Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (May 2008)
19 slides from Smith & Wesson Brands's investor presentation, May 20, 2008
Slide 1: Michael Golden, President/CEO; John Kelly, CFO – May 2008
Michael Golden, President/CEO John Kelly, CFO May 2008
Slide 2: Forward-looking statements
Smith & Wesson Holding Corporation Certain statements contained in this presentation may be deemed to be forward-looking statements under federal securities laws, and the Company intends that such forward- looking statements be subject to the safe-harbor created thereby. Such forward-looking stateme
Slide 3: Experienced Management Team
Michael Golden, President/CEO 31 Yrs: Kohler, Stanley Works, Black and Decker, Procter & Gamble John Kelly, CFO 24 Yrs: Smith & Wesson Leland Nichols, President, Smith & Wesson Firearms 23 Yrs: Kohler, Stanley Works, Black and Decker Tom Taylor, VP Marketing 25 Yrs: Coca Cola, Frito-Lay Tom Fimmen,
Slide 4: Delivering exceptional growth
Delivering exceptional growth Net Product Sales ($ in Millions) Earnings per Share ($, Diluted) Net Income ($ in Millions) 2004-2007 Revenue +99% EPS +1450% 0 2 4 6 8 10 12 14 2004 2005 2006 2007 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 2004 2005 2006 2007 0 50 100 150 200 250 2004 2005 2006 2007
Slide 5: Company Profile
Company Profile 156-year old American firearms company Largest handgun manufacturer in the world 1500 Employees in three non-union, U.S. factories: Experienced management team Springfield, MA; Houlton, ME; Rochester, NH LTM Sales by Product LTM Sales by Customer LTM Sales by Geography International,
Slide 6: S&W: 87% Brand Awareness
S&W: 87% Brand Awareness Source: American Sports Data - Nov, 2004 A company-sponsored, 2004 survey asked consumers about their future purchase intent: Product / Service S&W Rank Current Status Revolvers #1 Served Pistols #1 Served Tactical Rifles #1 Entered - February 2006 Shotguns #3 Entered - Apri
Slide 7: Growth Strategy
Growth Strategy Drive Growth in Handgun Market Use "Safety-Security-Protection-Sport" platform to enter new markets while driving growth in our core businesses Innovative Products Law Enforcement Military/Federal Gov't International Sporting Goods Long Guns Homeland Security Criminal Investigation L
Slide 8: Consistent Quarterly Growth
Consistent Quarterly Growth (Year over Year Growth %) Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q3-08 Q2-08 43% 59% 56% 39% 23% 40% 50% 44% 24% 22% 15% 10% 13% 1% - -4% - -10% 0% 10% 20% 30% 40% 50% 60% 70%
Slide 9: Leading Market Position
$87MM* 15% $578MM S&W 2007 (Includes Walther Products) Market 2006 2006 (CALENDAR) U.S. DOMESTIC NON-MILITARY MARKET - 2007 (FISCAL) S&W SALES $154MM $68MM 44% SOURCE: BATF 2006 Excise Tax Study & Smith & Wesson Management Estimates Leading Market Position Revolvers Pistols *Does not include $10MM i
Slide 10: Four Key Sales Channels: Sporting Goods
Four Key Sales Channels SPORTING GOODS Delivering full range: pistols, revolvers, rifles, shotguns Revolutionary marketing and consumer pull programs S&W Consumer Sales ($ In Millions) 8% 8% 24% 32% 37% 52% 41% 78% 99% New Sales Structure Established 57% 32% $0 $10 $20 $30 $40 $50 $60 $70 $80 Q1-06
Slide 11: Four Key Sales Channels: Law Enforcement, Federal, International
Four Key Sales Channels SPORTING GOODS Delivering full range: pistols, revolvers, rifles, shotguns Revolutionary marketing and consumer pull programs LAW ENFORCEMENT Market Size: 17,000 Departments and 800,000 Officers M&P Series polymer pistols launched January 2006 Win rates: 80%+ with pistols (32
Slide 12: Addressing New Growth Opportunities
Addressing New Growth Opportunities Safety...Security...Protection...Sport Homeland Security Products and Services Surround the Police Officer Surround the Foot Soldier Currently Exploring Defense Related Products and Services Firearms Law Enforcement Products and Services Handguns Long Guns
Slide 13: Proven success in entering new markets
Proven success in entering new markets SOURCE: BATF 2006 Excise Tax Study and Smith & Wesson Management Estimates Based on 2006 vs. 2007 data from top 3 distributors. The long gun market is 50% larger than the handgun market 2006 U.S. DOMESTIC NON-MILITARY MARKET Bolt-Action Rifles $480mm (43%) Shot
Slide 14: Building the Brand: Licensing
Building the Brand: Licensing Upgrading Retail Licensee Portfolio: Wilsons Leather, Wellco Enterprises (military boots), Zippo (lighters), Gun Safes, Gun Cleaning Products, Hats/T-shirts, Automotive, Security Systems Establishing licensees in professional markets where Smith & Wesson can do business
Slide 15: Enhancing Productivity
Enhancing Productivity Achievements through FY 08: - Delivery improved from 70% to over 90% - Machine uptime improved to 87% - Guns/day output +50% vs '06 - Productivity ratio + 5% vs prior year Blending craftsmanship with technology: - Implementing Smith & Wesson Operating System - Investing in Equ
Slide 16: Quarterly Income Statement Summary
Quarterly Income Statement Summary (US$ in millions, except per share data) 2007 2008 2007 2008 Sales $54.4 $66.6 $153.8 $212.8 Gross Profit 17.0 16.6 49.7 66.9 Gross Margin 31.3% 25.0% 32.3% 31.4% Operating Income $3.6 $0.3 $14.8 $16.7 Net Income/(Loss) $1.6 ($1.8) $7.8 $5.8 EPS $0.04 ($0.04) $0.19
Slide 17: Annual Income Statement Summary
Annual Income Statement Summary Sales: +5% Net Income: +531% Sales: +27% Net Income: +66% FY 07 Results reflect Thompson acquisition, including approximately $2.7 million in amortization of inventory FMV valuation and acquisition related intangibles Sales: +49% Net Income: +49% Growth: Year Ended Ap
Slide 18: FY08 Annual Guidance
FY08 Annual Guidance We, like many other companies doing business today, find ourselves now in an uncertain business environment. We therefore do not confirm the guidance we gave on December 6, 2007, nor do we give any guidance at this time. To be clear, we are giving no guidance today. We cannot te
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