Investment Highlights
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Transcript of Investment Highlights
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Tandy Brands AccessoriesTandy Brands Accessoriesis a Designer, Manufacturer and is a Designer, Manufacturer and Marketer of Fashion Accessories Marketer of Fashion Accessories
for Men, Women and Childrenfor Men, Women and Children
Tandy Brands AccessoriesTandy Brands Accessoriesis a Designer, Manufacturer and is a Designer, Manufacturer and Marketer of Fashion Accessories Marketer of Fashion Accessories
for Men, Women and Childrenfor Men, Women and Children
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Investment HighlightsInvestment Highlights
Market Leader in a Fragmented IndustryMarket Leader in a Fragmented Industry National and Diverse Brand PortfolioNational and Diverse Brand Portfolio Compelling Growth OpportunitiesCompelling Growth Opportunities
– Strong Historic Growth Rate: 13-year Compounded Strong Historic Growth Rate: 13-year Compounded Annual Growth Rate of 17%Annual Growth Rate of 17%
Aggressive MarketingAggressive Marketing Strong, Stable Customer RelationshipsStrong, Stable Customer Relationships Strong Balance Sheet and Cash Flow Strong Balance Sheet and Cash Flow
GenerationGeneration Experienced Management TeamExperienced Management Team
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Solid Sales GrowthThrough internal growth and acquisitions, TBAC has expanded into a leadership position within the fashion accessory industry. CAGR 17.19% over last 13 years.
Through internal growth and acquisitions, TBAC has expanded into a leadership position within the fashion accessory industry. CAGR 17.19% over last 13 years.
$27.4$27.4 $36.2$36.2$50.4$50.4
$68.6$68.6$83.9$83.9 $86.8$86.8
$102.6$102.6
$135.0$135.0
$178.4$178.4$187.7$187.7 $195.8$195.8
$205.8$205.8$224.5$224.5
19911991 19921992 19931993 19941994 19951995 19961996 19971997 19981998 19991999 20002000 20012001 20022002 20032003 20042004
$215.4$215.4
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FacilitiesFacilitiesArlington, TexasArlington, Texas
Yoakum, TexasToronto, CanadaYoakum, TexasToronto, Canada
Yoakum, TexasDallas, TexasWest Bend, WisconsinToronto, Canada
Yoakum, TexasDallas, TexasWest Bend, WisconsinToronto, Canada
Arlington, TexasToronto, CanadaNew York, New YorkSan Francisco, CaliforniaHong Kong, ChinaNew Orleans, Louisiana
Arlington, TexasToronto, CanadaNew York, New YorkSan Francisco, CaliforniaHong Kong, ChinaNew Orleans, Louisiana
Arlington, TexasNew York, New York (2)Toronto, CanadaBentonville, ArkansasHong Kong, China
Arlington, TexasNew York, New York (2)Toronto, CanadaBentonville, ArkansasHong Kong, China
ManufacturingManufacturing
DistributionDistribution
Merchandising OfficesMerchandising Offices
ShowroomsShowrooms
Corporate HeadquartersCorporate HeadquartersCanada
United States
China
Canada
United States
China
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SourcingSourcingTandy Brands Accessories, Inc. operates two belt manufacturing facilities: One in Yoakum, Texas, andanother in Toronto, Canada. The balance of the corporations’ finished goods are imported from a wide variety of global sources in Asia, South America, Europe and India.
Tandy Brands Accessories, Inc. operates two belt manufacturing facilities: One in Yoakum, Texas, andanother in Toronto, Canada. The balance of the corporations’ finished goods are imported from a wide variety of global sources in Asia, South America, Europe and India.
IndiaIndia
AsiaAsia
SouthAmericaSouth
America
EuropeEurope
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Retail DistributionRetail DistributionTBA’s strategic objective of “across the board” selling has resulted in the successful placement of TBA fashion products into nearly every type and size of retail operation including:
TBA’s strategic objective of “across the board” selling has resulted in the successful placement of TBA fashion products into nearly every type and size of retail operation including:
E-Commerce WebsiteE-Commerce Website
Specialty ChainsSpecialty Chains
National ChainsNational Chains
Military ExchangesMilitary Exchanges
Off-Price StoresOff-Price Stores
Outlet StoresOutlet Stores
Mass MerchantsMass Merchants
Golf Pro ShopsGolf Pro Shops
Office SupplyOffice Supply
Wholesale ClubsWholesale Clubs
Drug StoresDrug Stores
Shoe StoresShoe Stores
TV ShoppingTV Shopping
CatalogsCatalogs
Uniform StoresUniform Stores
Ind. Specialty StoresInd. Specialty Stores
SupermarketsSupermarkets
Sporting GoodsSporting Goods
Department StoresDepartment Stores
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Total SalesTotal Sales
$215.4 Million in Fiscal 2004$215.4 Million in Fiscal 2004
52.7% 52.7% 47.3% 47.3%
Men'sMen's Women'sWomen's
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$10.4 $10.4 MilMil
$6.8 Mil$6.8 Mil $18.3 Mil$18.3 Mil$17.0 Mil$17.0 Mil
$45.3 Mil$45.3 Mil
$117.6 Mil$117.6 Mil
BeltsBelts54.654.6%%
OtherOther4.8%4.8% HandbagsHandbags
8.4%8.4%
SocksSocks7.9%7.9%
Small LeatherSmall LeatherGoodsGoods21.1%21.1%
ColdColdWeatherWeather
3.2%3.2%
Fiscal 2004Product Line Sales
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Fiscal 2004Product Line SalesMen’s and Women’s Comparison ($215.4 Million)Men’s and Women’s Comparison ($215.4 Million)
Small LeatherSmall LeatherGoodsGoods
16%16%
OtherOther7%7%
BeltsBelts77%77%
Small LeatherSmall LeatherGoodsGoods
27%27%HandbagsHandbags
18%18%
BeltsBelts30%30%
SocksSocks17%17%
ColdColdWeatherWeather
6%6%
OtherOther2%2%
Women’s 47.3% Women’s 47.3% ($101.8 Mil.)($101.8 Mil.)
Men’s 52.7%Men’s 52.7%
($113.6 Mil.)($113.6 Mil.)
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TBA’s Key Retail PartnersTBA’s Key Retail Partners
Independent Specialty & Golf Pro ShopsIndependent Specialty & Golf Pro Shops
Mass MerchantsMass MerchantsNational ChainsNational ChainsDepartment StoresDepartment Stores SearsSears
(U.S. & Canada)(U.S. & Canada) JCPenneyJCPenney
(U.S. & Mexico)(U.S. & Mexico) Mervyn’sMervyn’s AAFESAAFES StructureStructure Stein MartStein Mart TJ MaxxTJ Maxx Marshall’sMarshall’s Men’s WearhouseMen’s Wearhouse Moores (Canada)Moores (Canada)
WalWalMartMart(U.S., Canada & (U.S., Canada & Mexico)Mexico)
TargetTarget ShopKo/PamidaShopKo/Pamida MeijerMeijer Fred MeyerFred Meyer ZellersZellers
(Canada)(Canada)
7,000+Accounts7,000+Accounts
NordstromNordstrom Dillard’sDillard’s May Co.May Co. Federated/Macy’sFederated/Macy’s BelkBelk Saks, Inc.Saks, Inc. Dayton HudsonDayton Hudson Kohl’sKohl’s StageStage Boscov’sBoscov’s Gottschalk’sGottschalk’s Bon-TonBon-Ton The Bay (Canada)The Bay (Canada)
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Sales and ServiceSales and Service
Sales
Service
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Growth PotentialGrowth Potential
BeltsPersonal Leather GoodsBeltsPersonal Leather Goods $420$420
290290$420$420
290290
Men’s & Boys’Men’s & Boys’
Women’sWomen’s
Estimates of accessory industry size in wholesale dollars.(In millions)Estimates of accessory industry size in wholesale dollars.(In millions)
* Does not include Canada* Does not include Canada
BeltsPersonal Leather GoodsHandbagsHats/Hair Access/SocksCold Weather
BeltsPersonal Leather GoodsHandbagsHats/Hair Access/SocksCold Weather
340340305305
2,2002,200532532226226
$4,333$4,333
340340305305
2,2002,200532532226226
$4,333$4,333 ****
TBAC Market Share
TBAC Market Share
20%20%9%9%
20%20%9%9%
9%9%9%9%1%1%4%4%3%3%
9%9%9%9%1%1%4%4%3%3%
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Fiscal 2004 Brand SalesFiscal 2004 Brand Sales
ProprietaryBrands34.4%
ProprietaryBrands34.4%
LicensedBrands
8.1%
LicensedBrands
8.1%
Private Label Brands57.5%
Private Label Brands57.5%
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Fiscal 2004 SalesBy Distribution ChannelFiscal 2004 SalesBy Distribution Channel
Department Store28.6%
Department Store28.6%
Specialty Retail17.2%
Specialty Retail17.2%
Mass Merchant54.2%
Mass Merchant54.2%
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Brands by Retail SegmentBrands by Retail Segment
LicensedLicensedLicensedLicensed PrivatePrivatePrivatePrivateProprietaryProprietaryProprietaryProprietary
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