Talon International, Inc. (OTCQB: TALN) today discussed its
three-year growth plans and financial outlook at the Singular
Investor Conference in Beverly Hills, CA and in meetings with
investors.
Talon is a leading global supplier of custom zippers and apparel
accessories (“trim”) and provides a total solution for the design,
development, manufacturing and delivery of zippers and trim
products. Headquartered in Los Angeles, with regional offices
throughout North America, Europe and Asia, Talon supplies many of
the world’s most recognizable brands with zippers, customized trim
and TekFit© stretch technology products.
“Talon International’s rich brand heritage dates back to 1893
when the Talon branded zipper was created as the first sliding
zipper device, and 120 years later the brand continues to be a
leader and an innovator within the apparel industry,” said Lonnie
Schnell, Talon’s Chief Executive Officer. “We are the only
single-source partner for all apparel accessory needs. Our quality
products and commitment to extraordinary customer service
distinguish us from competitors in the highly-fragmented,
multi-billion dollar zipper and trim markets.
“Following a multi-year turnaround, Talon is profitable and on
track to deliver over $50 million of revenue in fiscal 2013,
reflecting a more than 15 percent increase over fiscal 2012.
Looking ahead, we are focused on executing our strategy for
sustained and profitable growth. Our growth initiatives include
cross-selling both zipper and trim products to our existing
customer base, developing new customer relationships, innovating
new products, expanding geographically and assessing product
alliances and tuck-in acquisitions to grow our business. We are
excited about the opportunities ahead for Talon and believe we are
well positioned to deliver profitable growth and to create value
for both our shareholders and our customers.”
Strategic Growth
Initiatives
Talon’s three-year strategic growth plan includes the following
key initiatives:
Expand Roster of Brands – Talon works to expand its roster of
brands by leveraging its strong relationships throughout the
apparel, retail and manufacturing industries. Talon believes its
U.S. and Europe presence is a significant competitive advantage in
winning and serving customers in these markets. The majority of
apparel manufacturing occurs in a variety of markets around the
world while most sourcing decisions are made in the U.S. and Europe
where the majority of the world’s leading apparel companies
maintain headquarters.
Increase Market Share and Sales with Current Customers – Talon
emphasizes cross-selling its products to current customers to
ensure the optimal utilization of its full line of services and
products. Through frequent communication, exchange of product
development ideas and sales visits with customers, Talon showcases
the breadth of its products and capabilities with the goal of
increasing customer penetration across all product lines.
Build Out Global Sales Team to Penetrate New and Existing
Markets – Talon has global reach through its sales and marketing
offices in the U.S., U.K., China, Hong Kong, Taiwan, India,
Bangladesh, Vietnam and Indonesia. The company has developed a
highly coordinated sales and marketing approach that provides a
multi-level sales process and identifies new business opportunities
at the same time. This process requires strong relationships with
apparel brands to secure nominations and approvals on upcoming
product launches and programs. Relationships at the manufacturing
level are equally important since Talon’s local sales teams work
directly with the identified factories to spec the sampling,
service and delivery requirements for approved zipper and trim
solutions. The close coordination between Talon and the factory
teams then leads to new business opportunities with other brands
served by the factory. Talon remarkets these new opportunities to
brand merchants in the U.S. and Europe. Ongoing investment in
building and maintaining a robust sales and marketing team is vital
to serving the dynamic needs of Talon’s global customer base and
critical to generating revenue growth.
Enter New Geographies with Significant Retail and Manufacturing
Opportunities – Talon’s comprehensive network of quality
manufacturing facilities gives it flexibility and leverage to serve
its customers wherever they decide to source garments. The
company’s proven quality manufacturing and delivery capabilities
can be replicated throughout key manufacturing regions and
promising new markets. The ability to respond to customer demand
while expanding its network of local facilities and lowering
production costs is a distinct competitive advantage in attracting
and retaining leading apparel brands. Talon is targeting expansion
in key growth markets such as India, Bangladesh, Vietnam, Turkey
and Central America.
Develop and Introduce New Products – Talon is committed to
continuous innovation to improve existing products and to develop
new ones that address changing fashion trends and consumer
preferences. Based on customer interest, the company has
accelerated marketing TekFit®, its advanced, patented fabric
technology which has several applications, including a stretchable
waistband for men’s and women’s pants, shorts, uniforms and other
garments. Over time, Talon expects TekFit to become a significant
complement to its core zipper and trim product lines. Talon
continues to invest in research and development through its product
development groups within the U.S., Europe and Asia through
specialty products such as TekFit, KidsZips® and Footwear Zips.
Assess Product Alliances and Strategic Tuck-In Acquisitions –
Talon’s strategy is to provide a full line of specialty zipper and
trim products. Accordingly, the company will opportunistically
pursue strategic alliances that complement its current offerings
and existing relationships with retailers. The multi-billion dollar
apparel accessory industry is highly fragmented with hundreds of
small participants. Talon will evaluate opportunities to acquire
high-quality companies to expand its customer base and increase
opportunities to cross-sell its entire product line to new apparel
brands.
Financial Outlook
Based on its strategic plan and growth initiatives, over the
next three years, Talon anticipates achieving revenue growth of 10
to 12 percent per year, while maintaining its historic gross
margins in the range of 32 to 34 percent, and generating EBITDA
returns of 8 to 9.5 percent of sales. Revenue growth will be driven
in part by increasing market share expansions and adding new
apparel brands and nominations by approximately 10 percent per
year, as well as continued geographic expansion. These targets
exclude any contribution from potential strategic alliances and
tuck-in acquisitions.
About Talon International, Inc.
Talon International, Inc. is a major supplier of customer
zippers, complete trim solutions and stretch technology products to
manufacturers of fashion apparel, specialty retailers, mass
merchandisers, brand licensees and major retailers worldwide. Talon
develops, manufactures and distributes custom zippers exclusively
under its Talon® brand (“The World’s Original Zipper Since 1893”);
designs, develops, manufactures, and distributes complete apparel
trim solutions and products; and provides stretch technology for
specialty waistbands all under its trademark and world renowned
brands, Talon®, and TekFit® to major apparel brands and retailers.
Leading retailers worldwide recognize and use Talon products
including Abercrombie and Fitch, Polo Ralph Lauren, Kohl’s, J.C.
Penney, FatFace, Victoria’s Secret, Wal-Mart, Tom Tailor,
Phillips-Van Heusen, Juicy Couture, and many others. The company is
headquartered in the greater Los Angeles area, and has offices and
facilities throughout the United States, United Kingdom, Hong Kong,
China, Taiwan, India, Indonesia, Vietnam and Bangladesh.
Forward Looking Statements
Except for historical information, this press release contains
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements may be identified by the use of forward-looking
words or phrases such as “believe,” “expect,” “anticipate,”
“should,” and “potential,” among others. Examples of
forward-looking statements in this release include the Company’s
financial outlook for the remainder of fiscal 2012 and for the next
three fiscal years, and the projected growth of its TekFit product
line. Forward-looking statements are not guarantees of future
performance and the Company’s actual results may differ
significantly from the results discussed in the forward-looking
statements. Factors and uncertainties that could affect the
Company’s forward-looking statements include, among other things,
changing trends in apparel retailing, new product introductions,
the company’s ability to execute on its sales strategies,
management of R&D efforts, acceptance by customers of the
Company’s products, and competitive factors, including pricing
pressures and the introduction by others of new products with
similar or better functionality than the Company’s products. These
and other risks are more fully described in the Company’s filings
with the Securities and Exchange Commission, including the
Company’s most recently filed Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, which should be read in conjunction
herewith for a further discussion of important factors that could
cause actual results to differ materially from those in the
forward-looking statements. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Financial Profiles, Inc.Lisa Mueller (Investors)Megan Klein
(Media)310-478-2700TALON@finprofiles.com
Talon (PK) (USOTC:TALN)
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