Petco Health And Wellness Company, Inc. · NASDAQ:WOOF
Petco Health And Wellness — Q3 2023 Earnings Presentation
17 slides from Petco Health And Wellness's earnings presentation, Nov 29, 2023
Slide 1: Petco Third Quarter 2023 Earnings Call
PETCO THIRD QUARTER 2023 EARNINGS CALL November 29, 2023
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: Third Quarter Key Takeaways
Third Quarter KEY TAKEAWAYS ► Business conditions remain challenging, with ongoing pressure in discretionary spending and increased value seeking behavior ► Net revenue of $1.49 billion, down 0.5% y/y and comp sales flat y/y ► Continued Services and Other (+15% sales y/y) and Consumables (+2% sales
Slide 4: Strategic and Operational Focus
STRATEGIC AND OPERATIONAL FOCUS CORE STRATEGY SERVICES OMNICHANNEL INTEGRATION MERCHANDISE DIFFERENTIATION OFFERING VALUE BRANDS OPERATIONAL SUPPLY CHAIN TARGETED PRICING LABOR EFFICIENCY EFFICIENCIES OPTIMIZATION Comprehensive cost and efficiency program to unlock $150 million in run rate savings b
Slide 5: Progress Across Core Strategy
PROGRESS ACROSS CORE STRATEGY SCALING SERVICES OMNICHANNEL • Added 433 veterinarians to Petco • Digital sales up 5% year-over-year with BOPUS ecosystem, up 21% y/y growth • Number of pets seen in vet increased 17% • Customer growth of approximately 60,000 net y/y new adds with total active customers
Slide 6: Q3 Revenue Performance
Q3 REVENUE PERFORMANCE NET REVENUE BY CATEGORY ($ in millions) Key Revenue Highlights $1,501 $1,578 $1,556 $1,531 $1,494 • Top-line performance slightly down 216 205 239 252 236 year-over-year • Comp sales flat as a result of the 596 575 554 545 525 ongoing pressure on discretionary spending and the
Slide 7: Ongoing Focus on Balance Sheet While Investing for Growth
ONGOING FOCUS ON BALANCE SHEET WHILE INVESTING FOR GROWTH Capital Expenditures Free Cash Flow1 Key Cash Flow & Balance Sheet (Down 17.6% year-over-year) (Down $62M year-over-year) Highlights ($ in millions) ($ in millions) • Q3 Free Cash Flow1 of $(28M) $76 $17 versus $34M a year ago $13 $63 $22 $16
Slide 8: 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 Celebrated Latine Heritage Month, Disability Awareness Month and Halloween across our San Diego and San Antonio Support Centers. Sponsored the Challenged Athletes Found
Slide 9: Non-GAAP Measures and Other Definitions
NON-GAAP MEASURES AND OTHER DEFINITIONS
Slide 10: 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 11: Non-GAAP Measures: Adjusted EBITDA
Non-GAAP Measures: Adjusted EBITDA* (dollars in thousands) 13 Weeks Ended Reconciliation of Net (Loss) Income Attributable to Class A and B-1 October 28, October 29, Common Stockholders to Adjusted EBITDA 2023 2022 Net (loss) income attributable to Class A and B-1 common stockholders $(1,241,137) $
Slide 12: Non-GAAP Measures: Adjusted Net Income and Adjusted EPS
Non-GAAP Measures: Adjusted Net Income and Adjusted EPS* (in thousands, except per share amounts) 13 Weeks Ended Reconciliation of Diluted EPS to Adjusted EPS October 28, 2023 October 29, 2022 Amount Per share Amount Per share Net (loss) income attributable to common stockholders / diluted EPS $(1,2
Slide 13: Non-GAAP Measures: Free Cash Flow
Non-GAAP Measures: Free Cash Flow (in thousands) 13 Weeks Ended October 28, October 29, 2023 2022 Net cash provided by operating activities $ 34,431 $ 109,375 Cash paid for fixed assets (62,509) (75,884) Free Cash Flow $ (28,078) $ 33,491 13
Slide 14: Non-GAAP Measures: Net Debt
Non-GAAP Measures: Net Debt October 28, January 28, October 29, (dollars in thousands) 2023 2023 2022 Total debt: Senior secured credit facilities, net, including current portion $ 1,574,909 $ 1,645,331 $ 1,648,335 Finance leases, including current portion 25,470 29,435 29,986 Total debt 1,600,379 1
Slide 15: Net Sales by Category
Net Sales by Category 13 Weeks Ended October 28, October 29, October 30, October 31, % Change % Change % Change 2023 2022 2021 2020 (1 yr) (2 yr) (3 yr) Consumables $ 733,277 $ 720,512 $ 643,125 $ 529,989 2% 14% 35% Supplies and companion animals 524,526 575,259 635,278 601,520 (9%) (18%) (13%) Serv
Slide 16: 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 17: Thank You
THANK YOU ©2023 Petco Health and Wellness Company, Inc.
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