Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — Investor Presentation (May 2021)
28 slides from Lakeland Industries's investor presentation, May 2021
Slide 1: Investor Presentation | May 2021
Investor Presentation | May 2021 Protect Your People ® NASDAQ: LAKE Charles D. Roberson, President and Chief Executive Officer Allen E. Dillard, Chief Financial Officer Protect Your People™
Slide 2: Safe Harbor Statement
Safe Harbor Statement With the exception of historical information, the statements set forth in this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainties. The company wishes to caution that a nu
Slide 3: Key Statistics
Key Statistics Q4FY21 Results Financials & Valuation • Net sales of $36.9M, up 31% from $28.2M in 4Q20 LTM Revenue3 $159.0 million • Gross profit of $18.1M, compared with 4Q20 of $10.6M LTM EBITDA3 $45.8 million • Gross margin of 48.9%, compared to 37.7% in 4Q20 LTM Net Income3 $35.1 million • Opex
Slide 4: LAKE Product Examples
LAKE Product Examples LAKE Critical Environment Suit LAKE Homeland Security Suit LAKE Disposable Suit LAKE Chemical Protection Suit 4
Slide 5: Leading Protective Clothing Manufacturer
Leading Protective Clothing Manufacturer Product Offering: Disposables Chemical Suits Wovens Fire/Reflectives Gloves HPW % of Sales1 68% 18% 4% 6% 2% 1% Sales by Geography: • Domestic: 44% of FY21 net sales • International: 56% of FY21 net sales Industries Served: • Chemical/petrochemical • Basic in
Slide 6: Innovative Proprietary Products
Innovative Proprietary Products LAKE utilizes its unique manufacturing platform and proprietary textiles and designs targeted to market needs and demands New Product Focus: • Proprietary high margin products for stable and recurring end markets (e.g. utilities, pharmaceuticals) Patents: • 20 patents
Slide 7: Optimized Global Presence
Optimized Global Presence Manufacturing Sites Decatur, AL (HQ) Jerez, Mexico Anqui (Weifang), China Buenos Aires, Argentina New Delhi, India Nahm Dinh, Vietnam Sales Presence Beijing, China Chongqing, China Decatur, AL (HQ) Europe (France, Germany, Netherlands, Poland, Spain, U.K.) Manufacturing Sit
Slide 8: Increasing Manufacturing Capacity
Increasing Manufacturing Capacity Deploying capital investment in new manufacturing facilities to build growth Key Differentiator Anqui (Weifang), China Facility capacity; near-shoring options may deliver further benefits LAKE is unique in owning its manufacturing facilities India and Vietnam lo
Slide 9: Blue Chip Customers
Blue Chip Customers Distributors End Users 9
Slide 10: Favorable Long Term Industry Dynamics
Favorable Long Term Industry Dynamics Lakeland operates in a large and growing industry… Industry Tailwinds Protective Clothing Market1 ($ in billions) Global Economic Growth Global Oil Prices in Check Increase in Manufacturing to Multiple Nations Robust Demand from Developing Industries I
Slide 11: Strong Presence in Large & Fragmented U.S. Market
Strong Presence in Large & Fragmented U.S. Market Lakeland’s US Sales are 44% of Total Sales in FY2021 Source of Graphic: Houlihan Lokey 11
Slide 12: Positioned for Further International Growth
Positioned for Further International Growth Leveraging its worldwide operating capabilities, LAKE plans deeper penetration into existing markets and selective expansion into new geographies… • Led by multinational corporations, developing countries are increasingly adopting OSHA-like standards • LAK
Slide 13: Growth and Performance Improvement Initiatives
Growth and Performance Improvement Initiatives • Investments in centralized data driven planning systems – ERP implementation – CRM installation globally – Launch of new websites for nine global locations • Investments in manufacturing – Vietnam (now largest facility for the Company) – India (expans
Slide 14: Strengthening Business Model – Pre/Post-COVID-19
Strengthening Business Model – Pre/Post-COVID-19 Key Characteristic: Key Characteristic: Business Area At End of Fiscal 2020 Current Proprietary / value-added / higher Proprietary / value-added / higher Products margin margin / specialized vertical market Multi-sourced, lower priced fabrics Multi-so
Slide 15: KPIs Improving Over Long Term: Income Statement Performance
KPIs Improving Over Long Term Income Statement Performance Gross Profit as a Percentage of Sales Operating Profit as a Percentage of Sales 50.0% 30.0% 25.0% 45.0% 20.0% 40.0% 15.0% 10.0% 35.0% 5.0% 30.0% 0.0% -5.0% 25.0% -10.0% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 4Q19 1Q20 2Q20 3Q20 4Q20 1Q
Slide 16: KPIs Improving Over Long Term: Balance Sheet Performance
KPIs Improving Over Long Term Sustainable Balance Sheet Performance Lower Inventories and Higher Revenues $50.0 $40.0 $30.0 $20.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Sales Inventory Increased Cash and Elimination of Debt $60.0 $40.0 $20.0 $0.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q
Slide 17: Sustainable Improvements – Operational Impact
Sustainable Improvements – Operational Impact Key Area Favorable Impact • Added over 500 new industrial customers in F2021 totaling $12 million in Customer sales, with approximately 80% having the potential to result in ongoing Conversion business New Products • 2 new higher margin niche products ad
Slide 18: Sustainable Improvements – Financial Impact
Sustainable Improvements – Financial Impact Key Area Favorable Impact • Rising – 4 consecutive years of revenue growth Revenue • Well positioned for emergence of institutional cleaning as new market segment, government and industry PPE stockpiling • 49.8% gross margin as a percentage of sales in FY2
Slide 19: LAKE Shares Trade at Discount on Improving Financials
LAKE Shares Trade at Discount on Improving Financials Attractive Valuation* LAKE Improving Performance LAKE Trades at 4.0x EV/EBITDA Revenue Growth Gross Margin Based on TTM Results 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% FY19 FY20 FY21 FY19 FY20 FY21 EBITDA* Margin 35% 30% FY21 Set for Revenu
Slide 20: Seasoned Management Team
Seasoned Management Team Management Bios Years at LAKE Christopher J. Ryan – Executive Chairman Upon his appointment as Executive Chairman in February 2020, Christopher J. Ryan served as our Chief Executive Officer and President since November 2003, Secretary since April 1991, and a director since M
Slide 21: Investment Highlights
Investment Highlights Sustainable Improvements Drive Performance 1 Strong Long Term Growth Trends Strategic Competitive Advantage in Owning Our Manufacturing 2 Highly Leveragable Cost Structure including Global Manufacturing Sites Leader in Product Quality and Garment Innovation 3 Certifications and
Slide 22: Financial Review
Protect Your People™ Financial Review 22
Slide 23: Income Statement – Fiscal Year
Income Statement – Fiscal Year (UNAUDITED) ($000’s Except Share Information) ) 2021 2020 Net sales $159,000 $107,809 Cost of goods sold 79,750 69,912 Gross profit 79,250 37,897 Operating expenses 35,397 32,021 Operating profit 43,853 5,876 Other income (expense), net 50 (7) Interest expense (23) (11
Slide 24: EBITDA Reconciliation – Fiscal Year
EBITDA Reconciliation – Fiscal Year (UNAUDITED) ($000’s Except Share Information) ) Year Ended January 31, 2021 2020 Net Income to EBITDA Net Income $35,106 $3,281 Interest 23 116 Taxes 8,774 2,472 Depreciation and amortization 1,965 1,645 Other income (expense) 50 (7) EBITDA $45,818 $7,521 EBITDA t
Slide 25: Balance Sheet – Fiscal Year
Balance Sheet – Fiscal Year (UNAUDITED) ($000’s Except Share Information) ) ASSETS Current assets 2021 2020 Cash and cash equivalents $52,596 $14,606 Accounts receivable, net of allowance for doubtful accounts of $700 and $497 at January 31, 2021 and 2020, respectively 21,702 17,702 Inventories 43,8
Slide 26: Appendix
Protect Your People™ Appendix 26
Slide 27: Strong Growth Masked By Wind-Down of DuPont & Brazil
Strong Growth Masked By Wind-Down of DuPont & Brazil Sales by Segment ($ in millions) $159.0 $8.7 $107.8 $99.6 $99.0 $93.5 $96.0 $84.0 $86.2 $77.0 $76.1 $72.0 $60.0 $61.3 $57.4 $54.7 $51.2 $44.3 $41.7 $44.5 $35.6 $35.7 $28.1 $21.3 $19.9 $8.0 $6.2 $0.0 $0.0 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 F
Slide 28: Real Estate
Real Estate Location Sq. Ft. Leased / Owned Primary Function Canada (Brantford) 22,092 Owned Sales / Warehouse 122,665 Owned Administration / Manufacturing / Warehouse / Sales China (Weifang) 16,145 Leased Warehouse 147,228 Owned Administration / Manufacturing / Sales Decatur, AL 21,000 Leased Wareh
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