American Outdoor Brands, Inc. · NASDAQ:AOUT
American Outdoor Brands — Investor Presentation (September 2022)
30 slides from American Outdoor Brands's investor presentation, Sep 8, 2022
Slide 1: Investor Presentation September 2022
INVESTOR PRESENTATION September 2022 NASDAQ: AOUT
Slide 2: Forward-looking statements
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Certainstatementscontainedinthispresentationmaybedeemedtobeforward-lookingstatementsunderfederalsecuritieslaws,andweintendthatsuchforward-lookingstatementsbesubjecttothesafeharborcreatedthereby.Allstatementsotherthanstatementsofhistoricalfactscontainedorincorpo
Slide 3: Q1 FY23 Highlights
Q1 FY23 Highlights
Slide 4: Disciplined execution of long-term value creation strategy
American Outdoor Brands (NASDAQ: AOUT) Disciplined execution of LONG-TERM value creation strategy 1 2 3 ORGANIC GROWTH M&A RETURN CAPITAL TO SHAREHOLDERS PATH TO $400M+ SEEK TARGETS THAT MEET OUR IDEAL CRITERIA SHARE REPURCHASE PROGRAM Q1 FY23 Achievements - Net sales growth of over 31% vs. pre-COVI
Slide 5: Sustained growth compared to pre-pandemic levels
American Outdoor Brands (NASDAQ: AOUT) Sustained growth compared to pre-pandemic levels Demonstrated Net Sales Growth $25 $20 $15 $10 $5 $- $15.1 54% Growth $23.3 $18.1 $20.4 13% Growth Q1 FY20 Q1 FY23 Q1 FY20 Q1 FY23 Outdoor Lifestyle Shooting Sports Mix Shift Toward Outdoor Lifestyle Outdoor Lifes
Slide 6: Grilla: exclusive turn-key outdoor cooking ecosystem
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) GRILLA: EXCLUSIVE “TURN-KEY” OUTDOOR COOKING ECOSYSTEM Wifi Pellet Grills Gas Grills Griddles / Flat Tops All Major Outdoor Cooking Platforms Offered … ... Designed with an Ecosystem in Mind … “I have a [Silverback] and Primate. I got the 3-piece kitchen but ne
Slide 7: DTC-only brands delivered over 15% of Q1 net sales
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) DTC-ONLY BRANDS DELIVERED OVER 15% OF Q1 NET SALES … 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 from Gr
Slide 8: Grilla: opportunity to become $100M+ revenue brand
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) ~$1.8B* Potential $100M+ 1. Rapidly growing, “sticky” audience 2. Disruptive new product pipeline 3. Recurring revenue base growth 4. Untapped distribution ~$761M* CY 21 $15M GRILLA: OPPORTUNITY TO BECOME $100M+ REVENUE BRAND * Trailing twelve-month net sales b
Slide 9: Building authentic, lifestyle brands
“Building authentic, lifestyle brands that help consumers make the most out of the moments that matter.”
Slide 10: Investment highlights
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) AMERICAN OUTDOOR BRANDS .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”™formul
Slide 11: At a glance
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) AMERICAN OUTDOOR BRANDS, INC. AT A GLANCE TTM Net Sales $230.4 million Growth Target $400M+ TTM Gross Profit Margin 45.3% Target Adj. EBITDAS Margin % Mid-to High-teens TTM Adjusted EBITDAS $26.9 million, or 11.7% Headquarters Columbia, Missouri Net Debt $2.5 m
Slide 12: Large, passion-driven industry
Hunting Fishing Camping Hiking Paddling Archery Shooting LARGE, PASSION-DRIVENINDUSTRY a) Basedon a2017 reportissuedbythe Outdoor IndustryAssociation.
Slide 13: Favorable outdoor activity macro trends
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) FAVORABLE OUTDOOR ACTIVITY MACRO TRENDS OUTDOOR PARTICIPATION TRENDS >50% of the U.S. Participates in Outdoor Recreational Activities ~9M Number of first-time camper households in 2021 (KOA) 14M New entrants per NSSF: 2020: 40% of 21M Adj NICS 2021: 30% of 18M
Slide 14: Diverse portfolio of early-stage consumer brands
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) DIVERSE PORTFOLIO OF 21 EARLY-STAGE CONSUMER BRANDS Note:American Outdoor Brands, Inc. licenses the brands Smith & Wesson® Accessories; M&P® Accessories; Thompson/Center Arms™Accessories; and Performance Center® Accessories, all of which are owned by Smith & We
Slide 15: Brand product categories
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Fillet knives, fishing rods, fishing tools, kitchen cutlery, apparel Grills, smokers, outdoor kitchens, pellets, & accessories Folding, fixed-blade knives Folding & fixed-blade knives, multi-tools, adventure equipment Tents, sleeping bags, mattress pads, campin
Slide 16: Strong presence in traditional and e-comm channels
American Outdoor Brands (NASDAQ: AOUT) strong presence in traditional and e-comm channels National Retailers Home, Farm, Automotive Distributors & Buying Groups OEM Traditional Channels $129.1M 56% E-commerce Channels $101.3M 44% (Q1 FY23 TTM Net Sales = $230.4 Million) Online Retailers DTC Websites
Slide 17: The Dock and Unlock formula
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Brand A x AOB Dock (Strategy + Resources) = Brand A + 8 Unlocked Potential THE “DOCK AND UNLOCK”TM FORMULA Adventurer Harvester Marksman Defender .Using our "Dock and Unlock”TMformula, we leverage our brand lanes to reframe our brands’ growth potential .Thereby
Slide 18: Dock & Unlock case study: MEAT!
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) “DOCK & UNLOCK”TMCASE STUDY Our Brand Lane structure and product development capabilities allow us to create wholly new brands that have the potential todeliver strong, incremental, organic growth. FY19 FY20 FY21 FY22 MEAT! Concept Developed internally Brand La
Slide 19: Dock & Unlock case study: BUBBA
American Outdoor Brands (NASDAQ: AOUT) “DOCK & UNLOCK”TM CASE STUDY BUBBA TM After repositioning the brand from “Bubba Blade” to “BUBBA,” we unlocked the brand’s “Permission to Play“ potential, accessing a wider audience, and expanding beyond the original saltwater fillet knife category into a multi
Slide 20: Brand permission to play drives growth potential
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) BRAND “PERMISSION TO PLAY” DRIVES GROWTH POTENTIAL Growth Opportunities ‘Docked’ Brand Lifestyle Supported(“Moments that Matter”) New Distribution Expand Market Share New Categories New Consumer Markets In the Wild In the Wild At the Campsite Water to Plate In
Slide 21: Leverageable model drives profitability
American Outdoor Brands (NASDAQ: AOUT) Leverageable model drives profitability net sales & Gross Margin $177.4 FY 47.1% FY2019 $167.4 42.2% FY2020 65% Growth 48% Growth $276.7 45.8% FY2021 $247.5 46.2% FY2022 Q1 FY23 net sales +32% vs. Q1 FY20 (pre-pandemic) Significant sales growth within e-commerc
Slide 22: Long-term financial targets
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) LONG-TERM FINANCIAL TARGETS Net Sales(1) Adjusted EBITDAS Capital Expenditures .Expand market share .New product categories .New consumer markets .New distribution .High level of operating leverage from existing brand lane platform .Adjusted EBITDAS margins exp
Slide 23: Strong balance sheet supports organic growth and acquisitions
Significant liquidity (up to ~$72M available capital) .$75M asset-based revolving credit facility, expandable by $15M .Virtually zero net debt .Strong annual free cash flow generation .Dry powder available for strategic acquisitions BALANCE SHEET AS OF JULY 31, 2022 AMERICAN OUTDOOR BRANDS (NASDAQ:
Slide 24: Appendix Follows
Appendix Follows
Slide 25: Experienced Leadership
American Outdoor Brands (NASDAQ: AOUT) Experienced Leadership BRIAN D. MURPHY President & Chief Executive Officer Lead execution of AOUT’s “Dock & Unlock”TM strategy as part of expansion into new outdoor product categories and markets Experienced leader with ability to motivate teams, build and run
Slide 26: Non-GAAP financial measures
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Inthispresentation,certainnon-GAAPfinancialmeasures,including“non-GAAPnetincome,”“non-GAAPincomepersharediluted,”“AdjustedEBITDAS,”and“freecashflow”arepresented.Areconciliationoftheseandothernon-GAAPfinancialmeasuresarecontainedattheendofthispressrelease.Arecon
Slide 27: Q1 Non-GAAP Adjusted EBITDAS Reconciliation
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Q1 NON-GAAPADJUSTED EBITDAS RECONCILIATION 2022GAAP net (loss)/income$(5,695)$3,457 Interest expense186 46 Income tax expense189 849 Depreciation and amortization4,162 4,179 Stock compensation714 752 Technology implementation769 272 Acquisition costs 47 — Share
Slide 28: Q1 GAAP Income Statement
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Q1 GAAPINCOME STATEMENT Net Sales $43,676 $60,768 Cost Of Sales 24,637 31,785 Gross Profit 19,039 28,983 Operating Expenses: Research and Development 1,756 1,521 Selling Marketing and distribution 11,780 13,200 General and administrative 11,064 10,039 total Ope
Slide 29: Q1 Non-GAAP Income Statement
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Q1 NON-GAAP INCOME STATEMENT Net Sales $ 43,676 $60,768 Cost of sales 24,637 31,785 Gross Profit 19,039 28,983 Research and Development 1,756 1,521 Selling Marketing and distribution 11,780 13,200 General and administrative 5449 5587 total Operating Expenses 18
Slide 30: AMERICAN OUTDOOR BRANDS
AMERICAN OUTDOOR BRANDS
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