Fgi Industries Ltd. · NASDAQ:FGI
Fgi Industries — Q1 2022 Earnings Presentation
18 slides from Fgi Industries's earnings presentation, 2022
Slide 1: FGI
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 condi tion. These st
Slide 3: FGI Industries at a Glance
FGI INDUSTRIES AT A GLANCE FGI is a leading “B-to-B” global supplier of Kitchen & Bath products with a reputation for Innovation, Quality & Service developed over 30 years in conjunction with our parent company, Foremost Groups Ltd. | TICKER: FGI | $180MM+ REVENUE BUSINESS IPO in January 2022 35% re
Slide 4: Company Overview
COMPANY OVERVIEW SANITARYWARE - 61% REPAI R/REMODEL - ~80% (T O IL E T S & S E A T S, S IN KS & P E DE S T A L S ) NEW C O NST RUCT ION - ~20% BATH FURNI TURE - 30% (V A N IT IE S , MIR R O R S , C A BIN E T S ) OTHER - 9% (C U S T O M KIT C H E N C A BIN E T R Y, S H O WE R DO O R S /WA L L S ) USA
Slide 5: Repair and Remodel Markets Provide Stable Growth
REPAIR AND REMODEL MARKETS PROVIDE STABLE GROWTH CONSISTENT YEAR-OVER-YEAR GROWTH IN EXPENDITURES FOR IMPROVEMENTS AND REPAIRS ARE EXPECTED TO GROW R&R OUTSIDE OF EXTREME RECESSIONS YEARS THROUGHOUT 2022 AND INTO EARLY NEXT YEAR Leading Indicator of Remodeling Activity HISTORICAL R&R GROWTH First Qu
Slide 6: Key Drivers of Long-Term Shareholder Value
KEY DRIVERS OF LONG-TERM SHAREHOLDER VALUE • Re-invest in core businesses with evergreen expansion • Grow Brands, Product opportunities categories and sales Channels • Selective bolt-on acquisitions • Focus on higher incremental margin • Excess free cashflow for sales opportunities LONG-TERM VALUE d
Slide 7: Financial Overview and First Quarter Highlights
FINANCIAL OVERVIEW AND FIRST QUARTER HIGHLIGHTS 7
Slide 8: Business Highlights – 1Q22
BUSINESS HIGHLIGHTS – 1Q22 Strong Revenue • First quarter revenues increased 20% to $43.6 million, primarily driven by growth in both Sanitaryware and Growth Other product categories, partially offset by declines in Bath Furniture Operating • Operating income for the first quarter was $0.7 million,
Slide 9: 1Q22 Consolidated Financial Results
1Q22 CONSOLIDATED FINANCIAL RESULTS Total Revenue Gross Profit $MM $MM • Total revenue increased 19.8% during the $189.1 $32.4 first quarter driven by 3% volume growth $29.7 and 17% benefit from price/mix. $143.5 • Gross profit increased 2.8% to $7.5 million, primarily driven by sales growth, which
Slide 10: Current Global Supply Chain Pressures
CURRENT GLOBAL SUPPLY CHAIN PRESSURES | Global transit times and container shipping prices have faced unprecedented pressures in 2021 and 2022 (COVID-19 in factories, shipping delays, etc) | Discussions with freight forwarders and logistics firms indicate these pressures will continue throughout 202
Slide 11: 1Q22 Business Line Results
1Q22 BUSINESS LINE RESULTS Sanitaryware Revenue Bath Furniture Revenue Other Revenue $MM $MM $MM $111.3 $55.1 $15.5 $88.4 $38.2 $8.2 $5.3 $28.2 $22.8 $11.5 $10.1 $2.1 1Q21 1Q22 2020 2021 1Q21 1Q22 2020 2021 1Q21 1Q22 2020 2021 • Sanitaryware revenue was $28.2 • Bath Furniture revenue was • Other rev
Slide 12: Financial Outlook
FINANCIAL OUTLOOK 2022 Financial Outlook Revenue Operating Income Net Income $182 – 189 million $6.5 – 7.5 million $5.0 – 6.0 million 12
Slide 13: Key Investment Characteristics
KEY INVESTMENT CHARACTERISTI CS TRUSTED GLOBAL STRONG ORGANIC ENHANCED “SPIN-OFF” VALUE-ACCRETIVE STRONG SUPPLIER GROWTH PROFITABILITY BOLT-ONS SHAREHOLDER ALIGNMENT We are global, diversified, and We pursue a “BPC” strategy: As a carve-out division from a We will engage in selective High insider ow
Slide 14: Appendix
BPP OOK 14 APPENDIX
Slide 15: Financial Summary
FINANCIAL SUMMARY (USD) 2019 2020 2021 1Q21 1Q22 REVENUES 126,282,212 134,827,701 181,943,027 36,375,689 43,575,239 GROSS PROFIT 25,439,069 28,404,640 32,202,408 7,317,031 7,524,586 GROSS MARGIN 20.14% 21.07% 17.70% 20.12% 17.27% SELLING AND DISTRIBUTION 14,917,601 15,487,306 17,636,820 3,940,470 4,
Slide 16: Financial Summary (continued)
FINANCIAL SUMMARY (continued) USE OF NON-GAAP FINANCIAL MEASURES In assessing the performance of our business, management utilizes a variety of financial and performance measures to assess our business performance, including to evaluate our ability to convert earnings from our operational performanc
Slide 17: Financial Summary (continued)
FINANCIAL SUMMARY (continued) The following tables reconcile these non-GAAP numbers to their most directly comparable GAAP measures: For the Quarter Ended 31-Mar-21 31-Mar-22 Income from operations 1,883,771 690,746 Non-recurring IPO-related compensation and -- 232,312 stock-based compensation expen
Slide 18: FGI