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| 8-K - FORM 8-K - Swisher Hygiene Inc. | d8k.htm |
 SWISHER
HYGIENE Company Overview
JANUARY 2011
13
th
ANNUAL ICR XCHANGE
Exhibit 99.1 |
 Forward-Looking Information
The presentation and financial information included in this presentation contain forecasts,
projections and other forward-looking information regarding Swisher Hygiene, its
business and prospects. This forward-looking information is based on
management assumptions and expectations, and 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
Registration
Statement
on
Form
10,
as
amended
to
date,
and
our
other
filings with the Securities and Exchange Commission ("SEC") available at
www.sec.gov. Swisher Hygiene undertakes no obligation to publicly revise these
forward-looking statements. 2 |
 –
Swisher Hygiene provides cleaning and sanitizing products and services to
commercial customers in North America and ten international markets
–
Our solutions are designed to promote superior cleanliness and sanitation
–
Our goal is to enhance safety, satisfaction and well-being of employees and
patrons
3
Who We Are
Focus on Hygiene |
 Corporate
Strengths Distinct Business Advantages Drive Success
Attractive Business Model
–
Solutions provider with full range of products and services
–
Recurring revenue business
–
Product line provides points of competitive differentiation
–
Nation-wide service capability
–
Low cost provider
–
Gross margins and route margins that are attractive
Established Brand Identity
–
Widely recognized as “hygiene experts”
–
Providing regular, ongoing service to more than 35,000
customers
–
Operating for more than 25 years
4 |
 Industry Itself
is Widely Followed –
Large, attractive, addressable market
–
Publicly traded competitors enjoy significant valuation multiples
–
Established patterns of consistent revenue and earnings growth
–
Industry economics generate significant earnings and cash flow
Business is Scalable
–National platform allows growth through corporate accounts and large distributors
–Heavy investment and integration cost to build national platform
is substantially
behind us
–Significant excess route capacity
–Corporate overhead is highly leverageable
and scalable
–Large number of tuck-in acquisitions available at reasonable EBITDA multiples
5
Corporate Strengths
Distinct Industry Characteristics Drive Success |
 H. Wayne
Huizenga – Chairman
Legendary entrepreneur, builder of four Fortune 500 companies:
–
Waste Management
–
AutoNation
–
Blockbuster Entertainment Group
–
Republic Services
Steve Berrard
–
CEO
–Co-CEO of AutoNation
–President and CEO of Blockbuster Entertainment Group
Thomas Byrne –
COO
–Vice-chairman of Blockbuster Entertainment Group
–Director of several leading consumer and business service firms
Thomas Aucamp
–
EVP
–Vice president of corporate development and strategic planning for Blockbuster
Entertainment Group
Jeffrey Rhodes –
SVP of Operations
–
Vice president of distributor sales and corporate accounts for JohnsonDiversey
Supported by a management, operations and sales organization with managers
and staff from leading national and regional chemical and facility service
providers
6
Corporate Strengths
Management Experiences Drive Success |
 Investment
and Emergence 2004 -
2011
7 |
 Swisher in
2004 Hygiene Services Franchisor
Franchised System
•
93 domestic franchisees
•
No company-owned locations
•
Regional coverage
8
Franchise
Company-Owned
No Service
No Service |
 LEGACY SWISHER
BUSINESS Restroom Services
Hygiene Expertise
Soap and Paper Products
National Infrastructure
2005 –
2009
Building a Unique Business Model
FACILITY SERVICE
Front-of-House Services
Rental Products
Route Model
CHEMICAL COMPANIES
Back-of-House Services
Chemical Expertise
Distributor Partnerships
9 |
 Expanded
Paper
Options
Soap
Conversion
& Dust
Control
Chemical
Launch
Laundry
Launch &
Chemical
Expansion
Chemical Expansion
with Corporate Account
Emphasis
2005
2006
2007
2008
2009/10
Five primary changes:
•Repurchased 90% of domestic
franchisees •Replaced all
management systems •Added
vans and upgraded facilities •Added industry experience •Expanded product line to front-of-house and
back-of-house
2005 –
2009
Building the Infrastructure
10 |
 2010
Going Public
•
Announced CoolBrands
International merger in August 2010, a TSX-listed
company
-
Provided the company with US$60 million in cash
-
Enabled Swisher to enter the public market
-
Transaction closed November 2010
•
Filed Form 10 and Form S-1 with SEC to become a U.S. reporting company
-
Intent
is
to
list
shares
on
a
U.S.
exchange
•
Began making strategic acquisitions in key markets:
-
Toronto
-
Florida
-
Calgary
-
Pacific Northwest
-
Edmonton
-
Great Plains
-
Vancouver
•
Expanded distributor relationships with strategic partnerships
-
Cheney
Brothers,
11
largest
US
foodservice
distributor
11
th |
 Swisher in
2011 Full Service Solutions Provider
Company System
–
68 company branches
–
11 franchisees
–
Weekly service coverage to
90% of US population
–
Licensees in 10 countries
12
Franchise
Company-Owned
No Service
No Service |
 Today and
Tomorrow Swisher’s Corporate Position Now and Moving Forward
13 |
 Average savings of 20%
Ongoing expert service
Flexible scheduling
Multiple delivery options Extensive training
Chemical Program
Full Product Range with Frequent Service
Warewashing
•Detergents, sanitizers
and related chemicals
•Formulations for
automatic and manual
systems
•Machines available
for purchase, rental or
lease
Cleaning
Chemicals
•Full selection
•Value-priced
•Highly efficient
•Available as ready-to-
use and as
concentrates
Hand Care
•Offering Purell®
and
custom branded
formulations
•Products available for
foodservice environments
and general surface use
•Personal protection
products available
Laundry
•Detergents, softeners
and related products
•Formulations for
commercial and
residential-style
machines
Specialty
•Broad range of
products
•Formulations for
specific use in
industrial, automotive,
healthcare, institutional
and other settings
14 |
 Facility
Service Program Focused on Rental and Service
Germicide Mist
& Odor Control
•Powerful odor control
systems
•Full-facility misting of
all surfaces
•Use of proven
disinfectant
•Kill wide range of
contamination
Hygiene
Service
•Highly trained
technicians
•Proprietary
techniques •Weekly
service •Personal
attention Paper
Products
•Premium and
economy products
•Hand towels
•Toilet tissue
•Wipers
•Attractive, rugged
dispensers
Power Washing
•High power
sanitizing
•Floor-to-ceiling
treatment
•Address key touch
points
•Restore facilities to
outstanding condition
Mat, Mop and
Towel Service
•Carpet, scraper and
logo mats
•Mops and frames
•Bar towels, aprons and
related products
•Guaranteed service
and outstanding pricing
15
Weekly expert service
Customized fulfillment
First-quality products
Low, consistent pricing |
 Our
Differentiation Comprehensive Range of Products
16
Restroom Hygiene Service
Germicidal Misting
Power Washing
Paper Program
Hand Care Program
Dust Control Programs
Bar Towels & Aprons
Cleaning Chemicals
Warewashing
Program
Laundry Program
Green Soap, Paper & Chemicals
Specialty Chemicals
Product/Service
Uniform Co.
Chemical Co.
Swisher |
 Customer
Mix Broad Range of Industries
17 |
 Customer
Examples What Full Service Means
Major Cruise Line
Regional Foodservice
Chain
Weekly service to growing
regional restaurant chain
–
Foodservice chemicals
–
Cleaning chemicals
–
Dish machines
–
Water filtration
–
Hand care
–
Hygiene and power-washing svc.
Weekly service to major cruise
line with ships across the globe
–
Foodservice chemicals
–
Housekeeping chemicals
–
Laundry chemicals
–
Chemical and soap dispensing
equipment
–
Water filtration
18 |
 Significant
Potential The Right Market, Model and Method for Success
19 |
 Market
Size Large Addressable Market
Current Addressable U.S. &
Canadian Market -
$36.8 Billion
Commercial Cleaning
Chemical Market –
$17.9 Billion
Fragmented market with 2/3 split among retailers
and small independent chemical companies
20
* Primarily
through 3rd party distributors |
 Market
Drivers Long-term Market Growth
HYGIENE
FOOD SAFETY
ECONOMICS
•
Greater public
awareness
•
Media attention
•
Internet increases
immediacy
•
Increased legislation
•
Frequent outbreaks
•
Susceptible food
supply
•
Increased liability
•
Stricter food and
health codes
•
Broad economic
pressures
•
Ongoing cost
containment
•
Recession
•
Sustainability
21 |
 22
Nine Months 2010 vs. 2009
Returning to Revenue Growth, Investing
for Future Profits
US$ in millions
Nine months
ended Sept.
30, 2010
Nine months
ended Sept.
30, 2009
% change
Revenue
46.0
$
41.7
$
10%
Cost of Sales
16.9
16.3
4%
Gross Margin
29.1
25.4
15%
Route Expenses
9.9
9.2
8%
Route Margin
19.2
16.2
19%
SG&A
20.9
17.1
22%
Depr.& Amort.
3.4
3.7
-8%
Operating Loss
(5.1)
$
(4.6)
$
NM
(excl. merger-related exp.)
EBITDA
(1.7)
$
(0.9)
$
NM |
 Growth
Potential Strategies for Consistent Growth
23
FIELD SALES
•Direct and with distribution
partners
•Partnership with Bunzl USA,
$8 billion re-distributor
•Targeted to leverage excess
local route capacity
CORPORATE ACCOUNTS
•Dedicated team with prior
industry experience
•Significant pipeline of multi- unit prospects and tests
•Drives national and regional
volume
CURRENT CUSTOMERS
•Opportunity to triple revenue
per customer
•Drives revenue per route
ACQUISITIONS
•Highly fragmented market
with hundreds of
opportunities
•Reasonable acquisition
multiples
•Synergies in purchasing,
routing and office expenses |
 Growth
Strategy In International Markets
24
Significant opportunity also exists for growth in worldwide markets
|
 Summary
Strong Foundation for Success
–
Attractive business model
–
Sustainable competitive difference
–
Not dependent on a single product line
–
Fixed costs already in place
–
Widely followed industry
–
Established brand
–
Large growing market which allows for:
–
Significant revenue and earnings growth
–
Considerable number of tuck-in acquisitions
–
Continual leverage of existing infrastructure
increases margins
–
Target route margins above 45%
–
Target EBITDA margins of 15%
–
Proven management team
25 |