American Outdoor Brands, Inc. · NASDAQ:AOUT
American Outdoor Brands — Q4 2022 Earnings Presentation
30 slides from American Outdoor Brands's earnings presentation, Jul 14, 2022
Slide 1: Investor Presentation July 2022
NASDAQ: AOUT INVESTOR PRESENTATION July 2022
Slide 2: Legal Safe Harbor
LEGAL SAFE HARBOR AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: 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 ot
Slide 3: FY22 Highlights
FY22 Highlights
Slide 4: Disciplined Execution of Long-Term Value Creation
DISCIPLINED EXECUTION OF LONG-TERM VALUE CREATION STRATEGY FY22 Achievements AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: - 2-Yr Growth of 48% Driven by ‘Dock & Unlock’ Strategy - New products generated 26% of FY22 Net Sales ORGANIC PATH TO 1 GROWTH $400M - International sales growth of 40% year over year
Slide 5: Sustained Growth Compared to Pre-Pandemic Levels
SUSTAINED GROWTH COMPARED TO PRE-PANDEMIC LEVELS FY22 Net Sales 4Q22 Net Sales AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: • Outdoor Lifestyle Net Sales ‒ FY22 vs FY21: +7.2% ‒ FY22 vs FY20: +56.1% Outdoor Shooting • Expected to represent a majority of sales in near-term and be major Outdoor Shooting gro
Slide 6: Grilla: Exclusive Turn-Key Outdoor Cooking Ecosystem
GRILLA: EXCLUSIVE “TURN-KEY” OUTDOOR COOKING ECOSYSTEM AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: All Major Outdoor Cooking Platforms Offered … ... Designed with an Ecosystem in Mind … Wifi Pellet Grills Pellet Smokers Gas Grills Griddles / Flat Tops Kamado Grills “I have a [Silverback] and Primate. I g
Slide 7: Grilla: Brings DTC-Only Brands to ~10% of AOB Net Sales
GRILLA: BRINGS DTC-ONLY BRANDS TO ~10% OF AOB NET SALES AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: … All Sold Direct-to-Consumer… … While Leveraging Complementary AOB Brand Audiences “I’m a big fan of meat your maker! High quality products like Grilla! Y’all need to jump on this deal.” – Facebook Post f
Slide 8: Grilla: Opportunity to Become $100M+ Revenue Brand
GRILLA: OPPORTUNITY TO BECOME $100M+ REVENUE BRAND “Niche” “Known AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: ~$1.9B … All Sold Direct-to-Consumer… * $15M ” $100M 1. Rapidly growing, “sticky” audience + 2. Disruptive new product pipeline 3. Recurring revenue base growth ~$774M * 4. Untapped distribution
Slide 9: Building authentic, lifestyle brands
“Building authentic, lifestyle brands that help consumers make the most out of the moments that matter.”
Slide 10: American Outdoor Brands
AMERICAN OUTDOOR BRANDS AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: Large, passion-driven industry Favorable macro trends (fishing, hunting, personal protection, shooting sports, camping, hiking, and outdoor cooking) Diverse portfolio of 21 early-stage consumer brands Innovative “Dock & Unlock”™
Slide 11: American Outdoor Brands, Inc. at a Glance
AMERICAN OUTDOOR BRANDS, INC. AT A GLANCE AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: Mfg., Distribution Admin Office HQ, Distribution • Locations: HQ & Distribution: Columbia, MO • Additional Offices: MA (Admin), OR (Mfg), China (WFOE) • Spinoff: August 2020 • NASDAQ Select: AOUT FY22 Net Sales $247.5 m
Slide 12: Large, Passion-Driven Industry
LARGE, PASSION-DRIVEN INDUSTRY AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: Hunting Shootin Fishing g [a] ~$90-100B U.S. Outdoor Recreation Market Campin Archery g Paddlin Hiking g (a) Based on a 2017 report issued by the Outdoor Industry Association. © 2022 American Outdoor Brands, Inc. All Rights Reserv
Slide 13: Favorable Outdoor Activity Macro Trends
FAVORABLE OUTDOOR ACTIVITY MACRO TRENDS OUTDOOR PARTICIPATION TRENDS AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: Illustrative Outdoor Recreational Participation Comparison >50% of the U.S. Participates in Outdoor Recreational Activities ~9M Number of first-time 14M New entrants per NSSF: camper household
Slide 14: Diverse Portfolio of Early-Stage Consumer Brands
DIVERSE PORTFOLIO OF 21 EARLY-STAGE CONSUMER BRANDS AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: © 2022 American Outdoor Brands, Inc. All Rights Reserved 14 Note: American Outdoor Brands, Inc. licenses the brands Smith & Wesson® Accessories; M&P® Accessories; Thompson/Center Arms™ Accessories; and Perform
Slide 15: Two Categories: Outdoor Lifestyle & Shooting Sports
TWO CATEGORIES: OUTDOOR LIFESTYLE & SHOOTING SPORTS Outdoor Lifestyle Shooting Sports Illustrative Products Fillet knives, fishing rods, fishing tools, kitchen cutlery, apparel AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: Adventurer Grills, smokers, outdoor kitchens, pellets, & accessories Folding, fixed-
Slide 16: Strong Presence in Traditional and E-Comm Channels
STRONG PRESENCE IN TRADITIONAL AND E-COMM CHANNELS National Retailers AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: Online Retailers Home, Farm, Automotive E-commerce Channels DTC Websites Traditional Channels $97.4M 39% $150.1M 61% Distributors & Buying Groups (FY22 Net Sales = $247.5 Million) FY22 vs FY2
Slide 17: The Dock and Unlock Formula
THE “DOCK AND Using our "Dock and Unlock” formula, we leverage our brand lanes to TM AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: UNLOCK” TM reframe our brands’ growth potential FORMULA Thereby creating “Permission to Play" in new product categories and establishing entrance into wholly new, large add
Slide 18: Dock & Unlock Case Study
“DOCK & UNLOCK” CASE STUDY TM Our Brand Lane structure and product development capabilities allow us to create wholly new brands that have the potential to deliver strong, incremental, organic growth. AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: TTM June Net Sales $7.4M Black Friday Net Sales 169.5% ~$900
Slide 19: Dock & Unlock Case Study
“DOCK & UNLOCK” CASE STUDY TM AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: From water to plate, BUBBA provides anglers with kick-ass tools to enjoy the ultimate lifestyle of adventure FILLET ELECTRIC FILLET From Niche To KnownTM LANDING RODS Expanded potential by dropping "Blade" from the name and Origi
Slide 20: Brand Permission to Play Drives Growth Potential
BRAND “PERMISSION TO PLAY” DRIVES GROWTH POTENTIAL Growth Growth Opportunities Opportunities Expand Market Share AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: New Distribution New Categories New Distribution Expand Market New Consumer New Categories New Consumer Lifestyle Supported Markets Lifestyle Suppor
Slide 21: Leverageable Model Drives Profitability
LEVERAGEABLE MODEL DRIVES PROFITABILITY NET SALES & GROSS MARGIN Q4 UPDATE AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: FY22 delivered +48% vs. FY2020 Significant sales growth within e-commerce channel – long- term growth expected to continue through leveraging brand lane platforms "Dock & Unlock”TM
Slide 22: Long-Term Financial Targets
LONG-TERM FINANCIAL TARGETS Long-Term Long-Term Drivers AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: Expand market share New product categories Net Sales(1) Path to $400M New consumer markets New distribution High level of operating leverage from Adjusted Mid to high existing brand lane platform
Slide 23: Strong Balance Sheet Supports Organic Growth & Acquisitions
STRONG BALANCE SHEET SUPPORTS ORGANIC GROWTH & ACQUISITIONS AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: Significant liquidity (~$70M available capital) BALANCE SHEET AS OF APRIL 30, 2022 Assets ($M) • Low-cost L+200, $75M asset-based revolving credit facility capacity with $50M currently Cash $19.5 ava
Slide 24: Appendix Follows
Appendix Follows
Slide 25: Experienced Leadership
EXPERIENCED LEADERSHIP AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: BRIAN D. MURPHY H. ANDREW FULMER, CPA President & Chief Executive Officer Chief Financial Officer Lead execution of AOUT’s “Dock & Unlock”TM strategy as Extensive financial experience with the company, and part of expansion into new o
Slide 26: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: In this presentation, certain non-GAAP financial measures, including “non-GAAP net income,” “non-GAAP income per share diluted,” “Adjusted EBITDAS,” and “free cash flow” are presented. A reconciliation of these and other non-GAAP fin
Slide 27: Q4 & Full Year Non-GAAP Adjusted EBITDAS Reconciliation
Q4 & FULL YEAR NON-GAAP ADJUSTED EBITDAS RECONCILIATION RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: (In thousands) (Unaudited) For the Three Months Ended April 30, For the Years Ended April 30, 2022 2021 2022 2021 GAAP net (loss)/income $ (76
Slide 28: Q4 & Full Year – GAAP Income Statement
Q4 & FULL YEAR – GAAP INCOME STATEMENT AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: For the Three Months Ended April 30, For the Years Ended April 30, 2022 2021 2022 2021 (US$ i n thous a nds , except per s ha re da ta ) (Una udi ted) Net s a l es $ 45,893 $ 64,473 $ 247,526 $ 276,687 Cos t of s a l es 25
Slide 29: Q4 & Full Year – Non-GAAP Income Statement
Q4 & FULL YEAR – NON-GAAP INCOME STATEMENT AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: For the Three Months Ended April 30, For the Years Ended April 30, 2022 2021 2022 2021 (US$ i n thous a nds , except per s ha re da ta ) (Una udi ted) Net s a l es $ 45,893 $ 64,473 $ 247,526 $ 276,687 Cos t of s a l e
Slide 30: American Outdoor Brands
AMERICAN. OUTDOOR BRANDS / a. : es
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