Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (January 2008)
17 slides from Smith & Wesson Brands's investor presentation, Jan 22, 2008
Slide 1: Michael Golden, President/CEO John Kelly, CFO January 2008
Michael Golden, President/CEO John Kelly, CFO January 2008
Slide 2: Forward-looking statements
Smith & Wesson Holding Corporation Certain statements contained in this presentation may be deemed to be forward-looking statements under federal securities laws, and the Company intends that such forward- looking statements be subject to the safe-harbor created thereby. Such forward-looking stateme
Slide 3: Delivering Results
Delivering Results Net Product Sales (Millions) Earnings per Share (Diluted) Net Income (Millions) 2004-2007 Revenue +99% EPS +1450% 0 2 4 6 8 10 12 14 2004 2005 2006 2007 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 2004 2005 2006 2007 0 50 100 150 200 250 2004 2005 2006 2007
Slide 4: Company Profile
Company Profile 156-year old American firearms company Largest U.S. manufacturer of handguns & handcuffs 2006 market share: #1 in revolvers #2 in pistols New growth fueled by: Taking share in $732M core handgun market Growing presence with U.S. Government Expansion into $1.1B long gun market 1500 Em
Slide 5: S&W: 87% Brand Awareness
S&W: 87% Brand Awareness Source: American Sports Data - Nov, 2004 A company-sponsored, 2004 survey asked consumers about their future purchase intent: Product / Service S&W Rank Current Status Revolvers #1 Served Pistols #1 Served Tactical Rifles #1 Entered Market February 2006 Shotguns #3 Entered M
Slide 6: Handgun Market: $732MM
$154MM $87MM* 15% $578MM S&W 2007 (Includes Walther Products) Market 2006 2006 (CALENDAR) U.S. DOMESTIC NON-MILITARY MARKET - 2007 (FISCAL) S&W SALES $68MM 44% SOURCE: BATF 2006 Excise Tax Study & Smith & Wesson Management Estimates Handgun Market: $732MM Revolvers Pistols *Does not include $10MM in
Slide 7: S&W Net Product Sales (Year over Year Growth %)
S&W Net Product Sales (Year over Year Growth %) Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 43% 59% 56% 39% 40% 50% 44% 24% 22% 15% 10% 13% 1% - -4% - -10% 0% 10% 20% 30% 40% 50% 60% 70%
Slide 8: Four Key Sales Channels: Sporting Goods
Four Key Sales Channels SPORTING GOODS Delivering full range: pistols, revolvers, rifles, shotguns Revolutionary marketing and consumer pull programs S&W Consumer Sales ($ In Millions) 8% 8% 24% 32% 37% 52% 41% 78% 99% New Sales Structure Established 57% $0 $10 $20 $30 $40 $50 $60 $70 $80 Q1-06 Q2-0
Slide 9: Four Key Sales Channels: Law Enforcement, Federal, International
Four Key Sales Channels SPORTING GOODS Delivering full range: pistols, revolvers, rifles, shotguns Revolutionary marketing and consumer pull programs LAW ENFORCEMENT Market Size: 17,000 Departments and 800,000 Officers M&P Series polymer pistols launched January 2006 Win rates: 80%+ with pistols (26
Slide 10: Addressing New Growth Opportunities
Addressing New Growth Opportunities Safety...Security...Protection...Sport Homeland Security Products and Services Surround the Police Officer Surround the Foot Soldier Currently Exploring Defense Related Products and Services Firearms Law Enforcement Products and Services Handguns Long Guns
Slide 11: Entering New Markets: Long Guns
Entering New Markets: Long Guns SOURCE: BATF 2006 Excise Tax Study and Smith & Wesson Management Estimates Based on 2006 vs. 2007 data from top 3 distributors. The long gun market is 50% larger than the handgun market 2006 U.S. DOMESTIC NON-MILITARY MARKET Bolt-Action Rifles $480mm (43%) Shotguns $3
Slide 12: Building the Brand: Licensing
Building the Brand: Licensing Upgrading Retail Licensee Portfolio: Wilsons Leather, Wellco Enterprises (military boots), Zippo (lighters), Gun Safes, Gun Cleaning Products, Hats/T-shirts, Automotive Establishing licensees in professional markets where Smith & Wesson can do business beyond licensing:
Slide 13: Enhancing Productivity
Enhancing Productivity Achievements through FY 07: - Turns improvement +32% - Machine uptime improved to 85% - Guns/day output +57% vs '05 +22% vs '06 - Productivity ratio + 7% vs prior year Blending craftsmanship with technology: - Implementing Smith & Wesson Operating System - Investing in Equipme
Slide 14: Quarterly Income Statement Summary
Quarterly Income Statement Summary Sales: +39% Net Income: +3% Growth: (US$ in millions, except per share data) 2006 2007 Sales $50.8 $70.8 Gross Profit 16.1 23.1 Gross Margin 31.2% 32.3% Operating Income $5.3 $6.5 Net Income 2.9 2.9 EPS $0.07 $0.07 Three Months Ended October 31,
Slide 15: Annual Income Statement Summary
Annual Income Statement Summary Sales: +5% Net Income: +531% Sales: +27% Net Income: +66% FY 07 Results reflect Thompson acquisition, including approximately $2.7 million in amortization of inventory FMV valuation and acquisition related intangibles Sales: +49% Net Income: +49% Growth: Year Ended Ap
Slide 16: FY08 Annual Guidance
FY08 Annual Guidance We, like many other companies doing business today, find ourselves now in an uncertain business environment. We therefore do not confirm the guidance we gave on December 6, 2007, nor do we give any guidance at this time. To be clear, we are giving no guidance today. We cannot te
Slide 17: Smith & Wesson
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