Xcel Brands, Inc · NASDAQ:XELB
Xcel Brands — Investor Presentation (August 2023)
30 slides from Xcel Brands's investor presentation, Aug 15, 2023
Slide 1: Xcel Brands Investor Presentation
NASDAQ: XELB XCEL BRANDS (08/15/23)2 INVESTOR PRESENTATION
Slide 2: Forward Looking Statements
4 2 FORWARD LOOKING STATEMENTS Certain statements in this presentation, as well as certain oral statements made by management during the presentation, constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements in
Slide 3: Table of Contents
6 TABLE OF CONTENTS I OUR OVERVIEW II THE BUSINESS MODEL III GROWTH OPPORTUNITIES 3
Slide 4: Our Overview
8 “I always start with color when I’m designing things.” ISAAC MIZRAHI OUR OVERVIEW 4
Slide 5: Xcel is a consumer products and social commerce company
10 XCEL IS A CONSUMER PRODUCTS AND SOCIAL COMMERCE COMPANY GENERATING APPROXIMATELY $600 MILLION ANNUAL RETAIL SALES ROBERT D’LOREN, CEO 5
Slide 6: We imagine shopping, entertainment and social media as one thing
12 “I always start with color when I’m designing things.” ISAAC MIZRAHI “We imagine shopping, entertainment and social media as one thing” – ROBERT D’LOREN, CEO 6
Slide 7: Executive Summary
14 P R O P R I E TA R Y TECHNOLOGY I n d u s t r y - l e a d i n g p r o p r i e t a r y S o c i a l C o m m e r c e t e c h n o l o g y d e s i g n e d t o d r i v e a u d i e n c e , engagement and sales of products CREATIVE POWERHOUSE H i g h l y e x p e r i e n c e d c r e a t i v e s e r v i c
Slide 8: Financial Strength
168 F I NANCIAL S T R ENGT H W orking capital light business mode l, and a h istorical track record of re v e nue and Adjusted EBITDA growth,which has enabled investments in our brands and technology PROFI T A BL E B USI NESS MODEL S t r ong c a s h flow g ener ation b e g inning 2 H’23 a n d b e y
Slide 9: Our Evolution 2011-2022
18 9 OUR EVOLUTION 2011 2015 2020 2011 - 2016 BUILDING THE FOUNDATION Acquired Isaac Mizrahi, Judith Ripka, Halston and C. Wonder Significant growth across our brands in Direct-Response Television and licensing Over $1BB of Live Stream Shopping sales at retail 2012 2014 2016 2017 2018 2019 2021 2022
Slide 10: Our Evolution 2023 - Forward
20 OUR EVOLUTION 2023 - FORWARD 2023 - FORWARD LEADING SOCIAL COMMERCE PLATFORM Planned launch of Social Commerce marketplace adding new brands to our platform through incubation, partnerships and future acquisitions Development and expansion of new and existing brands across all channels of distrib
Slide 11: Our Core Brands
22 11 “I always start with color when I’m designing things.” ISAAC MIZRAHI OUR CORE BRANDS Note: All brands are fully owned by Xcel Brands Inc. other than (i) Isaac Mizrahi which represents a minority interest retained ownership and (ii) Longaberger which represents a 50% ownership position in the b
Slide 12: We Own Strong Brands That Resonate With Consumers
24 12 2016 2017 2018 2019 2020 2021 2022 2023 - FORCAST SALES AT RETAIL (COVID-19) WE OWN STRONG BRANDS THAT RESONATE WITH CONSUMERS Retail Sales include actual retail sales where reported, as well as estimates based on a combination of our net wholesales and reported net wholesales of our licensees
Slide 13: Revenue and Adjusted EBITDA
13 REVENUE AND ADJUSTED EBITDA (1)Launched wholesale divisions in jewelry and apparel to enhance brands (2)Invested over $5MM in technology and systems from 2020-2022 (3)Sold Isaac Mizrahi in May 2022, resulted in revenue reduction of $16MM and EBITDA reduction of approximately $6.8MM, reduced debt
Slide 14: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS FISCAL YEAR ENDING HQUARTER ENDING v 2020 2021 Cash 4,641 4,957 4,483 Current Assets 17,566 16,147 17,179 TOTAL Assets 143,191 $ 123,054 125,781 Current Liabilities” 8,085 8,215 9,310 Operating Lease Obligations 11,525 10,570 8,459 Total Term Debt 18,821 16,638 28,031 32,314
Slide 15: The Business Model
“I always start with color when I’m designing things.” ISAAC MIZRAHI THE BUSINESS MODEL 15
Slide 16: Business Model Overview
28 BRAND DEVELOPMENT LICENSING DESIGN AND CREATIVE MARKETING AND CONTENT PRODUCTION SOCIAL COMMERCE TECHNOLOGY PLATFORM XCEL has built a working capital light operating and technology platform designed to build brands and drive sales through Live Streaming and Social Commerce BUSINESS MODEL OVERVIEW
Slide 17: The Rise of Social Commerce
30 1 7 THE RISE OF SOCIAL COMMERCE Billions are now up for grabs as ecommerce, live streaming, and social media are evolving into Social Commerce marketplaces powered by short form video content, with an estimated 20% of all online sales expected to be driven by social commerce by 2026(1) As compare
Slide 18: Social Commerce Technology
1388 SOCIAL COMMERCE TECHNOLOGY We have created a multi-brand short-form video content platform with the ability for shoppers, creators, and influencers to earn fees based on conversions It combines live streaming, e-commerce and social media in one seamless social commerce platform which drives bra
Slide 19: Growth Opportunities
3 4 “I always start with color when I’m designing things.” GROWTH OPPORTUNITIES 19
Slide 20: Key Growth Strategies
36 KEY GROWTH STRATEGIES 20 GROW EXISTING BRANDS SOCIAL COMMERCE OPPORTUNITIES PURSUE AQUISITIONS
Slide 21: New partnership with G-III Apparel Group
3 8 21 June 2023, new partnership announced with GIII Apparel Group An industry-leading public company with sales over $2BB annually, is expected to grow the brand over the next several years with substantial investments and brand marketing Ken Downing as Creative Director, relaunching the brand in
Slide 22: New partnership with JTV
4 0 22 New partnership with JTV , an industry leader in jewelry Live Stream commerce with over $500MM of annual retail sales who will take over the Live Stream, wholesale, and D2C channels - 900% growth in revenues from 2019-2021 driven by continued growth of independent jeweler distribution and Liv
Slide 23: QVC business back on growth trajectory
4 2 23 QVC business back on a strong growth trajectory for 2023 with regular shows in primetime New collection for better retailers in development Expansion through licensing, DTC and Social Commerce Raising brand awareness through collaborations, most recently with AnaOno and Smiley
Slide 24: Christian Siriano named Creative Director
24 Announced Christian Siriano as new Creative Director in 1Q’23 Launched a new collection on HSN in 2Q’23 with extremely high engagement and aggressive growth planned New categories planned to launch in 2024 including handbags, footwear, jewelry, seasonal accessories and travel
Slide 25: Isaac Mizrahi brand update
25 New D2C website launched in 2022 boasts high engagement New sportswear license signed in 4Q’22 for distribution outside of QVC and through DTC website International partners and new categories in discussion Remains top performing designer apparel brand in Direct Direct-Response Television channel
Slide 26: Longaberger social commerce home products
26 Premium social commerce and Live Streaming home products company with over 5,000 nano influencers as stylists and 300,000 customers Significant growth potential through digital marketing efforts, stylist recruiting, and expansion of vendors Additional growth opportunities through licensing and in
Slide 27: Social Commerce Opportunities
SOCIAL COMMERCE OPPORTUNITIES 27 NEW SOCIAL-COMMERCE DRIVEN BRANDS We are currently developing new brands in collaboration with designers and other social media influencers who have millions of followers and are positioned to succeed in Live Stream and Social Commerce. We plan to launch 2-4 new bran
Slide 28: Acquisitions
28 AQUISITIONS SEPTEMBER 2011 APRIL 2014 JUNE 2015 SALE - MAY 2022 DECEMBER 2014 APRIL 2022 Since 2011 we have sought the acquisition of brands and businesses that we believe we can grow through Social Commerce, with an average of one acquisition every two years We seek to divest and/or harvest our
Slide 29: Investor Relations Contact
NASDAQ: XELB INVESTOR RELATIONS CONTACT: IR@XCELBRANDS.COM 29
Slide 30: Exhibit A Reconciliation of Adjusted EBITDA
30 EXHIBIT A RECONCILIATION OF ADJUSTED EBITDA