School Speciality Inc · OTC:SCOO
School Speciality — School Specialty — BMO Capital Markets 14th Annual Back to School Education Conference (September 2014)
21 slides from School Speciality's conference presentation, Sep 18, 2014
Slide 1: School Specialty, Inc. – BMO Back to School Education Conference
School \ (| Specialty. School Specialty, Inc. BMO Capital Markets 14% Annual Back to School Education Conference September 18, 2014
Slide 2: About School Specialty
About School Specialty Aleading distributor of supplies, furniture, technology products, supplemental learning products and curriculum solutions to the Education marketplace Innovative offering of proprietary and 3"-party brands, providing one of the broadest and deepest assortments in the industry
Slide 3: About School Specialty – Our Business Segments
About School Specialty —- Our Business Segments a Instructional Solutions Standards-based Solutions Supplies Science Furniture | ‘Comprehension, Vocabulary, Spelling & Grammar, Technology | Reading Intervention | Math Intervention | Student Planning & Development FY14 Revenues: $583.7 million FY14 R
Slide 4: School Specialty – Distribution Segment Overview
School Specialty — Distribution Segment Overview = Offers one of the broadest and deepest assortments of general supplies and consumables, supplemental learning products, classroom equipment and furniture available from a single source supplier = Widely-recognized brand names in the industry used by
Slide 5: Assortment of Brands Provide Competitive Advantage
Assortment of Brands Provide Competitive Advantage SMR CuiLDcRAFT GAT Karo VidlRowl Prieds.. SPUTME Sapsc premier Bers’ ERS Ablitationse 3M & stute. $7 oficemate. Artin WESICOTE PaportsMats FISKARS' CEE Cag) xerox ©) @uitachi owvvision AVRover mimeo EPSON NY School Specialty. Ke SSAFCO Balu artcobel
Slide 6: School Specialty – Curriculum Segment Overview
School Specialty — Curriculum Segment Overview = Aleading developer of content based products and services for science, reading and literacy = Product development supported by 40+ product development specialists = Efficacy-based solutions in traditional print, digital and blended learning approaches
Slide 7: School Specialty Curriculum – Our Approach
School Specialty Curriculum — Our Approach We area preK-12, curriculum-based publisher of proprietary and non-proprietary products and services that support educationat all levels. Our products are typically sold to teachers and curriculum specialists and other educators with direct responsibility f
Slide 8: The “Turnaround” Plan
School \ (| Specialty. School Specialty, Inc. The “Turnaround” Plan Building a Sustainable Business for the Future Stabilizing our Base & Laying the Foundation for Growth Improving Processes & Efficiencies to Drive Returns
Slide 9: FY14 – A Year in Review (The Turnaround)
FY14 — A Year in Review (The Turnaround) Ee Process Improvement Programs and Business Stabilization Position SSI for Growth and Improved Bottom-line Performance | 1Q14 | 2Q14 | 3Q14 A 4Q14 ~ Emergence from Chapter 11 reorganization ~ Business significantly impacted by bankruptcy ~ Supply chain negat
Slide 10: Financial Performance Review
School Y (| Specialty. School Specialty, Inc. Financial Performance Review FY14 ended April 26, 2014 FY13 ended April 27, 2013
Slide 11: FY14 – Financial Highlights
FY14 — Financial Highlights wT Fiscal ‘14 Highlights (combined results for FY ‘14) Revenues decreased by 6.6% or $44.3 million to $630.7 million © Distribution segment revenues decreased 7.1% or $41.3 million O Curriculum segment revenues decreased 3.3% or $3 million © 93% of the year-over-year decl
Slide 12: FY14 – Balance Sheet Review
FY14 — Balance Sheet Review Key Highlights as of April 26, 2014 CAPITALIZATION ($'s in millions) As of 4/26/14 = Outstanding ABL facility balance was $10.6 million Cash and cash equivalents $9.0 New ABL Facility, maturing in 2018 $106 = Outstanding gross balance on Term Loan Credit New Term Loan, ma
Slide 13: FY15 Financial Outlook
FY15 Financial Outlook ee Stabilization in FY14 creates opportunities for revenue and EBITDA growth in FY2015 o Net revenues expectedto be $640 - $660 million, representing 1.5% — 4.5% year-over-year growth = Volume increases anticipated across all major product categories, except Agendas = Expect m
Slide 14: FY15 Near-Term Corporate Priorities
FY15 Near-Term Corporate Priorities ee ce cee © Continue to drive operational improvements and lower costs Progress made in Distribution Centers and Warehouses, but still much to be done to improve productivity based on execution of peak season (work flow improvements and additional savings to be id
Slide 15: Strategic Priorities by Segment
Distribution Segment Curriculum Segment Corporate ‘Restructure Sales, Marketing and Merchandising into one cohesive unit supporting key product offerings (supplies, furniture, technology, instructional solutions and student development) “Drive innovation in proprietary and 3*-party product assortmen
Slide 16: Positive Trends in Education End Markets
Positive Trends in Education End Markets Strong Customer Reach and Long-Term Relationships Opportunities to Penetrate New & Existing Markets through Product Expansion and Sales Force Realignment Significant Cost Saving Opportunities to Drive Bottom-line Returns Business Stabilization Post- Bankruptc
Slide 17: Safe Harbor Statement/Non-GAAP Financial Information
Safe Harbor Statement/Non-GAAP Financial Information This presentation contains statements about School Specialty's future financial conditions, resutts of operations, expectations, plans, or prospects, including the information statements also include those preceded or followed by the words “antici
Slide 18: Investor Contacts
i Investor Contacts: Kevin Baehler Acting Chief Financial Officer / SVP, Corporate Controller 920.882.5882 kevin.baehler@schoolspecialty.com Glenn Wiener Investor Relations 920.243.5392 IR@schoolspecialty.com School LY (| Specialty.
Slide 19: FY14 – Consolidated Combined Statement of Operations
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Slide 20: FY14 – Adjusted EBITDA Comparisons
FY14 — Adjusted EBITDA Comparisons 20 eee SCHOOL SPECIALTY, INC. (CONSOLDATED COMBINED STATEMENTS OF OPERATIONS (Ge Thous ands, Except PerShare Amosats) Unavdited / Non-GAAP jon GAAP Predecessor ——Gombined___ Company __ Twelve Month Ended Twelve Months Endad April 26,2014 April27,2013 Loss ofunconso
Slide 21: FY14 – Working Capital Analysis
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