Luvu Brands, Inc. · OTC:LUVU
Luvu Brands — Investor Presentation (December 2018)
31 slides from Luvu Brands's investor presentation, Dec 13, 2018
Slide 1: Investor Deck
Luvu Brands, Inc. Investor Deck December 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: $2.9M • Diverse consumer brands with international distribution Share Price (12/10/18): $.04 • Fiscal 2018 revenue of $16.4M 52-Week Range: $0.02 - $0.074 • Operating me
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 eco-friendly re-purposed polyurethane foam Avana®, inclined bed therapy products, assistive in relieving medical co
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: Liberator
Our Brand Portfolio Liberator Bedroom Adventure Gear® Five star Amazon reviews Buy it no matter what! The BEST thing EVER for the bedroom!! Worth every cent! Amazing Amazing and Amazing Luvu Brands, Inc. OTCQB Venture: LUVU 7
Slide 8: 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: Quarterly Sales History – Q1 '17 to Q1 '19
Our Brand Portfolio Quarterly Sales History – Q1 ‘17 to Q1 ‘19 $1.6 $1.7 Luvu Brands, Inc. OTCQB Venture: LUVU 9
Slide 10: Our Brand Portfolio: Amazon Reviews
Our Brand Portfolio Five star Amazon reviews Best bean bag chair ever! Absolutely in love with this bean bag It’s just amazing! My boys luv this Luvu Brands, Inc. OTCQB Venture: LUVU 10
Slide 11: Our Brand Portfolio: Amazon Reviews
Our Brand Portfolio Five star Amazon reviews: Loved them so much I bought 2 more We have these on her patio and love them! Repeat customer: I'm on my 4th one! Luvu Brands, Inc. OTCQB Venture: LUVU 11
Slide 12: Our Brand Portfolio: Amazon Reviews
Our Brand Portfolio Five star Amazon Reviews Wish I Had This Years Ago! Why did I wait so long? I am IN LOVE with this Perfect in every way - Luvu Brands, Inc. OTCQB Venture: LUVU 12
Slide 13: Annual Sales History
Annual Sales History $6.0 $4.5 $3.1 $2.3 $1.7 5 year CAGR = 36% Luvu Brands, Inc. OTCQB Venture: LUVU 13
Slide 14: Quarterly Sales History
Quarterly Sales History $1.7 $1.2 $.9 Luvu Brands, Inc. OTCQB Venture: LUVU 14
Slide 15: Luvu Brands Financials
Luvu Brands Financials Luvu Brands, Inc. OTCQB Venture: LUVU 15
Slide 16: Sales History – FY 2014 to FY 2018
Sales History – FY 2014 to FY 2018 Including discontinued imported products $2.0 $3.3 $3.2 $3.4 $16.4 $14.9 $13.5 $12.2 $11.5 4 year CAGR = 2% Luvu Brands, Inc. OTCQB Venture: LUVU 16
Slide 17: Sales History – FY 2014 to FY 2018 (Excluding Discontinued)
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 18
Slide 18: Quarterly Net Sales – FY 2015 to Q1 FY '19
Quarterly Net Sales – FY 2015 to Q1 FY ’19 (Includes discontinued imported products until Q2 FY ’17) Luvu Brands, Inc. OTCQB Venture: LUVU 17
Slide 19: 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 19
Slide 20: Gross Profit History – Quarterly from Q1 '15
Gross Profit History – Quarterly from Q1 ’15 Luvu Brands, Inc. OTCQB Venture: LUVU 20
Slide 21: 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 21
Slide 22: 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 22
Slide 23: 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 23
Slide 24: Q1 FY '19 Financial Review
Q1 FY ’19 Financial Review (in thousands) (in thousands) Direct $1,146 Liberator $1,705 Wholesale 2,698 Jaxx 981 Other 76 Avana 690 Total $3,920 Products purchased for resale 385 Other 159 Total $3,920 Luvu Brands, Inc. OTCQB Venture: LUVU 24
Slide 25: Financial Review: Gross Profit and SG&A Trends
Financial Review Gross Profit and SG&A Trends Quarterly Gross Profit Q1 FY '18 Q2 FY '18 Q3 FY '18 Q4 FY '18 Q1 FY '19 Gross profit $ 979 $ 1,358 $ 1,277 $ 1,181 $ 987 Gross Margin % 27.0% 29.3% 29.9% 30.3% 25.2% Quarterly SG&A Q1 FY '18 Q2 FY '18 Q3 FY '18 Q4 FY '18 Q1 FY '19 Advertising $ 93 $ 126
Slide 26: Luvu Brands Growth Strategy
Luvu Brands Growth Strategy Luvu Brands, Inc. OTCQB Venture: LUVU 26
Slide 27: Growth Strategy – Liberator
Growth Strategy - To continually grow as a brand category in Sexual Wellness and Erotic Luxury: Expanded retail distribution, taking full advantage of our novel vacuum compressed Point-of-Purchase packaging (with a discrete flip door) that allows Liberator shapes and sex furniture to fit onto any
Slide 28: Growth Strategy – Jaxx
Growth Strategy - Jaxx Nimbus – Continue to capitalize on the growing popularity of our spandex beanbags. Jaxx Beanbags – Promote the favorable “price to value” of our US made beanbag collection. Jaxx Kids – Continue to promote our beanbags, loveseats, sofas, and game chairs in the mass market
Slide 29: Growth Strategy – Avana
Growth Strategy - This collection of comfort and assistive products has been growing at an 88% CAGR for the last 3 years with trailing twelve month sales of $3.2 million. The Kind Bed collection exceeds $500,000 in annual revenue, soon to be launched in mass market. Our inclined-bed therapy matt
Slide 30: 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 31: 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 31