Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — Craig-Hallum 6th Annual Alpha Select Conference 2015
30 slides from Lakeland Industries's conference presentation, Sep 17, 2015
Slide 1: Craig-Hallum 6th Annual Alpha Select Conference
NASDAQ: LAKE Craig-Hallum 6th Annual Alpha Select Conference September 17, 2015 Emerging Markets Exposure… …Western Markets Expertise
Slide 2: Safe Harbor Statement
Safe Harbor Statement With the exception of historical information, the statements set forth in this presentation include forward-looking statements that involve risk and uncertainties. The company wishes to caution that a number of important factors could cause actual results to differ materially f
Slide 3: Christopher J. Ryan and Teri Hunt
Christopher J. Ryan President and Chief Executive Officer Teri Hunt Acting Chief Financial Officer 3
Slide 4: Lakeland At A Glance
Lakeland At A Glance • Leading Manufacturer of Industrial Protective Clothing • Serving All Major Markets – Chemical/Petrochemical – Basic Industry: Auto, Steel, Construction, Electric & Gas Utilities – Health Care & Food Chain; High Tech – Government, Fire Department, Public Safety, DoD, CDC, etc.
Slide 5: Hobbled by Prior Dependence on DuPont Fabrics
HOBBLED BY PRIOR DEPENDENCE ON DUPONT FABRICS Tyvek/Tychem Sales History by Fiscal Year ($ Millions) $120 $100 $80 $60 $40 $20 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Non-DuPont Items Total DuPont Items Total 5
Slide 6: Tyvek/Tychem Sales History
Tyvek/Tychem Sales History FISCAL YEAR 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 ($ 000) Total North American Sales of DuPont Items $ 0 $ 672 $ 2,778 $ 19,875 $ 31,354 $ 38,423 $ 49,092 $ 60,028 $ 72,069 $ 77,446 All Other International Sales - Non-DuPont $ 49668 $ 34,255 $ 49,451 $ 39,433 $
Slide 7: Financial Issues Through 2014
Financial Issues Through 2014 Company In A Sharp Turn Around Mode • Brazil pulled the Company down so completely with $34 million of losses over a 3 year period to the point where a “Going Concern Opinion” was a very short term reality in May 2013. • As a result, stock hit all time low below $4.00 i
Slide 8: Proof Of Turn Around from FY2014-FY2016
Proof Of Turn Around from FY2014-FY2016 New Financings and Return to Growth • New financing of $15.0 million Senior debt and $3.5 million Junior debt during 2QFY14 • PIPE common stock issuance for $11.1 million completed in 3QFY15 • April 2015: Announced determination to exit Brazil through sale of
Slide 9: Lakeland Product Overview
Lakeland Product Overview Limited Use/Disposable Chemical Suits High Visibility Clothing Protective Clothing Fire Fighting & Heat Protective Gloves & Arm Guards Apparel/Reusable Woven Garments 9
Slide 10: End-user Segments for Personal Protective Equipment
End-user Segments for Personal Protective Equipment Gas Detection Other 6% 21% Utilities 9% Petrochemical 10% Auto 11% Construction Metals 10% 8% Transport Healthcare Pulp & Paper 7% 9% 7% Lakeland End-user Segments Address Over 55% of Total Market but the Company Possesses Less Than 1% Source: Fros
Slide 11: Personal Protective Equipment Market
Personal Protective Equipment Market Footwear Gas Detection Head Fall 13% 6% 2% 4% Eye Hand 6% 29% Respiratory 15% Hearing Protective Clothing 3% 22% Lakeland Product Segments Address Over 50% of $23 Billion Market but the Company Presently Represents Less Than 1% of the Total Addressable Market (TA
Slide 12: Product Mix (FY2015)
Product Mix (FY2015) Homeland Security Chemical Suits 7.1% High Visibility 6.8% Glov es & A rm Protection 3.6% Fire and Heat Protectiv e Clothing and other Wov ens 15.3% Disposable Clothing 67.1% Homeland Security Chemical Suits Gloves & Arm Protection Revenue Composition FY15* Fire and Heat Protect
Slide 13: CAGR for Market Segments
Growth Opportunities Lakeland Target Markets Among Largest and Fastest Growing High CAGR for Market Segments (>6%) 3 2 1 Head/Eye/Face 7 6 5 4 1 2 Respiratory Medium (2%-6%) 3 Hand 4 Hearing 5 Prot. Apparel Low 6 Foot (0%-2%) 7 Fall Prot. Small Medium Large (<$1.0 billion) ($1.0-$2.5 billion) (>$2.5
Slide 14: Global Presence
Global Presence Sales Operations (15) Manufacturing Location (5) Headquarters: Ronkonkoma, New York 14
Slide 15: International Traction
International Traction • International Growth – Foreign Revenues Comprised 49.8% of Total in FY15 International Revenues ($ Millions) • Manufacturing Locations – New, more efficient plant in Mexico 60 – Additional sewers hired in China 50 – India sewing operations, 2014 • Sales Efforts Accelerating
Slide 16: Industrias Lakeland S.A. de C.V.
Lakeland‘: INDUSTRIAS LAKELAND S.A. DE C.V. Ses - ee A a 16
Slide 17: Lakeland Industries Asia Pacific
Lakeland‘: LAKELAND INDUSTRIES ASIA. PACIFIC 17
Slide 18: Lakeland Industries Asia Pacific
Lakeland (: LARELANS ENDAPS TREES ASIA PACUELE @ 18
Slide 19: Lakeland Industries Asia Pacific
‘| Lakeland (2 LAKELAND INOUSTRIES ASIA PACIFIC 19
Slide 20: Diversification Strategy & Transition
Diversification Strategy & Transition (through the half year ended July 31) Area FY2005 FY2016 Multi-sourced, lower priced COGS/Raw Materials Tied to DuPont fabrics than DuPont 29.2% in F14, 31.3% in F15 and Pricing Power: Gross Margin 21.9% 38.9% in F16 (excluding Brazil) Sales Channel Distributors
Slide 21: Growth Catalysts
Growth Catalysts • Concentration on High Growth: CHINA, RUSSIA, PACIFIC ALLIANCE & MERCOSUR TRADE PACTS • Focus on Countries or Industries Benefiting from Industrial and GDP Growth, Global Adoption of OSHA-like Regulations • Expand/Introduce New Products Reflective line and other higher margin pro
Slide 22: Unique Operating Platform
Unique Operating Platform • Our Unique Operating Platform Highlighted by Ebola and Avian Flu as Latest of Crises that Positively Impact Business • Ebola Crisis Case Study – Significant Global Demand for ChemMAX® and MicroMAX® Protective Suits – ISO 9001 Standards; Certified to Pass Specific Tests Ba
Slide 23: Attractive Investment Merits
Attractive Investment Merits NASDAQ: LAKE • Turn Around Strategy Yielding Results LAKE Stock Information • Domestic Sales Growth Now Visible and Driven by Increasing Demand for Lakeland Brands Share Price $10.97 • Strong International Revenue Growth (excluding Brazil) Shares (FD Issued & O/S) 7.2 mi
Slide 24: Appendix
Appendix 24
Slide 25: Balance Sheet
Balance Sheet LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except share data) ASSETS July 31, January 31, 2015 2015* Current assets ($000’s) ($000’s) Cash and cash equivalents $5,065 $6,709 Accounts receivable, net of allowance for doubtful accounts
Slide 26: Condensed Consolidated Balance Sheets: Liabilities and Equity
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except share data) LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $8,508 $7,763 Accrued compensation and benefits 1,047 1,120 Other accrued expenses 1,696 1,462 Liabilities of di
Slide 27: Annual Income Statement
Annual Income Statement LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except share data) (Unaudited) Years Ended January 31, 2015 2014 Net sales $99,734 $91,385 Cost of goods sold 66,022 66,551 Gross profit 33,712 24,833 Operating expenses S
Slide 28: Quarterly Income Statement
Quarterly Income Statement LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except share data) (Unaudited) Three Months Ended Six Months Ended July 31, July 31, ($000’s) ($000’s) except for share information except for share information 2015 20
Slide 29: Quarterly Operating Earnings and Adjusted EBITDA Reconciliation
Quarterly Operating Earnings and Adjusted EBITDA Reconciliation Operating Results as Restated for Discontinued Operations ($ 000) Reconciliation to GAAP Results Quarter Ended July Quarter Ended 31, 2015 July 31, 2014 Net sales from continuing operations $29,465 $22,812 Year over year growth 29.2% --
Slide 30: Strategic Initiatives
Strategic Initiatives • Analytics and Market Information Development • Capitalize and Expand International Markets • Build the Brand to Increase Profitability • Cost reduction/Control • Easy to do Business With 30
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