American Outdoor Brands, Inc. · NASDAQ:AOUT
American Outdoor Brands — Investor Presentation (December 2022)
31 slides from American Outdoor Brands's investor presentation, Dec 1, 2022
Slide 1: American Outdoor Brands Investor Presentation December 2022
American Outdoor Brands TM NASDAQ: AOUT INVESTOR PRESENTATION December 2022
Slide 2: Legal Safe Harbor
LEGAL SAFE HARBOR Certain statements contained in this presentation may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements other than statements of historical facts
Slide 3: Q2 FY23 Highlight
American Outdoor Brands TM Q2 FY23 Highlight
Slide 4: Disciplined Execution of Long-Term Value Creation Strategy
DISCIPLINED EXECUTION OF LONG-TERM VALUE CREATION STRATEGY Q2 FY23 Achievements AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) 1 ORGANIC GROWTH PATH TO $400M+ - Net sales growth of over 14% vs. pre-COVID Q2 FY20 - E-commerce growth of 171.3% vs. Q2 FY20 - MEAT! Your Maker TTM net sales of $8.7M - Multiple n
Slide 5: Sustained Long-Term Growth
SUSTAINED LONG-TERM GROWTH AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Demonstrated Net Sales Growth Mix Shift Toward Outdoor Lifestyle • Outdoor Lifestyle Net Sales ‒ Q2 FY23 vs Q2 FY22: -12.8% ‒ Q2 FY23 vs Q2 FY20 (pre-pandemic): +22.5% • Expected to be a growing percentage of business over time • Grow
Slide 6: New: Caldwell Claymore Clay Target Thrower
NEW: CALDWELL CLAYMORE CLAY TARGET THROWER AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) • FOOT PEDAL-POWERED, NO BATTERY REQUIRED TO OPERATE • 50 CLAY CAPACITY - MORE TIME SHOOTING, LESS TIME LOADING CLAYS • COMPACT FOLDING DESIGN FOR EASY TRANSPORTATION & STORAGE • SELECTABLE FLURRY MODE LAUNCHES CLAYS A
Slide 7: Grilla: Exclusive Turn-Key Outdoor Cooking Ecosystem
GRILLA: EXCLUSIVE “TURN-KEY” OUTDOOR COOKING AOUT) AMERICAN OUTDOOR BRANDS (NASDAQ: ECOSYSTEM AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) All Major Outdoor Cooking Platforms Offered Designed with an Ecosystem in Mind Wifi Pellet Grills Gas Grills Griddles / Flat Tops “I have a [Silverbac] and Primate. I
Slide 8: DTC-Only Brands Delivered Nearly 10% of Q2 Net Sales
DTC-ONLY BRANDS DELIVERED NEARLY 10% OF Q2 NET SALES AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) 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 Gril
Slide 9: Grilla: Opportunity to Become $100M+ Revenue Brand
GRILLA: OPPORTUNITY TO BECOME $100M+ REVENUE BRAND AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) ~$1.8B * $693M * CY 21 $15M Potenti al $100M 1. Rapidly growing, “sticky” audienc 2. Disruptive new product pipeline 3. Recurring revenue base growth 4. Untapped distribution © 2022 American Outdoor Brands, Inc
Slide 10: American Outdoor Brands
American Outdoor Brands TM “We leverage our culture of innovation to deliver solutions for consumers in the moments that matter”
Slide 11: AOUT's Value Drivers
AOUT’S value drivers 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” ™ formula fuels brand growth Leverageable model dri
Slide 12: American Outdoor Brands, Inc. at a Glance
American outdoor brands, Inc. at a glance TTM Net Sales $214.1 million Growth Target $400M+ TTM Gross Profit Margin 45.4% Target Adj. EBITDAS Margin % Mid- to High-teens TTM Adjusted EBITDAS c Headquarters Columbia, Missouri Net Debt $3.6 million Fiscal Year End April 30 Net Debt / Adj. EBITDAS ~0.2
Slide 13: Large, Passion-Driven Industry
Large, passion-driven industry American Outdoor Brands (NASDAQ: AOUT) Hunting Fishing Camping Hiking Paddling Archery Shooting ~$90-100B U.S. Outdoor Recreation Market (a) Based on a 2017 report issued by the Outdoor Industry Association. 13 © 2022 American Outdoor Brands, Inc. All Rights Reserved
Slide 14: Favorable Outdoor Activity Macro Trends
FAVORABLE OUTDOOR ACTIVITY MACRO TRENDS OUTDOOR PARTICIPATION TRENDS >50% of the U.S. Participates in Outdoor Recreational Activities American Outdoor Brands (NASDAQ: AOUT) ~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 15: Diverse Portfolio of Early-Stage Consumer Brands
Diverse portfolio of 21 early-stage consumer brands Schrade Slyte USA Made Knife Line Grilla Modular Outdoor Kitchen BUBBA Fishing Rods BUBBA Smart Fish Scale and Fishing App Grilla Silverbac AT Pellet Grill OLD TIMER Trail Boss Hunting Knives Hooyman Lithium-Ion 24v Spreader BOG Sherpa ALL-IN-ONE O
Slide 16: Two Categories: Outdoor Lifestyle & Shooting Sports
Two Categories: outdoor lifestyle & shooting sports American Outdoor Brands (NASDAQ: AOUT) Outdoor Lifestyle Shooting Sports Illustrative Products Adventurer Harvester Marksman Defender Fillet knives, fishing rods, fishing tools, kitchen cutlery, apparel Grills, smokers, outdoor kitchens, pellets, &
Slide 17: Strong Presence in Traditional and E-comm Channels
strong presence in traditional and e-comm channels American Outdoor Brands (NASDAQ: AOUT) National Retailers Home, Farm, Automotive Distributors & Buying Groups OEM Online Retailers DTC Websites Traditional Channels E-commerce Channels $117.6M $96.5M 54.9% 45.1% (Q2 FY23 TTM Net Sales = $214.1 Milli
Slide 18: The Dock and Unlock Formula
American Outdoor Brands (NASDAQ: AOUT) THE “DOCK AND UNLOCK” TM FORMULA Brand A x AOB Dock (Strategy + Resources) = Brand A + ∞ Unlocked Potential Marksman Harvester Defender Adventurer Using our "Dock and Unlock” TM formula, we leverage our brand lanes to reframe our brands’ growth potential Ther
Slide 19: Dock & Unlock Case Study: MEAT!
American Outdoor Brands (NASDAQ: AOUT) “DOCK & UNLOCK” TM CASE STUDY Our Brand Lane structure and product development capabilities allow us to create wholly new brands that have the potential to deliver strong, incremental, organic growth. TTM October Net Sales $8.7M 124.2% Net Sales Growth TTM FY23
Slide 20: Dock & Unlock Case Study: BUBBA
American Outdoor Brands (NASDAQ: AOUT) “DOCK & UNLOCK” TM CASE STUDY 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 multitude of
Slide 21: Brand Permission to Play Drives Growth Potential
Brand “permission to play” drives growth potential American Outdoor Brands (NASDAQ: AOUT) ‘Docked’ Brand Lifestyle Supported (“Moments that Matter”) Growth Opportunities New Distribution Expand Market Share New Categories New Consumer Markets In the Wild In the Wild At the Campsite Water to Plate In
Slide 22: Leverageable Model Drives Profitability
Leverageable model drives profitability net sales & Gross Margin 65% Growth 48% Growth $177.4 $167.4 $276.7 $247.5 47.1% 42.4% 45.8% 46.2% FY2019 FY2020 FY2021 FY2022 Long-term growth driven by leveraging brand lane platforms "Dock & Unlock”TM strategy allows for expansion into new product categorie
Slide 23: Long-Term Financial Targets
Long-term financial targets Long-Term Long-Term Drivers Net Sales(1) Path to $400M+ Expand market share New product categories New consumer markets New distribution Adjusted EBITDAS Mid to high teens % High level of operating leverage from existing brand lane platform Adjusted EBITDAS margins expect
Slide 24: Strong Balance Sheet Supports Organic Growth & Acquisitions
Strong balance sheet supports organic growth & acquisitions balance sheet As of October 31, 2022 Assets ($M) Cash Other Current Assets Intangibles PP&E Other Assets Total Assets Liabilities & Equity ($M) Current Liabilities Bank Debt* Other Liabilities Total Liabilities Stockholders' Equity Total Li
Slide 25: Appendix Follows
AMERICAN OUTDOOR BRANDS Appendix Follows
Slide 26: Experienced Leadership
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 business operations, and apply transact
Slide 27: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In this presentation, certain non-GAAP financial measures, including “non-GAAP net income,” “non-GAAP income per share diluted,” and “Adjusted EBITDAS” are presented. A reconciliation of these and other non-GAAP financial measures are contained at the end of this press re
Slide 28: Q2 Non-GAAP Adjusted EBITDAS Reconciliation
Q2 non-gaap adjusted ebitdas reconciliation AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME/(LOSS) TO NON-GAAP ADJUSTED EBITDAS (In thousands) (Unaudited) For the Three Months Ended October 31, For the Six Months Ended October 31, 2022 2021 2022 2021 GAAP net income/
Slide 29: Q2 GAAP Income Statement
Q2 - gaap Income statement AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) For the Three Months Ended October 31, For the Six Months Ended October 31 2022 2021 2022 2021 Net sales Cost of sales Gross profit Operat
Slide 30: Q2 Non-GAAP Income Statement
Q2 non-GAAP income statement American Outdoor Brands (NASDAQ: AOUT) AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS – Non GAAP (in thousands, except per share data) For the three Months Ended October 31, 2022 2021 For the Six Months Ended October 31, 2022 2021 (U
Slide 31: American Outdoor Brands
AMERICAN OUTDOOR BRANDS
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