Petco Health And Wellness Company, Inc. · NASDAQ:WOOF
Petco Health And Wellness — Q4 2023 Earnings Presentation
16 slides from Petco Health And Wellness's earnings presentation, Mar 13, 2024
Slide 1: Fourth Quarter and FY2023 Earnings Call
PETCO FOURTH QUARTER AND FY2023 EARNINGS CALL March 13, 2024
Slide 2: Safe Harbor and Non-GAAP Measures
SAFE HARBOR AND NON-GAAP MEASURES This Presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amend
Slide 3: Key Takeaways
Fourth Quarter KEY TAKEAWAYS ► Net revenue of $1.7 billion, +6% y/y1 and comp sales (1%) y/y ► Continued Services and Other (+17% sales y/y1) and Consumables (+9% sales y/y1) growth supporting top line ► Early momentum in operational reset leading to positive customer adds ► Remain on track to deliv
Slide 4: Fourth Quarter Progress Against Core Strategy
FOURTH QUARTER PROGRESS AGAINST CORE STRATEGY SCALING SERVICES OMNICHANNEL • Added 365 veterinarians to Petco ecosystem, • Digital sales up 9% y/y1 up 9% y/y1 • BOPUS revenue up 34% y/y1 • Number of pets seen in vet increased 26% y/y1 Focused on driving long-term profitable growth MERCHANDISE DIFFER
Slide 5: Q4 Revenue Performance
Q4 REVENUE PERFORMANCE NET REVENUE BY CATEGORY ($ in millions) Key Revenue Highlights $1,674 $1,578 $1,556 $1,531 $1,494 254 • Top-line performance up 6% y/y1 216 239 252 236 • Comp sales (1%) driven by absence 587 of discretionary recovery and 596 554 545 525 lapping a more inflationary environment
Slide 6: Ongoing Focus on Balance Sheet
ONGOING FOCUS ON BALANCE SHEET Capital Expenditures Free Cash Flow2 Key Cash Flow & Balance (Down 25.6% year-over-year1) (Down $73 year-over-year1) Sheet Highlights ($ in millions) ($ in millions) • Q4 Free Cash Flow2 of $(2)M $66 $15 $49 $17 $71 versus $71M a year ago $20 $10 $19 $40 • FY 2023 Free
Slide 7: Petco's Purpose in Action
PETCO’S PURPOSE IN ACTION We are on a mission to improve lives for pets, pet parents and our Petco partners. Partners and Community Hosted students from the Barrio Logan College Institute and Preuss School UC San Diego for a career day at our National Support center, as part of our ongoing support f
Slide 8: Non-GAAP Measures and Other Definitions
NON-GAAP MEASURES AND OTHER DEFINITIONS
Slide 9: Non-GAAP Measures and Other Definitions
Non-GAAP Measures and Other Definitions The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this Presentation to the most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounti
Slide 10: Non-GAAP Measures: Adjusted EBITDA
Non-GAAP Measures: Adjusted EBITDA* 14 Weeks 13 Weeks 53 Weeks 52 Weeks (dollars in thousands) Ended Ended Ended Ended Reconciliation of Net (Loss) Income Attributable to Class A and B-1 February 3, January 28, February 3, January 28, Common Stockholders to Adjusted EBITDA 2024 2023 2024 2023 Net (l
Slide 11: Non-GAAP Measures: Adjusted Net Income and Adjusted EPS
Non-GAAP Measures: Adjusted Net Income and Adjusted EPS* (in thousands, except per share amounts) 14 Weeks Ended 13 Weeks Ended Reconciliation of Diluted EPS to Adjusted EPS February 3, 2024 January 28, 2023 Amount Per share Amount Per share Net (loss) income attributable to common stockholders / di
Slide 12: Non-GAAP Measures: Free Cash Flow
Non-GAAP Measures: Free Cash Flow (in thousands) 14 Weeks 13 Weeks 53 Weeks 52 Weeks Ended Ended Ended Ended February 3, January 28, February 3, January 28, 2024 2023 2024 2023 Net cash provided by operating activities $ 47,023 $ 136,540 $ 215,719 $ 346,003 Cash paid for fixed assets (49,066) (65,94
Slide 13: Non-GAAP Measures: Net Debt
Non-GAAP Measures: Net Debt February 3, January 28, (dollars in thousands) 2024 2023 Total debt: Senior secured credit facilities, net, including current portion $ 1,576,223 $ 1,645,331 Finance leases, including current portion 24,172 29,435 Total debt 1,600,395 1,674,766 Less: cash and cash equival
Slide 14: Net Sales by Category
Net Sales by Category 14 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended February 3, January 28, January 29, January 30, % Change % Change % Change 2024 2023 2022 2021 (1 yr) (2 yr) (3 yr) Consumables $ 833,440 $ 766,092 $ 683,552 $ 575,484 9% 21% 40% Supplies and companion animals 587,273
Slide 15: Non-GAAP Financial Measures' Footnotes
Non-GAAP Financial Measures’ Footnotes (1) Mexico Joint Venture EBITDA represents 50 percent of the entity’s operating results for all periods, as adjusted to reflect the results on a basis comparable to Adjusted EBITDA. In the financial statements, this joint venture is accounted for as an equity m
Slide 16: Thank You
THANK YOU ©2024 Petco Health and Wellness Company, Inc.
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