Sportsman's Warehouse Holdings, Inc. · NASDAQ:SPWH
Sportsman's Warehouse — William Blair Growth Stock Conference 2015
26 slides from Sportsman's Warehouse's conference presentation, Jun 9, 2015
Slide 1: William Blair Growth Stock Conference
Slide 2: Forward Looking Statements & Non-GAAP Measures
Forward Looking Statements & Non-GAAP Measures In this presentation, we will make statements about our future plans and prospects, including statements about our financial position, financial targets, business strategy and store opening pipeline, that constitute forward- looking statements. Actual r
Slide 3: Our mission
Our mission is to provide outdoor enthusiasts, casual users, and first-time participants with quality brand-name hunting, fishing, camping and shooting merchandise within a convenient shopping environment, serviced by passionate, knowledgeable associates, to create a memorable outdoor experience.
Slide 4: Sportsman's Warehouse Overview
Sportsman’s Warehouse Overview = High-growth outdoor sporting goods retailer = One-stop shopping experience with the right gear at the right time = Tailored merchandise and in-store events to meet local conditions and demand = Passionate associates, highly knowledgeable about local market conditions
Slide 5: Large, Growing and Highly-Fragmented Outdoor Sporting Goods Industry
Large, Growing and Highly-Fragmented Outdoor Sporting Goods Industry = Industry size estimated to be in excess of $50 billion = Sportsman's Warehouse is one of a select number of pure play outdoor specialty retailers = Mom & Pop retailers estimated to represent 65% of industry ™ Participation rates
Slide 6: NSSF Adjusted NICS
NSSF Adjusted NICS 600,000 400,000 & z Nov-00 May-01 Nov-01 May-02 Nov-02 May-03 ‘Source: Navona! sheobngsportsFoundaven Nov-03 May.04 Nov.04 May-05 Nov.05 EDS CURPEPSV Gre c=: 28.8). 2) 3. 2.3) Bee oe Average Monthly CAGR 2005-2014) 64% POR AT MOPS Rie NS Les,
Slide 7: Unique Customer Value Proposition
Unique Customer Value Proposition SEEN Sao CS GANDER sea.ct West All South East Midwest All Concentration US Stores 6 R 8 161 1 NA Western Penetration of 87 19 1" 2 None NA Stores!” Depth of Monae One-stop One-stop One-stop ‘One-stop ‘One-stop ees ~70,000 SKUs ~160,000 SKUs (NA) (na) (Na) Selection
Slide 8: 300+ Store Opportunity with Attractive Store Economics
300+ Store Opportunity with Attractive Store SEEN Economics arr Low Initial Investment per Store New Store Economics ineatens Including initial 1 Excluding initial TET aa ineanes 1 ventory Investment Naina one t 1 Pes Initial Inventory $24 million i Excluding Inventory Including Inventory H Year 4 R
Slide 9: Investment Highlights
Investment Highlights C) Differentiated Outdoor Specialty Retail Experience { z ) Comprehensive, Locally Relevant Product Assortment and Merchandising Strategy () Disciplined and Adaptable Real Estate Strategy () Significant White Space Opportunity (:) Passionate and Experienced Management Team with
Slide 10: Differentiated Outdoor Specialty Retail Experience
Differentiated Outdoor Specialty Retail Experience Differentiated Shopping Experience and Engaging Gee ORISMANG and Highly Knowledgeable Sales Associates = Conveniently Located Stores with Easy-In, Easy-Out ewer) Access = Locally Relevant Features = Store Layout is Easy to Navigate with Wide Aisles
Slide 11: Comprehensive, Locally Relevant Product Assortment and Merchandising Strategy
Compreher Locally Relevant Product Assortment and Merchandising Strategy Deep Understanding of Market Needs Local Merchandising is Key = What activities are involved? = Public or private land? . Hunting or fishing or camping or a = What fish am | targeting? combination? = Salt water or fresh water?
Slide 12: Local Marketing Focus
Comprehensive, Locally Relevant Product Assortment and Merchandi Local Marketing Focus Effective “Localized” Advertising Grass Roots Campaigns Billboards — ay Heetask Got suze siamtee LEUPOLD EXTRAVAGANZA: = ~13 million total visitors to website during FY 2014 = Numerous product videos and how-to vi
Slide 13: Disciplined, Analytics-Driven Real Estate Strategy
Disciplined, Analytics-Driven Real Estate SPORTSMAN ) _ Strategy Maximizes Coverage and Returns ar, Rigorous Site Selection Process = Analyze market characteristics and economic viability with local real estate firms and internal committee — Density of hunting / fishing license holders = Abundance o
Slide 14: Significant White Space Opportunity
Significant White Space Opportunity (3 Significant White Space Opportunity =e Significant White Space Opportunity Relative White Spacet*) Number of Sportsman's Warehouse stores FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Tongetern W0TA EES soa Cabs Bemsee cme EE EM te, New Store Pipeline = Nine
Slide 15: Store Locations
Significant White Space Opportunity Store Locations — Sportsman’s Warehouse iis © sporsmse's warenouse oeston 14 POR AMOR eRe ND Les,
Slide 16: Significant White Space Opportunity
Significant White Space Opportunity
Slide 17: Significant White Space Opportunity: Available Markets
nificant White Space Opportunity. Available Markets Total U. Profitably Serve Small and Large MSAs with Attractive Economics >moon” sono 209m .s99mm01 | 75.0 | snORD. 74999 “MSA panes Sze Store Distribution MSA Current Sportsman's TTM4-Wall Population Size Warehouse Stores EBITDA%® Less than 100k B
Slide 18: Significant White Space Opportunity: Available Markets by Region
Significant White Space Opportunity (3 Available Markets ae) y wi =~ ie Region: West Region: Midwest { =F.go0000 so0009 2s000n!e 199aEO "75.6019 me ST Wa opumton size somma | < 0000 omen” sap 29m | TOUaEON TE. ete eyes ages esc G8 sed MSA Population Size 50,000, Region: South Region: Northeast *owod
Slide 19: Passionate and Experienced Management Team with Proven Track Record
Passionate and Experienced Management Team with Proven Track Record (3 a Passionate and Experienced Management GORMAN Team with Proven Track Record Pea cate ai * Directed successtl consumer and E-Commerce retal companies including Eastbay, Comerstone ohn Schaefer Chief Executive Officer 6 ‘Brands en
Slide 20: Financial Highlights
Financial Highlights 19 POR AMOR Rie ND Les,
Slide 21: Historical Financial Overview
Historical Financial Overview Net Sales and Store Count Same Store Sales (Net sales arin $ilons) (Geincrease over proryeer) 1 Mi nersaes sear soo | 254% 1 Bistors 1 ' 1 ssz00 EH i an 3708 : fu ' saa on ee ' 20 hie 2 ' ; ne & 31% 1 om 4 Li) vas f fvaniopya0i Ya | ryanta eyzoie ” ryane rae ~ Fram era
Slide 22: Capitalization, Capital Expenditures and Free Cash Flow
Capitalization, Capital Expenditures and Free GEN NG) _ Cash Flow ee Q1 2015 5/2/2015 (Sinmilions) EBITDAM ABL Working Capital Facility 52.3 0.8x Term Loan, Net of Discount 187.7 25x Total Debt $210.0 3.3x Capital Expenditures Free Cash Flow®) (Sin mitions) ($n milions) $525 $302 $458 $249 $208 ‘i $
Slide 23: Appendix: GAAP Reconciliations
Appendix: GAAP Reconciliations POR AMOR eRe oN Les,
Slide 24: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow Fiscal Year Ended January 29, January 28, February 2, February 1, January 31, (Sin thousands) 2014 2012 2013 2014 2015 Net income $5,244 $33,694 $28,074 $21,750 $13,784 Plus: § Interest expense 5,678 4,302 6321 25,447 22,480 Income t
Slide 25: GAAP and Non-GAAP Measures (Unaudited)
GAAP and Non-GAAP Measures (Unaudited) § For the Thirteen Weeks Ended (S in thousands) May 2, 2015 May 3, 2014 Income (loss) fom operations $ 1,28 $ (@21) IPO-bonus (1) - 2.200 [dusted income from operations $ 1,248 $ 4,979 Numerator: Net loss $ (1,360) § IPO bonus (1) 2 Less tax beneft related to I
Slide 26: GAAP and Non-GAAP Measures: Key Notes and Assumptions
GAAP and Non-GAAP Measures (Unaudited) SEEN Key Notes and Assumptions Sar, (1) As a result of the completion of our initial public offering and pursuant to the terms of the employment agreements with our executive officers, we paid $2.2 million in bonuses to our executive officers. (2) Assumes our I
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