Company Research Company Selection 1. What company did you choose (give your company’s complete name)? 2. What internet sites were used to get your company’s information? 3. What is the company’s...

The Annual Report Project
    The Annual Report Project
    2012
The Annual Report Project-
Financial Statement Analysis
Part 1
Goldey-Beacom College
Company Research
Company Selection
1. What company did you choose (give your company’s complete name)?
Answer: The Name of Company is Bob Evans Farm Inc
2. What internet sites were used to get your company’s information?
Answer: I used the official website of the company that is http://www.bobevans.com/
3. What is the company’s headquarter’s address?
Answer: 3776, South High Street, Columbus, Ohio, USA - 43207
4. Why did you select this particular company?
Answer: Company is a leading full service dinning and restaurant firm in the USA and also it produces and sells many other food items. Because of its positions and operation I chose this company for the study.
5. Where is the company incorporated?
Answer: Company has been incorporated in the state of Delaware, the USA.
Company Profile
1. What is the nature of the company’s business? Are they a manufacturer or merchandiser?
Answer: Bob Evans is full service restaurant and dining company in the United States with its headquarters in Delaware. It offers premium dining and restaurant services to its customers through a number of restaurants under various brands. Apart from the dinning and restaurant business, it also produces pork sausage and complementary home-style convenience food items. From the above description it is clear that company is engaged in manufacturing activities. So the company is a manufacturer and seller of various products.
2. What is the company’s industry?
Answer: company operates in convenient foods and dinning industry.
3. What is the SIC - Standard Industrial Classification Code for your company? What is the NAICS Code?
Answer:
SIC Code – 2013
NAICS – 311612
4. What are the primary products/ brands of the company?
Answer: company primary products are the dinning services and it operates in business with two distinct concepts branded Bob Evans Restaurants and Mimi’s Cafes. Besides these two brands company has many other brands like BE Mail, Bob Evans, Bob Evans Special Touch, Best Brand Builders, Mimi’s, Owens, Bob Evans Oven Bake, and Taste of the Farm, Farm Fresh Goodness, Come Enjoy a Taste of France, Just Enough, and SWH Custom Foods.
5. Who are the primary customers of the company?
Answer: Common people who want to enjoy the best dining experience are the primary customers of the company.
6. Corporations experience many wide-ranging social, political, economic and technological issues. List and discuss risks and uncertainties that could materially affect the company’s business.
Answer: For any company there are many risks and certainties that arise from the overall environment such as the political, social, environmental, technological as well as economic. As far as the company is concerned company does not face any significant social, political and technological risk as the market that company is serving is politically and socially stable and is expected to remain stable in future too. So to huge extent the company hardly faces any social or political risks and uncertainties. As far as the technological risks are concerned there is hardly any risk because of change in technologies because the business of restaurant hardly required any specific or specialized technologies. As far as the regulatory risks are concerned, the firm in this case hardly faces any regulatory risks.Yeah to some extent it is facing problems because of economic conditions of the market as economy is going through one of toughest crisis after the Great Depression. So company is facing some economic risks.
7. Who are the Company Chairman and CEO?
Answer: Stephen A. Davis is the company Chairman and CEO.
8. How many board members does your company have?
Answer: There are 10 members on the board of the company.
9. Who is the company’s independent auditor?
Answer: Ernst & Young LLP is the company’s independent auditor.
10. Does the company discuss any recent accounting pronouncements that they are in compliance with? Briefly list and describe them.
Answer: Yes company has discussed recent accounting pronouncements. In its 2011 annual report company has discussed the accounting pronouncements. The Financial Accounting Standards Boards issued Accounting Standards Update No 2010-06, Improving disclosure about fair value measurement. This has been discussed in the report.
11. Does the company have any foreign operations? If so, what are they?
Answer: Company does not have foreign operations.
12. List and briefly discuss any legal proceedings.
Answer: Company is involved in many ordinary and routine legal proceedings like claims from customers, employees and other related to restaurant and food manufacturing industries.
Stock Market Information
1. What is the company’s stock exchange ticker symbol?
Answer: BOBE
2. On what stock exchange is your company listed?
Answer: NASDAQ
3. What is the current stock price, 52 week high, low? (Give the date.)
Answer:
Current Price (2nd August 2012) – 37.79
High Price (19th July 2012) – 41.09
Low Price (4th Oct 2012) – 27.41
Articles about the Company
1.
Find recent articles (3) about your company, attach a copy to this report and provide a written summary of each article. (Indicate the source and date of each article below.)
Answer:
Bob Evans will build restaurant near Martin’s, 28th July 2012 from http://www.altoonamirror.com/page/content.detail/id/562889/Bob-Evans-will-build-restaurant-near-Martin-s.html?nav=725
Bob Evans plans to open restaurant on Plank Road near Martin’s Food Store as per the plans filed with the Altoona and Blair County planning commission offices. The restaurant will have 5218 square foot of space including parking spaces. It is expected that restaurant will have 18 employees for the peak hours.
Bob Evans trying to sell Mimi’s Cafe – report, 16th July 2012, from http://www.bizjournals.com/columbus/blog/2012/07/bob-evans-trying-to-sell-mimis-cafe--.html
According to Mergermarket Group, the firm plans to sell its Mimi’s chain that has 143 restaurants across the USA. In 2004 the Mimi’s was acquired by the company and if the company decides to sell this strategic buy, it will be a surprise for the industry.
Bob Evans Farms Inc : Mimi's Cafe Lifts Spirits For Children's Miracle Network Hospitals, 3rd July 2012 from http://www.4-traders.com/BOB-EVANS-FARMS-INC-8594/news/Bob-Evans-Farms-Inc-Mimi-s-Cafe-Lifts-Spirits-For-Children-s-Miracle-Network-Hospitals-14398640/
Bob Evans Farms Inc have part of fund raising activities for the Children’s Miracle Network Hospitals. Mimi’s Café, part of the company started this activity July 2012. The funds raised from this campaign will help create miracles by funding medical care, research and education that saves and improves the lives of 17 million children treated at Children's Miracle Network Hospitals each year.
2.
Find recent press releases (3) from your company, attach a copy to this report and provide a short written summary of each press release. (Indicate the source and date of each press release below.)
Bob Evans Announces First-Quarter Earnings Release And Conference Call Details accessed from http://www.investquest.com/iq/b/bobe/ne/news/bobe080112.htm
On August 1st, 2012, firm announced its first quarter results.
Bob Evans Farms, Inc. Announces Food Production Consolidation Plans
Company will close food plants in summer 2013, restructures for growth, accessed from http://www.investquest.com/iq/b/bobe/ne/news/bobe052912.htm
According to its plan for production consolidation plan, company has decided to close in food plants in summers of 2013 with the aims of better growth. Approximately 110 plant workers will be hit by this plan. They will retain their jobs until then and company plans to help the affected employees with the employment opportunities.
Bob Evans Farms to Present at the Bank of America Merrill Lynch 2012 Consumer & Retail Conference, accessed from http://www.investquest.com/iq/b/bobe/ne/news/bobe030212.htm
Company has announced that its CEO will present the Bank of America Merrill Lynch 2012 Consumer Retail Conference.
Annual Report Overview
1.
Review the Management Discussion and Analysis. Summarize the major points

made in the analysis.
Answer:
· Fiscal 2011, fiscal 2010 and fiscal 2009 consolidated and restaurant segment results included pretax charges of $15.0 million, $6.2 million and $6.4 million, respectively, related to fixed asset impairment that is reflected in S,G&A.
· Fiscal 2011 consolidated and food products segment results included $2.8 million in restructuring charges related to lean manufacturing productivity initiatives in the food products segment, including the discontinuation of fresh sausage operations at two facilities. These charges are included in S,G&A.
· Fiscal 2011 consolidated and restaurant segment results included $1.4 million in retirement and severance charges. These charges are included in S,G&A.
· Fiscal 2011 consolidated and food products segment results included $0.2 million in retirement and severance charges. These charges are included in S,G&A.
· Fiscal 2010 consolidated and food products segment results included a $1.4million in pretax gain on the sale of 49 percent of our corporate aircraft, which is reflected as a reduction of S,G&A.
· Fiscal 2010 consolidated and restaurant segment results included $2.5 million in pretax life insurance proceeds, which are reflected as a reduction of S,G&A.
· Fiscal 2010 consolidated and food products results included a pretax charge of $1.0 million related to severance payments and retirement costs, which is included in S,G&A.
· Fiscal 2010 results included the positive impact of a 53rd week of operations, which contributed $6.9 million in operating income to the consolidated results; $5.7 million in operating income to the restaurant segment and $1.2 million in operating income to the food products segment.
· Fiscal 2010 and fiscal 2009 consolidated and restaurant segment results included pretax charges of $0.8 million each year related to severance and retirement, which are reflected in S,G&A.
· Fiscal 2009 consolidated and restaurant segment results included a pretax charge of $68.0 million related to the impairment of goodwill ($56.2 million) and other intangible assets ($11.8 million) for Mimi’s, which are reflected on the Consolidated Statements of Income under “Goodwill and other intangibles impairment.”
· Fiscal 2009 consolidated and food products segment results included a pretax charge of $0.4 million for unusable spare parts, which is reflected in “other operating expenses.”
· Fiscal 2009 consolidated and restaurant segment results included $1.0 million in pretax gains on the sale of various properties, which are reflected as a reduction of S,G&A.
· Fiscal 2009 consolidated and restaurant segment results included a $0.7 million pretax charge related to a legal settlement, which is reflected in S,G&A.
2.
Locate the...