Slide 1: Q2 2022 Financial Highlights
Q2 2022 FINANCIAL HIGHLIGHTS August 3, 2022
Slide 2: Note on Forward-Looking Statements
PAGE 2 Note on Forward-Looking Statements This presentation contains forward-looking statements as defined within the meaning of U.S. federal securities laws. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe
Slide 3: Q2 2022 Summary
PAGE Q2 2022 SUMMARY 3 NET SALES ($MM) GROSS MARGIN $290.1 $228.6 55.8% 55.6% 55.9% $161.9 50.5% $142.8 + 27% YoY + 29 BPs YoY 21% 3-Year CAGR Highest ever Q2 gross margin Q2 19 Q2 20 Q2 21 Q2 22 Q2 19 Q2 20 Q2 21 Q2 22 NET INCOME ($MM) ADJUSTED EBITDA(1) ($MM) Tax rates and a non- (48%) YoY routine
Slide 4: Net Sales by Segment and Geography
PAGE NET SALES BY SEGMENT AND GEOGRAPHY 4 YoY GROWTH IN YoY GROWTH IN NET SALES BY GEOGRAPHY Q2 2022 NET SALES Q2 2022 NET SALES IN Q2 2022 BY SEGMENT BY GEOGRAPHY FWRD faced tougher comps in Q2: Factors contributing to slower Int’l: • FWRD grew 151% YoY in Q2 21 • China restrictions for COVID-19 •
Slide 5: Q2 Results Build on Long-Term Track Record of Profitable Growth at Scale
PAGE Q2 RESULTS BUILD ON LONG-TERM TRACK RECORD OF PROFITABLE GROWTH AT SCALE 5 NET SALES ($MM) NET INCOME AND ADJUSTED EBITDA(1) ($MM) LTM Net Sales Cross $1 Billion for First Time Long-Term Track Record of Profitability $1,057 $891 Net Income Adjusted EBITDA $601 $581 $499 $115 $114 $100 $400 $85
Slide 6: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 6 ACTIVE CUSTOMERS(1) (000s) TOTAL ORDERS PLACED(1) (000s) AVERAGE ORDER VALUE(1) (TRAILING 12 MONTHS) 2,243 + 39% YoY 2,165 $303 1,769 $281 $275 $255 1,533 1,554 1,294 1,163 $204 1,359 989 998 Q2 18 Q2 19 Q2 20 Q2 21 Q2 22 Q2 18 Q2 19 Q2 20 Q2 21 Q2 22 Q2 18 Q2 19
Slide 7: Segment Results
PAGE SEGMENT RESULTS 7 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) + 30% YoY + 14% YoY $250 + 31% YoY 80% + 9% YoY 90% $244.7 $240 $150 $230 $140 70% $220 80% % of segment net sales $130 $210 $200 $188.8 $190 57% 58% 60% $120 $180 52% $110 70% $170 58% 57% $160 53% 50% $100 $143.9 $150 $140.8
Slide 8: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 8 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(1) 14.4% 14.6% 15.5% 11.0% 13.2% 11.7% 9.3% 6.6% Q2 19 Q2 20 Q2 21 Q2 22 Q2 19 Q2 20 Q2 21 Q2 22 AS A % OF NET SALES Q2 22 Q2 21 CHANGE OBSERVATIONS Strong full price selling, favorable mix shift and an increased ow
Slide 9: Earnings Per Share
PAGE EARNINGS PER SHARE 9 Q2 INCOME BEFORE THE EPS MATH INCOME TAXES ($MM) (000s, except per share figures and percentages) Q2 22 Q2 21 YoY $32.7 Income before income taxes $21,093 $32,665 (35%) $21.1 Provision for income taxes 4,820 1,127 328% $18.6 Effective tax rate 23% 3% 19 PTs Net income (GAAP
Slide 10: Cash Flow and Balance Sheet
CASH FLOW AND BALANCE SHEET
Slide 11: Cash Flow and Balance Sheet Highlights
PAGE CASH FLOW AND BALANCE SHEET HIGHLIGHTS 11 NET CASH PROVIDED BY FREE CASH FLOW(1) ($MM) CASH & CASH EQUIVALENTS, NET(2) ($MM) OPERATING ACTIVITIES ($MM) >5X in 3 Years +8% YoY $237.9 $66.6 $65.3 $219.6 $61.9 $60.5 $126.8 $22.7 $24.4 $21.9 $12.9 $44.8 1H 19 1H 20 1H 21 1H 22 1H 19 1H 20 1H 21 1H
Slide 12: Build Up of Free Cash Flow in 1H 2022
PAGE BUILD UP OF FREE CASH FLOW IN 1H 2022 12 $100 $75 + $22.8 ($37.2) $ Millions $50 $38.8 ($2.5) $21.9 $25 $0 Net Income Other Working Capital Increase in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 13: Upcoming Investor Conference
UPCOMING INVESTOR CONFERENCE PIPER SANDLER GROWTH FRONTIERS CONFERENCE • SEPTEMBER 13, 2022
Slide 14: Appendix: Definitions and Reconciliations
PAGE PAGE 14 14 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 15: GAAP to Non-GAAP Reconciliation – Second Quarter Results
PAGE GAAP TO NON-GAAP RECONCILIATION – SECOND QUARTER RESULTS 15 ADJUSTED EBITDA ($MM) (1) Q2 2019 Q2 2020 Q2 2021 Q2 2022 NET INCOME $12.7 $14.2 $31.5 $16.3 (+) OTHER EXPENSE (INCOME), NET 0.4 0.2 0.3 (1.8) (+) PROVISION FOR INCOME TAXES 4.5 4.4 1.1 4.8 (+) DEPRECIATION AND AMORTIZATION 0.9 1.2 1.1
Slide 16: GAAP to Non-GAAP Reconciliation – Full Year and LTM Results
PAGE GAAP TO NON-GAAP RECONCILIATION – FULL YEAR AND LTM RESULTS 16 ADJUSTED EBITDA ($MM) (1) 2016 2017 2018 2019 2020 2021 LTM 6-22 NET INCOME $2.2 $5.0 $30.6 $35.7 $56.8 $99.8 $84.9 (+) OTHER EXPENSE (INCOME), NET 0.9 1.4 0.6 0.9 1.0 0.6 (2.3) (+) PROVISION FOR INCOME TAXES 2.4 14.1 10.5 11.5 3.3
Slide 17: Metrics Definitions
PAGE METRICS DEFINITIONS 17 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other (income) expense, net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense and certain non-r