Lakeland Industries (LAKE) MS Microcaps Virtual Conference summary

Strategic transformation and growth trajectory

• Significant shift in strategy and mission since August 2023, including multiple global acquisitions to become a top-five fire safety provider in the US and globally.

• Assembled a new, experienced executive team to drive growth and integration, with key hires in revenue, commercial, and HR leadership.

• Expanded manufacturing footprint from five to ten facilities, enhancing flexibility and tariff management, especially with US-based production.

• Name change to Lakeland Fire and Safety to better reflect business focus and improve market perception.

• Ongoing efforts to add new analyst coverage and increase investor engagement.

Financial performance and capital strategy

• Revenue grew from $107 million in 2020 to nearly $170 million, with consistent profitability in recent years.

• Recent $46 million equity offering was four times oversubscribed, providing capital for further M&A and balance sheet deleveraging.

• Immediate paydown of $42–$43 million in debt, resulting in instant interest savings and restored credit facility capacity.

• Acquisitions completed at attractive multiples, with $70 million spent for nearly $100 million in revenue.

• Targeting mid to high teens adjusted EBITDA margin over a three to five-year horizon, with margin improvements expected from integration and ERP upgrades.

M&A and operational integration

• Acquired Pacific Helmets, Jolly Scarpe Boots, LHD, and Veridian, expanding product offerings and geographic reach.

• Veridian acquisition added US manufacturing and a strong brand, with no customer overlap and cross-selling opportunities.

• Focused on integrating acquisitions, optimizing operations, and leveraging talent from acquired companies.

• Service business (laundry/decontamination) identified as a high-margin, recurring revenue opportunity, with plans to expand in North America.

• Synergies expected from cross-manufacturing, ERP system unification, and leadership specialization in fire and industrial segments.