American Outdoor Brands, Inc. · NASDAQ:AOUT
American Outdoor Brands — Investor Presentation (April 2023)
50 slides from American Outdoor Brands's investor presentation, Apr 18, 2023
Slide 1: Ready for the Future! April 2023
Ready for the Future! April 2023
Slide 2: Legal Safe Harbor
legal safe harbor 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
Slide 3: American Outdoor Brands: Senior Team
american outdoor brands: senior team brian murphy president & ceo joined: 2016 andy fulmer chief financial officer joined: 2010 james tayon vp of marketing & product development joined: 2012 brent vulgamott vp of sales, operations, and analytics joined: 2015 liz sharp vp of investor relations joined
Slide 4: American Outdoor Brands, Inc. at a Glance
AMERICAN OUTDOOR BRANDS, INC. AT A GLANCE HQ & Distribution: Columbia, MO Additional Offices: MA (Admin), Asia (WFOE) Spinoff from Former Parent Company: August 2020 NASDAQ Global Select: AOUT AOB, READY FOR THE FUTURE TTM Net Sales TTM Gross Profit Margin TTM Adjusted EBITDAS Net Debt Net Debt / Ad
Slide 5: Our Brands & Products at a Glance
our brands & products at a glance we create innovative products, underneath 21 diverse brand names, (1) for consumers who are passionate about the outdoors and shooting sports.our brands operate across two (2) major product categories: outdoor lifestyle: fishing, camping, land management, meat proce
Slide 6: Building authentic, lifestyle brands
“Building authentic, lifestyle brands that help consumers make the most out of the moments that matter.”
Slide 7: Investment Considerations: Ready for the Future
investment considerations: ready for the future.1. engine: capable of growing net sales ~2x to $400m and ebitdas 5x to $70m+ over the next 4-5 years. 2. chassis: infrastructure complete. no new investments needed. 3. driver: the right people and culture to win. (…fueled by a strong cash position, wi
Slide 8: Few Companies Offer Such Potential & Simplicity
few companies offer such potential & simplicity 1. business capable of growing net sales ~2x to $400m and 5x ebitdas of $70m+ over the next 4-5 years. innovation engine, built. leverageable brand lane teams in place. customer & channel opportunities ripe for harvesting. 2. infrastructure in place. n
Slide 9: Path to $400M in Net Sales: The Road Ahead
path to $400m in net sales: the road ahead we believe aob is capable of generating $400m in net sales over the next 4-5 years this potential is based upon elements within our control: our innovation pipeline, identified expansion opportunities, and infrastructure in-place. while we’re optimistic our
Slide 10: Product Development: Innovation engine, built
Product Development Innovation engine, built.
Slide 11: Product Development: Innovation Engine, Built
product development: innovation engine, built pipeline built to deliver ~$200m in incremental sales provides 3-5 years of new product upside focused on large, sleepy markets, ripe for disruption talent in place, capable of executing product pipeline 40+ product designers, engineers, and software dev
Slide 12: Bubba Case Study: Dock & Unlock Drives Innovation
bubba case study: “dock & unlock” drives innovation 1. large, attractive market, where aob has “permission to play?” fishing is a huge market (~50m u.s. participants) freshwater is the largest segment with ~40m anglers, approximately 40% more participants than golf 2. how do we gain access to freshw
Slide 13: Bubba Case Study: Dock & Unlock Drives Innovation
bubba case study: “dock & unlock” drives innovation ~30m anglers in the u.s. target bass species for sport, and commonly use fish weight scales to measure success fish weight scales: 1. not easy to hold 2. not high quality 3. not smart (little to no data capture, retention or analysis) innovation en
Slide 14: Bubba Case Study: Pro Series Smart Fish Scale
bubba case study: “dock & unlock” drives innovation tournament-grade pro series smart fish scale opportunity: large, underserved market category lacks innovation aob has “permission to play” team in place to execute: -mechanical engineering -industrial design -electrical engineering -software engine
Slide 15: Bubba Case Study: What Does Smart Look Like
bubba case study: “dock & unlock” drives innovation what does “smart” look like compete in tournaments with other anglers connect with other anglers and share catches and trips log your catches with detailed information document and save your entire day of fishing with trips the bubba pro series sma
Slide 16: Bubba Case Study: Smart Also Means Sustainable
bubba case study: “dock & unlock” drives innovation with bubba, “smart” also means “sustainable” vs. - catch weigh live well dock weigh-in release - extended “out-of-the-water” time and transport can often lead to higher levels of fish mortality - catch weigh live well dock release -reduces “out-of-
Slide 17: Marketing: Leverageable Brand Lane teams in place
Marketing Leverageable Brand Lane teams in place logo graphic
Slide 18: Marketing: Leverageable Brand Lane Teams
marketing: leverageable brand lane teams “brand lane” teams are in place, focused on key consumer activities: - drives brand authenticity - connects products + consumers’ lifestyles - breeds consistent messaging & speed-to-market adventurer brand lane (1) product development brand management creativ
Slide 19: Bubba Case Study: Leveraging the Brand Lanes
bubba case study: leveraging the brand lanes adventurer brand lane team brand management logo graphic creative merchandising © 2023 american outdoor brands, inc. all rights reserved 19 brand lane teams, in place.
Slide 20: Go-To-Market: Customer & channel opportunities ripe for harvesting
Go-To-Market Customer & channel opportunities ripe for harvesting logo graphic
Slide 21: Go-To-Market: Multiple Expansion Opportunities
go-to-market: multiple expansion opportunities we believe aob is capable of $400m in net sales, organically; we expect our business to shift as a result:- outdoor lifestyle transitions towards ~65% of net sales (from 53% today) - doubling of international sales to 10% of net sales (from 5% today) -
Slide 22: Go-To-Market: Domestic & International Expansion
go-to-market: domestic & international expansion we believe future outdoor lifestyle growth will be supported by investments made at home and abroad shooting sports ttm 3q23 = $91m shooting accessories shotgun sports fishing 95% ($185m) 5% ($10m) outdoor lifestyle ttm 3q23 = $104m retail support pro
Slide 23: Go-To-Market: Traditional & E-Commerce Expansion
go-to-market: traditional & e-commerce expansion we believe aob’s future growth will be propelled by a strategic combination of retail and e-comm shooting sports ttm 3q23 = $91m shooting accessories shotgun sports outdoor lifestyle ttm 3q23 = $104m fishing land management hunting & outdoor food prep
Slide 24: Bubba Case Study: Maximizing Strategic Adoption
bubba case study: maximizing strategic adoption traditional channel e- commerce channel tournament-grade pro series smart fish scale bubba.com app monetization opportunities, ripe for harvesting dtc sporting goods dealers coming soon pro subscription: $4.99 / month or $49.99 / year logo graphic stra
Slide 25: Bubba Case Study: Illustrative Recurring Revenue Opportunity
bubba case study: illustrative recurring revenue opportunity opportunities, ripe for harvesting ~30m(1) bass anglers ~300,000 anglers ~150,000 anglers $7.5m bass anglers in u.s. assuming 1% of bass anglers purchase a bubba pro series smart fish scale and 50% subscribe to bubba’s annual pro subscript
Slide 26: Infrastructure: Investments complete, ready to scale
Infrastructure Investments complete, ready to scale logo graphic
Slide 27: Infrastructure: Complete & Ready for Expansion
infrastructure: complete & ready for expansion new hq and distribution center (2019) - 632k sf provides capacity for organic growth and acquisitions new consumer-focused brand lanes (2020) -finished build-out of leverageable brand lane teams new public company infrastructure (2020) - spin created ne
Slide 28: Infrastructure: Consolidations into New Facility, Complete
infrastructure: consolidations into new facility, complete investments complete, ready to scale © 2023 american outdoor brands, inc. all rights reserved 28 logo graphic fy20 & fy23)(fy23)(fy17) crimson grilla grills grilla grills bubba (fy23)
Slide 29: People & Culture: The right people & culture to win
People & Culture The right people & culture to win © 2023 American Outdoor Brands, Inc. All Rights Reserved 29 logo graphic
Slide 30: Our Culture: A Competitive Advantage
our culture: a competitive advantage values drive our culture how others view aob’s culture entrepreneurial” (top 10 customer) “visionary” (industry investment banker) “innovation” (top 10 customer) “entrepreneurial” (large aob competitor) “dedicated” (top 10 customer) the right people & culture to
Slide 31: People & Culture: Aligned with Long-Term Growth Strategy
people & culture: aligned with long-term growth strategy the right people & culture to win.1 workforce success - passion - talent - skills - values – stability 2 “dock & unlock” - innovation & ip - brand authenticity - customer service $400m 4 financial success sustainable margins – reinvestment 3 c
Slide 32: People & Culture: Linking to Dock & Unlock Strategy
people & culture: linking to “dock & unlock” strategy vision most desired employer in the communities where we operate goals hunting talent harvesting talent catch & don’t release diversity, equity, inclusion environment, social, governance strategies strategic workforce planning sourcing onboarding
Slide 33: Financials
financials strong balance sheet, leverageable growth model, with favorable cash flow upside.33
Slide 34: Business Model: Core Competencies Drive Simplicity
business model: core competencies drive simplicity simple, leverageable model (one erp, lean organization) asset light (outsourced manufacturing, low capex) innovation (core competency) strong financial model, in place © 2023 american outdoor brands, inc. all rights reserved 34
Slide 35: Financial Model: Increased Operating Leverage with Growth
financial model: increased operating leverage with growth our significant investments are behind us - new hq and distribution center - new consumer-focused brand lanes - new public company infrastructure - new dtc platform - new erp system - new analytics platform significant ebitdas contribution on
Slide 36: Balance Sheet: Strong, with Cash Flow Upside
balance sheet: strong, with cash flow upside balance sheet as of january 31, 2023 strong financial model, in place cash accts rec inventory other current assets long-term assets $253.2m total assets 8.6% 9.9% 41.7% 4.4% 35.4% accts payable accrued exp bank debt other liabilities equity 4.0% 5.1% 3.8
Slide 37: Financial Metrics: W/C Upside & Negative Net Debt
financial metrics: w/c upside & negative net debt working capital turns (1) net debt leverage (2) normalized w/c target: 2.0x+ 1.9x 1.9x 2.2x 2.8x 2.7x 2.1x 1.8x 1.8x 1.8x 1.6x 1.6x q1 fy21 q2 fy21 q3 fy21 q4 fy21 q1 fy22 q2 fy22 q3 fy22 q4 fy22 q1 fy23 q2 fy23 q3 fy23 net debt leverage 1.0 0.5 0.0
Slide 38: Capital Allocation: Demonstrated Deployment
capital allocation: demonstrated deployment organic growth our highest priority is to invest in our business: drives organic net sales to $400m delivers sustainable profitability yields strong returns and free cash flow meat your maker 1 ttm 3q23 net sales growth of 4.2x first year of creation 2 m&a
Slide 39: M&A Illustration: Dock & Unlock Drives Incremental EBITDA
m&a illustration: “dock & unlock” drives incremental ebitda illustrative acquisition target: ebitda walk demonstrated results with “dock & unlock” tuck-in range: $10m - $50m (net sales) net sales cogs variable selling & distribution fixed opex ebitda proforma ebitda (1) cost reductions through suppl
Slide 40: Conclusion
Conclusion
Slide 41: We're Ready for the Future
we’re ready for the future...innovation engine, built. leverageable brand lane teams in place. customer & channel opportunities ripe for harvesting. infrastructure investments complete, ready to scale. strong balance sheet, leverageable growth model, favorable cash flow upside. the right people and
Slide 42: Thank You
thank you. american outdoor brands (nasdaq: aout) © 2023 american outdoor brands, inc. all rights reserved 42
Slide 43: Appendix
Appendix
Slide 44: Non-GAAP Financial Measures
non-gasp financial measures in this presentation,certain non-gaap financial measures, including “non-gaap net income and “adjusted ebitdas” are presented. a reconciliation of these and other non-gaap financial measures are contained at the end of this press release. from time-to-time, the company co
Slide 45: Q3 FY23 Non-GAAP Adjusted EBITDAS Reconciliation
q3 fy23 non-gaap adjusted ebitdas reconciliation american outdoor brands, inc. and subsidiaries reconciliation of gaap net income/(loss) to non-gaap adjusted ebitdas (in thousands) (unaudited) for the three months ended january 31, for the nine months ended january 31, 2023 2022 2023 2022 gaap net (
Slide 46: Q3 FY23 GAAP Income Statement
q3 fy23 gaap income statement american outdoor brands, inc. and subsidiaries consolidated statements of operations (unaudited) for the three months ended january 31, for the nine months ended january 31, (in thousands, except per share data) net sales $ 50,894 $ 70,105 $ 149,006 $ 201,633 cost of sa
Slide 47: Q3 FY23 Non-GAAP Income Statement
q3 fy23 non-gaap income statement american outdoor brands, inc. and subsidiaries consolidated statements of operations non-gaap (in thousands, except per share data) (unaudited) for the three months ended january 31, for the nine months ended january 31, 2023 2022 2023 2022 net sales $ 50,894 $ 70,1
Slide 48: Strong Balance Sheet Supports Organic Growth & Acquisitions
strong balance sheet supports organic growth & acquisitions balance sheet as of january 31, 2023 assets ($m) cash $21.7 other current assets 141.7 intangibles 55.0 pp&e 9.8 other assets 25.0 total assets $253.2 liabilities & equity ($m) current liabilities $24.1 bank debt 10.0 other liabilities 23.9
Slide 49: Diverse Portfolio of Early-Stage Consumer Brands
diverse portfolio of 21 early-stage consumer brands schrade isolate enrage grilla modular outdoor kitchen bubba fishing rods bubba smart fish scale and fishing app grilla silverbac at pellet grill crimson trace horizonline rangefinding binoculars smith & wesson throwing knives and axes lockdown secu
Slide 50: Two Categories: Outdoor Lifestyle & Shooting Sports
two categories: outdoor lifestyle & shooting sports outdoor lifestyle shooting sports illustrative products fillet knives, fishing rods, fishing tools, kitchen cutlery, apparel grills, smokers, outdoor kitchens, pellets, & accessories folding, fixed-blade knives folding & fixed-blade knives, multi-t
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