| Safe Harbor This presentation and our commentary contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, forward-looking statements include, but are not limited to, statements relating to our future economic performance, business prospects, revenue, income, and financial condition; and statements preceded by, followed by, or that include the words “plans,“ expects," "believes," "intends," "will," "anticipates," “confident,” “strategy,” “continuing,” “to be,” “opportunity,” “well-positioned,” “excited about” and similar terms that relate to future events, performance, or our results. Examples of forward-looking statements in this presentation include, but are not limited to, statements about our sales pipeline gaining momentum, statements about favorable demographic trends continuing, statements about having mitigated risks present previously, statements regarding our expectation to experience quarter-to-quarter gross profit margin inconsistencies from mix and promotions, statements regarding the next phase of investments in training, sales management & additional sales reps, statements about achieving full manufacturing capability by the end of the fiscal second quarter, statements regarding the continued residual effects of lost customers due to the fire on sales, statements about our increasing optimism with respect to our fiscal 2015 net sales expectation, statements regarding John K. Morgan’s 10b5-1 plan, the timing of its execution and the resulting beneficial ownership, statements regarding possible benefits on raw materials purchases as a result of changing oil prices, and the timing of those benefits, statements about our intent to reduce overall inventories levels and utilize proceeds to further reduce net debt, and statements regarding low single digit revenue growth, gross profit margin of 46-48%, higher selling, distribution and administrative expenses, $6-7 million of interest expense, total capital expenditures of $25-$30 million and a tax rate of 36-38% for fiscal 2015. Our forward-looking statements are subject to certain risks and uncertainties that could cause actual results, expectations, or outcomes to differ materially from our historical experience as well as management's present expectations or projections. These risks and uncertainties include, but are not limited to: the ongoing impact of the fire that occurred at our aerosol manufacturing facility on May 23, 2014 on our financial results, operations and prospects; general economic conditions; the cost or availability of raw materials; competition in the markets we serve; our ability to realize anticipated benefits from strategic planning initiatives and the timing of the benefits of such actions; market demand and pricing for our products and/or services; our ability to maintain our customer relationships; and litigation and other contingent liabilities, such as environmental matters. A variety of other risks and uncertainties could cause our actual results to differ materially from the anticipated results or other expectations expressed in our forward-looking statements. A number of those risks are discussed in Part I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended August 31, 2014. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events. Reconciliations of non-GAAP measures referenced in this presentation to their nearest GAAP measure are included in the earnings press release available on the Zep Inc. website and at the end of this presentation. 2 © 2015 Zep Inc. - All rights reserved. |
