American Outdoor Brands, Inc. · NASDAQ:AOUT
American Outdoor Brands — Investor Presentation (March 2022)
29 slides from American Outdoor Brands's investor presentation, Mar 10, 2022
Slide 1: Investor Presentation March 2022
INVESTOR PRESENTATION March 2022 NASDAQ: AOUT 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: Q3 FY22 Highlights
Q3 FY22 Highlights AMERICAN OUTDOOR BRANDS
Slide 4: Disciplined execution of value creation strategy
Disciplined execution of value creation strategy 1 2 3 American Outdoor Brands (NASDAQ: AOUT) Q3 FY22 Achievements ORGANIC GROWTH M&A RETURN CAPITAL TO SHAREHOLDERS CAGR 8-10% 4-5 YEARS SEEK TARGETS THAT MEET OUR IDEAL CRITERIA SHARE REPURCHASE PROGRAM - 2-Yr Growth of 62% (Q3) Driven by ‘Dock & Unl
Slide 5: Sustained growth compared to pre-pandemic levels
Sustained growth compared to pre-pandemic levels TTM Net Sales 3Q22 Net Sales TTM Net Sales = $266.1 Million Q3 Shooting Sports: +45% 2-yr growth Growth opportunity in shooting sports over the next 4-5 years focused on expanding into large, stable categories including: Shotgun sports (Caldwell) Relo
Slide 6: Grilla is a Powerful Strategic Addition to AOUT
Grilla is a Powerful Strategic Addition to AOUT Provider of high-quality grills, smokers, and accessories to a growing, $7B* U.S. barbeque grill industry: 50% Net Sales CAGR from 2017-2021 ($15M net sales in 2021) Accretive to AOUT net sales and non-GAAP net income 100% Direct-to-Consumer model expa
Slide 7: Grilla Meets our Ideal Acquisition Criteria
Grilla Meets our Ideal acquisition criteria 5) Further Diversifies AOUT’s Supply Chain 3) Large, Addressable Markets 4) Low Complexity 2) ‘Niche to Known’ Opportunity (Runway for Growth) 1) ‘Dock & Unlock’ Friendly via Brand Lane Structure IDEAL ACQUISITION CRITERIA Docks into our Adventurer brand l
Slide 8: Building authentic, lifestyle brands
“Building authentic, lifestyle brands that help consumers make the most out of the moments that matter.” AMERICAN OUTDOOR BRANDS
Slide 9: American Outdoor Brands investment highlights
American outdoor brands Large, passion-driven industry Favorable macro trends (fishing, hunting, personal protection, shooting sports, camping, and hiking) Diverse portfolio of 20 early-stage consumer brands Innovative “Dock & Unlock”™ formula fuels brand growth Leverageable model drives profitabili
Slide 10: American Outdoor Brands, Inc. at a glance
American outdoor brands, Inc. at a glance American Outdoor Brands (NASDAQ: AOUT) Locations: HQ & Distribution: Columbia, MO Additional Offices: MA (Admin), OR (Mfg), China (WFOE) Spinoff: August 2020 NASDAQ Select: AOUT *Proforma for Grilla acquisition (a) Based on a 2017 report issued by the Outdoo
Slide 11: Large, passion-driven industry
American Outdoor Brands (NASDAQ: AOUT) Large, passion-driven industry (a) Based on a 2017 report issued by the Outdoor Industry Association. ~$90-100B U.S. Outdoor Recreation Market [a] Shooting Shooting Fishing Camping Hiking Paddling Archery
Slide 12: Favorable Macro Trends
Favorable Macro trends American Outdoor Brands (NASDAQ: AOUT) Outdoor Participation Trending Source: 2019 Outdoor Participation Report, National Shooting Sports Foundation, National Golf Foundation, Tennis Industry Association, Outdoor Industry Association, KOA >50% of the U.S. Participates in Outdo
Slide 13: Diverse portfolio of early-stage consumer brands
Diverse portfolio of 20 early-stage consumer brands Caldwell Range Gear Wheeler Digital F.A.T. Wrench Frankford M-Press (Reloading) BOG Blood Moon Game Camera MEAT! 1.5 HP Meat Grinder Hooyman No Slip H-Grip Land Management Tools Old Timer Sharpfinger BUBBA Lithium Ion Cordless Fillet Knife ust Hous
Slide 14: Two Categories: Shooting Sports & Outdoor Lifestyle
Two Categories: shooting sports & outdoor lifestyle American Outdoor Brands (NASDAQ: AOUT) Marksman Shooting Sports Outdoor Lifestyle Hunting, fishing, camping, rugged outdoor activities Shooting accessories, personal protection Defender Harvester Adventurer Illustrative Products Note: American Outd
Slide 15: Strong presence in traditional and e-commerce channels
strong presence in traditional and e-comM channels American Outdoor Brands (NASDAQ: AOUT) DTC Websites Online Retailers National Retailers Home, Farm, Automotive Distributors & Buying Groups OEM Traditional Channels $165.1M 62% E-commerce Channels $101.0M 38% Note: Customers shown are for illustrati
Slide 16: The Dock and Unlock Formula
Brand A x AOB Dock (Strategy + Resources) = Brand A + ∞ Unlocked Potential THE “DOCK AND UNLOCK”TM FORMULA Adventurer Harvester Marksman Defender American Outdoor Brands (NASDAQ: AOUT) Using our "Dock and Unlock”TM formula, we leverage our brand lanes to reframe our brands’ growth potential Thereb
Slide 17: 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. FY19 FY20 FY21 FY22 MEAT! Concept Developed internally Brand
Slide 18: Dock & Unlock Case Study: BUBBA
“DOCK & UNLOCK”TM CASE STUDY American Outdoor Brands (NASDAQ: AOUT) From water to plate, BUBBA provides anglers with kick-ass tools to enjoy the ultimate lifestyle of adventure Expanded potential by dropping "Blade" from the name and positioned it to capture the "water to plate" lifestyle Entered ne
Slide 19: Brand permission to play drives growth potential
Brand “permission to play” drives growth potential American Outdoor Brands (NASDAQ: AOUT) graphic
Slide 20: Leverageable model drives profitability
American Outdoor Brands (NASDAQ: AOUT) Leverageable model drives profitability net sales & Gross Margin Adj. EBITDAS & adj. ebitdas Margin FY22 estimate mid-point would deliver +48% vs. FY2020 Significant sales growth within e-commerce channel – long-term growth expected to continue through leveragi
Slide 21: Financial Outlook and Drivers
American Outdoor Brands (NASDAQ: AOUT) Financial Outlook and Drivers Long-Term Drivers Note: FY2022 financial guidance per AOUT Management's estimates is based on information available to Management at the time presented and is subject to change in the future especially in light of the difficulty in
Slide 22: Balance Sheet
balance sheet As of January 31, 2022 American Outdoor Brands (NASDAQ: AOUT) Strong balance sheet supports organic growth & acquisitions Significant liquidity (~$90M available capital) Low-cost L+200, $50M asset-based revolving credit facility with $15M accordion - $25M expansion approved March 2022
Slide 23: Appendix Follows
Appendix Follows AMERICAN OUTDOOR BRANDS
Slide 24: Experienced Leadership
Experienced Leadership BRIAN D. MURPHY President & Chief Executive Officer 15+ years experience 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 operation
Slide 25: Non-GAAP financial measures
American Outdoor Brands (NASDAQ: AOUT) In this presentation, certain non-GAAP financial measures, including “non-GAAP net income,” “non-GAAP income per share diluted,” “Adjusted EBITDAS,” and “free cash flow” are presented. A reconciliation of these and other non-GAAP financial measures are containe
Slide 26: Q3 Non-GAAP Adjusted EBITDAS Reconciliation
American Outdoor Brands (NASDAQ: AOUT) Q3 non-gaap adjusted ebitdas reconciliation RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS (In thousands) (Unaudited) For the Three Months Ended January 31, For the Nine Months Ended January 31, 2022 2021 2022 2021 GAAP net income $ 3,766 $ 8,02
Slide 27: Q3 GAAP Income Statement
Q3 – gaap Income statement American Outdoor Brands (NASDAQ: AOUT) For the Three Months Ended January 31, For the Nine Months Ended January 31, 2022 2022 2021 2021 (US$ in thousands, except per share data) (Unaudited) Net sales $ 70,105 $ 82,649 $ 201,633 $ 212,214 Cost of sales 38,010 45,276 107,518
Slide 28: Q3 Non-GAAP Income Statement
Q3 – non-GAAP income statement American Outdoor Brands (NASDAQ: AOUT) For the Three Months Ended January 31, For the Nine Months Ended January 31, 2022 2022 2021 2021 (US$ in thousands, except per share data) (Unaudited) Net sales $ 70,105 $ 82,649 $ 201,633 $ 212,214 Cost of sales 38,010 45,276 107
Slide 29: American Outdoor Brands
American outdoor brands
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