Xcel Brands, Inc · NASDAQ:XELB
Xcel Brands — Investor Presentation (January 2016)
25 slides from Xcel Brands's investor presentation, Jan 11, 2016
Slide 1: Investor Presentation January 12-13, 2016
Investor Presentation January 12 - 13, 2016 I LOVE XCEL BRANDS (NASDAQ:XELB)
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Certain statements in this presentation, as well as certain oral statements made by management during the presentation, constitute “forward - looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 . These statements includ
Slide 3: Agenda
Agenda 3 » INDUSTRY UPDATE » COMPANY OVERVIEW Working Capital Light, Owned Dynamic Brands, Virtual Vertical, Highly Scalable, Strong Growth » OUR BRANDS Dynamic Brands, Omni - Channel Distribution » HISTORICAL PERFORMANCE Consistent Growth of Revenues and Earnings, Strong Balance Sheet » FUTURE GROW
Slide 4: The Retail Industry is Being Disrupted
FLIPBOARD UPDATE » Disruptive forces are impacting all sectors » The Way People Shop Will Continue to Change » Companies Must Move Toward Where Things Are Going » Sales and Follower Satisfaction Are Achieved Through responsive delivery of great Products The Retail Industry is Being Disrupted 4
Slide 5: Xcel Brands - Innovation for the Retail Industry
Xcel Brands - Innovation for the Retail Industry 5 Xce l Brands Inc . (NASDAQ : XELB) is a media and brand management company that owns , li c en s e s, de sign s , manages production of products, generates media content an d m arket s a portfolio of dynami c consume r brands that engage our custome
Slide 6: Mission, Vision & Core Values
Mission, Vision & Core Values 6 THE MISSION To design and produce the best products for our followers and partners THE VISION To re - imagine shopping, entertainment and social as one CORE VALUES Be open and honest L isten to our followers Collaborate fairly to win G row through the two - second adv
Slide 7: Strategy
Strategy 7 Xcel’s strategy is to monetize the convergence of shopping , entertainment and social We accomplish this through four key tactics : » We own and license dynamic brands featuring designers and creative directors who have significant media presence » We develop captivating media content and
Slide 8: Highly Differentiated Business Model
Highly Differentiated Business Model 8 TRADITIONAL LICENSING TRADITIONAL WHOLESALE FAST - FASHION Inventory Position - - Inventory Turnover - - Supply Chain Management - Responsiveness / Lead Time Long Lead Long Lead Fast Fast Design - Distribution Channels Retail, E - Comm Retail, E - Comm Retail,
Slide 9: Omni-Channel Distribution
Omni - Channel Distribution 9 Interactive Television Wholesale Specialty » QVC, Inc. » The Shopping Channel (Canada) » CJo Shopping (Korea) » Hudson Bay Company » Lord & Taylor » Better Dept Stores » Michael’s » 1800 Flowers » Hewlett Packard » Best Buy » Johnson & Johnson
Slide 10: Our Brands
Our Brands 10 Interactive Television Wholesale Specialty (1) (1) Highline Collective is a new brand projected to be launched at Lord & Taylor and The Bay in 2016.
Slide 11: Isaac Mizrahi Live
NY ISAACMIZRARILIVE C MIZRAHI EW YORK ISAA\ W
Slide 12: Judith Ripka
JUDITH RIPKA JUDITH RIPKAim GOSS
Slide 13: H Halston
He HALSTON
Slide 14: C. Wonder
Crwonver WONDER
Slide 15: Interactive Television
Interactive Television ISAAC MIZRAHI LIVE H BY HALSTON C. WONDER JUDITH RIPKA 15
Slide 16: Wholesale
16 Wholesale H HALSTON IMNYC / ISAAC MIZRAHI NEW YORK HIGHLINE COLLECTIVE JUDITH RIPKA LTD C. WONDER LIMITED (1) (1) Highline Collective is a new brand projected to be launched at Lord & Taylor and The Bay in 2016.
Slide 17: Specialty
17 Specialty JOHNSON & JOHNSON MICHAELS HEWLETT PACKARD (1) KLEENEX BEST BUY 1800 FLOWERS (1) Isaac Mizrahi x Hewlett Packard SmartWatch projected to launch in Spring 2016.
Slide 18: Best In Class Retail Partners
Best In Class Retail Partners 18 Our brands are distributed through an Omni - Channel Sales strategy through best - in - class retail partners across Direct - Response Television, Bricks - and - Mortar, and Digital channels including :
Slide 19: Retail Sales and EBITDA Scorecard
$114.0MM $142.0MM $212.0MM $380.0MM $457.0MM Retail Sales and EBITDA Scorecard 19 (1) Retail Sales, Revenue and Adjusted EBITDA measurements for 2015 are preliminary and subject to change. We have not completed our year - end closing procedures and our auditors have not completed their final audit p
Slide 20: Strong Balance Sheet
Strong Balance Sheet 20 As of December 31 , 2015 *, Xcel had $ 16 . 9 MM of cash against $ 29 . 3 MM of Senior Debt, which results in Net Debt ( 4 ) of $ 12 . 4 MM and an effective leverage ratio based on 2015 preliminary Adjusted EBITDA of 1 . 4 x, which is one of the lowest leverage ratios in the
Slide 21: Organic Growth Opportunities
• Expansion of our Michaels and 1800 Flowers partnerships • New specialty opportunities including for Home Improvement , Crafts , Fabrics , Smart Technology, and others. • Opportunities with specialty retailers in Canada, Mexico, and globally • IMNYC, H Halston, C. Wonder and Highline Collective pro
Slide 22: Acquisition Strategy and Brand Development
Acquisition Strategy and Brand Development Xcel is seeking to acquire brands that are : x Strategic x Synergistic x A ccretive 22
Slide 23: Summary
Summary 23 » Xcel Brands is built to develop innovative solutions to address the changes in our industry. » Xcel’s “Virtual Vertical” business model is working capital light but its design, sourcing, and marketing infrastructure provides a highly scalable platform for strong organic growth. » We own
Slide 24: Xcel Brands - Differentiate By Design
XCEL BRANDS Differentiate By Design
Slide 25: Exhibit I Reconciliation of Net Income (Loss) to Adjusted EBITDA
Exhibit I Reconciliation of Net Income (loss) to Adjusted EBITDA 25 Exhibit I Reconciliation of Net Income (Loss) to Adjusted EBITDA Year Ended December 31, (Millions) 2012 2013 2014 2015 (Preliminary, Unaudited) Net income (loss) $ 4.28 $ 1.53 $ (1.03) $ 2.26 Depreciation and amortization 0.86 0.87