Xcel Brands, Inc · NASDAQ:XELB
Xcel Brands — IPO Roadshow (March 2015)
28 slides from Xcel Brands's IPO roadshow presentation, Mar 10, 2015
Slide 1: Investor Presentation
Investo r Presentation 03.09. 20 15
Slide 2: Forward-looking statements
Cer t ain s t a t e m en t s i n t h i s presen t a t ion, as w ell as cer t ain oral s t a t e m e n t s made by m anag e ment dur i ng t he presen t a t ion, co ns t i t u t e “ f or w ard - lo o k i ng s t a t e m e n t s” w i t hin t he m eaning o f t he Uni t ed S t a t es Pr i v a t e Securi t
Slide 3: Agenda
AGENDA A. INTRODUCTIO N T O XCE L BRANDS B. THE XCEL BUSINESS MODEL C. GROWTH OPPORTUNITIES D. STRONG TRACK RECORD OF GROWTH E. INVESTMENT HIGHLIGHTS – RECAP 03.09.15 3
Slide 4: Introduction to Xcel Brands
A. INTRODUCTIO N T O XCE L BRANDS • OUR OPPORTUNITY • OUR VISION & MISSION • OUR BRANDS • OUR SALES 03.09.15 4
Slide 5: Our Opportunity
OUR OPPO R T U NI T Y 1 P R I CE IN F O R M A T IO N P r ic e transparency, showrooming 2 E - C OMME R CE Mall traffic is decreasing 3 CUSTOMER VOICE Marketing changed, customer wants input 4 F A S T F A S H IO N C ustomers demand faster supply chains 5 CROWDED MARKET Multiple retailers, c ustomer e
Slide 6: Our Vision & Mission
VISION: T o re - imagin e shopping , entertain m ent a n d social a s o n e OUR VISION & MISSION MISSION: T o design and produce the best products f or o ur f ollo w ers and partne r s 03.09.15 6
Slide 7: Our Brands
OUR BRANDS Xce l Brand s owns , li c en s e s, de sign s an d m arket s dynami c consume r brands throug h a n omni - channe l retai l strategy , to m aximiz e t h e potentia l i n the convergenc e o f shoppin g , entertainmen t an d socia l 03.09.15 7
Slide 8: Our Sales
O u r d y nami c b rand s genera te ove r $35 0 millio n i n retai l sales * a cros s over 15 0 ca t egorie s o f p roduc ts OUR SALES * Estimated and p re limina r y 2014 s al es of products under our brands a t re t ail . 03.09.15 8
Slide 9: The Xcel Business Model
B. THE XCEL BUSINESS MODEL • ADVANTAGES • STRATEGY 03.09.15 9
Slide 10: The Xcel Business Model – Advantages
1) Highly Flexible 2) O w n & Con t ro l Brand 3) Predic t abl e Revenu e Base 4) Hig h EBITD A Margins 5) Scalabl e Busines s Model 6) Working Capital Light 2 3 4 5 6 1 THE XCEL BUSINESS MODEL – ADVANTAGES • Xce l opera t e s i n a working capital light licensin g m odel , w here b y w e c on t ro
Slide 11: The Xcel Business Model – Strategy
THE X CEL BUSINESS MODEL – STRATEGY • Ou r busines s mode l positio n s u s fo r th e futur e o f retail • W e accomplis h thi s b y combinin g f ou r ke y strategies: 1 DYNAM I C BRANDS 2 RESPONSIVE DESIGN 3 OMN I - CHANNEL SALES 4 360 ƒ MARKETING 03.09.15 11
Slide 12: Dynamic Brands
1. DYNAMIC BRANDS Xce l own s an d licen s e s d y nami c b r ands includin g Isaa c M izrahi , J udit h Ripka , H Halston and Liz Claiborne New York Ou r f ocu s i s o n brand s tha t hav e dynamic personalitie s associate d wit h t he m wh o can engag e i n conversation s wit h ou r c ustomers and
Slide 13: Responsive Design Capabilities
2. RESPONSIVE DESIGN CA P ABILITIES • Xce l ha s m ad e signi f ican t inves tm en ts i n design capabilitie s : » Ove r 40 in - house and 60 indirect designers with expertis e acros s multipl e categories » I n - hous e CA D team to develo p proprietar y print s and patterns » Cloud - base d desig
Slide 14: Omni-Channel Sales
3. OMNI - CHANNEL SALE S • Xce l p romo t e s our brand s t hroug h an Om ni - Channe l r e t ai l sale s s t ra t egy t ha t include s p romo t io n t h rough : » D irect - Response T e levision » E - Commerce » Brick s - and - Mortar Retailers • B y collaborating to leverag e th e reac h o f our p
Slide 15: 360 Marketing
4. 360 ƒ MARKETING • Xcel r e - imagines Shopping , Entert a inment , and Social a s one and market s our brand s in a strateg y t ha t s peak s wit h customers, n ot at them • Xcel’ s 360 ƒ marketin g strateg y is designe d to engag e our customer s in conversation • Xcel’s strategic partnershi p w
Slide 16: Growth Opportunities
C. GROWTH OPPORTUNITIES • GROW EXISTING BUSINESS – ORGANIC • INTERNATIONAL EXPANSION – SNAPSHOT • ACQUISITIONS 03.09.15 16
Slide 17: Grow Existing Business - Organic
GROW EXISTING BUSINESS - ORGANIC • I N T ER A CTIV E T E LEVISION » Add i t i on of new p r oduct cate g o ri es and collections » I ncrease on - air hours and e - commerce » Inte r nat i onal m a r kets • WHOLESALE » N ew li censes f or add i t i onal cate g o ri es » Inc r ease door penet r at i o
Slide 18: Grow Existing Business – Organic (cont'd)
GROW EXISTING BUSINESS – ORGANIC (cont’d) • D T R’ S / C OLLABOR A TIONS » Launched 3 D T R s i n 2014 (Mi chae l s, Best Bu y , 1 - 800 F l o w e r s) a n d e x pect new D T R s i n 2015 » C o ll abo r at i ons and co - b r anded p r o g r ams w i th l ead i ng consumer p r oducts compan i es ( i .
Slide 19: International Expansion – Snapshot
1 US A 2 Canada 3 U K 4 Ger man y 5 Italy 6 F r anc e 7 Japan 8 C hin a 1 2 3 4 5 6 8 7 • Ital y planned 2015 • Fr an c e , J apa n an d Chin a e s t . 2015/2016 • G e r m an y e s t . 2016 • Ital y planned 2015 • G e r m an y , Fr an c e , J apa n an d Chin a e s t . 2015/2016 • U S A e s t . 2015
Slide 20: Acquisitions – Timeline
Ap r 2014 20 1 1 De c 2014 ACQUISITIONS – TIMELINE 03.09.15 20
Slide 21: Acquisitions – Strategy
AC QUISITION S – S TR A T EGY • Cri t eri a f o r future po t en t ia l acquisi t ion s : • Xce l pursue s potentia l transaction s throug h our retai l partners and m arket relationships , a s wel l a s t hroug h our strategi c investor s includin g Hilco Global » Synergistic » Strategic » Accretiv
Slide 22: Strong Track Record of Growth
D. STRONG TRACK RECORD OF GROWTH 03.09.15 22
Slide 23: Strong Track Record of Growth
STRONG T RACK RECORD OF GROWTH ADJUSTED EBITDA (1) 2011 figures include results from the Predecessor through X c el ’ s acquisiti o n of the Isaac M i z rahi business on September 29, 2011, and the Successor from September 29, 2011 through D ecember 31, 2011 , as further explained in Xcel’s Form 10
Slide 24: Investment Highlights – Recap
E. INVESTMENT HIGHLIGHTS – RECAP 03.09.15 24
Slide 25: Investment Highlights – Recap
INVESTMENT HIGHLIGHTS – RECAP Owns and Licenses Dynamic Brands Strong Organic Growth Track Record Low O pe r a t ional Risk Working Capital Light Responsi v e D esign Capabil i t i es O m ni - chann e l Sales S tr a t egy High M a r gins and Financial R e t urns Strong Industry Relationships in Reta
Slide 26: Appendix A – Reconciliation of Non-GAAP Financials
APPENDIX A – RECONCILIATION OF NON - GAAP FINANCIALS 03.09.15 26
Slide 27: Reconciliation of Net Income to Adjusted EBITDA
APPENDIX A RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA 03.09.15 27 Adjusted EBITDA is a non - GAAP unaudited term, which we define as net income (loss) before interest expense and other financing costs (including gain (loss) on extinguishment of debt), income taxes, other state and local franchi
Slide 28: Xcel Brands – Differentiate By Design
XCEL BRANDS Differentiate By Design