Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (September 2012)
26 slides from Smith & Wesson Brands's investor presentation, Sep 6, 2012
Slide 1: Smith & Wesson Investor Presentation
September, 2012 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 for Firearms: Handguns, Modern Sporting Rifles (MSR) 160 years of rich history Iconic brand with 92% aided awareness* Smith & Wesson(r) Brand = Revolver Innovative product portfolio serving broad user groups Revolvers, Polymer Pistols, Metal Pistols, Concealed
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 Strategy
Focus, Simplify, Execute Strategy - Focus on Firearms Recent sale of non-core perimeter security business U.S. Consumer - leverage professional markets Family of brands: Smith & Wesson(r) M&P(tm) Thompson/Center Arms(tm) M&P(tm) - Brand and product platform: Pistols and modern sporting rifles Operat
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: Q1 Fiscal 2013 Highlights (July 31, 2012)
Q1 Fiscal 2013 Highlights (July 31, 2012) Record-level quarterly sales growth from continuing ops of $136.0M, +48.3% Y/Y Record-level quarterly income from continuing ops of $18.9M, or $0.28 per diluted share Record Adjusted Non-GAAP EBITDAS of $36.1 Million Raised Full Year Fiscal 2013 Financial Gu
Slide 9: SWHC: Financial Highlights (From Continuing Operations)
SWHC: Financial Highlights (From Continuing Operations) Fiscal Year April 30 Sales (in Millions) Q1FY13 Actual: Sales $136.0M (+48.3%) Backlog $392.4M Gross Profit Margin 37.7% Op. Expense 14.7% Working capital $118.4M Cash $60.5M Q2FY13 Guidance: Sales $130.0M - $135.0M (Up Over 40%) GAAP EPS $0.19
Slide 10: NICS: Strength in Consumer Firearms Market
*National Shooting Sports Foundation (NSSF) adjusts FBI NICS data to eliminate background checks associated with permit applications and checks on active CCW permit databases, in order to provide a more accurate picture of market conditions. Adjusted NICS Checks* NICS: Strength in Consumer Firearms
Slide 11: Strong Industry Sales Indications Through CY11
Strong Industry Sales Indications Through CY11 Wholesale projected sales based on excise tax collections Full year excise tax collections for Handguns and Long guns up 24% over prior year Latest reported Q4 2011 showed Handgun tax obligations up 31.5% over Q4 2010 Source: Federal Excise Tax collecti
Slide 12: Handguns: Growth has been driven by pistols
Handguns: Growth has been driven by pistols, which now represent 82% of units both manufactured and imported 82% of units both manufactured and imported 82% of units both manufactured and imported Source: BATF, Includes US manufacturer and imports, excludes exports
Slide 13: Industry: Pistols vs. Revolvers
Industry: Pistols vs. Revolvers Pistols and revolvers have different attributes, but pistols are attracting younger consumers into the handgun market. Pistol advantages versus revolvers: Capacity Rate of fire High tech/cutting edge Modern shape Trigger pull Safety features Revolver advantages versus
Slide 14: Firearms Growth Drivers
Consumer Market - U.S. Focus on Concealed Carry, Personal Protection, Recreation Expand Market Share: M&P(tm) Platform, Polymer Pistol Unit Growth New Product Pipeline Leverage Higher Performance Standards from Professional Markets Professional Market Law Enforcement / Federal Government Military -
Slide 15: Major Focus: M&P Pistol Growth
Major Focus: M&P(tm) Pistol Growth Current Situation: Pistol category is 82% of handguns Compact/slim and full-size polymer pistols are increasing in popularity M&P(tm) products sought after by retail & consumer, e.g. M&P Shield(tm) Our Focus: Grow M&P(tm) Pistol market share: Increased consumer adv
Slide 16: M&P - Proven Performance
M&P - Proven Performance M&P - Proven Performance Strong & Marketable Differences 16
Slide 17: Demonstrated Track Record of Significant New Products
Demonstrated Track Record of Significant New Products 2006 2007 2008 2009 2010 2011 2012 Walther PPS S&W M&P 15 S&W M&P Pistols Walther PK380 S&W M&P15-22 Walther PPQ S&W M&P15 Sport S&W BG380 S&W BG 38 S&W M&P15 Whisper S&W M&P 22 Thompson/Center Venture S&W Governor T/C Dimension 17 M&P Shield
Slide 18: New Models for the M&P Platform
New and exciting entries for polymer pistol category Concealed Carry, Personal Protection and Recreation Consumer and Professional Additional calibers and models for the M&P Modern Sporting Rifle platform: Hunting Will only announce new product introductions when timing is right M&P Shield launched
Slide 19: The NEW M&P Shield
The NEW M&P Shield(tm) SLIM Less than 1" thin CONCEALABLE 6" overall length POWERFUL 9mm or .40 S&W 19 "Guns hit store shelves at the end of the month in April or early May. The pistol itself is a lot to talk about - the most rugged of all "pocket rocket" pistols with M&P reliability and quality, bu
Slide 20: Our Strategic Direction: Focus on Firearms
Our Strategic Direction: Focus on Firearms Grow sales and increase profitability Expand manufacturing capacity intelligently Focus on M&P(tm) Pistol platform Optimize expenses on a company-wide basis Focus on improving gross margins Maintain robust new product pipeline Launch new products strategica
Slide 21: Financial Model: Three Year Goals
Financial Model: Three Year Goals 21 Gross Margins of 38% - 40% -- Drivers will include: Focus on M&P(tm) platform Exit from Walther business Introduction of significant new products Leverage supplier capability and invest in vertical integration Further simplify and refine go-to-market strategy Ope
Slide 22: Addendum Slides
Addendum Slides Questions & Answers
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Slide 24: Smith & Wesson Holding Corporation and Subsidiaries financial statements
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Slide 26: Smith & Wesson
September, 2012 Smith & Wesson Investor Presentation
Smith & Wesson Holding — Investor Presentation (September 2012) on 6ix