Xcel Brands, Inc · NASDAQ:XELB
Xcel Brands — Investor Presentation (June 2023)
31 slides from Xcel Brands's investor presentation, Jun 14, 2023
Slide 1: Xcel Brands Investor Presentation
NASDAQ: XELB XCEL BRANDS (06/05/23) INVESTOR PRESENTATION
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this presentation, as well as certain oral statements made by management during the presentation, constitute “forward - looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements incl
Slide 3: Table of Contents
TABLE OF CONTENTS I OUR OVERVIEW II THE BUSINESS MODEL III GROWTH OPPORTUNITIES IV FINANCIAL OVERVIEW V MANAGEMENT TEAM 3
Slide 4: Our Overview
OUR OVERVIEW 4
Slide 5: Xcel is a consumer products and social commerce company
XCEL IS A CONSUMER PRODUCTS AND SOCIAL 5 COMMERCE COMPANY GE N E R A T I N G APPROXIMATELY $600 MILLION ANNUAL R E T A I L SALES R O B E R T D ’ L O R E N , C E O
Slide 6: We imagine shopping, entertainment and social media as one thing
“ W e imagine shopping, entertainment and 6 social media as one t h i n g ” – R O B E R T D ’ L O R E N , C E O
Slide 7: Executive Summary: Proprietary Technology and Creative Powerhouse
P R O P R I E TA R Y T E C H N O L O G Y I n d u s tr y - l e a d i n g pr opr i e t a r y S o c i a l C o m m e r c e t e c h n o l o gy d e s i g n e d t o d r i v e a u d i en c e , en g a g em en t a n d s a l e s o f pr o d u c t s C R E AT I V E P O W E R H O U S E H i g h l y e x p e r i en c
Slide 8: Financial Strength
F I N A N C I A L S T R E N G T H W orking capital light business m odel, which prior to 2020 ad the economic impact f ro m C ovid - 19 , a historical track record of re ve nue and Adjusted EBITDA growth,which has enab led investments in our brands and technology 8 P ROFI TA B L E B USI NESS M ODE L
Slide 9: Our Evolution 2011-2022
OUR EVOLUTION 2011 2020 2015 2011 - 2016 BUILDING THE FOUNDATION Acquired Isaac Mizrahi, Judith Ripka, Halston and C. Wonder Significant growth across our brands in Direct - Response Television and licensing Over $1BB of Live Stream Shopping sales at retail 2012 2016 2014 2017 2021 2018 2019 2022 20
Slide 10: Our Evolution 2023-Forward
OUR EVOLUTION 10 2023 - FORWARD LEADING SOCIAL COMMERCE PLATFORM Planned launch of Social Commerce marketplace adding new brands to our platform through incubation, partnerships and future acquisitions Development and expansion of new and existing brands across all channels of distribution through L
Slide 11: Our Core Brands
OUR CORE BRANDS Note: All brands are fully owned by Xcel Brands Inc. other than (i) Isaac Mizrahi which represents a minority interest retained ownership and (ii) Longaberger which represents a 50% ownership position in the business by Xcel. 11
Slide 12: Sales at Retail
SALES AT RETAIL WE OWN STRONG BRANDS THAT RESONATE WITH CONSUMERS Retail Sales include actual retail sales where reported, as well as estimates based on a combination of our net wholesales and reported net wholesales of our licensees, converted to estimated retail sales applying a reasonable mark -
Slide 13: The Business Model
THE BUSINESS MODEL 13
Slide 14: Business Model Overview
BRAND DEVELOPMENT LICENSING DESIGN AND CREATIVE MARKETING AND CONTENT PRODUCTION SOCIAL COMMERCE TECHNOLOGY PLATFORM XCEL has built a working capital light operating and technology platform designed to build brands and drive sales through Live - Streaming and Social Commerce BUSINESS MODEL OVERVIEW
Slide 15: The Rise of Social Commerce
15 THE RISE OF SOCIAL COMMERCE Billions are now up for grabs as ecommerce, live streaming, and social media are evolving into Social Commerce marketplaces powered by short form video content, with an estimated 20% of all online sales expected to be driven by social commerce by 2026 (1) As compared w
Slide 16: Social Commerce Technology
SOCIAL COMMERCE TECHNOLOGY We have created a multi - brand short - form video content platform with the ability for shoppers, creators, and influencers to earn fees based on conversions . It combines live streaming, e - commerce and social media in one seamless social commerce platform which drives
Slide 17: Growth Opportunities
GROWTH OPPORTUNITIES 17
Slide 18: Key Growth Strategies
KEY GROWTH S T R A T E G I E S GROW EXISTING BRANDS SOCIAL COMMERCE OPPORTUNITIES PURSUE AQUISITIONS 18
Slide 19: New partnership with G-III Apparel Group
June 2023, new partnership announced with GIII Apparel Group An industry - leading public company with sales over $2BB annually, is expected to grow the brand over the next several years with substantial investments and brand marketing Ken Downing as Creative Director, relaunching the brand in premi
Slide 20: New partnership with JTV
New partnership with JTV , an industry leader in jewelry Live Stream commerce with over $500MM of annual retail sales who will take over the Live Stream, wholesale, and D2C channels - 900% growth in revenues from 2019 - 2021 driven by continued growth of independent jeweler distribution and Live Str
Slide 21: QVC business growth trajectory
QVC business back on a strong growth trajectory for 2023 with regular shows in primetime New collection for better retailers in development Expansion through licensing, DTC and Social Commerce Raising brand awareness through collaborations, most recently with AnaOno and Smiley 21
Slide 22: Christian Siriano as Creative Director
Christian Siriano as new Creative Director announced 1Q’23 Relaunched on HSN in 2Q’23 with extremely high engagement and aggressive growth planned New categories planned to launch in 2024 including handbags, footwear, jewelry, seasonal accessories and travel 22
Slide 23: Isaac Mizrahi brand update
New D2C website launched in 2022 boasts high engagement New sportswear license signed in 4Q’22 for distribution outside of QVC and through DTC website International partners and new categories in discussion Remains top performing designer apparel brand in Direct Direct - Response Television channel
Slide 24: Longaberger brand update
Premium social commerce and Live Streaming home products company with over 5 , 000 nano influencers as stylists and 300 , 000 customers Significant growth potential through digital marketing efforts, stylist recruiting, and expansion of vendors Additional growth opportunities through licensing and i
Slide 25: Social Commerce Opportunities
SOCIAL COMMERCE OPPORTUNITIES NEW SOCIAL - COMMERCE DRIVEN BRANDS We are currently developing new brands in collaboration with designers and other social media influencers who have millions of followers and are positioned to succeed in Live Stream and Social Commerce. We plan to launch 2 - 4 new bra
Slide 26: Acquisitions
AQUISITIONS SEPTEMBER 2011 APRIL 2014 JUNE 2015 SALE - MAY 2022 DECEMBER 2014 APRIL 2022 Since 2011 we have sought the acquisition of brands and businesses that we believe we can grow through Social Commerce, with an average of one acquisition every two years . We seek to divest and/or harvest our b
Slide 27: Financial Overview
FINANCIAL OVERVIEW 27
Slide 28: Revenue and Adjusted EBITDA
REVENUE AND ADJUSTED EBITDA (1)Launched wholesale divisions in jewelry and apparel to enhance brands (2)Invested over $5MM in technology and systems from 2020 - 2022 (3)Sold Isaac Mizrahi in May 2023, resulted in revenue reduction of $16MM and EBITDA reduction of approximately $6.8MM (4)Restructure
Slide 29: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 2019 020 21 2022 Cash” 4,641 4957 $ 4483 $ 4608 $ 6612 Current Assets 17,566 16,147 17,179 14,020 16,712 TOTAL Assets 143,191 123,054 125,781 88,935 89,161 Current Liabilities" 8085 $ 8215 $ 9310 $ 5,185 $ 6,581 Operating Lease Obligations 11,525 10,570 8,459 7,215 6,926 TOT
Slide 30: Investor Relations Contact
NASDAQ: XELB INVESTOR RELATIONS CONTACT: IR@XCELBRANDS.COM 30
Slide 31: Exhibit A: Reconciliation of Adjusted EBITDA
EXHIBIT A RECONCILIATION OF ADJUSTED EBITDA 31