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Sumr investor presentation march 2016 final

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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 2, 2016, 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 and emerging sub-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

• Exited poorly performing products / licensing arrangements

• Focus on high-margin categories and effective pricing strategies3

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 A Portfolio of A Portfolio of A Portfolio of SSSStrong trong trong trong BBBBrands with Focus on Key Parenting Needsrands with Focus on Key Parenting Needsrands with Focus on Key Parenting Needsrands 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

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Business Overview

Monitors Expansion

Social Engagement

Content

Apps & Software

Expansion

Monitor

Nursery

Feeding

Safety

On-the-Go

Demonstrated Strength in New Product Development

Monitors

Summer Smart

Product Refresh

SwaddleMeLine Expansion

Refreshed branding

Safety

Pop sub brand

Gear Expanded Stroller line

2016 Opportunities

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Product Priorities

Nursery Baby my Baby

sub brand

Feeding New Bottles

Kiddo The fun sub

brand

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.

6*various sources and Company data

Understanding Millennial Moms

Retail Partners

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Focus on Core Brands & Channel Diversification

Focus on Core Brands

• 2015 sales from core brands increased 6.1% on

a constant currency basis

• Reduction in lower profit licensed brands

• Product innovation focus on Summer,

SwaddleMe and Born Free brands and sub

brands

• Goal of new product introductions each year

representing at least 20% of annual revenue

Customer & Channel Diversification

• Top 7 customer; 73% 2015 vs. 74% 2014

• Increased focus and growth from e-commerce; up

15% year-over-year

• Future revenue opportunities identified in

International, emerging sub brands, and new

product introductions

• Working with select large retailers to enhance our

presence on their websites

• Working to improve mobile and e-commerce

capabilities on summerinfant.com

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

2012 2013 2014 2015

Sales by Brand

Summer Owned Brands Private Label Licensed Brands

All Other

6%

Baby Specialty

24%

Dept Stores

3%

Discount/Outlet

3%

E-Comm

23%

International

15%

Mass

23%

Specialty

3%

2015 Sales by Channel

Babies R Us

BuyBuyBaby

(Excl Drop-Ship)

Walmart (US)

Target (US)

(Excludes

.COM)

Canada

EMEA

APLAAmazon

Diapers.com, Zulily

(US & Int Retailers/Drop Ship)8

Turnaround Progressing

Recent Successes

• Released multiple new products with 4+ Star ratings

• Exited non-core areas & licensing agreements

• Reduced operating costs by $4M

• Reduced inventory 17% and working capital by 30%

• Restructured credit facilities saving $1M in cash

annually

2016

• Grow sales by targeting new markets & developing

sub brands (Kiddopotamus, Pop, Baby my Baby)

• Expand margins via new releases and improving

running line margins

• Drive cash flow

• Continue to pay down debt

• Leverage G&A infrastructure9

� Babble Band™Wearable Audio Monitor

o Soft silicone wristband adjusts to fito Voice-activated (VOX) audio monitor

up to 800 ft. rangeo 3 monitoring modes

o Baby unit is recharging baseo Rated 4.4 stars

� Liv Cam™On-the-go Camera

o Peer-to peer WiFi with easy setupo Free APPo No cellular data chargeso Compatible with iOS and Android devices

o Travel-friendly mounting options

o Automatic night vision

Summer Monitors

The Bump - Best of Baby 2016

Innovation Award

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Summer Safety

� My Size Pottyo Look and feel of an adult toilet o Helps ensure a comfortable and confident

transition to the real thing.o Toilet handle makes a flushing sound o With built in wipe dispenser

o Exceeding all expectations

o 4.3 stars on Amazon

� Waterfall Baby Bathero Soothing waterfall feature circulates water to

help clean and warm babyo Removable bolster to support newborns

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� Evolv All Terrain StrollerKEY FEATURES• Trunk friendly fold, 2 modes:

• Jogging – front wheel locks forward for added stability when running

• Everyday – front wheel flips back into swivel mode • Large oversized canopy with peek window and reflective

details• TONS of storage – parent tray with cup holder, mesh

pocket & cell phone holder, middle mesh storage bag, lower storage basket

• Adjustable handlebar • Bluetooth speaker for handsfree jogging

� 3D lite Convenience Stroller

o one of the lightest and most feature rich convenience strollers on the market.

o easy to fold frame and

carry strapo Consumers Digest Best Buy

Summer StrollersIn Industry Top Five in 3 Years

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� SwaddleMe – 4 Stages of Swaddles

o SwaddleMe knows that when your baby sleeps better, you sleep better. Our entire line of sleep products has been expertly designed and tested to keep babies snug, safe, and comfy every night throughout their first year.

SAFER SLEEP. BRIGHTER DAYS.

SwaddleMe Wearable Blanket• Mother & Baby Awards, Best Newborn Sleep Aid – BRONZE 2010• She Knows Parenting Awards 2013• American Baby, BESTS 2013• Mom’s Choice Awards, SILVER 2015

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� Born Free® Breezeo With only two parts, the Born Free breeze™ glass

bottle is the easiest to clean bottle system that both you and your baby will love. The anti-colic design ActiveFlow® vent puts baby in flow-control. Breeze BPA-free glass bottles are made from ThermaSafe™ glass and can safely go from freezer to boiling water.

o Rated 4.8 stars

Born Free Breeze BottlesThe Bump Best of Baby Awards 2016

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� KiddopotamusSuper Duper Seato 360 degrees of floor time activity

fun & booster in oneo Soft foam Support seato Activity Seato Booster seat

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� Pop Line – Portable On The Go ProductsPop ‘n Jump is the perfect entertainer for parents and babies on the go! It’s compact, light-weight folding frame

comes fully assembled and sets up in seconds.

• Pop ‘n Sit Portable Booster makes feeding time easy with a removable, BPA free tray, innovative pop and fold set-up, and over the shoulder carrying bag.

Rated 4.8 stars

• Pop ‘n Sit High Chair is perfect for dining on-the-go or even in the patio with your little one. When your baby needs a place to eat, just pop it open.

• Pop’n Play Ultimate Playard allows you to create a safe portable play area for baby.

Consumer Digest Best Buy

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� Baby My Babyo The Summer Infant Baby My Baby collection offers

products that enhance the natural benefits of infant massage. This line, the first of its kind, was designed to inform parents about the benefits of massage for both baby and caregivers and to provide them the perfect products to facilitate a wonderful bonding experience.

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Recent Financials

January 2, 2016 January 3, 2015 January 2, 2016 January 3, 2015

Net sales 50,779$ 50,969$ 205,804$ 205,359$

Cost of goods sold 35,180 34,521 143,854 138,418

Gross profit 15,599$ 16,448$ 61,950$ 66,941$

General and administrative expenses 10,897 10,770 46,132 40,273

Sell ing expense 4,485 4,695 17,780 18,437

Depreciation and amortization 2,853 1,416 6,780 5,548

Operating (loss) income (2,636)$ (433)$ (8,742)$ 2,683$

Interest expense 580 884 3,333 3,455

(Loss) before taxes (3,216)$ (1,317)$ (12,075)$ (772)$

Income tax (benefit)/expense (111) (706) (3,424) (527)

Net (loss)/income (3,105)$ (611)$ (8,651)$ (245)$

(Loss) per diluted share (0.17)$ (0.03)$ (0.47)$ (0.01)$

Shares used in fully diluted EPS 18,351,914 18,141,738 18,267,596 18,060,799

For the fiscal year endedFor the 3 months ended

Core Product Sales Growth Year/Year

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Balance Sheet

January 2, 2016 January 3, 2015

Cash and cash equivalents 923$ 1,272$

Trade receivables, net 40,514 38,794

Inventory, net 36,846 44,010

Property and equipment, net 12,007 13,080

Other intangible assets, net 18,512 20,679

Other assets 5,825 4,632

Total assets 114,627$ 122,467$

Accounts payable 29,541$ 21,878$

Accrued expenses 9,584 8,628

Current portion of long-term debt 3,318 1,641

Long term debt, less current portion 50,256 57,097

Other long term l iabil ities 2,962 2,994

Deferred tax liabilities - 2,378

Total l iabilities 95,661$ 94,616$

Total stockholders’ equity 18,966 27,851

Total l iabilities and stockholders’ equity 114,627$ 122,467$

Restructured Debt, Reduced Inventory, and Reduced Working

Capital Needs in 2015

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Adjusted EBITDA & EPS Reconciliation

January 2, 2016 January 3, 2015 January 2, 2016 January 3, 2015Reconciliation of Non-GAAP EBITDA

Net (loss) (3,105)$ (611)$ (8,651)$ (245)$

Plus: interest expense 580 884 3,333 3,455

Plus: (benefit)/expense for income taxes (111) (706) (3,424) (527)

Plus: depreciation and amortization 2,853 1,416 6,780 5,548

Plus: non-cash stock based compensation expense 165 209 865 1,220

Plus: permitted add-backs 1,454 838 10,794 3,294

Adjusted EBITDA 1,836$ 2,030$ 9,697$ 12,745$

Reconciliation of Adjusted EPS

Net (loss) Income (3,105)$ (611)$ (8,651) (245)

Plus: permitted add-backs 980 479 7,275 1,884

Plus: accelerated amortization 1,033 - 1,033 -

Plus: unamortized financing costs - - 462 -

Adjusted net income (1,092)$ (132)$ 119$ 1,639$

Adjusted earnings per diluted share (0.06)$ (0.01)$ 0.01$ 0.09$

For the 3 months ended For the fiscal year ended

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Investor Highlights • Leading Designer & Supplier of Juvenile Products

• Strong Well-Known Brands

• Positive Industry Dynamics

• Experienced Management Team

• Focused on Core Strengths: NPD, Leveraging our Brands, and Operational Excellence

• Targeted Growth Strategies in all our Product Categories

• 2016 Leverage Infrastructure

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Use of Non-GAAP Financial Metrics

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.

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Thank You

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