Arhaus, Inc. · NASDAQ:ARHS
Arhaus — Q3 2021 Earnings Presentation
13 slides from Arhaus's earnings presentation, Dec 9, 2021
Slide 1: Q3 2021 Summary Financial Information
December 9, 2021 Q3 2021 Summary Financial Information NASDAQ: ARHS
Slide 2: Note on Forward-Looking Statements
ARHAUS NOTE ON FORWARD-LOOKING STATEMENTS: Certain statements contained herein, including statements under the heading “Outlook” are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements can generally be identif
Slide 3: Our Mission
John Reed with some of our Italian vendor ARHAUS artisans, whom we have partnered with for over 20 years Our Mission We were founded in 1986 on a simple idea: furniture should be responsibly sourced, lovingly made and built to last. Today, we partner directly with artisans around the world who share
Slide 4: Premium Lifestyle Brand with a Differentiated Concept
ARHAUS Premium Lifestyle Brand with a Differentiated Concept Exclusively-Designed, Retail is Theater Omni-Channel Experience Client-First Ser vice Premium Products We fo c u s o n livable luxury w i t h O u r inspirational s howrooms a re O u r digital a nd c atalog e x p e r i e n c e i s We a r e
Slide 5: Increasing Capacity to Meet Strong Demand
ARHAUS Increasing Capacity to Meet Strong Demand Vendor Capacity Supply Chain Capacity − We have long-standing direct − Expansion of the Ohio facility sourcing partnerships adds 230,000 sq. ft. for both distribution and office space − We are often among the most − Opening of the North Carolina impor
Slide 6: Arhaus TAM in a Rapidly Growing and Highly Fragmented Premium Home Furnishings Market
ARHAUS Arhaus TAM in a Rapidly Growing and Highly Fragmented Premium Home Furnishings Market(1) Arhaus has less than 1% market share in a ~$60 billion market growing at a ~10% CAGR through 2024 Opening 5 to 7 showrooms per year for the foreseeable future U.S. Premium Furniture Market Forecasted G ro
Slide 7: Brand Awareness Opportunity
ARHAUS Brand Awareness Opportunity Showrooms Digital Direct Mail Social Media Branding initiatives Product 7
Slide 8: Q3'21 Financial Highlights
ARHAUS Q3’21 Financial Highlights Considerable Quarterly Momentum Achieved 61.3% Comparable Growth ($Millions) Showrooms Net Revenue ($MM) $203 77 73 Increased net revenue 68.7% to $203 million $121 from $121 million Q3'20 Q3'21 Q3'20 Q3'21 Comparable Revenue -3.7% 61.3% 68.7% Increased net and comp
Slide 9: Outlook - Full Year 2021 and Implied Q4'21
ARHAUS Outlook - Full Year 2021 and Implied Q4’21 $ in millions FY2021 Implied Q4’21 Key Items Expected to Impact Full Year Net Revenue $764 to $774 $205 to $215 Outlook Comparable Growth(1) 44% to 47% 20% to 25% Net and Comprehensive Income (Loss)(2) $1 to $6 $(30) to $(25) ‒ ~$45 million expense r
Slide 10: Appendix
ARHAUS APPENDIX
Slide 11: Non-GAAP Financial Measures
ARHAUS Non-GAAP Financial Measures Non-GAAP Financial Measures In addition to the results provided in accordance with GAAP, this presentation includes certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required
Slide 12: Reconciliation from Net Income to Adjusted EBITDA, Q3'21
ARHAUS Reconciliation from Net Income to Adjusted EBITDA, Q3’21 For the Three Months Ended September 30, September 30, ($ in thousands) 2021 2020 Net income $ 14,383 $ 783 (+) Interest expense 1,339 2,734 (+) State and local taxes 500 731 (+) Depreciation and amortization 8,297 4,244 EBITDA $ 24,519
Slide 13: Reconciliation from Net Income to Adjusted EBITDA, Outlook
ARHAUS Reconciliation from Net Income to Adjusted EBITDA, Outlook Based on Guidance Range For the Twelve Months Ended For the Three Months Ended December 31, 2021 December 31, 2021 ($ in thousands) Low High Low High Net income (loss) $ 1,000 $ 6,000 $ (30,000) $ (25,000) (+) Interest expense 5,000 5