Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — Investor Presentation (September 2022)
21 slides from Lakeland Industries's investor presentation, September 2022
Slide 1: Investor Presentation September 2022
¢ Lakeland Protect Your People® Investor Presentation September 2022 NASDAQ: LAKE | LAKELAND.COM
Slide 2: Safe Harbor Statement
Safe Harbor Statement With the exception of historical information, the statements set forth in this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainties. The Company wishes to caution that a nu
Slide 3: Lakeland Overview
Lakeland Overview (Nasdaq: LAKE) What We Do FY2022 Revenue Global manufacturer of quality, cost-effective, and mission-critical personal protective clothing solutions that protect people at work and in their communities 6% 10% = USA = Asia 9% 40% nator Europe Latin America Other Foreign GEOGRAPHY Ke
Slide 4: Investment Highlights
Investment Highlights Positioned for Sustainable Growth Driven by Strategic Operational & Sales Initiatives - Targeting high single digit revenue growth, driven by strong long term growth trends and product segment focus - Investments in manufacturing capabilities enables production flexibility to f
Slide 5: Sustainable Long-Term Growth Driven by Operational Enhancements
Sustainable Long-Term Growth Driven by Operational Enhancements Growth and Performance 2025-27 Targets Improvement Initiatives C1) Mid-to high single digit in core markets C1) Completed investments in global manufacturing footprint + Growth above market by 200-300 bps/year * Vietnam (coe largest cex
Slide 6: Achieving Material Improvement in Profitability
Achieving Material Improvement in Profitability mmm Net Sales (in millions of dollars) EBITDA Margin % (Range) —===Gross Margin % . Pandemic Era $200 50% $180 IN 45% $160 40% $140 35% $120 30% $100 25% $80 20% $60 15% $40 10% $20 5% $0 0% FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY201
Slide 7: Setting New Post-COVID Margin Baseline
Setting New Post-COVID Margin Baseline $50 60% Pandemic Era $45 50% $40 40% $35 $30 30% $25 20% $20 10% $15 0% $10 $s -10% QI-FY2019 Q2-FY2019 Q3-FY2019 Q4-FY2019 QI-FY2020 Q2-FY2020 Q3-FY2020 Q4-FY2020'Q1-FY2021 Q2-FY2021 Q3-FY2021 Q4-FY2021 QI-FY2022 Q2-FY2022 Q3-FY2022' Q4-FY2022 QI-FY2023 Q2-FY2
Slide 8: Primary Product Lines and Applications
Primary Product Lines and Applications Product Lines ————e Applications * Industrial * Industrial * Industrial + Municipal Fire * Industrial * Energy * Energy * Energy + Volunteer Fire * Energy * Healthcare * Healthcare * Utilities * Search & Rescue * Utilities * Clean Room * Clean Room * Petrochemi
Slide 9: Large Markets with Strong Tailwinds
Large Markets with Strong Tailwinds Key Market Dyna mics ~$6 Billion Total Addressable Market with a Mid-to-High-Single-Digit oy INCREASING RELEVANCE OF SAFETY AND PPE Growth Rate? 4 wo) + Increased development and enforcement of safety and environmental D—< standards globally (L\ (\) * Global accep
Slide 10: Lakeland's Competitive Advantages
Lakeland’s Competitive Advantages ] Owned, global manufacturing base ) 2 Well-Capitalized Focused, Yet and Healthy Diversified Balance Sheet Product Portfolio Technology- Scalable, asset- Focused and Data- light business Driven Culture _ model Provides us with the ability to rapidly scale-up product
Slide 11: Strategic Initiatives and Capital Priorities
Strategic Initiatives and Capital Priorities Strategic Initiatives Sustained Growth via Market Share Gains Enhanced Profitability Capital Prioritization Product line enhancements + Expanded geographical reach Customer service New products Strategic pricing Optimized supply chain management Technolog
Slide 12: Undervalued Growth
Undervalued Growth LAKE Shares Trades at a Meaningful Discount Despite Improving Financials * Ona forward EV/EBITDA basis, LAKE trades well below the peer average * Projected revenue growth well in excess of peers * Even allowing for size/market cap/liquidity and long-term track record discount rela
Slide 13: Appendix
Appendix ¢Lakeland
Slide 14: Operations Statement — Q2
Operations Statement — Q2 THREE MONTHS ENDED SIX MONTHS ENDED JULY 31, JULY 31, 2022 2021 2022 2021 Net sales $28,184 $27,466 $55,462 $61,558 Cost of goods sold 16,557 14,609 32.779 33,923 Gross profit 11,627 12,857 22,683 27,635 Operating expenses 9.832 8791 19,440 16,939 Operating profit 1,795 4,0
Slide 15: EBITDA Reconciliation — Q2
EBITDA Reconciliation — Q2 2022 2021 2022 2021 Net Income (loss) to EBITDA Net Income (loss) ($870) $2,968 $259 $7,970 Interest 13 4 22 5 Taxes 2,610 1,093 2,895 2,708 Depreciation and amortization 354 541 779 1,040 Other income (expense) (42) ) (67) (13) EBITDA $2,149 $4,607 $4,022 $11,736 EBITDA t
Slide 16: Non-GAAP Net Income — Q2
Non-GAAP Net Income — Q2 2022 2021 2022 2021 GAAP Net income (loss) ($870) $2,968 $259 $7,970 Adjustments: Adjustments for taxes (1) 2,000 = 1818 = Non-GAAP Net income $1,130 $2,968 $2,077 $7,970 GAAP Net income (loss) per share - basic: ($0.11) $0.37 $0.03 $1.00 Adjustments for taxes (1) 0.26 = 0.2
Slide 17: Balance Sheet — Q2
Balance Sheet — Q2 JULY 31, JANUARY JULY 31 JANUARY ASSETS LIABILITIES AND STOCKHOLDERS’ EQUITY 31, 2022 Current assets Current liabilities Cash and cash equivalents $41,211 $52,719 ‘Accounts payable $8,860 $5,855 Accounts receivable, net of allowance for Accrued compensation and benefits 2891 3,225
Slide 18: Income Statement — FY2022
Income Statement — FY2022 12 MONTHS ENDED NUARY 31, 2022 2021 Net sales $118,386 $159,000 Cost of goods sold 62.473 T9717 Gross profit 50,913 79,283 Operating expenses 34,866 35397 Operating profit 16,047 43,886 Other income, net 121 50 Interest expense (15) (23) Income before taxes 16,153 43,913 In
Slide 19: EBITDA Reconciliation — FY2022
EBITDA Reconciliation — FY2022 YEAR END JANUARY 31, 2022 2022 Net Income to EBITDA Net Income $11,372 $35,330 Interest 15 23 Taxes 4,781 8,583 Depreciation and amortization 1,868 1,965 Other income (expense) 121 50 EBITDA $17,915 $45,851 EBITDA to Adjusted EBITDA (excluding non-cash expenses) EBITDA
Slide 20: Balance Sheet — FY2022
Balance Sheet — FY2022 JANUARY Currentassets Cashand cash equivalents $52,719 Accounts receivable, net of allowance for doubtful accounts of $666 and $700 at January 31, 2022 and 2021, respectively 14,771 Inventories 477i PrepaidVATand other taxes zs Other currentassets 23.770 Totalcurrentassets 120
Slide 21: Lakeland - Protect Your People
¥ Lakeland Protect Your People”
Lakeland Industries — Investor Presentation (September 2022) on 6ix