Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — Investor Presentation (March 2023)
22 slides from Lakeland Industries's investor presentation, March 2023
Slide 1: Lakeland Investor Presentation March 2023
¢ Lakeland Protect Your People® Investor Presentation March 2023 NASDAQ: LAKE | LAKELAND.COM
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: Lakeland Overview (Nasdaq: LAKE)
Lakeland Overview (Nasdaq: LAKE) What We Do FY2022 Revenue Global manufacturer of high-quality, cost-effective, and mission-critical personal protective clothing solutions that protect people at work and in their communities 6% 10% = USA = Asia 9% 40% nator Europe Latin America Other Foreign GEOGRAP
Slide 4: Investment Highlights
Investment Highlights Positioned for Sustainable Growth Driven by Strategic Operational & Sales Initiatives - Targeting high single digit revenue growth, driven by strong long term growth trends and product segment focus - Investments in manufacturing capabilities enables production flexibility to f
Slide 5: Sustainable Long-Term Growth Driven by Operational Enhancements
Sustainable Long-Term Growth Driven by Operational Enhancements Growth and Performance 2025-27 Targets Improvement Initiatives C1) Mid-to high single digit revenue growth in core markets C1) Completed investments in global manufacturing footprint + Growth above market by 200-300 bps/year * Vietnam (
Slide 6: Achieving Material Improvement in Profitability
Achieving Material Improvement in Profitability $200 $180 $160 $140 $120 $100 $8 8 $6 8 $4 $ $2 8 St s FY2 003 — FY2007 Lakeland shifts away from DuPont supply relationship, developing its own key competitive SKUs and product lines; broadens its global reach mmm Net Sales (in millions of dollars) EB
Slide 7: Setting New Post-COVID Margin Baseline
Setting New Post-COVID Margin Baseline $50 60% Pandemic Era $45 50% $40 40% $35 $30 30% $25 20% $20 10% $15 0% $10 $s -10% QI-FY2019 Q2-FY2019 Q3-FY2019 Q4-FY2019 Q1-FY2020 Q2-FY2020 Q3-FY2020 Q4-FY2020' Q1-FY2021 Q2-FY2021 Q3-FY2021 Q4-FY2021 QI-FY2022 Q2-FY2022 Q3-FY2022 Q4-FY2022 Q1-FY2023 Q2-FY2
Slide 8: Primary Product Lines and Applications
Primary Product Lines and Applications Product Lines | HIGH-VISIBILITY I b ited Gi y “1 A Applications * Municipal Fire + Industrial + Industrial + Industrial + Industrial * Volunteer Fire + Energy * Energy + Energy * Energy * Search & Rescue * Utilities * Healthcare * Utilities * Healthcare * Wild
Slide 9: Large Markets with Strong Tailwinds
Large Markets with Strong Tailwinds Key Market Dyna mics ~$6 Billion Total Addressable Market with a Mid-to-High-Single-Digit oy INCREASING RELEVANCE OF SAFETY AND PPE Growth Rate? 4 wo) + Increased development and enforcement of safety and environmental D—< standards globally (L\ (\) * Global accep
Slide 10: Lakeland's Competitive Advantages
Lakeland’s Competitive Advantages ] Owned, global manufacturing base ) 2 Well-Capitalized Focused, Yet and Healthy Diversified Balance Sheet Product Portfolio Technology- Scalable, asset- Focused and Data- light business Driven Culture _ model Provides us with the ability to rapidly scale-up product
Slide 11: Strategic Initiatives and Capital Priorities
Strategic Initiatives and Capital Priorities Strategic Initiatives Sustained Growth via Market Share Gains Enhanced Profitability Capital Prioritization Product line enhancements Expanded geographical reach Customer service New products Strategic pricing Optimized supply chain management Technology
Slide 12: Undervalued Growth
Undervalued Growth LAKE Shares Trades at a Meaningful Discount Despite Improving Financials * Ona forward EV/EBITDA basis, LAKE trades well below the peer average * Projected revenue growth well in excess of peers * Even allowing for size/market cap/liquidity and long-term track record discount rela
Slide 13: Eagle Technical Products Acquisition Enhances Lakeland's Product Portfolio
Eagle Technical Products Acquisition! Enhances Lakeland’s Product Portfolio and Expands Geographical Reach Company Background and Product Portfolio Headquarters + Stockport, UK Product Focus * Firefighter Suits & Apparel (65% of FY22 revenues) + Industrial FR Apparel (35% of FY22 revenues) Markets *
Slide 14: Appendix
Appendix ¢Lakeland
Slide 15: Operations Statement — Q3
Operations Statement — Q3 THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, 2022 2021 2022 2021 Net sales $28,387 $30,032 $83,849 $91,590 Cost of goods sold 16,083 17.262 48,862 51.184 Gross profit 12,304 12,770 34,987 40,406 Operating expenses 10,082 8,544 29,522 25,483 Operating profit
Slide 16: Non-GAAP Reconciliation — Q3
Non-GAAP Reconciliation — Q3 2022 2021 2022 2021 Net Income to EBITDA Net Income $1,431 $2,896 $1,690 $10,866 Interest 4 2 25 7 Taxes 715 1,327 3,610 4,036 Depreciation and amortization 391 430 1,370 1,470 Other income (expense) (72) ) (140) (14) EBITDA $2,613 $4,656 $6,835 16,393 EBITDA to Adjusted
Slide 17: Non-GAAP Net Income — Q3
Non-GAAP Net Income — Q3 2022 2021 2022 2021 GAAP Net income $1,431 $2,896 $1,690 $10,866 Adjustments: Adjustments for taxes (1) = = 1818 = Non-GAAP Net income $1,431 $2,896 $3,508 $10,866 GAAP Net income per share - basic: $0.19 $0.37 $0.22 $1.37 Adjustments for taxes (1) = = 0.24 = Non-GAAP Net in
Slide 18: Balance Sheet — October 31, 2022
OCTOBER JANUARY OCTOBER JANUARY ASSETS LIABILITIES AND STOCKHOLDERS’ EQUITY 31, 2022 31, 2022 Current assets Current liabilities Cash and cash equivalents $34,949 $52,719 Accounts payable $6,455 $5,855 Accounts receivable, net of allowance for Accrued compensation and benefits 2,960 3,225 doubtful a
Slide 19: Income Statement — FY2022
Income Statement — FY2022 12 MONTHS ENDED NUARY 31, 2022 2021 Net sales $118,386 $159,000 Cost of goods sold 62.473 T9717 Gross profit 50,913 79,283 Operating expenses 34,866 35397 Operating profit 16,047 43,886 Other income, net 121 50 Interest expense (15) (23) Income before taxes 16,153 43,913 In
Slide 20: Non-GAAP Reconciliation — FY2022
Non-GAAP Reconciliation — FY2022 2022 2021 Net Income to EBITDA Net Income $11,372 $35,330 Interest 15 23 Taxes 4,781 8,583 Depreciation and amortization 1,868 1,965 Other income (expense) 121 50 EBITDA $17,915 $45,851 EBITDA to Adjusted EBITDA (excluding non-cash expenses) EBITDA $17,915 $45,851 Eq
Slide 21: Balance Sheet — FY2022
Balance Sheet — FY2022 JANUARY Currentassets Cashand cash equivalents $52,719 Accounts receivable, net of allowance for doubtful accounts of $666 and $700 at January 31, 2022 and 2021, respectively 14,771 Inventories 477i PrepaidVATand other taxes 1675 Other currentassets 23.770 Totalcurrentassets 1
Slide 22: Lakeland Protect Your People
¥ Lakeland Protect Your People”
Lakeland Industries — Investor Presentation (March 2023) on 6ix