Pet Valu Holdings Ltd. · TSX:PET
Pet Valu — Q1 2022 Earnings Presentation
14 slides from Pet Valu's earnings presentation, Apr 2, 2022
Slide 1: Q1 2022 Financial & Operating Review
Q1 2022 Financial & Operating Review For 13 weeks ended April 2, 2022
Slide 2: Disclaimers
Disclaimers Forward-Looking Information This presentation contains forward-looking information. Forward-looking information is provided as of the date of this presentation and is based on management’s opinions, estimates and assumptions in light of its experience and perception of historical trends,
Slide 3: Today's Presenters
Today’s Presenters Richard Maltsbarger Jim Grady President & Chief Executive Officer Chief Financial Officer 3
Slide 4: Our Mission
Our Mission To be Canada’s preferred pet retailer delivering the products, care, expertise, and memorable moments that devoted pet lovers want… locally in stores and everywhere online 4
Slide 5: Our Long-Term Growth Formula
Our Long-Term Growth Formula Expand Our Drive Same-Store Enhance 1 Store Network 2 Sales Growth 3 Operating Margins Opportunity to grow store Build on proven strategies Leverage investments count to 1,200+ & growing digital channels in modernizing systems Underpinned by the Resilient & Growing Canad
Slide 6: Q1 2022 Highlights
Q1 2022 Highlights +22.8% $213M +29.9% Same-Store Sales Revenue Adjusted EBITDA Growth (+24.9%2 vs. Q1 2021) Growth (traffic +18%; basket +4%)1 (to $46.8M) 6 66 >2M New Stores Chico stores Loyalty Openings acquired members (now operate in (30 in last 12 months) (>70% of sales) all 10 provinces) 1 Tr
Slide 7: Looking Ahead
Looking Ahead Expand Our Drive Same-Store Enhance 1 Store Network 2 Sales Growth 3 Operating Margins Open 35-45 new stores in 2022 Optimizing omni-channel Navigating confluence of process and experience to drive inflationary pressures in fuel, Now filling new store pipeline efficiency & effe
Slide 8: Q1 2022 Key Financial Metrics
Q1 2022 Key Financial Metrics Q1 2022 vs. PY Drivers • Strong SSSG and 30 net new stores in LTM, System-Wide Sales $285.9 +25.8%1 ending the quarter with 705 locations Same-Store Sales Growth +22.8% nm • Traffic2 +18.4% and basket2 +3.7% Revenue $213.3 +24.9%1 • Growth in-line with system-wide sales
Slide 9: Q1 2022 Key Financial Metrics
Q1 2022 Key Financial Metrics Cash Net Leverage Ratio1 Free Cash Flow $30.2M 2.1x ($15.1M) plus $130M available consistent with Q4 2021; including the on revolver down from 2.9x in Q2 2021 Chico acquisition Inventory Long-term Debt Net Capital Expenditures2 $100.5M $343.6M $5.2M +18% vs. Q1 2021 1 N
Slide 10: 2022 Outlook
2022 Outlook Updated Prior SSSG1 +9-12% +6-9% New Stores 35-45 30-45 Revenue $870-895M $845-870M Adjusted EBITDA $191-198M $187-194M Adjusted Net Income $1.37-1.44 $1.37-1.44 per Diluted Share Capital Expenditures2 $35-40M $20-25M 1 SSSG = Same-Store Sales Growth. 2 Net of (i) proceeds on disposal o
Slide 11: Thank You
Contact Us: Thank You investors@petvalu.com (289) 806-4559 11
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Quarters Ended Apr. 2, 2022 Apr. 3, 2021 (13 weeks) (13 weeks) Net income $22,621 $3,409 (1) Represents management fees paid to entities affiliated with Roark Capital Management, LLC ("Roark"). Concurrent with the closing of Pet Valu Holdings Ltd.'s (the "Company")
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Quarters Ended Apr. 2, 2022 Apr. 3, 2021 (13 weeks) (13 weeks) Net income $22,621 $3,409 (1) Represents management fees paid to entities affiliated with Roark. Concurrent with the closing of the Offering, the Company terminated the management agreement with Roar
Slide 14: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Quarters Ended Apr. 2, 2022 Apr. 3, 2021 (13 weeks) (13 weeks) Cash provided by operating activities $9,471 ($3,042) Cash (used in) provided by investing activities (9,718) 3,559 Repayment of principal on lease liabilities (11,769) (12,186) Interest paid on lease lia