Venetian, Inc.

Statement of Income
For the Years Ended December 31, 2014 and 2013
(In thousands except per share amounts)
2014 2013
Net Sales 215,600 153,000
Cost of Goods Sold 129,364 91,879
Gross Profit 86,236 61,121
Operating expenses
Selling and administrative expenses 32,664 26,382
Advertising 14,258 10,792
Lease payments 13,058 7,111
Depreciation and amortization 3,998 2,984
Repairs and mainetance 3,015 2,046
Total operating expenses 66,993 49,315
Operating profit 19,243 11,806
Other income (expenses)
Interest income 422 838
Interest expense (2,585) (2,277)
Net (2,163) (1,439)
Earnings before income taxes 17,080 10,367
Income taxes 7,686 4,457
Net earnings after income taxes 9,394 5,910
Shares issued 4,803 4,594
Earnings per ordinary shares 1.96 1.29
Venetian, Inc.
Statement of Financial Position
December 31, 2014, 2013 and 2012

(In thousands) 2014v.s.2013 2013v.s.2012

2014 2013 2012 Inc (Dec) Inc (Dec)
Assets
Current Assets
Cash and cash equivalents 4,061 2,382 4,458 1,679 (2,076)
Marketing securities 5,272 8,004 8,004 (2,732) -
Accounts receivable 9,408 8,767 5,398 641 3,369
Allowance for doubtful accounts (448) (417) (387) (31) (30)
Inventories 47,041 36,769 29,763 10,272 7,006
Prepaid expenses 512 759 1,054 (247) (295)
Total Current assets 65,846 56,264 48,290 9,582 7,974
Property, Plant and Equipment - -
Land 811 811 811 - -
Buildings and leasehold improvements 18,273 11,928 9,000 6,345 2,928
Equipment 21,523 13,768 11,923 7,755 1,845
Accumulated Depreciation (11,528) (7,530) (4,546) (3,998) (2,984)
Net property, plant and equipment 29,079 18,977 17,188 10,102 1,789
Other Assets 373 668 668 (295) -
Total Assets 95,298 75,909 66,146 19,389 9,763

Liabilities and Equity

Current Liabilities
Acoounts payable 14,294 7,591 8,642 6,703 (1,051)
Accrued liabilities 5,669 5,313 7,009 356 (1,696)
Notes payable - banks (current) 5,614 6,012 4,158 (398) 1,854
Current maturities of long term debt 1,884 1,516 1,516 368 -
Total current liabilities 27,461 20,432 21,325 7,029 (893)
Deferred Income Taxes 843 635 499 208 136
Lonng term Debt 21,059 16,975 7,622 4,084 9,353
Total Liablities 49,363 38,042 29,446 11,321 8,596

Equity
Share capital, ordinary, par value P 1, authorized 10 Million shares 4,803 4,594 4,458 209 136
2014 2013 Total - -
Authorized 10,000,000 - -
Issued 4,803,000 4,594,000 9,397,000 - -
Unissued 603,000 - -
Additional paid in capital 957 910 863 47 47
Retained earnings 40,175 32,363 31,379 7,812 984
Total Equity 45,935 37,867 36,700 8,068 1,167
Total liabilities and Equity 95,298 75,909 66,146 19,389 9,763
Must be zero - - - - -
Venetian, Inc.
Statement of Cash Flow
December 31, 2014 and 2013
(In thousands)

2014 2013
CASHFLOWS FROM OPERATING ACTIVITIES
Net Income 9,394 5,910
Adjustment for:
Depreciation 3,998 2,984
Allowance for doubtful accounts 31 30
Gain on sale - -
Loss on sale - -
Realized gain on sale of trading securities - -
Unrealized gain on sale of trading securities - -
Operating income before working capital changes (changes in current assets and Liabilities) 13,423 8,924
Cash and cash equivalents
Marketing securities
Accounts receivable (641) (3,369)
Inventories (10,272) (7,006)
Prepaid expenses 247 295
Acoounts payable 6,703 (1,051)
Accrued liabilities 356 (1,696)
Deferred income taxes 208 136
Net cash flows provided by (used in ) operating activities 10,024 (3,767)
CASHFLOWS FROM INVESTING ACTIVITIES
Leasehold improvement (6,345) (2,928)
Acquisition of equipment (7,755) (1,845)
Other investing assets 295 -
Net cash flows provided by (used in ) investing activities (13,805) (4,773)
CASHFLOWS FROM FINANCING ACTIVITIES
Notes payable - banks (current) (398) 1,854
Current maturities of long term debt 368 -
Additions to long-term borrowings 5,600 7,882
Reduction of long-term borrowings (1,516) (1,593)
Dividends paid (1,582) (1,862)
Issuance of shares of stock 256 183
Net cash flows provided by (used in ) financing activities 2,728 6,464
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,053) (2,076)
Cash and Cash equivalents, beginning 10,386 12,462
CASH AND CASH EQUIVALENTS, END 9,333 10,386
Venetian, Inc.
Statement of Income
For the Years Ended December 31, 2014 and 2013
(In thousands except per share amounts)

2014 2013
Net Sales 215,600 153,000
Cost of Goods Sold 129,364 91,879
Gross Profit 86,236 61,121
Operating expenses
Selling and administrative expenses 32,664 26,382
Advertising 14,258 10,792
Lease payments 13,058 7,111
Depreciation and amortization 3,998 2,984
Repairs and mainetance 3,015 2,046
Total operating expenses 66,993 49,315
Operating profit 19,243 11,806
Other income (expenses)
Interest income 422 838
Interest expense (2,585) (2,277)
Net (2,163) (1,439)
Earnings before income taxes 17,080 10,367
Income taxes 7,686 4,457
Net earnings after income taxes 9,394 5,910
Shares issued 4,803 4,594
Earnings per ordinary shares 1.96 1.29
Horizontal Analysis (Inc or Dec Method) Vertical Analysis Trend Analysis Ratios Us

Amount (2014v.s.2013) Percentage 2014 2013 2013 (Base) 2014

62,600 41% 100% 100% 100% 141% Ref
37,485 41% 60% 60% 100% 141% 1
25,115 41% 40% 40% 100% 141%

6,282 24% 15% 17% 100% 124% 2

3,466 32% 7% 7% 100% 132%
5,947 84% 6% 5% 100% 184%
1,014 34% 2% 2% 100% 134% 3
969 47% 1% 1% 100% 147%
17,678 36% 31% 32% 100% 136%
7,437 63% 9% 8% 100% 163% 4

(416) -50% 0% 1% 100% 50%

(308) 14% -1% -1% 100% 114% See other indicators o
(724) 50% -1% -1% 100% 150%
6,713 65% 8% 7% 100% 165%
3,229 72% 4% 3% 100% 172%
3,484 59% 4% 4% 100% 159%
209 5% 2% 3% 100% 105%
0.67 52% 0.001% 0.001% 100% 152%
 Ratios Used to Measure Profitability and Returns to Investors

Name Formula 2014 2103

Gross Profit Margin Gross Profit = 40% 40%
Net Sales

Operating Profit Margin Operating Profit 9% 8%

Net Sales

Net Profit Margin Net Profit 8% 7%

Net Sales

Return on Assets Net Profit 18% 14%

Total Assets

See other indicators on pages 178 to 179

Venetian, Inc.
Statement of Financial Position
December 31, 2014, 2013 and 2012

(In thousands)

Assets
Current Assets
Cash and cash equivalents
Marketing securities
Accounts receivable
Allowance for doubtful accounts
Inventories
Prepaid expenses
Total Current assets
Property, Plant and Equipment
Land
Buildings and leasehold improvements
Equipment
Accumulated Depreciation
Net property, plant and equipment
Other Assets
Total Assets

Liabilities and Equity

Current Liabilities
Acoounts payable
Accrued liabilities
Notes payable - banks (current)
Current maturities of long term debt
Total current liabilities
Deferred Income Taxes
Lonng term Debt
Total Liablities
Equity
Share capital, ordinary, par value P 1, authorized 10 Million shares
2014 2013 Total
Authorized 10,000,000
Issued 4,803,000 4,594,000 9,397,000
Unissued 603,000
Additional paid in capital
Retained earnings
Total Equity
Total liabilities and Equity
Must be zero
 Horizontal Analysis (Increase or Decrese Method)

Amount

2014 2013 2012 (2014v.s.2013) (2013v.s.2012)

4,061 2,382 4,458 1,679 (2,076)

5,272 8,004 8,004 (2,732) -
9,408 8,767 5,398 641 3,369
(448) (417) (387) (31) (30)
47,041 36,769 29,763 10,272 7,006
512 759 1,054 (247) (295)
65,846 56,264 48,290 9,582 7,974

811 811 811 - -

18,273 11,928 9,000 6,345 2,928
21,523 13,768 11,923 7,755 1,845
(11,528) (7,530) (4,546) (3,998) (2,984)
29,079 18,977 17,188 10,102 1,789
373 668 668 (295) -
95,298 75,909 66,146 19,389 9,763

14,294 7,591 8,642 6,703 (1,051)

5,669 5,313 7,009 356 (1,696)
5,614 6,012 4,158 (398) 1,854
1,884 1,516 1,516 368 -
27,461 20,432 21,325 7,029 (893)
843 635 499 208 136
21,059 16,975 7,622 4,084 9,353
49,363 38,042 29,446 11,321 8,596
 4,803 4,594 4,458 209 136

957 910 863 47 47

40,175 32,363 31,379 7,812 984
45,935 37,867 36,700 8,068 1,167
95,298 75,909 66,146 19,389 9,763
- - - - -
lysis (Increase or Decrese Method) Vertical Analysis Trend Analysis
Percentage

(2014v.s.2013) (2013v.s.2012) 2014 2013 2012 2012 (Base) 2013

70% -47% 4% 3% 7% 100% 53%

-34% 0% 6% 11% 12% 100% 100%
7% 62% 10% 12% 8% 100% 162%
7% 8% 0% -1% -1% 100% 108%
28% 24% 49% 48% 45% 100% 124%
-33% -28% 1% 1% 2% 100% 72%
17% 17% 69% 74% 73% 100% 117%

0% 0% 1% 1% 1% 100% 100%
53% 33% 19% 16% 14% 100% 133%
56% 15% 23% 18% 18% 100% 115%
53% 66% -12% -10% -7% 100% 166%
53% 10% 31% 25% 26% 100% 110%
-44% 0% 0% 1% 1% 100% 100%
26% 15% 100% 100% 100% 100% 115%

88% -12% 15% 10% 13% 100% 88%

7% -24% 6% 7% 11% 100% 76%
-7% 45% 6% 8% 6% 100% 145%
24% 0% 2% 2% 2% 100% 100%
34% -4% 29% 27% 32% 100% 96%
33% 27% 1% 1% 1% 100% 127%
24% 123% 22% 22% 12% 100% 223%
30% 29% 52% 50% 45% 100% 129%
5% 3% 5% 6% 7% 100% 103%

5% 5% 1% 1% 1% 100% 105%
24% 3% 42% 43% 47% 100% 103%
21% 3% 48% 50% 55% 100% 103%
26% 15% 100% 100% 100% 100% 115%
- -
nd Analysis Ratios Used to Evaluate Short Term Financial Position (Short term Solvency and Liquidity

2014

Ref Name Formula 2014 2013 2012

91%
66% 1 Current ratio Current Assets (CA) 2.40 2.75 2.26
174% Currrent Liabilities (CL)
116%
158% 2 Acid test ratio Cash+MS+AR 0.67 0.92 0.82
49% CL
136%
3 Working Capital CA - CL 38,385 35,832 26,965
100%
203%
181%
254%
169% Working Capital 40% 47% 41%
Working Capital to
56% total assets Total Assets
144%

See other ratios applicable on pages 174-177

165%
81%
135%
124%
129%
169%
276%
168%
108%

111%
128%
125%
144%