Stoc ockhold olders Pres esentation ion Stoc tockh kholde - PowerPoint PPT Presentation

Stoc ockhold olders Pres esentation ion

Stoc tockh kholde lders s Who Warren Buffet Prese Presenta tatio ion What Where When Why How

Stoc ockhold olders Pres esentation ion  PURPOSE • Demonstrate what has been learned • Become familiar with financial statements. • Prepare, present, and explain financial statements. • Present related information, including charts and graphs. • To allow all company members to participate in a formal rehearsed presentation.  IMPORTANCE • Recognition of effort. • Counts as one fourth of top company score.

Stoc ockhold olders Pres esentation ion COMPETITION AND SETTING  ONE ROOM • Companies will rotate into room • Fifteen minutes total • Three minutes for setup/take down • Twelve minute presentation  TWELVE MINUTE PRESENTATION • Present twelfth quarter decision to judges • Present financial statements • Management discussion and analysis • Two minutes for questions ONLY MATERIALS SUPPLIED BY PFEW MAY BE USED IN THE PRESENTATION

Stoc ockhold olders Pres esentation ion PANEL OF JUDGES REPRESENT THE STOCKHOLDERS MANDATORY CONTENT 1) Financial Statements 2) Management’s Discussion and Analysis 3) Judges’ Questions

Stoc ockhold olders Pres esentation ion FINANCIAL STATEMENTS  Presentation must include: 1. A two-year (8 consecutive quarters) comparative Statement of Income & Profits Retained 2. Balance Sheet (also two-year comparative)

Stoc ockhold olders Pres esentation ion FINANCIAL STATEMENTS  STATEMENT OF INCOME & PROFITS RETAINED • Year to year or two-year comparative • 8 consecutive operating quarters • Measurement over a fiscal operating period • Total income • Total expenses • Profit before taxes • Taxes • Net income • Dividends • Profits Retained

Widget Manufacturing Company Statement of Income & Profits Retained For the Year Ended December 31, 2018 Quarter 0 Example INCOME 2018 2017 %Chg -6.7% Sales $1,190,000 $1,276,000 Cost of Goods Sold -595,000 -637,000 -6.6% Gross Margin $595,000 $639,000 -6.9% -100% Interest Income 0 2,000 -7.2% Total Income $595,000 $641,000 EXPENSES -29.4% Quality & Product Dvlp. $60,000 $85,000 0.0% Selling/Adv. & Mkt. Research 95,000 95,000 Warehousing (Inventory Exp.) 23,000 29,000 -20.7% Interest Expense 28,000 27,000 3.7% 0.0% Other Expense 0 0 Overhead Expense 200,000 200,000 0.0% Depreciation 65,000 64,000 1.6% Total Expenses $471,000 $500,000 -5.8% Profit Before Taxes $124,000 $141,000 -12.1% Taxes -50,000 -56,000 -10.7% Net Income (Loss) $74,000 $85,000 -12.9% 0.0% Dividends -$5,000 -$5,000 Profits Retained $69,000 $80,000 -13.8%

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Stoc ockhold olders Pres esentation ion FINANCIAL STATEMENTS  BALANCE SHEET • Year to year or two-year comparative • Qtr 4 of Year 1 and Qtr 4 of Year 2 • Corporate snapshot in time • Assets • Liabilities • Stockholder’s Equity

Balance Sheet • Shows the assets of the corporation, its liabilities, and the owner’s equity • Portrays the financial position as of the date stated in the heading of the statement • Observe that Total Assets equal the Total of Liabilities and Equity Example ……….

Widget Manufacturing Company Balance Sheet As of December 31, 2018 Quarter 0 Example ASSETS 2018 2017 %Chg 112.77% Cash $100,000 $47,000 Inventory $68,000 $56,000 21.43% 63.11% Total Current Assets $168,000 $103,000 FIXED ASSETS 0.23% Plant and Equip. (at cost) $2,165,000 $2,160,000 1.56% Accumulated Depreciation $- 65,000 $-64,000 0.19% Net Plant and Equipment $2,100,000 $2,096,000 TOTAL ASSETS $2,268,000 $2,199,000 3.14% LIABILITIES 0.0% Loan Payable $1,100,000 $1,100,000 0.0% Total Liabilities $1,100,000 $1,100,000 EQUITY 0.0% Common Stock $1,000,000 $1,000,000 Retained Earnings $168,000 $99,000 69.70% Total Equity $1,168,000 $1,099,000 6.28% TOTAL LIABILITIES AND EQUITY $2,268,000 $2,199,000 3.14%

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Stoc ockhold olders Pres esentation ion Management Discussion and Analysis  Liquidity  Capital Resources  Results of Operations  Common Stock Analysis  Forward Looking Data

Stoc ockhold olders Pres esentation ion  Liquidity – adequacy of cash: • Did the company have enough cash to continue operations? • Did it borrow money to operate or invest in a new plant? + =

Stoc ockhold olders Pres esentation ion  Capital Resources: • Discuss plant facilities • Expansion during the period • Financing of these assets… • Did you borrow money to acquire the assets?

Stoc ockhold olders Pres esentation ion  Results of Operations: 1. Analysis of revenue and changes in revenue. 2. Trends that affected revenue or expenses, i.e. inflation. 3. The extent to which increases in net sales or revenues are attributable to price increases, or an increase in the number of units sold. 4. The effect of inflation on the sales and net income of the company.

Stoc ockhold olders Pres esentation ion  Results of Operations (cont.): 5. The level of production, i.e. 100% of capacity or less, and its effect on cost of production and net profit. 6. Spending for research and development and advertising 7. Unusual or significant events which affected or could affect operations.

Stoc ockhold olders Pres esentation ion  Common Stock Analysis: Your Company’s Stock (40,000 shares) • Return on Equity (ROE) • Earnings Per Share (EPS) • Stock Price • Dividend Policy

Stoc ockhold olders Pres esentation ion  Forw ard Looking Data • What do you see as the future of the company? • This could include plans for new products, new facilities, or acquisitions. Remember!! Submit a copy of your 12 th Quarter decision to the judges.

Stoc ockhold olders Pres esentation ion SUPPLEMENTAL CHARTS & GRAPHS Widget Manufacturing Company Widget Manufacturing Company 120 100 80 60 40 20 0 1 2 3 4 5 6 7 8 1 2 3 4 1 2 3 4 Line Graph Pie Chart Widget Manufacturing Company Widget Manufacturing Company 120 120 100 100 80 80 60 60 40 40 20 20 0 0 1 2 3 4 5 6 7 8 1 1 2 3 4 1 2 3 4 2 3 4 5 6 7 8 1 2 3 4 1 2 3 4 Bar Graph Comparative Bar Graph Note: Do not show Quarters 1 thru 8 on your Graphs. Show Year 1 with Quarters 1,2,3,4 Year 2 with Quarters 1,2,3,4

Stoc ockhold olders Pres esentation ion Judges’ Questions: • Designed to measure ability and understanding of the management team • Allow at least two minutes • Standard set of questions • Anything from the presentation • Questions answered during management discussion and analysis

Company Historians VERY important parts of the team!

Tools to help you succeed: • Stockholder’s Presentation Guidelines (will be handed out by your CA) Will outline EXACTLY what the judges are looking for and mandatory content. • Glossary Of Terms (in your backpacks) Explanation of important business terminology. Judges will be listening to hear if you are using these terms during your Friday Stockholder’s presentation. • A link to this presentation Can be found on the PFEW Program Page in your classrooms. • Tuesday night bonus review session Two company members will be able to ask specific questions.

Stoc ockhold olders Pres esentation ion TOP TEN THINGS TO DO! 10. Involve as many company members as you can 9. Have presentation support your stated strategy 8. Make eye contact 7. Use business vocabulary 6. Submit your 12 th quarter decision 5. Save your financial statements to your flash drive – upload your copy online 4. Allow time for questions 3. Time the presentation 2. Practice, Practice, Practice 1. Start early (today)!!

Stoc ockhold olders Pres esentation ion TOP TEN THINGS NOT TO DO! 10. Make up data 9. Involve only one or two company members 8. Forget the 12 th quarter decision 7. Forget to time the presentation 6. Forget your flash drive or have financials that don’t balance! 5. Use unauthorized materials 4. Discuss a strategy not supported by operations 3. Rehearse past 10:45 p.m. 2. Wing it 1. Wait until Thursday to start