UNITED STATES |
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SECURITIES AND EXCHANGE COMMISSION |
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Washington, D.C. 20549 |
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SCHEDULE 14A |
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Proxy
Statement Pursuant to Section 14(a) of |
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Filed by the Registrant ý |
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Filed by a Party other than the Registrant o |
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Check the appropriate box: |
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Preliminary Proxy Statement |
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
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Definitive Proxy Statement |
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Definitive Additional Materials |
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Soliciting Material Pursuant to §240.14a-12 |
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Water Pik Technologies, INC. |
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(Name of Registrant as Specified In Its Charter) |
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
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Payment of Filing Fee (Check the appropriate box): |
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No fee required. |
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Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. |
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[GRAPHIC]
[LOGO]
Well-positioned for accelerated growth with earnings leverage
April 2004
Why Are We Here Today
Review Company performance
Review strategy that got us here
Describe where we go from here
Answer your questions
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PIK Outperformed in a Tough Economy
[CHART]
Source: Yahoo.com Data 11/30/99 through 4/5/04
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3-Year Average Returns:
PIK Performance vs. Industry Groups
[CHART]
Industry Group data as reported in The Wall Street Journal, Monday March 8, 2004
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Results and Outlook are Strong
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2003 |
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2002 |
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Increase |
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Actual Results Dec. Quarter |
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PHC Revenue |
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$ |
36.5 |
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$ |
33.6 |
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8.6 |
% |
PPHS Revenue |
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$ |
60.6 |
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$ |
51.0 |
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18.8 |
% |
PIK Revenue |
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$ |
97.1 |
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$ |
84.6 |
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14.8 |
% |
PIK EPS |
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0.47 |
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$ |
0.32 |
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46.8 |
% |
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Current Outlook Year Ended September |
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FY04 Revenue Growth Target |
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12-14 |
% |
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FY04 EPS Dollar Target |
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$1.00 - $1.05 |
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FY04 EPS Growth Target |
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37-44 |
% |
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Dollars in millions except EPS for fiscal year-end Sept. 30
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At The Time of The Spin-off
Strengths
Several No. 1 market share positions
Well recognized consumer/trade brands
Broad-based distribution channels
Strong relationships with pool builders
Challenges
Flat/declining sales and profit
Low level of capital investment
Lack of new products in pipeline
No momentum with major retailers
High cost, U.S. based manufacturing capability
Lack of critical mass across business
Other
Establish public company infrastructure
Raise/spend capital in 24 months (IRS Ruling)
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Our Chosen Strategy
Create critical mass in existing businesses
Drive growth through innovative new products
Extend proven brands into new categories
Become more important to major retailers
Participate in pool industry consolidation
Reduce manufacturing cost position
Drive business focus through strategic acquisitions
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What We Have Accomplished
Performed through tough economic climate
Invested capital in new products/cost reduction
Maintained strong balance sheet
Launched new products into all categories
Re-established leadership position in retail categories
Developed complete pool equipment line
Completed two strategic acquisitions to drive business focus
Developed a global manufacturing capability
Consolidated/strengthened enterprise information systems
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Increased Investment in Business
[CHART]
For fiscal year-end Sept. 30
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Maintained Strong Balance Sheet
Debt to Total Capital
[CHART]
For fiscal year-end Sept. 30
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New Products are Driving Growth
% of Sales from New Products Less than 3 Years old
[CHART]
For fiscal year-end Sept. 30
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Markets in Which We Compete:
Pool Equipment
[CHART]
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Markets in Which We Compete:
Water-heating Systems
[CHART]
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Shower Price Points
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Under $20.00 |
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$20.00-$30.00 |
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$30.00-$50.00 |
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over $50.00 |
Pulsating |
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Original
Shower |
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Original
Shower |
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Elements® |
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New
Visions® |
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Pan Head |
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Medallion |
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AquaFall® |
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Cascadia® |
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Summary of New Product Introductions 2000-2004
Oral Health products: SynchroSonic®, Cordless Dental Water Jet, Flosser, Travelbrush and Vibe®
Shower products: AquaFall®, Cascadia®, New Visions®, Shower Panel, Flexible Shower Massage®, Misting Massage®, Medallion, Elements® and Shower Filter
Other products: AccuReach®, Foot Spas and Aquia
Pool products: Pool Heaters (LX, LT and HotShot®), Heat Pumps, AquaLink®, Pumps, Filters, ClorMatic®, Aqua Accents, Deck Jets, Pool Maintenance Kit and Outdoor Shower
Water-heating systems: Rheos®, Pennant® and Endurance
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Rationalizing Manufacturing
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2000-04 |
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2003-04 |
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Beyond 2004 |
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[GRAPHIC] |
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Secured |
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[GRAPHIC] |
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Global
supply |
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Reduced manufacturing |
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Added 2 manufacturing |
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Where Do We Go From Here
Continue sales momentum and leverage earnings
Focus R&D/capital on leadership positions
Launch PHC retail products to continue gains
Aggressively convert pool builders to Jandy System
Build on Heating Systems sales turnaround
Expand global manufacturing capability
Continue acquisition strategy to drive focus
Deliver consistent sales and earnings performance
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Next Steps in Building Shareholder Value
Complete comprehensive business review to include:
Short and long-term business strategies
Contribution analysis of each product category
Opportunities to consolidate additional facilities
Overall financial analysis of all business options
Report findings/recommendations to Board
Maintain management continuity to deliver value
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Forward-looking Statements
This presentation, and discussions related to this presentation, which are not historical facts may be considered forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from these forward-looking statements as a result of the risk factors described in the Companys filings with the Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the forward-looking information expressed in this presentation will in fact transpire.
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Proxy Information
Participants and additional information
Information regarding persons who may be deemed to be participants in the solicitation of proxies on behalf of Water Pik Technologies, Inc. (the Company) in connection with the 2004 Annual Meeting of Stockholders has been filed by the Company with the Securities and Exchange Commission on Schedule 14A. Please see Annex C to the Companys preliminary Proxy Statement filed with the Securities and Exchange Commission (SEC) on March 10, 2004, and updates to information regarding the participants as they are filed by the Company with the SEC.
Investors are urged to read the Companys Proxy Statement and additional solicitation materials when they become available and other relevant documents filed with the SEC by the Company because they will contain important information.
Investors will be able to obtain the Companys SEC filings free of charge at the SEC website (www.sec.gov). In addition, documents filed with the SEC by the Company will be available free of charge by contacting Water Pik Technologies, Inc., 23 Corporate Plaza, Suite 246, Newport Beach, California 92660, (949) 719-3700.
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[GRAPHIC]
[LOGO]
Well-positioned for accelerated growth with earnings leverage
April 2004