Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — Investor Presentation (September 2016)
28 slides from Lakeland Industries's investor presentation, September 2016
Slide 1: Emerging Markets Exposure, Western Markets Expertise
NASDAQ: LAKE Steve Bachelder Chief Operating Officer September 2016 Emerging Markets Exposure… …Western Markets Expertise
Slide 2: Safe Harbor Statement
Safe Harbor Statement With the exception of historical information, the statements set forth in this presentation include forward-looking statements that involve risk and uncertainties. The company wishes to caution that a number of important factors could cause actual results to differ materially f
Slide 3: Lakeland At A Glance
Lakeland At A Glance • Leading manufacturer of industrial protective clothing • Serving all major industrial market sectors – Chemical/Petrochemical – Basic Industry: Auto, Steel, Construction, Electric & Gas Utilities – Health Care & Food Chain; High Tech – Government, Fire Department, Public Safet
Slide 4: Hobbled by Prior Dependence on DuPont Fabrics & Exit from Brazil
HOBBLED BY PRIOR DEPENDENCE ON DUPONT FABRICS & EXIT FROM BRAZIL Fiscal Year Sales History: Tyvek/Tychem and Brazil Declines Mask Organic Domestic and International Growth* ($ Millions) $120 $100 $80 $60 $40 $20 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Non-DuPont Items Total Ex-Braz
Slide 5: Financial Issues Through 2015
Financial Issues Through 2015 Company In A Sharp Turn Around Mode • DuPont had squeezed us for five years before terminating license in FY 2012. • We responded by opening international markets, creating our own branded products, and beefing up our sales force. • Then in FY 2013 Company got “homered”
Slide 6: Growth in Operating Profit From Continuing Operations
Growth in Operating Profit From Continuing Operations (Year Ended January 31) ($ Millions) $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 2013 2014 2015 2016 Operating Profit From Continuing Operations 6
Slide 7: Proof Of Turn Around from FY2014-FY2016
Proof Of Turn Around from FY2014-FY2016 Highlights FY 2016 (continuing operations) • Revenue Growth • Consolidated sales increased for third consecutive year, despite currency headwinds • Revenues driven by organic growth and emergency demand in first three quarters of FY 2016 Gross margin for the y
Slide 8: Long Term Improvements in Continuing Operations
Long Term Improvements in Continuing Operations Summary of Operations Year Ended January 31, (in thousands, except share and per share data) 2016 2015* 2014* 2013* Income Statement Data: Net sales from continuing operations 99,646 $ 93,419 $ 84,173 $ 78,260 Operating profit (loss) from continuing op
Slide 9: The Company Today: Positioned for Continued Long Term Growth
The Company Today: Positioned for Continued Long Term Growth in Revenues and Profitability 9
Slide 10: Expanded Product Line
Expanded Product Line Limited Use/Disposable Chemical Suits High Visibility Clothing Protective Clothing Fire Fighting & Heat Protective Gloves & Arm Guards Apparel/Reusable Woven Garments 10
Slide 11: The Right Focus: End-user Segments for Personal Protective Equipment
The Right Focus: End-user Segments for Personal Protective Equipment Gas Detection Other 6% 21% Utilities 9% Petrochemical 10% Auto 11% Construction Metals 10% 8% Transport Healthcare Pulp & Paper 7% 9% 7% Lakeland End-user Segments Address Over 55% of Total Market but the Company Possesses Less Tha
Slide 12: The Right Focus: Personal Protective Equipment Market
The Right Focus: Personal Protective Equipment Market Footwear Gas Detection Head Fall 13% 6% 2% 4% Eye Hand 6% 29% Respiratory 15% Hearing Protective Clothing 3% 22% Lakeland Product Segments Address Over 50% of $23 Billion Market but the Company Presently Represents Less Than 1% of the Total Addre
Slide 13: CAGR for Market Segments
Growth Opportunities Lakeland Target Markets Among Largest and Fastest Growing High CAGR for Market Segments (>6%) 3 2 1 Head/Eye/Face 7 6 5 4 1 2 Respiratory Medium (2%-6%) 3 Hand 4 Hearing 5 Prot. Apparel Low 6 Foot (0%-2%) 7 Fall Prot. Small Medium Large (<$1.0 billion) ($1.0-$2.5 billion) (>$2.5
Slide 14: Product Mix
Product Mix Revenue by Product – Historical Approximation Homeland Security Chemical Suits 7% High Visibility 7% Glov es & A rm Protection 4% Fire and Heat Protectiv e Clothing and other Wov ens 18% Disposable Clothing 64% Homeland Security Chemical Suits Gloves & Arm Protection Fire and Heat Protec
Slide 15: Optimized Global Presence
Optimized Global Presence Sales Operations (16) Manufacturing Location (6) Headquarters: Ronkonkoma, New York 15
Slide 16: International Traction
May want to add 1HFY17 International Traction • International Growth – Foreign Revenues Comprised 43% of Total in FY16 International Revenues ($ Millions) 60 • Manufacturing Locations – Small facility in US 50 – Expanded plant in Mexico 40 – Expansion in China – Start-up operation in India 30 • New
Slide 17: Lakeland Mexico facility
Lakeland‘: INDUSTRIAS LAKELAND S.A. DE C.V. Ses - ee A a 17
Slide 18: Lakeland Industries Asia Pacific
Lakeland‘: LAKELAND INDUSTRIES ASIA. PACIFIC 18
Slide 19: Lakeland Industries Asia Pacific
‘| Lakeland (2 LAKELAND INOUSTRIES ASIA PACIFIC 19
Slide 20: Diversification Strategy & Transition
Diversification Strategy & Transition (Continuing Operations for FY2016 Ended 1/31/16) Area FY2006 FY2016 Multi-sourced, lower priced COGS/Raw Materials Tied to DuPont fabrics than DuPont 29.2% in F14, 32.5% in F15 and Pricing Power: Gross Margin Approx. 22% 36.5% in F16 (excluding Brazil) Sales Cha
Slide 21: Unique Operating Platform
Unique Operating Platform • Our base business grows both organically and from international expansion • But always in a position to gain bonus business from emergencies like pandemics, oil/chemical spills, natural disasters, etc. • While timing is unpredictable, they do occur regularly, and spike ou
Slide 22: Growth Catalysts and Strategy
Growth Catalysts and Strategy • Protective clothing market projected to grow at 7% world- wide; faster in developing markets, and we can do much better • Concentrating on high growth potential regions (Asia) or where market share can be increased (Europe, US) • Developing new and higher margin produ
Slide 23: International Profit Leverage Opportunities
International Profit Leverage Opportunities • We can grow anywhere, but best leverage is in developing markets • Developing countries/industries adopting OSHA-like regulations • We already have our manufacturing capacity in place • Little cost to extend broader US product line offerings or adapt to
Slide 24: Attractive Investment Merits
Attractive Investment Merits NASDAQ: LAKE • Turnaround strategy has succeeded LAKE Stock Information • Potential for steady industry-beating long term Share Price $10.36 world-wide sales and profit growth Shares (FD Issued & O/S) 7.3 million • Huge upside in developing markets Market Cap $75.6 milli
Slide 25: Appendix: Financials
Appendix: Financials 25
Slide 26: Full Year Operating Earnings and Adjusted EBITDA Reconciliation
Full Year Operating Earnings and Adjusted EBITDA Reconciliation Operating Results as Restated for Discontinued Operations ($ 000) Reconciliation to GAAP Results Year Ended Year Ended January 31, January 31, 2016 2015 Net sales from continuing operations $99,646 $93,419 Year over year growth 6.7% ---
Slide 27: Quarterly Operating Earnings and Adjusted EBITDA Reconciliation
Quarterly Operating Earnings and Adjusted EBITDA Reconciliation Operating Results as Restated for Discontinued Operations ($000) Reconciliation to GAAP Results Quarter Ended Quarter July 31, 2016 Ended April 30, 2016 Net sales from continuing operations $22,269 $20,369 Gross profit from continuing o
Slide 28: Balance Sheet
Balance Sheet LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS July 31, January 31, 2016 2016 Current assets ($000’s) Cash and cash equivalents $7,940 $7,022 Accounts receivable, net of allowance for doubtful accounts of $573 and $593 at July 31, 2016 and Janua
Lakeland Industries — Investor Presentation (September 2016) on 6ix