Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — 27th Annual ROTH Conference (March 2015)
30 slides from Lakeland Industries's conference presentation, Mar 9, 2015
Slide 1: 27th Annual ROTH Conference
NASDAQ: LAKE 27th Annual ROTH Conference Christopher J. Ryan President and Chief Executive Officer March 9, 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: 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 – Health Care & Food Chain; High Tech – Government, Fire Department, Public Safety, DoD, CDC, etc. • Supplier to U.S. Distrib
Slide 4: Hobbled by Prior Dependence on DuPont Fabrics
HOBBLED BY PRIOR DEPENDENCE ON DUPONT FABRICS Tyvek/Tychem Sales History by Fiscal Year ($ Millions) 4
Slide 5: Tyvek/Tychem Sales History
Tyvek/Tychem Sales History ($000) 2014 2013 2012 2011 2010 2009 2008 2007 2006 Total North American Sales of DuPont Items $ 672 $ 2,778 $ 19,875 $ 31,354 $ 38,423 $ 49,092 $ 60,028 $ 72,069 $ 77,446 All Other International Sales - Non-DuPont $ 34,255 $ 49,451 $ 39,433 $ 33,517 $ 26,824 $ 19,926 $ 7,
Slide 6: Financial Issues Through 2014
Financial Issues Through 2014 Company In A Sharp Turn Around Mode • Brazil pulled the Company down 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 in May 2013. First quarter of fiscal 2015 Adjusted EBITDA, exclud
Slide 7: Proof Of Turn Around
Proof Of Turn Around 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 • Financial Results Highlights – Third Quarter/9 Months of Fiscal 2015 o Q3 Sales worldw
Slide 8: 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 8
Slide 9: End-user Segments
End-user Segments 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: Frost & Sullivan Estimates (2014-2015)
Slide 10: 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 11: Product Mix (FY2014)
Product Mix (FY2014) Homeland Security Chemical Suits 6.9% High Visibility 7.7% Glov es & Arm Protection Revenue Composition FY2014 3.9% Domestic 51.1% Fire and Heat Protectiv e Clothing and other International 48.9% Wov ens 17.7% Disposable Clothing 63.9% Homeland Security Chemical Suits Gloves & A
Slide 12: 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 13: Global Presence
Global Presence Sales Office (13) Manufacturing Location (6) Headquarters: Ronkonkoma, New York 13
Slide 14: International Traction
International Traction • International Growth – Foreign Revenues Comprise 48.2% of Total in 3QFY15 • 5 Foreign Manufacturing Locations – New, more efficient plant in Mexico – Additional sewers hired in China – India discontinued, 2012 • Sales Efforts Accelerating Since 2007/08 – China in-country sal
Slide 15: Lakeland Mexico facility
Lakeland‘: INDUSTRIAS LAKELAND S.A. DE C.V. aii ean ee LN 15
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Slide 17: Lakeland Industries Asia Pacific
Lakeland (: LARELAND INDUSTRIES ASIA PACLPIC 17
Slide 18: Lakeland (:
Lakeland (: CARE DARE. CN DAES TREES: A SAS PAC CEE @ 18
Slide 19: Lakeland Industries Asia Pacific
‘) td LAKELAND INDUSTRIES ASIA PACIFIC 19
Slide 20: Diversification Strategy & Transition
Diversification Strategy & Transition Area FY2005 FY2015 Multi-sourced, lower priced COGS/Raw Materials Tied to DuPont fabrics than DuPont 29.9% in F14 and 34.9% in 3QF15 Pricing Power: Gross Margin 21.4% (excluding Brazil) Sales Channel Distributors Direct Sales and Key Distributors Diversified: Fi
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 • Expand/Introduce New Products Reflective line and other higher margin products Turn-out Gear/Fire Coats Chemica
Slide 22: Ebola Crisis
Ebola Crisis • Significant Global Demand for ChemMAX® and MicroMAX® Protective Suit Lines • ISO 9001 Standards; Certified to Pass Specific Tests Based on Industry Guidelines and Applications, Including ASTM and EN • Manufacturing of Select Lines of These Garments Involves Proprietary Processes for S
Slide 23: Ebola Crisis
Ebola Crisis Personal Protective Equipment (PPE) » Guidance for PPE 1.A primary fabric that passes either of these standards jum standard suggestions: How Small is The Ebola Virus? Has been certified Has been tested per European Stan- and passed North dards to EN 14126 and American Standards, attain
Slide 24: Ebola Crisis: Manufacturing Capacity Increased
Ebola Crisis Manufacturing Capacity Increased • Accelerated Capital Investments for Machinery; No Material Change in FY2015 Capital Expenditure Plan vs. Prior Year • Hired Additional Manufacturing Personnel; Second Shift Options • Monthly Production Capacity for Sealed Seam ChemMAX and MicroMAX Line
Slide 25: Ebola Crisis
Ebola Crisis 25
Slide 26: Ebola Crisis: Advantage Lakeland Industries
Ebola Crisis Advantage: Lakeland Industries • Validation of Product Quality, Design and Manufacturing Expertise • Proven Global Capabilities, Enhanced Global Brand • Penetration into Healthcare Sector • Direct/Indirect Sales Channels to New Public/Private Sector Customers • Increased Manufacturing C
Slide 27: Attractive Investment Merits
Attractive Investment Merits NASDAQ: LAKE Pre-Ebola Crisis •Strong International Revenue Growth (excluding Brazil) •Significant Sales and Margin Expansion Catalysts LAKE Stock Information •EBITDA Upside Potential •Track Record of Profitability from Cont. Ops. -- Share Price $10.01 20 Consecutive Yea
Slide 28: Appendix
Appendix 28
Slide 29: Balance Sheet Highlights
Balance Sheet Highlights ($ in 000s) October 31, 2014 (Unaudited) Assets Cash $7,047 Accounts Receivable, net 15,098 Inventories, net 38,921 Other 8,808 Total Current Assets $69,874 Property and Equipment $11,768 Other Assets 5,120 Total Assets $86,762 Liabilities and Stockholders’ Equity Current Li
Slide 30: Ebola Crisis: Infectious Agent Data Chart
Ebola Crisis Infectious Agent Data Chart 30
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