A LEAF OF FAITH

1. A LEAF OF FAITH

2. Original farmhouse under the Shady Maple trees

3. History of Shady Maple • Pre 1970: • Mr. and Mrs. Henry Martin starting selling produce at a roadside stand in front of their home, under the large Maple Trees • 1970: • Marvin & Miriam Weaver take over the business from Miriam’s parents, Mr. & Mrs. Martin • First block building was opened (Shady Maple Farm Market), approximately 3,000 sq. ft. • Joined the IGA grocery family • 1971: • First expansion (small remodel & addition of A/C)

4. Original Farm Market building

5. History (cont.) • 1972: • Stock room added. 25 people on the payroll • 1973 – 1976: • Numerous additions & remodeled bakery • Large warehouse added to the facility • 1976: • Store was 45,000 sq. ft., 10 registers, and 130 employees

6. History (cont.) • 1976 – 1982: • Interior remodeling & new employee lunchroom added. Small food counter also added. • 1982: • The Weavers launched major expansion, remodeling the entire store to 70,000 sq. ft! • 100 seat Fast Food Cafeteria was added • 240 employees worked at Shady Maple.

7. First major expansion

8. History (cont.) • 1983 – 1984: • Constant change & improvements: computerized smoke house added, most items made from scratch in Soup & Salad dept, produce purchased by the trailer load. • 1984: • Construction started on first Smorgasbord restaurant (current Country Home Furniture location) • 1985: • Restaurant was ready with over 300 seats (top level), and gift shop & fast food on the lower level.

9. The Complex Grows!

10. History (cont.) • 1989: • Smorgasbord was expanded and could now seat over 500 customers. 180 workers employed. • 1992: • Farm Market completely remodeled, with addition of new Foyer, new offices, and new Bake Shop, expanded Cafeteria, and various other additions. • Store size expanded to 110,000 sq. ft.

11. History (cont.) • 2000: • Brand new Smorgasbord was built (current location), which could now seat over 1,200 customers. • 40,000 sq. ft Gift Shop located on the lower level, along with a 225 seat Fast Food Dutchette • 250+ individuals employed at this time • 2004: • A new banquet facility that could house 1,000 customers was added to the Smorgasbord to accommodate large groups & special events. • Catering added to the long list of services provided

12. And Grows!!

13. History (cont.) • 2009 – 2010: • Farm Markets “final” expansion, which added 14,000 sq. ft of retail space, a car port, new Café, and completely remodeled interior. • Currently: • The Farm Market & Smorgasbord currently employee approximately 300-350 employees at each location, including full-time, part-time, seasonal, and temporary help.

14. And Grows!!!

15. History (concluded) • Currently (cont.): • Approximately 800,000 customers shop at the Farm Market each year • Approximately 1,400,000 customers dine at the Smorgasbord each year (daily record – 11,032) • Smorgasbord – over 200 feet of food with 4 grills • 200 bakery items made from scratch • 100 soup & salad items made from scratch • Shady Maple Companies include a wholesale food distributor (Weaverland Foods) and an RV dealership (Shady Maple RV), which were both added within the past 5 years. • Shady Maple is not just a location, but a destination!

16. Business Structure • Private, family owned business for over 40 years • Currently 5 owners: • Marvin & Miriam Weaver (founders) • Philip, Curtis, and Linford (sons) • Tax structure: S Corporation • Corporation with flow-through tax treatment, as allowed under Subchapter S of Chapter 1 of the Internal Revenue Code.

17. The Weaver Family

18. Business Vision / Values • Vision: • “To be recognized as a Godly business that has top quality products with the best variety and service in the region by our employees, customers, and competition.” • Values: • “Focus on the customers, to serve respectfully, be thankful, show kindness.”

19. Business Strategies • Overall purpose: Make a profit! • How we get there: • Being great at what we do (distinguish yourself) • Providing the best quality products for the best value • Providing a large selection second to none • Creating a brand that customers recognize • Knowing our customers (target market) • Providing services that customers want • Providing value that get them in the door • Providing quality to keep them coming back

20. Business Strategies (cont.) • How we get there (cont.): • Manage costs efficiently & effectively • We control food costs by “fighting” for the best price, buying in bulk, buying direct, and transporting our own products • We continually monitor labor & set goals for our department managers to control wage expenses • We reduce our tax burden through various incentive programs, business structure, and other tax-saving strategies • We control our utilities/energy costs through energy efficient improvements, reducing consumption, shopping for the best rate, and finding alternative sources (solar energy)

21. Business Strategies (cont.) • How we get there (cont.): • Proper pricing & mark-up • Hold the margin! • Every department has a gross profit goal they must maintain, which is determined annually by the executive team • Markup is based on the retail markup method, and not “cost - plus” • Example: Assume cost of product is $100 • Profit margin required: 25% • Retail price = cost / (100% – profit margin) • Retail price = $100 / (100 % – 25%) = $133.33 • Profit = $33.33, or 25% ($33.33 / $133.33)

22. Business Strategies (concluded) • How we get there (concluded): • Create competitive advantages • Moves toward more “vertical integration”: • Creating a trucking company to transport products, as opposed to paying for freight/delivery charges (reduces food costs) • In-house maintenance department to reduce outsourcing at premium rates (reduces overhead) • In-house Controller & accounting department to reduce professional fees (reduces overhead) • Equipment purchases to maintain property (snow plowing, etc.) • Producing products in-house to reduce costs and improve quality (bakery, soup & salad, smoked meats, etc.)

23. Accounting • All financial transactions and accounting is performed in accordance with US GAAP • Rules used to prepare, present, and report financial statements • Interim financial statements prepared monthly by the Controller (contains departmental detail) • Year-end compiled financial statements prepared annually by independent public accounting firm

24. Balance Sheet • Major Assets: • Cash & Cash Equivalents • Accounts Receivable • Inter-company & trade • Inventory • Prepaid Expenses • Property & Equipment • Equipment owned by the operating businesses • Property owned by a family partnership • Major Liabilities: • Accounts Payable • Inter-company & trade • Gift Card Liabilities • Payroll withholdings • Accrued Expenses • Wages • Employee benefits • Taxes • Etc

25. Income Statement • Major revenue sources: • Retail sales • Wholesale sales • Rental income from subleases • Miscellaneous other sources • Major expenses: • Cost of goods sold • Food & Product • Wages & employee benefits • Taxes • Supplies • Utilities • Building rent • Advertising • Miscellaneous others

26. Software Packages Used • Microsoft Dynamics GP • Used for the following tasks: • Process accounts payable & accounts receivable • HR purposes: track employee data • Creative Solutions Accounting • Use for the following tasks: • Process monthly & year-end financial statements • Engagement management (work papers, etc.) • Track fixed assets & calculate depreciation • Tax preparation (at CPA firm)

27. Controller Responsibilities • Prepare monthly financial statements, semi-annual incentive plan, bi-weekly labor reports, etc. • Assist owners/president with budgets, forecasts, and making sound financial decisions • Coordinate year-end closing of the books • Reconcile all bank accounts • Reconcile all general ledger accounts • Coordinate & oversee large capital purchases & projects (energy projects, new sales ventures, etc) • Prepare leases & sales agreements • Ensure compliance with tax laws & other government regulations

28. Marketing • Mediums used for advertising: • Newspapers • Direct mail & brochures • Radio • Television • Billboards • Online • Community fairs and parades • Word of mouth

29. Marketing (cont.) • Mission Statement: • “To serve others daily we will, act with integrity, give great service, create energy and wow factors, and solve unmet expectations in a timely manner. We will build and nurture a caring, committed team that is in alignment with Shady Maple values. We will work to ensure profitability in line with Shady Maple’s industry leading performance.”

30. Marketing Coordinator Responsibilities • Maintain billboards (billing, design, etc.) • Keep brochures up-to-date • Meet with advertising sales reps • Prepare floats for parades • Determine target marketing areas • Track & evaluate effectiveness of advertising • Control advertising costs (keep within budget) • Coordinate events, donations, & giveaways

31. Thank You! Visit us at: www.shady-maple.com Remember: Your birthday meal is FREE with one paying adult (on your birthday)