Turning Point Brands, Inc. · NYSE:TPB
Turning Point Brands — Gateway Conference 2018
14 slides from Turning Point Brands's conference presentation, Sep 6, 2018
Slide 1: Gateway Conference September 6, 2018
Gateway ConferenceSeptember 6, 2018
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTSThis presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each
Slide 3: Leading Other Tobacco Products (OTP) provider
Leading Other Tobacco Products (OTP) provider (not cigarettes)Broad portfolio of compelling brands in higher margin tobacco productsWell positioned for growing vapor and evolving alternative products through NewGen sales engineCreating leverage as an active consolidator through management, regulator
Slide 4: Focus brands drive organic growth
FOCUS BRANDS DRIVE ORGANIC GROWTH SMOKELESS SMOKING NEWGEN Among fastest growing MST brands#2 Chew brand Leading vaping ecommerce sitesDistribution engine for vapor and alternatives #1 Premium paper in U.S. and Canada#1 MYO Cigar wrap 29% 37% 34% 4 % of LTM (6/18) Net Sales Source: MSAi
Slide 5: Stoker's: long-term organic growth
STOKER’S: LONG-TERM ORGANIC GROWTH Acquired Stoker’s brand in 2003Stoker’s was the original “big-bag” chew brand, and its brand equity and quality product drove outperformance in a declining marketExpanded a highly-differentiated and proprietary moist snuff tub (equivalent to 10 cans) in 2007, which
Slide 6: Zig-Zag: consistent sales with tailwinds
ZIG-ZAG: CONSISTENT SALES WITH TAILWINDS #1 premium paper in the U.S. and CanadaContinued industry leading share in wraps Developed multiple SKUs for promising Canadian market, as our partner prepares for legalization of recreational cannabis in October 2018Early feedback on U.S. Hemp papers has bee
Slide 7: NewGen: sales engine
NEWGEN: SALES ENGINE Acquired VaporBeast in November 2016. One of the leading wholesale distributors reaching 4,500 vape shopsInternational Vapor Group (“IVG”) announced September 6, 2018, is a best in class B2C engine VaporBeast and IVG combined, along with Vapor Shark and Vapor Supply, creates a f
Slide 8: NewGen: IVG review
Acquired International Vapor Group (“IVG”) for $24 million plus $4.5 million of contingent earnouts. 6/18 LTM Sales of $47.7 million and EBITDA of $4.9 millionIVG comprises a handful of B2C brands that provide adult consumers vaping experiences across proprietary and third-party vapor productsTeam i
Slide 9: Balanced portfolio across consumer classes
BALANCED PORTFOLIO ACROSS CONSUMER CLASSES 9
Slide 10: Well-positioned as an industry consolidator
WELL-POSITIONED AS AN INDUSTRY CONSOLIDATOR EXPERTISE IN REGULATED MARKETS TPB Today Expanding our FDA regulatory infrastructure expertise through a leadership team of QA, R&D, legal and scientific professionals Growing share of products in regulated marketRegulatory changes likely to cause signific
Slide 11: Growing cash flow and reduced leverage
GROWING CASH FLOW AND REDUCED LEVERAGE Increasing Adjusted EBITDA Reduced Interest Expense Reduced Leverage (Net Debt / Adjusted EBITDA) Growing Net Sales 11 $ in millions To supplement our financial information presented in accordance with generally accepted accounting principles in the United Stat
Slide 12: Positioned for future continued growth
POSITIONED FOR FUTURE CONTINUED GROWTH 12 Cash flow from strong focus brandsEfficient asset-light operating modelPowerful sales organization and expertise in highly regulated environmentInnovative, industry-leading management team Solid infrastructure Reduced debt, leverage and interest levelsStrong
Slide 13: Appendix: Reconciliation of Adjusted EBITDA to Net Income
APPENDIX: RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME 13
Slide 14: Appendix: Reconciliation of Adjusted EBITDA to Net Income, IVG LTM EBITDA
APPENDIX: RECONCILIATION OF ADJUSTED EBITDA TO NET INCOMEIVG: LTM (6/18) EBITDA 14