Traeger, Inc. · NYSE:COOK
Traeger — Q3 2022 Earnings Presentation
19 slides from Traeger's earnings presentation, Nov 10, 2022
Slide 1: Investor Presentation Third Quarter 2022
INVESTOR PRESENTATION THIRD QUARTER 2022
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, incl
Slide 3: This New BBQ-Inspired Whiskey Was Made in Collaboration with Traeger Grills
This New BBO-Inspired Whiskey Was Made in Collaboration with Traeger Grills WhistlePig Whiskey and Traeger [5 Grills Team Up for a Special BBQ if fia Ultimate Ultimate || Griling Shirt Grilling Shorts FRIED PICKLE POPPERS
Slide 4: Our Mission is to Create a More Flavorful World
CEO COMMENTARY "During the third quarter, our topline was pressured as macroeconomic uncertainty continued to weigh on the consumer and our retail partners aggressively reduced in-channel inventories. Despite these challenges, we made progress on our near-term strategic priorities and took decisive
Slide 5: 3rd Quarter at a Glance
3rd QUARTER AT A GLANCE Revenue Mix (2) $94MM 29.4% Revenue Adj. Gross Margin (1) 27% 42% ($13MM) (13.3%) 32% Adj. EBITDA (1) Adj. EBITDA Margin (1) Grills Accessories Consumables 5 5
Slide 6: Reshaping the P&L and Rightsizing Working Capital
RESHAPING THE P&L AND RIGHTSIZING WORKING CAPITAL Reduce Cost Structure Rightsize Inventories Drive Gross Margin • Proactively aligning costs with lower • Sequential improvement in weeks of • Gross Margin Task Force identifying demand forecast supply in-channel in 3Q COGS savings across the supply c
Slide 7: Balance Sheet Flexibility and Liquidity
BALANCE SHEET FLEXIBILITY AND LIQUIDITY Recent Significant Actions to Increase Financial Available Liquidity Flexibility ($MM) Increased Balance Sheet Flexibility $86 • Given the macroeconomic backdrop, in August 2022 we entered into an agreement to amend financial covenants under our First Lien Cre
Slide 8: Growth Pillars: Quarterly Highlights
GROWTH PILLARS: QUARTERLY HIGHLIGHTS 1 Accelerate Brand Awareness • Unaided Brand Awareness hit an all-time high in 3Q, growing 15% versus the start of 2022 and up 50% versus two years ago • 3Q User Generated Content posts up ~50% versus last year; video views tripled versus prior year across social
Slide 9: Financials
FINANCIALS
Slide 10: 3rd Quarter 2022 Revenue Highlights
3rd QUARTER 2022 REVENUE HIGHLIGHTS TOTAL REVENUE $MM $162 (42.1%) $94 3Q 2021 3Q 2022 GRILL REVENUE CONSUMABLES REVENUE ACCESSORIES REVENUE $MM $MM $MM 17.7% $30 $25 (10.3%) (64.2%) $109 $28 $25 $39 3Q 2021 3Q 2022 3Q 2021 3Q 2022 3Q 2021 3Q 2022 Note: 3Q 2022 Total Revenue and Accessories Revenue
Slide 11: 3rd Quarter Multi-Year Revenue Results
3rd QUARTER MULTI-YEAR REVENUE RESULTS TOTAL REVENUE $MM 8.6% CAGR $162 $145 $94 $73 3Q 2019 3Q 2020 3Q 2021 3Q 2022 GRILL REVENUE CONSUMABLES REVENUE ACCESSORIES REVENUE $MM $MM $MM $30 10.9% 84.9% $25 (8.0%) CAGR CAGR CAGR $32 $28 $25 $104 $109 $18 $9 $50 $5 $39 3Q 2019 3Q 2020 3Q 2021 3Q 2022 3Q
Slide 12: 3rd Quarter 2022 Profitability Highlights
3rd QUARTER 2022 PROFITABILITY HIGHLIGHTS GROSS MARGIN $MM 33.5% 27.7% Gross Margin $54 $26 3Q 2021 3Q 2022 ADJUSTED EBITDA (1) $MM 2.5% (13.3%) Adjusted EBITDA Margin (1) $4 3Q 2021 3Q 2022 ($13) ADJUSTED NET INCOME (7) $MM 3Q 2021 3Q 2022 ($7) ($26) Note: 3Q 2022 Gross Margin includes $1.6 million
Slide 13: FY 2022 Guidance
FY 2022 GUIDANCE UPDATED GUIDANCE AT THE LOW-END TO SLIGHTLY BELOW PRIOR GUIDANCE RANGE FOR THE FULL YEAR REFLECTING CONTINUED PRESSURE ON 4Q SALES DUE TO RETAILER DESTOCKING. METRIC CURRENT OUTLOOK PRIOR OUTLOOK Total Revenue $635MM - $640MM $640MM - $660MM Gross Margin 35% (8) 35% Adjusted EBITDA
Slide 14: Gross Margin Bridge: FY 2019 vs. FY 2021 vs. FY 2022 Guidance
GROSS MARGIN BRIDGE: FY 2019 VS. FY 2021 VS. FY 2022 GUIDANCE GROSS MARGIN % 42.9% 38.7% (8) 35% FY 19 Actual Grill Price Grill Cost & Mix FX Freight & Other FY 21 Actual Grill Price Grill Cost & Mix Freight & Other FY 22 Guidance Logistics Logistics FACTORS IMPACTING FY 22 GROSS MARGIN GUIDANCE • S
Slide 15: Appendix
APPENDIX TRAEGER
Slide 16: Footnotes
FOOTNOTES 1. Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Gross Margin are non-GAAP measures. See the appendix to this presentation for a presentation of, and a reconciliation of these measures to, the nearest comparable GAAP measures, including Net Income (Loss), Net Income (Loss) Margin,
Slide 17: Information Regarding Non-GAAP Financial Measures
INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES In addition to our results and measures of performance determined in accordance with U.S. GAAP, we believe that certain non-GAAP financial measures are useful in evaluating and comparing our financial and operational performance over multiple periods
Slide 18: Presentation of Comparable GAAP Measures and Reconciliations of Non-GAAP Financial Measures
PRESENTATION OF COMPARABLE GAAP MEASURES AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Three Months Ended September 30, Nine Months Ended September 30, (amounts in thousands, except share and per share amounts) 2022 2021 2022 2021 Net loss $(210,449) $(89,185) $(351,160) $(55,163) Adjustments:
Slide 19: Presentation of Comparable GAAP Measures and Reconciliations of Non-GAAP Financial Measures
PRESENTATION OF COMPARABLE GAAP MEASURES AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Three Months Ended September 30, 2022 Gross margin 27.7% Add: Impact of restructuring costs recorded in cost of revenue 1.7% Adjusted gross margin 29.4% RECONCILIATION OF DEBT TO NET DEBT September 30, (amoun