RTS Andrews

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Transcript of RTS Andrews

  • 1. Company Andrews C61400 Quarterly Meeting April 30th, 2014 Executives: Randi Camhi, Greg Haller, Liz Rotiroti, Brittany Manski, Asiana Gilchrist

2. Company Andrews is a Low Risk, Strong Buy for Investors Low risk factors provide confidence to management, consumers, and shareholders Strong financials lead to secured profitability Company strengths provide for a promising future 3 3. Company Andrews is a Low Risk, Strong Buy for Investors Low risk factors provide confidence to management, consumers, and shareholders - Strategy - Mission Statement - SWOT - Porters Five Forces 4 4. Broad Differentiator Strategy Maintain a presence in all segments of the sensor market Competitive advantage gained by distinguishing products with excellent design, high awareness, and easy accessibility R&D capability to keep designs fresh and exciting Improved size and performance Prices are above average www.capsim.com 5 5. Our Mission Premium products for the industry. Our brands withstand the test of time www.capsim.com 6 6. Porters Five Forces 7 Competitive Rivalry within the Industry Bargaining power of Customers Threat of New Entrants Threat of Substitute Products Bargaining power of Suppliers 7. SWOT Analysis Strengths (Internal factors) Weaknesses (Internal factors) - High contribution margin - Low age of product - High performance of product - High product accessibility -Among current market leaders -Strong financial position -High cost to produce - R&D funds (expensive to modify product) - Cost of constant marketing funds Opportunities (External factors) Threats (External factors) -High industry growth rate -Market is available for capture -Customers are willing to pay for quality -Potential market share of competitors -Competitors price cutting unexpectedly www.capsim.com 8 8. www.capsim.com 9 9. Weaknesses (Internal factors) -High cost to produce - R&D funds (expensive to modify product) - Cost of constant marketing funds www.capsim.com 10 10. www.capsim.com 11 11. www.capsim.com 12 12. Company Andrews is a Low Risk, Strong Buy for Investors Low risk factors provide confidence to management, consumers, and shareholders Strong financials lead to secured profitability Company strengths provide for a promising future 13 13. Company Andrews is a Low Risk, Strong Buy for Investors Low risk factors provide confidence to management, consumers, and shareholders Strong financials lead to secured profitability -Profit Margin -Return on Equity -Cash on Hand 14 14. Profit Margin 15 5.30% 8.60% 11.40% 11.60% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 1 2 3 4 5 6 7 8 Year Profit Margin Andrews Digby Erie 15. Return on Equity 16 11.8% 23.4% 28.8% 18.3% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 1 2 3 4 5 6 7 8 Year Return on Equity Andrews Digby Erie 16. Easy and Accessible Financing 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Andrews Baldwin Chester Digby Erie Amount of Cash on Hand, Round 8 $ Companies in Industry $96,626 Bond Rating: AAA CC DDD A AA www.capsim.com 17 17. Company Andrews is a Low Risk, Strong Buy for Investors Low risk factors provide confidence to management, consumers, and shareholders Strong financials lead to secured profitability Company strengths provide for a promising future 18 18. Company Andrews is a Low Risk, Strong Buy for Investors Low risk factors provide confidence to management, consumers, and shareholders Strong financials lead to secured profitability Company strengths provide for a promising future Sales Growth Contribution Margin Production Capacity Future Plans 19 19. Annual Sales 20 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 1 2 3 4 5 6 7 8 9 10 11 12 13 Dollars*($) Year* Dollar value in thousands 15% average growth www.capsim.com 20. Contribution Margin 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 2 3 4 5 6 7 8 9 Andrews Industry Average Year CM% TQM Cost Reductions: Direct Labor: 13.94 % Direct Materials: 11.35% 31% www.capsim.com 21 21. Value for YOU 22 Many users of financial statements, including investors, want to know what is the value of the firm? Value for shareholders is the income from operating and financing activities Andrews Baldwin Digby Operating $79,651 $51,523 $70,552 Financing 0 (48,495) 0 Value $79,651 $3,028 $70,552 www.highered.mcgraw-hill.com 22. Year 8 Production Capacity 23 0 5000 10000 15000 20000 25000 Erie Digby Andrews Units (Thousands) Capacity Analysis (w/2nd Shift) Production Capacity 23. Future Plans Competitive Pricing Capture additional market share TQM Investments Administration Expenses Improve Forecast Accuracy Reduce inventory 24 24. Company Andrews is a Low Risk, Strong Buy for Investors Low risk factors provide confidence to management, consumers, and shareholders Strong financials lead to secured profitability Company strengths provide for a promising future 25 25. Questions? 26