Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (September 2007)
17 slides from Smith & Wesson Brands's investor presentation, Sep 17, 2007
Slide 1: Michael Golden, President/CEO John Kelly, CFO September 2007
Michael Golden, President/CEO John Kelly, CFO September 2007
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: Delivering Results
Delivering Results 2004 2005 2006 2007 2008(E) Net Product Sales (millions) 117.9 124 157.9 234.8 330 2004 2005 2006 2007 2008(E) Earnings per Share (Diluted) 0.02 0.14 0.22 0.31 0.63 2004 2005 2006 2007 2008(E) Pre-Tax Income (millions) 0.5 8.7 13.8 20.6 28.5 2004-2007 2008 (Est.) Revenue +99% EPS
Slide 4: Company Profile
Company Profile 155-year old American firearms company Largest U.S. manufacturer of handguns & handcuffs 2006 market share: #1 in revolvers - FY2007 sales growth: 4.3% #2 in pistols - FY2007 sales growth: 59.7% New growth fueled by: Taking share in $732M core handgun market Growing presence with U.S
Slide 5: 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 Market February 2006 Shotguns #3 Entered M
Slide 6: Handgun Market: $732MM
S&W MARKET REVOLVERS 54.3 129 S&W MARKET PISTOLS 46 453 $154MM $87MM* $578MM S&W 2007 (Includes Walther Products) Market 2006 2006 (CALENDAR) U.S. DOMESTIC NON-MILITARY MARKET - 2007 (FISCAL) S&W SALES $68MM 44% SOURCE: BATF 2006 Excise Tax Study & Smith & Wesson Management Estimates 15% Handgun Mar
Slide 7: S&W Net Product Sales
S&W Net Product Sales -0.04 0.01 0.13 0.1 0.15 0.22 0.24 0.44 0.5 0.43 0.4 0.59 0.56 (Year over Year Growth %) Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08
Slide 8: Four Key Sales Channels
Four Key Sales Channels SPORTING GOODS Handgun sales growth in FY2007: 28% - Q1 FY2008: 33% Versus 8% prior to direct sales force conversion Delivering full range: pistols, revolvers, rifles, shotguns Revolutionary marketing and consumer pull programs S&W Consumer Handgun Sales ($ In Millions) Q1-06
Slide 9: Four Key Sales Channels
Four Key Sales Channels SPORTING GOODS Handgun sales growth in FY2007: 28% - Q1 FY2008: 33% Versus 8% prior to direct sales force conversion Delivering full range: pistols, revolvers, rifles, shotguns Revolutionary marketing and consumer pull programs LAW ENFORCEMENT Market Size: 17,000 Departments
Slide 10: Addressing New Growth Opportunities
Addressing New Growth Opportunities Safety...Security...Protection...Sport Defense Related Products and Services Homeland Security Products and Services Law Enforcement Products and Services Firearms Handguns Long Guns Surround the Police Officer Surround the Foot Soldier Currently Exploring
Slide 11: Entering New Markets: Long Guns
Entering New Markets: Long Guns 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 RIFLES SHOTGUNS TACTICAL RIFLES BLACK POWDE
Slide 12: 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 Establishing licensees in professional markets where Smith & Wesson can do business beyond licensing:
Slide 13: Enhancing Productivity
Enhancing Productivity Achievements through FY 07: - Turns improvement +32% - Machine uptime improved to 85% - Guns/day output +57% vs '05 +22% vs '06 - Productivity ratio + 7% vs prior year Blending craftsmanship with technology: - Implementing Smith & Wesson Operating System - Investing in Equipme
Slide 14: Quarterly Income Statement Summary
Quarterly Income Statement Summary Sales: +56% Net Income: +38% Growth:
Slide 15: 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:
Slide 16: FY08 Annual Guidance
Net Product Sales $234.8 $330.0 Net Income $13.0 28.5 Earnings per Diluted Share: $0.31 $0.63 FY08 Annual Guidance (US$ in millions, except per share data) 2007 2008 Actual Guidance
Slide 17: Smith & Wesson
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