Tractor Supply Company · NASDAQ:TSCO
Tractor Supply — Q4 2020 Earnings Presentation
15 slides from Tractor Supply's earnings presentation, Jan 28, 2021
Slide 1: Supplemental Financial Presentation Q4 and FY 2020
Supplemental Financial Presentation Q4 and FY 2020 January 28, 2021
Slide 2: Safe Harbor and Non-GAAP Measures
SAFE HARBOR AND NON-GAAP MEASURES The Company claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information in this presentation contains certain forward-looking statements. These statements discuss, among o
Slide 3: Thank You Team Tractor!
Thank You Team Tractor! = RE 3 FOR LIFE OUT HE
Slide 4: Q4 2020 Performance Highlights
Q4 2020 Performance Strong Sales Growth Net Sales Growth ($ in billions) HIGHLIGHTS +31.3% $2.88 $2.19 Record Level Sales Performance Customer Traffic Increased 14.3% Q4 2019 Q4 2020 Average Ticket Up 13.0% Comp Sales Growth 27.3% Triple-Digit eCommerce Growth for the 3rd Consecutive Quarter 0.1% Q4
Slide 5: FY 2020 Performance Highlights
FY 2020 Performance Strong Sales Growth Net Sales Growth ($ in billions) $10.62 HIGHLIGHTS $8.35 +27.2% Sales Surpass $10B – A New Record Customer Traffic Increased 10.9% FY 2019 FY 2020 Average Ticket Up 12.2% Comp Sales Growth Triple-Digit eCommerce Growth From 23.1% FY 2019 2.7% FY 2019 FY 2020 5
Slide 6: Broad-Based Strength in Customer Trends
Broad-Based Strength in Customer Trends New Customers and Reengaged Customers Existing Customers FY2020: +17.0M 19.0M Neighbor’s Club Members 6
Slide 7: Q4 2020 Performance
Q4 2020 Performance Gross Margin Adjusted SG&A Expenses As a % of Sales +75 bps Expansion 25.2% 25.6% 34.6% 33.8% Q4 2019 Q4 2020 Q4 2019 Q4 2020* Key Drivers Key Drivers • Lower Depth and Frequency of Sales Promotions • Incremental COVID-19 Costs • Increased Incentive Compensation Cost Due to Recor
Slide 8: FY 2020 Performance
FY 2020 Performance Gross Margin Adjusted SG&A Expenses As a % of Sales +104 bps Expansion 25.5% 25.3% 35.4% 34.4% FY 2019 FY 2020 FY 2019 FY 2020* Key Drivers Key Drivers • Lower Depth and Frequency of Sales Promotions • COVID-19 Costs • Increased Incentive Compensation Cost Due to Record • Less Cl
Slide 9: Adjusted Q4 2020 Performance
Adjusted Q4 2020 Performance Profitability Operating Margin Net Income EPS +29 bps +34.0% +35.5% $1.64 $193M 8.7% 9.0% $1.21 $144M Q4 2019 Q4 2020* Q4 2019 Q4 2020* Q4 2019 Q4 2020* *Adjusted to exclude non-cash impairment charge – see non-GAAP reconciliation 9
Slide 10: Adjusted FY 2020 Performance
Adjusted FY 2020 Performance Profitability Operating Margin Net Income EPS +119 bps* +43.4%* +47.4%* $6.87 $806M 10.1% 8.9% $4.66 $562M FY 2019 FY2020* FY 2019 FY 2020* FY 2019 FY 2020* *Adjusted to exclude non-cash impairment charge – see non-GAAP reconciliation 10
Slide 11: FY 2021 Outlook
FY 2021 Outlook Net Sales $10.7B to $11.0B Comparable Store Sales (2%) to +1% Operating Margin Rate 9.3% to 9.6% Net Income $750M to $800M Earnings Per Share $6.50 to $6.90 Capital Expenditures $450M - $550M Est. Effective Tax Rate 22.5% to 22.8% Share repurchases expected to reduce avg shares outst
Slide 12: Committed to being an integral part of customers' lives
Deliver Legendary Customer Experiences Advance Our ONETractor Capabilities We are committed to being an integral part of our customers’ lives as the dependable supplier of Operate the Tractor Way Out Here Lifestyle solutions. . Anytime • Anywhere • Anyway Go the Country Mile for Our Team Generate H
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations 13
Slide 14: Reconciliation of Non-GAAP Financial Measures (Q4)
Reconciliation of Non-GAAP Financial Measures (Unaudited) (in thousands, except per share amounts) FOURTH QUARTER ENDED December 26, December 26, Impairment (a) 2020 2020 (As Reported) (Adjustment) (As Adjusted) % of % of % of Net Net Net Sales Sales Sales SG&A (including depreciation and amortizati
Slide 15: Reconciliation of Non-GAAP Financial Measures (FY)
Reconciliation of Non-GAAP Financial Measures (Unaudited) (in thousands, except per share amounts) YEAR ENDED December 26, December 26, Impairment (a) 2020 2020 (As Reported) (Adjustment) (As Adjusted) % of % of % of Net Net Net Sales Sales Sales SG&A (including depreciation and amortization and ass
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