Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (December 2007)
18 slides from Smith & Wesson Brands's investor presentation, Dec 7, 2007
Slide 1: Michael Golden, President/CEO; John Kelly, CFO – December 2007
Michael Golden, President/CEO John Kelly, CFO December 2007
Slide 2: Forward-looking statements
Smith & Wesson Holding Corporation 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 stateme
Slide 3: Delivering Results
Delivering Results Net Product Sales (Millions) Earnings per Share (Diluted) Net Income (Millions) 2004-2007 2008 (Est.) Revenue +99% EPS +1450% Revenue +28% EPS +29% 0 2 4 6 8 10 12 14 16 18 2004 2005 2006 2007 2008(E) 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 2004 2005 2006 2007 2008(E) 0 50 10
Slide 4: Company Profile
Company Profile 155-year old American firearms company Largest U.S. manufacturer of handguns & handcuffs 2006 market share: #1 in revolvers #2 in pistols New growth fueled by: Taking share in $732M core handgun market Growing presence with U.S. Government Expansion into $1.1B long gun market 1500 Em
Slide 5: S&W: 87% Brand Awareness
S&W: 87% Brand Awareness Source: American Sports Data - Nov, 2004 A company-sponsored, 2004 survey asked consumers about their future purchase intent: Product / Service S&W Rank Current Status Revolvers #1 Served Pistols #1 Served Tactical Rifles #1 Entered Market February 2006 Shotguns #3 Entered M
Slide 6: Handgun Market: $732MM
$154MM $87MM* 15% $578MM S&W 2007 (Includes Walther Products) Market 2006 2006 (CALENDAR) U.S. DOMESTIC NON-MILITARY MARKET - 2007 (FISCAL) S&W SALES $68MM 44% SOURCE: BATF 2006 Excise Tax Study & Smith & Wesson Management Estimates Handgun Market: $732MM Revolvers Pistols *Does not include $10MM in
Slide 7: S&W Net Product Sales (Year over Year Growth %)
S&W Net Product Sales (Year over Year Growth %) Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 43% 59% 56% 39% 40% 50% 44% 24% 22% 15% 10% 13% 1% - -4% - -10% 0% 10% 20% 30% 40% 50% 60% 70%
Slide 8: Four Key Sales Channels: Sporting Goods
Four Key Sales Channels SPORTING GOODS Delivering full range: pistols, revolvers, rifles, shotguns Revolutionary marketing and consumer pull programs S&W Consumer Sales ($ In Millions) 8% 8% 24% 32% 37% 52% 41% 78% 99% New Sales Structure Established 57% $0 $10 $20 $30 $40 $50 $60 $70 $80 Q1-06 Q2-0
Slide 9: Retail Input vs. Output Growth
Retail Input vs. Output Growth (Calendar Year over Year Growth %) - -10% - -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 NICS Background Checks FET Taxes Paid
Slide 10: Four Key Sales Channels
Four Key Sales Channels SPORTING GOODS Delivering full range: pistols, revolvers, rifles, shotguns Revolutionary marketing and consumer pull programs LAW ENFORCEMENT Market Size: 17,000 Departments and 800,000 Officers M&P Series polymer pistols launched January 2006 Win rates: 80%+ with pistols (26
Slide 11: Addressing New Growth Opportunities
Addressing New Growth Opportunities Safety...Security...Protection...Sport Homeland Security Products and Services Surround the Police Officer Surround the Foot Soldier Currently Exploring Defense Related Products and Services Firearms Law Enforcement Products and Services Handguns Long Guns
Slide 12: Entering New Markets: Long Guns
Entering New Markets: Long Guns SOURCE: BATF 2006 Excise Tax Study and Smith & Wesson Management Estimates Based on 2006 vs. 2007 data from top 3 distributors. The long gun market is 50% larger than the handgun market 2006 U.S. DOMESTIC NON-MILITARY MARKET Bolt-Action Rifles $480mm (43%) Shotguns $3
Slide 13: Building the Brand: Licensing
Building the Brand: Licensing Upgrading Retail Licensee Portfolio: Wilsons Leather, Wellco Enterprises (military boots), Zippo (lighters), Gun Safes, Gun Cleaning Products, Hats/T-shirts, Automotive Establishing licensees in professional markets where Smith & Wesson can do business beyond licensing:
Slide 14: Enhancing Productivity
Enhancing Productivity Achievements through FY 07: - Turns improvement +32% - Machine uptime improved to 85% - Guns/day output +57% vs '05 +22% vs '06 - Productivity ratio + 7% vs prior year Blending craftsmanship with technology: - Implementing Smith & Wesson Operating System - Investing in Equipme
Slide 15: Quarterly Income Statement Summary
Quarterly Income Statement Summary Sales: +39% Net Income: +3% Growth: (US$ in millions, except per share data) 2006 2007 Sales $50.8 $70.8 Gross Profit 16.1 23.1 Gross Margin 31.2% 32.3% Operating Income $5.3 $6.5 Net Income 2.9 2.9 EPS $0.07 $0.07 Three Months Ended October 31,
Slide 16: Annual Income Statement Summary
Annual Income Statement Summary Sales: +5% Net Income: +531% Sales: +27% Net Income: +66% FY 07 Results reflect Thompson acquisition, including approximately $2.7 million in amortization of inventory FMV valuation and acquisition related intangibles Sales: +49% Net Income: +49% Growth: Year Ended Ap
Slide 17: FY08 Annual Guidance
FY08 Annual Guidance Net Product Sales $234.8 $300.0 Net Income $13.0 $17.0 Earnings per Diluted Share: $0.31 $0.40 2007 2008 Actual Guidance (US$ in millions, except per share data)
Slide 18: Smith & Wesson
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