Fgi Industries Ltd. · NASDAQ:FGI
Fgi Industries — Q4 2021 Earnings Presentation
17 slides from Fgi Industries's earnings presentation, 2022
Slide 1: Slide 1
Slide 2: Disclaimer
DISCLAIMER Certain matters discussed in this presentation contains forward-looking statements concerning our business, operations and financial performance and conditions, as well as our plans, objectives and expectations for our business operations and financial performance and condi tion. These st
Slide 3: FGI Industries at a Glance
FGI INDUSTRIES AT A GLANCE FGI is a leading “B-to-B” global supplier of Kitchen & Bath products with a reputation for Innovation, Quality & Service developed over 30 years in conjunction with our parent company, Foremost Groups Ltd. | TICKER: FGI | $180MM+ REVENUE BUSINESS IPO in January 2022 35% re
Slide 4: Company Overview
COMPANY OVERVIEW SANITARYWARE - 61% REPAIR/REMODEL - ~80% ( TOILE TS & SEATS, SINK S & P E DE STA LS) NEW CONSTRUCTION - ~20% BATH FURNITURE - 30% ( V A NITIE S, M IRRORS, C A B INE TS) OTHER - 9% (CUSTOM K ITC HE N C A B INETRY , SHOWE R DOORS/WA LLS) USA - 62% PRIVATE LABELS - ~60% MASS RETAIL -40
Slide 5: Repair and Remodel Markets Provide Stable Growth
REPAIR AND REMODEL MARKETS PROVIDE STABLE GROWTH CONSISTENT YEAR-OVER-YEAR GROWTH IN THE KITCHEN AND BATHROOM RANK MORE IMPORTANT THAN OTHER R&R OUTSIDE OF EXTREME RECESSIONS YEARS AREAS OF THE HOME – THE PANDEMIC HAS REINFORCED THIS 70% SHARE OF HOMEOWNERS INDICATING AREA OF HISTORICAL R&R GROWTH 7
Slide 6: Key Drivers of Long-Term Shareholder Value
KEY DRIVERS OF LONG-TERM SHAREHOLDER VALUE • Re-invest in core businesses with evergreen expansion • Grow Brands, Product opportunities categories and sales Channels • Selective bolt-on acquisitions • Focus on higher incremental margin • Excess free cashflow for sales opportunities LONG-TERM VALUE d
Slide 7: Financial Overview and Fourth Quarter Highlights
FINANCIAL OVERVIEW AND FOURTH QUARTER HIGHLIGHTS 7
Slide 8: Business Highlights – 4Q21
BUSINESS HIGHLIGHTS – 4Q21 • Fourth quarter revenues increased 47% to $52.2 million, driven by strength in both Sanitaryware and Bath Record Revenue Furniture, as well as contribution from our new products such as shower systems and kitchen cabinetry Operating • Operating income for the fourth quart
Slide 9: 4Q21 Consolidated Financial Results
4Q21 CONSOLIDATED FINANCIAL RESULTS Total Revenue Gross Profit $MM $MM • Total revenue increased 47% during $181.9 $32.2 the fourth quarter driven by 32% $28.4 volume growth and 15% benefit from $134.8 price/mix. • Gross profit increased 6.5% to $7.6 million, as strong revenue growth was $52.2 $7.6
Slide 10: Current Global Supply Chain Pressures
CURRENT GLOBAL SUPPLY CHAIN PRESSURES SHIPPING TIMES LCL CHINA TO US 70 | Global transit times and container shipping prices have faced 65 unprecedented pressures in 2021 (COVID-19 in factories, shipping delays, 60 etc) 55 50 | Discussions with freight forwarders and logistics firms indicate these p
Slide 11: 4Q21 Business Line Results
4Q21 BUSINESS LINE RESULTS Sanitaryware Revenue Bath Furniture Revenue Other Revenue $MM $MM $MM $111.3 $55.1 $15.5 $88.4 $38.2 $8.2 $36.1 $23.0 $10.4 $12.5 $3.6 $2.1 4Q20 4Q21 2020 2021 4Q20 4Q21 2020 2021 4Q20 4Q21 2020 2021 • Sanitaryware revenue was $36.1 • Bath Furniture revenue was • Other rev
Slide 12: Financial Outlook
FINANCIAL OUTLOOK 2022 Financial Outlook Revenue Operating Income Net Income $182 – 189 million $6.5 – 7.5 million $5 – 6 million 12
Slide 13: Key Investment Characteristics
KEY INVESTMENT CHARACTERISTICS TRUSTED GLOBAL STRONG ORGANIC ENHANCED “SPIN-OFF” VALUE-ACCRETIVE STRONG SUPPLIER GROWTH PROFITABILITY BOLT-ONS SHAREHOLDER ALIGNMENT We are global, diversified, and We pursue a “BPC” strategy: As a carve-out division from a We will engage in selective High insider own
Slide 14: Appendix
BPP OOK 14 APPENDIX
Slide 15: Financial Summary
FINANCIAL SUMMARY (USD) 2019 2020 2021 REVENUES 126,282,212 134,827,701 181,943,027 GROSS PROFIT 25,439,069 28,404,640 32,202,408 GROSS MARGINS 20.10% 21.07% 17.70% SELLING AND DISTRIBUTION 14,917.60 15,487,306 17,636,820 GENERAL AND ADMINISTRATIVE 7,355,632 5,820,967 6,194,789 RESEARCH & DEVELOPMEN
Slide 16: Financial Summary (continued)
FINANCIAL SUMMARY (continued) USE OF NON-GAAP FINANCIAL MEASURES In assessing the performance of our business, management utilizes a variety of financial and performance measures to assess our business performance, including to evaluate our ability to convert earnings from our operational performanc
Slide 17: Slide 17