Yeti Holdings, Inc. · NYSE:YETI
Yeti — Q3 2020 Earnings Presentation
20 slides from Yeti's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights
Slide 2: Disclaimer
Disclaimer We are not making any representations or warranties, express or implied, with respect to the information (financial, business, legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this presentation. Forward-
Slide 3: Expanding Our Customer Base; Introduce New Products; Accelerate DTC
1 EXPANDING OUR CUSTOMER BASE Tell powerful brand stories: digital and drive-in activation of the YETI Film Tour Connect through product storytelling: Caffeine and Cocktails to launch Rambler 10 oz. Tumbler Extend a positive impact on our communities: One for the Roadies, Black Outside 2 INTRODUCE N
Slide 4: Key Financial Metrics and Key Business Metrics
LTM Q3 2020 Net Sales KEY FINANCIAL METRICS $1.01B $224MM LTM Q3 2020 LTM Q3 2020 Net Sales Adjusted EBITDA2 47% 22% Coolers & LTM Q3 2020 2013 – 2019 Net Sales CAGR Equipment Adjusted EBITDA2 Margin 41% LTM Q3 2020 $1.01B Drinkware KEY BUSINESS METRICS 58% 8 >95% Other New Products Introduced YETI
Slide 5: Built For The Wild
5 BUILT £OR THE WILD,
Slide 6: YETI's Customer Base Has Expanded as Brand Awareness Has Spread
2006 FISHING HUNTING 2020 BEACH SNOW CAMPFIRE AT PLAY AT HOME AT WORK • YETI’s Customer Base Has Expanded as Brand Awareness Has Spread Nationally and Internationally • New Products and Marketing Driving Attractive Shift in Demographics 12 131 64% 9% 33% Communities Ambassadors 2019 % Under 451 2015
Slide 7: Large and Growing Social Media Presence and Domestic Unaided Brand Awareness
LARGE AND GROWING DOMESTIC UNAIDED BRAND SOCIAL MEDIA PRESENCE AWARENESS BY REGION2 Followers1 2019 2015 4.7MM 20% 4.5MM 18% 3.4MM 14% 13% 11% 11% 10% 3.2MM 9% 8% 7% 1.5MM 4% 3% 2% 628K 1% 1% 1% 1% 0% 518K East South West South East North West North South Pacific 4 New Mountain4 Mid Atlantic4 Centra
Slide 8: Coolers & Equipment and Drinkware Product Introductions
1H 2H 1H 2H 1H 2H 1H 2H Pre-2016 2017 2017 2018 2018 2019 2019 2020 2020 Hard Cooler Sherpa™, Roadie®, Tundra® 210 Limited Edition Limited Edition Limited Edition Haul™ Silo® Reef Blue River YETI Roadie® Navy Sagebrush Ice Pink Tundra®, YETI Tank™ Green V Series™ 24 Soft Cooler Hopper® Field Tan Day
Slide 9: Channel & Supply Chain
CHANNEL & SUPPLY CHAIN
Slide 10: Strategic Channel Mix Creates Stable, High Margin Profile
HIGHLIGHTS STRATEGIC CHANNEL MIX CREATES STABLE, HIGH MARGIN PROFILE • Diverse omni-channel business 2015 LTM Q3 2020 • Fast growing DTC business Wholesale2 Wholesale 49% • Diverse group of U.S. wholesale partners with 92% nationwide coverage; no account exceeds 10% of $469MM $1.01B gross sales1 DTC
Slide 11: YETI.com, Retail, Corporate Sales, YETI Authorized
YETI.COM RETAIL CORPORATE SALES YETI AUTHORIZED 11
Slide 12: Growing Global Sales Expansion Strategy
GROWING GLOBAL SALES EXPANSION STRATEGY • Capitalize on global digital, e-commerce, and mobile trends DTC & Wholesale DTC & Wholesale • Enter international markets via DTC and select wholesale • Push global brand via Ambassador, influencer, and event marketing 59% 41% 28% 28% Wholesale DTC & Wholesa
Slide 13: Global Infrastructure and Global Footprint
GLOBAL INFRASTRUCTURE GLOBAL FOOTPRINT • Leading third-party manufacturing and logistics partners ll l l ll ll • Optimizing quality, delivery and best cost ll l l l l • Developed key manufacturing partners in 2017, 2018 and 2019 • Soft coolers and bag supply chain transitioned out of China
Slide 14: 14
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Slide 15: Net Sales, Gross Profit, Adjusted EBITDA, Capital Expenditures
NET SALES GROSS PROFIT Gross Profit % Margin $1,014 $566 $914 $475 $779 $383 56% 52% 49% 2018 2019 LTM Q3 2020 2018 2019 LTM Q3 2020 ADJUSTED EBITDA1 CAPITAL EXPENDITURES Adjusted EBITDA % Margin Capital Expenditures % of Net Sales $224 $172 $32 $149 $21 $19 3% 4% 2% 19% 19% 22% 2018 2019 LTM Q3 202
Slide 16: Net Sales, Category Net Sales Growth, Channel Net Sales Growth
NET SALES $295 $229 Q3 2019 Q3 2020 CATEGORY NET SALES GROWTH Coolers & Drinkware Equipment $166 $124 $98 $126 Q3 2019 Q3 2020 Q3 2019 Q3 2020 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $150 $136 $144 $93 Q3 2019 Q3 2020 Q3 2019 Q3 2020 16 Note: $ in millions.
Slide 17: Gross Profit, Adjusted Operating Income, Adjusted Net Income per Diluted Share
GROSS PROFIT ADJUSTED OPERATING INCOME1 Gross Profit $ / % Margin Adjusted Operating Income $ / % Margin $174 / 59% $72 / 25% $120 / 52% $37 / 16% Q3 2019 Q3 2020 Q3 2019 Q3 2020 ADJUSTED EBITDA1 ADJUSTED NET INCOME PER DILUTED SHARE1 Adjusted EBITDA1 $ / % Margin $80 / 27% $0.61 $44 / 19% $0.27 Q3
Slide 18: Appendix
APPENDIX
Slide 19: Adjusted EBITDA Reconciliation
1 1 1 As Reported As Recast As Recast 2018 2019 YTD Q3 2019 YTD Q3 2020 LTM Q3 2020 Net Income $57.8 $50.4 $45.7 $93.4 $98.1 Interest Expense 31.3 21.8 17.1 7.7 12.4 Income Tax Expense 11.9 16.8 14.8 30.7 32.7 2 Depreciation and Amortization Expense 24.8 29.0 21.2 22.8 30.6 3,4 Non-Cash Stock-Based
Slide 20: Reconciliation of Operating Income, Net Income and Adjusted EBITDA
As Recast Q3 2019 Q3 2020 1 These costs are reported in SG&A expenses. Operating Income $34.0 $70.1 1 Non-Cash Stock-Based Compensation Expense 2.1 2.3 2 Represents the tax impact of adjustments calculated at an expected statutory tax rate of 24.5% for both the three 1 Long-lived Asset Impairment 0.