Investment Opportunity
About Align Align Creative Partners (Align) is a private investment firm focused on developing small to mid-size branded apparel and accessories companies by providing industry expertise, strategy, marketing, capital, and back-office functions to support the growth of the brand. Align’s objective is to support our partner companies, taking a long-term strategic approach that doesn’t force immediate change nor a profit-at-all-costs environment. We identify opportunities and areas for improvement and then work collaboratively to impart change and drive sustainable growth, leveraging the expertise of our team and trusted partners in the retail, operations, banking, technology, and marketing industries. Align was founded by Alaina Maciá and Michael Saunders, two successful professionals who share a love of fashion and design, and have the resources and expertise to support their vision. Their mission is to acquire small to mid-size brands and provide them a platform for growth and profitability. Their vision is to produce top-quartile returns by making wise investments and becoming the leading platform for fashion apparel brands.
A natural leader, visionary, and entrepreneur, Alaina Maciá has more than ten years experience building, leading, and transforming companies for sustained growth in the transportation and healthcare industries. As President and CEO of MTM, Inc., Alaina has taken the business to a new level since she took over in 2005 as President and CEO. The company has grown from 200 employees to nearly 1,000, and has more than tripled in revenue from $50 million to $175 million. She has achieved 25% year over year growth by developing additional product offerings, streamlining operations, and focusing on sales and marketing efforts to increase awareness.
Alaina Maciá
Alaina also created and established her own transportation company Ride Right, LLC to serve public transportation contracts. Under her leadership, Ride Right has grown exponentially, posting annual revenues of $13 million.
Sales & Marketing Strategy
The St. Louis Business Journal has repeatedly recognized Alaina’s success, naming her to their 30 Under 30 class in 2004, and again to their 40 Under 40 class in 2011. In 2012, she was recognized as one of the Top 25 Women in Business. Her leadership has also recently helped MTM achieve its place in The St. Louis Business Journal’s Top 150 Privately Held Companies (April 2011 and April 2013), Top 20 Fastest-Growing Private Companies (May 2011 and May 2012), and Top 50 Woman-Owned Businesses (December 2012). Alaina holds a master’s degree in business administration from the Olin School of Business, Washington University, with an emphasis in corporate strategy and finance. Her undergraduate degree from the same university is in biological engineering. Alaina has the knowledge and ability to lead teams to success, motivating individuals to achieve larger goals while ensuring a culture of ownership and accountability.
Founder 314-495-4953 amacia@aligncreative.net
Areas of Expertise: Strategic Growth Building & Leading Successful Teams Business Transitions
Align Leadership
Alaina Maciá
Michael M. Saunders Michael Saunders is a seasoned business executive with over 15 years of top-level management experience leading large retail, apparel, and consumer products organizations. Michael also serves on several boards and has consulted with industry giants such as Guess, Liz Claiborne, and Norton McNaughton to provide expertise in areas of retail, product development, systems, and supply chains. Michael most recently held the position of Chief Operating OďŹƒcer of Kellwood Company, an organization that designs, manufactures, and markets a growing collection of premiere fashion brands such as Vince, David Meister, XOXO, and Rebecca Taylor. He has been instrumental in optimizing Kellwood’s operations, spearheading their key growth initiatives, and successfully launching new brands with retail, e-commerce, and wholesale distribution. Michael has a proven track record in mergers and acquisitions and developing strategic growth platforms for brands. For example, the brand Vince has experienced tremendous growth from $30 million in sales since the acquisition in 2006 to several hundred million in sales today. Most recently, Michael led corporate initiatives to grow Vince’s international revenue by 34%, completed three strategic acquisitions with over $300 million in total revenue, and launched a progressive e-commerce strategy that achieved over 100% growth. A graduate of the Harvard Business School Advanced Management Program and the Virginia Tech College of Engineering, Michael combines a strong educational background with industry know-how and established professional relationships within the apparel and retail world. Michael will lead Align and its clients to success by carefully focusing on building each brand and transforming the business infrastructure to provide a solid foundation for growth and new ventures.
Michael Saunders Founder 636-451-6139 msaunders@aligncreative.net
Areas of Expertise: Brand Building Business Transformation Operations Information Technology Mergers & Acquisitions
Initial Proposed Investment:
Investment Highlights: Strong, established brand in business since 1976 $38 million in revenue Founder-owned Stable & diverse customer base Established retail & e-commerce
As the founder of the “original tee,” Los Angeles-based Michael Stars has pioneered casual chic tees since its founding in 1976, when a chance meeting with a beachside artist inspired South Africa-native Michael Cohen to launch a unisex T-shirt line. Michael Stars is known today for its wide selection of perfectly fitted tees, signature “shine” fabric, ultra-soft layering pieces, and plush cashmere sweaters. Michael Stars opened its first retail store in Manhattan Beach in 2001. Today, the brand has 12 retail stores in California and is distributed throughout all 50 states and internationally. Michael Stars styles have been featured on the pages of top-selling magazines such as Vogue, Lucky, Elle, and InStyle, and the brand counts celebrities like Jennifer Aniston, Courtney Cox, Angelina Jolie, and Jessica Biel among its fans. Bringing in $38 million in net annual sales, the company remains under the ownership of founders Michael Cohen and Suzanne Lerner, who are looking for a partner to help them grow their business and take the Michael Stars brand to the next level.
Highlights
The Michael Stars company is poised for growth. The 25-year-old brand has reached a natural ceiling often experienced by founder-led apparel companies. The founders recognize their current limitations and are seeking a partner with the expertise to develop growth strategies to transform Michael Stars into a leading contemporary lifestyle brand. Key investment highlights include: • The brand has a positive reputation with a loyal customer base and strong consumer affinity • The brand’s EBITDA has underperformed the competition, primarily due to inefficient leverage of the cost structure • Gross margins are very strong • Sales have been flat for many years due to a lack of focus on growing major department stores, retail, or e-commerce • There are no significant customer or vendor concentrations • The founders have agreed to a structured deal with a long term (five-year) earnout and have also agreed to sell in a non-competitive bid process
Adjusted EBITDA (millions) CAGR 56.4
16.9
0 11.4 5 0
7.8 4.3
5 1.9
2.1
1.8
1.5
2011
2012
2013
2014
0 2015
2016
2017
2018
Adjusted EBITDA (millions) Actual
Adjusted EBITDA
Projected
2011
2012
2013
2014
2015
2016
2017
2018
1.9
2.1
1.8
1.5
4.3
7.8
11.4
16.9
Net Sales (millions)
90
Licensing
80
Retail
70
E-commerce
60
Wholesale
50 40 30 20 10 0
2011
2012
2013
2014
2015
2016
2017
2018
Net Sales (millions) 2011
2012
2013
2014
2015
2016
2017
Wholesale
27.5
27.2
25.8
26.1
29.8
35.2
43.0
53.1
Ecommerce
2.8
2.7
2.9
4.0
5.5
7.1
8.9
11.8
Retail
7.1
7.8
7.1
7.5
9.3
10.6
10.8
11.2
Licensing Total
2018
-
-
-
.4
.5
.5
.6
.7
37Ǥ4
͛͟Ǥ͟
3͝Ǥ͠
͛͟Ǥ͞
͜͜Ǥ͞
͚͝Ǥ͡
͚͞Ǥ͟
͟͞Ǥ͙
Gross Sales (millions)
90
Licensing
80
Retail
70
E-commerce
60
Wholesale
50 40 30 20 10 0
2011
2012
2013
2014
2015
2016
2017
2018
Gross Sales (millions) 2011
2012
2013
2014
2015
2016
2017
2018
Wholesale
32.5
31.9
29.7
32.6
37.4
44.1
53.9
66.5
Ecommerce
2.8
2.7
2.9
4.0
5.5
7.1
8.9
11.8
Retail
7.1
7.8
7.1
7.5
9.3
10.6
10.8
11.2
Licensing Total
-
-
-
.4
.5
.5
.6
.7
42Ǥ4
42Ǥ4
39Ǥ7
44Ǥ1
52Ǥ1
61Ǥ8
73Ǥ6
89Ǥ5
Value Proposition Net sales at Michael Stars have remained flat over the last several years. Significant opportunity exits to grow both the top and bottom line through the following value propositions:
1. Increasing Penetration at Major Department Stores 2. Improving Digital Marketing and E-commerce 3. Expanding Company-Owned Retail 4. Introducing a Men’s Line 5. Expanding Licensing Partnerships 6. Optimizing Operations and the Supply Chain 7. Enhancing Executive Leadership
1.
Increasing Penetration at Major Department Stores Michael Star’s apparel is currently available in several hundred specialty stores across the United States. Although it can also be found at a few Bloomingdale’s and Neiman Marcus doors, the brand is not widely penetrated at major department stores. Align proposes developing strategic partnerships with more major department stores, particularly upscale stores such as Nordstrom, Lord & Taylor, and deeper penetration at Bloomingdales. Michael Stars’ price point and product assortment fits nicely with new strategic initiatives to offer more value-oriented products at major upscale retailers. As we increase store penetration and door count at major retailers, we believe it is critical to create a “store within a store” display approach, promoting a boutique-like atmosphere and shopping experience while maximizing brand perception and shopping experience. Our goal is deliver $35 million in sales growth through major retailers by 2018.
2.
Improving Digital Marketing and E-commerce Maximizing e-commerce revenue is extremely critical for revenue generation as there is a significantly higher profit margin for e-commerce sales as compared to wholesale distribution and retail store sales. Also, according to a report by eMarketer, online sales of apparel and accessories are now growing faster than any other ecommerce product segment, representing a 15.4% increase in 2012 and an estimated 16.4% through 2016.
Align proposes a series of initiatives focused on marketing, technology, merchandise assortment, and operational execution. With a fresh new look and more aggressive sales techniques, such as reminders to customers who attempt to navigate away from the site with items remaining in their cart, Align will increase Michael Stars’ e-commerce revenue and bottom line profit. Currently, less than 10% of Michael Stars’ revenue is driven by e-commerce. Our goal is triple e-commerce sales by 2018.
$73.0 $56.6 $34.2
$41.0
$64.8
$48.6
2011 2012 2013 2014 2015 2016 Online apparel sales forecast 2011-2016 Apparel & accessories is the fastest-growing category of online sales among nine major categories, eMarketer says. Apparel sales will grow 16.4% through 2016, eMarketer predicts, versus 13.3% for e-retail as a whole. Source: eMarketer
Existin Forecast Actual
Metric
Estimated/Projected
Prior 3 2011
Prior 2 2012
Prior 1 2013
Current 2014
Project 1 2015
Project 2 2016
Project 3 2017
Project 4 2018
0.60%
0.60%
0.60%
0.70%
0.80%
0.90%
1.00%
1.20%
2,791,667
2,743,000
2,929,333
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Ecommerce Avg Price
75.00
75.00
75.00
75.00
90.00
90.00
90.00
90.00
Ecommerce UPT
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
AOV
165
165
165
165
198
198
198
198
No of Orders
16,750
16,458
17,576
24,242
28,000
36,000
45,000
59,596
No of Units
36,850
36,208
38,667
53,332
61,600
79,200
99,000
131,111
Ecommerce Sales
2,764
2,716
2,900
4,000
5,544
7,128
8,910
11,800
Ecommerce Conversion Rate Traƥc
Ǧ orecast Actual
Metric
Estimated/Projected
Prior 3 2011
Prior 2 2012
Prior 1 2013
Current 2014
Project 1 2015
Project 2 2016
Project 3 2017
Project 4 2018
Ecommerce Conversion Rate
0.60%
0.60%
0.60%
0.70%
0.80%
0.90%
1.00%
1.20%
Traƥc
#####
#####
#####
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Ecommerce Avg Price
75.00
75.00
75.00
75.00
90.00
90.00
90.00
90.00
Ecommerce UPT
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
AOV
165
165
165
165
198
198
198
198
No of Orders
16,750
16,458
17,576
21,000
28,000
36,000
45,000
60,000
No of Units
36,850
36,208
38,667
46,200
61,600
79,200
99,000
132,000
Revised Ecommerce Sales
2,764
2,716
2,900
3,465
5,544
7,128
8,910
11,880
5,544
7,128
8,910
11,800
Change in Sales
(535)
New Forecast Sales
4,000
80
Michael Stars has solid branding and marketing materials, but we believe that it could benefit from a fresh look. We propose an update to the existing campaign. As we update the website, introduce a new men’s line, and expand the customer base to include more international clients, we need to be sure that branding appeals to a new, wider consumer base. We estimate the cost of this campaign to be an incremental $750k annually
Strategic initiatives include: • Improving model quality and lifestyle photography • Focusing on shopping cart abandonment emails, site performance at checkout, steps to check-out, payment options, etc. to increase conversion rate • Increasing AUR by providing cross-sell, improving up-sell technology and shop-the-look functionality, and ensuring daily site merchandising • Increasing marketing efforts through more call-to-action emails • Improving the mobile site shopping experience • Building world-class e-commerce
3. Expanding Company-Owned Retail Michael Stars currently has 12 retail stores in California. In other states, and also in California, Michael Stars products are available in some small boutiques. Align proposes developing robust retail capabilities and expanding the retail presence of Michael Stars, both in California and beyond. Additional retail units would serve several functions; in particular, it would:
• Reinforce the image of Michael Stars as a lifestyle brand • Enhance brand development and recognition by allowing consumers to experience the entire collection • Allow the company to test and market new products • Enable the company to capture higher markups and valuable consumer data
We would build more stores in California, and eventually expand to larger cities across the United States. Over the next several years, Align feels that most major US cities could support retail stores and temporary / seasonal pop-up stores in locations such as Chicago, Dallas, Atlanta, Miami, and New York. In year two, we would open a 3,000 square foot flagship store in NewYork, on Madison Avenue or similar, to provide a retail anchor store and continue to improve upon brand awareness and visibility. We would also create an international presence, focusing on European countries like Spain, Greece, and Southern France where there is strong demand for American apparel, particularly that with the California flair. Currently, Michael Stars’ stores average sales of approximately $300 per square foot. Our goal would be to have 20 retail stores by 2016 representing $12 million in sales.
4.
Introducing a Men’s Line Since its inception in 1976, Michael Stars has focused on women’s clothing. The market for men’s clothing has seen an increase in sales recently with worldwide sales expected to exceed $402 billion in 2014. Align proposes introducing a men’s line to increase sales and expand the customer base. The development and introduction of this line will require a precise marketing campaign and integration into the Michael Stars’ website.
We estimate that adding a men’s line could bring in $8 million in additional revenue by 2015. Denim and leather products are currently sold in Michael Stars stores, but these items are alternative licensed brands. Align proposes the addition of new, signature denim and leather lines. If demand for these products remains the same as it is today, Michael Stars would be poised to see an increase in revenue of approximately $5 million by converting these buyers to the signature brand.
E-commerce is especially important for the growth of this line as studies show that affluent men often prefer buying in an online environment. The research company calculated that online sales of men’s clothing accounted for 5.1% of total retail sales last year, which was almost at par with women’s clothing at 5.6%.
5.
Expanding Licensing Partnerships The Michael Stars brand has a few small licensing partnerships in the areas of accessories and denim. There is a potential to license the Michael Stars brand name in with strategic partners in key categories such as kids, handbags, shoes, and other non-apparel categories. Our goal would be to generate near $1 million in royalty income by 2018.
6.
Optimizing Operations and the Supply Chain The current SG&A structure of Michael Stars is higher than industry benchmarks. There is significant opportunity to reduce spending in sales and operations while gaining leverage on fixed cost infrastructure. Key initiatives in operations include: • Improving working capital through improved vendor terms and cycle time reductions • Optimization of resources in key cost centers such as sales, design, and production • Reduction in expenses through new strategic relationships with key vendors and suppliers
Ƥ Ǥ Benchmark Companies
Michael Stars
2010A
2013E
2012E
2010A
2012A
2012A
2011A
Private Company A
Private Company B
Private Company C
Private Company D
Private Company E
Private Company F
Private Company G
2013E
2014
2015
2016
2017
$5500
$26082
$88200
$46700
$118642
$541148
$14397
$35757
$37550
$44599
$52920
$62722
Standard COGS
2690
12258
32500
24400
62472
232867
6107
14553
15283
18152
21538
25528
Gross ProƤt
2810
13824
55700
22300
56170
308281
8920
21204
22267
26447
31381
37194
Gross ProƤt %
51.1%
53.0%
63.2%
47.8%
47.3%
57.0%
57.6%
59.3%
59.3%
59.3%
59.3%
59.3%
1788
10693
24500
17000
45453
198135
6686
21240
22102
23028
24597
26841
32.5%
41.0%
27.8%
36.4%
38.3%
36.6%
46.4%
59.4%
58.9%
51.6%
46.5%
42.8%
$1022
$3131
$31200
$5300
$10717
$110146
$1604
$1807
$1508
$4338
18.6%
12.0%
35.4%
11.3%
9.0%
20.4%
11.1%
5.1%
4.0%
9.7%
$7786 14.7%
$11447 18.3%
Distribution
Nordstrom Neiman
Nordstrom Neiman
Nordstrom Neiman
Nordstrom Neiman
Nordstrom Retail
Dillard's Specialty
Nordstrom Neiman
Specialty
Average Unit Retail
$275 - 725
$245 - 700
$95 - 250
$99 - 225
$98 - 180
$30 - 350
$165 - 895
$90
Net Revenue
SG&A SG&A as % of net sales Adjusted EBITDA EBITDA Margin
7.
Enhancing Executive Leadership For the last 25 years, Michael Cohen as served in the CEO capacity. He remains as passionate today as he was when he founded the company, but also recognizes the need for new leadership to drive change. Michael Saunders will assume the role as CEO and leverage his experience and strategic leadership to take the company to the next level. Michael Cohen has agreed to remain involved with company in a non-operating role to assist in the transition.
Growth of Align: Future Portfolio We believe that the Michael Stars partnership is a perfect foundation on which to build the Align portfolio. An established and successful company, Michael Stars represents a solid investment with high potential. The next step for Align is to acquire additional founder-owned brands that can build on the framework established with the Michael Stars project. The objective is to partner with other established companies that provide contemporary style and that cater to the higher-end consumer. Target companies could be requiring additional capital, marketing and branding support, management turnaround, or other value-creating actions. Initially, Align would seek out other brands that complement the Michael Stars offering, such as an accessory or shoe company. This would provide Align with the opportunity to not only provide value by consolidating back office functions, but also to co-promote the merchandise in shared retail space or online. Align’s goal by 2016 is to attain in excess of $10 Million in EBITDA so as to access sufficient funding through capital markets to fund acquisitions and growth.
Profit and Loss Prior 3 2011
ProƤt and Loss (Dollars in thousands)
Account
Doors
Sales
120 40 150 60
20,000 6,000 12,000 10,000 8,000 12,000 32,000 100,000 1,000 1,000
Nordstrom Bloomingdales Dillard's Lord & Taylor/The Bay Online (Amazon, Zappos, etc.) International Specialty/Other Full Price Total Full Price Nordstrom Rack TJX Other Total Oơ Price Total Wholesale Gross Sales Ecommerce Retail Licensing Royalties Total Gross Sales Wholesale Discount Ecommerce Discount Retail Discount Total Discounts Total Other Deductions Total Net Sales Total COGS Gross ProƤt Salaries & BeneƤts Sales & Marketing Production, QC & Shipping General/Administrative Retail & E-Commerce Total SG&A Net Income Other Add backs Taxes / Interest Depreciation/Amortization EBITDA Legal Fees Owner Compensation Owner-Related Expenses Total Adjustments Adjusted EBITDA
370 150
150
Sales
Current 2013
Prior 2 2012
% Net Sales
Sales
% Net Sales
Doors
Sales
Projection 2014 % Net Sales
5
32,474 32,474
31,908 31,908
5
29,674 29,674
% Baseline
Doors
Sales
8% 12% 0% 0% 0% 5% 0%
10 5
1,600 720
15 8
600 29,674 32,594 50
5% 0% 0%
8
2,000 102,000
32,474 2,764 7,113 42,351 (3,832)
(3,832) (1,104) 37,415 (15,602) 21,813 (8,736) (4,174) (227) (7,110) (1,065) (21,311) 502 375 111 865 1,853
1,853
29,674 2,900 7,100
31,908 2,716 7,807
-10.2% 0.0% 0.0% -10.2% -3.0% 100.0% -41.7% 58.3% -23.3% -11.2% -0.6% -19.0% -2.8% -57.0% 1.3% 1.0% 2.3% 5.0% 0.0% 0.0% 0.0% 0.0% 5.0%
42,430 (3,334)
(3,334) (1,399) 37,698 (15,343) 22,355 (8,983) (4,443) (203) (7,394) (1,122) (22,145) 210 1,060 82 761 2,113
2,113
39,674 (2,819)
-8.8% 0.0% 0.0% -8.8% -3.7% 100.0% -40.7% 59.3% -23.8% -11.8% -0.5% -19.6% -3.0% -58.7% 0.6%
(2,819) (1,098) 35,757 (14,553) 21,204 (8,983) (4,443) (203) (6,489) (1,122) (21,240) (36) 1,000 82 761 1,807
5.6% 0.0% 0.0% 0.0% 0.0% 5.6%
-7.9% 0.0% 0.0% -7.9% -3.1% 100.0% -40.7% 59.3% -25.1% -12.4% -0.6% -18.1% -3.1% -59.4% -0.1%
1,807
(3,101) (3,493) 37,550 (15,283) 22,267 (9,945) (4,279) (193) (6,462) (1,223) (22,102) 165 500 82 761 1,508
5.1% 0.0% 0.0% 0.0% 0.0% 5.1%
1,508
Liquidation Analysis ( ased on Jun-13 data) Book Assets
50 32,644 4,000 7,500 400 44,144 (3,101)
EstǤ Recovery EstǤ Recovery
Value
Value
Rate
Accounts Rec.
2.6
1.6
60%
Inventory
4.0
2.0
50%
Other Current Assets
0.6
0.3
50%
PP&E, net
2.1
1.0
50%
Other assets
0.3
0.2
50%
Total Assets / Proceeds
9Ǥ5
5Ǥ0
52Ǥ7%
% Net Sales
-8.3% 0.0% 0.0% -8.3% -9.3% 100.0% -40.7% 59.3% -26.5% -11.4% -0.5% -17.2% -3.3% -58.9% 0.4%
4.0% 0.0% 0.0% 0.0% 0.0% 4.0%
Projection 2015
ProƤt and Loss (Dollars in thousands)
Account Nordstrom Bloomingdales Dillard's Lord & Taylor/The Bay Online (Amazon, Zappos, etc.) International Specialty/Other Full Price Total Full Price Nordstrom Rack TJX Other Total Oơ Price Total Wholesale Gross Sales Ecommerce Retail Licensing Royalties Total Gross Sales Wholesale Discount Ecommerce Discount Retail Discount Total Discounts Total Other Deductions Total Net Sales Total COGS Gross ProƤt Salaries & BeneƤts Sales & Marketing Production, QC & Shipping General/Administrative Retail & E-Commerce Total SG&A Net Income Other Add backs Taxes / Interest Depreciation/Amortization EBITDA Legal Fees Owner Compensation Owner-Related Expenses Total Adjustments Adjusted EBITDA
% Baseline
Doors
Sales
15% 20% 10% 10% 10% 10% 90%
18 8 15 6
3,000 1,200 1,200 1,000 800 1,200 28,800 37,200 150
15% 0% 0%
47 23
23
150 37,350 5,544 9,250 460 52,144 (3,548)
(3,548) (3,996) 44,599 (18,152) 26,447 (10,379) (4,270) (233) (6,821) (1,325) (23,028) 3,419 82 837 4,338
4,338
Projection 2016 % Net Sales
Projection 2017
% Baseline
Doors
Sales
30% 30% 30% 20% 20% 25% 80%
36 12 45 12
6,000 1,800 3,600 2,000 1,600 3,000 25,600 43,600 300 200
30% 20% 0%
105 45
45 83.7% 12.4% 20.7% 1.0% -8.0% 0.0% 0.0% -8.0% -9.0% 100.0% -40.7% 59.3% -23.3% -9.6% -0.5% -15.3% -3.0% -51.6% 7.7%
500 44,100 7,128 10,600 529 61,828 (4,190)
(4,190) (4,719) 52,920 (21,538) 31,381 (11,262) (4,276) (277) (7,343) (1,439) (24,597) 6,784 82 920 7,786
9.7% 0.0% 0.0% 0.0% 0.0% 9.7%
7,786
% Net Sales
Projection 2018
% Baseline
Doors
Sales
50% 50% 50% 50% 40% 30% 70%
60 20 75 30
10,000 3,000 6,000 5,000 3,200 3,600 22,400 53,200 400 300
185 60
40% 30% 0%
60
-7.9% 0.0% 0.0% -7.9% -8.9% 100.0% -40.7% 59.3% -21.3% -8.1% -0.5% -13.9% -2.7% -46.5% 12.8%
700 53,900 8,910 10,800 608 73,610 (5,121)
(5,121) (5,767) 62,722 (25,528) 37,194 (12,702) (4,297) (327) (7,950) (1,564) (26,841) 10,353 82 1,012 11,447
14.7% 0.0% 0.0% 0.0% 0.0% 14.7%
11,447
Balance Sheet Amount Jun-12 Jun-13
Assets Cash and cash equivalents
$
1.7
$
1.8
NWC Metrics $
-
Accounts receivable, net
2.1
2.6
26.3
Inventories
5.2
4.0
98.2 1.6%
Prepaid & Other current assets Total Current Assets PP&E, net
0.4
0.6
9.4
9.0
-
2.1
2.1
-
Intangibles
-
-
-
Deferred tax assets
-
-
-
0.4
0.3
-
Other assets Total Assets
12.0
11.4
-
$0.00
$0.0
$0.0
Lia ilities Accounts payable
0 $
1.0
0.00 $
0.00
0.8
20.0
1.2
3.4% 5.4%
Accrued expenses
1.0
Other current
2.9
2.0
4.9
4.0
-
-
0.4
-
0.4
0.2
-
5.2
4.7
-
6.7
6.7
-
12.0
11.4
-
Total Current Lia ilities Debt Other non-current liabilities Total Lia ilities Shareholder's Equity Lia ilities and Equity
% Net Sales
% Baseline
Doors
Sales
75% 75% 75% 75% 50% 40% 65%
90 30 113 45
15,000 4,500 9,000 7,500 4,000 4,800 20,800 65,600 500 400
50% 40% 0%
278 75
75
-8.2% 0.0% 0.0% -8.2% -9.2% 100.0% -40.7% 59.3% -20.3% -6.9% -0.5% -12.7% -2.5% -42.8% 16.5%
18.3% 0.0% 0.0% 0.0% 0.0% 18.3%
900 66,500 11,800 11,200 700 89,500 (6,318)
(6,318) (7,116) 76,067 (30,959) 45,108 (14,355) (4,335) (383) (8,617) (1,705) (29,395) 15,712 82 1,114 16,908
16,908
% Net Sales
-8.3% 0.0% 0.0% -8.3% -9.4% 100.0% -40.7% 59.3% -18.9% -5.7% -0.5% -11.3% -2.2% -38.6% 20.7%
22.2% 0.0% 0.0% 0.0% 0.0% 22.2%
16 Hawk Ridge Drive Lake St. Louis, MO 63367 Phone: 314-359-5236