American Outdoor Brands, Inc. · NASDAQ:AOUT
American Outdoor Brands — Investor Presentation (November 2023)
41 slides from American Outdoor Brands's investor presentation, Nov 30, 2023
Slide 1: Investor Presentation November 2023
NASDAQ: AOUT INVESTOR PRESENTATION November 2023 Exhibit 99.1 AMERICAN™ OUTDOOR BRANDS
Slide 2: Forward-looking statements
Certain statements contained in this presentation may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements other than statements of historical facts contained or inco
Slide 3: American Outdoor Brands, Inc. at a glance
American outdoor brands, Inc. at a glance American Outdoor Brands (NASDAQ: AOUT) TTM Net Sales $194.5 million Line of Credit $0 outstanding TTM Gross Profit Margin 45.9% Available Capital ~$100M TTM Adjusted EBITDAS $11.4 million, or 5.9% Net Sales Target $400M Cash Balance $8.4 million Target Adj.
Slide 4: Our Brands & Products at a Glance
Our Brands & Products at a Glance 21 2 D&U We create innovative products, underneath 21 diverse brand names, for consumers who are passionate about the outdoors and shooting sports. 387 Our brands operate across two (2) major product categories: Outdoor Lifestyle: fishing, camping, land management,
Slide 5: Building authentic, lifestyle brands
“Building authentic, lifestyle brands that help consumers make the most out of the moments that matter.” AMERICAN™ OUTDOOR BRANDS
Slide 6: Ready for the Future
Ready for the Future. 1. Engine: Capable of growing net sales ~2x to $400M and EBITDAS 5x to $70M+ over the next 4-5 years. 2. Chassis: Infrastructure complete. No new investments needed. 3. Driver: The right people and culture to win. (…fueled by a strong cash position, with cash flow upside) Inter
Slide 7: Path to $400M in Net Sales: The Road Ahead
Path to $400M in Net Sales: The Road Ahead American Outdoor Brands (NASDAQ: AOUT) We believe AOB is capable of generating $400M in net sales over the next 4-5 years This potential is based upon elements within our control: our innovation pipeline, identified expansion opportunities, and infrastructu
Slide 8: Q2 FY24 Highlights
Q2 FY24 Highlights AMERICAN™ OUTDOOR BRANDS
Slide 9: Q2 FY24 highlights
Q2 FY24 highlights $57.9M 45.7% Net sales increased 6.4% over Q2 FY23. Outdoor Lifestyle category grew 14.3% vs. Q2 FY23 and represents nearly 60% of net sales in Q2 FY24. Shooting Sports category declined 3.4% vs. Q2 FY23. Zero Net Sales vs. Q2 FY23 Gross Margin Gross margins declined by 200 bps in
Slide 10: Outdoor lifestyle category leading growth
Outdoor lifestyle category leading growth Net Sales vs Q2 FY23 & Pre-Pandemic Shooting Sports Net Sales Q2 FY24 vs Q2 FY23: -3.4% Q2 FY24 vs Q2 FY20 (pre-pandemic): +1.4% Growth opportunity focused on expanding into large, stable categories including: Shotgun Sports (Caldwell) Shooting Accessories (
Slide 11: Net sales & Gross Margin
net sales & Gross Margin 65% Growth 48% Growth 14% Growth Q2 Fiscal 2024 Highlights Leverageable financial model as business scales Long-term growth driven by leveraging brand lane platforms "Dock & Unlock”TM strategy allows for expansion into new product categories providing AOUT’s young brands wit
Slide 12: Balance sheet
balance sheet As of October 31, 2023 Q2 Fiscal 2024 Highlights Strong balance sheet supports capital allocation flexibility No debt Significant liquidity (up to ~$100M available capital) $75M asset-based revolving credit facility, expandable by $15M Dry powder available for strategic acquisitions ID
Slide 13: Compelling investment considerations
Compelling investment considerations 1. Business capable of growing net sales ~2x to $400M and 5x EBITDAS of $70M+ over the next 4-5 years. Innovation engine, built. Leverageable Brand Lane teams in place. Customer & channel opportunities ripe for harvesting. 2. Infrastructure in place. No new inves
Slide 14: Ready for the Future
Ready for the Future AMERICAN™ OUTDOOR BRANDS
Slide 15: Innovation Engine, Built
Innovation Engine, Built. Pipeline built to deliver ~$200M in incremental sales Provides 3-5 years of new product upside Focused on large, sleepy markets, ripe for disruption Talent in place, capable of executing product pipeline 40+ product designers, engineers, and software developers Capable of d
Slide 16: Brand Lane Teams, In Place
Brand Lane Teams, In Place. Marketing: leverageable brand lane Teams Adventurer Brand Lane Harvester Brand Lane Marksman Brand Lane Defender Brand Lane Product Development (highlighted earlier) “Brand Lane” teams are in place, focused on key consumer activities: Drives brand authenticity Connects pr
Slide 17: Go-To-Market: Multiple Expansion Opportunities
Opportunities, Ripe for Harvesting. Go-To-Market: Multiple Expansion Opportunities We believe AOB is capable of $400M in net sales, organically; we expect our business to shift as a result: Outdoor Lifestyle transitions towards ~65% of net sales (from 55% today) Doubling of international sales to 10
Slide 18: Go-To-Market: Domestic & International Expansion
Shotgun Sports Fishing Land Management Hunting & Outdoor Food Prep & Cooking Shooting Accessories Retail Support Programs Dedicated Sales Support, Tightened Distribution Network Shooting Sports Outdoor Lifestyle Go-To-Market: Domestic & International Expansion Expanded Sales Staff & Rep Force Dedica
Slide 19: Go-To-Market: Traditional & e-Commerce Expansion
Go-To-Market: Traditional & e-Commerce Expansion Emphasis on POS and Program Support Digital Merchandising, Educational Assets, Launch Support Expanded Sales Staff & Rep Force Dedicated Sales Staff in FY23 Farm & Home, DIY Retail Expansion DTC Websites and e-Commerce Support, Digital Merchandising S
Slide 20: Strong presence in traditional and e-comm channels
strong presence in traditional and e-comM channels Opportunities, Ripe for Harvesting. DTC Websites Online Retailers National Retailers Home, Farm, Automotive Distributors & Buying Groups OEM Traditional Channels $108M 56% E-commerce Channels $86M 44% Note: Customers shown are for illustrative purpo
Slide 21: Infrastructure: Complete & Ready for Expansion
Investments Complete, Ready to Scale. Infrastructure: complete & ready for Expansion New HQ and Distribution Center (2019) 632k SF provides capacity for organic growth and acquisitions New Consumer-Focused Brand Lanes (2020) Finished build-out of leverageable Brand Lane teams New Public Company Infr
Slide 22: Infrastructure: Consolidations into Missouri HQ, Complete
Infrastructure: Consolidations into Missouri hq, Complete Investments Complete, Ready to Scale. © 2023 American Outdoor Brands, Inc. All Rights Reserved 22
Slide 23: Our Culture: A Competitive Advantage
Our Culture: A Competitive Advantage How Others View AOB’s Culture “Innovation” (Top 10 Customer) “Visionary” (Industry Investment Banker) “Entrepreneurial” (Top 10 Customer) “Dedicated” (Top 10 Customer) “Entrepreneurial” (Large AOB Competitor) Values Drive Our Culture The Right People & Culture To
Slide 24: Strong Financial Model
Strong Financial Model Strong balance sheet, leverageable growth model, with favorable cash flow upside. AMERICAN™ OUTDOOR BRANDS
Slide 25: Business Model: Core Competencies Drive Simplicity
Strong Financial Model, In Place. Business Model: Core Competencies Drive Simplicity Innovation (Core Competency) Asset Light (Outsourced Manufacturing, Low Capex) Simple, Leverageable Model (One ERP, lean organization) © 2023 American Outdoor Brands, Inc. All Rights Reserved 25
Slide 26: Financial Model: increased operating leverage with Growth
New HQ and Distribution Center New Consumer-Focused Brand Lanes New Public Company Infrastructure New DTC Platform New ERP System New Analytics Platform Financial Model: increased operating leverage with Growth We expect EBITDAS contribution of 25% - 35% on incremental net sales as we grow organical
Slide 27: Capital Allocation: Demonstrated Deployment
Capital Allocation: Demonstrated Deployment Strong Financial Model, In Place. ORGANIC GROWTH Our highest priority is to invest in our business: Drives organic net sales to $400M Delivers sustainable profitability Yields strong returns and free cash flow 1 RETURN CAPITAL TO SHAREHOLDERS We will conti
Slide 28: M&A Illustration: Dock & Unlock Drives incremental EBITDA
M&A Illustration: “Dock & Unlock” Drives incremental ebitda Target EBITDAS Contribution: 25%+ Net sales: Expanded products and customers Gross margin: Improved margins with AOUT supply chain Variable costs: Consolidated logistics into Columbia HQ Fixed Opex: Leveraged Adventurer brand lane In Proces
Slide 29: We're Ready for the Future
American Outdoor Brands (NASDAQ: AOUT) We’re Ready for the Future... Innovation engine, built. Leverageable Brand Lane teams in place. Customer & channel opportunities ripe for harvesting. Infrastructure investments complete, ready to scale. Strong balance sheet, leverageable growth model, favorable
Slide 30: Appendix
Appendix AMERICAN™ OUTDOOR BRANDS
Slide 31: American Outdoor Brands: Senior Team
BRIAN MURPHY President & CEO Joined: 2016 ANDY FULMER Chief Financial Officer Joined: 2010 JAMES TAYON VP of Marketing & Product Development Joined: 2012 BRENT VULGAMOTT Chief Operating Officer Joined: 2015 American Outdoor Brands (NASDAQ: AOUT) American outdoor brands: Senior Team LIZ SHARP VP of I
Slide 32: Non-GAAP financial measures
American Outdoor Brands (NASDAQ: AOUT) In this presentation, certain non-GAAP financial measures, including “non-GAAP net income and “Adjusted EBITDAS” are presented. A reconciliation of these and other non-GAAP financial measures are contained at the end of this press release. From time-to-time, th
Slide 33: Q2 FY24 non-GAAP adjusted EBITDAS reconciliation
American Outdoor Brands (NASDAQ: AOUT) Q2 FY24 non-gaap adjusted ebitdas reconciliation AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME/(LOSS) TO NON-GAAP ADJUSTED EBITDAS (In thousands) (Unaudited) For the Three Months Ended October 31, For the Six Months Ended Octo
Slide 34: Q2 FY24 GAAP income statement
Q2 FY24 gaap Income statement American Outdoor Brands (NASDAQ: AOUT) AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) For the Three Months Ended October 31, For the Six Months Ended October 31, 2023 2022 2023 2022 (Unaudited)
Slide 35: Q2 FY24 non-GAAP income statement
Q2 FY24 non-GAAP income statement American Outdoor Brands (NASDAQ: AOUT) AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Non-GAAP (In thousands, except per share data) (Unaudited) For the Three Months Ended October 31, For the Six Months Ended October 31, 2023 20
Slide 36: Diverse portfolio of early-stage consumer brands
Diverse portfolio of 21 early-stage consumer brands American Outdoor Brands (NASDAQ: AOUT) Note: American Outdoor Brands, Inc. licenses the brands Smith & Wesson® Accessories; M&P® Accessories; Thompson/Center Arms™ Accessories; and Performance Center® Accessories, all of which are owned by Smith &
Slide 37: Brand and product categories
Fillet knives, fishing rods, fishing tools, kitchen cutlery, apparel Grills, smokers, outdoor kitchens, portable power solutions, pellets, & accessories Folding, fixed-blade knives Folding & fixed-blade knives, multi-tools, adventure equipment Tents, sleeping bags, mattress pads, camping tools and a
Slide 38: BUBBA Pro Series SFS: changing the way people fish
BUBBA pro series sfs: changing the way people fish American Outdoor Brands (NASDAQ: AOUT) MLF is the world’s largest tournament-fishing organization BUBBA Pro SFS named the official scale of Major League Fishing starting with 2024 Bass Pro Tour season BUBBA Pro SFS utilizes the BUBBA app to communic
Slide 39: Caldwell Claymore clay target thrower
FOOT PEDAL-POWERED, NO BATTERY REQUIRED TO OPERATE 50 CLAY CAPACITY - MORE TIME SHOOTING, LESS TIME LOADING CLAYS COMPACT FOLDING DESIGN FOR EASY TRANSPORTATION & STORAGE SELECTABLE FLURRY MODE LAUNCHES CLAYS AS FAST AS YOU CAN STEP ON THE PEDAL LIGHTWEIGHT PORTABLE AWARD WINNING WATCH IN ACTION Cal
Slide 40: Frankford Arsenal X-10 progressive press
American Outdoor Brands (NASDAQ: AOUT) X-10 progressive press With Case Feeder Rotary Tumbler Lite essentials kit Rotary Tumbler Lite professional kit Essentials Reloading kit Starter kits Basic & Advanced Assortments Refreshed branding, product, and packaging New Products targeting new consumer ent
Slide 41: DeathGrip Sherpa and Infinite packs and bags
American Outdoor Brands (NASDAQ: AOUT) Deathgrip sherpa Carbon Fiber Deathgrip infinite Carbon Fiber Deathgrip infinite Aluminum Premium hunting packs and bags Expanding on the success of the DeathGrip hunting shooting rest, we are introducing 2x new lines under the DeathGrip family Multi-functional
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