Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — Investor Presentation (November 2024)
31 slides from Lakeland Industries's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
Investor Presentation Place An Image Here November 2024 NASDAQ: LAKE Protect Your People® 1
Slide 2: Safe Harbor & Non-GAAP Statements
Safe Harbor & Non-GAAP Statements “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains estimates, predictions, opinions, goals and other “forward-looking statements” as that phrase is defined in the Private Securities Litigation Reform Act of
Slide 3: Corporate Overview & Objectives
Corporate Overview & Objectives Lakeland is a global manufacturer of protective equipment, apparel and accessories NASDAQ: LAKE with a Head-to-Toe portfolio of brands. New management is implementing strategies LTM Revenue1 $137.7M to accelerate growth and margins with an initial focus on the fragmen
Slide 4: Corporate Video
Corporate Video Play with solid fill Video link will open in web browser Protect Your People® 4
Slide 5: Mission-Critical Product Portfolio
Mission-Critical Product Portfolio FIRE INDUSTRIAL Products Products NFPA-certified Fire Turnout Gear Chemical Suits CE-certified Fire Turnout Gear PPE / Disposable Coveralls Pacific brand of safety helmets FR/AR Performance Wear Jolly brand of fire boots High Visibility Particulate Blocking Hoods J
Slide 6: Compelling Fire Segment Opportunity
Compelling Fire Segment Opportunity ✓ Fragmented global fire market - one player ✓ Inventory is simpler to manage: Build to fill with greater than 10% market share orders with little to no finished goods ✓ High-margin businesses with relatively low ✓ Generally working capital efficient with purchase
Slide 7: Large Markets with Strong Tailwinds
Large Markets with Strong Tailwinds Key Market Dynamics ~$6 Billion Total Addressable Market with Increasing Relevance of Safety And PPE a Mid-to-High-Single-Digit Growth Rate2 • Increased development and enforcement of safety and environmental standards globally • Global acceptance of PPE increasin
Slide 8: Strategic Priorities
Strategic Priorities • Investing resources in high growth geographies Building a Premier • Commitment to product line enhancements Global Fire Brand • Optimizing operations and sales channels Goal: to fortify its position as the only full-service vendor for • Adding product line extensions and innov
Slide 9: Global Head-to-Toe Fire Portfolio
Global Head-to-Toe Fire Portfolio Background & Product Portfolio Highlights Product • Fire and emergency services • Premium product line with a global reputation for safety and design Focus helmets • Highly innovative and R&D driven organization Headquarters Markets • Oceania, North America, Other •
Slide 10: Competitive Advantages
Competitive Advantages Owned, Global Manufacturing Base Geographically Diverse Sales Platform Provides the ability to rapidly scale-up production to Attractive opportunities for strategic products meet emergency demand, shift production between in key, diverse markets – the addition of Jolly, locati
Slide 11: Unique Opportunity to Larger Competition
Unique Opportunity to Larger Competition NASDAQ: LAKE NYSE:MSA Euronext: ALDTL ASX:ANN • Revenue trajectory driven by CY25 Revenue $162M $1,848M $463M $1,761M both M&A and organic YoY Growth 14.5% 2.9% 3.5% 11.0% initiatives CY24/CY25 Adj. EBITDA % 10.4% / 13.1% 25.8% / 26.3% 15.5% / 15.7% 17.2% / 1
Slide 12: Management
Management James M. Jenkins Roger D. Shannon Helena An President and Chief Executive Officer Chief Financial Officer Chief Operating Officer ▪ General Counsel and Vice President of Corporate ▪ 35+ years of experience in finance, strategy, ▪ 25 years of experience in procurement and Development for T
Slide 13: Financial Highlights
Place An Image Here Financial Highlights Protect Your People® 13
Slide 14: Fiscal Q2 2025 Financial Highlights & FY2025 Guidance
Fiscal Second Quarter 2025 Financial Highlights & FY2025 Guidance Financial Highlights FY25 Guidance2 Three Months Ended July 31 Year Ended January 31 FY25 Revenue in the range of $ in Million 2024 2023 2024 2023 $160M to $170M Revenue $38.5 $33.1 $124.7 $112.8 FY25 Adjusted EBITDA Gross Margin 39.6
Slide 15: Revenue Mix – Historical & Pro Forma with Acquisitions
Revenue Mix – Historical & Pro Forma with Acquisitions Lakeland Organic FY24 Lakeland Organic with Pacific Helmets, Q2-FY25 Revenue Jolly Scarpe, and LHD Group (pro forma) 5% USA USA 9% USA 13% Europe 17% Europe 32% 32% 44% Other N.A. 8% Asia 19% Other N.A. 14% Asia Europe Asia 10% Latin America 11%
Slide 16: FQ2 TTM Revenue & Adjusted EBITDA
FQ2 TTM Revenue & Adjusted EBITDA Revenue Adjusted EBITDA excluding FX $137.7 $132.3 $16.5 $15.7 $14.2 $14.5 $13.2 $124.7 $122.4 $119.2 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 • TTM Revenue continues to grow,16% increase year-over-year • TTM Adjusted EBITDA excluding FX
Slide 17: Capital Markets Summary
Capital Markets Summary LAKE News Releases ▪ Engages MZ Group to Lead Strategic Investor Relations and Shareholder Communications Program - 10/16/24 NASDAQ Listed ▪ Reports Fiscal 2025 Second Quarter Financial Results - 9/4/24 Shares Outstanding 7.4M ▪ Announces the Appointment of Laurel Yartz as Ch
Slide 18: Investment Highlights
Investment Highlights Near Term Strategy: Leverage a leading market position in fire protection, brands, and accretive M&A to accelerate growth in the fragmented, higher margin $2.0B fire protection sector in the largest global markets.1 Long Term Strategy: Grow all verticals with a capital light mo
Slide 19: www.lakeland.com
NASDAQ: LAKE Company Investor Relations 1525 Perimeter Parkway Chris Tyson Suite 325 MZ Group Huntsville, AL 35806 949-491-8235 LAKE@mzgroup.us www.lakeland.com Protect Your People® 19
Slide 20: Appendix
APPENDIX Protect Your People® 20
Slide 21: Eagle Technical Products
Eagle Technical Products1 Enhances Lakeland’s Product Portfolio and Expands Geographical Reach Background & Product Portfolio Highlights Headquarters • Stockport, UK • Asset-light value chain provides potential in- sourcing synergy opportunities as well as Product Focus • Firefighter Suits & Apparel
Slide 22: Pacific Helmets
Pacific Helmets1 Enhances Lakeland’s Fire Service Offering with Helmets Background & Product Portfolio Highlights Headquarters • Whanganui, New Zealand • Premium product line with a global reputation for safety and design Product Focus • Fire and emergency services helmets • Highly innovative and R&
Slide 23: Jolly Scarpe
Jolly Scarpe1 Expands Lakeland’s Fire Service Portfolio with Boots Background & Product Portfolio Highlights Headquarters • Montebelluna, Italy • Premium product line with a global reputation for quality and design Product Focus • Fire, police, industrial, and military boots • Highly innovative and
Slide 24: LHD Group
LHD Group1 Enhances Lakeland’s Product Portfolio and Expands Geographical Reach Background and Product Portfolio Acquisition Highlights • Premium product line with a global Headquarters • Wesseling, Germany reputation for quality and design Product Focus • Fire turnout gear, LHD Care • Germany is th
Slide 25: LHD Care Services
LHD CARE SERVICES FEEL COMPLETELY SECURE WITH THE LHD CARE SYSTEM ✓ Elimination of carcinogenic substances in protective clothing by means of professional cleaning ✓ individually combinable service modules ✓ highest degree of flexibility in clothing management © 2024 / LHD GROUP - 25 Protect Your Pe
Slide 26: Fiscal 2025 Second Quarter Financial Summary
Fiscal 2025 Second Quarter Financial Summary THREE MONTHS ENDED July 31, 2024 2023 Variance Net sales $38,512 $33,071 16.5% Gross Margin 39.6% 42.9% -333bps Adjusted EBITDA excluding FX $2,659 $4,719 -43.7% Adjusted EBITDA excluding FX Margin 6.9% 14.3% -737bps Diluted EPS -$0.19 $0.32 -$0.51 ($000’
Slide 27: Non-GAAP Reconciliation – Q2
Non-GAAP Reconciliation – Q2 THREE MONTHS ENDED THREE MONTHS ENDED July 31, July 31, 2024 2023 2024 2023 Net Income to EBITDA Adjusted EBITDA Margin Net income (loss) -$1,376 $2,465 Adjusted EBITDA $1,816 $4,162 Interest expense $370 $1 Divided by net sales $38,512 $33,071 Taxes -$420 $1,199 Adjuste
Slide 28: Non-GAAP Reconciliation – LTM
Non-GAAP Reconciliation – LTM LAST TWELVE MONTHS July 31, 2024 2023 Adjusted EBITDA to Adjusted EBITDA excluding FX Adjusted EBITDA $10,723 $11,754 Currency Fluctuation $3,732 $1,450 Adjusted EBITDA excluding FX $14,454 $13,204 ($000’s Except Share Information) Protect Protect Your People® Your Peop
Slide 29: Fiscal 2025 Second Quarter Financial Highlights
Fiscal 2025 Second Quarter Financial Highlights Net Sales Adjusted EBITDA & Gross Margin Diluted EPS Adjusted EBITDA Margin 0.32 $4.2 $38.5 42.9% 39.6% 12.6% $2.7 6.9% $1.8 $33.1 4.7% -0.19 2024Q2 2025Q2 2024Q2 2025Q2 2024Q2 2025Q2 2024Q2 2025Q2 2025Q2 Excl. FX • Net sales increased $5.4 • Gross mar
Slide 30: FQ2 Gross Margin and Adjusted EBITDA Bridge
FQ2 Gross Margin and Adjusted EBITDA Bridge GROSS MARGIN % ADJUSTED EBITDA • Organic Gross Margin continued to improve • Profitability from Organic sales increased • Integration of newly acquired companies generating lower gross margin, including a 90 basis • Profit in ending inventory negatively af
Slide 31: FQ2 Balance Sheet
FQ2 Balance Sheet July 31, January 31, (UNAUDITED) ASSETS 2024 2024 (000's except for share information) Current assets Cash and cash equivalents 24,880 25,222 Accounts receivable, net of allowance for doubtful accounts of $1,033 and $857 at July 31, 2024 and January 31, 2024, respectively 22,933 19
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