Capstone Holding Corp. · NASDAQ:CAPS
Capstone — Investor Presentation (April 2025)
23 slides from Capstone's investor presentation, Apr 1, 2025
Slide 1: Capstone Holding Corp. March 2025
CAPSTONE HOLDING CORP. March 2025 BUILT TO DELIVER. POSITIONED TO ACQUIRE. READY TO SCALE.
Slide 2: Preamble Disclosure & Disclaimer
Preamble Disclosure & Disclaimer The following content is completely qualified by the legal disclosures on the following two slide s . Our goal is to share with you some of our strategic thinking and financial analysis we are using to guide the growth of our b usi ness. The content is in line with o
Slide 3: Legal Disclosure & Disclaimer
Legal Disclosure & Disclaimer This presentation includes forward - looking statements within the meaning of the Private Securities Litigation Reform Act that reflect our current views with respect to, among other things, our operations, business strategy, interpretation of prior development activiti
Slide 4: Legal Disclosure & Disclaimer (Contd...)
Contd... THIS PRESENTATION IS NOT INTENDED TO SERVE AS A FORECAST OF ANY SUCH FUTURE PERFORMANCE OR PROSPECTS . An investor must not act on any m att er contained in this document but must make its own assessment of Capstone and conduct its own investigations and analysis . Investors should assess t
Slide 5: Agenda
Capstone Goals for 2025 Performance of Instone in 2024 Earnings Power of Instone Standalone for 2025 Agenda Agenda
Slide 6: Capstone Goals for 2025
Capstone Goals for 2025
Slide 7: Capstone Key Milestones 2025: $100 million Revenue, $10 million Adjusted EBITDA
Capstone Key Milestones 2025 $100 million Revenue, $10 million Adjusted EBITDA * • By end of the year, targeting run - rate Re venue of $100 million and Adjusted Operating Income / EBITDA of $10 million for operating subsidiaries • We anticipate announcing a series of acquisitions throughout the yea
Slide 8: Acquisition Strategy
Acquisition Strategy THREE - PRONGED ACQUISITION STRATEGY Tuck In Acquisitions Grow Instone’s presence beyond the Northeast and Midwest into the South, Southeast, and Mountain States Sister Companies Invest in businesses with strong product or channel synergies that operate independently but align w
Slide 9: Performance of Instone in 2024
Performance of Instone in 2024
Slide 10: Instone Trends: 2024
Instone Trends: 2024 Rapid interest rate increases key factor affecting 2024 environment • From March 2022 to August 2023, 18 months, saw short term rates rise from near 0.0% to over 5.0%. • Existing home sales fail to keep up with household formation and are at near 30 year lows. By mid - year mark
Slide 11: Analysis of 2024 Profitability
(in USD $ 000s) Instone (GAAP) GP Adjustment at 23.5% Run rated SG&A Instone Adjusted at 23.5% GP (Non GAAP) Revenue 44,876 - - 44,876 COGS 35,306 (976) - 34,330 Gross Profit 9,569 976 - 10,546 Gross Profit % 21.3% 23.5% SG&A * 8,497 - (476) 8,021 Operating Income (Loss) / Adjusted EBITDA 1,073 976
Slide 12: 2024 Profitability Adjustments
2024 Profitability Adjustments Gross Margin: normalized • Gross Profit margin was affected by increased freight costs during Covid years which resulted in higher cost inventory on the balance sheet • Freight costs and have since normalized and by the end of 2024 costs returned to historical levels S
Slide 13: Instone: Seasonality Explained
Instone : Seasonality Explained • Cold winters tend to yield lower revenue in the first Quarter, followed by stronger months • Warmer winters tend to yield a stronger first Quarter followed by slightly softer months Seasonal temperatures impact the timing of Instone’s revenue throughout the year
Slide 14: Earnings Plan for 2025
Earnings Plan for 2025
Slide 15: 2025 - Instone Earnings Power
2025 - Instone Earnings Power 2025 Plan : F ocused O n O rganic Revenue Growth , M argin Expansion & C ost C ontrol * Excludes i) Capstone management fees, 2) Brookstone management fees, 3) Totalstone Board Fees, and 4) Depreciation and amorti zat ion. (in USD 000) Low Case Upside Case 2025 2025 Rev
Slide 16: Factors Affecting Performance
COMPANY FACTORS • Product l aunches • Territory e xpansion to Southeast and Mountain states • Market s hare gains • Operational e xcellence Factors Aftecting Performance GENERAL FACTORS • Weather variability • Housing shortage relative to household formation • Interest rates • Personal income and un
Slide 17: Capstone Corporate Costs
Capstone Corporate Costs Relatively Fixed: • Capstone CEO, Capstone CFO, corporate acquisition search costs, legal & insurance costs, board fees, other public company / financing costs Variable: • Investor Relations, IR/PR, marketing. These costs can be adjusted as required When valuing the business
Slide 18: Key Principles of Capstone
Key Principals Of Capstone TRANSPARENCY Clear View Into Performance Builds Trust ACCOUNTABILITY Enables Performance Management And Ownership ADAPTABILITY Expect to Update Range Every Quarter As Year Moves Forward
Slide 19: Appendix
Appendix
Slide 20: Reconciliation of Non-GAAP Results
Reconciliation of Non - GAAP Results In addition to figures prepared in accordance with GAAP, Capstone from time to time presents alternative non - GAAP performance measures, e . g . , EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow . These measures sho
Slide 21: Reconciliation of Non-GAAP Budget
Reconciliation of Non - GAAP Budget In addition to figures prepared in accordance with GAAP, Capstone from time to time presents alternative non - GAAP performance measures, e . g . , EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow . These measures shou
Slide 22: Financial Measures - Non-GAAP
Financial Measures - Non - GAAP Capstone uses non - GAAP Adjusted EBITDA as a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the United States (GAAP). A non - GAAP financial measure is a numerical measure
Slide 23: Growth Is Just Getting Started
GROWTH IS JUST GETTING STARTED. LEARN MORE AT www.capstoneholdingcorp.com
Capstone Holding — Investor Presentation (April 2025) on 6ix