consumer and retail industry update - harris williams & co. · 02/24/12 abercrombie & fitch...
TRANSCRIPT
www.harriswilliams.com
Member FINRA/SIPC
Consumer and Retail
Industry Update March 2012
March 2012
For more information regarding our consumer experience, please contact Glenn Gurtcheff ([email protected]), Tim
Alexander ([email protected]), Jeff Cleveland ([email protected]), Ryan Budlong
([email protected]), or Brant Cash ([email protected]) at +1 (612) 359-2700.
• The New York Times reports that U.S. retail sales rose by 1.1 percent in February, which
represents their largest gain in five months. “In the latest sign of improvement in the
American economy’s prolonged recovery from the 2007-2009 recession, sales rose 1.1
percent last month, the Commerce Department said on Tuesday, after a 0.6 percent increase
in January.” Read the article here.
• Apollo Global Management and Great Wolf Resorts announced on March 13th that they
have entered into a definitive merger agreement. “Apollo, a leading global asset manager,
will acquire Great Wolf, North America’s largest family of indoor waterpark resorts, for
approximately $703 million, including the assumption of the Company’s outstanding debt.”
Read the press release here.
• The Wall Street Journal reports that a mild winter resulted in stronger than expected retail
sales in February. “Stores began displaying spring apparel during [February]—in many
cases with bright colors offering some freshness. Analysts said some shoppers used money
they didn't spend on apparel for a frigid winter that didn't come. The 18 retailers that report
same-store sales… showed 6.4% growth in February, when 4.8% was expected, according
to Thomson Reuters.” Read the article here.
Consumer and Retail
Industry Update
1 of 16
Richmond
Phone: +1 (804) 648-0072
Fax: +1 (804) 648-0073
Boston
Phone: +1 (617) 482-7501
Fax: +1 (617) 482-7503
Cleveland
Phone: +1 (216) 689-2400
Fax: +1 (216) 689-2401
London
Phone: +44 203 170 8838
Fax: +44 207 681 1907
Minneapolis
Phone: +1 (612) 359-2700
Fax: +1 (612) 359-2701
Philadelphia
Phone: +1 (267) 675-5900
Fax: +1 (267) 675-5901
San Francisco
Phone: +1 (415) 288-4260
Fax: +1 (415) 288-4269
Contacts
What We’ve
Been Reading
March 2012
Equity Trading
Overview
Key Trading
Statistics
(detail begins
on page 6)
Public
Company
Sector
Performance
(12-month %
change in
stock price)
Change in Stock Price
3 mos. 12 mos. Revenue EBITDA Revenue EBITDA
Consumer Products
Apparel & Footwear 35 $1,426 14.9% 3.1% 1.10x 9.7x 1.12x 8.5x
Automotive Products 13 2,252 18.8% 30.1% 0.55x 10.9x 0.51x 9.8x
Home & Office Furniture & Furnishings 14 730 15.9% (20.1%) 0.60x 8.8x 0.67x 7.0x
Household Products 11 4,433 13.6% (3.7%) 1.29x 8.3x 1.28x 8.2x
Personal Care Products 17 1,933 10.8% 10.9% 1.42x 8.8x 1.51x 8.9x
Recreational & Leisure Products 21 377 26.5% 20.4% 0.88x 10.2x 0.99x 7.5x
Retail
Apparel & Footwear Retail 45 1,031 17.1% 1.1% 0.73x 7.0x 0.69x 6.1x
Catalog & Specialty Distribution 8 447 7.7% 0.2% 0.18x 7.5x 0.16x 5.7x
Department Chains 9 9,756 18.8% (3.0%) 0.64x 6.5x 0.65x 6.7x
Discount Stores & Mass Merchants 13 3,120 6.4% 4.4% 0.60x 7.7x 0.65x 7.5x
Furniture & Furnishings Retailers 14 1,121 18.9% 12.1% 0.95x 8.3x 0.93x 7.6x
Internet Retail 13 646 10.7% (19.7%) 1.43x 15.9x 1.17x 8.9x
Specialty & Other Retail 30 1,193 11.9% 2.1% 0.64x 8.4x 0.55x 7.7x
Consumer Products 111 $1,679 15.4% 7.0% 0.99x 9.3x 1.06x 8.4x
Retail 132 $1,121 11.9% 1.1% 0.64x 7.7x 0.65x 7.5x
Consumer & Retail Index 243 $1,193 14.9% 2.1% 0.73x 8.4x 0.69x 7.6x
SectorNumber of
Companies
Median
Enterprise
Value ($mm)
Median TEV/
Forward Mulitples
Median TEV/
LTM Multiples
2 of 16
Home & Office Furniture & Furnishings
Internet Retail
Household Products
Department Chains
Catalog & Specialty Distribution
Apparel & Footwear Retail
Specialty & Other Retail
Consumer & Retail Index
Apparel & Footwear
Discount Stores & Mass Merchants
S&P 500
Personal Care Products
Furniture & Furnishings Retailers
Recreational & Leisure Products
Automotive Products
(30.0%) (25.0%) (20.0%) (15.0%) (10.0%) (5.0%) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
March 2012
40
60
80
100
120
140
Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12
Ind
ex
Dow Jones U.S. Consumer Goods Index Dow Jones Retail Index S&P 500 Index
Recent Equity
Offerings
Equity Markets
Overview
Consumer
and Retail
Industry Stock
Performance
Close Date Filing Date Issuer Ticker
Transaction
Type
Gross Proceeds
($mm) Use of Funds
03/13/12 03/13/12 FleetCor Technologies Inc FLT Follow-On $219.0 General Corp. Purp.
03/02/12 02/28/12 TAL International Group Inc TAL Follow-On 109.3 General Corp. Purp.
02/16/12 12/15/10 Black Diamond Inc BDE Follow-On 58.1 General Corp. Purp. and
Reduce Indebtedness
02/07/12 11/18/10 Sally Beauty Holdings Inc SBH Follow-On 422.0 General Corp. Purp.
01/26/12 01/18/12 Francesca's Holdings Corp FRAN Follow-On 260.7 General Corp. Purp.
12/08/11 12/06/11 Express Inc EXPR Follow-On 368.0 General Corp. Purp.
12/06/11 11/23/11 Bankrate Inc RATE Follow-On 251.6 General Corp. Purp.
12/06/11 03/01/10 Dollar General Corp DG Follow-On 1,121.3 General Corp. Purp.
11/17/11 06/10/11 Mattress Firm Holding Corp MFRM IPO 105.6 General Corp. Purp.
10/19/11 05/24/11 Coldwater Creek Inc CWTR Follow-On 22.5 General Corp. Purp.
10/12/11 11/18/10 Sally Beauty Holdings Inc SBH Follow-On 346.7 General Corp. Purp.
09/15/11 09/02/11 RPX Corp RPXC Follow-On 70.7 General Corp. Purp.
09/13/11 10/05/09 ExlService Holdings Inc EXLS Follow-On 92.0 General Corp. Purp. and
Reduce Indebtedness
09/08/11 09/07/11 Dollar General Corp DG Follow-On 999.1 General Corp. Purp.
3 of 16
21.5%
34.7%
6.0%
March 2012
Announced Consumer Transactions Median Consumer Transaction Multiples
Consumer PEG Investments and Exits Median LTM Trading Multiples
Last 10 Deals Announced Quarterly Consumer M&A Activity
LTM Deal Statistics
Note: Transactions based on publicly available information
M&A
Overview
Announced
Consumer
and Retail
M&A
Consumer and
Retail M&A
Trends
Median LTM
Trading
Multiples and
Announced
Private Equity
M&A Activity
$84.9 $79.7
$22.1
$28.6 $29.6
$40.3
$5.5
0
50
100
150
200
250
300
350
400
450
500
$0
$20
$40
$60
$80
$100
2006 2007 2008 2009 2010 2011 2012 YTD
Nu
mb
er o
f Tra
nsa
ctio
ns_
_
Ag
greg
ate
Tra
nsa
cti
on
Valu
e (
$ in
bil
lio
ns)
Aggregate Deal Value # of deals
74
81
55
48 50
37
65
72 72
6156 56 54
64
46
55
14
26
15
11 9
4
6
95
1013 13
13
9
198
0
20
40
60
80
100
120
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Nu
mb
er o
f T
ra
nsa
cti
on
s__
PEG Acquirer Strategic Acquirer
11.2x 11.0x 10.3x
8.9x 8.4x
10.7x
9.2x
0.00x
0.25x
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
2006 2007 2008 2009 2010 2011 2012 YTD
EV
/ LT
M S
ale
s Mu
ltiple
__E
V / L
TM
EB
ITD
A M
ult
iple
__
EV / LTM EBITDA EV / LTM Sales
Announced Target Buyer
3/12/2012 Midas Inc. TBC Corporation
3/12/2012 Great Wolf Resorts Apollo Global Management
3/12/2012 WorldWide Wireless Everybody's Phone Co.
3/12/2012 Golf Card International Simmons Venture Group
3/10/2012 YTB International LTS Nutraceuticals
3/8/2012 New Tropicana Club The ONE Group
3/8/2012 John Varvatos Lion Capital LLP
3/7/2012 High Five Products BarrierSafe Solutions
3/7/2012 Real Real Expansion VC, LLC
3/6/2012 Zaldiva Cygnus Internet, Inc.
Aggregate Number Transaction Multiples
Value ($bn) of Deals EV / Revenue EV / EBITDA
$32.8 248 0.88x 10.2x
59
81
73
97
110
73
30
37
54
8
33
53 5459
71
49
27
59
53
11
0
20
40
60
80
100
120
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD
Nu
mb
er o
f In
ves
tmen
ts'
Number of Investments Number of Exits
4 of 16
1
(1) 1Q12 data is QTD.
10.2x
9.7x 9.9x 9.7x9.4x
8.6x
9.6x9.4x
8.9x
9.6x
10.2x 10.3x
8.3x
8.8x8.7x 8.8x
7.7x
6.4x
7.7x 7.9x8.2x 8.4x
8.9x
9.8x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
Med
ian
Tra
din
g M
ult
iple
s
Consumer Products Retail
March 2012
Date Effective Borrower Name Description Deal Amount Type Rating Spread
03/22/12 Tenneco Inc Motor vehicle parts and accessories $250,000,000 Term Loan A BB- / B1 250
03/22/12 Tenneco Inc Motor vehicle parts and accessories 700,000,000 Revolver/Line >= 1 Yr. BB- / B1 250
03/19/12 Pinnacle Entertainment Hotels and motels 250,000,000 Term Loan BB- / B1 N/A
03/13/12 Sleepy's LLC Furniture stores 170,000,000 Term Loan B NR / NR 600
03/07/12 BJ's Wholesale Club Misc. general merchandise stores 1,075,000,000 Term Loan B B+ / B1 400
03/07/12 Centaur Gaming Amusement and recreation 10,000,000 Revolver/Line >= 1 Yr. NR / NR 575
03/07/12 Centaur Gaming Amusement and recreation 230,000,000 Term Loan B NR / NR 575
03/07/12 Mohegan Tribal Gaming Amusement and recreation 225,000,000 Term Loan B D / Caa3 750
03/07/12 Western Digital Corp Computer storage devices 2,500,000,000 Term Loan A NR / WR 200
03/07/12 Western Digital Corp Computer storage devices 500,000,000 Revolver/Line >= 1 Yr. NR / WR 200
03/06/12 Commscope Inc Radio & TV communications equipment 992,500,000 Term Loan B B / B3 325
03/06/12 Ford Motor Co Motor vehicles and car bodies 12,000,000,000 Revolver/Line >= 1 Yr. BB+ / Ba2 225
02/29/12 Maritz Travel agencies 150,000,000 Revolver/Line >= 1 Yr. NR / NR 150
02/28/12 Federal Signal Motor vehicles and car bodies 100,000,000 Revolver/Line >= 1 Yr. NR / NR N/A
02/28/12 Federal Signal Motor vehicles and car bodies 215,000,000 Term Loan NR / NR 1200
02/28/12 FiberTech Group Inc Nonwoven fabrics 15,000,000 Term Loan A NR / NR 500
02/28/12 FiberTech Group Inc Nonwoven fabrics 15,000,000 Revolver/Line >= 1 Yr. NR / NR 450
02/28/12 St Louis Cardinals LLC Sports clubs, managers, & promoters 85,000,000 Revolver/Line >= 1 Yr. NR / NR 150
02/27/12 JC Penney Corp, JC Penney Corp, JC Penney Purchasing CorpDepartment stores 250,000,000 Revolver/Line >= 1 Yr. BB / Ba1 200
02/24/12 Abercrombie & Fitch Co Family clothing stores 300,000,000 Term Loan NR / NR N/A
02/24/12 Henniges Automotive Motor vehicle supplies and new parts 60,000,000 Revolver/Line >= 1 Yr. NR / NR N/A
02/24/12 Henniges Automotive Motor vehicle supplies and new parts 90,000,000 Term Loan NR / NR N/A
02/24/12 MGM Mirage Hotels and motels 1,800,000,000 Other Loan B- / B3 500
02/24/12 Reynolds American Inc Cigarettes 750,000,000 Delay Draw Term Loan BBB- / Baa3 175
Key Retail
Credit Statistics
Recent
Consumer and
Retail Debt
Offerings
Average Secondary Spread
Average Spread on Retail Loans
Credit Statistics
Quarterly Retail Loan Volume
Debt Market
Overview
5 of 16
$0
$2
$4
$6
$8
$10
$12
4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11
Lo
an
Vo
lum
e b
y Q
ua
rte
r (
$ i
n b
illi
on
s)_
__
Pro Rata Institutional
L + 0
L + 100
L + 200
L + 300
L + 400
L + 500
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Av
era
ge S
prea
d O
ver L
IBO
R_
_
Revolving Credit / Term Loan A Weighted-Average Institutional
L + 0
L + 200
L + 400
L + 600
L + 800
L + 1000
L + 1200
Av
era
ge S
prea
d O
ver L
IBO
R
0.0x
2.0x
4.0x
6.0x
8.0x
Debt/EBITDA Senior
Debt/EBITDA
EBITDA/Cash
Interest
EBITDA -
Capex/Cash Interest
EB
ITD
A M
ult
iple
2006 2007 2008 2009 2010 2011
Consumer and Retail
Industry Update
March 2012
6 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 2/17/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Consumer Products
Apparel & Footwear
Carter's, Inc. CRI $43.47 98.4% $2,547 $236 $82 $2,701 $2,110 $232 20.6% 12.2% 33.7% 11.0% 22.3x 1.28x 11.6x 1.18x 11.0x
Cherokee Inc. CHKE 11.44 57.9% 96 8 8 96 27 10 (13.0%) (11.4%) 100.0% 36.1% 16.5x 3.55x 9.8x 3.62x NA
Coach, Inc. COH 75.03 97.8% 21,591 24 1,086 20,530 4,481 1,516 13.2% 11.4% 72.3% 33.8% 23.5x 4.58x 13.5x 4.01x 11.2x
Columbia Sportswear Company COLM 49.67 70.3% 1,670 0 244 1,426 1,694 186 14.2% 8.7% 43.4% 11.0% 16.4x 0.84x 7.7x 0.82x 7.5x
Crocs, Inc. CROX 20.71 63.8% 1,869 1 220 1,650 1,001 171 26.7% 11.5% 53.7% 17.1% 16.9x 1.65x 9.7x 1.44x 8.0x
Deckers Outdoor Corp. DECK 89.47 75.2% 3,454 45 90 3,409 1,377 314 37.6% 25.9% 50.2% 22.8% 21.5x 2.48x 10.9x 2.27x 10.3x
Delta Apparel Inc. DLA 16.25 81.8% 137 121 0 258 492 30 10.0% 12.5% 23.6% 6.1% 27.8x 0.52x 8.6x 0.51x 6.9x
G-III Apparel Group, Ltd. GIII 26.22 57.8% 518 245 16 747 1,207 105 22.3% 21.7% 31.0% 8.7% 9.3x 0.62x 7.1x 0.56x 6.9x
Gildan Activewear Inc. GIL 25.40 66.7% 3,087 305 42 3,350 1,699 234 19.4% 12.8% 21.3% 13.8% 19.6x 1.97x 14.3x 1.69x 10.3x
Hanesbrands Inc. HBI 26.97 80.8% 2,631 2,038 35 4,633 4,637 569 7.2% 3.0% 33.2% 12.3% 10.0x 1.00x 8.1x 0.96x 9.0x
Iconix Brand Group, Inc. ICON 21.04 80.8% 1,550 636 222 1,963 370 239 11.2% 19.5% 100.0% 64.5% 13.1x 5.31x 8.2x 5.26x 8.3x
The Jones Group Inc. JNY 9.87 61.6% 798 857 239 1,416 3,785 275 3.9% 1.5% 35.5% 7.3% 16.2x 0.37x 5.1x 0.37x 4.9x
Kenneth Cole Productions Inc. KCP 12.85 91.5% 233 0 39 194 479 22 4.7% (0.9%) 39.2% 4.6% NM 0.40x 8.9x 0.39x 7.2x
K-Swiss Inc. KSWS 3.35 25.7% 119 10 31 99 268 (57) 23.8% (6.4%) 34.5% NM NM 0.37x NM 0.37x NM
Lacrosse Footwear Inc. BOOT 13.24 69.7% 86 17 1 102 131 9 (12.8%) 0.9% 39.0% 7.0% 29.4x 0.78x 11.1x NA NA
Liz Claiborne Inc. LIZ 9.86 94.3% 933 747 12 1,668 1,519 21 (6.4%) (26.7%) 51.9% 1.4% NM 1.10x 78.9x 1.09x 14.0x
Maidenform Brands, Inc. MFB 21.60 67.1% 508 69 52 525 606 67 8.9% 13.6% 33.9% 11.1% 11.7x 0.87x 7.8x 0.84x 7.0x
Nike Inc. NKE 106.68 99.1% 48,957 471 3,366 46,062 22,657 3,353 14.3% 4.9% 44.2% 14.8% 22.8x 2.03x 13.7x 1.81x 12.7x
Oxford Industries Inc. OXM 52.17 99.1% 861 107 5 962 717 92 21.6% (10.4%) 55.2% 12.8% 36.2x 1.34x 10.5x 1.23x 9.2x
Perry Ellis International Inc. PERY 17.74 54.0% 235 200 21 413 958 78 22.9% 3.2% 34.0% 8.2% 8.9x 0.43x 5.3x 0.40x 5.0x
PVH Corp. PVH 82.23 99.1% 5,559 2,104 160 7,504 5,756 730 49.4% 32.1% 52.6% 12.7% 21.3x 1.30x 10.3x 1.24x 9.1x
Ralph Lauren Corporation RL 174.47 97.8% 16,109 266 1,202 15,173 6,664 1,248 19.6% 9.8% 58.3% 18.7% 25.5x 2.28x 12.2x 2.05x 11.0x
Quiksilver Inc. ZQK 4.69 82.3% 766 748 110 1,404 1,976 167 7.9% (3.7%) 52.4% 8.4% NM 0.71x 8.4x 0.68x 6.7x
Rocky Brands, Inc. RCKY 12.25 74.4% 92 35 4 123 240 24 (5.2%) (2.6%) 36.7% 9.9% 11.0x 0.51x 5.2x 0.49x 4.1x
Skechers USA Inc. SKX 13.04 59.0% 651 137 351 436 1,614 (51) (19.8%) 3.8% 39.1% NM NM 0.27x NM 0.29x 6.8x
Steven Madden, Ltd. SHOO 43.22 98.8% 1,853 0 39 1,813 969 166 52.4% 28.4% 39.1% 17.1% 20.4x 1.87x 10.9x 1.56x 9.9x
Summer Infant, Inc. SUMR 4.98 52.5% 87 64 2 149 238 15 22.5% 21.6% 34.3% 6.5% 18.9x 0.62x 9.6x 0.57x 6.7x
Taiga Building Products Ltd. TBL 0.60 55.0% 19 210 0 230 931 31 (5.2%) 3.3% 9.6% 3.3% 5.0x 0.25x 7.5x NA NA
True Religion Apparel Inc. TRLG 26.88 71.1% 675 0 200 474 420 90 15.4% 15.8% 64.8% 21.4% 14.9x 1.13x 5.3x 1.03x 5.0x
Under Armour, Inc. UA 84.87 97.1% 4,389 78 175 4,291 1,473 199 38.4% 26.6% 48.4% 13.5% 45.9x 2.91x 21.6x 2.39x 17.2x
V.F. Corporation VFC 147.05 98.4% 16,229 2,116 341 18,004 9,459 1,444 22.8% 7.4% 45.8% 15.3% 18.4x 1.90x 12.5x 1.63x 10.5x
Vera Bradley, Inc. VRA 37.35 71.3% 1,513 66 8 1,570 461 106 25.9% NA 55.9% 22.9% 29.3x 3.41x 14.9x 3.13x 12.7x
Warnaco Group Inc. WRC 60.02 92.3% 2,430 257 179 2,508 2,513 341 9.5% 6.8% 43.7% 13.6% 16.2x 1.00x 7.4x 0.95x 7.5x
Weyco Group Inc. WEYS 24.78 90.9% 270 44 15 299 271 26 18.3% 7.0% 39.5% 9.6% 18.9x 1.10x 11.5x NA NA
Wolverine World Wide Inc. WWW 38.79 89.5% 1,873 1 140 1,734 1,409 186 12.9% 4.9% 39.5% 13.2% 15.6x 1.23x 9.3x 1.15x 8.7x
Mean 77.8% 4,126 350 250 4,226 2,417 348 14.7% 7.9% 45.4% 14.9% 19.5x 1.49x 12.0x 1.44x 8.8x
Median 80.8% 933 107 52 1,426 1,207 166 14.3% 7.2% 39.5% 12.7% 18.7x 1.10x 9.7x 1.12x 8.5x
Automotive Products
America's Car-Mart Inc. CRMT $45.95 99.0% $440 $77 $0 $517 $420 $55 15.2% 12.2% 31.3% 13.2% 15.0x 1.23x 9.3x 1.09x NA
Asbury Automotive Group, Inc. ABG 25.92 95.3% 824 797 8 1,612 4,277 137 9.7% 1.5% 16.9% 3.2% 17.6x 0.38x 11.8x 0.35x 8.7x
AutoNation Inc. AN 35.00 84.2% 4,617 2,999 67 7,549 13,832 653 11.0% 1.5% 16.7% 4.7% 18.1x 0.55x 11.6x 0.51x 11.1x
AutoZone Inc. AZO 360.21 99.5% 14,178 3,354 110 17,422 8,349 1,762 8.1% 7.9% 51.1% 21.1% 17.6x 2.09x 9.9x 2.00x 9.3x
CarMax Inc. KMX 30.18 81.5% 6,838 4,495 384 10,949 10,031 725 14.2% 10.0% 16.1% 7.2% 17.0x 1.09x 15.1x 1.06x 14.8x
Group 1 Automotive Inc. GPI 54.80 95.0% 1,181 1,297 15 2,463 6,080 225 10.4% 2.4% 15.8% 3.7% 15.8x 0.41x 10.9x 0.36x 10.4x
EV / LTM EV / 2012ERevenue Growth LTM MarginsLast Twelve Months (LTM)
Consumer and Retail
Industry Update
March 2012
7 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 2/17/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Automotive Products (Cont.)
Lithia Motors Inc. LAD $25.61 95.0% $664 $630 $16 $1,278 $2,699 $130 30.3% 8.4% 17.2% 4.8% 15.5x 0.47x 9.8x 0.44x 9.8x
Midas Inc. MDS 9.13 90.7% 132 109 1 240 184 26 (4.6%) (0.7%) 37.9% 14.2% NM 1.30x 9.2x 1.34x 8.1x
Monro Muffler Brake Inc. MNRO 47.12 99.0% 1,454 46 2 1,499 666 113 5.1% 12.6% 40.6% 17.0% 28.9x 2.25x 13.3x 2.06x 11.5x
O'Reilly Automotive Inc. ORLY 84.55 99.1% 10,753 798 362 11,189 5,789 1,030 7.2% 17.4% 49.0% 17.8% 22.8x 1.93x 10.9x 1.80x 9.8x
Penske Automotive Group, Inc. PAG 24.03 96.1% 2,169 2,552 29 4,692 11,556 347 11.9% (0.2%) 15.8% 3.0% 12.5x 0.41x 13.5x 0.37x 12.8x
Pep Boys - Manny, Moe & Jack PBY 15.14 97.9% 799 309 81 1,027 2,036 164 3.6% 0.9% 29.6% 8.1% 19.4x 0.50x 6.3x 0.48x 5.7x
Sonic Automotive Inc. SAH 17.30 95.5% 912 1,368 28 2,252 7,871 259 14.4% 4.5% 15.5% 3.3% 8.7x 0.29x 8.7x 0.27x 8.0x
Mean 94.5% 3,458 1,449 85 4,822 5,676 433 10.5% 6.0% 27.2% 9.3% 17.4x 0.99x 10.8x 0.93x 10.0x
Median 95.5% 1,181 798 28 2,252 5,789 225 10.4% 4.5% 17.2% 7.2% 17.3x 0.55x 10.9x 0.51x 9.8x
Home & Office Furniture & Furnishings
Furniture Brands International Inc. FBN $1.78 32.8% $99 $77 $25 $150 $1,108 ($0) (4.5%) (14.0%) 24.1% NM NM 0.14x NM 0.14x NM
Herman Miller Inc. MLHR 21.53 74.4% 1,248 250 191 1,308 1,760 184 21.9% (3.7%) 33.2% 10.4% 15.2x 0.74x 7.1x 0.75x 6.9x
HNI Corp. HNI 26.42 72.4% 1,184 181 82 1,283 1,833 131 8.7% (9.0%) 34.9% 7.2% 26.2x 0.70x 9.8x 0.66x 8.1x
Hooker Furniture Corp. HOFT 12.61 85.5% 136 0 33 103 223 10 4.7% (8.0%) 21.0% 4.3% 32.3x 0.46x 10.7x 0.43x 5.7x
Kid Brands, Inc. KID 3.44 35.2% 74 65 2 138 265 10 (1.2%) 43.3% 25.4% 3.9% 4.0x 0.52x 13.4x 0.51x 5.3x
Kimball International, Inc. KBAL.B 6.59 83.5% 181 0 32 150 1,165 41 (1.1%) (4.5%) 17.1% 3.5% 37.7x 0.13x 3.7x NA NA
Knoll Inc. KNL 16.05 70.6% 744 212 28 928 922 109 13.9% (6.3%) 31.9% 11.9% 12.9x 1.01x 8.5x 1.01x 8.8x
Leggett & Platt, Incorporated LEG 21.95 81.4% 3,060 836 236 3,659 3,636 389 8.2% (3.7%) 18.3% 10.7% 21.1x 1.01x 9.4x 0.98x 8.6x
Libbey Inc. LBY 13.95 75.7% 277 397 58 616 819 112 2.2% 0.3% 20.6% 13.7% 12.2x 0.75x 5.5x 0.74x 4.8x
Natuzzi SpA NTZ 3.47 71.8% 190 54 133 111 657 5 (10.2%) (10.9%) 34.5% 0.7% NM 0.17x 23.5x NA NA
Sealy Corporation ZZ 1.59 52.0% 160 792 108 844 1,230 112 0.9% (2.9%) 38.9% 9.1% NM 0.69x 7.5x 0.68x 7.0x
Steelcase Inc. SCS 9.51 78.5% 1,204 292 166 1,330 2,682 188 13.4% (7.9%) 30.4% 7.0% 24.4x 0.50x 7.1x 0.47x 5.9x
Tempur Pedic International Inc. TPX 73.56 96.9% 4,693 586 111 5,168 1,418 375 28.3% 15.2% 52.4% 26.4% 23.1x 3.64x 13.8x 3.15x 11.6x
The Dixie Group, Inc. DXYN 4.48 89.6% 56 75 0 131 270 15 16.8% (1.5%) 24.3% 5.5% 28.0x 0.49x 8.8x 0.48x NA
Mean 71.5% 951 273 86 1,137 1,285 120 7.3% (1.0%) 29.1% 8.8% 21.6x 0.78x 9.9x 0.83x 7.3x
Median 75.1% 234 196 70 730 1,136 111 6.5% (4.1%) 27.9% 7.2% 23.1x 0.60x 8.8x 0.67x 7.0x
Household Products
Central Garden & Pet Co. CENT $8.51 74.8% $432 $461 $28 $864 $1,649 $109 7.3% (0.7%) 29.8% 6.6% 18.3x 0.52x 7.9x 0.51x 7.1x
The Clorox Company CLX 68.49 90.8% 8,890 2,896 298 11,488 5,312 1,084 2.9% (0.8%) 42.8% 20.4% 17.0x 2.16x 10.6x 2.09x 10.0x
iRobot Corporation IRBT 26.00 66.7% 703 0 184 519 466 64 16.1% 14.8% 41.3% 13.7% 18.1x 1.11x 8.2x 1.07x 8.2x
Jarden Corp. JAH 34.51 92.0% 3,133 3,159 808 5,485 6,680 784 10.9% 7.5% 27.8% 11.7% 14.9x 0.82x 7.0x 0.80x 6.5x
Newell Rubbermaid Inc. NWL 19.26 94.5% 5,576 2,177 170 7,582 5,865 895 3.6% (3.2%) 37.6% 15.3% 42.8x 1.29x 8.5x 1.28x 8.3x
Prestige Brands Holdings, Inc. PBH 13.50 98.4% 681 430 4 1,106 403 119 30.1% 8.6% 51.8% 29.5% 15.7x 2.74x 9.3x 1.89x 5.7x
Snap-on Inc. SNA 62.16 96.6% 3,630 984 181 4,433 2,979 532 11.1% 0.5% 47.4% 17.9% 13.2x 1.49x 8.3x 1.47x 8.7x
Stanley Black & Decker, Inc. SWK 75.36 96.4% 12,728 3,452 907 15,274 10,376 1,565 24.4% 32.8% 36.9% 15.1% 18.6x 1.47x 9.8x 1.36x 7.7x
Toro Co. TTC 60.55 88.5% 1,821 227 81 1,967 1,925 241 10.5% 2.0% 33.8% 12.5% 16.4x 1.02x 8.1x 1.00x 8.3x
Tupperware Brands Corporation TUP 61.21 85.0% 3,511 611 138 3,984 2,585 431 12.4% 6.1% 66.6% 16.7% 17.2x 1.54x 9.2x 1.50x 8.5x
Whirlpool Corp. WHR 71.03 77.0% 5,429 2,491 1,109 6,811 18,666 1,451 1.6% (0.4%) 13.8% 7.8% 14.2x 0.36x 4.7x 0.36x 4.6x
Mean 87.3% 4,230 1,535 355 5,410 5,173 661 11.9% 6.1% 39.1% 15.2% 18.8x 1.32x 8.3x 1.21x 7.6x
Median 90.8% 3,511 984 181 4,433 2,979 532 10.9% 2.0% 37.6% 15.1% 17.0x 1.29x 8.3x 1.28x 8.2x
Personal Care Products
All for One Midmarket AG ACV $11.77 83.6% $57 $7 $24 $40 $132 $13 21.2% 9.3% 23.9% 9.8% 9.1x 0.30x 3.1x NA NA
American Oriental Bioengineering Inc. AOB 0.71 29.7% 56 123 83 96 243 36 (24.6%) 2.5% 48.7% 14.7% 4.2x 0.39x 2.7x 0.41x NA
Avon Products Inc. AVP 19.19 60.7% 8,267 3,251 1,009 10,508 11,427 1,518 5.2% 2.8% 63.5% 13.3% 11.3x 0.92x 6.9x 0.93x 7.7x
Revenue GrowthLast Twelve Months (LTM) LTM Margins EV / LTM EV / 2012E
Consumer and Retail
Industry Update
March 2012
8 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 2/17/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Personal Care Products (Cont.)
Elizabeth Arden, Inc. RDEN $39.35 98.5% $1,126 $250 $62 $1,313 $1,219 $126 7.3% 3.4% 49.2% 10.3% 21.8x 1.08x 10.5x 1.03x 8.9x
Estee Lauder Companies Inc. EL 56.04 46.4% 21,726 1,213 999 21,940 9,441 1,689 14.0% 6.4% 78.9% 17.9% 26.7x 2.32x 13.0x 2.20x 12.2x
Herbalife Ltd. HLF 60.61 95.6% 7,050 228 262 7,017 3,455 634 26.3% 13.6% 80.1% 18.4% 19.6x 2.03x 11.1x 1.93x 10.8x
Inter Parfums Inc. IPAR 17.46 70.4% 533 28 30 531 615 81 33.6% 11.3% 61.5% 13.1% 15.6x 0.86x 6.6x 0.86x 6.6x
Kimberly-Clark Corporation KMB 71.57 96.4% 28,320 6,679 764 34,235 20,846 3,921 5.6% 2.4% 31.5% 18.8% 17.9x 1.64x 8.7x 1.63x 8.4x
Medifast Inc. MED 17.46 55.4% 270 5 37 238 298 35 15.8% 39.4% 75.1% 11.8% 12.0x 0.80x 6.8x 0.72x 5.5x
Nu Skin Enterprises Inc. NUS 54.40 99.4% 3,381 137 291 3,227 1,744 267 13.4% 11.8% 81.5% 15.3% 22.9x 1.85x 12.1x 1.74x 9.6x
Obagi Medical Products, Inc. OMPI 11.96 92.0% 222 0 27 195 114 26 1.2% 2.9% 79.0% 23.1% 29.4x 1.71x 7.4x 1.65x 7.7x
Procter & Gamble Co. PG 64.91 95.9% 178,788 33,388 4,414 207,762 85,142 18,578 7.0% 1.4% 49.5% 21.8% 19.1x 2.44x 11.2x 2.41x 10.4x
Revlon, Inc. REV 16.31 84.4% 855 1,179 102 1,933 1,381 219 4.5% 0.8% 64.3% 15.9% 16.1x 1.40x 8.8x 1.40x 7.4x
Sally Beauty Holdings Inc. SBH 23.62 99.7% 4,377 1,461 72 5,766 3,340 509 11.2% 8.2% 49.0% 15.2% 21.9x 1.73x 11.3x 1.61x 9.8x
Schiff Nutrition International Inc. WNI 11.62 89.2% 339 10 24 324 229 28 10.8% 6.1% 40.9% 12.2% 24.2x 1.42x 11.6x 1.25x 9.5x
Ulta Salon, Cosmetics & Fragrance, Inc. ULTA 82.56 97.7% 5,110 0 131 4,979 1,776 272 22.1% 17.9% 34.5% 15.3% 50.0x 2.80x 18.3x 2.49x 15.6x
USANA Health Sciences Inc. USNA 38.02 97.8% 569 0 50 518 582 86 12.4% 10.7% 82.5% 14.7% 11.7x 0.89x 6.0x 0.84x 6.0x
Mean 81.9% 15,356 2,821 493 17,684 8,352 1,649 11.0% 8.9% 58.5% 15.4% 19.6x 1.45x 9.2x 1.44x 9.1x
Median 92.0% 1,126 137 83 1,933 1,381 219 11.2% 6.4% 61.5% 15.2% 19.1x 1.42x 8.8x 1.51x 8.9x
Recreational & Leisure Products
Arctic Cat Inc. ACAT $34.47 97.8% $436 $0 $76 $360 $560 $54 17.9% (4.4%) 22.5% 9.6% 24.2x 0.64x 6.7x 0.58x 5.2x
Brunswick Corporation BC 24.47 88.3% 2,180 693 415 2,458 3,748 320 10.1% (7.3%) 23.4% 8.5% 31.4x 0.66x 7.7x 0.63x 7.1x
Callaway Golf Co. ELY 6.47 78.7% 420 0 43 377 887 3 (8.4%) (7.4%) 37.6% 0.4% NM 0.43x 112.5x 0.38x 6.1x
Cybex International Inc. CYBI 2.42 86.4% 41 14 12 44 140 13 14.0% (1.8%) 35.6% 9.2% 1.2x 0.31x 3.4x NA NA
Harley-Davidson, Inc. HOG 46.05 97.6% 10,750 5,723 1,680 14,792 5,312 1,078 9.3% (3.7%) 34.4% 20.3% 19.8x 2.78x 13.7x 2.99x 12.1x
Hasbro Inc. HAS 36.18 72.1% 4,667 1,581 642 5,606 4,286 769 7.1% 2.1% 48.4% 17.9% 12.8x 1.31x 7.3x 1.29x 7.3x
Head NV WBAG:HEAD 1.20 100.0% 101 185 37 249 441 31 (4.4%) (1.1%) 41.4% 7.0% NM 0.57x 8.1x NA NA
JAKKS Pacific, Inc. JAKK 15.06 71.0% 388 92 232 247 678 29 (9.3%) (9.1%) 32.7% 4.2% 11.9x 0.36x 8.6x 0.36x 5.3x
Johnson Outdoors Inc. JOUT 17.83 84.9% 176 34 29 181 409 25 4.7% (0.5%) 40.0% 6.0% 5.6x 0.44x 7.3x NA NA
LeapFrog Enterprises Inc. LF 7.34 92.9% 485 0 72 413 455 35 5.2% (0.3%) 40.9% 7.7% 24.5x 0.91x 11.7x 0.83x 7.7x
Life Time Fitness Inc. LTM 51.31 98.4% 2,075 686 7 2,753 1,014 274 11.0% 9.6% 39.3% 27.0% 22.7x 2.72x 10.1x 2.46x 8.6x
Marine Products Corp. MPX 6.34 78.9% 237 0 13 224 106 6 5.4% (15.4%) 18.3% 5.9% 35.2x 2.10x 35.7x 2.00x NA
Mattel, Inc. MAT 32.44 98.9% 10,986 1,558 1,369 11,175 6,266 1,225 7.0% 1.9% 50.2% 19.5% 14.9x 1.78x 9.1x 1.71x 8.5x
Nautilus Inc. NLS 2.76 80.0% 85 5 12 79 180 8 7.1% (14.0%) 43.7% 4.2% NM 0.44x 10.3x NA NA
Navarre Corp. NAVR 1.66 73.8% 62 0 2 60 488 5 (2.2%) (8.8%) 12.0% 1.1% NM 0.12x 11.1x 0.13x 6.2x
Polaris Industries, Inc. PII 67.19 96.0% 4,638 107 325 4,420 2,681 418 33.5% 10.8% 28.5% 15.6% 21.0x 1.65x 10.6x 1.50x 9.0x
Pool Corp. POOL 37.70 98.9% 1,795 247 17 2,025 1,793 138 11.1% 0.2% 29.6% 7.7% 25.6x 1.13x 14.7x 1.06x 13.2x
Smith & Wesson Holding Corporation SWHC 5.25 97.9% 341 84 43 381 434 37 26.0% 10.9% 27.7% 8.5% NM 0.88x 10.3x 0.94x 6.8x
Steinway Musical Instruments Inc. LVB 25.76 87.9% 318 78 41 355 346 30 8.8% (3.7%) 30.8% 8.7% NM 1.03x 11.8x 0.99x 8.5x
Sturm, Ruger & Co. Inc. RGR 43.80 98.2% 834 0 79 755 329 75 28.8% 21.9% 33.8% 22.9% 23.8x 2.29x 10.0x 2.23x NA
THQ Inc. THQI 0.62 10.3% 42 100 48 95 771 (130) 4.4% (3.1%) 56.9% NM NM 0.12x NM 0.21x NM
Mean 85.2% 1,955 533 247 2,240 1,492 212 8.9% (1.1%) 34.7% 10.6% 19.6x 1.08x 16.0x 1.19x 8.0x
Median 88.3% 420 84 43 377 560 35 7.1% (1.8%) 34.4% 8.5% 21.9x 0.88x 10.2x 0.99x 7.5x
Revenue Growth LTM Margins EV / LTM EV / 2012ELast Twelve Months (LTM)
Consumer and Retail
Industry Update
March 2012
9 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 2/17/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Retail
Apparel & Footwear Retail
Abercrombie & Fitch Co. ANF $48.48 62.0% $4,152 $26 $488 $3,690 $4,158 $518 19.9% 6.1% 62.9% 12.4% 21.9x 0.89x 7.1x 0.77x 4.9x
Aeropostale, Inc. ARO 17.75 64.0% 1,433 0 109 1,324 2,342 196 (2.4%) 7.5% 36.0% 8.4% 11.7x 0.57x 6.8x 0.56x 6.8x
American Apparel, Inc. APP 0.71 42.0% 74 150 8 216 547 6 2.7% 0.1% 54.6% 1.1% NM 0.39x 36.3x NA NA
American Eagle Outfitters, Inc. AEO 14.44 83.1% 2,798 0 481 2,316 3,160 395 6.5% 2.3% 37.4% 12.5% 15.1x 0.73x 5.9x 0.71x 5.5x
ANN INC ANN 24.04 74.0% 1,259 5 140 1,124 2,212 245 11.7% 0.3% 55.4% 11.1% 14.2x 0.51x 4.6x 0.48x 4.5x
Ascena Retail Group Inc. ASNA 37.92 99.6% 2,905 0 290 2,615 3,079 432 8.3% 28.4% 53.4% 14.0% 18.0x 0.85x 6.1x 0.81x 5.9x
Bebe Stores, Inc. BEBE 9.02 96.2% 760 0 207 552 520 39 7.8% (8.0%) 56.6% 7.5% NM 1.06x 14.2x 1.00x 9.6x
Brown Shoe Co. Inc. BWS 10.71 67.9% 450 421 42 828 2,583 95 3.1% 4.3% 39.0% 3.7% 25.4x 0.32x 8.8x 0.32x 5.7x
Buckle Inc. BKE 45.71 95.3% 2,142 0 78 2,064 1,063 268 11.9% 10.3% 49.4% 25.2% 14.9x 1.94x 7.7x 1.88x 7.4x
Body Central Corp. BODY 28.16 97.3% 451 0 32 419 297 37 21.8% NA 35.3% 12.3% 27.5x 1.41x 11.4x 1.26x 9.8x
Cabela's Inc. CAB 33.42 98.7% 2,301 2,227 305 4,223 2,811 315 5.6% 3.3% 100.0% 11.2% 16.7x 1.50x 13.4x 1.41x 12.3x
Casual Male Retail Group, Inc. CMRG 3.29 65.1% 155 0 6 149 398 29 1.0% (3.6%) 46.4% 7.2% 11.0x 0.38x 5.2x 0.36x 4.3x
Cato Corp. CATO 28.85 93.8% 841 0 242 599 931 118 0.6% 2.8% 38.3% 12.7% 13.1x 0.64x 5.1x 0.63x 5.0x
Charming Shoppes Inc. CHRS 5.46 98.4% 636 143 158 622 2,009 81 (0.8%) (7.9%) 50.4% 4.0% NM 0.31x 7.7x 0.32x 6.6x
Chico's FAS Inc. CHS 13.03 79.0% 2,185 0 240 1,945 2,196 327 15.3% 11.5% 56.2% 14.9% 17.0x 0.89x 5.9x 0.82x 5.6x
Christopher & Banks Corporation CBK 2.78 39.0% 100 0 57 43 444 (22) (1.5%) (6.9%) 43.5% NM NM 0.10x NM 0.11x NM
Citi Trends CTRN 10.75 42.7% 156 0 33 123 641 13 2.9% 9.5% 36.8% 2.0% 32.8x 0.19x 9.4x 0.18x 7.2x
Coldwater Creek Inc. CWTR 1.08 30.2% 131 43 38 136 773 (34) (21.2%) (9.0%) 27.1% NM NM 0.18x NM 0.18x NM
Collective Brands, Inc. PSS 17.64 73.6% 1,069 613 213 1,469 3,462 115 2.5% 0.2% 33.1% 3.3% NM 0.42x 12.8x 0.43x 6.0x
Destination Maternity Corporation DEST 16.74 66.2% 223 26 29 220 546 47 2.5% (0.6%) 53.7% 8.7% 11.0x 0.40x 4.6x 0.39x 4.7x
DSW Inc. DSW 53.50 95.7% 2,312 0 304 2,008 1,979 255 12.7% 21.6% 32.5% 12.9% 12.0x 1.01x 7.9x 0.93x 6.8x
Express Inc. EXPR 22.80 94.9% 2,026 317 145 2,198 2,073 339 8.8% 5.8% 45.0% 16.4% 15.8x 1.06x 6.5x 1.01x 6.1x
Finish Line Inc. FINL 23.74 98.6% 1,230 0 217 1,014 1,298 151 6.5% 1.7% 41.0% 11.7% 16.6x 0.78x 6.7x 0.73x 6.0x
Foot Locker, Inc. FL 28.20 98.7% 4,265 136 698 3,703 5,623 551 11.4% 2.4% 43.5% 9.8% 17.3x 0.66x 6.7x 0.64x 6.3x
Gap Inc. GPS 22.72 95.7% 11,094 1,658 1,417 11,335 14,549 1,944 (0.8%) 0.1% 37.9% 13.4% 13.1x 0.78x 5.8x 0.77x 6.0x
Genesco Inc. GCO 68.73 99.0% 1,665 148 36 1,776 2,292 199 28.1% 13.9% 50.3% 8.7% 22.4x 0.78x 8.9x 0.71x 7.9x
Guess? Inc. GES 35.46 68.8% 3,290 14 431 2,874 2,688 497 8.1% 8.7% 43.6% 18.5% 12.1x 1.07x 5.8x 1.04x 6.0x
Hot Topic Inc. HOTT 8.04 92.0% 340 0 42 298 698 49 (1.5%) (2.8%) 39.9% 7.0% NM 0.43x 6.1x 0.42x 5.4x
Jos. A Bank Clothiers Inc. JOSB 52.88 92.5% 1,472 0 240 1,231 952 182 16.2% 13.2% 62.6% 19.2% 15.7x 1.29x 6.8x 1.17x 6.0x
Limited Brands, Inc. LTD 46.50 99.6% 13,780 3,602 498 16,884 10,364 1,745 7.8% 4.6% 43.6% 16.8% 15.8x 1.63x 9.7x 1.68x 8.7x
Lululemon Athletica Inc. LULU 65.01 96.7% 9,328 0 277 9,051 875 271 39.5% 35.2% 57.6% 31.0% NM 10.35x 33.4x 7.52x 24.6x
The Men's Wearhouse, Inc. MW 39.35 99.7% 2,017 0 139 1,879 2,383 261 13.3% 6.5% 43.4% 11.0% 18.9x 0.79x 7.2x 0.76x 6.7x
New York & Company Inc. NWY 2.67 35.6% 165 12 21 157 956 3 (6.4%) (5.7%) 25.4% 0.3% NM 0.16x 55.0x 0.17x 24.6x
Pacific Sunwear of California Inc. PSUN 1.94 34.0% 131 29 8 151 834 (35) (10.3%) (12.7%) 38.9% NM NM 0.18x NM 0.18x NM
Ross Stores Inc. ROST 51.83 98.3% 11,850 150 553 11,447 8,608 1,223 9.4% 9.9% 27.5% 14.2% 19.2x 1.33x 9.4x 1.26x 8.4x
rue21, Inc. RUE 26.33 70.5% 644 0 36 608 760 89 19.8% 24.8% 37.3% 11.7% 17.8x 0.80x 6.9x 0.68x 6.1x
Shoe Carnival Inc. SCVL 26.99 79.3% 360 0 53 307 760 59 4.2% 5.1% 36.2% 7.8% 13.2x 0.40x 5.2x 0.38x 5.4x
Stage Stores Inc. SSI 15.44 77.3% 470 106 27 549 1,512 113 2.8% (0.1%) 27.6% 7.5% 17.7x 0.36x 4.9x 0.36x 4.6x
Stein Mart Inc. SMRT 7.34 67.0% 319 7 102 224 1,160 51 (1.8%) (4.4%) 32.5% 4.4% 10.2x 0.19x 4.4x 0.19x 3.6x
The Children’s Place Retail Stores, Inc. PLCE 47.59 82.7% 1,184 0 153 1,031 1,716 185 2.5% 1.7% 40.1% 10.8% 14.4x 0.60x 5.6x 0.57x 5.4x
The Talbots Inc. TLB 3.10 26.4% 219 164 19 364 1,144 12 (7.4%) (10.5%) 30.5% 1.0% NM 0.32x 30.5x 0.33x NA
The TJX Companies, Inc. TJX 34.87 99.5% 26,302 788 1,029 26,061 23,191 2,933 5.7% 6.9% 27.1% 12.6% 20.1x 1.12x 8.9x 1.07x 8.1x
Urban Outfitters Inc. URBN 28.48 72.5% 4,107 0 130 3,977 2,474 392 8.8% 10.5% 43.8% 15.9% 21.0x 1.61x 10.1x 1.47x 9.1x
Wet Seal Inc. WTSL.A 3.69 70.6% 334 0 131 203 622 53 9.8% 0.3% 47.7% 8.5% 19.2x 0.33x 3.8x 0.32x 4.1x
Zumiez, Inc. ZUMZ 31.04 95.5% 966 0 137 829 556 80 16.1% 10.8% 36.5% 14.4% 28.6x 1.49x 10.4x 1.38x 10.0x
Mean 78.0% 2,758 240 223 2,774 2,761 329 6.7% 4.5% 43.5% 10.9% 17.4x 0.96x 10.5x 0.87x 7.4x
Median 82.7% 1,184 0 139 1,031 1,512 151 6.5% 3.0% 41.0% 11.1% 16.6x 0.73x 7.0x 0.69x 6.1x
EV / LTM EV / 2012ELast Twelve Months (LTM) Revenue Growth LTM Margins
Consumer and Retail
Industry Update
March 2012
10 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 2/17/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Catalog & Specialty Distribution
HSN, Inc. HSNI $36.80 95.7% $2,173 $309 $340 $2,142 $3,177 $258 6.0% 4.0% 34.0% 8.1% 18.8x 0.67x 8.3x 0.65x 6.8x
Insight Enterprises Inc. NSIT 21.98 97.7% 964 117 128 953 5,287 193 9.9% 3.1% 13.4% 3.7% 10.1x 0.18x 4.9x 0.17x 4.5x
Liberty Interactive, Inc. LINT.A 18.03 96.7% 10,646 6,430 1,360 15,716 9,616 1,774 9.8% 5.5% 36.2% 18.4% 14.9x 1.63x 8.9x 1.57x 8.1x
Nutrisystem, Inc. NTRI 11.42 50.4% 310 30 72 268 401 31 (21.2%) (16.4%) 52.4% 7.8% 15.7x 0.67x 8.6x 0.63x 5.7x
PC Connection, Inc. PCCC 9.09 70.4% 240 7 5 242 2,103 54 6.5% 6.2% 12.6% 2.6% 8.5x 0.12x 4.5x 0.11x 3.9x
PC Mall Inc. MALL 6.10 55.6% 73 76 6 143 1,455 19 6.4% 3.1% 12.7% 1.3% 10.2x 0.10x 7.5x 0.09x 5.2x
Systemax Inc. SYX 20.45 97.8% 744 8 126 626 3,682 92 2.6% 6.7% 14.4% 2.5% 14.5x 0.17x 6.8x 0.16x NA
ValueVision Media Inc. VVTV 1.68 19.2% 82 25 28 79 558 (4) (0.7%) (0.5%) 36.4% NM NM 0.14x NM 0.14x 23.7x
Mean 72.9% 1,904 875 258 2,521 3,285 302 2.4% 1.5% 26.5% 6.3% 13.2x 0.46x 7.1x 0.44x 8.3x
Median 83.0% 527 53 99 447 2,640 73 6.2% 3.6% 24.2% 3.7% 14.5x 0.18x 7.5x 0.16x 5.7x
Department Chains
Bon-Ton Stores Inc. BONT $4.86 27.8% $96 $1,055 $13 $1,138 $2,954 $174 (3.1%) (2.9%) 38.2% 5.9% NM 0.39x 6.5x 0.39x 6.7x
Dillard's Inc. DDS 51.48 84.3% 2,586 1,046 106 3,525 6,400 679 2.3% (2.9%) 36.9% 10.6% 6.8x 0.55x 5.2x 0.55x 5.2x
J. C. Penney Company, Inc. JCP 42.68 98.8% 9,114 3,102 1,085 11,131 17,260 1,025 (2.8%) (2.3%) 38.3% 5.9% 49.3x 0.64x 10.9x 0.66x 9.6x
Kohl's Corp. KSS 51.80 89.3% 13,128 4,239 760 16,607 18,804 2,936 2.2% 4.7% 38.4% 15.6% 12.2x 0.88x 5.7x 0.86x 5.6x
Macy's, Inc. M 36.25 99.7% 15,219 6,956 1,097 21,078 26,405 3,471 5.6% 2.0% 40.5% 13.1% 13.3x 0.80x 6.1x 0.78x 6.0x
Nordstrom Inc. JWN 51.14 95.9% 10,617 3,647 1,877 12,387 10,877 1,620 12.1% 8.3% 37.3% 14.9% 16.3x 1.14x 7.6x 1.07x 7.2x
Saks Incorporated SKS 10.87 83.8% 1,694 373 74 1,993 3,014 277 8.2% (0.3%) 40.9% 9.2% 27.2x 0.66x 7.2x 0.65x 7.1x
Sears Holdings Corporation SHLD 54.53 58.1% 5,828 4,552 624 9,756 41,567 277 (2.6%) (3.9%) 26.7% 0.7% NM 0.23x 35.2x 0.24x 25.8x
Stage Stores Inc. SSI 15.44 77.3% 470 106 27 549 1,512 113 2.8% (0.1%) 27.6% 7.5% 17.7x 0.36x 4.9x 0.36x 4.6x
Mean 79.4% 6,528 2,786 629 8,685 14,310 1,175 2.8% 0.3% 36.1% 9.3% 20.4x 0.63x 9.9x 0.62x 8.6x
Median 84.3% 5,828 3,102 624 9,756 10,877 679 2.3% (0.3%) 38.2% 9.2% 16.3x 0.64x 6.5x 0.65x 6.7x
Discount Stores & Mass Merchants
Nordion Inc. NDN $9.97 83.0% $622 $44 $74 $592 $262 $79 6.4% 87.1% 54.0% 30.2% 14.9x 2.26x 7.5x 2.20x 7.7x
Big Lots Inc. BIG 44.12 99.3% 2,894 285 60 3,120 5,202 436 5.0% 3.8% 40.0% 8.4% 15.7x 0.60x 7.2x 0.57x 6.8x
Costco Wholesale Corporation COST 84.47 95.3% 36,738 2,264 5,915 33,087 93,396 3,380 13.9% 8.6% 12.5% 3.6% 25.4x 0.35x 9.8x 0.33x 8.8x
Dollar General Corporation DG 42.38 98.2% 14,297 2,737 120 16,913 14,108 1,676 10.8% 11.5% 31.8% 11.9% 21.1x 1.20x 10.1x 1.07x 8.9x
Dollar Tree, Inc. DLTR 89.35 99.9% 10,635 266 280 10,620 6,631 946 12.7% 12.6% 35.8% 14.3% 23.8x 1.60x 11.2x 1.50x 10.6x
Duckwall-ALCO Stores Inc. DUCK 9.22 62.3% 35 80 3 113 484 13 9.0% (0.8%) 30.0% 2.7% 27.4x 0.23x 8.7x NA NA
Family Dollar Stores Inc. FDO 54.88 90.7% 6,463 607 155 6,915 8,699 839 8.2% 7.2% 35.3% 9.6% 17.0x 0.79x 8.2x 0.73x 7.5x
Fred's, Inc. FRED 14.67 96.1% 543 7 20 531 1,867 82 2.1% 0.8% 28.7% 4.4% 17.9x 0.28x 6.4x 0.27x 5.9x
Gordmans Stores, Inc. GMAN 14.44 62.1% 276 1 8 269 541 43 6.4% 40.9% 43.4% 8.0% 11.9x 0.50x 6.2x 0.45x 5.9x
PriceSmart Inc. PSMT 68.09 86.5% 2,006 77 58 2,025 1,800 116 23.3% 15.5% 15.9% 6.4% 33.4x 1.13x 17.5x 0.96x 14.2x
Target Corp. TGT 52.64 93.9% 35,353 19,040 821 53,572 69,865 7,453 3.7% 2.5% 29.9% 10.7% 12.3x 0.77x 7.2x 0.75x 7.3x
Tuesday Morning Corp. TUES 3.59 60.5% 150 0 57 93 813 26 (1.5%) (0.3%) 38.0% 3.2% 32.4x 0.11x 3.6x 0.11x NA
Wal-Mart Stores Inc. WMT 62.48 99.8% 213,975 59,317 7,063 266,229 446,950 34,688 6.0% 3.4% 25.0% 7.8% 14.1x 0.60x 7.7x 0.58x 7.5x
Mean 86.7% 24,922 6,517 1,126 30,314 50,048 3,829 8.1% 14.8% 32.3% 9.3% 20.5x 0.80x 8.6x 0.79x 8.3x
Median 93.9% 2,894 266 74 3,120 5,202 436 6.4% 7.2% 31.8% 8.0% 17.9x 0.60x 7.7x 0.65x 7.5x
Furniture & Furnishings Retailers
Aaron's, Inc. AAN $28.44 96.9% $2,148 $137 $274 $2,010 $2,021 $275 7.8% 8.5% 54.2% 13.6% 19.9x 0.99x 7.3x 0.93x 6.7x
Bed Bath & Beyond Inc. BBBY 59.47 93.2% 14,080 0 1,528 12,552 9,273 1,659 9.1% 8.7% 41.5% 17.9% 15.9x 1.35x 7.6x 1.28x 7.0x
Cost Plus Inc. CPWM 14.00 89.2% 313 195 3 505 941 42 5.3% (1.5%) 31.6% 4.5% 32.8x 0.54x 12.0x 0.51x 9.5x
Ethan Allen Interiors Inc. ETH 25.01 93.0% 722 153 77 797 709 64 9.3% (6.5%) 52.7% 9.0% 28.4x 1.12x 12.5x 1.05x 9.5x
Haverty Furniture Companies Inc. HVT 12.86 91.5% 282 9 66 224 621 23 0.1% (3.6%) 51.3% 3.8% NM 0.36x 9.6x 0.35x 8.0x
Kirkland's Inc. KIRK 16.27 94.3% 316 0 60 256 430 43 3.6% 3.2% 39.0% 10.0% 18.4x 0.60x 6.0x 0.56x 5.9x
La-Z-Boy Inc. LZB 14.01 98.0% 727 31 118 640 1,243 75 7.3% (1.7%) 30.6% 6.0% 10.1x 0.51x 8.6x 0.51x 7.3x
Lifetime Brands, Inc. LCUT 12.77 77.9% 158 107 1 264 444 33 0.3% (3.1%) 37.0% 7.4% 7.9x 0.59x 8.0x NA NA
Last Twelve Months (LTM) LTM Margins EV / LTM EV / 2012ERevenue Growth
Consumer and Retail
Industry Update
March 2012
11 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 2/17/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Furniture & Furnishings Retailers (Cont.)
Pier 1 Imports, Inc. PIR $16.46 96.4% $1,906 $10 $179 $1,737 $1,483 $168 8.6% 2.7% 59.5% 11.3% 17.3x 1.17x 10.3x 1.09x 8.6x
Rent-A-Center Inc. RCII 35.57 92.8% 2,090 741 88 2,743 2,882 387 5.5% (0.0%) 71.2% 13.4% 13.4x 0.95x 7.1x 0.88x 6.7x
Select Comfort Corporation SCSS 28.05 94.7% 1,582 0 136 1,446 743 104 22.7% 6.9% 63.3% 14.0% 26.2x 1.95x 13.9x 1.62x 10.3x
The Sherwin-Williams Company SHW 100.32 99.9% 10,409 1,169 46 11,532 8,766 956 12.7% 3.2% 42.7% 10.9% 24.2x 1.32x 12.1x 1.22x 10.7x
Tuesday Morning Corp. TUES 3.59 60.5% 150 0 57 93 813 26 (1.5%) (0.3%) 38.0% 3.2% 32.4x 0.11x 3.6x 0.11x NA
Williams-Sonoma Inc. WSM 38.00 83.6% 3,909 7 379 3,537 3,721 512 6.2% 3.4% 44.4% 13.8% 17.9x 0.95x 6.9x 0.93x 6.6x
Mean 90.1% 2,771 183 215 2,738 2,435 312 6.9% 1.4% 46.9% 9.9% 20.4x 0.89x 9.0x 0.85x 8.1x
Median 93.1% 1,154 20 83 1,121 1,092 89 6.7% 1.4% 43.6% 10.4% 18.4x 0.95x 8.3x 0.93x 7.6x
Internet Retail
1-800-Flowers.com Inc. FLWS $2.99 77.9% $195 $37 $30 $202 $716 $34 9.9% 3.5% 40.1% 4.8% 22.7x 0.28x 5.9x 0.28x 4.6x
Amazon.com Inc. AMZN 182.50 74.0% 83,050 1,810 9,576 75,284 48,077 1,709 40.6% 35.9% 22.4% 3.6% NM 1.57x 44.1x 1.20x 26.9x
Blue Nile Inc. NILE 38.88 60.3% 527 1 89 438 348 18 4.5% 5.6% 20.7% 5.3% NM 1.26x 23.8x 1.14x 18.3x
eBay Inc. EBAY 35.06 99.6% 45,119 2,090 5,929 41,279 11,652 3,313 27.3% 10.9% 70.3% 28.4% 14.3x 3.54x 12.5x 2.99x 9.3x
IAC/InterActiveCorp. IACI 45.81 95.5% 3,724 96 870 2,950 2,059 285 25.8% 13.5% 63.0% 13.9% 24.2x 1.43x 10.3x 1.17x 6.5x
Netflix, Inc. NFLX 121.85 40.0% 6,753 434 798 6,389 3,205 429 48.2% 32.9% 36.3% 13.4% 29.3x 1.99x 14.9x 1.75x 46.9x
Orbitz Worldwide, Inc. OWW 3.02 58.1% 314 473 141 646 767 111 1.2% (4.1%) 79.6% 14.5% NM 0.84x 5.8x 0.81x 4.8x
Overstock.com Inc. OSTK 6.77 39.7% 158 38 79 116 1,054 (1) (3.3%) 8.3% 17.2% NM NM 0.11x NM 0.10x NA
PetMed Express Inc. PETS 12.00 63.6% 236 0 52 183 233 28 1.0% 3.3% 33.7% 11.8% 15.2x 0.79x 6.7x 0.78x 7.3x
priceline.com Incorporated PCLN 582.52 99.0% 29,000 575 2,405 27,170 4,356 1,453 41.2% 32.2% 69.2% 33.4% 30.9x 6.24x 18.7x 5.24x 14.7x
Shutterfly, Inc. SFLY 27.87 41.8% 972 0 180 792 473 47 53.8% 30.4% 53.6% 9.9% NM 1.67x 17.0x 1.42x 8.5x
Stamps.com Inc. STMP 28.85 85.5% 433 0 69 364 102 18 18.8% 6.2% 74.2% 17.8% 16.7x 3.58x 20.1x 3.19x 14.4x
U.S. Auto Parts Network, Inc. PRTS 4.37 43.8% 134 20 16 137 327 6 24.7% 28.7% 33.5% 1.7% NM 0.42x 24.9x 0.40x 6.1x
Mean 67.6% 13,124 429 1,557 11,996 5,644 573 22.6% 15.9% 47.2% 13.2% 21.9x 1.83x 17.0x 1.57x 14.0x
Median 63.6% 527 38 141 646 767 47 24.7% 10.9% 40.1% 12.6% 22.7x 1.43x 15.9x 1.17x 8.9x
Specialty & Other Retail
Barnes & Noble, Inc. BKS 13.11 62.3% 761 425 24 1,162 7,124 175 2.6% 12.5% 26.4% 2.4% NM 0.16x 6.7x 0.15x 5.7x
Best Buy Co. Inc. BBY 25.71 75.4% 9,007 2,277 2,392 8,892 50,642 3,081 0.1% 5.0% 24.8% 6.1% 8.9x 0.18x 2.9x 0.17x 2.8x
Big 5 Sporting Goods Corp. BGFV 8.90 59.7% 193 73 5 262 902 40 0.6% 1.4% 32.9% 4.4% 12.5x 0.29x 6.6x 0.28x 6.1x
Books-A-Million Inc. BAMM 2.50 37.6% 40 31 4 67 469 12 (5.3%) (3.1%) 36.6% 2.6% NM 0.14x 5.5x NA NA
Build-A-Bear Workshop Inc. BBW 5.96 67.7% 100 0 46 53 394 22 (1.8%) (5.6%) 40.6% 5.6% NM 0.13x 2.4x 0.13x 1.6x
Conns Inc. CONN 13.40 92.8% 428 311 7 733 763 20 (3.1%) (3.4%) 35.2% 2.6% NM 0.96x 36.8x 0.94x 8.9x
CVS Caremark Corporation CVS 44.27 98.4% 57,656 10,014 1,418 66,252 107,100 7,898 11.8% 7.0% 19.2% 7.4% 17.1x 0.62x 8.4x 0.55x 7.6x
Dick's Sporting Goods Inc. DKS 44.65 97.9% 5,390 140 483 5,047 5,212 546 7.0% 8.1% 30.5% 10.5% 23.2x 0.97x 9.2x 0.91x 8.6x
Fossil, Inc. FOSL 118.19 87.6% 7,398 15 240 7,174 2,567 525 26.4% 17.5% 56.1% 20.4% 25.6x 2.79x 13.7x 2.42x 12.2x
Golfsmith International Holdings Inc. GOLF 4.10 71.3% 65 35 1 99 387 14 10.1% 0.7% 34.1% 3.7% NM 0.26x 7.0x 0.24x 4.6x
hhgregg, Inc. HGG 12.93 64.4% 482 28 5 504 2,387 106 20.1% 20.7% 29.0% 4.4% 11.9x 0.21x 4.8x 0.18x 4.6x
Hibbett Sports, Inc. HIBB 49.79 99.2% 1,317 2 53 1,267 733 107 10.2% 9.1% 35.6% 14.6% 24.9x 1.73x 11.9x 1.63x 11.1x
Jasmine International Public Co. Ltd. JAS 0.07 52.6% 483 138 45 575 302 121 (6.4%) 25.2% 47.3% 40.0% 22.0x 1.90x 4.8x NA NA
Lowe's Companies Inc. LOW 27.68 99.4% 34,671 6,615 969 40,317 50,208 4,856 2.9% 1.3% 34.8% 9.7% 20.3x 0.80x 8.3x 0.80x 7.6x
Lumber Liquidators Holdings, Inc. LL 21.70 74.9% 602 0 38 565 682 51 9.9% 12.2% 34.9% 7.5% 25.8x 0.83x 11.0x 0.77x 8.8x
Marinemax Inc. HZO 8.60 80.9% 201 130 14 318 480 (1) 8.7% (14.6%) 25.3% NM NM 0.66x NM 0.63x 27.1x
Movado Group, Inc. MOV 20.44 99.7% 509 0 138 371 447 17 23.0% (4.0%) 50.2% 3.8% NM 0.83x 21.7x NA NA
Office Depot, Inc. ODP 3.26 97.3% 914 683 453 1,145 11,490 303 (1.2%) (7.5%) 29.4% 2.6% NM 0.10x 3.8x 0.10x 3.5x
PetSmart, Inc. PETM 54.90 98.4% 6,128 564 291 6,402 6,113 740 7.4% 6.5% 34.6% 12.1% 22.7x 1.05x 8.7x 1.00x 8.5x
Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2012E
Consumer and Retail
Industry Update
March 2012
12 of 16
Price at As a % of Market Cash & Enterprise LTM P/E
($ in millions, except per share data) Ticker 2/17/12 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA
Specialty & Other Retail (Cont.)
RadioShack Corp. RSH $7.88 47.2% $787 $666 $668 $785 $4,378 $275 2.6% 1.2% 43.1% 6.3% 6.8x 0.18x 2.9x 0.18x 3.9x
Regis Corp. RGS 17.88 92.3% 1,013 293 83 1,223 2,305 200 (1.1%) (2.1%) 37.1% 8.7% NM 0.53x 6.1x 0.53x 5.6x
Rite Aid Corp. RAD 1.60 97.6% 1,438 6,312 148 7,601 25,431 769 0.8% (1.2%) 26.4% 3.0% NM 0.30x 9.9x 0.29x 7.7x
Staples, Inc. SPLS 15.15 67.3% 10,596 1,987 1,060 11,523 25,022 2,110 1.9% 2.7% 30.1% 8.4% 11.0x 0.46x 5.5x 0.46x 5.5x
Steiner Leisure Ltd. STNR 50.87 95.2% 762 0 70 692 702 75 13.1% 9.1% 24.5% 10.7% 15.0x 0.99x 9.2x 0.89x 7.8x
The Home Depot, Inc. HD 46.71 100.0% 72,007 10,783 2,234 80,556 70,395 8,343 3.5% (0.4%) 34.4% 11.9% 20.1x 1.14x 9.7x 1.13x 9.4x
Tiffany & Co. TIF 66.28 78.4% 8,415 709 297 8,826 3,557 892 19.9% 5.1% 59.2% 25.1% 19.4x 2.48x 9.9x 2.32x 9.5x
Tractor Supply Company TSCO 82.76 95.0% 5,878 1 177 5,702 4,233 434 16.3% 12.1% 33.2% 10.2% 27.5x 1.35x 13.2x 1.23x 11.5x
Vitamin Shoppe, Inc. VSI 43.36 89.7% 1,256 20 25 1,251 857 98 14.0% 12.5% 42.7% 11.4% 30.9x 1.46x 12.8x 1.36x 11.4x
Walgreen Co. WAG 34.71 73.7% 30,319 2,401 1,094 31,626 72,997 5,094 6.7% 6.8% 28.3% 7.0% 11.7x 0.43x 6.2x 0.44x 6.4x
Zale Corporation ZLC 3.40 49.3% 109 494 30 573 1,804 35 8.8% (3.0%) 51.1% 1.9% NM 0.32x 16.3x 0.31x 10.4x
Mean 80.1% 8,631 1,505 417 9,719 15,336 1,232 7.0% 4.4% 35.6% 9.1% 18.8x 0.81x 9.5x 0.74x 8.1x
Median 84.2% 964 216 111 1,193 2,477 187 6.9% 3.9% 34.5% 7.4% 20.1x 0.64x 8.4x 0.55x 7.7x
Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2012E
March 2012
M&A
Detail
Recent North
American
Consumer
M&A
Enterprise Enterprise Value Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
3/12/2012 Midas Inc. GAMCO Investors TBC Corporation $268.5 1.46x 10.3x 14.7x P
3/12/2012 Great Wolf Resorts BAMCO / HG Vora Capital Apollo Global Management $648.5 2.19x 8.4x 28.1x P
3/12/2012 WorldWide Wireless - Everybody's Phone Co. - - - -
3/12/2012 Golf Card International Good Sam Enterprises Simmons Venture Group - - - -
3/10/2012 YTB International - LTS Nutraceuticals - - - -
3/8/2012 New Tropicana Club - The ONE Group - - - -
3/8/2012 John Varvatos VF Sportswear, Inc. Lion Capital LLP - - - - P
3/7/2012 High Five Products - BarrierSafe Solutions - - - -
3/7/2012 Real Real 2020 Ventures, LLC Expansion VC, LLC - - - - P
3/6/2012 Zaldiva Summit Group of Companies Cygnus Internet, Inc. - - - - P
3/5/2012 T2 Wireless - Z Wireless - - - -
3/5/2012 Interactive Optics - EndoChoice, Inc. - - - -
3/4/2012 Riverboat Corporation of MS Isle of Capri Casinos, Inc. Golden Nugget, Inc. $45.0 - - -
3/2/2012 OSMOTICS - BHMS Investments - - - -
3/1/2012 A-Line Acoustics - Atlas Sound LP - - - -
3/1/2012 Lebanon Raceway Miami Valley Trotting Inc. Miami Valley Gaming & Racing $70.0 - - -
2/29/2012 Passageways Travel - Altour International - - - -
2/28/2012 Central Parking Corporation Kohlberg & Company Standard Parking Corp. $345.1 0.64x 10.0x - P
2/28/2012 Quaker City Motor Parts - Genuine Parts Company - - - -
2/27/2012 General Workings, Inc. Battery Ventures Rent2Buy, Inc. - - - - P
2/27/2012 Glass Specialty Company - Guardian Auto Glass - - - -
2/24/2012 The Hip Chick, LLC - Skye Associates - - - -
2/23/2012 Send the Trend, Inc. Battery Ventures QVC, Inc. - - - - P
2/23/2012 ICA Home Décor - JLA Home, Inc. - - - -
2/21/2012 Herborium Group - China Health Resource - - - -
2/21/2012 Prestige Brands Holdings Wells Fargo Funds Genomma Lab Internacional $1,262.4 3.13x 10.6x 11.6x P
2/20/2012 Mikes Feed Farm - Phillips Feed Service, Inc. - - - -
2/17/2012 Nixon, Inc. Billabong Trilantic Capital Management $553.4 - - - P
2/15/2012 Skyway Luggage Company - Ricardo Beverly Hills - - - -
2/13/2012 US Marine Lights - Warrior Girl Corp. - - - -
2/10/2012 Sycamore Ventures, Inc. - Aero Financial - - - - P
2/8/2012 Red Rock Products, Inc. - Shockoe Commerce Group - - - -
2/6/2012 FilzFelt, Inc. - Knoll Inc. - - - -
2/6/2012 Richard Schultz Design, Inc. - Knoll Inc. - - - -
2/3/2012 Swank Inc. New Swank Inc. Randa Corp. $72.4 0.53x 6.8x 7.0x
2/1/2012 United Retail Group, Inc. Redcats USA Versa Capital Management - - - - P
1/31/2012 Quartermaster, Inc. Parallel Investment Galls - - - - P
1/30/2012 Drug Trading Company The Katz Group Mckesson Canada $915.4 - - -
1/30/2012 Beyond a Bag Connect Concepts, Ganz - - - -
1/29/2012 Pep Boys - Manny, Moe & Jack North Run Capital The Gores Group $1,043.5 0.51x 6.4x 12.3x P
1/27/2012 CastAway Fishing Products - Fish-N-Hunt - - - -
1/26/2012 Vacances Tours Mont-royal - Transat AT - - - -
1/26/2012 East Coast Temporary Tattoos - Tattoo Manufacturing - - - -
1/20/2012 Cellar Thief, LLC - Good Company Wines - - - -
1/17/2012 Naked Boxer Brief Clothing Inc. - Headlines.com - - - -
1/17/2012 Aviva Sports, Inc. ShoreMaster, Inc. Rave Sports, Inc. $0.3 - - -
1/16/2012 Burlington Basket Company - LaMont Limited - - - -
1/12/2012 Opa Cove, LLC - Swimways Corporation - - - -
1/12/2012 Gunther's Athletic Service, Inc. - Riddell Sports Group, Inc. - - - -
1/12/2012 Mindnautilus.Com Corporation - School Health Corporation - - - -
1/10/2012 Cabinotch - Columbia Forest Products - - - -
1/10/2012 Cosmetic Labs of America Alberto-Culver Company Visual Pak Company - - - -
1/9/2012 Skagen Designs, Ltd. - Fossil, Inc. $244.8 - - -
1/9/2012 HopBet Inc., Fire Bet Hopbet Inc. Shuffle Master Inc. - - - -
1/6/2012 Colorescience VMG Partners SkinMedica, Inc. - - - - P
1/6/2012 Robar, Inc. - Cutie Pie Baby, Inc. - - - -
1/5/2012 Grabber Inc. - Kobayashi Pharmaceutical Co. Ltd. - - - -
1/4/2012 VyMaC Corporation - Marcus Investments LLC - - - - P
1/4/2012 Barnes & Wagner, LLC - Edenvale Shoppes, LLC - - - -
1/4/2012 Carolina Safety Sport International LLC - Safety Supply Corp. - - - -
1/4/2012 Onkyo USA Corporation Onkyo Corp. Gibson Guitar Corp. $17.5 - - -
1/3/2012 Deezfit, LLC - Activewear Brands LLC - - - -
1/3/2012 Palm Beach Specialty Coffee, LLC - Sipp Industries, Inc. - - - -
12/29/2011 Allied Trade Group, Inc. - Lowe's Companies Inc. - - - -
12/25/2011 Baby Trend, Inc. - GIA Investments Corp. $45.0 - - - P
12/23/2011 Parlux Fragrances Inc. Wells Fargo Investments Perfumania Holdings, Inc. $165.6 1.28x 47.3x 134.0x P
12/22/2011 Sporting Life, Inc. - Fairfax Financial Holdings Limited - - - - P
12/21/2011 PACT Apparel, Inc. - Revelry Brands - - - -
12/16/2011 SendFlowers.com Stanley Flowers From You Flowers, LLC - - - -
12/13/2011 Boot Barn, Inc. Marwit Capital Freeman Spogli & Co. - - - - P
12/12/2011 Dream Weaver Carpet Industries, Inc. - Engineered Floors, LLC - - - -
12/9/2011 Driven Brands, Inc. Carousel Capital Harvest Partners, LLC - - - - P
12/9/2011 VE Holdings, Inc. - Sunwing Travel Group Inc. - - - -
12/9/2011 ID8-Mobile, LLC - AAC Technologies Holdings Inc. - - - -
12/8/2011 ALC-Partner, Inc. CHS Capital Versa Capital Management, Inc. - - - - P
12/8/2011 Specialty Products of America, LLC - Swisher Hygiene Inc. $0.9 - - -
13 of 16
March 2012
M&A
Detail
Recent North
American
Consumer
M&A
(continued)
Enterprise Enterprise Value Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
12/6/2011 The Talbots Inc. - Sycamore Partners $356.6 0.31x 29.9x - P
12/6/2011 Nutra Research International Ltd. - Abattis Biologix Corporation - - - -
12/6/2011 FURminator, Inc. Cardinal Equity Partners United Pet Group, Inc. $140.0 3.50x - - P
12/5/2011 PUR Water Purification Products, Inc. Procter & Gamble Co. Helen of Troy Limited $160.0 - - -
12/2/2011 Golden Sun, Inc. Parallel Investment Partners Brynwood Partners - - - - P
12/1/2011 Cruise Shoppes America Ltd. - Vacation.com, Inc. - - - -
12/1/2011 Paris Glove of Canada Ltd. - New Wave Group AB $16.2 0.59x - 5.9x
11/30/2011 Discover Tour Guides - Webeez, Inc. - - - -
11/30/2011 Swimwear Etc. Ltd. - Swimco Inc. - - - -
11/21/2011 Silvermark - Trudeau Corporation - - - -
11/21/2011 Orbit Baby, Inc. - The ERGO Baby Carrier $17.5 - - - P
11/16/2011 Emotion Kayaks, Inc. - Lifetime Products, Inc. - - - -
11/15/2011 American Pest Control - Massey Services, Inc. - - - -
11/15/2011 Iron Stop, Inc. - Woodstream Corporation - - - - P
11/14/2011 Handi Quilter, Inc Hanover Partners High Road Capital Partners - - - - P
11/9/2011 Peggy Knight Solutions, Inc. - Follea, Inc. - - - -
11/9/2011 Olan Mills, Inc. - Lifetouch Inc. - - - -
11/9/2011 Pacific Biosciences Rosewood Capital L'Oreal USA, Inc. - - - - P
11/8/2011 Jean Genie Studio, Inc. - Omni Ventures - - - -
11/8/2011 Motion Specialties Inc. The Motion Group Centric Health Corporation - - - -
11/8/2011 Kobo, Inc. Indigo Books & Music Rakuten $315.0 - - -
11/7/2011 ABRA, Inc. GE Equity Palladium Equity Partners - - - - P
11/7/2011 Allergy Control Products, Inc. Planet Biopharmaceuticals RH Allergy Acquisition - - - -
11/4/2011 W.E. Bassett Company - Pacific World Corporation - - - -
11/3/2011 CFM Consulting - Gold's Gym International - - - -
11/3/2011 Five Ten U.S. - Adidas AG $25.0 - - -
11/2/2011 Oneida Ltd. - Monomoy Capital Partners - - - - P
10/26/2011 CozyBoots, Inc. - Shoebuy.com, Inc. - - - -
10/24/2011 Security Forces Inc. - Universal Protection Service - - - -
10/24/2011 GLJ, LLC - Waveland Investments - - - - P
10/21/2011 Cardpool, Inc. Y Combinator Blackhawk Network, Inc. - - - - P
10/20/2011 B.O.B. Trailers, Inc. - Britax Childcare Holdings - - - -
10/17/2011 Southern Sales & Marketing - Ames True Temper, Inc. $23.0 0.58x - -
10/17/2011 West Coast Laundry - Swisher Hygiene Inc. - - - -
10/17/2011 Trivani International - ARIIX Holding, LLC - - - -
10/14/2011 Ideal Image Development H.I.G. Capital STEINER $175.0 - - - P
10/13/2011 Echo Specialty Pharmacy - Salveo Specialty Pharmacy - - - -
10/12/2011 Premier Nutrition - Joint Juice, Inc. - - - -
10/12/2011 Twisted Pixel Games - Microsoft Studios - - - -
10/12/2011 Westcoast Contempo Fashions Liz Claiborne Inc. KMJ Brand Holdings - - - -
10/11/2011 Dana Buchman Liz Claiborne Inc. Kohl's - - - -
10/11/2011 99¢ Only Stores PRIMECAP Ares Management $1,368.7 0.95x 9.4x 11.7x P
10/7/2011 Integrity Building Systems - Icon Legacy Custom Modular Homes - - - -
10/4/2011 WorldStrides, LLC Charlesbank Capital Partners The Carlyle Group - - - - P
10/3/2011 Dunning Sportswear - Tharanco Lifestyle - - - -
10/3/2011 Galls ARAMARK CI Capital Partners - - - - P
10/3/2011 AC Moore Arts & Crafts Glenhill Capital Management LLC SBAR'S $43.5 0.10x - - P
10/3/2011 Craftmade International - Litex Industries, Limited $64.5 0.51x 53.5x 203.4x
10/3/2011 Cyber Supply, Inc. - Wireless Investment Fund $0.2 - - - P
10/1/2011 Prime Table Games - Galaxy Gaming $22.6 - - -
9/30/2011 Full Tilt Poker - Groupe Bernard Tapie - - - -
9/29/2011 Trophy-Craft - Monarch Trophy & Awards - - - -
9/29/2011 Litter Free Lunch - New Wave Enviro Products - - - -
9/27/2011 118Boardshop.com - LeftLane Sports, Inc. - - - -
9/26/2011 Ray Cook Golf, Inc. - TGIB Marketing, Inc. - - - -
9/24/2011 Sligh Furniture Company - Lexington Furniture - - - -
9/13/2011 JAKKS Pacific, Inc. - Oaktree Capital Management, L.P. $387.7 0.52x 4.7x 7.0x P
9/12/2011 Evriholder Products, LLC Centerfield Capital Partners ClearLight Partners LLC - - - - P
9/7/2011 Atlantic Pest Solutions Inc. - HomeTeam Pest Defense, Inc. - - - -
9/6/2011 Nature's Instincts, Inc. - United Treatment Centers, Inc. - - - -
9/6/2011 WineDirect 1-800-Flowers.com Inc. WineDirect, Inc. $13.5 0.74x - -
8/31/2011 Raceready, Inc. - Ohayo Sangyo - - - -
8/30/2011 Kitter Corporation - Swisher Hygiene Inc. - - - -
8/29/2011 Joby, Inc. - DayMen Photo - - - -
8/27/2011 Adventure Cell Corp. Adventure Cell Corp. GlobaFone, Inc. - - - -
8/25/2011 The Basketball Marketing Co. American Sporting Goods Co. Galaxy International LLC $55.0 - - -
8/24/2011 Alberto-Culver Company Alberto-Culver Company Brynwood Partners - - - - P
8/24/2011 CamelBak Products, LLC CBK Holdings LLC Compass Diversified $245.0 2.00x - - P
8/23/2011 Munitio, Inc. - Bensussen Deutsch - - - -
8/23/2011 LuckyVitamin.com - GNC Holdings Inc. - - - -
8/22/2011 Online Deals, LLC - Spaphile, Inc. - - - -
8/22/2011 City Cycle, Inc. - Backcountry.com, Inc. - - - -
8/21/2011 USPT, LLC - DoMark International, Inc. $0.2 - - -
8/19/2011 Surgeon Rifles, Inc. - Strategic Armory Corps. - - - -
8/18/2011 Venda Wash Coin Laundry Systems Inc. - Coinamatic Canada Inc. - - - -
8/17/2011 Boston Proper, Inc. - Chico's FAS Inc. $205.0 1.86x - -
8/16/2011 Great Wall Builders Ltd. - Groveware Technologies, Inc. - - - -
14 of 16
March 2012
Glenn Gurtcheff Managing Director
+1 (612) 359-2702
Ryan Budlong Vice President
+1 (612) 359-2722
Jeff Cleveland Vice President
+1 (612) 359-2703
Tim Alexander Managing Director
+1 (612) 359-2716
HW&Co.
Consumer
Team
Recent North
American
Consumer
M&A
(continued)
M&A
Detail
Enterprise Enterprise Value Private Equity
Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement
8/16/2011 William Ashley China Ltd. McLean Watson Capital Fairfax Financial Holdings Limited - - - - P
8/11/2011 RallyJungle, LLC - Anaconda Sports, Inc. - - - -
8/10/2011 Linea Marketing Group, Inc. Covington Capital Corporation AZ Home & Gifts - - - - P
8/9/2011 Boon, Inc. and Keen Distribution - Tomy International Inc. $20.7 - - -
8/9/2011 MIMA Towel and Supply LLC - Golden Star Inc. - - - -
8/8/2011 Danielson Designs, Ltd. - Ganz, Inc. - - - -
8/4/2011 Botanical Science, Inc. - IMD Companies, Inc. - - - -
8/3/2011 SaveDirectRx, Inc. - SXC Health Solutions - - - -
8/1/2011 Bailey Street Holding Company Red River Ventures Mount Summit Lighting - - - - P
8/1/2011 The Resort Company LLC Tonka Bay Equity Partners Resort Rental, LLC - - - - P
7/29/2011 Charles Ogilvy Limited Fonds de solidarité FTQ Selfridges Group Limited - - - - P
7/29/2011 Pilgrim Mat Services, Inc. - Swisher Hygiene Inc. $3.1 - - -
7/28/2011 Uniktour Inc. - Voyageurs du Monde - - - -
7/26/2011 Zobha, LLC - Kellwood Company - - - -
7/25/2011 Kennel-Aire, LLC - Doskocil Manufacturing Co. - - - -
7/21/2011 Bio Fusion Corporation - Union Equity Inc. - - - -
7/20/2011 Renegade Holdings, Inc. - CB Holdings, LLC $15.6 - - -
7/18/2011 Pet Supply House Ltd. - Ren's Feed & Supplies Ltd. - - - -
7/18/2011 Ahead, Inc. - New Wave Group AB $22.4 0.70x - 8.3x
7/15/2011 Ortho Dermatologics, Inc. Ortho-McNeil-Janssen Valeant International $345.0 2.30x - -
7/14/2011 Clorox Corporation - Icahn Enterprises, L.P. $13,051.9 2.38x 10.7x 12.5x P
7/11/2011 Nulco Mfg. Corp. - ELK Lighting, Inc. - - - -
7/11/2011 MT Industries, Inc. EFO Holdings, L.P. The Riverside Company - - - - P
7/11/2011 Hyatt Hotels Corporation, Certain Assets Hyatt Hotels Corporation Noble Investment Group $183.3 - - - P
7/8/2011 Miller's Cats, LLC - For The Earth Corp. - - - -
7/7/2011 Outdoor Outlet, LLC - Specialty Sports Venture LLC - - - -
7/7/2011 KO Sailing, Inc. - Dinghy Planet, LLC - - - -
7/6/2011 Chemguard, Inc. - Tyco International Ltd. - - - -
7/5/2011 Sumiko, Inc. - Fine Sounds Spa - - - -
7/5/2011 Jones & Mitchell Sportswear, Inc. Augusta Sportswear, Inc. Boxercraft Inc. - - - - P
7/5/2011 Avaline Gila Group LLC - Camsing Global, LLC - - - -
7/5/2011 Flipswap Services, LLC - Brightstar Corp. - - - -
7/5/2011 Jones & Mitchell Sportswear Augusta Sportswear, Inc. Boxercraft Inc. - - - -
7/1/2011 Bernz O Matic Corp. IRWIN Industrial Tool Company Worthington Industries - - - -
6/30/2011 Borders Group, Inc. Pershing Square Capital Direct Brands, Inc. $408.3 0.18x - - P
6/28/2011 BJ's Wholesale Club Inc. - CVC Capital Partners $2,626.9 0.24x 6.8x 10.3x P
6/27/2011 Lawn Solutions Commercial - Toro Co. - - - -
6/26/2011 Deb Shops, Inc. GB Merchant Partners, LLC Lee Equity Partners LLC - - - - P
6/25/2011 G&B Marketing Inc. - Contech Enterprises Inc. - - - -
6/24/2011 Tri-Tronics, Inc. - Garmin Ltd. - - - -
6/23/2011 Winchester Security - Bates Security LLC - - - -
6/21/2011 iFrogz Inc. Reminderband, Inc. ZAGG Incorporated $108.9 2.66x - -
6/21/2011 Edward Roberts International - Acker Merrall & Condit - - - -
6/20/2011 Bonnie Togs Children's Wear - The William Carter Company $97.7 0.95x - -
6/20/2011 Rosewood Hotels and Resorts Maritz, Wolff & Co. New World Hospitality $229.5 - - -
6/17/2011 Stromgren Athletics Inc. - Cramer Products, Inc. - - - -
6/17/2011 Cedar Fresh Home Products - Household Essentials, LLC - - - -
6/16/2011 Alberto Culver, Soap Business Alberto-Culver Company Lornamead, Inc. - - - -
6/15/2011 H3 Sportgear, LLC - Mainland Headwear - - - -
6/14/2011 MarketLab, Inc. - Water Street Healthcare - - - - P
6/12/2011 Timberland Co. - V.F. Corporation $1,960.3 1.34x 12.3x 14.7x
6/10/2011 TheSampleSale.com - The SWI Group - - - -
6/9/2011 Buckeye Corner, Inc. - LIDS Team Sports - - - -
6/8/2011 Complete Petmart, Inc. - PETCO Animal Supplies, Inc. - - - -
15 of 16
Brant Cash Vice President
+1 (612) 359-2709
March 2012
Sources:
Capital IQ.
Thomson Financial.
S&P.
Reuters.
Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC),
is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep
industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co.
provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital
markets advisory services.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA
and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Services Authority (FRN
#540892). Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd
conduct business in the U.S. and Europe, respectively.
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS
AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-
PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY
WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS
OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY
OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL
STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR
ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS
PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT +1-804-648-0072.
The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is
not a research report, as such term is defined by applicable law and regulations, and is provided for informational
purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial
instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris
Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such
information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to,
have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have
provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or
its affiliates or their respective officers, directors and employees may hold long or short positions in the securities,
options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections
in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments
discussed in this report may not be suitable for all investors, and investors must make their own investment decisions
using their own independent advisors as they believe necessary and based upon their specific financial situations and
investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may
be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
Copyright © 2012 Harris Williams & Co., all rights reserved.
Consumer and Retail
Industry Update
16 of 16