RTS Andrews
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Transcript of RTS Andrews
Company AndrewsC61400
Quarterly MeetingApril 30th, 2014
Executives:Randi Camhi, Greg Haller,
Liz Rotiroti, Brittany Manski, Asiana Gilchrist
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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
4
Company Andrews is a Low Risk, Strong Buy for Investors
• Low risk factors provide confidence to management, consumers, and shareholders
- Strategy- Mission Statement- SWOT- Porter’s Five Forces
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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
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Our Mission
“Premium products for the industry.Our brands withstand the test of
time”
www.capsim.com
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Porter’s Five Forces
Competitive Rivalry
within the Industry
Bargaining power of
Customers
Threat of New
Entrants
Threat of Substitute Products
Bargaining power of Suppliers
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SWOT AnalysisStrengths (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
9www.capsim.com
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Weaknesses (Internal factors)
-High cost to produce
- R&D funds (expensive to modify
product)
- Cost of constant marketing funds
www.capsim.com
11www.capsim.com
12www.capsim.com
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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
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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
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Profit Margin
1 2 3 4 5 6 7 8
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
5.30%
8.60%
11.40% 11.60%
Profit Margin
Andrews
Digby
Erie
Year
16
Return on Equity
1 2 3 4 5 6 7 8
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
11.8%
23.4%
28.8%
18.3%
Return on Equity
AndrewsDigbyErie
Year
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Easy and Accessible Financing
Andrews Baldwin Chester Digby Erie0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Amount of Cash on Hand, Round 8
$
Companies in Industry
$96,626
Bond Rating: AAA CC DDD A AAwww.capsim.com
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Company Andrews is a Low Risk, Strong Buy for Investors
• Low risk factors provide confidence to management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising future
19
Company Andrews is a Low Risk, Strong Buy for Investors
• Low risk factors provide confidence to management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising future– Sales Growth– Contribution Margin– Production Capacity– Future Plans
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Annual Sales
1 2 3 4 5 6 7 8 9 10 11 12 130
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Year
Dolla
rs*
($)
* Dollar value in thousands
15% average growth
www.capsim.com
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Contribution Margin
1 2 3 4 5 6 7 8 90%5%
10%15%20%25%30%35%40%
Andrews Industry Average
Year
CM % TQM Cost Reductions:
Direct Labor: 13.94 % Direct Materials: 11.35%
31%
www.capsim.com
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Value for YOU
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
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Year 8 Production Capacity
Erie
Digby
Andrews
0 5000 10000 15000 20000 25000
Capacity Analysis (w/2nd Shift)
Production
Capacity
Units (Thousands)
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Future Plans
• Competitive Pricing– Capture additional market share
• TQM Investments– Administration Expenses
• Improve Forecast Accuracy– Reduce inventory
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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
26
Questions?