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Confidential Information Summer Infant -- Do Not Distribute
Summer Infant – Investor Presentation
December 2015
Certain statements in this presentation that are not historical fact may be deemed “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and Summer
intends that such forward-looking statements be subject to the safe harbor created thereby. Such
forward-looking statements include statements regarding the market position of Summer; the growth
prospects of Summer; anticipated sales and operating results; the development of new products;
demand for Summer’s products; and Summer’s business strategy. Summer cautions that these
statements are qualified by important factors that could cause actual results to differ materially from
those reflected by such forward-looking statements. Such factors include the concentration of
Summer’s business with retail customers; the ability of Summer to compete in its industry; Summer’s
dependence on key personnel; Summer’s reliance on foreign suppliers; the costs associated with
pursuing and integrating strategic acquisitions; the costs associated with protecting intellectual
property; and other risks as detailed in Summer’s Annual Report on Form 10-K for the fiscal year
ended January 3, 2015, and subsequent filings with the Securities and Exchange Commission. The
information contained in this presentation is accurate as of the date set forth on the cover page.
Summer assumes no obligation to update the information contained in this presentation.
Safe Harbor
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Investor Highlights
Leading provider of juvenile products with strong, well-known brands
• Summer - Monitors, Safety, Gear, & Bath
• SwaddleMe - Nursery
• Born Free - Feeding
Positive industry dynamics
• Stabilization of birth rates and 1st child spend are up
• More Millennial parents with higher disposable income
New management
• Enhanced experience across functional areas
• Focus on improving operating performance, and reducing debt
Expanding revenue potential
• Focus on consumer driven innovation in core categories
• Expanding e-commerce opportunities
• International markets and specialty retail
Earnings expansion underway
• Streamlined operations
• Exiting poorly performing products / licensing arrangements
• Focus on high-margin categories and effective pricing strategies
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Business Overview
Unique Positioning
to Meet Moms Needs
Brand
KeyCategories
Creating a safe, calm feeding
experience
Innovative Care & Safety
products that provide
peace of mind
The authority on safe sleep
A Portfolio of Strong Brands with Focus on Key Parenting NeedsServing Key Consumer Touch Points in Safety, Safe Sleep, and Feeding
Leveraging Brand Positioning, Breadth of Product Offering &
Innovation to Improve Consumer Relationship
Monitors
Gates
Bath & Potty
Strollers
Travel Accessories
Highchairs/Boosters
Swings/Bouncers
Bottles
Pacifiers
Teethers
Feeding
Electronics
Wearable Blankets
Infant Sleep Aids
Bedding
4
Product Priorities
Monitors Expansion
Social Engagement
Content
Apps & Software
Expansion
Monitor
Nursery
Feeding
Safety
On-the-Go
Demonstrated Strength in New Product Development
Monitors
WiFi Video
Monitor
SwaddleMeExpanded Shelf
Space
Refreshed branding
Safety
Pop ‘N Play
Gear 3D Lite Strollers
2015 Opportunity
New Feeding System
Expanded Stroller line
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Focused Brand StrategyInnovative New Products
Unique Positioning
to Meet Moms Needs
Brand
Continue to strengthen Continue to strengthen
Focused Growth Opportunity
Little Me / SwaddleMe Co-branded swaddle blankets
Available Mid-2015
*Dates for availability are subject to change
Focused Growth Opportunity
Glass Bottles
Currently Available
Bottle Genius
Currently Available
Ultimate Pop ‘N Play
Available Now
HD Video Monitors
Available Now
Keep Me Warm
Available Now
Focused Growth Opportunity
3Dzyre Stroller
Available Now
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Summer Smart Environment
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Smart Wifi Video Monitor
Summer Smart™ is a collection of products that will provide beneficial information and insights about baby’s development and well-being.
All Summer Smart™ products work independently or in concert through the Summer Smart™ APP. The more you add, the more you know.
Simple Sync ™technology allows for one simple touch on the Dedicated Device to “sync” any new Summer Smart ™ product to the Environment
Focus on Core Brands
• Reduction in lower profit licensed brands
• 2014 revenue from Summer owned brands increased 8.75%
• Product innovation focus on Summer, SwaddleMe and Born Free brands
• Goal of new product introductions each year representing at least 20% of annual revenue
Focus on Core Brands & Channel Diversification
Baby Specialty 28%
E-Commerce 20%
Specialty 3%Department Stores 3%
Discount/Outlet 3%
Mass 21%
International 16%
All Other 6%
2014 Sales by Channel
Babies R Us
BuyBuyBaby
(Excludes drop ship)
Canada, EMEA, APLA
Walmart (US)
Target (US)
(Excludes .COM)Amazon
Diapers.Com
Zulily
US & INT Retailers
(.COM/Drop Ship)
Customer & Channel Diversification
• Top 7 customer; 74% 2014 vs. 78% 2013
• Increased focus and growth from e-commerce; up 40% year-over-year
• Future revenue opportunities identified in International, Specialty & Department Stores
• Working with select large retailers to enhance our presence on their websites
• Working to improve mobile and e-commerce capabilities on summerinfant.com
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Understanding Millennial Moms
59% bought a
product
recommended by
another mom on a
parenting site 44% make
purchases online
via their
smartphone
85% of the time
they spend
online is using
APPS
9,000 Babies each day are
born to our
Millennial Mom
Millennials
represent $170 billion in annual
purchasing power
Connected:
Texting, pinning, tweeting,
status updating; she
spends on average 17.4
hours a week on Social
media.
Believe strongly that recommendations
by other parents (46%)
and experts (35%) is
important
Share Everything/Share Often:
Online and in-person, she
talks about her product
experiences and solicits
feedback from her peers
when planning a purchase.
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*various sources and Company data
Email Blast to our Summer
Circle Subscribers
Expanding Digital Strategy
Video content for use on social, owned website & retailer sites
Sweepstakes shared across social media and website
Seeding & support for
Online Reviews
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Turnaround in Progress
• Focus on Brands
• Streamlined product portfolio
• Exited non-core areas & licensing agreements
• Restructured credit facilities
• Gross margin improvement
• Target new markets
• Further expand margins
• Reduce inventory
• Drive cash flow
• Pay down debt
• Leverage G&A structure
Recent Successes
2015 Path to Success
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Recent Financials
Core Product Sales Growth Year/Year12
October 3, 2015 September 30, 2014 October 3, 2015 September 30, 2014
Net sales 50,205$ 51,020$ 155,025$ 154,390$
Cost of goods sold 34,600 34,420 108,674 103,897
Gross profit 15,605$ 16,600$ 46,351$ 50,493$
General and administrative expenses 12,953 10,107 35,235 29,503
Selling expense 4,119 4,456 13,295 13,742
Depreciation and amortization 1,275 1,369 3,927 4,132
Operating (loss) income (2,742)$ 668$ (6,106)$ 3,116$
Interest expense 589 870 2,753 2,571
(Loss)/income before taxes (3,331)$ (202)$ (8,859)$ 545$
Income tax (benefit)/expense (1,500) (64) (3,313) 179
Net (loss)/income (1,831)$ (138)$ (5,546)$ 366$
(Loss)/income per diluted share (0.10)$ (0.01)$ (0.30)$ 0.02$
Shares used in fully diluted EPS 18,309,381 18,086,441 18,239,490 18,196,470
Nine Months EndedThree Months Ended
Balance Sheet
Recently Restructured Debt,
Inventory Reduction Efforts Underway 13
October 3, 2015 January 3, 2015
(unaudited)
Cash and cash equivalents 1,104$ 1,272$
Trade receivables, net 36,057 38,794
Inventory, net 43,622 44,010
Property and equipment, net 11,890 13,080
Other intangible assets, net 20,326 20,679
Other assets 4,533 4,632
Total assets 117,532$ 122,467$
Accounts payable 31,818$ 21,878$
Accrued expenses 4,756 8,628
Current portion of long-term debt 2,089 1,641
Long term debt, less current portion 51,436 57,097
Other long term liabilities 2,726 2,994
Deferred tax l iabilities 2,418 2,378
Total liabil ities 95,243$ 94,616$
Total stockholders’ equity 22,289 27,851
Total l iabil ities and stockholders’ equity 117,532$ 122,467$
Adjusted EBITDA & EPS Reconciliation
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October 3, 2015 September 30, 2014 October 3, 2015 September 30, 2014
Reconciliation of Non-GAAP EBITDA
Net (loss)/income (1,831)$ (138)$ (5,546)$ 366$
Plus: interest expense 589 870 2,753 2,571
Plus: (benefit)/expense for income taxes (1,500) (64) (3,313) 179
Plus: depreciation and amortization 1,275 1,369 3,927 4,132
Plus: non-cash stock based compensation expense 280 468 700 1,011
Plus: permitted add-backs 4,324 1,097 9,339 2,455
Adjusted EBITDA 3,137$ 3,602$ 7,860$ 10,714$
Reconciliation of Adjusted EPS
Net (loss) Income (1,831)$ (138)$ (5,546) 366
Plus: permitted add-backs 2,378 749 5,846 1,648
Plus: unamortized financing costs - -$ 428 -
Adjusted net income 547$ 611$ 728$ 2,014$
Adjusted earnings per diluted share 0.03$ 0.03$ 0.04$ 0.11$
Nine Months EndedThree Months Ended
Senior Leadership Team
Bob Stebenne 30+ Years ExperienceCEO, President and Chief Operating Officer Adept at increasing business profitability
Bill Mote 20+ Years ExperienceChief Financial Officer Deep global financial acumen
Ted Kelley 25+ Years Experience Senior Vice President of Sales Extensive Juvenile Industry experience
Tony Paolo 30 Years Experience SVP, Quality Assurance Commitment to exceptional quality
Ron Cardone 30 Years Experience SVP, Information Technology Pragmatic approach to IT information resources
Mark Strozik 20+ Years Experience SVP, Human Resources Strong talent management background
Dan Almagor 30+ Years ExperienceExecutive Chairman Established turnaround - global leadership
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• Experienced & Focused
Management Team
• Leading Designer & Supplier
of Juvenile Products
• Strong Well-Known Brands
• Positive Industry Dynamics
• Focus on Core Strengths: NPD,
Monitors, Safety, Nursery
• Targeted Growth Categories:
Gear, Feeding
• 2015 Focused on Earnings &
Balance Sheet Improvement
Investor Highlights
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This presentation includes certain financial information not derived in accordance with generally
accepted accounting principles (“GAAP”). This presentation includes references to EBITDA, which is
defined as income before interest and taxes plus depreciation, amortization, deal-related fees and
non-cash stock option expense. Summer believes that the presentation of this non-GAAP measure
provides information that is useful to investors as it indicates more clearly the ability of Summer’s
assets to generate cash sufficient to pay interest on its indebtedness, meet capital expenditure and
working capital requirements and otherwise meet its obligations as they become due. This
presentation includes references to adjusted EBITDA and adjusted earnings per diluted share.
Adjusted EBITDA is defined as income before interest and taxes plus depreciation, amortization, non-
cash stock option expense and bank permitted add-backs.” In other words, the definition should
match what you presented on slide 13.
Recipients of the presentation and other interested persons are advised to read all reports and other
filings made by Summer with the Securities and Exchange Commission under the Securities Act of
1933, as amended, and Securities Exchange Act of 1934, as amended, including, but not limited to,
Summer’s Annual Report on Form 10-K for the year ended January 3, 2015. You can obtain a copy of
any of these filings, without charge, by directing a request to Summer Infant, Inc., 1275 Park East
Drive, Woonsocket, RI 02895, or on the Internet at the SEC’s website, www.sec.gov.
Use of Non-GAAP Financial Metrics
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