Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Day (June 2012)
23 slides from Smith & Wesson Brands's investor day presentation, Jun 28, 2012
Slide 1: Smith & Wesson Investor/Analyst Day June, 2012
Smith & Wesson Investor/Analyst Day June, 2012
Slide 2: Safe Harbor
Safe Harbor 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 statements include but are not
Slide 3: Business Highlights
Business Highlights U.S. Market Leader for Firearms: Handguns, Modern Sporting Rifles (MSR) 160 years of rich history Iconic brand with 92% aided awareness* Smith & Wesson(r) Brand = Revolver Innovative product portfolio serving broad user groups Revolvers, Polymer Pistols, Metal Pistols, Concealed
Slide 4: Vision / Mission
Vision / Mission Our Vision: The leading firearms manufacturer Our Mission: To allow our employees to design, produce, and market high-quality, innovative firearms that meet the needs and desires of our consumer and professional customers 4
Slide 5: Focus, Simplify, Execute
Focus, Simplify, Execute Strategy - Focus on Firearms Sale of Security Solutions - Perimeter Security Business (formerly USR) U.S. Consumer - leverage professional markets Family of brands: Smith & Wesson(r) M&P(tm) Thompson/Center Arms(tm) Walther(r) M&P(tm) - Brand and product platform: Pistols an
Slide 6: Experienced Leadership Team
Experienced Leadership Team James Debney, President & CEO 20+ years: multinational consumer and business-to- business environments including President of Presto Products Co., a $500 million business unit of Alcoa Consumer Products Jeffrey Buchanan, EVP & CFO 25+ years: private and public company exp
Slide 7: Experienced Management Team
Experienced Management Team Mario Pasantes Sr. VP, Marketing and International Sales Alcoa, Inc. Coca-Cola Pillsbury Mark Smith VP, Manufacturing and Supply Chain Management Alvarez & Marsal Ecolab Robert Cicero VP, General Counsel, Chief Compliance Officer and Secretary Chemtura Corp. Shearman & St
Slide 8: Q4/Full Year FY12 Highlights (Apr 30, 2012)
Q4/Full Year FY12 Highlights (Apr 30, 2012) Record-level quarterly sales growth from continuing ops of $129.8M, +27.7% Y/Y Record-level quarterly income from continuing ops of $17.8M, or $0.27 per share Exceeded high end of upwardly revised sales guidance Q4 gross profit of $46.9M, or 36.1% of sales
Slide 9: SWHC: Financial Highlights (From Continuing Operations)
SWHC: Financial Highlights (From Continuing Operations) Fiscal Year April 30 Sales (in Millions) Q4FY12 Actual: Sales $129.8M (+27.7%) Backlog $439.0M Gross Profit Margin 36.1% Op. Expense 16.3% Working capital $107.4M Cash $56.7M Q1FY13 Guidance: Sales $125.0M - $130.0M (Over 36%) GAAP EPS $0.16 -
Slide 10: NICS: Strength in Consumer Firearms Market
*National Shooting Sports Foundation (NSSF) adjusts FBI NICS data to eliminate background checks associated with permit applications and checks on active CCW permit databases, in order to provide a more accurate picture of market conditions. Adjusted NICS Checks* NICS: Strength in Consumer Firearms
Slide 11: Strong Industry Sales Indications Through CY11
Strong Industry Sales Indications Through CY11 Wholesale projected sales based on excise tax collections Full year excise tax collections for Handguns and Long guns up 24% over prior year Latest reported Q4 2011 showed Handgun tax obligations up 31.5% over Q4 2010 Source: Federal Excise Tax collecti
Slide 12: Industry: Pistols Driving Handgun Growth
Industry: Pistols Driving Handgun Growth U.S. handgun growth has been driven by pistols, which now represent 80% of units sold. Source: BATF annual firearms mfg and export report. USITC import data. 12 (2011 Prelim Data Due Out July, 2012)
Slide 13: Industry: Pistols vs. Revolvers
Industry: Pistols vs. Revolvers Pistols and revolvers have different attributes, but pistols are attracting younger consumers into the handgun market. Pistol advantages versus revolvers: Capacity Rate of fire High tech/cutting edge Modern shape Trigger pull Safety features Revolver advantages versus
Slide 14: SWHC Firearms Growth Drivers
SWHC Firearms Growth Drivers Consumer Market - U.S. Focus on Concealed Carry, Personal Protection, Recreation Expand Market Share: Polymer Pistol Unit Growth (M&P(tm), BODYGUARD(r), S&W(r) brand) Robust New Product Pipeline Is Required Leverage Positive Halo Effect from Professional Markets Professi
Slide 15: Major Focus: M&P Pistol Growth
Major Focus: M&P(tm) Pistol Growth Current Situation: Pistol category is 80% of handguns Compact and full-size polymer pistols are increasing in popularity M&P(tm) products well received by retail & consumer - M&P Shield(tm) Our Focus: Grow M&P(tm) Pistol market share: Increased consumer advertising
Slide 16: M&P - Proven Performance
M&P - Proven Performance M&P - Proven Performance Strong & Marketable Differences 16
Slide 17: Demonstrated Track Record of New Products
Demonstrated Track Record of New Products 2006 2007 2008 2009 2010 2011 2012 Walther PPS S&W M&P 15 S&W M&P Pistols Walther PK380 S&W M&P15-22 Walther PPQ S&W M&P15 Sport S&W BG380 S&W BG 38 S&W M&P15 Whisper S&W M&P 22 Thompson/Center Venture S&W Governor T/C Dimension 17 M&P Shield
Slide 18: New Models for the M&P Platform
New Models for the M&P(tm) Platform New and exciting entries for polymer pistol category Concealed Carry and Personal Protection Consumer and Professional Additional calibers and models for the M&P Modern Sporting Rifle platform: Tactical Hunting Will only announce new product introductions when tim
Slide 19: The NEW M&P Shield
The NEW M&P Shield(tm) SLIM Less than 1" thin CONCEALABLE 6" overall length POWERFUL 9mm or .40 S&W 19 "Guns hit store shelves at the end of the month in April or early May. The pistol itself is a lot to talk about - the most rugged of all "pocket rocket" pistols with M&P reliability and quality, bu
Slide 20: Key Accessory Partners Were Ready
Key Accessory Partners Were Ready Most Products Available at Launch 20
Slide 21: Our Strategic Direction: Focus on Firearms
Our Strategic Direction: Focus on Firearms Grow sales and increase profitability Expand manufacturing capacity intelligently Focus on M&P(tm) Pistol platform Optimize expenses on a company-wide basis Focus on improving gross margins Maintain robust new product pipeline Launch new products strategica
Slide 22: Financial Model: Accelerating the Goals
Financial Model: Accelerating the Goals Sales: 100% CGS: 69% Margin: 31% Opex: 20% Operating Margin: 11% 22 Sales: 100% CGS: 67% Margin: 33% Opex: 18% Operating Margin: 15% Sales: 100% CGS: 65% Margin: 35% Opex: 17% Operating Margin: 18% Note: This chart reflects information that we provided on June
Slide 23: Question & Answers
Question & Answers For Investor Information contact Liz Sharp at lsharp@smith-wesson.com , (480) 949-9700