Wheels Donald Tabor Drew Garvie Darcy McHugh Adam Olsen

Performance Overview (2018) Sales:$13,298,680 COGS:$7,076,874 Units Sold (Total): 24,024 units 1)Mountain: 21,056 units at $709 2)Road: 2,968 units at $1650 Expenses: $3,177,017 Profit:$2,311,740 Shareholder Value: $23.56 Earnings Per Share: $2.31

Pricing and Quality Strategy Pricing: 1)Mountain Price Point: Mid-Low, $709 2)Road Price Point: Mid, $1600 Quality: Low quality rating compared to other firms

Financial Analysis Sales have underperformed industry - Sales increased from COGS remained consistent over time (Avg. 56.3% of sales) Expenses have increased over time, sales revenue increased as well Profit after tax of just over 2.3 million (2018) - approximately 1.5 million below the industry average

Financial Analysis Sales increased 83.6% between % decline moving into % decrease in COGS from

Financial Analysis was our best year in terms of firm performance $18.8 million in sales $10.9 million COGS Gross margin of $7.8 million Net Income of $3.5 million

I/S Vertical Analysis Slight decrease in COGS over time Gross margin increased over time Net income increased over time

I/S Vertical Analysis The cost of goods sold in 2018 in relation to sales (53%) has decreased from that of 2017 (57%) COGS is slightly higher than the industry average of 52%. Gross Margin has increased over the last five years to 47% of sales, just above the industry average of 45%. Net Income went down from 19% of sales in 2017 to 17% which is on par with the industry average.

I/S Horizontal Analysis Growth in revenue from Decrease in sales revenue in 2018

I/S Horizontal Analysis Wheels experienced growth in sales revenue, COGS and net income In 2018 management decisions lead to a decline in sales revenue and net income Reason for decline: -Excess inventory -Did not reach forecasted sales for our road bicycle

Wheels: Ratio Analysis (2018) Current Ratio: Inventory at year end was high -$12.4 million in cash during this period ensures day-to-day operating costs are covered Debt-to-Owner’s Equity: Low debt-to-equity ratio, low risk firm to invest in Return on Sales Return on sales is undesirable

High Low Youth Mountain Road NAMKS - $1,700 RideIt. - $1,600 Mac Wheels - $1,550 *Wheels - $1600 2WD - $820 2WD - $425 Mac Wheels - $380 Pedalz - $385 Pedalz - $720 RideIt. - $720 *Wheels - $709 NAMKS - $700 Mac Wheels - $695 Cycle Solutions - $675