American Outdoor Brands, Inc. · NASDAQ:AOUT
American Outdoor Brands — Investor Presentation (June 2023)
49 slides from American Outdoor Brands's investor presentation, Jun 28, 2023
Slide 1: Investor Presentation June 2023
NASDAQ: AOUT INVESTOR PRESENTATION June 2023 Exhibit 99.1 AMERICAN OUTDOOR BRANDS
Slide 2: Forward-looking statements
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 contained or inco
Slide 3: American Outdoor Brands, Inc. at a glance
American outdoor brands, Inc. at a glance AOB, Ready for the Future. FY23 Net Sales $191.2 million Net Sales Target $400M FY23 Gross Profit Margin 46.1% Target Adj. EBITDAS Margin % Mid- to High-teens FY23 Adjusted EBITDAS $12.8 million, or 6.7% Headquarters Columbia, Missouri Cash Balance $22 milli
Slide 4: Our Brands & Products at a Glance
Our Brands & Products at a Glance 21 2 D&U We create innovative products, underneath 21 diverse brand names, for consumers who are passionate about the outdoors and shooting sports. 387 Our brands operate across two (2) major product categories: Outdoor Lifestyle: fishing, camping, land management,
Slide 5: Building authentic, lifestyle brands
“Building authentic, lifestyle brands that help consumers make the most out of the moments that matter.” AMERICAN OUTDOOR BRANDS
Slide 6: Ready for the Future
Ready for the Future. 1. Engine: Capable of growing net sales ~2x to $400M and EBITDAS 5x to $70M+ over the next 4-5 years. 2. Chassis: Infrastructure complete. No new investments needed. 3. Driver: The right people and culture to win. (…fueled by a strong cash position, with cash flow upside) Inter
Slide 7: Path to $400M in Net Sales: The Road Ahead
Path to $400M in Net Sales: The Road Ahead AOB, Ready for the Future. We believe AOB is capable of generating $400M in net sales over the next 4-5 years This potential is based upon elements within our control: our innovation pipeline, identified expansion opportunities, and infrastructure in-place.
Slide 8: Fiscal 2023 Highlights
Fiscal 2023 Highlights AMERICAN OUTDOOR BRANDS
Slide 9: Fiscal 2023 highlights
Fiscal 2023 highlights +14.2% +60.6% 46.1% Net sales declined 22.8% YOY but grew 14.2% vs. pre-pandemic FY20. Outdoor Lifestyle category grew 33.8% vs. FY20 and represents nearly 54% of net sales in FY23. Shooting Sports category declined 2.2% vs. FY20. $30.7M E-commerce net sales declined 10.5% YOY
Slide 10: Outdoor lifestyle category leading growth
Outdoor lifestyle category leading growth Net Sales vs Pre-Pandemic Shooting Sports Net Sales FY23 vs FY22: -30.7% FY23 vs FY20 (pre-pandemic): -2.2% Expansion in domestic and international markets Growth opportunity focused on expanding into large, stable categories including: Shotgun Sports (Caldw
Slide 11: Net sales & Gross Margin
net sales & Gross Margin 65% Growth 48% Growth 14% Growth Fiscal 2023 Highlights Leverageable financial model as business scales Long-term growth driven by leveraging brand lane platforms "Dock & Unlock”TM strategy allows for expansion into new product categories providing AOUT’s young brands with s
Slide 12: Balance sheet as of April 30, 2023
balance sheet As of APRIL 30, 2023 Fiscal 2023 Highlights Strong balance sheet supports organic growth & acquisitions FY23 : operating cash flow $30.7M, free cash flow* $25.9M Significant liquidity (up to ~$92M available capital) $75M asset-based revolving credit facility, expandable by $15M Net cas
Slide 13: Compelling investment considerations
Compelling investment considerations 1. Business capable of growing net sales ~2x to $400M and 5x EBITDAS of $70M+ over the next 4-5 years. Innovation engine, built. Leverageable Brand Lane teams in place. Customer & channel opportunities ripe for harvesting. 2. Infrastructure in place. No new inves
Slide 14: Product Development: Innovation engine, built
Product Development Innovation engine, built.
Slide 15: Innovation Engine, Built
Innovation Engine, Built. Pipeline built to deliver ~$200M in incremental sales Provides 3-5 years of new product upside Focused on large, sleepy markets, ripe for disruption Talent in place, capable of executing product pipeline 40+ product designers, engineers, and software developers Capable of d
Slide 16: Large, attractive market where AOB has permission to play
Large, attractive market, where AOB has “permission to play?” Fishing is a huge market (~50M U.S. participants) Freshwater is the largest segment with ~40M anglers, approximately 40% more participants than Golf How do we gain access to Freshwater? Electric Fillet Knife became available in 2019 A mea
Slide 17: Fish Weight Scales: Not easy to hold, not high quality, not smart
Fish Weight Scales: Not easy to hold Not high quality Not smart (little to no data capture, retention or analysis) “What else could these be used for?” “How do we get one on every fishing boat?” BUBBA Case Study: “Dock & Unlock” Drives Innovation ~30M anglers in the U.S. target bass species for spor
Slide 18: Tournament-Grade Pro Series Smart Fish Scale
BUBBA Case Study: “Dock & Unlock” Drives Innovation Opportunity: Large, underserved market Category lacks innovation AOB has “Permission to Play” Team in place to execute: Mechanical engineering Industrial design Electrical engineering Software engineering App development Tournament-Grade Pro Series
Slide 19: What does Smart look like
BUBBA Case Study: “Dock & Unlock” Drives Innovation Compete in Tournaments with Other Anglers Connect with Other Anglers and Share Catches and Trips Log Your Catches with Detailed Information Document and Save Your Entire Day of Fishing with Trips What does “Smart” look like… The BUBBA Pro Series Sm
Slide 20: Smart also means Sustainable
BUBBA Case Study: “Dock & Unlock” Drives Innovation With BUBBA, “Smart” also means “Sustainable”… Tournament with Traditional Fish Weight Scales vs. Catch Weigh Live Well Dock Weigh-in Release Extended “out-of-the-water” time and transport can often lead to higher levels of fish mortality Ca
Slide 21: Marketing: Leverageable Brand Lane teams in place
Marketing Leverageable Brand Lane teams in place.
Slide 22: Brand Lane Teams, In Place
Brand Lane Teams, In Place. Marketing: leverageable brand lane Teams Adventurer Brand Lane Harvester Brand Lane Marksman Brand Lane Defender Brand Lane Product Development (highlighted earlier) “Brand Lane” teams are in place, focused on key consumer activities: Drives brand authenticity Connects pr
Slide 23: Bubba Case Study: Leveraging the Brand Lanes
Bubba Case Study: Leveraging the Brand Lanes Adventurer Brand Lane Team Brand Management Creative Merchandising Brand Lane Teams, In Place.
Slide 24: Go-To-Market: Opportunities ripe for harvesting
Go-To-Market Customer & channel opportunities ripe for harvesting.
Slide 25: Multiple Expansion Opportunities
Opportunities, Ripe for Harvesting. Go-To-Market: Multiple Expansion Opportunities We believe AOB is capable of $400M in net sales, organically; we expect our business to shift as a result: Outdoor Lifestyle transitions towards ~65% of net sales (from 54% today) Doubling of international sales to 10
Slide 26: Domestic & International Expansion
Shotgun Sports Fishing Land Management Hunting & Outdoor Food Prep & Cooking Shooting Accessories Retail Support Programs Dedicated Sales Support, Tightened Distribution Network Shooting Sports Outdoor Lifestyle Go-To-Market: Domestic & International Expansion Expanded Sales Staff & Rep Force Dedica
Slide 27: Traditional & e-Commerce Expansion
Go-To-Market: Traditional & e-Commerce Expansion Emphasis on POS and Program Support Digital Merchandising, Educational Assets, Launch Support Expanded Sales Staff & Rep Force Dedicated Sales Staff in FY23 Farm & Home, DIY Retail Expansion DTC Websites and e-Commerce Support, Digital Merchandising S
Slide 28: BUBBA Case Study: Maximizing Strategic Adoption
BUBBA Case Study: Maximizing Strategic Adoption Tournament-Grade Pro Series Smart Fish Scale Traditional Channel e-Commerce Channel Online Retailers DTC BUBBA.com App Monetization Pro Subscription: $4.99 / Month or $49.99 / Year Sporting Goods Dealers OEM + Partnerships Strategic placement ensures p
Slide 29: Illustrative Recurring Revenue Opportunity
BUBBA Case Study: Illustrative Recurring Revenue Opportunity ~30M Bass Anglers in U.S. Assuming 1% of bass anglers purchase a BUBBA Pro Series Smart Fish Scale… ~300,000 Anglers …and 50% subscribe to BUBBA’s annual Pro Subscription @$49.99/yr ~150,000 Anglers $7.5M in illustrative “recurring” revenu
Slide 30: Infrastructure: Investments complete, ready to scale
Infrastructure Investments complete, ready to scale.
Slide 31: Infrastructure: complete & ready for expansion
Investments Complete, Ready to Scale. Infrastructure: complete & ready for Expansion New HQ and Distribution Center (2019) 632k SF provides capacity for organic growth and acquisitions New Consumer-Focused Brand Lanes (2020) Finished build-out of leverageable Brand Lane teams New Public Company Infr
Slide 32: Consolidations into New Facility, Complete
Infrastructure: Consolidations into New Facility, Complete Investments Complete, Ready to Scale.
Slide 33: People & Culture
People & Culture The right people & culture to win.
Slide 34: Our Culture: A Competitive Advantage
Our Culture: A Competitive Advantage How Others View AOB’s Culture “Innovation” (Top 10 Customer) “Visionary” (Industry Investment Banker) “Entrepreneurial” (Top 10 Customer) “Dedicated” (Top 10 Customer) “Entrepreneurial” (Large AOB Competitor) Values Drive Our Culture The Right People & Culture To
Slide 35: Strong Financial Model
Strong Financial Model Strong balance sheet, leverageable growth model, with favorable cash flow upside.
Slide 36: Business Model: Core Competencies Drive Simplicity
Strong Financial Model, In Place. Business Model: Core Competencies Drive Simplicity Innovation (Core Competency) Asset Light (Outsourced Manufacturing, Low Capex) Simple, Leverageable Model (One ERP, lean organization)
Slide 37: Financial Model: increased operating leverage with growth
New HQ and Distribution Center New Consumer-Focused Brand Lanes New Public Company Infrastructure New DTC Platform New ERP System New Analytics Platform Financial Model: increased operating leverage with Growth We expect EBITDAS contribution of 25% - 35% on incremental net sales as we grow organical
Slide 38: Financial metrics: working capital upside & negative net debt
Financial metrics: w/C upside & negative net debt Strong Financial Model, In Place. (1) Working Capital Turns calculation: TTM net sales/(Accts Receivable + Inventory – Accts Payable) (2) Represents historical working capital turns, excluding pandemic-related impacts Net Debt Leverage Q1 FY23 Q2 FY2
Slide 39: Capital Allocation: Demonstrated Deployment
Capital Allocation: Demonstrated Deployment Strong Financial Model, In Place. ORGANIC GROWTH Our highest priority is to invest in our business: Drives organic net sales to $400M Delivers sustainable profitability Yields strong returns and free cash flow 1 RETURN CAPITAL TO SHAREHOLDERS We will conti
Slide 40: M&A Illustration: Dock & Unlock Drives Incremental EBITDA
M&A Illustration: “Dock & Unlock” Drives incremental ebitda Target EBITDAS Contribution: 25%+ Net sales: Expanded products and customers Gross margin: Improved margins with AOUT supply chain Variable costs: Consolidated logistics into Columbia HQ Fixed Opex: Leveraged Adventurer brand lane In Proces
Slide 41: We're Ready for the Future
American Outdoor Brands (NASDAQ: AOUT) We’re Ready for the Future... Innovation engine, built. Leverageable Brand Lane teams in place. Customer & channel opportunities ripe for harvesting. Infrastructure investments complete, ready to scale. Strong balance sheet, leverageable growth model, favorable
Slide 42: Appendix
Appendix
Slide 43: American Outdoor Brands: Senior Team
BRIAN MURPHY President & CEO Joined: 2016 ANDY FULMER Chief Financial Officer Joined: 2010 JAMES TAYON VP of Marketing & Product Development Joined: 2012 BRENT VULGAMOTT VP of Sales, Operations, and Analytics Joined: 2015 Introductions American outdoor brands: Senior Team LIZ SHARP VP of Investor Re
Slide 44: Non-GAAP financial measures
American Outdoor Brands (NASDAQ: AOUT) 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, th
Slide 45: Q4 FY23 non-GAAP adjusted EBITDAS reconciliation
American Outdoor Brands (NASDAQ: AOUT) Q4 FY23 non-gaap 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 April 30, For the Years Ended April 30, GAAP net l
Slide 46: Q4 FY23 GAAP income statement
Q4 FY23 gaap Income statement American Outdoor Brands (NASDAQ: AOUT) AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except per share data For the Three Months Ended April 30, For the Years Ended April 30, 2023 2022 2023 2022
Slide 47: Q4 FY23 non-GAAP income statement
Q4 FY23 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) (Unaudited) For the Three Months Ended April 30, For the Years Ended April 30, 2023 2022 2023 2
Slide 48: Diverse portfolio of early-stage consumer brands
Diverse portfolio of 21 early-stage consumer brands American Outdoor Brands (NASDAQ: AOUT) 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 &
Slide 49: Brand product categories
Fillet knives, fishing rods, fishing tools, kitchen cutlery, apparel Grills, smokers, outdoor kitchens, portable power solutions, pellets, & accessories Folding, fixed-blade knives Folding & fixed-blade knives, multi-tools, adventure equipment Tents, sleeping bags, mattress pads, camping tools and a
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