Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (September 2011)
24 slides from Smith & Wesson Brands's investor presentation, Sep 14, 2011
Slide 1: Jeffrey Buchanan EVP, CFO September 2011
Jeffrey Buchanan EVP, CFO September, 2011 1
Slide 2: Safe Harbor
Safe Harbor Certain statements contained in this presentation may be deemed to be forward-looking statements under federal securities laws, and the Company intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include but are not
Slide 3: Highlights
Highlights Handgun market leaderDiversified product portfolioQ1 FY2012:Firearms revenue growth: 18% Firearms unit growth 44% vs. market growth of 10.8% (Adjusted NICS)Diversifying revenue sources: Consumer, Professional, InternationalInnovative productsProviding entry to new marketsExpanding address
Slide 4: Experienced Management Team
Experienced Management Team Michael Golden, President & CEO 30+ years: senior/executive management, sales, marketing, general management, brand management: Kohler, Stanley Works, Black and Decker, Procter & GambleJeffrey Buchanan, EVP & CFO 30+ years: private and public company experience in financi
Slide 5: Our Vision
Our Vision 5 Smith & Wesson: Giving the world the power to be independent and confident. Safety Security Protection Sport Leveraging our brand heritage to provide innovative and reliable products in the markets of safety, security, protection, and sport.
Slide 6: A Transformation
A Transformation 6 2005 2011 An iconic, 159-year-old American brand An iconic, 159-year-old American brand FY2011 Revenues: $392M
Slide 7: Key Success Factor: Innovative New Products
Key Success Factor: Innovative New Products 7 Product Consumer Law Enforcement Government / Military International Market M&P Polymer Pistols M&P Tactical Rifles Hunting Rifles M&P4 - Tactical Rifles 2006 2006 2006 2006 2006 2006 2006 2006 2007 - - - - 2009 2009 2009 BODYGUARDS(r) Revolvers & Pistol
Slide 8: Firearms Growth Drivers
Firearms Growth Drivers Consumer Market: Q1 revenue growth 19%Concealed Carry, Personal ProtectionFurther Market Penetration: A Leader Gaining ShareRobust New Product Pipeline: Governor, BodyguardsHalo Effect from Law Enforcement, Military AdoptionProfessional Market: Q1 revenue growth 17%Law Enforc
Slide 9: Consumer Market
Consumer Market Q1 Revenue Growth 19%Q1 Unit Sales Growth 44%Q1 Pistol Unit Sales Growth 60% 9
Slide 10: Adjusted NICS Checks
National Shooting Sports Foundation (NSSF) adjusts FBI NICS data to eliminate background checks associated with permit applications and checks on active CCW permit databases, in order to provide a more accurate picture of market conditions. Adjusted NICS Checks Reflects strength in consumer market f
Slide 11: Personal Protection: BODYGUARD
Personal Protection: BODYGUARD(r) Designed for concealed carry, the Smith & Wesson BODYGUARD 38 and 380 are uniquely engineered as the most state-of-the-art, concealable, and accurate personal protection possible. Lightweight, simple to use and, featuring integrated laser sights - nothing protects l
Slide 12: Personal Protection: Governor
Personal Protection: Governor(r) New. Versatile. Lightweight. Designed for home protection, the Smith & Wesson Governor revolver puts six rounds of customizable response under your control. Load with .410 shotgun shells, .45 ACP, or .45 Long Colt - alone or in combination - and hit your target in ev
Slide 13: Rifles - Hunting & Modern Sporting
Rifles - Hunting & Modern Sporting M&P15 Sport(tm) - Versatile, modular, and an exceptional value, the M&P15 Sport is a perfect choice for the tactical rifle enthusiast.The Venture(tm) - A bolt action rifle that delivers renowned Thompson/Center accuracy and quality, multiple finishes, and 16 calibe
Slide 14: Professional Market
Professional Market Law Enforcement / Federal GovernmentInternationalMilitary 14
Slide 15: Professional Products: Law Enforcement
Professional Products: Law Enforcement The M&P Series now includes rifles, full-size pistols, compact pistols, and revolvers - designed with input from today's military and police that addresses their evolving needs. The M&P Series answers the need for reliable, durable, accurate, versatile, safe, a
Slide 16: International
International Internationally recognized brand nameFocus solely on large ordersCurrent examples: Australia, Taiwan, Belgium, UK 16
Slide 17: Military: Two Opportunities
Military: Two Opportunities RFP for bolt carrier assembly for M4 carbine:Lower cost approach for military to upgrade existing rifle in fieldS&W proposal submitted500,000 unitsM9 pistol replacement:Seeking higher caliber than Beretta currently in useProgram funded but not yet activeSolicitation proce
Slide 18: Smith & Wesson = Security & Protection
18 Smith & Wesson = Security & Protection Formerly:
Slide 19: Products & Markets
Products & Markets Federal Government and Corporate ClientsProprietary GRAB(r) barriersNew wedge barriersBroad product portfolioMilitary base security system upgradesCFAT's regulations in commercial market 19 Wedge Barriers GRAB(r) Barriers EMBTM Canopies and Prefab Buildings ODDS & Electronic Monit
Slide 20: SWSS: Proprietary GRAB System
SWSS: Proprietary GRAB(r) System Certified and field proven reduced risk vehicle barrier systemCan be activated in 1.5 secondsCost effective: Able to span multiple traffic lanesRe-useable after impactAll electric operationLow cost of ownershipPatent protected 20
Slide 21: SWSS: SW1900 Wedge Barrier
SWSS: SW1900 Wedge Barrier Successfully passed certification testing to ASTM M50 standards"Zero Penetration" - Vehicle does not pass vertical plane of barrierGround-up design - Enhancements over traditional wedge barriersAvailable in hydraulic and electro-mechanical versionsUtilizes noise-dampening
Slide 22: SWHC: Financial Highlights
SWHC: Financial Highlights 22 Fiscal Year April 30 Revenues Financial Highlights: Q1FY12: Total Revenue $99.2M (+4.5%) Firearm Revenue $91.7M (+18.0%) Firearm Backlog $148.8M (+99.0%) Gross Profit Margin 28.4% Working capital $82.2M Cash $37.7M *FY2012 Estimate $237 $296 $335 $406 $392 $410 - 425(E)
Slide 23: Future Focus
Future Focus 23 Protect and grow core firearm businessConsumer is at the coreResolve firearm capacity constraintsExpand manufacturing capacity - intelligentlyReduce expenses on a company-wide basisSecurity Solutions targeting breakeven by FY12 year endMaintain robust new product pipeline
Slide 24: NASDAQ Global Select: SWHC
24 NASDAQ Global Select: SWHC
Smith & Wesson Holding — Investor Presentation (September 2011) on 6ix