GOODWILL INDUSTRIES OF HOUSTON P&L Analysis for January 2018 Members of the Goodwill Industries of Houston (GWH) Board and Members of the GWH Foundation Board Tony Van Slyke Vice President & Chief Financial Officer Date: February 12, 2018 Re: P&L Analysis January 2018 BALANCE SHEET Combined with the Foundation, GWH maintains a strong, stable balance sheet. Liquidity is strong as demonstrated by the current ratio of 2.7 times as of January 31, Also, evidence of the strong balance sheet was the Total Liabilities/Net assets ratio being a modest 31.3% at January 31, The strong balance sheet is supported by the Foundation which had approximately $12.1 million invested in cash and short-term investments at January 31, In compliance with the GWH investment policy, approximately $3.0 million of the Foundation funds are invested at UBS split between equities (57%) and bonds (43%). The percentage of equities increased in 2017 due to the very strong performances in domestic and international equities. The remaining funds are invested conservatively in cash and cash equivalents. We have also been asked to look at the balance sheet for Goodwill Houston without the Foundation. Without the Foundation, we had a current ratio of 1.3 times and Total Liabilities/Net assets ratio of 56.0% at January 31, As of January 31, 2018 Goodwill Houston (GWH) had $120,000 outstanding on its line of credit. The line of credit was paid down to $0 on February 2, 2018 and the outstanding was $0 as of February 12,

3 INCOME STATEMENT Revenues: Total Revenues increased 3.2% to $7,157,589 from $6,937,389 due to a $176,230 increase in Store Sales and an $84,703 increase in Salvage Sales. Total Revenues were $115,094 over budget in January Store Sales: Store Sales for January 2018 increased 3.2% to $6,319,120 from $6,120,404 and were $176,230 over budget despite having 2 icy weather days where stores either were closed or had to open late. Same Store Sales increased 1.9% in January 2018 compared to January We are experiencing meaningful improvements in the Donated Goods business and we are seeing the results in the monthly financial statements. Same Store net income increased 27.1% compared to the same period last year. Salvage Sales: Salvage Sales were $84,703 over budget in January 2018 mainly due to year-end donor increases the last few months and due to renegotiating of rates thanks to Patricia Salmon. Donors per square foot (DSF) were 3.36 in January 2018 compared to 3.70 last year. Workforce and Grants: Workforce and Grants revenues were $99,911 below budget in January 2018 due to the timing of grant expenditures. As a reminder, our grants are reimbursable grants which means that the revenues we receive from the grants offset the expenses funded for the grant. Goodwill Temporary Services (GTS): GTS revenues were $45,977 below budget in January 2018 mainly due to the 2 ice days where all of the GTS employers were closed. GTS was still profitable for the month as Wages GTS Temps was also well below budget. Fundraising Events: Fundraising Events revenues were over budget in January due to the timing of receipts for the May 2018 gala. Expenses: Overall Total Operating Expenses were $117,735 over budget in January 2018, but were mostly offset by Total Revenues being $115,094 over budget. 3

4 Salaries and Wages: This expense was $279,510 over budget in January 2018 due to increased hiring at the stores. You may remember that some of the stores had gotten dangerously low on staffing last year. There has been a focus on increasing hiring to get the stores fully staffed and this is happening faster than planned. As the stores become fully staffed they will be able to produce more efficiently and keep the river of goods flowing. Client Supportive Services: This expense is primarily related to the Greater Houston Community Foundation grant to assist those affected by Hurricane Harvey. This expense was $7,687 over budget in January 2018 and these expenses were reimbursed by the grant. Conference/Training/Travel: This expense was $7,295 over budget in December and was mostly related to Donated Goods staff getting training in Sarasota. This should just a timing issue on those expenses. Excess Revenues (Expenses): Excess Revenues (Expenses) before Contributions and Depreciation were $242,036 for the month of January 2018 and were in line with the budget of $244,667. As an additional analysis, on page 7 the amount the GWH operations that funded mission expenses not covered by grants was added back as a reminder of our commitment to fund mission shortfall through our retail operations and throughout the company. In addition, restricted contributions for mission services was added to present net income plus restricted contributions and mission after depreciation which was $250,363 for the month ended January 31, We are off to a strong start to 2018 and look forward to that trend continuing throughout the year. We look forward to seeing you at our Annual Meeting on Wednesday, February 21, 2017 at 11:30 a.m. 4

5 GOODWILL INDUSTRIES OF HOUSTON and THE GOODWILL FOUNDATION BALANCE SHEET As of January 31, 2018 Goodwill Unrestricted Goodwill Foundation Unrestricted Foundation Combined ASSETS CURRENT ASSETS: Cash and Cash Equivalents $964,509 $9,022,737 $9,987,246 Short-Term Investments 3,069,244 3,069,244 Accounts Receivable 1,118,062 1,118,062 Pledges Receivable 11,294 11,294 Inventory 7,107,286 7,107,286 Prepaids / Deposits 1,937,542 1,937,542 Due (To)/From - Interfund 35,936 (35,936) TOTAL CURRENT ASSETS 11,163,335 12,067,338 23,230,673 5 LONG-TERM ASSETS: Long-Term Investments Property and Equipment - net 12,667,990 12,667, TOTAL LONG-TERM ASSETS 12,667,990 12,667, TOTAL ASSETS 23,831,325 12,067,338 35,898,663 LIABILITIES & NET ASSETS CURRENT LIABILITIES: Accounts Payable 851, ,959 Accrued Expenses 7,303,352 7,303,352 Deferred Income 274, ,213 Line of Credit 120, , TOTAL CURRENT LIABILITIES 8,549,524 8,549,524 LONG-TERM LIABILITIES: Notes Payable TOTAL LIABILITIES 8,549,524 8,549,524 NET ASSETS Unrestricted 15,281,801 11,797,478 27,079,279 Temporarily Restricted Permanently Restricted 269, , ,281,801 12,067,338 27,349, TOTAL LIABILITIES & NET ASSETS 23,831,325 12,067,338 35,898,663

6 MONTH Month Act. MONTH Month Bud. MONTH PRIOR YR YTD YTD Act. YTD YTD Bud. YTD PRIOR YR ACTUAL % Rev BUDGET % Rev VARIANCE MO. ACTUAL ACTUAL % Rev BUDGET % Rev VARIANCE YTD ACTUAL REVENUES Store Sales $6,319,120 $6,142,890 $176,230 $6,120,404 $6,319,120 $6,142,890 $176,230 $6,120,404 Salvage Sales 502, ,227 84, , , ,227 84, ,968 Workforce and Grants 134, ,629 (99,911) 219, , ,629 (99,911) 219,669 Temporary Services 165, ,666 (45,977) 189, , ,666 (45,977) 189,039 Fundraising Events 33,700 30,000 3,700 33,700 30,000 3,700 Interest and Other 1,432 5,083 (3,651) 10,309 1,432 5,083 (3,651) 10, TOTAL OPERATING REVENUE 7,157,589 7,042, ,094 6,937,389 7,157,589 7,042, ,094 6,937, TOTAL OPERATING EXPENSE 6,915, % 6,797, % 117,725 7,015,643 6,915, % 6,797, % 117,725 7,015, EXCESS REVENUES (EXPENSES) 242, % 244, % (2,631) (78,254) 242, % 244, % (2,631) (78,254) Depreciation 266, % 280, % (13,613) 336, , % 280, % (13,613) 336,525 CHANGE IN NET ASSETS BEFORE CONTRIBUTIONS (24,351) -0.34% (35,333) -0.50% 10,982 (414,779) (24,351) -0.34% (35,333) -0.50% 10,982 (414,779) Goodwill Industries - Unrestricted Net Assets Before Contributions For the Month Ended January 31, EXPENSES Salaries and Wages 2,852, % 2,573, % 279,510 2,857,153 2,852, % 2,573, % 279,510 2,857,153 Wages - GTS Temps 103, % 137, % (33,700) 125, , % 137, % (33,700) 125,934 Payroll Taxes 221, % 198, % 22, , , % 198, % 22, ,360 Workers Compensation 79, % 73, % 5,380 89,560 79, % 73, % 5,380 89,560 Pension and Retirement 26, % 23, % 2,147 43,071 26, % 23, % 2,147 43,071 Unemployment 27, % 26, % ,162 27, % 26, % ,162 Employee Insurance 175, % 218, % (43,329) 295, , % 218, % (43,329) 295,006 Other Human Services Expense 6, % 4, % 2,012 5,664 6, % 4, % 2,012 5,664 Occupancy - Rent/Maint/Repairs/Security 2,243, % 2,280, % (37,519) 2,119,059 2,243, % 2,280, % (37,519) 2,119,059 Utilities 143, % 143, % (212) 134, , % 143, % (212) 134,670 Insurance - General Liability 115, % 126, % (10,859) 127, , % 126, % (10,859) 127,998 Telecom and Network 48, % 56, % (8,081) 55,051 48, % 56, % (8,081) 55,051 Legal/Audit/Other Professional Fees 146, % 150, % (4,272) 143, , % 150, % (4,272) 143,595 Supplies 104, % 138, % (33,571) 144, , % 138, % (33,571) 144,240 Client Supportive Services 40, % 32, % 7,687 66,374 40, % 32, % 7,687 66,374 Vehicle Expense 71, % 68, % 3,061 65,230 71, % 68, % 3,061 65,230 Conferences/Training/Travel 22, % 15, % 7,295 8,322 22, % 15, % 7,295 8,322 Equipment and Software Rent/Maintenance 149, % 151, % (1,062) 146, , % 151, % (1,062) 146,984 Trash Removal 98, % 103, % (4,732) 110,373 98, % 103, % (4,732) 110,373 GII Dues and Other Dues/Memberships 18, % 18, % ,975 18, % 18, % ,975 Postage and Shipping 36, % 36, % (690) 37,286 36, % 36, % (690) 37,286 Interest 1, % 2, % (626) 577 1, % 2, % (626) 577 Bank Charges/Courier 61, % 64, % (2,890) 45,161 61, % 64, % (2,890) 45,161 Credit Card/Check Fees 79, % 80, % (1,447) 83,196 79, % 80, % (1,447) 83,196 Advertising/Printing/Subscriptions 26, % 56, % (29,646) 32,035 26, % 56, % (29,646) 32,035 Fundraising Events 10, % 10, % 428 1,134 10, % 10, % 428 1,134 Other 4, % 5, % (1,432) 6,473 4, % 5, % (1,432) 6,473 Number of Employees (including GTS) 2,111 Inventory - Contributed Goods Adjustment - December 2017 (285,240)

7 MONTH Month Act. MONTH Month Bud. MONTH PRIOR YR YTD YTD Act. YTD YTD Bud. YTD PRIOR YR ACTUAL % Rev BUDGET % Rev VARIANCE MO. ACTUAL ACTUAL % Rev BUDGET % Rev VARIANCE YTD ACTUAL REVENUES Store Sales $6,319,120 $6,142,890 $176,230 $6,120,404 $6,319,120 $6,142,890 $176,230 $6,120,404 Salvage Sales 502, ,227 84, , , ,227 84, ,968 Workforce and Grants 134, ,629 (99,911) 219, , ,629 (99,911) 219,669 Temporary Services 165, ,666 (45,977) 189, , ,666 (45,977) 189,039 Fundraising Events 33,700 30,000 3,700 33,700 30,000 3,700 Interest and Other 1,432 5,083 (3,651) 10,309 1,432 5,083 (3,651) 10, TOTAL OPERATING REVENUE 7,157,589 7,042, ,094 6,937,389 7,157,589 7,042, ,094 6,937, TOTAL OPERATING EXPENSE 6,915, % 6,797, % 117,725 7,015,643 6,915, % 6,797, % 117,725 7,015, EXCESS REVENUES (EXPENSES) 242, % 244, % (2,631) (78,254) 242, % 244, % (2,631) (78,254) Depreciation 266, % 280, % (13,613) 336, , % 280, % (13,613) 336,525 CHANGE IN NET ASSETS BEFORE CONTRIBUTIONS (24,351) -0.34% (35,333) -0.50% 10,982 (414,779) (24,351) -0.34% (35,333) -0.50% 10,982 (414,779) Mission 114, , , ,802 Contributions 160,644 5, ,644 5,019 Net Income Plus Contributions and Mission 250,363 (35,333) (306,958) 250,363 (35,333) (306,958) Goodwill Industries - Unrestricted Net Assets Before Contributions For the Month Ended January 31, EXPENSES Salaries and Wages 2,852, % 2,573, % 279,510 2,857,153 2,852, % 2,573, % 279,510 2,857,153 Wages - GTS Temps 103, % 137, % (33,700) 125, , % 137, % (33,700) 125,934 Payroll Taxes 221, % 198, % 22, , , % 198, % 22, ,360 Workers Compensation 79, % 73, % 5,380 89,560 79, % 73, % 5,380 89,560 Pension and Retirement 26, % 23, % 2,147 43,071 26, % 23, % 2,147 43,071 Unemployment 27, % 26, % ,162 27, % 26, % ,162 Employee Insurance 175, % 218, % (43,329) 295, , % 218, % (43,329) 295,006 Other Human Services Expense 6, % 4, % 2,012 5,664 6, % 4, % 2,012 5,664 Occupancy - Rent/Maint/Repairs/Security 2,243, % 2,280, % (37,519) 2,119,059 2,243, % 2,280, % (37,519) 2,119,059 Utilities 143, % 143, % (212) 134, , % 143, % (212) 134,670 Insurance - General Liability 115, % 126, % (10,859) 127, , % 126, % (10,859) 127,998 Telecom and Network 48, % 56, % (8,081) 55,051 48, % 56, % (8,081) 55,051 Legal/Audit/Other Professional Fees 146, % 150, % (4,272) 143, , % 150, % (4,272) 143,595 Supplies 104, % 138, % (33,571) 144, , % 138, % (33,571) 144,240 Client Supportive Services 40, % 32, % 7,687 66,374 40, % 32, % 7,687 66,374 Vehicle Expense 71, % 68, % 3,061 65,230 71, % 68, % 3,061 65,230 Conferences/Training/Travel 22, % 15, % 7,295 8,322 22, % 15, % 7,295 8,322 Equipment and Software Rent/Maintenance 149, % 151, % (1,062) 146, , % 151, % (1,062) 146,984 Trash Removal 98, % 103, % (4,732) 110,373 98, % 103, % (4,732) 110,373 GII Dues and Other Dues/Memberships 18, % 18, % ,975 18, % 18, % ,975 Postage and Shipping 36, % 36, % (690) 37,286 36, % 36, % (690) 37,286 Interest 1, % 2, % (626) 577 1, % 2, % (626) 577 Bank Charges/Courier 61, % 64, % (2,890) 45,161 61, % 64, % (2,890) 45,161 Credit Card/Check Fees 79, % 80, % (1,447) 83,196 79, % 80, % (1,447) 83,196 Advertising/Printing/Subscriptions 26, % 56, % (29,646) 32,035 26, % 56, % (29,646) 32,035 Fundraising Events 10, % 10, % 428 1,134 10, % 10, % 428 1,134 Other 4, % 5, % (1,432) 6,473 4, % 5, % (1,432) 6,473

8 Month Ytd Goodwill & Goodwill & Foundation Foundation Unrestricted Foundation Elimination Combined Unrestricted Foundation Elimination Combined REVENUES Store Sales $6,319,120 6,319,120 $6,319,120 6,319,120 Salvage Sales 502, , , ,930 Workforce and Grants 134, , , ,718 Temporary Services 165, , , ,689 Fundraising Events 33,700 33,700 33,700 33,700 Contributions - Unrestricted 17,353 17,353 17,353 17,353 Contributions - Temporarily Restricted 160, , , ,644 Contributions from the Foundation Contributions - Capital Campaign Contributions from Unrestricted Interest and Other 1,432 91,567 92,999 1,432 91,567 92, TOTAL OPERATING REVENUE 7,318, ,920 7,427,153 7,318, ,920 7,427,153 EXCESS REVENUES (EXPENSES) 402, , , , , ,628 Depreciation - Assets Charge to Dept 266, , , ,387 CHANGE IN NET ASSETS 136, , , , , ,241 =============== ============ ============ ============ ============= ============= ============ =============== E/R 93.15% 93.15% GOODWILL INDUSTRIES OF HOUSTON and THE GOODWILL FOUNDATION COMBINED INCOME STATEMENT For the Month Ended January 31, EXPENSES Salaries and Wages 2,852,541 2,852,541 2,852,541 2,852,541 Wages - GTS Temps 103, , , ,883 Payroll Taxes 221, , , ,776 Workers Compensation 79,120 79,120 79,120 79,120 Pension and Retirement 26,015 26,015 26,015 26,015 Unemployment 27,864 27,864 27,864 27,864 Employee Insurance 175, , , ,361 Other Human Services Expense 6,178 6,178 6,178 6,178 Occupancy - Rent/Maint/Repairs/Security 2,243,085 2,243,085 2,243,085 2,243,085 Utilities 143, , , ,748 Insurance - General Liability 115, , , ,224 Telecom and Network 48,410 48,410 48,410 48,410 Legal/Audit/Other Professional Fees 146,440 2, , ,440 2, ,412 Supplies 104, , , ,957 Client Supportive Services 40,170 40,170 40,170 40,170 Vehicle Expense 71,643 71,643 71,643 71,643 Conferences/Training/Travel 22,360 22,360 22,360 22,360 Equipment and Software Rent/Maintenance 149, , , ,949 Trash Removal 98,516 98,516 98,516 98,516 GII Dues and Other Dues/Memberships 18,675 18,675 18,675 18,675 Postage and Shipping 36,059 36,059 36,059 36,059 Interest 1,540 1,540 1,540 1,540 Bank Charges/Courier 61,868 61,868 61,868 61,868 Credit Card/Check Fees 79,147 79,147 79,147 79,147 Advertising/Printing/Subscriptions 26,528 26,528 26,528 26,528 Fundraising Events 10,428 10,428 10,428 10,428 Contributions to Goodwill Unrestricted Contributions to the Foundation Other 4,068 4,068 4,068 4, TOTAL OPERATING EXPENSE 6,915,553 2,972 6,918,525 6,915,553 2,972 6,918,

9 GOODWILL STORE SALES Month of January 2013 to 2018 $6,120,404 $6,319,120 9 $7,000,000 $6,500,000 $6,000,000 $5,500,000 $5,305,702 $5,915,104 $5,000,000 $4,500,000 $4,000,000 $4,161,855 $4,533,901 $3,500, # of Stores:

10 DONATED GOODS EXPENSE TO REVENUE RATIO Years 2014 to 2017 and January % 85% 83% 79% 80% 10 75% 72% 70% 70% 65% 60%

11 MONTHLY AVERAGE SALES PER STORE For the Month of January All Stores $95,407 $96,352 $110,000 $100,000 $93,221 $102,653 $97, $90,000 $80,000 $70,000 $60,000 $50, # of Stores:

12 GOODWILL INDUSTRIES OF HOUSTON Same Store Sales - Month Ended January 31, 2018 and 2017 Month YTD January January Same Store January January Same Store Sales Incr Sales Incr. Humble Opened Mar 19, ,437 88, % 78,437 88, % 290 Opened Aug 05, ,079 81, % 87,079 81, % Tomball Opened Feb 21, ,001 78, % 88,001 78, % Town and Co. Opened Aug 01, , , % 118, , % West Oaks Opened Dec 13, ,824 92, % 74,824 92, % Nasa Opened Oct 01, , , % 121, , % Atascocita Opened Aug 07, , , % 116, , % Jones Opened Mar 16, ,271 60, % 66,271 60, % Galveston Opened Mar 01, ,334 98, % 96,334 98, % Champions Opened Feb 17, , , % 96, , % Katy Opened Aug 09, ,499 95, % 113,499 95, % Spring Opened Sep 01, ,486 95, % 80,486 95, % Missouri City Opened Nov 06, ,688 92, % 87,688 92, % Piney Point Opened Jul 01, , , % 130, , % 529 Opened Oct 21, , , % 131, , % Hwy. 6 Opened Nov 21, , , % 86, , % Conroe Opened Mar 14, , , % 131, , % River Oaks Opened May 28, , , % 196, , % Woodlands Opened Aug 08, , , % 118, , % Porter Opened Sep 15, , , % 123, , % Sabo Opened Nov 13, ,027 87, % 87,027 87, % Baytown Opened Dec 15, , , % 130, , % 249 Opened Dec 17, ,953 73, % 73,953 73, % Westheimer/ DA Opened Feb 05, ,506 95, % 92,506 95, % Meyerland Opened May 11, , , % 128, , % Louetta Opened Aug 13, ,515 92, % 93,515 92, % Victory Lakes Opened Aug 28, , , % 119, , % Fairmont Pkwy Opened Oct 28, , , % 92, , % 1960 Opened Nov 12, ,809 60, % 68,809 60, % West Road Opened Dec 11, ,489 63, % 65,489 63, % Saums Opened Dec 17, ,924 92, % 80,924 92, % Lakeshore Opened Dec 31, , , % 110, , % Crossing Opened May 27, ,667 72, % 67,667 72, % League City Opened Jul 26, ,867 86, % 89,867 86, % Uvalde Opened Dec 31, ,775 58, % 68,775 58, % Pasadena Opened Dec 13, ,123 75, % 80,123 75, % Texas City Opened Dec 30, ,515 96, % 99,515 96, % Heights Opened Feb 23, , , % 139, , % Clear Lake Opened Jul 31, , , % 117, , % Grant and Louetta Opened Aug 17, ,853 73, % 74,853 73, % Wilson Road Opened Sep 19, ,297 91, % 94,297 91, % Katy Ranch Opened Nov 26, , , % 125, , % Sealy Opened Mar 26, ,266 88, % 91,266 88, % Willis Opened Apr 14, ,345 76, % 94,345 76, % Huntsville Opened Sep 13, ,512 77, % 74,512 77, % Greenspoint Opened Dec 18, ,754 74, % 78,754 74, % I-10 Opened Feb 05, ,507 99, % 90,507 99, % Crosby Opened Sep 06, ,680 85, % 76,680 85, % Lake Jackson Opened Dec 15, , , % 100, , % 529 Opened Mar 31, ,308 86, % 91,308 86, % Gessner Opened May 04, ,360 77, % 86,360 77, % Willowchase Opened Jun 19, ,148 52, % 63,148 52, % Longmeadow Opened Jul 05, ,700 95, % 112,700 95, % Briargrove Opened Jul 25, ,269 81, % 80,269 81, % LaPorte Opened Aug 22, ,948 80, % 89,948 80, % Pearland Plaza Opened Sep 15, , , % 112, , % Long Point Opened Dec 09, ,603 68, % 81,603 68, % Fairfield Opened Dec 30, , , % 134, , % Reading Rd Opened Mar 07, ,314 77, % 73,314 77, % Greatwood Opened Apr 09, ,435 67, % 82,435 67, % Telfair Opened Jul 23, ,833 39, % 53,833 39, % Alvin Opened Nov 21, ,372 87, % 96,372 87, % Total 6,014,733 5,903, % 6,014,733 5,903, % 12

13 GOODWILL INDUSTRIES OF HOUSTON Same Store Net Income - Month Ended January 31, 2018 and 2017 Month YTD January January Same Store January January Same Store NI Inc(Dec) NI Inc(Dec) Humble Opened Mar 19, ,297 22, % 17,297 22, % 290 Opened Aug 05, ,807 13, % 19,807 13, % Tomball Opened Feb 21, ,276 21, % 24,276 21, % Town and Co. Opened Aug 01, ,921 49, % 52,921 49, % West Oaks Opened Dec 13, ,212 23, % 14,212 23, % Nasa Opened Oct 01, ,488 38, % 42,488 38, % Atascocita Opened Aug 07, ,216 48, % 50,216 48, % Jones Opened Mar16, , % 357 3, % Galveston Opened Mar 01, ,637 60, % 54,637 60, % Champions Opened Feb 17, ,557 18, % 24,557 18, % Katy Opened Aug 09, ,515 20, % 44,515 20, % Spring Opened Sep 01, ,811 28, % 10,811 28, % Missouri City Opened Nov 06, ,144 21, % 25,144 21, % Piney Point Opened Jul 01, ,288 53, % 66,288 53, % 529 Opened Oct 21, ,834 49, % 55,834 49, % Hwy. 6 Opened Nov 21, ,168 23, % 22,168 23, % Conroe Opened Mar 14, ,597 42, % 46,597 42, % River Oaks Opened May 28, ,089 96, % 108,089 96, % Woodlands Opened Aug 08, ,272 44, % 48,272 44, % Porter Opened Sep 15, ,017 43, % 33,017 43, % Sabo Opened Nov 13, ,552 20, % 39,552 20, % Baytown Opened Dec 15, ,587 49, % 64,587 49, % 249 Opened Dec 17, ,765 10, % 12,765 10, % Westheimer/ DA Opened Feb 05, ,864 24, % 30,864 24, % Meyerland Opened May 11, ,082 37, % 57,082 37, % Louetta Opened Aug 13, ,103 23, % 37,103 23, % Victory Lakes Opened Aug 28, ,348 77, % 54,348 77, % Fairmont Pkwy Opened Oct 28, ,591 39, % 27,591 39, % 1960 Opened Nov 12, ,575 (821) 413.6% 2,575 (821) 413.6% West Road Opened Dec 11, ,295 13, % 22,295 13, % Saums Opened Dec 17, ,953 35, % 24,953 35, % Lakeshore Opened Dec 31, ,498 41, % 51,498 41, % Crossing Opened May 27, ,671 15, % 14,671 15, % League City Opened July 26, ,317 28, % 38,317 28, % Uvalde Opened Dec 31, ,297 (2,372) 534.1% 10,297 (2,372) 534.1% Pasadena Opened Dec 13, ,737 17, % 26,737 17, % Texas City Opened Dec 30, ,446 16, % 23,446 16, % Heights Opened Feb 23, ,303 40, % 56,303 40, % Clear Lake Opened July 31, ,590 25, % 43,590 25, % Grant and Louetta Opened Aug 17, ,791 5, % 11,791 5, % Wilson Road Opened Sep 19, ,076 21, % 23,076 21, % Katy Ranch Opened Nov 26, ,779 55, % 57,779 55, % Sealy Opened Mar 26, ,221 41, % 43,221 41, % Willis Opened Apr 14, ,296 10, % 32,296 10, % Huntsville Opened Sep 13, ,340 7, % 5,340 7, % Greenspoint Opened Dec 18, ,856 9, % 8,856 9, % I-10 Opened Feb 05, ,293 25, % 24,293 25, % Crosby Opened Sep 06, ,749 18, % 15,749 18, % Lake Jackson Opened Dec 15, ,946 26, % 31,946 26, % 529 Opened Mar 31, ,456 5, % 19,456 5, % Gessner Opened May 04, 2015 (4,610) (14,537) 68.3% (4,610) (14,537) 68.3% Willowchase Opened Jun 19, 2015 (14,166) (28,380) 50.1% (14,166) (28,380) 50.1% Briargrove Opened July 25, ,262 5, % 103 (8,336) % Longmeadow Opened July 05, (8,336) 101.2% 22,262 5, % LaPorte Opened Aug 22, ,084 10, % 21,084 10, % Pearland Plaza Opened Sep 15, ,983 26, % 38,983 26, % Long Point Opened Dec 09, 2015 (5,554) (12,935) 57.1% (5,554) (12,935) 57.1% Fairfield Opened Dec 30, ,152 17, % 49,152 17, % Reading Road Opened Mar 07, 2016 (11,272) (15,303) 26.3% (11,272) (15,303) 26.3% Greatwood Opened Apr 09, 2016 (8,879) (24,696) 64.0% (8,879) (24,696) 64.0% Telfair Opened Jul 23, 2016 (26,965) (37,926) 28.9% (26,965) (37,926) 28.9% Alvin Opened Nov 21, ,037 (121) % 22,037 (121) % Total 1,756,055 1,381, % 1,756,055 1,381, % 13

14 Goodwill Industries of Houston Donations, Sales and Monthly Rent (Sorted by District) Month January 2018 District Store Store# Store Donors Store Donors Last Yr Store % Change vs Last Yr ADC Donors ADC Donors Last Yr ADC % Change vs Last Yr Total Donors Total Donors Last Yr % Change vs Last Yr Donors SqFt Sales Per SqFt Monthly Rent and CAMS Central Briargrove , % 2,440 2, % 3,415 3, % 4.00 $ $ 45, Central Gessner % 1,468 2, % 2,262 3, % 2.95 $ $ 46, Central Greatwood ,856 1, % % 2,850 2, % 3.68 $ $ 44, Central Hwy ,074 1, % 1,176 1, % 2,250 2, % 2.91 $ $ 35, Central Lake Jackson ,594 1, % % 2,923 2, % 3.53 $ $ 31, Central Lakeshore ,952 2, % 631 1, % 2,583 3, % 3.91 $ $ 23, Central Longmeadow ,066 1, % % 2,731 2, % 3.31 $ $ 46, Central Meyerland ,691 1, % 1,039 1, % 2,730 3, % 4.28 $ $ 25, Central Missouri City ,540 3, % % 2,540 3, % 3.81 $ $ 22, Central Piney Point ,662 2, % 1, % 3,211 2, % 4.83 $ $ 22, Central Reading Road ,203 1, % 516 1, % 1,719 2, % 2.18 $ $ 45, Central River Oaks ,232 2, % % 3,933 2, % 4.70 $ $ 29, Central Telfair % 339 1, % 1,085 2, % 1.37 $ $ 45, Central The Crossing , % 1,736 1, % 2,607 2, % 4.53 $ $ 23, Central WDA ,237 1, % 536 2, % 1,773 3, % 2.66 $ $ 27, Central West Oaks ,009 1, % 770 1, % 1,779 2, % 2.20 $ $ 27, North Atascocita ,602 2, % % 2,602 2, % 3.33 $ $ 27, North Champions ,288 1, % 1,705 1, % 2,993 2, % 3.71 $ $ 28, North Conroe ,084 2, % % 2,750 2, % 3.55 $ $ 32, North Crosby , % 2,492 1, % 3,283 2, % 4.16 $ $ 22, North Greenspoint % 750 2, % 1,197 2, % 1.53 $ $ 23, North Humble % 410 2, % 1,107 3, % 1.44 $ $ 18, North Huntsville ,391 1, % % 2,356 2, % 3.08 $ $ 26, North I45 & % 1,629 1, % 2,213 2, % 2.67 $ $ 27, North Kuykendahl & Louetta ,342 1, % % 3,052 2, % 3.99 $ $ 26, North Porter ,350 1, % 2,377 2, % 3,727 3, % 3.28 $ $ 41, North Spring ,518 1, % 602 1, % 2,120 2, % 2.89 $ $ 26, North Tomball ,930 2, % 927 1, % 2,857 3, % 3.62 $ $ 20, North Uvalde % 2,409 1, % 2,817 1, % 3.89 $ $ 22, North Willis ,540 1, % 1, % 2,748 2, % 3.81 $ $ 24, North Wilson Road ,424 1, % % 2,177 2, % 2.95 $ $ 30, North Woodlands ,774 3, % % 3,823 3, % 5.03 $ $ 24, South Alvin ,412 1, % 2,275 1, % 3,687 2, % 4.68 $ $ 37, South Baytown ,122 2, % 1,901 1, % 4,023 3, % 5.38 $ $ 23, South Clear Lake ,962 3, % % 2,962 3, % 3.88 $ $ 25, South Fairmont ,852 1, % 772 2, % 2,624 4, % 4.01 $ $ 25, South Galveston ,643 1, % % 2,144 2, % 2.99 $ $ - South I-10 East % 1,799 2, % 2,321 2, % 2.58 $ $ 28, South La Porte , % 1,226 1, % 2,262 2, % 2.80 $ $ 32, South League City ,189 1, % 788 1, % 1,977 2, % 2.71 $ $ 15, South Nasa ,374 1, % 1,258 1, % 2,632 2, % 3.55 $ $ 25, South Pasadena % 1,813 1, % 2,452 2, % 3.81 $ $ 20, South Pearland Plaza ,850 2, % - 1, % 2,850 4, % 3.23 $ $ 30, South Sabo ,588 1, % 1, % 3,087 1, % 3.39 $ $ 24, South Texas City ,257 1, % 483 1, % 1,740 2, % 2.11 $ $ 26, South Victory Lakes ,870 2, % 380 1, % 2,250 3, % 3.28 $ $ 24, West % 1,968 2, % 2,813 3, % 4.18 $ $ 31, West ,853 3, % % 2,863 3, % 3.61 $ $ 35, West 249 & Louetta ,978 1, % % 2,712 2, % 3.78 $ $ 30, West Brenham % % % 1.26 $ $ 38, West Fairfield ,175 2, % % 3,175 2, % 3.91 $ $ 44, West Fry & , % 1,790 1, % 2,782 2, % 3.40 $ $ 43, West Fry & Saums ,470 1, % 199 1, % 1,669 2, % 2.64 $ $ 23, West Grant & Louetta ,049 2, % % 2,049 2, % 2.89 $ $ 32, West Heights ,938 2, % 1,268 2, % 4,206 4, % 5.61 $ $ 33, West Jones ,262 1, % 535 1, % 1,797 2, % 2.00 $ $ 27, West Katy ,266 3, % % 2,839 3, % 3.61 $ $ 28, West Katy Ranch ,591 2, % % 3,528 3, % 4.46 $ $ 32, West Long Point % 2,225 2, % 2,835 2, % 3.35 $ $ 44, West Sealy , % 767 2, % 1,755 3, % 2.39 $ $ 16, West Town and Country ,706 3, % % 2,706 3, % 5.69 $ $ 19, West West Rd ,287 1, % 1, % 2,333 2, % 3.15 $ $ 20, West Willowchase % 677 1, % 1,576 2, % 2.02 $ $ 42,

15 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 YTD REVENUES Store Sales $5,728,861 $6,482,628 $5,718,887 $5,734,333 $5,491,154 $5,704,881 $4,973,403 $5,853,006 $6,621,378 $6,137,348 $6,331,452 $6,319,120 $71,096,451 Salvage Sales 326, , , , , , , , , , , ,930 4,590,610 Workforce and Grants 265, , , , , , , , , ,925 92, ,437 2,402,713 Temporary Services 194, , , , , , , , , , , ,689 2,453,811 Fundraising Events 65,545 33, , ,672 32,715 13,820 45,438 5,000 6,500 33, ,613 Investment and Other , ,235 43, ,432 51,704 TOTAL OPERATING REVENUE 6,516,950 7,391,173 6,435,547 6,588,217 6,278,842 6,486,426 5,829,748 6,742,062 7,464,697 6,999,739 7,088,193 7,160,308 80,981,902 TOTAL OPERATING EXPENSE 6,745,494 6,955,901 6,425,049 6,742,092 6,556,849 6,480,184 6,720,423 6,496,253 6,993,289 6,800,147 6,967,317 6,915,554 80,798,552 Excess Revenue/(Expense) Before Contributions and Depreciation (228,544) 435,272 10,498 (153,875) (278,007) 6,242 (890,675) 245, , , , , ,350 Goodwill Industries of Houston 12 Month Rolling Monthly Financial Statements - February January 2018 EXPENSES Salaries and Wages 2,617,478 2,716,984 2,525,037 2,512,889 2,387,488 2,453,536 2,590,341 2,442,162 2,657,578 2,663,025 2,868,887 2,852,541 31,287,946 Wages - GTS Temps 128, , , , , , , , , , , ,883 1,591,492 Payroll Taxes 204, , , , , , , , , , , ,776 2,425,993 Workers Compensation 80,412 85,368 78,630 79,431 76,305 (2,453) 80,839 77,183 84,529 67,473 80,766 79, ,603 Pension and Retirement 36,058 40,972 37,528 37,982 35,379 35,684 39,317 36,333 40,790 (83,115) 26, ,943 Unemployment 26,398 29,701 27,577 26,444 25,167 23,952 28,045 25,676 28,893 27,834 27,060 27, ,611 Employee Insurance 269, , , , , , , , , , , ,361 2,494,698 Other Human Services Expense 5,599 3,922 4,723 3,680 2,981 2,978 2,453 2,609 4,049 4,299 5,746 6,178 49,217 Occupancy - Rent/Maint/Repairs/Security 2,167,235 2,180,006 2,135,600 2,219,124 2,202,450 2,237,875 2,253,830 2,272,533 2,252,403 2,242,121 2,235,335 2,243,085 26,641,597 Utilities 127, , , , , , , , , , , ,748 1,849,995 Insurance - General Liability 157, , , , , , , , , , , ,224 1,436,644 Telecom and Network 52,284 59,082 54,568 56,839 52,859 54,958 53,965 51,450 55,811 52,619 50,232 48, ,077 Legal/Audit/Other Professional Fees 122, , , , , , , , , , , ,440 1,647,819 Supplies 116, ,890 93, , , , ,090 51, , , , ,958 1,396,723 Client Supportive Services 45,243 41,375 45,274 50,048 47,258 60,459 70,069 33,749 47,234 1,763 (223) 40, ,419 Vehicle Expense 60,167 64,711 67,004 67,023 61,295 68,990 63,878 75,189 72,121 62,223 83,239 71, ,483 Conferences/Training/Travel 11,919 16,778 11,444 7,682 13,471 17,662 13,725 13,779 30,476 22,878 33,470 22, ,644 Equipment and Software Maintenance 151, , , , , , , , , , , ,949 1,795,646 Trash Removal 85,683 83, ,512 90,976 99,617 98, ,407 96,838 98, ,987 90,480 98,516 1,175,354 GII Dues and Other Dues/Memberships 16,595 16,368 16,112 16,626 17,420 16,832 17,143 17,598 23,911 17,096 17,353 18, ,729 Postage and Shipping 30,334 35,894 25,022 31,237 39,450 35,152 42,901 34,417 36,362 36,362 39,983 36, ,173 Interest 393 1,511 1, ,891 2,984 3,009 2,303 6,963 4,788 2,020 1,540 31,582 Bank Charges/Courier 61,662 80,359 55,233 45,798 56,272 60,739 67,546 73,527 69,812 69,725 64,479 61, ,020 Credit Card/Check Fees 81,521 77,100 81,624 82,471 78,796 76,322 77,607 69,749 79,301 86,375 84,644 79, ,657 Advertising/Printing/Subscriptions 83,302 53,536 56,438 55,350 51,472 86,430 16,403 33,226 47,344 61,185 74,942 26, ,156 Fundraising Events 803 2,291 76,381 16, ,718 26,236 35,769 5,563 10, ,037 Other 4,854 6,821 3,056 15, ,294 2,248 1,455 44,679 14,065 46,578 4, ,294 15

16 FYE FYE FYE FYE FYE FYE January January Benchmark Store Sales 46,209,538 54,428,333 59,762,563 66,808,166 72,681,059 70,899,238 6,120,404 6,319,120 as a % of total revenues 82.3% 81.0% 83.3% 86.3% 87.3% 87.8% 88.2% 88.3% 85.0% Number of Stores Total Revenues 56,161,658 67,220,580 71,716,821 77,404,801 83,219,512 80,760,487 6,937,389 7,157,189 Salaries and Wages 21,811,831 24,918,400 26,505,777 30,678,146 33,845,919 32,906,100 2,983,087 2,956,424 as a % of total revenues 38.8% 37.1% 37.0% 39.6% 40.7% 40.7% 43.0% 41.3% 38.0% Employee Insurance 766,958 1,189,799 2,463,476 3,658,517 3,511,610 2,614, , ,361 as a % of total revenues 1.4% 1.8% 3.4% 4.7% 4.2% 3.2% 4.3% 2.5% 4.0% Health Ins. enrollees on the last day of the year/month Net Income before Depreciation and Contributions 6,099,306 8,358,822 6,176,286 2,439, ,705 ( 138,154 ) ( 78,254 ) 242,036 as a % of total revenues 10.9% 12.4% 8.6% 3.2% 0.9% -0.2% -1.1% 3.4% 4.0% Donated Goods Expenses/Revenues 73.0% 72.0% 72.0% 76.0% 79.0% 83.0% 83.0% 84.9% 72-76% Mission Support 851,332 1,235,568 1,654,982 1,712,858 1,553, , , ,070 1,000,000 Donations 1,219,690 1,340,250 1,402,453 1,541,970 1,741,263 1,773, , ,805 Donations per square foot Sales per square foot Same Store Sales - Increase (Decrease) 11.7% 6.6% 5.1% 2.6% -2.2% -6.2% -0.8% 1.9% 3.0% Goodwill Houston Metrics Years 2012 to 2017 and January 2017 and Occupancy - Rent/Maint/Repairs/Security 13,466,836 15,187,229 17,717,741 21,912,001 24,849,467 26,517,571 2,119,059 2,243,085 as a % of total revenues 24.0% 22.6% 24.7% 28.3% 29.9% 32.8% 30.5% 31.3% 30.0% Rents 9,908,814 11,005,999 12,677,788 15,550,489 17,924,313 18,704,338 1,533,593 1,567,736 Cams 3,046,194 3,422,715 4,195,357 5,318,779 5,727,617 6,364, , ,872 Total Operating Expenses 50,062,352 58,861,758 65,540,535 74,965,537 82,459,807 80,898,641 7,015,643 6,915,553 as a % of total revenues 89.1% 87.6% 91.4% 96.8% 99.1% 100.2% 101.1% 96.6% 96.0%