Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Investor Presentation (May 2015)
18 slides from Destination Xl's investor presentation, May 21, 2015
Slide 1: Red Mountain Annual L.P. Meeting, May 20, 2015
May 20, 2015 Red Mountain Annual L.P. Meeting
Slide 2: Forward Looking Statements and Non-GAAP Measures
FORWARD LOOKING STATEMENTS AND NON-GAAP MEASURES Forward Looking Statements: Certain information contained in this presentation, including, but not limited to, future store projections of sales per square foot, gross margin, occupancy and selling, general administrative expenses, EBITDA from continu
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS Dominant position as the largest big-and-tall specialty retailer Experience in our markets drives new-store success Destination XL store concept drives high forward comps, long-term sales growth Declining execution risk Increasing operating leverage
Slide 4: DXL Owns the Big & Tall Space
Only 4 stores owned by next-largest competitor DXL Owns the big & tall space 353 Total stores Note: Online traffic share as of April 2015 based on third-party market research #1 In online and brick-and-mortar big & tall sales We have been the only successful market entrant No competitor even comes c
Slide 5: Largest Selection of Big and Tall Brands
LARGEST SELECTION OF BIG AND TALL BRANDS 10 Private label brands 58 Apparel brands 54 Shoe brands 22 Exclusive brands
Slide 6: Market Experience Driving Highly Successful Store Rollout
Years of Casual Male and DXL store experience differentiates DXL from other retail rollouts MARKET EXPERIENCE DRIVING HIGHLY SUCCESSFUL STORE ROLLOUT First-hand knowledge of existing markets is crucial as we open new DXL stores in those markets Casual Male legacy experience provides years of proprie
Slide 7: DXL Stores Increasing Share of Portfolio
DXL STORES INCREASING SHARE OF PORTFOLIO 2013 2014 Year # Casual Male and Rochester Stores Casual Male and Rochester Stores SF # DXL Stores DXL SF DXL SF Differential 2012 364 1,349,000 48 475,000 (874,000) 2013 260 968,000 99 915,000 (53,000) 2014 215 796,000 138 1,179,000 383,000 2015E 174 640,000
Slide 8: Improved 5-Year Profitability
DXL Year 1 DXL Year 2 DXL Year 3 DXL Year 4 DXL Year 5 Sales per square foot $150 $170 $190 $205 $220 Gross margin, net of occupancy costs 42.0% 44.0% 45.0% 46.0% 47.0% SG&A as a % of sales 26.0% 22.0% 21.0% 21.0% 20.0% Four-wall cash flow 16.0% 22.0% 24.0% 25.0% 27.0% IMPROVED 5-YEAR PROFITABILITY
Slide 9: DXL Concept Drives Long-Term Sales Growth, High Forward Comps
DXL CONCEPT drives long-term sales growth, high forward comps Destination XL stores mature over a five-year period 1based on the average actual performance of DXL stores in years 1-4, with pro forma estimate in year 5
Slide 10: DXL Concept Drives Long-Term Sales Growth, High Forward Comps
DXL CONCEPT drives long-term sales growth, high forward comps 1Historical average of store results 5-Year Same-Store CAGR = 8%
Slide 11: Impressive DXL Double-Digit Comp Sales
IMPRESSIVE DXL DOUBLE-DIGIT COMP SALES (29 stores) (36 stores) (48 stores) (52 stores) (61 stores) (73 stores) (93 stores) 7 quarters of double-digit comp sales increases
Slide 12: Increasing Operating Leverage
Increasing Operating Leverage 2015E based on midpoint of the Company’s guidance; 2016E based on internal estimates EBITDA from continuing operations is a non-GAAP measure. See Appendix A for a reconciliation from its comparable GAAP measure
Slide 13: DXL Concept Greater Growth Potential Than Legacy Stores
DXL CONCEPT GREATER GROWTH POTENTIAL THAN LEGACY STORES 460 stores (only 4 DXL stores) in 2010, compared with an estimated 350 stores (with 210 DXL stores) in 2016 Average age of all stores = 14.3 yrs in 2010, compared with only 3.5 yrs for DXL stores in 2016 CMXL $175 sales per sq. ft at maturity;
Slide 14: Strong Free Cash Flow Trend
STRONG FREE CASH FLOW* TREND 2014 2015E 2013 2012 Neg. Free Cash Flow Pos. Free Cash Flow EBITDA CAPEX / Interest DXL historical stock price from 1/3/2012 to 5/18/2015 *Free Cash Flow is a non-GAAP measure and is calculated by taking cash flow from operations less capital expenditures. $3.39 1/3/12
Slide 15: Highly Concentrated Ownership
HIGHLY CONCENTRATED OWNERSHIP 2015 2014 2013 Top 10 Investors As of 3/31/15 Investor Name Position Red Mountain Capital Partners LLC 7,522,354 RBC Global Asset Management (U.S.) Inc. 6,940,311 Glenhill Capital Management, LLC 4,715,208 Holtzman (Seymour) 4,475,658 Advisory Research, Inc. (Piper Jaff
Slide 16: Summary
Summary Dominant position as the largest big-and-tall specialty retailer Our experience in existing markets drives new-store success Destination XL store concept drives high forward comps, long-term sales growth Significant growth opportunities beyond current plan
Slide 17: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION In addition to Operating Income (Loss) determined in accordance with United States Generally Accepted Accounting Principles (GAAP), the Company uses non−GAAP financial measures, such as “EBITDA from continuing operations,” in assessing its operating performance. The Company b
Slide 18: Investor Contact
INVESTOR CONTACT Jeffrey Unger V. P. Investor Relations Destination XL Group, Inc. jeffunger@usa.net 561-482-9715 (o) Ÿ 561-543-9806 (c) www.DestinationXL.com
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