Veru Inc. · NASDAQ:VERU
Veru — The Female Health Company — Shareholder Meeting (June 2016)
13 slides from Veru's shareholder meeting presentation, June 2016
Slide 1: 2016 Annual Meeting
NASDAQ: FHCO 2016 Annual Meeting
Slide 2: Q1 2016 At a Glance
Q1 2016 At a Glance NASDAQ FHCO Core product FC2 Female Condom Gross margin ~66% Operating margin ~29% Total current assets $24 million no L/T debt Profitable Starting 2006 Debt Free $10M Unused Credit Facility 2
Slide 3: FY 2015 – 2014 Results
FY 2015 – 2014 Results FY 2015 FY 2014 (millions, except EPS) (millions, except EPS) • Revenue +33% Units 61.0 42.5 • Gross Margin +45% Revenue $32.6 $ 24.5 • Operating Income +69% Gross Margin $19.0 $ 13.1 • EPS – Diluted +88% Operating $6.6 $ 3.9 • Second highest unit sales Income • Won Brazil ten
Slide 4: Q1 2016 – 2015 Results
Q1 2016 – 2015 Results Q1 2016 Q1 2015 (millions, (millions, except EPS) except EPS) • Revenue +24% Units 15.4 12.2 • Gross Margin +41% Revenue $8.2 $6.7 • Operating Income +65% Gross Margin $5.4 $3.8 • EPS – Diluted +67% Operating Income $2.4 $1.5 • Profitable for 10 Tax Expense $0.8 $0.7 successiv
Slide 5: Tax Loss Carryforward
Tax Loss Carryforward FHC: • No longer records P&L NOL benefit • Records tax charge • Continues to benefit from NOL cash impact • Example: Q1 FY2016 Tax Charge - $ 829,453 Taxes Paid - $ 69,856 Cash Saved - $ 759,597 5
Slide 6: Unit Sales
Unit Sales 100% sales of lower price, higher margin, Millions next generation FC2 CAGR 70 16 % 61.6 61.0 60 54.8 50 40.2 38.9 42.5 40 34.7 32.9 30 25.9 20 19.6 15.4 10 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 FC1 FC1 & FC2 FC2 6
Slide 7: Net Revenues
Net Revenues 100% sales of lower price, higher margin, $ in millions next generation FC2 40 35 $35.0 $32.6 $31.5 30 $27.5 $25.6 $24.5 25 $22.2 20 $19.3 $18.6 $14.8 15 10 $8.2 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 FC1 FC1 & FC2 FC2 7
Slide 8: Gross Margin
Gross Margin 100% sales of lower price, higher margin, next generation FC2 % of net revenue 60 58.2 58.9 58.2 65.6 53.1 55.6 53.6 49.1 50 41.9 40 37.0 37.0 30 20 10 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 FC1 FC1 & FC2 FC2 8
Slide 9: FC2 Market: Women's Health Issues
FC2 Market Women’s Health Issues HIV/AIDS • Leading cause of death globally for women age 15-44 • 80% of female cases contracted via 42% heterosexual transmission Male 58% • Male and female condoms are the only prevention Female products available • No near-term more effective broad-use alternative
Slide 10: Zika Virus
Zika Virus (1) February 1, 2016 WHO Declares Global Emergency Babies Adults • Devastating birth defects • Possible link to Guillain-Barré Syndrome – Microcephaly – head and brain – Neurological disorder that can cause muscle abnormalities weakness, paralysis, and death Transmission Impact • Via mosq
Slide 11: UNAIDS Calls For 20 Billion Condoms A Year By 2020
On February 12, 2016 UNAIDS Calls For 20 Billion Condoms AYear By 2020 (1) • Every day more than 1 million people acquire a sexually transmitted infection. • 80 million unintended pregnancies occur every year. • “UNAIDS is calling for increased investments by donors and governments for promotion and
Slide 12: Long-Term FC2 Demand Will Continue To Grow
Long-Term FC2 Demand Will Continue To Grow • Zika virus outbreak – potential global epidemic • UNAIDS calls for 20 billion male and female condoms per year by 2020(1) • Continued Global Focus on HIV – Feminization of AIDS – #1 cause of death women age 15-44 – 35 million living with AIDS, 2.3 million
Slide 13: Key Project Status
Key Project Status • Direct to Consumer Promotion – 6 month study completed this quarter • Diversification of Product Line – Specific opportunities identified and under evaluation 13
The Female Health Company — Shareholder Meeting (June 2016) on 6ix