Cost-conscious companies often have a dozen or so glossy pages up front in their annual report extolling their virtues, with a sleeve in back into which the Securities and Exchange Commission Form 10K is inserted. That saves money and makes the report a multipurpose publication that can hold price sheets and specifications for customers. Stock options are worth noting in this latest batch of annual reports. Despite shortcomings, annual reports give the investor a better feeling for what a company produces and how it s used, Cloonan acknowledged. That s helpful in fields that are difficult to understand, such as technology.
Companies take their annual reports very seriously.
Modine, which last year was one of five first-place winners in the NAIC s Nicholas Awards for Annual Reports, likes themes. Both feature lots of text, as well as helpful charts and colorful photographs. Sales and marketing, which should cover what the company sells, how, where and when. Ten-year summary of financial figures, which should show the growth of profits and operating income. Management discussions and analysis, which should give a candid and accurate discussion of significant financial trends the past two years.