Luvu Brands, Inc. · OTC:LUVU
Luvu Brands — Investor Presentation (March 2020)
32 slides from Luvu Brands's investor presentation, Mar 3, 2020
Slide 1: Investor Deck
Luvu Brands, Inc. Investor Deck March 2020 OTCQB Venture Market: LUVU
Slide 2: Safe Harbor / Forward Looking Statement; Non-GAAP Financial Measure
SAFE HARBOR / FORWARD LOOKING STATEMENT This investor presentation contains forward-looking information and other forward-looking statements within the meaning of applicable U.S. securities laws. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors
Slide 3: LUVU Brands At a Glance
LUVU Brands At a Glance Exchange: OTCQB Venture Ticker: LUVU • Vertically integrated US manufacturer • Diverse consumer brands with international Float: 27M shares distribution Market Cap: $1.9M • Fiscal 2019 revenue of $17M Share Price (2/27/20): $.03 • Operating metrics are improving • Attractive
Slide 4: Our Brand Portfolio
Our Brand Portfolio Liberator®, a brand category of iconic products for enhancing sensuality and intimacy Jaxx®, a diverse range of casual fashion daybeds, sofas and beanbags made from eco-friendly re-purposed polyurethane foam Avana®, inclined bed therapy products, assistive in relieving medical co
Slide 5: Our Manufacturing Capabilities
Our Manufacturing Capabilities Luvu Brands, Inc. OTCQB Venture: LUVU 5
Slide 6: Luvu Brands: Unique and Growing Brands
Luvu Brands Unique and Growing Brands Luvu Brands, Inc. OTCQB Venture: LUVU 6
Slide 7: Our Brand Portfolio
Our Brand Portfolio Liberator Bedroom Adventure Gear® Five star Amazon reviews Buy it no matter what! The BEST thing EVER for the bedroom!! Worth every cent! Amazing, Amazing and Amazing! Luvu Brands, Inc. OTCQB Venture: LUVU 7
Slide 8: Our Brand Portfolio: Annual Sales History FY13 to FY19
Our Brand Portfolio Annual Sales History – FY ‘13 to FY ‘19 9,000,000 $8.1 8,000,000 $7.3 $7.1 $7.2 7,000,000 $6.8 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 Luvu Brands, Inc. OTCQB Venture: LUVU 8
Slide 9: Our Brand Portfolio: Quarterly Sales History
Our Brand Portfolio Quarterly Sales History – Q2 ‘18 to Q2 ‘20 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Luvu Brands, Inc. OTCQB Venture: LUVU 9
Slide 10: Our Brand Portfolio: Five Star Amazon Reviews
Our Brand Portfolio Five star Amazon reviews Best bean bag chair ever! Absolutely in love with this bean bag It’s just amazing! My boys luv this Love this! The whole family loves it Luvu Brands, Inc. OTCQB Venture: LUVU 10
Slide 11: Our Brand Portfolio: Five Star Amazon Reviews
Our Brand Portfolio Five star Amazon reviews: Loved them so much I bought 2 more We have these on our patio and love them! Repeat customer: I'm on my 4th one! Worth every penny! Luvu Brands, Inc. OTCQB Venture: LUVU 11
Slide 12: Our Brand Portfolio: Five Star Amazon Reviews
Our Brand Portfolio Five star Amazon Reviews Wish I Had This Years Ago! Why did I wait so long? I am IN LOVE with this Perfect in every way - Luvu Brands, Inc. OTCQB Venture: LUVU 12
Slide 13: Annual Sales History
Annual Sales History 8,000,000 $7.4 7,000,000 6,000,000 $6.0 5,000,000 $4.5 4,000,000 $3.1 3,000,000 $2.3 2,000,000 $1.7 1,000,000 - FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 5 year CAGR = 32% Luvu Brands, Inc. OTCQB Venture: LUVU 13
Slide 14: Quarterly Sales History
Quarterly Sales History 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Luvu Brands, Inc. OTCQB Venture: LUVU 14
Slide 15: Luvu Brands: Financials
Luvu Brands Financials Luvu Brands, Inc. OTCQB Venture: LUVU 15
Slide 16: Sales History – FY 2014 to FY 2019
Sales History – FY 2014 to FY 2019 Excluding discontinued imported products Total Sales (excluding Tenga) 18,100,000 $16.4 16,100,000 $14.9 14,100,000 $13.6 $11.5 $12.4 12,100,000 10,100,000 8,100,000 6,100,000 4,100,000 2,100,000 100,000 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 4 year CAGR = 8% Lu
Slide 17: Quarterly Net Sales – FY 2017 to Q2 FY '20
Quarterly Net Sales – FY 2017 to Q2 FY ’20 (Includes discontinued imported products until Q2 FY ’17) 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - Q1 Q2 Q3 Q4 2017 2018 2019 2020 Luvu Brands, Inc. OTCQB Venture: LUVU 17
Slide 18: Gross Profit History – FY 2015 to FY 2019
Gross Profit History – FY 2015 to FY 2019 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - FY '15 FY '16 FY '17 FY '18 FY '19 Luvu Brands, Inc. OTCQB Venture: LUVU 18
Slide 19: Gross Profit History – Quarterly from Q1 '17
Gross Profit History – Quarterly from Q1 ’17 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - Q1 Q2 Q3 Q4 2017 2018 2019 2020 Luvu Brands, Inc. OTCQB Venture: LUVU 19
Slide 20: EBITDA History – FY 2015 to FY 2019
EBITDA History – FY 2015 to FY 2019 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - FY '15 FY '16 FY '17 FY '18 FY '19 Luvu Brands, Inc. OTCQB Venture: LUVU 20
Slide 21: Quarterly EBITDA History – Q2 '18 to Q2 '20
Quarterly EBITDA History – Q2 ‘18 to Q2 ‘20 500,000 400,000 300,000 200,000 100,000 - Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 (100,000) (200,000) Luvu Brands, Inc. OTCQB Venture: LUVU 21
Slide 22: Amazon Sales History – FY '14 to FY '19
Amazon Sales History – FY ‘14 to FY ‘19 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 6 year CAGR = 20% Luvu Brands, Inc. OTCQB Venture: LUVU 22
Slide 23: Mass Market Sales History – FY '15 to FY '19
Mass Market Sales History – FY ‘15 to FY ‘19 (Excluding Amazon Sales) 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - FY '15 FY '16 FY '17 FY '18 FY '19 6 year CAGR = 19% Luvu Brands, Inc. OTCQB Venture: LUVU 23
Slide 24: Q2 FY '20 Financial Review
Q2 FY ’20 Financial Review Q2 FY2020 Net Sales By Q2 FY2020 Net Sales By Product Channel Type Liberator 2% Direct 4% Jaxx 8% 29% Wholesale 22% 41% Avana 69% Other 25% Products purchased for resale Other (in thousands) (in thousands) Direct $1,303 Liberator $1,970 Wholesale 3,398 Jaxx 1,182 Other 78
Slide 25: Financial Review: Q2 and YTD
Financial Review Q2 and YTD Three Months Ended Six Months Ended YTD December 31, December 31, % 2019 2018 2019 2018 change (in thousands, except share data) Net Sales $ 4,779 $ 4,773 $ 8,874 $ 8,693 2.1% Cost of goods sold 3,260 3,451 6,217 6,384 Gross profit 1,519 1,322 2,657 2,309 15.1% GP % 31.8%
Slide 26: Financial Review: Gross Profit and SG&A Trends
Financial Review Gross Profit and SG&A Trends Quarterly Gross Profit Q2 FY '19 Q3 FY '19 Q4 FY '19 Q1 FY '20 Q2 FY '20 Gross profit $ 1,322 $ 1,250 $ 865 $ 1,137 $ 1,519 Gross Margin % 27.7% 29.0% 21.6% 27.8% 31.8% Quarterly SG&A Q2 FY '19 Q3 FY '19 Q4 FY '19 Q1 FY '20 Q2 FY '20 Advertising $ 88 $ 8
Slide 27: Luvu Brands: Growth Strategy
Luvu Brands Growth Strategy Luvu Brands, Inc. OTCQB Venture: LUVU 27
Slide 28: Growth Strategy – Liberator
Growth Strategy - To continually grow as a brand category in Sexual Wellness and Erotic Luxury: ◼ Expanded retail distribution, taking full advantage of our novel vacuum compressed Point-of-Purchase packaging (with a discrete flip door) that allows Liberator shapes and sex furniture to fit onto any
Slide 29: Growth Strategy – Jaxx
Growth Strategy - ◼ Jaxx Nimbus – Continue to capitalize on the growing popularity of our spandex beanbags. ◼ Jaxx Beanbags – Promote the favorable “price to value” of our US made beanbag collection. ◼ Jaxx Kids – Continue to promote our beanbags, loveseats, sofas, and game chairs in the mass market
Slide 30: Growth Strategy – Avana
Growth Strategy - This collection of comfort and assistive products has been growing at a 67% CAGR for the last 3 years with trailing twelve month sales of $3.9 million. ◼ The Kind Bed collection exceeds $1.5 million in annual revenue, soon to be launched in mass markets. ◼ We are launching a mainst
Slide 31: Conclusion
Conclusion ◼ We are a manufacturing, marketing and invention company with diverse distribution across three unique brands. ◼ Our ability to monetize new products with minimal investment is extraordinary. ◼ Large upside for continued growth without additional capital equipment. ◼ At inflection point;
Slide 32: Luvu Brands, Inc.
Luvu Brands, Inc. Ronald Scott Chief Financial Officer P: (770) 246-6426 E: ir@luvubrands.com Luvu Brands, Inc. OTCQB Venture: LUVU 32