Ollie's Bargain Outlet Holdings, Inc. · NASDAQ:OLLI
Ollie's Bargain Outlet — ICR Conference 2018
26 slides from Ollie's Bargain Outlet's conference presentation, January 2018
Slide 1: ICR Conference January 2018
SEQ began ‘GOOD STUFF CHEAP’ ICR Conference January 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform
Slide 3: Management Presenters
Management Presenters Mark Butler Co-Founder, Chairman, President and Chief Executive Officer John Swygert Executive Vice President and Chief Operating Officer Jay Stasz Senior Vice President and Chief Financial Officer 3
Slide 4: Company Overview
Company Overview Broad Selection of “Good Stuff Cheap” Fast growing, extreme value retailer offering a Net sales by merchandise category for FY 2016 broad selection of "Good Stuff Cheap" 12.7% Housewares Food Founder-led management team with deep- 33.9% 12.7% Books and stationery rooted company
Slide 5: Store Count by State
Store Count by State RI 1 3 3 20 Existing Market 2016 New Market 268 locations(1) 2017 New Market 20 states Distribution Center - York, PA 20 Distribution Center - Commerce, GA 5 (1) As of January 8, 2018
Slide 6: Significant Accomplishments
Significant Accomplishments Positive comparable store sales delivered for the FY 2017 Outlook FY 2016 last 14 consecutive quarters Adjusted Net Income per diluted share has exceeded expectations each quarter since going public ~ $1,070 million $890.3 million Refinanced senior secured credit fa
Slide 7: Formula For Success
Formula For Success Highly experienced and disciplined teams “Good Stuff Cheap”—Ever Tremendous white space changing product assortment opportunity at drastically reduced prices Distinctive brand and Strong and consistent store engaging shopping model built for growth experience Extremely loyal “Oll
Slide 8: Highly Experienced and Passionate Founder-led Management Team
Highly Experienced and Passionate Founder-led Management Team Retail Ollie’s Name Title Prior Experience Experience Experience Co-Founder, Chairman, President & Mark Butler 40 Years 35 Years Chief Executive Officer John Swygert EVP, Chief Operating Officer 25 Years 14 Years EVP Business Development
Slide 9: Highly Experienced and Disciplined Merchant Team
Highly Experienced and Disciplined Merchant Team Highly experienced team 187(1) combined years of experience at Ollie’s Approximately 13(1) years of average experience at Ollie’s Kevin Howard McLain Freedman SVP – General Strong, well-established relationships VP of Merchandising Merchandise
Slide 10: “Good Stuff Cheap” – Ever Changing Product Assortment at Drastically Reduced Prices
“Good Stuff Cheap” – Ever Changing Product Assortment at Drastically Reduced Prices Frequently changing assortment of famous brand name products There is something for everyone Prices up to 70% below department and specialty stores (the “fancy stores”) and up to 20-50% below mass market retail
Slide 11: Distinctive Brand and Engaging Shopping Experience
Distinctive Brand and Engaging Shopping Experience Engaging Shopping Experience Distinctive Brand Unique, fun and engaging treasure hunt Witty Signage Highly Recognizable Caricatures shopping experience No frills, semi-lovely warehouse style stores featuring a broad selection of “Good Stuff Chea
Slide 12: Extremely Loyal “Ollie’s Army” Customer Base
Extremely Loyal “Ollie’s Army” Customer Base Members shop more and spend more than non-members Spend approximately 40% more than non-members per shopping trip Active members have demonstrated strong loyalty to Ollie’s Accounted for over 65% of our net sales in fiscal year 2016 Willing to d
Slide 13: Strong and Consistent Store Model Built for Growth
Strong and Consistent Store Model Built for Growth Portable, predictable, flexible, low-cost new store Year 1 Return Analysis model (dollars in thousands) Generates strong, consistent cash flow and attractive return on investment New Unit Model Real estate site selection capitalizes on ample s
Slide 14: Growth Strategies
GROWTH STRATEGIES
Slide 15: Significant Opportunity for Growth
Significant Opportunity for Growth 11 Grow our store base – Opportunity to expand our store base by ~700 units to 950 units, ~3.5x current store base (1) 22 Increase our offerings of great bargains – Enhance product offerings with expanded access to bargains as we grow 3 Leverage and expand Ollie’s
Slide 16: Tremendous White Space Opportunity
1 Tremendous White Space Opportunity Proven portability of new store model Tremendous White Space Potential(1) Entered 10(1) new states from 2011- 2017 and opened 173 net new stores(3) Expanded contiguously to leverage brand awareness and marketing 18 RI 1 13 investments 39 NJ 4 CT 2 28 DE 1 8
Slide 17: Increase Our Offerings of Great Bargains
2 Increase Our Offerings of Great Bargains Increased visibility from IPO and geographic expansion Increased inbound calls on deals Increased buying power and scale from growth Increased ability to buy directly from vendors Strict internal margin goals and deal criteria Continued focus on
Slide 18: Leverage and Expand Ollie’s Army
3 Leverage and Expand Ollie’s Army Recruit new members to Ollie’s Army and Signup build brand awareness Increase frequency of store visits and spending Select initiatives include: Mailers / Promotions Utilize data driven targeted marketing Reward member loyalty Embark on integrated socia
Slide 19: Financial Review
FINANCIAL REVIEW
Slide 20: Compelling Store and Sales Growth
Compelling Store and Sales Growth ($ Millions except store count information) Store Growth Net Sales and Comparable Store Sales 265 $890 240 234 232 $800 $762 $720 203 $638 $607 180 176 $600 $541 154 $476 131 $400 120 $200 60 $0 0 2012* 2013 2014 2015 2016 Q3 Q3 (1) 2012 2013 2014 2015 2016 Q3 16 Q3
Slide 21: Strong and Consistent Margin Profile
Strong and Consistent Margin Profile ($ Millions) Gross Profit Adjusted EBITDA $360 $140 $360 $121 $303 $120 $300 $291 $254 $247 $100 $96 $94 $240 $217 $80 $75 $76 $189 $180 $63 $60 $56 $120 $40 11.7% 11.7% 11.8% 12.3% 13.6% 12.5% 13.4% 39.8% 40.1% 39.7% 39.7% 40.5% 40.7% 40.4% $60 EBITDA Margin Gro
Slide 22: Holiday Sales Results and Outlook Update
Holiday Sales Results and Outlook Update Sales increase +19.4% and Comparable store sales increase of +3.9% (1) for Holiday Period Fiscal year 2017 outlook: Updated Outlook Prior Net Sales ~ $1,070M $1,062M - $1,065M Comp Sales ~ 2.8% 2.0% to 2.5% Net Income Per ~ $1.38 $1.36 to $1.37 Diluted Share
Slide 23: Formula For Success
Formula For Success Highly experienced and disciplined teams “Good Stuff Cheap”—Ever Tremendous white space changing product assortment opportunity at drastically reduced prices Distinctive brand and Strong and consistent store engaging shopping model built for growth experience Extremely loyal “Oll
Slide 24: Appendix
SEQ began APPENDIX
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ Thousands) Reconciliation of Net Income to Adjusted EBITDA Q3 YTD Fiscal Year 2017 2016 2016 2015 2014 2013 2012 Net Income $57,540 $35,344 $59,764 $35,839 $26,915 $19,541 $12,899 Interest Expense, Net $3,601 $4,540 $5,935 $15,416 $18,432 $17,493 $9,801 Loss on Exti
Slide 26: ICR Conference January 2018
SEQ began ‘GOOD STUFF CHEAP’ ICR Conference January 2018
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