School Speciality Inc · OTC:SCOO
School Speciality — School Specialty — Q1 FY2017 Earnings Presentation
21 slides from School Speciality's earnings presentation, May 9, 2017
Slide 1: Fiscal Year 2017 First Quarter Financial Results
Y, School Specialty. Fiscal Year 2017 First Quarter Financial Results May 9, 2017
Slide 2: Fiscal Year 2017 First Quarter CEO Commentary
Fiscal Year 2017 First Quarter— CEO Commentary NY Spec elty “During the first quarter, we saw balanced growth within our Distribution business, as most of our categories were up year-over-year, Supplies and Furniture, which comprise over 85% of our Distribution revenues, continues to grow, and we ar
Slide 3: Fiscal Year 2017 First Quarter Financial Review
Fiscal Year 2017 — First Quarter Financial Review 4 School \” 6 Specialty = Revenue of $97.1 millionvs. $93.7 million, up $3.4 million or 3.6%. 5 Distribution segment revenue grew YOY in Q1, up $6.9 million or 8.9%; steady YOY improvements in core product categories amplified by a1- week shiftin the
Slide 4: Fiscal Year 2017 First Quarter Revenue Review
Fiscal Year 2017 — First Quarter Revenue Review 4 School &” 6 Specialty. Distribution segment revenues of $84.7 million versus $77.8 million, an improvement of $6.9 million or 8.9%. supplies $ 49,496 § 44,842 § 4654 104% Fiscal 2017 started on Jan 1*; Fiscal 2016 started on December Furniture 2595 2
Slide 5: Consolidated Combined Statement of Operations
Consolidated Combined Statement of Operations 4 School Specialty. SCHOOL SPECIALTY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS ( Thousands, Except Per Share Ampunts) For the Three Months Ended April 1, 2017 March 26, 2016 REVENUES eee cece een neeeeeenneteneeentneeeeeneteeeene $ 710 $ 93,725 . 62,58
Slide 6: Adjusted EBITDA Comparisons
Adjusted EBITDA Comparisons ( School Specialty. [ ‘SCHOOL SPECIALTY, INC. ‘CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands) For the Three Months Ended ‘April 1, 2017 March 26, 2016 Adjusted Earnings before interest, taxes, depreciation, amortization, bankruptcy-related costs, restructuring and i
Slide 7: Balance Sheet Review
School Specialty. Y Balance Sheet Review
Slide 8: Consolidated Balance Sheet Comparison
Consolidated Balance Sheet Comparison N ( Spec elty ‘SCHOOL SPECIALTY.INC, ‘CONDENSED CONSOLIDATED BALANCE SEEETS (UNAUDITED) (dn Thousands, Event Shareand Per Shae Ammusts) Apill.2017 Marl ASSETS LLABILITIES AND STOCKHOLDERS’ EQUITY Conentasses (Conant bls: Cashand casheauivalets S558 «$7914 arent
Slide 9: Balance Sheet Review - Working Capital
Balance Sheet Review - Working Capital N/ School Specialty. ‘March 2015 2015 sccounte Receivable 5 87 S$ 755 S$ 7S $11 $ 142 $ i681 S$ G17 5 SSeS BIO Inventories 3 us7 S$ 110 5 m7 $ BBS B80 S$ 72 5 785 5 7625 752 Prepaid expense and othercurrent assets 5 2455 B95 BS $ B25 MES 75 $ 205 1315 166 Accou
Slide 10: Debt and Net Debt Summary
Cash and cash equivalents $5585 ABLFadility, maturingin 2019 8753 Term Loan, maturing in 2019 117,391, Total Ist Len Debt 126,144 Deferred Cash Payment Obligations 20,367 Total Debt 146,511 Net Debt (Total Debt- Cash and Ce) 140,925, Equity Market Capitalization 126,000 Enterprise Value 266,925, GAA
Slide 11: Free Cash Flow Analysis
Free Cash FlowAnalysis 4 School Specialty. Te ee eee Adjusted EBITDA Capex Prod Dev Unrealized FX (gain) loss Other (Change in WC Unleveraged fice CF Cash Interest Taxes Leveraged fiee CF GAAP CF Operating Investing (7.033) (3.241) (G46) 18 (1,069) (18,992) $ (30,863) $ (3,046) 392 $ Gs) 8 (29,730)
Slide 12: Fiscal 2017 Key Objectives
yy School Specialty. Fiscal 2017 Key Objectives
Slide 13: FY17 Key Objectives
FY17 Key Objectives N ( Spec elty © Refinance Term Debt COMPLETE 5 Address Liquidity issues in the Public Market 5 TheBoard and management are considering multipleavenues to not only continually improve the Company’ financial performance and market position, butalso its valuation and liquidity. Amon
Slide 14: FY17 Key Objectives (cont.)
FY17 Key Objectives (cont.) N ( Spec elty = Continue to Focus on Achieving Balanced Growth 5 Supplies category strengthened in FY16 due to new sales leadership and execution, and increased emphasis on domain expertise. Momentum continued in FY17 Qi. Within Distribution segment, continued emphasis on
Slide 15: Team-Based Selling - Our Vision for the Future
Team-Based Selling— Our Vision for the Future NY School pecialty. Team Sell Early Asymbiotic relationship across category sales teams to leverage brand and product solution strengths and success to increase account penetration and overall market OneForce (CRM) share as One company. OneForce Integrat
Slide 16: Leverage and Promote our Proprietary Brands
Leverage and Promote our Proprietary Brands Le / School h Snecialty CLASSROOM direct. ‘CLASSROOM Projects Se pee, cpo) wee | Beno | SMBH on P| CPO) A Educational Technology Powerful and innovative industry brands that our customers know and trust!
Slide 17: Fiscal 2017 Guidance
Y, School Specialty. Fiscal 2017 Guidance
Slide 18: Fiscal 2017 Guidance - Unchanged
Fiscal 2017 Guidance - Unchanged School LY (| Specialty. FY 16 Actual FY 2017 Guidance Revenue $656.3 Revenue growth expected to be in the range of 2.1% - 2.8% approximately $670M - $675M IGM (Excl. PD Amort.) % 37.7% —_GM%S excl. PD amortization) anticipated to decline 110-140 bps based on mix and
Slide 19: Fiscal 2017 Outlook Reconciliation to Non-GAAP
Fiscal 2017 Outlook Reconciliation to Non-GAAP NY School \” 6 Specialty. co The Company’s Adjusted EBITDA and Leveraged Free Cash Flow outlook for FY17 are non-GAAP measures. Reconciliations of these non-GAAP measures to the nearest GAAP financial measures are presented Low End of High End of Adjust
Slide 20: Safe Harbor Statement / Non-GAAP Financial Information
Safe Harbor Statement/ i ‘ . School Non-GAAP Financial Information ry 4 Specialty. 20 | Safe Harbor Statement ‘This presentation contains statements about School Specialty’s future financial condition, resutts of operations, expectations, plans, or prospects, including the Information underthe headi
Slide 21: Investor Contacts
OF scroa1. Investor Contacts: Ryan M. Bohr EVP & Chief Financial Officer 920-882-5868 [email protected] Glenn Wiener Investor Relations 212-786-6011 [email protected]