Xcel Brands, Inc · NASDAQ:XELB
Xcel Brands — Investor Presentation (June 2014)
29 slides from Xcel Brands's investor presentation, Jun 6, 2014
Slide 1: Differentiate By Design – Investor Update June 2014
XCEL BRANODS Differentiate By Design INVESTOR UPDATE June 2014
Slide 2: Safe Harbor
SAFE HARBOR THIS PRESENTATION CONTAINS FORWARD - LOOKING STATEMENTS BASED ON CURRENT EXPECTATIONS, ESTIMATES, AND PROJECTIONS ABOUT THE COMPANY'S OPERATIONS, INDUSTRY, FINANCIAL CONDITION, PERFORMANCE, AND RESULTS OF OPERATIONS. STATEMENTS CONTAINING WORDS SUCH AS "GUIDANCE , " " MAY ," " BELIEVE,"
Slide 3: Differentiate by Design – Our Mission
3 Differentiate by Design OUR MISSION: TO DESIGN AND PRODUCE THE BEST PRODUCTS FOR OUR FOLLOWERS AND PARTNERS
Slide 4: Our business model is built for today's new social era
4 OUR BUSINESS MODEL IS BUILT FOR TODAY’S NEW SOCIAL ERA WE ARE A TOTAL OMNICHANNEL COMPANY
Slide 5: Our Brands
OUR BRANDS mmm || SIZ, ISAACMIZRAHILIVE JUDITH RIPKA 1 JUDITH RIPKA
Slide 6: Isaac Mizrahi brand overview
6 x 56 Licenses x 5 DTR Partnerships x 150 Product Categories x 1,000+ Better Department Store Doors x 3 Lifestyle Stores (1) x USA , Mexico, Canada, Middle East, Philippines (1) Includes e - commerce at www.isaacmizrahi.com
Slide 7: Isaac Mizrahi Live direct-response TV brand overview
7 x 2 DTR’s x 30 Product Categories x 2 Direct Response TV Networks x USA, Canada, UK x 1 DTR x 20 Product Categories x 1 Direct Response TV Network x USA, UK
Slide 8: Judith Ripka brand overview
8 x 2 Licenses x 5 Product Categories x Luxury Department Store and Independent Jeweler Distribution x 3 Lifestyle Stores (1) x USA , Russia, Ukraine, Middle East x 2 DTR’s x 10 Product Categories x 2 Direct Response TV Networks x USA, Canada, UK, Italy, Japan JUDITH RIPKA (1) Includes e - commerce
Slide 9: Diversified omnichannel distribution
9 DIVERSIFIED OMNICHANNEL DISTRIBUTION LTD JUDITH RIPKA LUXURY BETTER DIRECT - RESPONSE OFF - PRICE SPECIALTY/BIG - BOX TIER CHANNELS BRANDS Collection JUDITH RIPKA LEGACY JUDITH RIPKA
Slide 10: Global expansion on direct-response TV
10 GLOBAL EXPANSION ON DIRECT - RESPONSE TV USA CANADA UK GERMANY ITALY FRANCE JAPAN CHINA (Planned 2015) (Est. 2015/2016) (Planned 2015) (Est. 2015/2016) (Est. 2015) (Est. 2015) (Est. 2015) (Planned 2015) (Est. 2015/2016) (Est. 2015/2016) (Est. 2015/2016) NORTH AMERICA EUROPE ASIA (Planned 2015)
Slide 11: Better retail brand positioning – Isaac Mizrahi New York
11 Modern Traditional B e t t e r R e t a i l e r s B r i d g e R e t a i l e r s MICHAEL Michael Kors Lauren by Ralph Lauren Tommy Hilfiger Elie Tahari Vince Tory Burch DVF Marc by Marc Jacobs Lilly Pulitzer Rachel Zoe Kate Spade Vineyard Vines J.Crew Juicy Couture BCBGMAXAZRIA Eileen Fisher Anne K
Slide 12: Better retail brand positioning – Judith Ripka Ltd
12 Tiffany’s & Co. Modern Better Retailer Bridge/Luxury Retailer Traditional David Yurman Ippolita Cartier Van Cleef & Arpels Harry Winston Bulgari Asprey Mikimoto Piaget Eddie Borgo Alexis Bittar Jennifer Meyer Jennifer Fisher Stephen Dweck Solange - Azasury - Partridge Konstantino Stephen Webster
Slide 13: Direct-response TV brand positioning – Isaac Mizrahi Live
13 Traditional Every Day Designer Contemporary Luxe Rachel Zoe Bob Mackie Susan Graver Joan Rivers George Simonton Women in Control Quacker Factory Denim & Co. Attitudes by Rene Logo by Lori Goldstein K - Dash by Kardashian Dennis Basso American Glamour Badgley Mischka DKNY Jeans IMAN Jeffrey Banks
Slide 14: Direct-response TV brand positioning – Judith Ripka
14 DIRECT - RESPONSE TV BRAND POSITIONING JUDITH RIPKA Modern $ $$$$ Traditional Robert Lee Morris John Hardy Michael Dawkins Jacqueline Kennedy Affinity Diamond Steel by Design Arte d’Argento Argento Nuovo Joan Rivers Honora EternaGold Epiphany Bronzo Italia Ultra Fine Susan Graver Vicenza SoHo Bou
Slide 15: Key growth opportunities
15 KEY GROWTH OPPORTUNITIES: Grow Existing Business Category Extensions Direct - to - Consumer (Retail) Acquisitions
Slide 16: Key growth opportunities: Grow existing business
16 KEY GROWTH OPPORTUNITIES: Grow Existing Business Category Extensions Direct - to - Consumer (Retail) Acquisitions
Slide 17: Grow existing business: direct-response TV
17 ▪ Key Strategies : x Continue to Increase Productivity x Launch New Categories x Expand Geographies x Increase On - Air Hours x Increase % of Online Sales x Engage direct - response TV customers DIRECT - RESPONSE TV IS A STRONG AND GROWING DISTRIBUTION CHANNEL WITH EXTRAORDINARY CUSTOMER ENGAGEME
Slide 18: Grow existing business: licensing
18 ▪ Key Strategies: x Grow distribution of existing categories (stores and doors) x Continue to bring signed licensed categories to market x Enter into licenses for new categories x Enter into international license and distribution agreements ISAAC MIZRAHI NEW YORK AND JUDITH RIPKA LTD GROW EXISTIN
Slide 19: Growth in existing business – retail sales scorecard
19 2011 (pro - forma) 2012 2013 2014 (projected) (1) TOTAL SALES AT RETAIL (2)(3) $114MM $142MM $212MM $390MM Xcel Brands Revenue (3) - $12.7MM $13.4MM $21.4MM Xcel Brands Adjusted EBITDA (3) - $4.5MM $3.9MM $6.4MM (1) Projections for 2014 are preliminary based on certain growth assumptions and are
Slide 20: Key growth opportunities: Category extensions
20 KEY GROWTH OPPORTUNITIES: Grow Existing Business Category Extensions Direct - to - Consumer (Retail) Acquisitions
Slide 21: Direct-to-retail and promotional opportunities
21 DIRECT - TO - RETAIL AND PROMOTIONAL OPPORTUNITIES CATEGORY EXTENSIONS ▪ Key Strategies: x Sign new Direct - to - Retail (“DTR”) Partnerships with retailers in key categories x Sign new partnership/spokesperson deals for our designers/celebrities x DTR licenses and partnership/spokesperson deals
Slide 22: Category extensions operating metrics scorecard
22 x New Licenses under our B rands x New International Licenses for Wholesale and ITV x New Collaborations/Co - Branding Opportunities x New Market Segments x Increased Door Count CATEGORY EXTENSIONS OPERATING METRICS SCORECARD 2011 2012 2013 2014 (proj.) (1) ▪ Categories Signed: Signed Licenses Ca
Slide 23: Key growth opportunities: Direct-to-consumer
23 KEY GROWTH OPPORTUNITIES: Grow Existing Business Category Extensions Direct - to - Consumer (Retail) Acquisitions
Slide 24: Direct-to-consumer distribution
24 DIRECT - TO - CONSUMER DISTRIBUTION ▪ Key Strategies: x Retail stores opened under the Isaac Mizrahi New York Brand (1 st store opened May 2013, 2 nd store opened February 2014) x E - commerce for IMNY launched May 2014 x E - commerce for Judith Ripka LTD acquired April 2014; 2 additional Judith
Slide 25: Key growth opportunities: Acquisitions
25 KEY GROWTH OPPORTUNITIES: Grow Existing Business Category Extensions Direct - to - Consumer (Retail) Acquisitions
Slide 26: Acquisitions – criteria gates
26 ACQUISITIONS - GATES MUST MEET ALL OF THE FOLLOWING CRITERIA TO BE CONSIDERED: Strategic Synergistic Accretive x x x
Slide 27: Positioned for the future
27 We Believe: The Way People Shop will continue to Change The Acceleration of Change will continue to increase The Way We Need to Reach our Customers will continue to Change Our focus o n Design and OmniChannel d istribution in this New Social Era positions us well to benefit from the Changes that
Slide 28: Appendix A – Non-GAAP Financial Information
28 APPENDIX A - NON - GAAP FINANCIAL INFORMATION Statements included in the presentation include non - GAAP measures and should be read along with the accompanying tables which provide a reconciliation of non - GAAP measures to GAAP measures . Adjusted EBITDA is a non - GAAP measure and excludes int
Slide 29: Xcel Brands – Differentiate By Design
XCEL BRANDS Differentiate By Design June 2014