American Outdoor Brands, Inc. · NASDAQ:AOUT
American Outdoor Brands — Investor Presentation (September 2024)
40 slides from American Outdoor Brands's investor presentation, Sep 5, 2024
Slide 1: Investor Presentation September 2024
Exhibit 99.1 Investor Presentation September 2024 Leveraging our culture. of innovation. Delivering solutions for the moments that matter. Nasdaq: AOUT
Slide 2: Required Disclosures
Required Disclosures 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, the Company conside
Slide 3: Consumers are increasingly overwhelmed by noise and choice
Consumers report being increasingly overwhelmed by noise and choice. 74% of consumers surveyed recently by Accenture said they walked away from purchases simply because they felt overwhelmed. 3
Slide 4: Differentiating our brands and standing out from the noise
We’ve developed a way to differentiate our brands and stand out from the noise
Slide 5: noise
noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise noise
Slide 6: Innovation resonates with U.S. consumers
Innovation resonates with U.S. consumers 76% are willing to pay more for products that align with their values, such as innovation and sustainability. 70% have tried a new shopping behavior, including experimenting with innovative products, during the past two years. 63% prefer to purchase new produ
Slide 7: We Are an Innovation Company
AOB is an innovation company that operates within the outdoor enthusiast industry — we believe long-term growth is being driven by consumer participation and enthusiasts hungry for exciting new products. We Are an innovation Company what if we could change how 54 million people fish? 7
Slide 8: We Operate in Two Categories
We Operate in Two Categories Our ~20 brands serve consumer activities organized into two categories – Outdoor Lifestyle and Shooting Sports. Outdoor Lifestyle $109M TTM Net Sales Land Management & Hunting Rugged Outdoor (Cutlery) Meat Processing & Outdoor Cooking Fishing Camping *Brand listing above
Slide 9: We Target Resilient Consumer Activities
We Target Resilient Consumer Activities Approximately 175 million Americans participate in outdoor recreation. We thrive in categories where consumers are passionate, can participate for a lifetime, and activities are "gear-rich" in nature. ~92M OUTDOOR COOKING HOUSEHOLDS PEDA ~54M ANGLERS 2x more p
Slide 10: Our superpower is uncovering consumer pain points
These passionate consumers seek out gear that enhances their enjoyment. Our superpower is uncovering their pain points. Image FINALLY, SHOOTING RESTS THAT ELIMINATE THE KICK. 10 Image FINALLY, SHOOTING RESTS THAT ELIMINATE THE KICK. LEAD SLED CALDWELL 10 take the punishment out of sighting in your r
Slide 11: Mixing things up to solve consumer pain points
But solving consumer pain points isn’t always obvious, so we’ve learned to mix things up. Like a painter mixing colors, our most innovative ideas often come from blending technologies across our two categories: Shooting Sports & Outdoor Lifestyle. 11
Slide 12: Blending technologies to deliver a disruptive product
Blending technologies from our two categories can tip the scale to deliver a truly disruptive product Our BUBBA Pro Series Smart Fish Scale is the first scale to gamify fishing for 54M anglers. It incorporates technology from our Shooting Sports and Outdoor Lifestyle categories: Cloud Technology & A
Slide 13: BUBBA Smart Fish Scale resonates with the consumer
… that resonates with Became the Official Scale MAJOR LEAGUE FISHING Our #3 Bestselling Product in 1Q25 the consumer Game changer. "It was absolutely worth the 3-4 month wait for release." What can you say it's a BUBBA. "What's there not to like? Everything I've bought that says BUBBA on it, from kn
Slide 14: Creating new brands from scratch
We’re not afraid to try new things like creating new brands from scratch. We created this brand a few years ago. It reached $14M in sales last year. 14
Slide 15: Consumers are responding to our innovation
Consumers are responding to our innovation. It’s starting to stack up 15
Slide 16: Innovation Is Our Growth Engine
Innovation Is Our Growth Engine Our proven innovation platform has been stacking up, yielding $60M+ of incremental organic revenue compared to four years ago, while protecting future revenue potential with 169 new patents. Annual Net Sales Contribution from New Products 4-Year CAGR = 40%+ $21M Produ
Slide 17: Our new product pipeline is swelling
Our new product pipeline is swelling. Our innovation engine is predictive, driven by our repeatable and scalable process, yielding a pipeline that extends well into the future. 17
Slide 18: Innovation is the key to unlocking growth with retailers
We believe innovation is also the key to unlocking growth potential with retailers. Our value proposition: innovation is exciting – it attracts consumers because it offers them real value. 18
Slide 19: Innovation forms the basis for our 4-Pillar growth strategy
Innovation deepens existing customer relationships while attracting new ones – it forms the basis for our 4-Pillar growth strategy: 1. Gain Market Share 2. Enter New Product Categories 3. Enter New Consumer Markets 4. Expand Distribution Displace competition by expanding our existing lines e.g., lev
Slide 20: Because innovation is our core competency, we are asset-light
Because innovation is our core competency, we are asset-light, by design. 20
Slide 21: We Are Intentionally Asset-Light
We Are Intentionally As an innovation company, we maintain an asset-light operation with outsourced manufacturing and scalable infrastructure in place to support $400 million in revenue. Asset-Light Big infrastructure Small footprint (<300 employees, 1 DC) Owned manufacturing Design all products our
Slide 22: Even giants started out small
Even giants started out small. We’re a small public company today, but we have a winning culture, strategy, and discipline to be significantly larger. We’ve set our sights on $400M in future net sales, ~2x larger than today. We believe this is achievable by continuing to execute on our extensive inn
Slide 23: Our Operating Model is Highly Accretive
Our Operating Model is Highly Accretive We have a track record of delivering incremental margin on revenue growth above $200M in net sales. We believe our brands are capable of $400M in net sales – at that level, we expect EBITDAS to exceed $70M. Net Sales & Adjusted EBITDAS % ($ in millions) Illust
Slide 24: Flexibility for growth and stability
We believe flexibility is important for both growth and stability. Our balance sheet would agree... 24
Slide 25: Our Balance Sheet Provides Flexibility
Our Balance Sheet Provides Flexibility We have resources to fuel our growth, with a debt-free balance sheet and access to capital for organic growth, opportunistic and disciplined M&A, and stock buybacks. Cash on Hand $23.5M (as of 7/31/24) No Debt $0 Flexible Capital Allocation 1. Fuel organic grow
Slide 26: Summary Investment Considerations
Owning a stake in AOB is owning a stake in innovation. Summary Investment Considerations 1. Large, resilient consumer end markets 2. Ability to blend technologies across two categories 3. Innovation vitality – it’s stacking up 4. Swelling new product pipeline for future growth 5. Asset-light, by des
Slide 27: 1Q FY25 Highlights
1Q FY25 Highlights International Net Sales +21% Adjusted EBITDAS +77% Ending Cash $23.5M Growth Products Fishing, Hunting Meat Processing Target Shooting New Products 23% of Net Sales Gross Margin GAAP: 45.4% Non-GAAP: 46.0% 27 +60bps
Slide 28: Recent Financial Performance
Recent Financial Performance 1Q FY25 Net Sales $41.7M -4.1% Non-GAAP Gross Margin 46.0% +60 bps Adjusted EBITDAS $2.0M +76.9% Cash Balance $23.5M 28
Slide 29: FY25 Financial Outlook
FY25 Financial Outlook We believe that Fiscal 2025 Net Sales could grow by as much as 2.5% compared to Fiscal 2024, with Adjusted EBITDAS margins of 5.5% - 6.0%. Net Sales +2.5% Growth of up to Adjusted EBITDAS Margin 5.5% - 6.0% +60 to +110 bps 29
Slide 30: Appendix
Appendix 30
Slide 31: Net Sales Category Breakout
Net Sales Category Breakout While the Shooting Sports category has been roughly flat since FY20, Outdoor Lifestyle category has grown over 42%, driven by fishing, hunting, meat processing, and outdoor cooking products. Outdoor Lifestyle Shooting Sports ($ in millions) $76.5 $109.4 $109.0 FY20 FY24 T
Slide 32: Go-to-Market Expansion
Go-to-Market Expansion As we grow in the future, we expect our net sales to be comprised of 65% Outdoor Lifestyle, 10% international, and an even split between Traditional and e-Commerce. By Product Category By Geography By Sales Channel ($ in millions) = Outdoor Lifestyle = Shooting Sports $400 $16
Slide 33: Diverse Customers & Channels
Diverse Customers & Channels National Retailers Academy SPORTS+OUTDOORS CANADIAN TIRE SCHEELS Bass Pro Shops DICK'S SPORTING GOODS SPORTSMANS Walmart WAREHOUSE We have an ever-expanding distribution network, delivering our products wherever consumers may shop. In addition, each of our key brands has
Slide 34: Executive Team
Executive Team James Tayon Chief Product Officer Brent Vulgamott Chief Operating Officer Andy Fulmer Chief Financial Officer Liz Sharp VP, Investor Relations Brian Murphy President & CEO, Director
Slide 35: Income Statement
Income Statement AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) For the Three Months Ended July 31, 2024 2023 (Unaudited) Net sales $ 41,643 $ 43,445 Cost of sales 22,717 23,726 Gross profit Operating expenses: Research and
Slide 36: Balance Sheet
Balance Sheet AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS As of: July 31, 2024 (Unaudited) April 30, 2024 (In thousands, except par value and share data) Current assets: Cash and cash equivalents Accounts receivable, net of allowance for credit losses of $114 on
Slide 37: Statement of Cash Flows
Statement of Cash Flows AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended July 31, 2024 2023 (In thousands) Cash flows from operating activities: Net loss $ (2,365) $ (4,113) Adjustments to reconcile net loss to net cash provi
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited) For the Three Months Ended July 31, 2024 2023 GAAP gross profit $ 18,926 $ 19,719 Non-recurring inventory
Slide 39: Adjusted EBITDAS Reconciliation
Adjusted EBITDAS Reconciliation AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDAS (In thousands) (Unaudited) For the Three Months Ended July 31, GAAP net loss $ Interest (income)/expense Income tax expense Depreciation and amortization Stock
Slide 40: American Outdoor Brands Investor Relations
American outdoor brands Liz Sharp VP, Investor Relations LSharp@aob.com Website: www.aob.com 41
American Outdoor Brands — Investor Presentation (September 2024) on 6ix