Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Swisher Hygiene Inc. | g27113e8vk.htm |
| EX-99.2 - EX-99.2 - Swisher Hygiene Inc. | g27113exv99w2.htm |
Exhibit 99.1
| e 2011 Annual Stockholder's MeetingMay 5, 2011 |
| Forward-Looking Information This presentation includes financial forecasts, projections and other forward-looking statements regarding Swisher Hygiene Inc., its business and prospects. This forward-looking information is based on management assumptions and expectations which, while considered reasonable by Swisher Hygiene and its management as of the date of this presentation, are subject to risks, uncertainties, and other factors that may cause actual results and performance to materially differ from results or performance expressed or implied by the forward-looking statements. A description of these factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on March 31, 2011 and in our other filings with the SEC, which are available at www.sec.gov. Swisher Hygiene undertakes no obligation to publicly revise the forward-looking statements presented, except as required by law. |
| Delivering Solutions Reaching Customers, Exceeding Expectations |
| FocusSolve our customer's hygiene and sanitation needsObjectiveBe a single source provider of essential hygiene and sanitation services and products to our customers through multiple distribution channelsStrategyRapid expansion of market share through acquisitions and organic growthExpectationsSignificant growth in earnings and to build a lasting franchise that maximizes shareholder value Who We Are Provider of Essential Hygiene and Sanitation Solutions |
| Attractive Business ModelEstablished Brand IdentityWidely Followed, Well Understood IndustriesA Business That is ScalableAvailability of and Access to CapitalSignificant Opportunities for AcquisitionsExperienced Management Team Our Strengths The Keys to our Success |
| Our Strengths Distinct Business Advantages Drive Success Attractive Business ModelFull range of products and servicesRecurring revenue Significant points of competitive differentiationNationwide service capabilityLow cost providerOpportunity for attractive marginsEstablished Brand IdentityWidely recognized as "hygiene experts"Operating for more than 25 yearsProviding regular, ongoing service to more than 50,000 commercial and 150,000 residential customers |
| Widely Followed, Well Understood IndustriesLarge and attractive addressable marketEstablished patterns of consistent growth in revenue, earnings and cash flowIndustry participants enjoy significant valuation premiumsA Business That is ScalableNationwide footprint allows for growth through corporate accounts and third-party distributionSignificant cost to build a national service platform is substantially completePositioned to take advantage of significant excess route capacityCorporate overhead is scalable Our Strengths Distinct Industry Characteristics Drive Success |
| Availability of and Access to Capital*Raised $195 million of equity in private placements Well known and respected Canadian and U.S. institutionsSignificant liquidityOver $165 million of cash on hand $100 million credit facility in placeWeighted average borrowing rate of 4.6%Shareholder equity in excess of $325 millionTotal debt to capital of less than 12%Common stock is an attractive source of currency for acquisition*As of April 30, 2011 Our Strengths Resources and Flexibility to Grow Effectively |
| Significant Opportunities for Acquisition In the U.S. we believe that there are over:3,400 chemical service providers2,000 linen and facility service providers38,000 waste collection companiesMany of these businesses are acquisition opportunities in new markets or tuck-ins for existing marketsWe believe these businesses can be acquired at reasonable valuationsGrowth through acquisitions allows us to attract entrepreneurs who can contribute to the rapid growth of a relationship-driven business Our Strengths Market share growth through acquisitions |
| Swisher TodayWhere We Stand Today |
| 2004 System Growth Consolidation and Expansion since 2004 Franchise 2004 2011 New Acquisition Company Owned ProClean Mount Hood |
| Facility Service Program Focused on Rental and Service Germicide Mist & Odor ControlPowerful odor control systemsFull-facility misting of all surfacesUse of proven disinfectantKill wide range of contamination Hygiene ServiceHighly trained techniciansProprietary techniquesWeekly servicePersonal attention Paper ProductsPremium and economy products Hand towelsToilet tissueWipersAttractive, rugged dispensers Power WashingHigh power sanitizingFloor-to-ceiling treatmentAddress key touch pointsRestore facilities to outstanding condition Mat, Mop and Towel ServiceCarpet, scraper and logo matsMops and framesBar towels, aprons and related productsGuaranteed service and outstanding pricing Weekly expert service ^ Customized fulfillment ^ High-quality products ^ Low, consistent pricing |
| Average savings of 20% ^ Ongoing expert service ^ Flexible scheduling ^ Multiple delivery options ^ Extensive training Chemical Program Full Product Range with Frequent Service WarewashingDetergents, sanitizers and related chemicalsFormulations for automatic and manual systemsMachines available for purchase, rent or lease Water filtration systems Cleaning ChemicalsFull selection Value-pricedHighly efficientAvailable as ready-to- use and as concentrates Hand CarePurell(r) and custom branded formulationsProducts available for foodservice environments and general surface usePersonal protection products available LaundryDetergents, softeners and related productsFormulations for commercial and residential-style machines SpecialtyBroad range of productsFormulations for specific use in industrial, automotive, healthcare, institutional and other settings |
| Eco-Friendly Leader^ 24/7 Collection and Disposal ^Multiple Facilities ^ Total Market Coverage ^Commercial & Residential Environmental Programs Full Range of Sanitation Solutions RecyclingMaterial Recovery FacilitiesProviding reclaimed material to manufacturersProcessing paper, cardboard, aluminum, steel, plastic, glass Waste CollectionCommercial and residential collectionFull range of containersFlexible service to meet specific demand Compactors35 and 40 yard compactors availableReduce high volume of waste significantlyIdeal for multi-unit residences, hospitals, malls, markets, etc. Portable SanitationFull-service solutionIncludes placement, disposal and managementIdeal for work sites, events, etc.Small and large temp septic tanks available RolloffTemp and permanent open top dumpsters20, 30 and 40 yard units availableIdeal for construction projects, demolition, remodels, events, short-term needs |
| Our Differentiation Comprehensive Range of Products Product/Service Uniform Co. Chemical Co. Waste Co. Swisher Restroom Hygiene Service Germicidal Misting Power Washing Paper Program Hand Care Program Dust Control Programs Mat, Bar Towels & Aprons Cleaning Chemicals Warewashing Program Laundry Program Green Soap, Paper & Chemicals Specialty Chemicals Waste Collection |
| Full Coverage Door-to-Dumpster Opportunity RESTROOMCleaning ChemicalsWeekly Sanitizing ServicePressure WashingGermicidal MistingRestroom SoapRestroom PaperOdor Control KITCHENDish MachinesKitchen ChemicalsDrainline TreatmentDisposable GlovesFloor MatsFRONT OF HOUSEHand SanitizerFloor Treatment Foodservice WipersLAUNDRYLaundry ProductsWASTEWaste Management 1 2 3 4 5 6 7 14 9 10 11 12 13 8 15 16 17 17 Sample Hospitality Customer Floorplan 1 2 3 4 5 6 7 14 9 10 11 12 13 8 13 13 13 13 12 12 12 12 12 12 12 14 14 15 15 13 16 10 1 4 1 1 1 1 |
| Commercial Cleaning Chemical Market - $17.9 Billion Our Market Opportunity Over $92 Billion of Addressable Opportunity Current Addressable U.S. & Canadian Market - $92.8 Billion (CHART) * Primarily through 3rd party distributors Source: Kline Consulting, Textile Rental Services Association and various other industry publications and public competitor filings. |
| Core Growth Opportunities Strategies for Consistent Growth FIELD SALESDirect and with distribution partnersTargeted to leverage excess local route capacity CORPORATE ACCOUNTSSignificant industry experienceSignificant pipeline of prospects and on-going tests CURRENT CUSTOMERSOpportunity to significantly increase revenue per customerDrives revenue per route ACQUISITIONSSignificant number of acquisition opportunitiesRelated, add-on services Synergies in purchasing, routing and office expenses |
| International Opportunity Largely Untapped Significant opportunity also exists for growth in worldwide markets United States Canada Mexico United Kingdom Ireland Portugal Netherlands China Singapore Korea Hong Kong Macau Taiwan Philippines New Zealand |
| Recent Transactions ProClean Inc. Headquarters in PhoenixEstablished in 1976 Strong and well-respected management team led by:Founder and President Richard Chiate Executive Vice President Mark LeBrun Over a century of experience in the hygiene and chemical industryServes over 5,000 commercial customersOperates in Arizona, Southern California, Nevada, New Mexico and West Texas Complete range of specialty chemicals and service programsManufactures over 100 items for the hospitality and foodservice industries |
| Recent Transactions Mount Hood Inc. Headquarters in Mount Hood, OregonEstablished in 1903 Strong and well-respected management team led by:Owner and President Tom Mulfler Executive Vice President Mike MulflerOver 50 years of experience in the hygiene and chemical industryServes more than 4,000 commercial customersOperates in Oregon, Washington, Northern California, Idaho, Utah and ColoradoComplete range of specialty chemicals and service programs85,000 square foot manufacturing plant |
| Recent Transactions ProClean and Mount Hood Both companies are highly respected and are the largest independent chemical provider in the U.S.Approximately $44 million in combined revenueMore than 9,000 customers Strong and well-respected management team with more than 150 years experienceMore than 200 experienced and knowledgeable employeesProvides significant expansion of chemical coverage across the Western U.S. and Canada Arizona - Idaho - Oregon British Columbia - Montana - Texas California - Nevada - Utah Colorado - New Mexico - Washington |
| Recent Transactions ProClean and Mount Hood Enhance corporate account references Solidify and further expand our service capabilitiesManufacturing facilities in Arizona and PortlandProvide a significant entry into the manufacturing of chemical products for our customers Will lower our cost of products throughout the Western U.S. Combination will provide significant synergies to Swisher's existing business |
| Annual Run Rate Revenue Currently Exceeds $235 MillionRun rate revenue is defined as March revenue annualized plus the expected annual revenue from acquisitions made in May Reported Revenue for 2011 is expected to exceed $200 million or a 280% increase over 2010 Run rate revenue will continue to grow as new business is added and acquisitions continueOur Targeted Potential Range of Performance Metrics for 2nd half of 2011 and 2012 are:Gross Margins 63% to 66%Route Margins 43% to 46%EBITDA Margins 10% to 18% Looking Forward Providing Preliminary Guidance Going Forward |
| (CHART) Revenue Run Rate Increasing Steadily Since December 31, 2011 $ in millions 2010 Actual Revenue December 2010Run Rate 2011 EstimatedRealized Revenue April 2011 Run Rate(Includes acquisitionsthrough May 5, 2011) 2011 PotentialRun Rate |
| Summary Strong Foundation for Success Attractive business modelSustainable competitive differenceNot dependent on a single product lineCompetitive differentiationAbility to drive organic growth by accessing a growing customer baseBroad offering of essential hygiene and sanitation products and servicesLarge, growing market which allows for:Significant revenue and earnings growthConsiderable number of acquisition opportunitiesLeverage of existing infrastructure will begin to increase marginsTarget route margins in excess of 45% Target EBITDA margins at or above 18%Experienced management team Significant depth of industry knowledge and experienceConsiderable experience consolidating fragmented industries |
| Recognizable Strength Powerful, Appealing Brand on Roads Every Day |
| 28 Questions and Comments |
| e 2011 Annual Stockholder's MeetingMay 5, 2011 |