Purple Innovation, Inc. · NASDAQ:PRPL
Purple Innovation — Global Partner Acquisition — SPAC Merger (July 2017)
21 slides from Purple Innovation's SPAC merger presentation, Jul 27, 2017
Slide 1: Purple investor presentation July 27, 2017
Purple investor presentation July 27, 2017
Slide 2: Purple changes lives
2 Vinny , Purple Customer Purple changes lives Leveraging deep comfort technology expertise to help millions of people feel more comfortable “My name is Vinny. I am disabled and suffer from Spastic Cerebral Palsy. My disability causes me to suffer with constant back and leg pain. My wife and I purch
Slide 3: A success 23 years in the making
3 A success 23 years in the making Purple was founded by engineer brothers Tony and Terry Pearce, who have instilled a company culture focused on innovation Prior to launching Purple, Terry and Tony spent 20 years developing and manufacturing advanced cushions for leading consumer brands Purpl
Slide 4: Purple by the numbers
4 Purple by the numbers Profitable since inception (3) 57 granted & pending patents 271% growth (2) $187m annualized net revenue (1) 500m video views (5) 11,000 + five - star customer reviews (6) 75% of all mattress social engagement (4) 664,000 square feet of manufacturing space (1) Based on Q2 201
Slide 5: Purple's unique strategy and differentiation
5 Purple’s unique strategy and differentiation ▪ Focused on improving how people sleep, sit and stand ▪ Mattresses, pillows, cushions and accessories Growing product portfolio ▪ In - house innovation, manufacturing and marketing teams Vertical integration ▪ Hyper - Elastic Polymer revolutionized the
Slide 6: Purple's innovative and patented technology
6 Purple’s innovative and patented technology… History of innovation led to the rise of comfort technology across sleep, sit and stand Hyper - Elastic Polymer Purple’s patented Hyper - Elastic P olymer enables the columns to provide optimum support and heat dissipation that make for the best sleep T
Slide 7: Positions Purple as the next leader in a large and growing industry
7 …Positions Purple as the next leader in a large and growing industry Purple – introduced breakthrough innovation The mattress industry is large, stable and growing ($bn) (1) First coil spring construction Foam rubber mattresses and pillows Modern waterbed Airbeds One of the very few significant in
Slide 8: One of a kind solution
8 One of a kind solution A superior product at a competitive price that is functionally different and visually unique Purple’s performance, unique look and construction make the mattresses completely differentiated Other products in market Purple’s game changing comfort technology products Hyper - E
Slide 9: Growing complementary product portfolio creates compelling long-term value proposition
9 Launch date 2010 2016 2017 Platform Base Sheets Growing complementary product portfolio creates compelling long - term value proposition Seat Cushions Pillow Mattress Protector PowerBase Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Mattress Price (1) Patented advanced cushioni
Slide 10: Innovation + manufacturing + marketing = vertical integration
10 Innovation + manufacturing + marketing = vertical integration Dedicated team focused on improving existing products and prototyping new designs Patent - protected Hyper - Elastic Polymer technology 57 granted and pending patents Innovation Manufacturing Marketing 2 facilities totalling 66
Slide 11: Multi-channel distribution strategy
11 Direct to consumer Brick - and - mortar partnerships Specialty Purple continues to increase sales and penetration through existing channels 2 million unique visitors per month Highly coveted platform statistics (Youtube, Facebook etc.) Established relationships given long history of produ
Slide 12: Purple growth opportunities
12 Purple growth opportunities Multi - channel distribution / retail partnerships International expansion Existing product innovation New product launches across sleep, sit & stand Category & vertical expansion Purple has multiple vectors to drive growth Direct - to - consumer growth & penetration 5
Slide 13: Historical financials
13 $21.0 $78.0 YTD16 YTD17 $4.6 $65.7 2015 2016 Historical financials Y - o - Y net revenues YTD16 vs YTD17 (1) 2015 vs 2016 271% ( millions) Consistent track record of profitability 5 Note: 2016 full year financial results per audited financials. All other figures are unaudited unless noted (1) Yea
Slide 14: Visionary leaders
14 Visionary leaders… 28 years of product development history with Purple’s predecessor companies Tony is the visionary behind Purple’s patented Hyper - Elastic Polymer technology Has numerous patents and has been key to taking many ideas to the manufacturing stage Over 13 years of experienc
Slide 15: Complemented by an exceptional executive team
15 …Complemented by an exceptional executive team Wayne Moorehead Chief Brand Officer Previously CMO for a large public company as well as an INC 500 company where he was instrumental in building their billion - dollar brand Has led brand strategy at multiple creative agencies where he worked wi
Slide 16: Complemented by an exceptional executive team (continued)
16 Complemented by an exceptional executive team (continued) 6 Charlie Smith Chief Operating Officer Spent 2 years as a managing partner at Milestone Management Partners, an international training and consulting firm specializing in operational excellence Acted as VP of Global Operations at Mori
Slide 17: Investment highlights
17 Investment highlights Brand Powerful brand and scalable platform built on patented comfort technology Market opportunity Technology and channel disruption to a massive and growing market Technology Backed by patented technology and IP, revolutionizing the way people sleep, sit and stand Innovativ
Slide 18: Illustrative transaction terms
18 Illustrative transaction terms Key transaction terms and next steps Sources & uses Sources (in $ millions) GPAC cash (2) $155.3 Purple roll - over equity $1,010.0 Total sources $1,165.3 Uses (in $ millions) Cash to existing Purple shareholders $90.0 Cash to balance sheet $55.3 Purple roll - over
Slide 19: Appendix I: Financial overview
19 Appendix I: Financial overview
Slide 20: Historical balance sheet
20 Historical balance sheet ($ actual) FYE 2016 ASSETS: Cash and equivalents $4,013,217 Accounts receivable, net 2,327,928 Inventories, net 5,334,861 Prepaids and other current assets 921,974 Total current assets 12,597,980 Property, plant, and equipment, net 6,104,434 Other long-term assets 139,502
Slide 21: Disclaimer
21 This Investor Presentation is for informational purposes only and does not constitute an offer to sell, a solicitation of an off er to buy, or a recommendation to purchase any equity, debt or other financial instruments of Purple Innovation, LLC (“Purple” or the “Company”) or GPAC or any of Purpl