corporate annual report yr 20

7/29/2019 Corporate Annual Report YR 20

http://slidepdf.com/reader/full/corporate-annual-report-yr-20 1/21

Courtney Marous ∞ Danielle Frasier ∞ Eve Sanders Halley


http://slidepdf.com/reader/full/corporate-annual-report-yr-20 3/21Jane Athletics Corporate Annual Report - 3



That’s what we like to do. In the world of commercial risk assessment the stakes are high

and like so many of our competitors if you do not forge ahead or commit to a plan of action

you will be left behind. Especially for a company like ours, our ideals and social responsibility

are what drive us. This is what also makes us unique but vulnerable. To prevent pitfalls and/or

financial ruin we have created a body of work protected by principles and upper management.We do not have rogue executives or accountants that risk company assets; instead we strive

for balance and self-improvement.

First, abroad and state-side our financing is 100% internal. Immediately after year three of our

existence as a true corporation we paid off the bank, ensuring our financial credibility. Any

extra income we needed to accrue came from selling stock but after year four we were making

enough money to expand ourselves with our own profits and begin to repurchase stocks to

drive up our earnings per share and return on equity.

To combat exchange risk we purchased a facility in Europe (alongside our existing NorthAmerican and Asia-Pacific plants) and focused most of our inventories to the areas that they

were made in. The only exception we encountered was in Latin America were we shipped all

of our shoe inventories purely for risk aversion to overbearing regulations on foreign facility

management and also potential asset expropriation. That was one of the hardest decisions we

had to make concerning our Latin American expansion but in the future we hope to work with

national and local governments more to create a facility someday.

In terms of concern for our market share and future revenues we completely trust the quality

of our product, our advertising sponsorship, celebrity endorsements, and word of mouth to doall the talking for us. As our CEO Jane Joplin pointed out, we do not sell a product that we

ourselves would not believe in, let alone buy. Our retailers love our support and promote our

products, driving up our demand exponentially from year to year. We never stop working to

fight that demand plateau. Even if that day comes we will never stop being creative and

innovative to the products we whole-heartedly believe in.



Year 18 Year 19 Year 20

Year Ended May 31st

Net Revenues from Footwear Sales (In $ Millions)

North-America 132,552 164,804 183,807

Europe-Africa 91,934 106,764 118,074

Asia-Pacific 115,232 124,303 134,285

Latin America 140,195 130,449 160,824

Operating Profit/Loss

North-America Plant 27,838 46,506 52,106

Europe-Africa Plant 22,037 28,782 31,183

Asia-Pacific Plant 36,167 38,738 35,128

Latin America Plant 24,128 20,645 27,892

Net Profit/Loss

Internet 2,003 1,551 1,827

Wholesale 6,377 6,001 7,453

Private-Label 1,141 1,455 1,682

TOTAL 9,521 9,007 10,962

Interest Income (Expenses) 2101 1476 925

Other Income (Expenses) 297 -2,693 -2,906

Pre-Tax Profit (Loss) 112,568 133,454 143,328

Income Taxes 33,770 40,036 42,998

Net Profit (Loss) 78,798 93,418 100,330

At May 31

Total Assets 461,466 496,199 480,458

Total Liabilities 24,521 26,327 29,287

Total Shareholder Equity 436,945 469,872 451,171

Return on Average Equity 18.30% 20.60% 21.80%

Financial Ratios

EPS $7.42 $9.18 $10.59

Dividends Per Share $0.75 $0.76 $0.90

Return On Avg. Equity 18.8% 20.60% 21.80%

Interest Coverage 100 100 100

Debt-To-Assets Ratio 0 0 0

Current Ratio 9.21 9.41 8.65

Free Cash Flow 90,584 106,775 114,590



Operating Profit/Loss

North-America Plant 27,838 46,506 18,668 52,106 5,600

Europe-Africa Plant 22,037 28,782 6,745 31,183 2,401

Asia-Pacific Plant 36,167 38,738 2,571 35,128 -3,610

Latin America Plant 24,128 20,645 -3,483 27,892 7,247

North America

We expanded production in the North American plant through increasing capacity and

substantially investing in better work practices, quality control and superior materials and

processes. As a result, our worker productivity increased substantially in year 20. Additionally

our total manufacturing costs in both the branded and private labels decreased $0.31 per pair

of shoes.

Europe-Africa

Our decisions regarding the Europe-Africa plant unfolded in a similar manner as the NorthAmerican plant. Large investments were made to increase productivity and lower costs while

achieving a higher quality in both product and practices. Total manufacturing costs in branded

footwear decreased $1.39 per pair. No private label exists in this region.

Asia-Pacific

In regards to the Asia-Pacific plant, we were inclined to maintain the current operations. While

we invested less in this plant in comparison to North America or Europe-Africa, worker

productivity continued to increase and total manufacturing costs in the private labe

decreased $0.13 per pair.

Latin America

Due to fluctuating exchange rates, protectionist policies and unstable market conditions, Jane

Athletics does not produce in Latin America. We do however sell and continue marketing our

products to Latin America through branded, wholesale, Internet and private labels.

corporate annual report yr 20

Documents