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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
2
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
3
Business Overview
Unique
Positioning
to Meet
Moms Needs
Brand
Key
Categories
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 Needs
Serving 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
SwaddleMe
Expanded Shelf
Space
Refreshed branding
Safety
Pop ‘N Play
Gear
3D Lite Strollers
2015 Opportunity
New Feeding System
Expanded Stroller line
5
Focused Brand Strategy
Innovative 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
6
Summer Smart Environment
7
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
8
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 $170
billion in annual
purchasing power
Connected:
Texting, pinning, tweeting,
status updating; she
spends on average 17.4
hours a week on Social
media.
Believe strongly
that recommendations
by other parents (46%)
and experts (35%) is
important
Share Everything/
Share Often:
Online and in-person, she
talks about her product
experiences and solicits
feedback from her peers
when planning a purchase.
9
*various sources and Company data
Email Blast to our Summer
Circle Subscribers
Expanding Digital Strategy
Video content for use on social, owned website & retailer sites
Sweepstakes shared across social media and website
Seeding & support for
Online Reviews
10
Turnaround in Progress
• Focus on Brands
• Streamlined product portfolio
• Exited non-core areas & licensing agreements
• Restructured credit facilities
• Gross margin improvement
• Target new markets
• Further expand margins
• Reduce inventory
• Drive cash flow
• Pay down debt
• Leverage G&A structure
Recent Successes
2015 Path to Success
11
Recent Financials
Core Product Sales Growth Year/Year
12
October 3, 2015 September 30, 2014 October 3, 2015 September 30, 2014
Net sales 50,205$ 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 liabilities 2,418 2,378
Total liabilities 95,243$ 94,616$
Total stockholders’ equity 22,289 27,851
Total liabilities and stockholders’ equity 117,532$ 122,467$
Adjusted EBITDA & EPS Reconciliation
14
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 Experience
CEO, President and Chief Operating Officer Adept at increasing business profitability
Bill Mote 20+ Years Experience
Chief 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 Experience
Executive Chairman Established turnaround - global leadership
15
• 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
16
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
17
Thank you 18

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Sumr investor presentation dec 2015

  • 1. Confidential Information Summer Infant -- Do Not Distribute Summer Infant – Investor Presentation December 2015
  • 2. 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 2
  • 3. 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 3
  • 4. Business Overview Unique Positioning to Meet Moms Needs Brand Key Categories 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 Needs Serving 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
  • 5. 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 SwaddleMe Expanded Shelf Space Refreshed branding Safety Pop ‘N Play Gear 3D Lite Strollers 2015 Opportunity New Feeding System Expanded Stroller line 5
  • 6. Focused Brand Strategy Innovative 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 6
  • 7. Summer Smart Environment 7 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
  • 8. 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 8
  • 9. 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 $170 billion in annual purchasing power Connected: Texting, pinning, tweeting, status updating; she spends on average 17.4 hours a week on Social media. Believe strongly that recommendations by other parents (46%) and experts (35%) is important Share Everything/ Share Often: Online and in-person, she talks about her product experiences and solicits feedback from her peers when planning a purchase. 9 *various sources and Company data
  • 10. Email Blast to our Summer Circle Subscribers Expanding Digital Strategy Video content for use on social, owned website & retailer sites Sweepstakes shared across social media and website Seeding & support for Online Reviews 10
  • 11. Turnaround in Progress • Focus on Brands • Streamlined product portfolio • Exited non-core areas & licensing agreements • Restructured credit facilities • Gross margin improvement • Target new markets • Further expand margins • Reduce inventory • Drive cash flow • Pay down debt • Leverage G&A structure Recent Successes 2015 Path to Success 11
  • 12. Recent Financials Core Product Sales Growth Year/Year 12 October 3, 2015 September 30, 2014 October 3, 2015 September 30, 2014 Net sales 50,205$ 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
  • 13. 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 liabilities 2,418 2,378 Total liabilities 95,243$ 94,616$ Total stockholders’ equity 22,289 27,851 Total liabilities and stockholders’ equity 117,532$ 122,467$
  • 14. Adjusted EBITDA & EPS Reconciliation 14 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
  • 15. Senior Leadership Team Bob Stebenne 30+ Years Experience CEO, President and Chief Operating Officer Adept at increasing business profitability Bill Mote 20+ Years Experience Chief 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 Experience Executive Chairman Established turnaround - global leadership 15
  • 16. • 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 16
  • 17. 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 17