Talon International Outlines Strategic Growth Plans in Investor Meetings

  Talon International Outlines Strategic Growth Plans in Investor Meetings

Business Wire

LOS ANGELES -- October 3, 2013

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.

Contact:

Financial Profiles, Inc.
Lisa Mueller (Investors)
Megan Klein (Media)
310-478-2700
TALON@finprofiles.com
 
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