Sportsman's Warehouse Holdings, Inc. · NASDAQ:SPWH
Sportsman's Warehouse — Investor Presentation (January 2015)
28 slides from Sportsman's Warehouse's investor presentation, Jan 12, 2015
Slide 1: Sportsman's Warehouse
APORTSMAN
Slide 2: Forward Looking Statements & Non-GAAP Measures
Forward Looking Statements & Non-GAAP GEARY Measures Dea. oxi In this presentation, we will make statements about our future plans and prospects, including statements about our financial position, financial targets, business strategy and store opening pipeline, that constitute forward- looking state
Slide 3: Our mission
ca a Our mission is to provide outdoor enthusiasts, casual users, and first-time participants with quality brand-name hunting, fishing, camping and shooting merchandise within a convenient shopping environment, serviced by passionate, knowledgeable associates, to create a memorable outdoor experienc
Slide 4: High-growth outdoor sporting goods retailer
High-growth outdoor sporting goods retailer ‘One-stop shopping experience with the right gear at the right time Tailored merchandise and in-store events to meet local conditions and demand Passionate associates, highly knowledgeable about local market conditions Largest outdoor specialty store base
Slide 5: Large, Growing and Highly-Fragmented Outdoor Sporting Goods Industry
Large, Growing and Highly-Fragmented § oie Outdoor Sporting Goods Industry arr. = Industry size estimated to be in excess of $50 billion = Sportsman's Warehouse is one of a select number of pure play outdoor specialty retailers = Mom & Pop retailers estimated to represent 65% of industry = Participa
Slide 6: NSSF Adjusted NICS
NSSF Adjusted NICS GENS) Nee ed Fike snc fs ‘ 100000 $40,900 1200.0 Komen ox}900 rte Be GSESSSS esse SSeS EER EREEe EEA aA es ee postesnstanankn pg opment ais: 5 eas sehen nn ee ed eee
Slide 7: Unique Customer Value Proposition
Unique Customer Value Proposition ESCM § 49055Stores 17 of 64 stores. Depth of Merchandise ‘One-stop One-stop Selection ~70,000 SKUs ~160,000 SKUs Convenience / Destination / Customer Draw Destination Entertainment Box Size 30k - 65k 40k - 246K (sq. ft) Cost to Open New Units ick dial Branded Produc
Slide 8: 300+ Store Opportunity with Attractive Store Economics
m 300+ Store Opportunity with Attractive Store § ¥ Economics eal Relative White Space”) Low Initial Investment per Store bax Average New Store Payback Period (years) Including initial inventory investment 40) Excluding initial i Inventory investment (einen Including initial 1 Excluding initial inven
Slide 9: Investment Highlights
Investment Highlights al C) Differentiated Outdoor Specialty Retail Experience @) Comprehensive, Locally Relevant Product Assortment and Merchandising Strategy () Disciplined and Adaptable Real Estate Strategy () Low Cost, High Return Operating Structure with Attractive and Replicable Store Economic
Slide 10: Differentiated Shopping Experience
Differentiated Shop Differentiated Shopping Experience and Engaging and GENS) Highly Knowledgeable Sales Associates = Conveniently Located Stores with Easy-In, Easy-Out paioie Access Archery Seasonal Fishing = Locally Relevant Features Hunting Oebreed Fishing/Marine = Store Layout is Easy to Navigat
Slide 11: Comprehensive Product Assortment: Locally Relevant Merchandising Strategy
‘Compr Locally Relevant Merchandising Strategy ns roduct Assortment Deep selection of branded merchandise from well-known manufacturers Consumables generate ~35% of unit sales and 20% of dollar sales Approximately 30% of our products are shielded from internet competition via regulatory restrictions
Slide 12: Comprehensive Product Assortment
2 Comprehensive Product Assortment Depth and Breadth of Branded Products GENS) _ Across Our Six Major Departments arr. Aimanturost ee Columbia FY 2013 Product Breakdown (’ of sales) WINCHESTER Other Foot = cep eeae ria otve BrowninG Clothing 8.8% Smith Wesson Fishing a RIVERS WIED 8.8% ‘i re ane Hun
Slide 13: Disciplined, Analytics-Driven Real Estate Strategy
Disciplined, Analytics-Driven Real Estate Strategy Maximizes Coverage and Returns Rigorous Site Selection Process = Analyze market characteristics and economic viability with local real estate firms and intemal committee — Density of hunting / fishing license holders — Abundance of outdoor recreatio
Slide 14: Low Cost, High Return Operating Model
Low Cost, High Return Operating Mo Opportunities in Existing and New Markets; “First-Mover’, PORTSMAN y in Smaller MSAs, and Fill-In Competitive Markets Potential to increase store base to more than 300 stores nationally: Our low-cost model allows us to operate multiple stores to surround a competit
Slide 15: Passionate and Experienced Management Team with Proven Track Record
$ Passionate and Experienced Management _ Team with Proven Track Record as Directed successtu consumer and E-Commerce etal companies including Eastbay, Cornerstone ohn Schaefer Chief Executive Offcar 5 ‘Brands and Team Express 1m Recaived @ BBA in Business Adminisvation from the Universy of Wisconsi
Slide 16: Growth Strategy
Growth Strategy () Capitalize on New Store Growth Opportunity Within Existing and New Markets () Increase Same Store Sales Growth through In-Store Initiatives () Grow the Sportsman’s Warehouse Brand ( 4 )ecntinue to Enhance Operating Margins 15 eas seen ne ae ed eee
Slide 17: Significant White Space Potential
é Significant White Space Potential Significant White Space Opportunity Relative White Space”) Number of Sportsman's Warehouse stores 5 a7 FY 2010 FY 2011 FY 2012 FY 2013 FY 2018 FY 2015 Tongetem ITA EEE soxa BY Ate tee em erry BW tar, New Store Pipeline m Eight committed openings in FY 2015 on top
Slide 18: In-Store Initiatives Driving Same Store Sales Growth
2 Se) In-Store Initiatives Driving Same Store Sales GENS) _ Growth Dea. xk = Increased selling square footage implemented fixturing program in all stores ~ Facilitates roll-out of store-within- a-store clothing programs = Launch of loyalty card program (Nov. 2013) = Computerized kiosks to expand in-
Slide 19: Grow the Sportsman's Warehouse Brand
Sportsman's Warehouse Brand ¢ Grow the Sportsman’s Warehouse Brand GENS) al ocalized” Advertising Grass Roots Campaigns Effective no v = ~13 million total visitors to website during FY 2013 m= Numerous product videos and how-to videos available for public viewing = Hold ~2,500 events annually 18 eas
Slide 20: Continue to Enhance our Operating Margins
Continue to Enhance our Operating Maraifve = = Improve gross margins through: — Expanding higher margin clothing and footwear departments — Expanding private label offerings from 2.4% in Q314 — Improving buying opportunities with vendors — Coordinating pricing strategies across stores and buying gro
Slide 21: Financial Highlights
Financial Highlights Gas totes wed teen ned eee
Slide 22: Historical Financial Overview
Historical Financial Overview Net Sales and Store Count ‘Same Store Sales (Srimions) (Ghincrease over poryeen 1 254% H ' 210% ; BNASoes BSR saagy 1 ‘ eure | $3708 Bae | : gona os 1 2 ; 1 2 ‘ = ea fl 25% F¥ 2010 FY 2011 FY 2012 FY 2013 FY 2014 (YTD FY 2010 FY2011 Fy 2012 FY2013— FY2014 (YTD)? Gross P
Slide 23: Capitalization, Capital Expenditures and Free Cash Flow
Capitalization, Capital Expenditures and Free GENS) _ Cash Flow fe Q3 2014 (Pro Forma) (siento) 1112014 eaDAe Cash and Cash Equivalents $1.7 ABL Working Capital Facility 62.9 1.0K Term loan ($160m) 156.3 2.4K Total Debt $219.2 34x Capital Expenditures Free Cash Flow’ {$ inmitions) ¥; ($in millions)
Slide 24: Long-Term Financial Targets
Long-Term Financial Targets Unit Growth >10% Comparable Store Sales Growth 2-3% Total Revenue Growth >10% EBITDA Growth 15% Net Income Growth 25% () Zane ses mam 10% mural Aes erToAMazn st ammun SOI cng ery cos 0% ea a ena os afi es a 5
Slide 25: Appendix: GAAP Reconciliations
Appendix: GAAP Reconciliations
Slide 26: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted _ EBITDA and Free Cash Flow Fiscal Year Ended January 29, January28, February2, __— February, MRL: 2011 2012 2013 2014 Net Income $5,244 $33,694 $28,074 $21,750 Plus: (#) Interest expense 5,676 4,392 6321 25,447 (#) Income tax expense (benefit) - (11,467) 19,
Slide 27: GAAP and Non-GAAP Measures (Unaudited)
GAAP and Non-GAAP Measures (Unaudited) NE) ad For the Thirteen Weeks Ended For the Thirty-Nine Weeks Ended November 1, 2014 November 2,2013 November 41,2014 November 2, 2013 Income from operations 918,625, $16,983, $30,747 $43,649 IPO bonus «i - - 20 - [Adjusted income from operations 3 Netincome $8
Slide 28: GAAP and Non-GAAP Measures (Unaudited)
GAAP and Non-GAAP Measures (Unaudited) Key Notes and Assumptions (1) Asa result of the completion of our initial public offering and pursuant to the terms of the employment agreements with our executive officers, we paid $2.2 million in bonuses to our executive officers. (2) Refinance related costs
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