dolla
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DSC annualTRANSCRIPT
SEPERATING THEBOYS FROM THE
MEN
2013 Dollar Shave Club Annual Report
ABOVE
We demonstrated our ongoing
commitment to innovation with
theintroduction of significant new
products, specifically the Dollar
Shave Club® shaving system, a
product that is redefining the wet
shave market. Dollar Shave Club is
an important new growth platform
for us, and we are very pleased with
its initial acceptance. Finally, fiscal
2010 marked our tenth year as a
public company. Over that period, our
revenues have more than doubled,
from nearly $2 billion in 2000 to more
than $4.2 billion in 2010, a compound
annual growth rate of over 8%. And
since our spin-off in 2000, earnings
per share increased at a compound
annual growth rate of 12%. And that
performance has been recognized by
the market: $100 invested in our stock
when we started trading in March of
2000 was worth more than $280 at
the end of our 2010 fiscal year.
Dow Jones Industrial Average would
have had only a 2% annual return.
Our blades are
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FUCKING GREAT.
ABOVETheRest
Letter from the CEO
The Bare Necessities
The Humble Twin
4X
The executive
Financials
Video Marketing
96%Swag
98%manly
97%badass
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w
Letterfrom the
The Dollar Shave Club had a year of notable
accomplishments. Our commitment to the everyday
man and his facial hair is top priority. The size of
your wallet is also a priority, and at the DSC, we want to
ensure that you get the satisfaction you are looking for.
So sit back and relax. Let us send you the best razors
you’ll ever use.
Michael DubinChief Executive Officer
CEOTo our sharholders
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w
Letter
CEO
Your handsome ASSgrandfather had one blade... and polio.
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And do you think your razor needs a vibrating handle, a flashlight,a back-scratcher& TEN BLADES?
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shopping trips, he and his team gained a
deep understanding of the role shaving
plays in the l ives of Indian men. Their
collective understanding directly shaped
the design, manufacturing and marketing
of The Dollar Shave Club products.
Launched in 2011, The Dollar Shave Club
launched their three, affordable and
reliable products, The Humble Twin, The 4X,
and The Executive: all of which can be
sent to the home of the shaver.
In the United States, nearly half a billion
men shave with new technology — the
vibrating razor — because they don’t
know any better. To add to the inevitable
risk of unaffordable razors, many men
have to take time out of their day to
get more razor heards. It’s an intense,
tedious and time-consuming process.
CEO, Michael Dubin traveled across the
country, studying men’s shaving patterns
that shave in these conditions every day.
In thousands of interviews, home visits and
PRODUCTS
PRODUCTS
BareNecessities
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Within 3 months after it launched,
The Dollar Shave Club became the
best-selling razor in America. Within
the first 8 months of launch, 11 million
men had tried DSC, with 89% of men
saying DSC leaves fewer nicks and
cuts and 73% saying they feel safer
using The Humble Twin than
double-edge razors.
Today, more than half of the razors sold
in America are DSC — which is helping
to drive the share of our entire lineup of
products sold in America: The Humble
Twin, The 4X, and The Executive. The
Humble Twin, the simplest of heads,
provides an affordable, but accurate
shave for the average joe users that
want a great shave.
THE
HUMBLETWIN TWIN
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HUMBLE
PRODUCTS
I’m no vanderbilt,but this train makes hay.
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4XTHE
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The 4X offers a 4-blade
refillable, disposable option
to help guys feel their best and
look manly as ever. Owning the
most cutting-edge Dollar Shave Club
technology available, the 4X is the
best option at only $9.99 a month. The
new 4X features a Shave & Groom Kit
with interchangeable heads that easily
click on and off, so guys can switch
from facial styling to body grooming
without breaking their stride, as well as
a standalone facial shaver, multipurpose
trimmer, facial hair detailer and
bodygroomer.
“DSC is constantly striving
to meet the is fullest potential of
consumers’ grooming needs, and
shaving tools to the new DSC razor
collection,” said Dubin.
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PRODUCTS
EXECUTIV
E
For our most passionate facial hair product
consumers around the world, having great
facial hair ranks right up there with great
teeth and clothes. They believe that taking
good care of their beard is as much about
beauty as it is about hygiene. Beyond having
healthy facial hair, they want a cut that really
turns heads. It’s often unclear which products
work best — and if any of them work well
together. This insight led to a simple idea:
Combine Dollar Shave Club’s best razor
head technologies into an affordable razor
that’s easy to identify and provides swift,
brilliant results when used. This is called
The Executive. From product formulation
to packaging, The Executive consistently
designed the facial hair regimen to
communicate one clear benefit — a beard
that turns heads. Dollar Shave Club launched
more products under to meet consumers’
needs — like The Humble Twin, but The
Executive delivers the strongest results.The
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PRODUCTS
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2012 financial report
spending $20 a month
And do you like
on brand name razors??
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Cash and cash equivalents $ ` 629.7
Trade receivables, net 24.8
Inventories 666.3
Other current assets 308.7
Total current assets 2,429.5
Property, plant and equipment, net 840.6
Goodwill 1,316.4
Other intangible assets, net 1,774.2
Other assets 27.2
Total assets 6,387.9
Current maturities of long-term debt 266.0
Notes payable 24.9
Accounts payable 271.0
Other current liabilities 691.6
Total current liabilities 1,253.5
Long-term debt 2,022.5
Other liabilities 1,012.3
Total liabilities 4,288.3
Additional paid-in capital 1,569.5
Retained earnings 2,353.9
Accumulated other comprehensive loss (157.3)
Total shareholders' equity 2,099.6
Total liabilities and shareholders' equity 6,387.9
ASSESTS IN THOUSANDS 2012
Liabilities IN THOUSANDS 2012
Shareholder's equity in tHOUSANDS 2012
Financials
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Net earnings 403.0
Depreciation and amortization 139.2
Deferred income taxes (1.3)
Other non-cash charges 71.9
Other, net 12.8
Operating cash flow before changes in working capital 625.6
(Increase)/decrease in accounts receivable, net (26.4)
(Increase)/decrease in inventories 21.8 29.5
Decrease/(increase) in other current assets 1.4
Increase/(decrease) in accounts payable 41.3
Increase/(decrease) in other current liabilities 12.8
Net cash flow from operations 652.4
Capital expenditures (108.7)
Proceeds from sale of assets 0.8
Acquisitions, net of cash acquired (1,882.1)
Proceeds from share options 46.0
Other, net (5.4)
Net cash used by investing activities (113.3)
Cash Flow from Operations 2012
Cash flow from finacial Activities 2012
Cash flow from investing activites 2012
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Net earnings 403.0
Depreciation and amortization 139.2
Deferred income taxes (1.3)
Other non-cash charges 71.9
Other, net 12.8
Operating cash flow before changes in working capital 625.6
(Increase)/decrease in accounts receivable, net (26.4)
(Increase)/decrease in inventories 21.8 29.5
Decrease/(increase) in other current assets 1.4
Increase/(decrease) in accounts payable 41.3
Increase/(decrease) in other current liabilities 12.8
Net cash flow from operations 652.4
Capital expenditures (108.7)
Proceeds from sale of assets 0.8
Acquisitions, net of cash acquired (1,882.1)
Proceeds from share options 46.0
Other, net (5.4)
Net cash used by investing activities (113.3)
FINACIALS
19 go to roger federer. I’m good at tennis.
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We’re dollar shave club and
the party is on.
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the party is on.
Viral Video Marketing
After launching a beta version in April
2011, DollarShaveClub.com, a Santa
Monica-based subscription razor
service that aims to take on industry
giants such as Gil lette, officially
opened for business last week. Of all
the products in the marketplace, why
did the startup decide to focus on
razors? “From the time that I was a
little boy, I’ve always been passionate
about shaving,” Michael Dubin, Dollar
Shave Club’s co-founder and CEO,
deadpans in his best formal Serious
American Executive voice, before
laughing off the idea.
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www.dollarshaveclub.com