Luvu Brands, Inc. · OTC:LUVU
Luvu Brands — Investor Presentation (October 2018)
27 slides from Luvu Brands's investor presentation, Oct 17, 2018
Slide 1: Investor Deck
Luvu Brands, Inc. Investor Deck October 2018 OTCQB Venture Market: LUVU
Slide 2: Safe Harbor / Forward Looking Statement; Non-GAAP Financial Measure
SAFE HARBOR / FORWARD LOOKING STATEMENT This investor presentation contains forward-looking information and other forward-looking statements within the meaning of applicable U.S. securities laws. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors
Slide 3: LUVU Brands At a Glance
LUVU Brands At a Glance Exchange: OTCQB Venture Ticker: LUVU Float: 27M shares • Vertically integrated US manufacturer Market Cap: $2.3M • Diverse consumer brands with international distribution Share Price (10/16/18): $.04 • 2018 revenue of $16.4M 52-Week Range: $0.025 - $0.074 • Operating metrics
Slide 4: Our Brand Portfolio
Our Brand Portfolio Liberator®, a brand category of iconic products for enhancing sensuality and intimacy Jaxx®, a diverse range of casual fashion daybeds, sofas and beanbags made from virgin and re-purposed polyurethane foam Avana®, inclined bed therapy products, assistive in relieving medical cond
Slide 5: Our Manufacturing Capabilities
Our Manufacturing Capabilities Luvu Brands, Inc. OTCQB Venture: LUVU 5
Slide 6: Luvu Brands: Unique Growing Brands
Luvu Brands Unique Growing Brands Luvu Brands, Inc. OTCQB Venture: LUVU 6
Slide 7: Our Brand Portfolio
Our Brand Portfolio Liberator Bedroom Adventure Gear® Luvu Brands, Inc. OTCQB Venture: LUVU 7
Slide 8: Our Brand Portfolio: Sales History FY '13 to FY '18
Our Brand Portfolio Sales History – FY ‘13 to FY ‘18 $8.1 $7.7 $7.1 $7.2 $7.3 $6.8 5 year CAGR = 2% Luvu Brands, Inc. OTCQB Venture: LUVU 8
Slide 9: Our Brand Portfolio
Our Brand Portfolio Luvu Brands, Inc. OTCQB Venture: LUVU 9
Slide 10: Our Brand Portfolio
Our Brand Portfolio Luvu Brands, Inc. OTCQB Venture: LUVU 10
Slide 11: Sales History
Sales History $6.0 $4.5 $3.1 $2.3 $1.7 5 year CAGR = 36% Luvu Brands, Inc. OTCQB Venture: LUVU 11
Slide 12: Luvu Brands: Financials
Luvu Brands Financials Luvu Brands, Inc. OTCQB Venture: LUVU 12
Slide 13: Sales History – FY 2014 to FY 2018
Sales History – FY 2014 to FY 2018 Including discontinued imported products $16.8 $16.9 $16.4 $15.6 $14.7 4 year CAGR = 2% Luvu Brands, Inc. OTCQB Venture: LUVU 13
Slide 14: Quarterly Net Sales – FY 2015 to FY 2018
Quarterly Net Sales – FY 2015 to FY 2018 (Includes discontinued imported products until Q2 FY ’17) Luvu Brands, Inc. OTCQB Venture: LUVU 14
Slide 15: Sales History – FY 2014 to FY 2018
Sales History – FY 2014 to FY 2018 Excluding discontinued imported products $16.4 $14.9 $13.6 $11.5 $12.4 4 year CAGR = 10% Luvu Brands, Inc. OTCQB Venture: LUVU 15
Slide 16: Gross Profit History – FY 2014 to FY 2018
Gross Profit History – FY 2014 to FY 2018 $4.9 $4.8 $4.2 $3.9 $3.8 4 year CAGR = 8.5% Luvu Brands, Inc. OTCQB Venture: LUVU 16
Slide 17: EBITDA History – FY 2014 to FY 2018
EBITDA History – FY 2014 to FY 2018 $1.0 $.9 $.4 $.3 $.2 5 year CAGR = 29% Luvu Brands, Inc. OTCQB Venture: LUVU 17
Slide 18: Amazon Sales History – FY '13 to FY '18
Amazon Sales History – FY ‘13 to FY ‘18 $5.4 $5.0 $4.8 $4.1 $2.4 $1.3 6 year CAGR = 33% Luvu Brands, Inc. OTCQB Venture: LUVU 18
Slide 19: Mass Market Sales History – FY '13 to FY '18
Mass Market Sales History – FY ‘13 to FY ‘18 (Excluding Amazon Sales) $2.1 $1.8 $1.6 $.9 $.9 $.8 6 year CAGR = 18% Luvu Brands, Inc. OTCQB Venture: LUVU 19
Slide 20: FY 2018 Financial Review
FY 2018 Financial Review (in thousands) (in thousands) Direct $5,326 Liberator $7,275 Wholesale 10,718 Jaxx 3,664 Other 382 Avana 2,332 Total $16,426 Products purchased for resale 2,407 Other 748 Total $16,426 Luvu Brands, Inc. OTCQB Venture: LUVU 20
Slide 21: Financial Review: Gross Profit and SG&A Trends
Financial Review Gross Profit and SG&A Trends Quarterly Gross Profit Q4 FY '17 Q1 FY '18 Q2 FY '18 Q3 FY '18 Q4 FY '18 Gross profit $ 1,071 $ 979 $ 1,358 $ 1,277 $ 1,181 Gross Margin % 29.2% 27.0% 29.3% 29.9% 30.3% (1) (1) + 110 basis points from Q4 FY17 Quarterly SG&A Q4 FY '17 Q1 FY '18 Q2 FY '18
Slide 22: Luvu Brands: Growth Strategy
Luvu Brands Growth Strategy Luvu Brands, Inc. OTCQB Venture: LUVU 22
Slide 23: Growth Strategy
Growth Strategy - Introduction of new products in vacuum compressed packaging will expand our US and international sales to specialty retailers and e- tailers. Additional listings on Amazon and other marketplaces. Expanded consumer advertising / press / social. Branded Liberator pleasure obj
Slide 24: Growth Strategy
Growth Strategy - Continue to develop unique flat-packed vacuum compressed products including spandex beanbags, modular daybeds, sofas and outdoor products. Expand collections with Rooms To Go, Room & Board, Wayfair, Overstock and others. Continue international expansion and relationships with
Slide 25: Growth Strategy
Growth Strategy - Continue to develop fashion-based comfort products for in-bed relaxation and relief of chronic pain and GERD. Vacuum compress for in-store Point of Purchase including Target, BBB, Walmart and specialty catalogers and web merchants. Expansion into EU including Amazon UK and Ge
Slide 26: Conclusion
Conclusion We are a manufacturing, marketing and invention company with diverse distribution across three unique brands. Our ability to monetize new products with minimal investment is extraordinary. Large upside for continued growth without additional capital equipment. At inflection point;
Slide 27: Luvu Brands, Inc.
Luvu Brands, Inc. Ronald Scott Chief Financial Officer P: (770) 246-6426 E: ir@luvubrands.com Luvu Brands, Inc. OTCQB Venture: LUVU 27