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The Ultimate Free Skate:
Writing the 10K Letter
Kevin M. Brett
J410
May 21, 2013
SEC Disclosure Rules
• Annual Report to Shareholders (10K)
• Quarterly Earnings Reports (10Q)
• Major Unplanned Announcements (8K)
– Upside / Downside Guidance Variations
– Mergers and Acquisitions
– Restructurings
• Annual Meeting of Shareholders
• Prospectus for Planned IPO (S1)
10Q: The Short Program
• Required Elements
• Top Line: Y/Y; Sequential
• GM %: Expanding/Contracting
• Bottom Line Earnings/(Loss)
• EPS
• GAAP precedence over Pro Forma
• Quotes from CEO/CFO
Stock Prices Are A…
• Leading or a…
• Trailing Indicator?
Wisdom from “Mad Money”
“I don’t care about a stock’s past, only
its future,” Jim Cramer, CNBC ‘Mad
Money’
SEC Mandates the 10K
• Must be filed within 90 days of the completion of
Q4/Fiscal Year
• Most 10Ks Include CEO Letter to Investors,
Customers and Employees
• What is the Strategy for Success?
• How Did We Do Last Year?
• How Are We Going to Succeed Going Forward?
10K: The Long Program
• Required Advocacy Document
• Why AMZN, NKE, JWN, SBUX
• Strategy, Strategy, Strategy
• Quick Review of the Past
• CSR? Contribution of Employees?
• What the Future Holds? (No guarantees)
• Thunderous Applause
Concluded Fiscal Year Metrics
• Revenue expansion/percentage increase
• Bottom line expansion/percentage increase
• EPS Growth; Specific numbers and percentage
• Cash: Did the company grow cash?
• Stock buy backs and/or dividends?
Who Cares? 10K Key Audiences
• Buy Side, Sell Side, Retail
Shareholders/Investors
• Employees
• Customers
• Suppliers
• Partners/Distributors
• Competitors
• Regulators
• Plaintiff’s Bar
Completing Your 10K Letter
• Hard copy, due Tuesday, May 28
• Include CEO photo/company logo
• Minimum two pages
• 1.15 to 1.5 spacing
• 11-12-point font
• Indented paragraphs
• Bar/pie chart or two?
• Subheads/Bullets
• 15 percent of final grade
Writing the10-K Annual Report Letter.ppt

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Writing the10-K Annual Report Letter.ppt

  • 1. The Ultimate Free Skate: Writing the 10K Letter Kevin M. Brett J410 May 21, 2013
  • 2. SEC Disclosure Rules • Annual Report to Shareholders (10K) • Quarterly Earnings Reports (10Q) • Major Unplanned Announcements (8K) – Upside / Downside Guidance Variations – Mergers and Acquisitions – Restructurings • Annual Meeting of Shareholders • Prospectus for Planned IPO (S1)
  • 3. 10Q: The Short Program • Required Elements • Top Line: Y/Y; Sequential • GM %: Expanding/Contracting • Bottom Line Earnings/(Loss) • EPS • GAAP precedence over Pro Forma • Quotes from CEO/CFO
  • 4. Stock Prices Are A… • Leading or a… • Trailing Indicator?
  • 5. Wisdom from “Mad Money” “I don’t care about a stock’s past, only its future,” Jim Cramer, CNBC ‘Mad Money’
  • 6. SEC Mandates the 10K • Must be filed within 90 days of the completion of Q4/Fiscal Year • Most 10Ks Include CEO Letter to Investors, Customers and Employees • What is the Strategy for Success? • How Did We Do Last Year? • How Are We Going to Succeed Going Forward?
  • 7. 10K: The Long Program • Required Advocacy Document • Why AMZN, NKE, JWN, SBUX • Strategy, Strategy, Strategy • Quick Review of the Past • CSR? Contribution of Employees? • What the Future Holds? (No guarantees) • Thunderous Applause
  • 8. Concluded Fiscal Year Metrics • Revenue expansion/percentage increase • Bottom line expansion/percentage increase • EPS Growth; Specific numbers and percentage • Cash: Did the company grow cash? • Stock buy backs and/or dividends?
  • 9. Who Cares? 10K Key Audiences • Buy Side, Sell Side, Retail Shareholders/Investors • Employees • Customers • Suppliers • Partners/Distributors • Competitors • Regulators • Plaintiff’s Bar
  • 10. Completing Your 10K Letter • Hard copy, due Tuesday, May 28 • Include CEO photo/company logo • Minimum two pages • 1.15 to 1.5 spacing • 11-12-point font • Indented paragraphs • Bar/pie chart or two? • Subheads/Bullets • 15 percent of final grade