Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — Investor Presentation (June 2016)
29 slides from Lakeland Industries's investor presentation, June 2016
Slide 1: Emerging Markets Exposure… Western Markets Expertise
NASDAQ: LAKE Christopher J. Ryan President and Chief Executive Officer June 2016 Emerging Markets Exposure… …Western Markets Expertise
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 that involve risk and uncertainties. The company wishes to caution that a number of important factors could cause actual results to differ materially f
Slide 3: Lakeland At A Glance
Lakeland At A Glance • Leading Manufacturer of Industrial Protective Clothing • Serving All Major Markets – Chemical/Petrochemical – Basic Industry: Auto, Steel, Construction, Electric & Gas Utilities – Health Care & Food Chain; High Tech – Government, Fire Department, Public Safety, DoD, CDC, etc.
Slide 4: Hobbled by Prior Dependence on DuPont Fabrics & Exit from Brazil
HOBBLED BY PRIOR DEPENDENCE ON DUPONT FABRICS & EXIT FROM BRAZIL Fiscal Year Sales History: Tyvek/Tychem and Brazil Declines Mask Organic Domestic and International Growth* ($ Millions) $120 $100 $80 $60 $40 $20 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Non-DuPont Items Total Ex-Braz
Slide 5: Strong Organic Growth Amid Losses of Tyvek/Tychem and Brazil Sales
Strong Organic Growth Amid Losses of Tyvek/Tychem and Brazil Sales FISCAL YEAR 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 ($ 000) Total North American Sales of DuPont Items $ 0 $ 1 ,000 $ 3,000 $ 20,000 $ 31,000 $ 38,000 $ 49,000 $ 60,000 $ 72,000 $ 77,000 Brazil Sales $ 6,000 $ 7,000 $ 17,00
Slide 6: Financial Issues Through 2014
Financial Issues Through 2014 Company In A Sharp Turn Around Mode • Brazil pulled the Company down so completely with $34 million of losses over a 3 year period to the point where a “Going Concern Opinion” was a very short term reality in May 2013. • As a result, stock hit all time low below $4.00 i
Slide 7: Long Term Improvements in Continuing Operations
Long Term Improvements in Continuing Operations Summary of Operations Year Ended January 31, (in thousands, except share and per share data) 2016 2015* 2014* 2013* Income Statement Data: Net sales from continuing operations 99,646 $ 93,419 $ 84,173 $ 78,260 Operating profit (loss) from continuing op
Slide 8: Growth in Operating Profit From Continuing Operations
Growth in Operating Profit From Continuing Operations ($ Millions) $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 2013 2014 2015 2016 Operating Profit From Continuing Operations 8
Slide 9: Proof Of Turn Around from FY2014-FY2016
Proof Of Turn Around from FY2014-FY2016 New Financings and Return to Growth • Financing of $15.0 million Senior debt and $3.5 million Junior debt during 2QFY14 • PIPE common stock issuance for $11.1 million completed in 3QFY15 • April 2015: Announced determination to exit Brazil through transfer of
Slide 10: Lakeland Product Overview
Lakeland Product Overview Limited Use/Disposable Chemical Suits High Visibility Clothing Protective Clothing Fire Fighting & Heat Protective Gloves & Arm Guards Apparel/Reusable Woven Garments 10
Slide 11: End-user Segments for Personal Protective Equipment
End-user Segments for Personal Protective Equipment Gas Detection Other 6% 21% Utilities 9% Petrochemical 10% Auto 11% Construction Metals 10% 8% Transport Healthcare Pulp & Paper 7% 9% 7% Lakeland End-user Segments Address Over 55% of Total Market but the Company Possesses Less Than 1% Source: Fros
Slide 12: Personal Protective Equipment Market
Personal Protective Equipment Market Footwear Gas Detection Head Fall 13% 6% 2% 4% Eye Hand 6% 29% Respiratory 15% Hearing Protective Clothing 3% 22% Lakeland Product Segments Address Over 50% of $23 Billion Market but the Company Presently Represents Less Than 1% of the Total Addressable Market (TA
Slide 13: Product Mix
Product Mix Revenue by Product – Historical Approximation Homeland Security Chemical Suits 7% High Visibility 7% Glov es & A rm Protection 4% Fire and Heat Protectiv e Clothing and other Wov ens 18% Disposable Clothing 64% Homeland Security Chemical Suits Gloves & Arm Protection Fire and Heat Protec
Slide 14: CAGR for Market Segments
Growth Opportunities Lakeland Target Markets Among Largest and Fastest Growing High CAGR for Market Segments (>6%) 3 2 1 Head/Eye/Face 7 6 5 4 1 2 Respiratory Medium (2%-6%) 3 Hand 4 Hearing 5 Prot. Apparel Low 6 Foot (0%-2%) 7 Fall Prot. Small Medium Large (<$1.0 billion) ($1.0-$2.5 billion) (>$2.5
Slide 15: Global Presence
Global Presence Sales Operations (16) Manufacturing Location (6) Headquarters: Ronkonkoma, New York 15
Slide 16: International Traction
International Traction • International Growth – Foreign Revenues Comprised 43% of Total in FY16 International Revenues ($ Millions) • Manufacturing Locations 60 – Facilities in US consolidated – New, more efficient plant in Mexico 50 – Expansion in China – India sewing operations, 2014 40 – Argentin
Slide 17: Industrias Lakeland S.A. de C.V.
Lakeland‘: INDUSTRIAS LAKELAND S.A. DE C.V. Ses - ee A a 17
Slide 18: Lakeland Industries Asia Pacific
Lakeland‘: LAKELAND INDUSTRIES ASIA. PACIFIC 18
Slide 19: Lakeland Industries Asia Pacific
‘| Lakeland (2 LAKELAND INOUSTRIES ASIA PACIFIC 19
Slide 20: Diversification Strategy & Transition
Diversification Strategy & Transition (Continuing Operations for FY2016 Ended 1/31/16) Area FY2005 FY2016 Multi-sourced, lower priced COGS/Raw Materials Tied to DuPont fabrics than DuPont 29.2% in F14, 32.5% in F15 and Pricing Power: Gross Margin Approx. 22% 36.5% in F16 (excluding Brazil) Sales Cha
Slide 21: Growth Catalysts
Growth Catalysts • Concentration on High Growth: CHINA, RUSSIA, PACIFIC ALLIANCE & MERCOSUR TRADE PACTS • Focus on Countries or Industries Benefiting from Industrial and GDP Growth, Global Adoption of OSHA-like Regulations • Expand/Introduce New Products Reflective line and other higher margin pro
Slide 22: Unique Operating Platform
Unique Operating Platform • Our Unique Operating Platform Highlighted by Ebola and Avian Flu as Latest of Crises that Positively Impact Business • Ebola Crisis Case Study – Significant Global Demand for ChemMAX® and MicroMAX® Protective Suits – ISO 9001 Standards; Certified to Pass Specific Tests Ba
Slide 23: Attractive Investment Merits
Attractive Investment Merits NASDAQ: LAKE • Turn Around Strategy Yielding Results LAKE Stock Information • Potential for Long Term Domestic and International Share Price $8.20 (excluding Brazil) Sales Growth Driven by Increasing Demand for Lakeland Brands Shares (FD Issued & O/S) 7.3 million • Incre
Slide 24: Appendix
Appendix 24
Slide 25: Balance Sheet
Balance Sheet LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except share data) ASSETS January 31, January 31, 2016 2015* Current assets ($000’s) ($000’s) Cash and cash equivalents $7,022 $6,709 Accounts receivable, net of allowance for doubtful accoun
Slide 26: Annual Income Statement
Annual Income Statement LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except share data) (Unaudited) Years Ended January 31, 2016 2015* Net sales from continuing operations $99,646 $93,419 Cost of goods sold from continuing operations 63,313
Slide 27: Quarterly Operating Earnings and Adjusted EBITDA Reconciliation
Quarterly Operating Earnings and Adjusted EBITDA Reconciliation Operating Results as Restated for Discontinued Operations ($000) Reconciliation to GAAP Results Quarter Ended Quarter Ended January 31, 2016 January 31, 2015 Net sales from continuing operations $20,473 $25,306 Year over year growth (19
Slide 28: Full Year Operating Earnings and Adjusted EBITDA Reconciliation
Full Year Operating Earnings and Adjusted EBITDA Reconciliation Operating Results as Restated for Discontinued Operations ($ 000) Reconciliation to GAAP Results Twelve Months Twelve Months Ended January 31, Ended January 31, 2016 2015 Net sales from continuing operations $99,646 $93,419 Year over ye
Slide 29: Strategic Initiatives
Strategic Initiatives • Analytics and Market Information Development • Capitalize and Expand International Markets • Build the Brand to Increase Profitability • Cost reduction/Control • Easy to do Business With 29
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