Fgi Industries Ltd. · NASDAQ:FGI
Fgi Industries — Q2 2023 Earnings Presentation
15 slides from Fgi Industries's earnings presentation, August 2023
Slide 1: Investor Presentation
Investor Presentation August 2023
Slide 2: Disclaimer
Disclaimer Certain matters discussed in this presentation contains forward-looking statements concerning our business, operations and financial performance and conditions, as well as our plans, objectives and expectations for our business operations and financial performance and condition. These sta
Slide 3: FGI Industries at a Glance
FGI Industries at a Glance New Construction 20% Leading global supplier of Kitchen and Bath Products FGI is a leading global supplier of Kitchen and Bath products with a Repair/Remodel 80% reputation of Innovation, Quality and Service developed over 30 years in conjunction with our parent company, F
Slide 4: Company Overview
Company Overview Diverse Business Mix Provides Stability Sanitaryware Bath Furniture Shower Systems Other (Kitchen Cabinetry, etc.) $105MM in 2022 Sales (65% of sales) $30MM in 2022 Sales (18% of sales) $22MM in 2022 Sales (14% of sales) $6MM in 2022 Sales (4% of sales) $12.5Bn market oppo
Slide 5: Key Investment Highlights
Key Investment Highlights Opportunity to drive significant shareholder value We are dedicated to Diversified Portfolio and History of Innovation • Diversified mix of products, market segments and sales channels driving shareholder value • Tradition of strong innovation with leading ‘on-trend’ design
Slide 6: Second Quarter Overview and Financial Review
Second Quarter Overview and Financial Review 6
Slide 7: Business Highlights – 2Q23
Business Highlights – 2Q23 2Q23 results were Revenue Operating Income highlighted by Second quarter revenue declined 39% Operating income was impacted by driven by continued inventory de-stocking ongoing investments in our BPC organic continued gross margin growth initiatives improvement, further pr
Slide 8: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results Total Revenue Gross Profit Adjusted Operating Income (1) Adjusted Net Income (1) $MM $MM $MM $MM $31.6 $30.8 $5.2 $194.5 $4.0 $3.8 $126.7 $2.2 $8.4 $1.7 $1.2 $47.8 $8.0 $29.2 $0.6 $0.1 2Q22 2Q23 LTM - LTM - 2Q22 2Q23 LTM - LTM - 2Q22 2Q23 LTM - LTM - 2Q22 2Q2
Slide 9: Quarterly Business Line Results
Quarterly Business Line Results Revenue by product category Sanitaryware Bath Furniture Shower Systems Other ($MM) ($MM) ($MM) ($MM) $55.3 $104.5 $104.8 $21.9 $6.9 $19.1 $18.5 $5.8 $79.9 $29.5 $21.5 $3.1 $32.3 $6.5 $18.8 $4.3 $1.3 $1.3 $7.7 $4.8 2Q22 2Q23 2021 2022 LTM 2Q22 2Q23 2021 2022 LTM 2Q22 2
Slide 10: Balance Sheet & Liquidity Update
Balance Sheet & Liquidity Update Cash & Availability ($MM) Net Debt (1) ($MM) $23.8 $22.5 $22.6 Significant working capital improvements have $11.6 strengthened the balance $11.0 sheet and liquidity $6.4 • Cash and availability was $22.6 million at 2Q23 owing to strong free cash flow $7.0 conversion
Slide 11: Financial Outlook
Financial Outlook 2023 FINANCIAL OUTLOOK Adjusted Operating Adjusted Revenue Income Net Income $120 – 130 $3.5 – 5.0 $2.0 – 3.0 million million million 2023 guidance includes roughly $0.5 million of costs related to investments in a new kitchen program. Guidance for adjusted operating income and adj
Slide 12: Investment Conclusion
Investment Conclusion Ample liquidity to support ongoing growth of business TRUSTED GLOBAL SUPPLIER STRONG ORGANIC GROWH We are global, diversified, and reputable We pursue a “BPC” strategy: focus on Brands, supplier of quality kitchen & bath products Products and sales Channel. Our BPC plan is (Inn
Slide 13: Appendix
Appendix (USD) 2020 2021 2022 2Q22 2Q23 REVENUES 134,827,701 181,943,027 161,718,543 47,809,014 29,189,913 GROSS PROFIT 28,404,640 32,202,408 31,509,005 8,420,953 8,010,402 GROSS MARGINS 21.1% 17.7% 19.5% 17.6% 27.4% SELLING AND DISTRIBUTION 15,487,306 17,636,820 17,533,028 4,362,707 4,800,518 GENER
Slide 14: Appendix
Appendix 14 Income from operations Adjustments: Non-recurring IPO-related compensation IPO legal fee Business expansion expense Arbitration legal free Anti-dumping penalty Adjusted income from operations Revenue Adjusted operating margins For the three months ended June 30, 2023 $ 580,275 $ 61,770 6
Slide 15: Appendix
Appendix 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Cash $ 8,793,338 $ 3,126,305 $ 5,981,019 $ 10,067,428 $ 7,380,212 $ 6,894,762 Total Debt $ 16,321,410 $ 14,690,048 $ 13,007,649 $ 9,795,052 $ 8,426,548 $ 7,863,680 Net Debt $ 7,528,072 $ 11,563,743 $ 7,026,630 $ (272,376) $ 1,046,336 $ 968,918 15