summer infant investor presentation - november 2016

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November 2016

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November 2016

Certain statements in this presentation that are not historical fact may be deemed “forward-looking

statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and Summer

intends that such forward-looking statements be subject to the safe harbor created thereby. Such

forward-looking statements include statements regarding the market position of Summer; the growth

prospects of Summer; anticipated sales and operating results; the development of new products;

demand for Summer’s products; and Summer’s business strategy. Summer cautions that these

statements are qualified by important factors that could cause actual results to differ materially from

those reflected by such forward-looking statements. Such factors include the concentration of

Summer’s business with retail customers; the ability of Summer to compete in its industry; Summer’s

dependence on key personnel; Summer’s reliance on foreign suppliers; the costs associated with

pursuing and integrating strategic acquisitions; the costs associated with protecting intellectual

property; and other risks as detailed in Summer’s Annual Report on Form 10-K for the fiscal year

ended January 2, 2016, and subsequent filings with the Securities and Exchange Commission. The

information contained in this presentation is accurate as of the date set forth on the cover page.

Summer assumes no obligation to update the information contained in this presentation.

Safe Harbor

2

Investor Highlights

Leading provider of juvenile products with strong, well-known brands and emerging sub-brands

• Summer - Monitors, Safety, Gear, & Bath

• SwaddleMe - Nursery

• Born Free - Feeding

Positive industry dynamics

• Stabilization of birth rates and 1st child spend are up

• More Millennial parents with higher disposable income

New management

• Enhanced experience across functional areas

• Focus on improving operating performance, and reducing debt

Expanding revenue potential

• Focus on consumer driven innovation in core categories

• International markets and specialty retail

Earnings expansion underway

• Streamlined operations

• Exited poorly performing products / licensing arrangements

• Focus on high-margin categories and effective pricing strategies 3

Business Overview

Unique Positioning

to Meet Moms Needs

Brand

KeyCategories

Creating a safe, calm feeding

experience

Innovative Care & Safety

products that provide

peace of mind

The authority on safe sleep

A Portfolio of A Portfolio of A Portfolio of A Portfolio of SSSStrong trong trong trong BBBBrands with Focus on Key Parenting Needsrands with Focus on Key Parenting Needsrands with Focus on Key Parenting Needsrands with Focus on Key Parenting NeedsServing Key Consumer Touch Points in Safety, Safe Sleep, and Feeding

Leveraging Brand Positioning, Breadth of Product Offering &

Innovation to Improve Consumer Relationship

Monitors

Gates

Bath & Potty

Strollers

Travel Accessories

Highchairs/Boosters

Swings/Bouncers

Bottles

Pacifiers

Teethers

Feeding

Electronics

Wearable Blankets

Infant Sleep Aids

Bedding

4

Business Overview

Turnaround Progressing

Streamlined, Focused Operations

• Exited non-core, low-margin areas & licensing

agreements

• Slashed $4M in annual costs

- G&A expenses down 25% versus 2015

• Reduced inventory 26% year-over-year, to lowest

level in recent memory

- Also improved quality of inventory

• Restructured credit facilities, saving $1M in cash

annually

• Now focused on high-margin, targeted growth

markets

• Continue to drive cash flow

• Further reduce debt and delever balance sheet

Summer Infant in Strong Position to Accelerate

Top Line Expansion5

Focus on Core Brands & Channel Diversification

Focus on Core Brands

• 2015 sales from core brands increased 6.1% on

a constant currency basis

• Reduction in lower profit licensed brands

• Product innovation focus on Summer,

SwaddleMe and Born Free brands and sub

brands

• Goal of new product introductions each year

representing at least 20% of annual revenue

Customer & Channel Diversification

• Top 7 customer; 73% 2015 vs. 74% 2014

• Increased focus and growth from e-commerce; up

15% year-over-year

• Future revenue opportunities identified in

International, emerging sub brands, and new

product introductions

• Working with select large retailers to enhance our

presence on their websites

• Working to improve mobile and e-commerce

capabilities on summerinfant.com

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

2012 2013 2014 2015

Sales by Brand

Summer Owned Brands Private Label Licensed Brands

All Other

6%

Baby Specialty

24%

Dept Stores

3%

Discount/Outlet

3%

E-Comm

23%

International

15%

Mass

23%

Specialty

3%

2015 Sales by Channel

Babies R Us

BuyBuyBaby

(Excl Drop-Ship)

Walmart (US)

Target (US)

(Excludes

.COM)

Canada

EMEA

APLAAmazon

Diapers.com, Zulily

(US & Int Retailers/Drop Ship)6

Monitors Expansion

Social Engagement

Content

Apps & Software

Expansion

Monitor

Nursery

Feeding

Safety

On-the-Go

Demonstrated Strength in New Product Development

Monitors

Product Refresh

& Expansion

SwaddleMe

Line Expansion

Refreshed Branding

Safety

“Pop” Sub Brand

New Gates &

My Size Potty

Gear

Stroller Line

Expansion and

New Products

2017 Opportunities

7

Product Priorities

Understanding Millennial Moms

59% bought a

product

recommended by

another mom on a

parenting site 44% make

purchases online

via their

smartphone

85% of the time

they spend

online is using

APPS

9,000 Babies each day are

born to our

Millennial Mom

Millennials

represent $170 billion in annual

purchasing power

Connected:

Texting, pinning, tweeting,

status updating; she

spends on average 17.4

hours a week on Social

media.

Believe strongly that recommendations

by other parents (46%)

and experts (35%) is

important

Share Everything/Share Often:

Online and in-person, she

talks about her product

experiences and solicits

feedback from her peers

when planning a purchase.

8*various sources and Company data

Understanding Millennial Moms

Retail Partners

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Summer Monitors

10

Wide View 2.0

• Large 5” color LCD video display

• Wide view lens technology

• Soft glow night light

• Automatic night vision

• Digital zoom

• Talk back to baby

• Sound lights

• Add up to 4 cameras

• 800ft range

• Adjustable swivel camera

• Table top or wall mountable

Wide view lens allows parent’s to see 4x more

of baby’s room

Summer Safety

� My Size Pottyo Look and feel of an adult toilet

o Helps ensure a comfortable and confident

transition to the real thing.

o Toilet handle makes a flushing sound

o With built in wipe dispenser

o Exceeding all expectations

o 4.3 stars on Amazon

� Waterfall Baby Bathero Soothing waterfall feature circulates water to

help clean and warm baby

o Removable bolster to support newborns

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Summer StrollersIn Industry Top Five in 3 Years

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3Dtote

• Convenience stroller with large storage

• XXL expandable storage basket

• Diaper bag hooks on handlebars

• Side & back storage pockets

• Cup holder, baby bottle holders, & toy loops

• 1 hand recline

• Large canopy with peek window

• Compact fold with auto-lock & carry strap

• Smooth glide wheels

• Super padded contoured hand grips

• Holds up to 50lbs

� SwaddleMe – 4 Stages of Swaddles

o SwaddleMe knows that when your baby sleeps

better, you sleep better. Our entire line of sleep

products has been expertly designed and tested to

keep babies snug, safe, and comfy every night

throughout their first year.

SAFER SLEEP. BRIGHTER DAYS.

SwaddleMe Wearable Blanket• Mother & Baby Awards, Best Newborn Sleep Aid – BRONZE 2010• She Knows Parenting Awards 2013• American Baby, BESTS 2013• Mom’s Choice Awards, SILVER 2015

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� Pop Line – Portable On The Go ProductsPop ‘n Jump is the perfect entertainer for parents and

babies on the go! It’s compact, light-weight folding frame

comes fully assembled and sets up in seconds.

• Pop ‘n Sit Portable Booster makes feeding time

easy with a removable, BPA free tray, innovative pop

and fold set-up, and over the shoulder carrying bag.

Rated 4.8 stars

• Pop ‘n Sit High Chair is perfect for dining on-the-go or

even in the patio with your little one. When your baby

needs a place to eat, just pop it open.

• Pop’n Play Ultimate Playard allows you to create a

safe portable play area for baby.

Consumer Digest Best Buy

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Recent Financials

Gross Margin Growth Year/Year

15

October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015

Net sales 48,552$ 50,205$ 148,797$ 155,025$

Cost of goods sold 33,026 34,600 101,344 108,674

Gross profit 15,526$ 15,605$ 47,453$ 46,351$

General and administrative expenses(1) 9,735 12,953 30,469 35,235

Selling expense 3,667 4,119 11,484 13,295

Depreciation and amortization 1,127 1,275 3,443 3,927

Operating income/(loss) 997$ (2,742)$ 2,057$ (6,106)$

Interest expense 633 589 1,901 2,753

Income/(loss) before taxes 364$ (3,331)$ 156$ (8,859)$

Income tax expense/(benefit) 131 (1,500) - (3,313)

Net income/(loss) 233$ (1,831)$ 156$ (5,546)$

Income/(loss) per diluted share 0.01$ (0.10)$ 0.01$ (0.30)$

Shares used in fully di luted EPS 18,581,824 18,309,381 18,454,926 18,239,490

(1) Includes s tock based compensati on expense

Three Months Ended Nine Months Ended

Balance Sheet

Restructured Debt, Reduced Inventory, and

Lowered Working Capital Over Past 12 Months16

October 1, 2016 January 2, 2016

(unaudited)

Cash and cash equivalents $ 1,011 $ 923

Trade receivables, net 37,295 40,514

Inventory, net 32,285 36,846

Property and equipment, net 10,673 12,007

Other intangible assets, net 17,983 18,512

Other assets 4,470 4,336

Total assets $ 103,717 $ 113,138

Accounts payable $ 25,550 $ 29,541

Accrued expenses 7,579 9,584

Current portion of long-term debt 4,500 3,318

Long term debt, less current portion (1) 43,921 48,767

Other long term liabilities 2,666 2,962

Total l iabilities 84,216 94,172

Total stockholders’ equity 19,501 18,966

Total l iabi lities and stockholders’ equity $ 103,717 $ 113,138

Adjusted EBITDA & EPS Reconciliation

17

October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015

Reconciliation of Adjusted EBITDA

Net income/(loss) (GAAP) 233$ (1,831)$ 156$ (5,546)$

Plus: interest expense 633 589 1,901 2,753

Plus: expense/(benefit) for income taxes 131 (1,500) - (3,313)

Plus: depreciation and amortization 1,127 1,275 3,443 3,927

Plus: non-cash stock based compensation expense 176 280 394 700

Plus: permitted add-backs 327 4,324 3,193 9,339

Adjusted EBITDA (Non-GAAP) 2,627$ 3,137$ 9,087$ 7,860$

Reconci liation of Adjusted EPS

Net income/(loss) (GAAP) 233$ (1,831)$ 156$ (5,546)$

Plus: permitted add-backs 327 4,324 3,193 9,339

Plus: unamortized financing costs - - - 428

Tax impact of items impacting comparabil ity (118) (1,946) (1,149) (3,493)

Adjusted Net income/(loss) (Non-GAAP) 442$ 547$ 2,200$ 728$

Adjusted Earnings per diluted share (Non-GAAP) 0.02$ 0.03$ 0.12$ 0.04$

Three Months Ended Nine Months Ended

Investor Highlights • Leading Designer &

Supplier of Juvenile

Products

• Strong Well-Known

Brands

• Positive Industry

Dynamics

• Experienced

Management Team

• Focused on Core

Strengths: NPD,

Leveraging our Brands,

and Operational

Excellence

• Targeted Growth

Strategies in all our

Product Categories

• 2016 Leverage

Infrastructure

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Use of Non-GAAP Financial Metrics

This presentation includes certain financial information not derived in accordance with generally

accepted accounting principles (“GAAP”). This presentation includes references to EBITDA, which is

defined as income before interest and taxes plus depreciation, amortization, deal-related fees and

non-cash stock option expense. Summer believes that the presentation of this non-GAAP measure

provides information that is useful to investors as it indicates more clearly the ability of Summer’s

assets to generate cash sufficient to pay interest on its indebtedness, meet capital expenditure and

working capital requirements and otherwise meet its obligations as they become due. This

presentation includes references to adjusted EBITDA and adjusted earnings per diluted share.

Adjusted EBITDA is defined as income before interest and taxes plus depreciation, amortization, non-

cash stock option expense and bank permitted add-backs.

Recipients of the presentation and other interested persons are advised to read all reports and other

filings made by Summer with the Securities and Exchange Commission under the Securities Act of

1933, as amended, and Securities Exchange Act of 1934, as amended, including, but not limited to,

Summer’s Annual Report on Form 10-K for the year ended January 3, 2015. You can obtain a copy of

any of these filings, without charge, by directing a request to Summer Infant, Inc., 1275 Park East

Drive, Woonsocket, RI 02895, or on the Internet at the SEC’s website, www.sec.gov.

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Thank You

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