Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (March 2013)
25 slides from Smith & Wesson Brands's investor presentation, Mar 5, 2013
Slide 1: Smith & Wesson Investor Presentation
March, 2013 Smith & Wesson Investor Presentation
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: Business Highlights
Business Highlights U.S. market leader in firearms 160 years of rich history 1,600 jobs in America - products made in America Iconic brand with 92% aided awareness*Smith & Wesson(r) Brand = revolver Innovative product portfolio serving broad user groupsRevolvers, polymer pistols, metal pistols, conc
Slide 4: Vision / Mission
Vision / Mission Our Vision: The leading firearms manufacturer Our Mission: To allow our employees to design, produce, and market high-quality, innovative firearms that meet the needs and desires of our consumer and professional customers 4
Slide 5: Focus, Simplify, Execute
Focus, Simplify, Execute Strategy for growth - underpinned by a focus on firearmsConsumer and professional marketsFamily of brands:Smith & Wesson(r)M&P(r)Thompson/Center Arms(tm)Performance Center(tm)M&P(r) as a brand and product platform: Pistols and modern sporting riflesOperations: Ready to adapt
Slide 6: Experienced Leadership Team
Experienced Leadership Team James Debney, President & CEO 20+ years: multinational consumer and business-to- business environments including President of Presto Products Co., a $500 million business unit of Alcoa Consumer ProductsJeffrey Buchanan, EVP & CFO 25+ years: private and public company expe
Slide 7: Experienced Management Team
Experienced Management Team MarioPasantes_______________Sr. VP, Marketing and International SalesAlcoa, Inc.Coca-ColaPillsbury Mark Smith_______________VP, Manufacturing and Supply Chain ManagementAlvarez & MarsalEcolab Robert Cicero________________VP, General Counsel, Chief Compliance Officer,and S
Slide 8: Q3 Fiscal 2013 Highlights
Q3 Fiscal 2013 Highlights (Jan. 31, 2013 - From Continuing Operations) Q3 Financial Results:Quarterly sales of $136.2M, +38.8% Y/YOperated at essentially full capacity for the entire quarterResults include holiday closures (9 days) and impact of Superstorm Sandy (2 days)Raised full year fiscal 2013
Slide 9: First Nine Months Highlights and Guidance
First Nine Months Highlights and Guidance (Fiscal Year 2013 - From Continuing Operations) Actual and Estimated Fiscal Year April 30 Sales (in Millions) First Nine Months Fiscal 2013 Actual:Sales $408.8M (Up 44.9% YOY)Gross Profit Margin 36.7%Operating Income 21.0%GAAP Diluted EPS $0.79Cash at Jan. 3
Slide 10: Current Environment
Current Environment The tragedy in Newtown has understandably inspired an important national discussion about how to cope with violence in our communitiesThe outcome of this discussion has yet to be determined - we will not speculate at this timeWe are participating in the discussion, along with the
Slide 11: NSSF Adjusted NICS Background Checks
National Shooting Sports Foundation (NSSF) adjusts FBI NICS data to eliminate background checksassociated with permit applications and checks on active CCW permit databases. NSSF adjusted NICS data provides a more accurate picture of market conditions. Source: NSSF -National Shooting Sports Foundati
Slide 12: Industry: Growth in Handguns, Long Guns, Permit Checks
Industry: Growth in Handguns, Long Guns, Permit Checks (CHART) 12
Slide 13: Industry: Strong Sales Indications
(CHART) (CHART) (CHART) Industry: Strong Sales Indications Manufacturer projected sales based on excise tax collections Q1-Q3 2012: shipment value of handguns and long guns up 48% over prior year Q3 2012 (most recent available): handgun tax obligations up 45% over Q3 2011 Source: Federal Excise Tax
Slide 14: Pistols Driving Growth in Handguns
Pistols Driving Growth in Handguns Pistols now represent over 80% of units sold Pistols now represent over 80% of units sold Pistols now represent over 80% of units sold Source: BATF, Includes U.S. manufacturer and imports, excludes exports 14
Slide 15: Industry: Pistols vs. Revolvers
Industry: Pistols vs. Revolvers Pistols and revolvers have different attributes, but pistols are preferred by both professionals and consumers Pistol advantages versus revolvers:Ergonomics/comfortHigh tech/cutting edgeModern shapeTrigger pullCapacitySafety featuresRevolver advantages versus pistols:
Slide 16: SWHC: Firearms Growth Drivers
Consumer Market - U.S.Focus on consumer trends: Concealed Carry, Personal Protection, RecreationTake Market Share: Polymer Pistol Unit Growth, Modern Sporting Rifles Maintain Robust New Product Pipeline Leverage Higher Performance Standards from Professional MarketsProfessional MarketLaw Enforcement
Slide 17: Major Focus: M&P Pistol Growth
Major Focus: M&P(r) Pistol Growth Current Situation:Pistols are more than 80% of handguns soldCompact/slim and full-size polymer pistols are increasing in popularityM&P(r) polymer pistols are highly sought after by professionals and consumers - especially M&P(r) Shield(tm)Our Focus:Grow M&P(r) pisto
Slide 18: M&P - Proven Performance
M&P(r) - Proven Performance M&P(r) - Proven Performance Strong & Marketable Differences 18
Slide 19: New Models for the M&P Platform
New products:M&P(r) Shield(tm)M&P(r) Pro Series C.O.R.E.(tm) M&P(r)10Polymer pistol categoryProtection and RecreationConsumer and ProfessionalAdditional calibers and models for the M&P(r) modern sporting rifle platform:300 Whisper and .308 for HuntingWe will only announce major new product introduct
Slide 20: The M&P Shield
The M&P(r) Shield(tm) Designed to meet the demand for personal protection and concealed carry, the M&P(r) Shield features:Powerful 9mm or .40 S&W calibersLightweight, slim one-inch profile for comfortable carryCompact overall length of 6.1"M&P(r) proven ergonomic designThumb safetyIncludes two magaz
Slide 21: The NEW M&P Pro-Series C.O.R.E.
The NEW M&P(r) Pro-Series C.O.R.E.(tm) M&P(r) Pro Series C.O.R.E.(tm) Pistols (Competition Optics Ready Equipment):Quick, custom, competition-based opticsCrisp 4.5-pound trigger pullTextured interchangeable back straps to enhance and customize gripAccepts sights from six of the industry's top red-do
Slide 22: The New M&P10 - For Law Enforcement
The New M&P(r)10 - For Law Enforcement New M&P(r)10 expands our popular line of semi-automatic modern sporting rifles for law enforcement:.308 WIN - also safely fires 7.62 x 51 mmAccurate 18-inch barrel with 1-in-10" 5R riflingAmbidextrous controls:Safety selector lever, magazine release, and bolt r
Slide 23: The New M&P10 - For Hunters
The New M&P(r)10 - For Hunters New M&P(r)10 expands our popular line of semi-automatic modern sporting rifles for hunters:.308 WIN - also safely fires 7.62 x 51 mmAccurate 18-inch barrel with 1-in-10" 5R riflingAmbidextrous controls:Safety selector lever, magazine release, and bolt releaseOptics Rea
Slide 24: Our Strategic Direction
Our Strategic Direction Grow sales and increase profitabilityExpand manufacturing capacityAdd flexible capacity, internally and externallyFocus on M&P(r) pistols Optimize expenses on a company-wide basisFocus on improving gross marginsInvest in sales and marketingMaintain robust new product pipeline
Slide 25: Smith & Wesson
March, 2013 Smith & Wesson Investor Presentation
Smith & Wesson Holding — Investor Presentation (March 2013) on 6ix