Capital Southwest Corporation · NASDAQ:CSWC
Capital Southwest — Merger or Acquisition (May 2015)
11 slides from Capital Southwest's merger presentation, May 19, 2015
Slide 1: Acquisition of Strathmore Products, Inc. Investor Presentation
Acquisition of Strathmore Products, Inc.Investor Presentation 5400 Lyndon B. Johnson Freeway, Suite 1300 | Dallas, Texas 75240 | 972.233.8242 | capitalsouthwest.com May 2015
Slide 2: Safe Harbor Provision
Page * This investor presentation contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 relating to, among other things, CSWC’s future acquisition plans and strategies, barriers to entry into Strathmore’s businesses, future market demand, the
Slide 3: Use of Non-GAAP Financial Measures
Page * In addition to the financial information presented in accordance with U.S. GAAP, Capital Southwest Corporation (“CSWC”) uses “adjusted EBITDA,” a non-GAAP financial measure. CSWC presents non-GAAP financial information to enable investors to see its portfolio companies through the eyes of man
Slide 4: Overview of Strathmore Products
Page * Founded in 1942 (multi-generational family business)Headquartered in Syracuse, NY (significant operations in TX)Strathmore manufactures specialty industrial coatingsUrethanes (solvent and latex-based, single and two-part), epoxies (single and two-part), acrylics (solvent and latex-based), alk
Slide 5: Strathmore Products, Inc. transaction summary
Page * Strathmore Products, Inc. (“Strathmore” or the “Company”) is a leading formulator, developer and manufacturer of industrial coatings for use by certain OEM’s and maintenance providersStrathmore enjoys a leading market position in select end marketsPrimary markets include rail car, locomotive,
Slide 6: Transaction Rationale
Page * Strathmore will serve as the primary growth and acquisition platform for CSWC in the industrial coatings sectorSolid organic growth potential based on strong fundamentals in key end markets and opportunities for further penetration of existing customer relationshipsStrathmore’s primary market
Slide 7: Geographic Footprint
4 : trathmore Geographic Footprint Products, Inc. a Syracuse, NY 36K 39. ft Existing Operations * lay, NY 1. Syracuse, NY 1 2 Clay, NY 30K sq.ft. 3. Longview, TX 4. Houston, TX (Tolling Arrangement) Longview, Tx 36K sq. ft. HHI rary water-based = Primarily Solvent-based he [Rowen te ¢ ihe
Slide 8: Diverse Application Mix
Page * Diverse Application Mix
Slide 9: Market Overview
Page * Market Overview 2014 Revenue by End Market $63.2MM 2014 Addressable Market $3.5BN SOURCE: ChemQuest
Slide 10: Strong Historical Revenue Growth
Page * Strong Historical Revenue Growth 28.8% CAGR ($’s in millions) NOTE: Organic compound annual growth rate of 23.5%
Slide 11: Non-GAAP Reconciliation
Page * Non-GAAP Reconciliation ($’s in thousands)