Srx Health Solutions, Inc. · AMEX:SRXH
Srx Health Solutions — Better Choice — Q1 2021 Earnings Presentation
23 slides from Srx Health Solutions's earnings presentation, May 13, 2021
Slide 1: Better Choice Company, Inc. Q1 2021 Financial Results
Better Choice Company, Inc. Q1 2021 Financial Results May 13, 2021
Slide 2: Safe Harbor
Safe Harbor This presentation contains information, statements, beliefs and opinions which are forward-looking, and which reflect current estimates, expectations and projections about future events, referred to herein and which constitute “forward-looking statements” or “forward-looking information”
Slide 3: BTTR Has A Clear Strategy For Rapid Growth
BTTR Has A Clear Strategy For Rapid Growth BECOME A CLEAR LEADER IN PREMIUM+ PET FOOD FOR CATS AND DOGS. LEAD GLOBAL INNOVATION IN THE PREMIUM+ PET FOOD CATEGORY. UTILIZE AN OMNI-CHANNEL APPROACH LEVERAGING ECOMMERCE. 3Note: Premium+ defined as the premium through ultra-premium segments
Slide 4: With A Dynamic Company Culture
With A Dynamic Company Culture • Our Mission: Become the most innovative premium pet food company in the world. • Our Vison: The pet food company that excites creativity, optimism, and well-being. • Company Values: o Make products with integrity o Treat pets and their parents with respect o Create l
Slide 5: We Have Assembled A World Class Team
We Have Assembled A World Class Team Ready to take the lead position in the pet food industry 5
Slide 6: A Leadership Team Positioned To Win
A Leadership Team Positioned To Win Scott Lerner CEO Alex Vournas VP Supply Chain Donald Young EVP Retail Sales Sharla Cook CFO Rob Sauermann EVP Strategy Ryan Wilson VP Marketing Jenny Condon EVP Digital Sales 6 • Scott Lerner – Consumer products veteran with 20+ years of experience; track record o
Slide 7: BTTR Has 35+ Years of Success
BTTR Has 35+ Years of Success • The Halo and TruDog brands have a long history of success in the market and have positioned the company for growth • Both brands were born out of the idea to deliver BETTER nutrition and wellness CHOICES to help furry family members live healthier, happier and longer
Slide 8: Two Complementary Brands With Innovative Opportunities for Consolidation
Two Complementary Brands With Innovative Opportunities for Consolidation Over Time • A 35-year-old, super premium natural pet food brand uniquely differentiated from its competitors • Using natural whole meat and no rendered meat meal • Highly digestible due to the use of real whole protein Histor
Slide 9: Best-in-Class Products Delivering On Core Consumer Needs
Best-in-Class Products Delivering On Core Consumer Needs 9
Slide 10: Simplifying Our Business To Drive Success
10 Simplifying Our Business To Drive Success • Growing 2 differentiated business models is overly complex, costly, and time consuming
Slide 11: One Halo Brand!
One Halo Brand! Driven by creativity and innovation 11
Slide 12: Creates A Smarter Approach
Creates A Smarter Approach 12 One mega Halo brand that spans across all channels domestically and internationally. 01 Allows for a strong “Halo” marketing effect across all sub-brands to maximize spending. 02 While talking to the consumer at an efficient higher master brand and emotional level. 03 E
Slide 13: And Leverages A Differentiated Omni-Channel Strategy
And Leverages A Differentiated Omni-Channel Strategy Ecommerce Brick & Mortar DTC• Multiple channels allows BTTR to optimize margin by maneuvering revenue from one channel to the next on a monthly basis as needed • By eliminating channel conflict it opens up our ability to share resources from one c
Slide 14: International Expansion Is A Key Strategy
International Expansion Is A Key Strategy • We believe growth in Asia is fueled by increasing levels of economic financial status and demand for premium, western manufactured products, with China representing the largest market opportunity for growth • Halo realized an impressive 95% YoY sales growt
Slide 15: BTTR Has A First-Mover Advantage In China
BTTR Has A First-Mover Advantage In China 15 Chinese Market Opportunity: • Chinese pet market estimated to be ~$7 billion by 2022 • Only ~10% of urban households in China own a pet (Mordor Intelligence) • Premium dry cat food market growing at 28% CAGR (2015 – 2025F; Euromonitor) • Premium dry dog f
Slide 16: BTTR Is Focused on Maximizing Shareholder Value
BTTR Is Focused on Maximizing Shareholder Value • E-Commerce, DTC & Pet Specialty work together to create a “Halo” effect • Recent team member additions expected to drive Pet Specialty growth Anchored in high growth channels • Consistent near-doubling of international sales YoY with contracted minim
Slide 17: While Simultaneously Sourcing & Evaluating Transformative M&A Transactions
• We remain committed to locating the right assets that meet our investment criteria • Strong industry contacts increase our ability to source transactions internally and avoid highly competitive auctions • Preference for asset light models that avoid channel confliction / competition with Halo & Tr
Slide 18: 1Q 2021 Financial Highlights
1Q 2021 Financial Highlights Strong Base for Growth in Core Channels Q1 2021 Results: Gross Sales: $13.4m Net Sales: $10.8m Gross Profit: $4.3m Q1 2021 Net Sales by Channel: E-Commerce: 37% DTC: 22% Brick & Mortar: 18% International: 23% Q1 Adjusted EBITDA Reflects Investment in Brand Re-Launch Q1 2
Slide 19: Adjusted EBITDA Reconciliation 1Q 2021
1919 Adjusted EBITDA Reconciliation 1Q 2021
Slide 20: 1Q Income Statement Adjusted EBITDA Reconciliation
2020 1Q Income Statement Adjusted EBITDA Reconciliation Adjusting for Non-Cash and Non-Recurring Charges, Q121 Adjusted EBITDA was ($1.1m) ($ 000’s) Three Months Ended March 31, 2021 Non-Cash Non-Recurring Adjusted Net sales 10,830$ 10,830$ Cost of goods sold 6,556 6,556 Gross profit 4,274 - - 4,2
Slide 21: Financing Activity and Potential Balance Sheet Changes in Uplist
• January 2021: $12.0m Credit Facility closed with Wintrust Financial ($6.0m TL; $6.0m Revolver) • Completed refinancing of the Bridge Loan, extending existing maturities and reducing annual cash interest expense by ~$2m • Reduction in leverage of ~$2m relative to December 31, 2020 balance sheet • J
Slide 22: The New Halo Brand Strategy Simply Works!
The New Halo Brand Strategy Simply Works! 1. Easy to execute in market 2. Creates a “Halo” effect 3. Leverages internal scale 4. Allows for selective M&A opportunities over time 22
Slide 23: Thank You
Thank You 23