Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (December 2010)
25 slides from Smith & Wesson Brands's investor presentation, Dec 13, 2010
Slide 1: Michael Golden, President, CEO, December 2010
1 Michael Golden President, CEO December, 2010
Slide 2: Safe Harbor
2 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 no
Slide 3: One Company: Two Strong Growth Platforms
3 One Company: Two Strong Growth Platforms Leader in quality firearms Leader in perimeter security Growth and profitability Leader in safety, security and protection NASDAQ Global Select: SWHC
Slide 4: Strong Financial Performance
4 Strong Financial Performance Fiscal Year April 30 Revenues Second Quarter FY 2011 Financial Highlights: Total Quarterly Revenue $96.3 M Gross Profit Margin 29.4% Cash $43.6 M Expanded Credit Facility: $120 M
Slide 5: Diversifying Revenue Streams
5 Diversifying Revenue Streams Prod Serv 0.72 0.28 Consumer Professional SWHC FY 2010 Prod Serv 0.7 0.3 Consumer Professional SWHC FY 2011(1) Prod Serv 0.84 0.16 Firearms Other Prod Serv 0.77 0.23 Firearms Other 72% 28% 70% 30% 84% 16% 80% 20% (1) First full year of USR consolidation
Slide 6: Robust Revenue Outlook
6 FY 2009 (A) Other 22 Revolver 90 Pistol 136 Long Gun 87 Robust Revenue Outlook Revenues ($M) Long Gun Pistol Revolver Other & Licensing USR: Perimeter Security $650M FY 2008 (A) Other 21 Revolver 82 Pistol 105 Long Gun 86 $335M $294M $406M
Slide 7: A Growing Profit Model
7 A Growing Profit Model As % of Sales SWHC FY 2010 Actual SWHC 3-5 Years Goal Net sales 100% 100% Gross margin 32.4% 33-34% Operating expenses 21.9% 19-20% Operating income 10.4% 13-15%
Slide 8: A Transformation - 2005-2010: From
8 A Transformation - 2005-2010 From: A manufacturer of revolvers Revenues: $126M F I R E A R M S :
Slide 9: A Transformation - 2005-2010: To
9 A Transformation - 2005-2010 To: A global leader in firearms Rapid Total Company Growth Healthy Balance Sheet $ Diversified Portfolio Handgun Market Leader #1 F I R E A R M S :
Slide 10: Key Success Factor: Innovative New Products
10 Key Success Factor: Innovative New Products F I R E A R M S : Product Consumer Law Enforcement Government / Military International Revolver u Market M&P Pistol M&P Tactical Rifle Thompson / Center Arms M&P4 - Tactical Rifle u u u 2006 2006 2006 2006 2006 2006 2006 2006 2007 - - - - - - - - 2009 2
Slide 11: Growth Drivers
Consumer: Concealed Carry, Personal Protection Hunting: Bolt Action Rifles, Youth Market Military: RFI/RFP Activity M9 Pistol Replacement M4, M16 Tactical Rifle Law Enforcement: Sidearm replacements, upgrades Federal Government: Federal Agencies Can Now Purchase M&P40 On ATF Contract 11 Growth Drive
Slide 12: Increased Addressable Market > Three Fold
12 Increased Addressable Market > Three Fold Addressable Market 1st Qtr 2nd Qtr East 0.17 0.83 2005 $0.6B S&W ~17% Handguns 1st Qtr 2nd Qtr East 0.13 0.87 2010 $2.4B S&W ~14% Handguns Plus entered long gun market of $1.1B Note: US excluding government F I R E A R M S :
Slide 13: The Brand = Security & Protection
13 The Brand = Security & Protection The Brand = Security & Protection
Slide 14: Security Platform: USR
Security Platform: USR TPT " A Smith &Wesson’ Company
Slide 15: One Company: Two Strong Growth Platforms
15 Leader in quality firearms Leader in perimeter security Growth and profitability Leader in safety, security and protection NASDAQ Global Select: SWHC One Company: Two Strong Growth Platforms
Slide 16: USR Key Differentiators
16 USR Key Differentiators 1. Innovative products 2. World class clients 3. Innovative business model
Slide 17: USR: Diversified, Industry Leading Product Offering
17 1. I N N O V A T I V E P R O D U C T S USR: Diversified, Industry Leading Product Offering Full array of perimeter security products Canopies and Prefab Buildings GRAB(r) Barriers Parts & Accessories EMBTM ODDS & Electronic Monitoring
Slide 18: USR: Flagship Product GRAB System: Unique Features
18 1. I N N O V A T I V E P R O D U C T S USR: Flagship Product GRAB(r) System: Unique Features Certified and field proven reduced risk vehicle barrier system Can be activated in under 1.5 seconds Cost effective: Able to span multiple traffic lanes Re-useable after impact Environmentally friendly: A
Slide 19: USR: World Class Clients
19 2. CLIENTS USR: World Class Clients A client list that specifies USR as the preferred provider of perimeter security solutions
Slide 20: USR: Unique Industry Relationships
20 Cons 3. INNOVATIVE BUSINESS MODEL USR: Unique Industry Relationships Architectural / Engineering Firms Product Firms Construction Companies
Slide 21: USR Growth Drivers
21 USR Growth Drivers Expansion and adoption of federal perimeter security standards (CFATS) New products: K8, EMB Expansion into new domestic markets Airports, Nuclear, Transportation Safety, Utilities, Data Centers, Banking 4. International expansion Increasing demand for critical infrastructure p
Slide 22: USR - Solid Growth Profile
22 USR - Solid Growth Profile Revenues Above revenues represent pro forma results on a full fiscal year basis.
Slide 23: Summary: USR
23 Summary: USR A growing business in a sustained growth global market GRAB(r) system provides differentiation, barrier to entry New proprietary product pipeline World class clients Unique capabilities with in-house project engineering, manufacturing, project management, installation, and maintenanc
Slide 24: Why Invest in Smith & Wesson
24 Why Invest in Smith & Wesson Diversifying revenue sources: Consumer, Professional, International 26% Revenue CAGR (2005-2010) Innovative products providing entry to new markets Well positioned for large government contracts pistol and rifle opportunities expected Winning in facility perimeter sec
Slide 25: NASDAQ Global Select: SWHC
25 NASDAQ Global Select: SWHC
Smith & Wesson Holding — Investor Presentation (December 2010) on 6ix