Xcel Brands, Inc · NASDAQ:XELB
Xcel Brands — B. Riley & Co. 17th Annual Investor Conference (May 2016)
27 slides from Xcel Brands's conference presentation, May 25, 2016
Slide 1: Investor Presentation
(NASDAQ:XELB) Investor Presentation B. Riley & Co. 17th Annual Investor Conference May 25, 2016 I LOVE XCEL BRANDS
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 include, wi
Slide 3: Agenda
Agenda INDUSTRY UPDATE COMPANY OVERVIEW Working Capital Light, Owned Dynamic Brands, Virtual Vertical, Highly Scalable, Strong Growth OUR BRANDS Dynamic Brands, Omni-Channel Distribution HISTORICAL PERFORMANCE Consistent Growth of Revenues and Earnings, Strong Balance Sheet FUTURE GROWTH O
Slide 4: The Retail Industry is Being Disrupted
The Retail Industry is Being Disrupted FLIPBOARD UPDATE Disruptive forces are impacting all sectors The Way People Shop Will Continue to Change Companies Must Move Toward Where Things Are Going Sales and Follower Satisfaction Are Achieved Through responsive delivery of great Products 4
Slide 5: Disruptive Forces Effecting our Industry
Disruptive Forces Effecting our Industry The way customers shop is rapidly changing, primarily caused by the following five disruptive forces: 5
Slide 6: Xcel Brands - Innovation for the Retail Industry
Xcel Brands - Innovation for the Retail Industry Xcel Brands Inc. (NASDAQ:XELB) is a media and brand management platform company that owns, licenses, designs, manages production of products, generates media content and markets a portfolio of dynamic consumer brands that engage our customers and foll
Slide 7: Mission, Vision & Core Values
Mission, Vision & Core Values THE VISION To re-imagine shopping, entertainment and social as one THE MISSION CORE VALUES To design and Be open and honest produce the best Listen to our followers products for our followers and Collaborate fairly to win partners Grow through the two- second advantage
Slide 8: Strategy
Strategy Xcel’s strategy is to monetize the convergence of shopping, entertainment and social We accomplish this through four key tactics: We own and license dynamic brands featuring designers and creative directors who have significant media presence We develop captivating media content and eng
Slide 9: Highly Differentiated Business Model
Highly Differentiated Business Model TRADITIONAL TRADITIONAL WHOLESALE WHOLESALE LICENSED OWNED BRANDS BRANDS FAST-FASHION Inventory Position - Inventory Turnover - Supply Chain Management Responsiveness / Lead Time Long Lead Long Lead Fast Fast Design Distribution Channe
Slide 10: Omni-Channel Distribution
Omni-Channel Distribution Interactive Television Wholesale Specialty QVC, Inc. Hudson Bay Company Michael’s The Shopping Channel (Canada) Lord & Taylor 1800 Flowers CJo Shopping (Korea) Better Dept Stores Hewlett Packard Best Buy Johnson & Johnson 10
Slide 11: Our Brands
Our Brands Interactive Television Wholesale Specialty (1) 11 (1) Highline Collective is a new brand projected to be launched at Lord & Taylor and The Bay in 2016.
Slide 12: IMNYC
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Slide 13: Judith Ripka
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Slide 14: H Halston
He HALSTON
Slide 15: C. Wonder
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Slide 17: Interactive Television
Interactive Television ISAAC MIZRAHI LIVE H BY HALSTON C. WONDER JUDITH RIPKA 17
Slide 18: Wholesale
Wholesale IMNYC H HALSTON HIGHLINE COLLECTIVE ISAAC MIZRAHI JUDITH RIPKA LTD C. WONDER LIMITED 18
Slide 19: Specialty
Specialty MICHAELS JOHNSON & JOHNSON HEWLETT PACKARD(1) BEST BUY KLEENEX 1800 FLOWERS 19 (1) Isaac Mizrahi x Hewlett Packard SmartWatch projected to launch in Spring 2016.
Slide 20: Best In Class Retail Partners
Best In Class Retail Partners Our brands are distributed through an Omni-Channel Sales strategy through best-in-class retail partners across Direct-Response Television, Bricks-and-Mortar, and Digital channels including: 20
Slide 21: Retail Sales and EBITDA Scorecard
Retail Sales and EBITDA Scorecard $470.0MM $1.350B $380.0MM $27.7MM $212.0MM $21.7MM $142.0MM $114.0MM $12.7MM $13.4MM $7.0MM $9.3MM $4.5MM $3.9MM 2011 2012 2013 2014 2015 (pro-forma) EST. SALES AT RETAIL $114MM $142MM $212MM $380MM $470MM Xcel Brands Revenue - $12.7MM $13.4MM $20.7MM $27.7MM
Slide 22: Strong Balance Sheet
Strong Balance Sheet As of March 31, 2016, Xcel had $12.6MM of cash against $27.9MM of Senior Debt, which results in Net Debt(4) of $15.3MM. Earn-Outs (2) $6.6 MM Seller Notes (3) $4.7MM Cash $12.6MM 1.7X Senior Debt $27.9MM Net Debt $15.3MM Senior Debt Leverage Ratio (1) Total Debt is based on Seni
Slide 23: Organic Growth Opportunities
Organic Growth Opportunities Built-In Growth Category Growth Geographic Growth • H by Halston – Full Year of • Additional categories to launch • Launched brands on QVC in performance in 2016 in 2016 including Beauty, UK, Italy, Germany, France, • C. Wonder – Launched Home, and additional and Japan i
Slide 24: Acquisition Strategy and Brand Development
Acquisition Strategy and Brand Development Xcel is seeking to acquire brands that are: Strategic Synergistic Accretive 24
Slide 25: Summary
Summary Xcel Brands is built to develop innovative solutions to address the changes in our industry. Xcel’s “Virtual Vertical” business model is working capital light but its design, sourcing, and marketing infrastructure provides a highly scalable platform for strong organic growth. We own dy
Slide 26: AGEL
AGEL Differentiate By Design
Slide 27: Exhibit I
Exhibit I Reconciliation of Net Income (loss) to Adjusted EBITDA Exhibit I Reconciliation of Net Income (Loss) to Adjusted EBITDA Quarter Ended March 31, Year End 12 months (amounts in thousands) 2016 2015 12/31/2015 ended 3/31/16 Net loss $ (45) $ (331) 2,574 2,860 Depreciation and amortization 426
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