Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (February 2013)
26 slides from Smith & Wesson Brands's investor presentation, Feb 7, 2013
Slide 1: Smith & Wesson Investor Presentation, February 2013
February, 2013 Smith & Wesson Investor Presentation
Slide 2: Safe Harbor
Safe Harbor 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 statements include but are not
Slide 3: Business Highlights
Business Highlights U.S. market leader in firearms 160 years of rich history 1,600 jobs in America - products made in America Iconic brand with 92% aided awareness* Smith & Wesson(r) Brand = revolver Innovative product portfolio serving broad user groups Revolvers, polymer pistols, metal pistols, co
Slide 4: Vision / Mission
Vision / Mission Our Vision: The leading firearms manufacturer Our Mission: To allow our employees to design, produce, and market high-quality, innovative firearms that meet the needs and desires of our consumer and professional customers 4
Slide 5: Focus, Simplify, Execute
Focus, Simplify, Execute Strategy - Focus on Firearms Consumer and professional markets Family of brands: Smith & Wesson(r) M&P(tm) Thompson/Center Arms(tm) Performance Center(tm) M&P(r) as a brand and product platform: Pistols and modern sporting rifles Operations: Adapt to changing environment Exp
Slide 6: Experienced Leadership Team
Experienced Leadership Team James Debney, President & CEO 20+ years: multinational consumer and business-to- business environments including President of Presto Products Co., a $500 million business unit of Alcoa Consumer Products Jeffrey Buchanan, EVP & CFO 25+ years: private and public company exp
Slide 7: Experienced Management Team
Experienced Management Team Mario Pasantes _______________ Sr. VP, Marketing and International Sales Alcoa, Inc. Coca-Cola Pillsbury Mark Smith _______________ VP, Manufacturing and Supply Chain Management Alvarez & Marsal Ecolab Robert Cicero ________________ VP, General Counsel, Chief Compliance O
Slide 8: Q2 Fiscal 2013 Highlights
Q2 Fiscal 2013 Highlights (Oct. 31, 2012 - From Continuing Operations) Q2 Financial Results: Record-level quarterly sales growth of $136.6M, +48.0% Y/Y Includes 2-week annual factory shutdown in August Raised full year fiscal 2013 financial guidance Gross profit margin 35.5% Operating income 19.5% N
Slide 9: First Six Months Highlights and Guidance
First Six Months Highlights and Guidance (Fiscal Year 2013 - From Continuing Operations) Actual and Estimated Fiscal Year April 30 Sales (in Millions) First Half Fiscal 2013 Actual: Sales $272.6M (Up 48.1% YOY) Gross Profit Margin 36.6% Operating Income 21.3% GAAP Diluted EPS $0.53 Cash at Oct. 31 $
Slide 10: Current Environment
Current Environment The tragedy in Newtown has understandably inspired an important national discussion about how to cope with violence in our communities The outcome of this discussion has yet to be determined - we will not speculate today We are participating in the discussion, along with the majo
Slide 11: NSSF Adjusted NICS Background Checks
National Shooting Sports Foundation (NSSF) adjusts FBI NICS data to eliminate background checks associated with permit applications and checks on active CCW permit databases. NSSF adjusted NICS data provides a more accurate picture of market conditions. Source: NSSF -National Shooting Sports Foundat
Slide 12: Industry: Growth in Handguns, Long Guns, Permit Checks
Industry: Growth in Handguns, Long Guns, Permit Checks (CHART) 12
Slide 13: Industry: Strong Sales Indications
(CHART) (CHART) (CHART) Industry: Strong Sales Indications Manufacturer projected sales based on excise tax collections Q1-Q3 2012: shipment value of handguns and long guns up 48% over prior year Q3 2012 (most recent available): handgun tax obligations up 45% over Q3 2011 Source: Federal Excise Tax
Slide 14: Pistols Driving Growth in Handguns
Pistols Driving Growth in Handguns Pistols now represent over 80% of units sold Pistols now represent over 80% of units sold Pistols now represent over 80% of units sold Source: BATF, Includes US manufacturer and imports, excludes exports 14
Slide 15: Industry: Pistols vs. Revolvers
Industry: Pistols vs. Revolvers Pistols and revolvers have different attributes, but pistols are preferred by both professionals and consumers. Pistol advantages versus revolvers: Ergonomics/comfort High tech/cutting edge Modern shape Trigger pull Capacity Safety features Revolver advantages versus
Slide 16: SWHC: Firearms Growth Drivers
Consumer Market - U.S. Focus on consumer trends: e.g. Concealed Carry, Personal Protection Take Market Share: Polymer Pistol Unit Growth, Modern Sporting Rifles Maintain Robust New Product Pipeline Leverage Higher Performance Standards from Professional Markets Professional Market Law Enforcement /
Slide 17: Major Focus: M&P Pistol Growth
Major Focus: M&P(r) Pistol Growth Current Situation: Pistols are more than 80% of handguns sold Compact/slim and full-size polymer pistols are increasing in popularity M&P(r) polymer pistols are highly sought after by professionals and consumers - especially M&P(r) Shield(tm) Our Focus: Grow M&P(r)
Slide 18: M&P - Proven Performance
M&P(r) - Proven Performance M&P(r) - Proven Performance Strong & Marketable Differences 18
Slide 19: New Models for the M&P Platform
New products: M&P(r) Shield(tm) M&P(r) Pro Series C.O.R.E.(tm) M&P(r)10 Polymer pistol category Protection and Recreation Consumer and Professional Additional calibers and models for the M&P(r) Modern Sporting Rifle platform: 300 Whisper and .308 for Hunting We will only announce major new product i
Slide 20: The M&P Shield
The M&P(r) Shield(tm) Designed to meet the demand for personal protection and concealed carry, the M&P Shield features: Powerful 9mm or .40 S&W calibers Lightweight, slim one-inch profile for comfortable carry Compact overall length of 6.1" M&P proven ergonomic design Thumb safety Includes two magaz
Slide 21: The NEW M&P Pro-Series C.O.R.E.
The NEW M&P(r) Pro-Series C.O.R.E.(tm) M&P(r) Pro Series C.O.R.E.(tm) Pistols (Competition Optics Ready Equipment): Quick, custom, competition-based optics Crisp 4.5-pound trigger pull Textured interchangeable back straps to enhance and customize grip Accepts sights from six of the industry's top re
Slide 22: The new M&P10 - For Hunters
The new M&P(r)10 - For Hunters New M&P(r)10 expands the company's popular line of semi- automatic modern sporting rifles for hunters: .308 WIN - also safely fires 7.62 x 51 mm Accurate 18-inch barrel with 1-in-10" 5R rifling Ambidextrous controls: Safety selector lever, magazine release, and bolt re
Slide 23: The M&P10 - For Law Enforcement
The M&P(r)10 - For Law Enforcement New M&P(r)10 expands the company's popular line of semi- automatic modern sporting rifles for law enforcement: .308 WIN - also safely fires 7.62 x 51 mm Accurate 18-inch barrel with 1-in-10" 5R rifling Ambidextrous controls: Safety selector lever, magazine release,
Slide 24: Our Strategic Direction
Our Strategic Direction Grow sales and increase profitability Expand manufacturing capacity intelligently Focus on M&P(r) Pistol Optimize expenses on a company-wide basis Focus on improving gross margins Invest in sales and marketing Maintain robust new product pipeline Launch new products strategic
Slide 25: Financial Model: Three Year Goals
Financial Model: Three Year Goals Gross Margins of 38% - 40% -- Drivers will include: Growth of M&P(r) platform in consumer and professional markets Introduction of significant new products Leverage supplier capability and invest in vertical integration Further simplify and refine go-to-market strat
Slide 26: Smith & Wesson, February 2013
February, 2013 Smith & Wesson Investor Presentation
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