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| 8-K - CURRENT REPORT [TO COME] - Swisher Hygiene Inc. | swsh_8k.htm |
EXHIBIT 99.1
1
SWISHER HYGIENE
Annual Shareholders’ Meeting
June 5, 2013
2
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, 2012, filed with the Securities and
Exchange Commission ("SEC") on May 1, 2013, and in our other filings with the
SEC, which are available at www.sec.gov. Swisher Hygiene undertakes no
obligation to publicly update the forward-looking statements presented, except as
required by law.
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, 2012, filed with the Securities and
Exchange Commission ("SEC") on May 1, 2013, and in our other filings with the
SEC, which are available at www.sec.gov. Swisher Hygiene undertakes no
obligation to publicly update the forward-looking statements presented, except as
required by law.
3
» Tom Byrne . . . . . . . . .. . . President and Chief Executive Officer
» Tom Aucamp . . . . . . . . .EVP and Secretary
» Bill Nanovsky . . . . . . . SVP and Chief Financial Officer
» Tom LaMartina . . . . . . SVP, Sales and Service
» Blake Thompson .. . . SVP, Manufacturing and Supply Chain
» Amy Simpson . . . .. . . . VP, Investor Relations
SWISHER MANAGEMENT ATTENDEES
4
2012 IN REVIEW
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RESTATEMENT AND COMPLIANCE
Restatement had Significant Effect on 2012 Results
» Major investment of management time
» Significant accounting, legal and consulting costs, which
continued until we became a current filer in May 2013
and regained NASDAQ compliance with the holding of
this meeting
continued until we became a current filer in May 2013
and regained NASDAQ compliance with the holding of
this meeting
» Lost revenue and accounting costs offset benefits from
expense reductions
expense reductions
» Delayed implementation of some elements of four point
plan
plan
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BUT WE DID NOT SIT STILL
Laid the Foundation for 2013 and Future Initiatives
» Key additions to management team
» Implementation of operation and financial initiatives
» Handheld route technology
» Consolidation of multiple databases
» Integration of tuck-in acquisitions
» Shift to internal manufacturing
» Initial expense reductions
» Sale of waste operations
» Ended the year with strong balance sheet
7
BUSINESS MODEL
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SWISHER AT-A-GLANCE
Key Differentiators to Build Around
» Leading provider of essential hygiene and sanitizing
solutions
solutions
» National chemical service footprint
» 50,000 customers and 800 distributors
» Strategic manufacturing plant locations
» $230 million of 2012 revenue
» Leverageable route network
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CORE SOLUTIONS
We Deliver Clean
CHEMICAL
»General Cleaning
»Warewashing
»Laundry
»Specialty
HYGIENE
»Restroom Care
»Hand Hygiene
»Paper Products
»Air Care
FACILITY SERVICES
»Water Filtration
»Drainline Treatment
»Bar Towels and Aprons
»Floor Mats and Mops
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BUSINESS MODEL
Leveraging Account Relationship and Delivery Options
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» Products that are critical to our
customers
customers
» $35 billion market opportunity
» Scalable structure with significant
leverage from incremental revenue
leverage from incremental revenue
» Recurring revenue
» Key differentiators in place to generate
ongoing organic growth and profitability
ongoing organic growth and profitability
BUSINESS MODEL AND POSITION
Secured Strong Position in Core Chemical Market
Source: Kline Consulting, Textile Rental
Services Association and various other industry
publications and public competitor filings.
Services Association and various other industry
publications and public competitor filings.
North America Market
12
OPERATIONAL PLAN
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» Enhance customer service and satisfaction
» Strengthen the team
» Simplify and standardize the business model
» Operational simplification
» Supply chain rationalization
» Financial process improvement
» Brand and product enhancement
» Balanced sales strategy
FOUR POINT PLAN
Keys to Maximizing Customer Satisfaction, Growth and Profitability
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IMPACT OF THE PLAN
2012 Initiatives Provided Basis for Continued Progress
» Sustainable organic revenue growth
» $10 million of 2013 annualized expense savings, starting primarily
in 2nd half of the year
in 2nd half of the year
» $5 million annualized expense savings starting in 1st half 2014
Brand
Consolidation
Internal
Manufacturing
Manufacturing
Acquisition
Integration
Database
Consolidation
Handheld
Deployment
15
OPERATIONAL SIMPLIFICATION
Consolidating Service and Support Infrastructure
PREVIOUS DELIVERY METHOD
Swisher Plant to Branches to Customer
Swisher Plant to Branches to Customer
NEW & SIMPLE
Delivery Method
OPERATING MODELS
OPERATING
MODEL
» 35% reduction in square footage in 2013 and 2014
» SG&A reduction in Q3 2013 through Q1 2014
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» 20-30% reduction in
miles driven
miles driven
» 10-20% increase in
revenue per service
employee
revenue per service
employee
» Improved inventory
control
control
» Route expense
reduction in Q3’13
through Q2’14
reduction in Q3’13
through Q2’14
SUPPLY CHAIN RATIONALIZATION
Route Consolidations Reduce Costs and Increase Customer Contact
Before
After
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SUPPLY CHAIN RATIONALIZATION
Plant Consolidations Reduce Multiple Costs
» Improves speed and flexibility
» 20-30% reduction in plant
inventories
inventories
» 70% current plant capacity
available
available
» Cost of Sales reduction in Q3’13
through Q1’14
through Q1’14
Transition from 8 to 5 plants
Transition from 50+ to 2 brands
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BRAND & PRODUCT ENHANCEMENT
Elevating our Brand and Product Offering
» Increases awareness
» Strengthens price flexibility
» Reduces costs through brand consolidation
» Streamlines product offering
Brand Enhancement
Product Innovation
Sales Support
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BALANCED SALES STRATEGY
Finding the Best Mix of Upsells, Field Sales and Multi-unit Sales
Focus All products & services to key market segments
Target Distributor relationships, corporate sourced
agreements and large independents
Focus All products & services to key market segments
Target Corporate relationships within all GPO’s and
multi-unit chains
Account
Manager
Focus All products and service offering
Target Current Swisher customer
Focus Hygiene and facility service offering
Target Current Swisher customer
Hygiene
Specialist
Field
Sales
Corporate
Accounts
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Upselling a Wide Range of Needed Products and Services
BALANCED SALES STRATEGY
Food Safety Treatment
Water Filtration
Aprons & Chef Wear
Floor Care
Restroom Sanitation
Bathroom Cleaners
Floor Mats & Mops
Dish Machine Products
Pot & Pan Detergents
Warewash Equipment
Specialty Products
Drainline Treatment
All-Purpose Cleaners
Carpet Care Products
Paper Products
Hand Hygiene
On-Premise Laundry
Food Safety Labeling
Food Safety
Odor Control & Misting
Degreasers
Deep Cleaning
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GPOs and Distributors to Accelerate New Account Sales
BALANCED SALES STRATEGY
$ MILLIONS
FOODSERVICE
HEALTHCARE
HOSPITALITY
RETAIL
Penetration of Current Relationships
Opportunities Cross Multiple Verticals
Current Revenue
Potential Revenue
22
LOOKING AHEAD
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2013 STRATEGY AND TACTICS
Focus on Chemicals and Hygiene
» Focus on core chemical and hygiene operations
» Continue to aggressively implement four point plan
» Increase sales through combination of customer upsell and
balanced mix of new sales
balanced mix of new sales
» Reduce expenses through standardization, simplification and cost
eliminations
eliminations
» Partner with leading providers to offer additional critical
services
services
» Measured expansion into other chemical segments
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IMPACT OF PLAN ON FUTURE RESULTS
Recap of Current Targets
» Sequential revenue growth beginning in 2013
» Reduction in both investigation and review-related
expenses and other professional fees in 2nd quarter of
2013
expenses and other professional fees in 2nd quarter of
2013
» Significant expense reductions beginning in 3rd quarter
of 2013
of 2013
» Positive operating cash flow beginning in 3rd quarter of
2013
2013
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CONCLUSION
The Opportunity is Bigger Today Than Originally Envisioned
» Large industry with attractive business characteristics
and demand still exists for an alternative chemical
provider
and demand still exists for an alternative chemical
provider
» Focus will be on leveraging unique position within the
hygiene and chemical portion of our $35 billion market
hygiene and chemical portion of our $35 billion market
» Team is executing on four point game plan to enhance
service, increase revenue and decrease expenses
service, increase revenue and decrease expenses
» Investors will begin to see the results of our efforts in the
coming months
coming months
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CONTACT INFORMATION:
SWISHER INVESTOR SERVICES
(704) 602-7116
INVESTORRELATIONS@SWSH.COM
SWISHER INVESTOR SERVICES
(704) 602-7116
INVESTORRELATIONS@SWSH.COM