Sportsman's Warehouse Holdings, Inc. · NASDAQ:SPWH
Sportsman's Warehouse — Investor Presentation (January 2022)
25 slides from Sportsman's Warehouse's investor presentation, Jan 18, 2022
Slide 1: Investor Presentation January 2022
INVESTOR PRESENTATION January 2022
Slide 2: Forward Looking Statements and Non-GAAP Measures
FORWARD LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation includes 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 and Section 21E of the Securities Exchange Act of 1934. These st
Slide 3: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1 Consistent double-digit four-wall 2 Strong growth opportunities due to heightened outdoor activity participation, Omni-channel capabilities, store expansion, and industry consolidation 3 Increasing market share in hunting, fishing, camping, and outdoor products via integr
Slide 4: Sportsman's Warehouse at a Glance
SPORTSMAN’S WAREHOUSE AT A GLANCE (NASDAQ: SPWH) specialty retailer serving participants of all experience levels merchandising strategy 4 2022 INVESTOR PRESENTATION 1 As of 12/25/21 unless otherwise noted. 2 For fiscal year December 2021 TTM, period ended 12/25/21. 3 For period ended 12/25/21. See
Slide 5: Large, Growing Industry with High Participation and Retention
LARGE, GROWING INDUSTRY WITH HIGH PARTICIPATION AND RETENTION INCREASING OUTDOOR PARTICIPATION of Americans participate in outdoor activities. Highest participation have the highest participation 49.1 million participants buyers in 2021 were under the Fishing Licenses4 firearm ownership among Women,
Slide 6: Differentiated Outdoor Specialty Retail Experience
DIFFERENTIATED OUTDOOR SPECIALTY RETAIL EXPERIENCE 6 2022 INVESTOR PRESENTATION
Slide 7: Assortment Strategy: Depth, Breadth, and Brands
ASSORTMENT STRATEGY | DEPTH, BREADTH, AND BRANDS PORTFOLIO OF BRANDS PRIVATE LABEL 7 2022 INVESTOR PRESENTATION
Slide 8: Local Assortment Strategy: Depth, Breadth, and Brands
LOCAL ASSORTMENT STRATEGY | DEPTH, BREADTH, AND BRANDS IN-STORE MERCHANDISING AND PRODUCT ASSORTMENT 8 2022 INVESTOR PRESENTATION
Slide 9: Data-Driven, Local Marketing Focus
DATA-DRIVEN, LOCAL MARKETING FOCUS of FY 2021 sales are ecommerce-driven website visitors in 2021 9 In-Store and Off-Site Events Ladies’ NightAddicted to Fishing Hold ~3,000 events annually Support Local and National Conservation Efforts Digital / E-commerce Strategy 2022 INVESTOR PRESENT ATION >10%
Slide 10: Conservation and Restoration
CONSERVATION AND RESTORATION COMMITTED TO LOCAL CONSERVATION AND RESTORATION Local Restoration Efforts 2021 • • • • 49 communities served ~2,000 hours of labor ~500 volunteers ~10k pounds of trash cleaned from public lands 2022 INVESTOR PRESENTATION 10
Slide 11: Executing on Long-Term Growth Initiatives
EXECUTING ON LONG-TERM GROWTH INITIATIVES Leverage Omni-Channel Platform Grow Loyalty and Credit Card Programs Expand Store Footprint Strategic Acquisitions Increase Assortment of Private Label 11 2022 INVESTOR PRESENTATION
Slide 12: Three-Pronged Approach to Enhance Omni-Channel Platform
THREE-PRONGED APPROACH TO ENHANCE OMNI-CHANNEL PLATFORM 1 BETTER USER EXPERIENCE ƒ ƒ Continuous category optimization Customers able to buy online: – Growing high double digits percentage vs. prior year (pickup in store and curbside) – Generating incremental foot traffic and sales Personalization an
Slide 13: Successful Loyalty Program and Co-Branded Credit Card
SUCCESSFUL LOYALTY PROGRAM AND CO-BRANDED CREDIT CARD LOYALTY REWARDS PROGRAM IS AMONG TOP IN THE INDUSTRY 5x Points earned on in-store purchases 3.0M+ existing members ~50% of Revenue generated from program1 2x Spend over non-members Exclusive Events and sales for members 13 2022 INVESTOR PRESENTAT
Slide 14: Strong Omni-Channel Growth Highlights U.S. Footprint
STRONG OMNI-CHANNEL GROWTH HIGHLIGHTS U.S. FOOTPRINT ƒ Robust ecommerce sales growth with strong traffic to Sportsmans.com Opened 10 new SPWH stores in 2021 Announcing 5 new stores and expectation of 7-10 new stores in 2022 ƒ ƒ ƒ ƒ ƒ ƒ ƒ Stansbury, Utah Saratoga Springs, Utah Riverton, Wyoming Sante
Slide 15: Disciplined Store Expansion Strategy
DISCIPLINED STORE EXPANSION STRATEGY Strong Emphasis on Data Analytics and Financial Rigor 15 2022 INVESTOR PRESENTATION FINANCIAL TARGETS ƒ>10% 4-wall EBITDA margin upon maturity ƒ>20% ROIC (including initial inventory) upon maturity ƒMaturity of new stores expected within 18-24 months STRATEGIC FI
Slide 16: Expand Exclusive Product Penetration
EXPAND EXCLUSIVE PRODUCT PENETRATION ƒ Good, Better, Best Strategy to complement portfolio of brand name suppliers – – – Good: Sportsman’s Warehouse Better: Rustic Ridge, Lost Creek, Vital Impact Best: Killik, Yukon Gold ƒ Sourcing – – – – Use of low-cost trading partners Product development using t
Slide 17: Historical Financial Overview
HISTORICAL FINANCIAL OVERVIEW1,2 Net Sales3 ($M) Adjusted EBITDA4 ($M) & Margin (%) Gross Profit ($M) & Margin (%) $163 $1,528 $494 $476 $849 $285 $810 $274 $780 $263 $707 $239 FY15 FY16 FY17 FY18 FY19 FY20 Dec. 2021 TTM FY15 FY16 FY17 FY18 FY19 FY20 Dec. 2021 TTM FY15 FY16 FY17 FY18 FY19 FY20 Dec.
Slide 18: Strong Balance Sheet with Disciplined Investment Approach
STRONG BALANCE SHEET WITH DISCIPLINED INVESTMENT APPROACH 2.5 channel growth (retail and e-commerce) acquisition and retention financial flexibility and growth 18 2022 INVESTOR PRESENTATION 1 Total Debt at end of period to Adj. EBITDA. See the Appendix for a reconciliation of Adjusted EBITDA to Net
Slide 19: Balance Sheet: Increasingly an Area of Strength
BALANCE SHEET: INCREASINGLY AN AREA OF STRENGTH BALANCE SHEET HIGHLIGHTS (as of fiscal month end) YoY ∆ 2019 Total Liquidity Up Significantly Up $125M since 2019 Debt-Free Debt Reduction Paid off $79 million compared to 2019 19 2022 INVESTOR PRESENTATION ($M) December 25, 2021 December 28, Total Liq
Slide 20: Q4 and Full Year 2021 Guidance
Q4 AND FULL YEAR 2021 GUIDANCE 20 2022 INVESTOR PRESENTATION 1 See the Appendix for a reconciliation of Adjusted Net Income, Adjusted EPS and Adjusted EBITDA ($M)Q4 2021Full Year 2021 Net Sales Gross Margin SG&A (as a % of Net Sales) Adjusted Net Income1 Adjusted Diluted EPS1 Balance Sheet Highlight
Slide 21: 2022 Operational Highlights and Long Term Growth Strategy
2022 OPERATIONAL HIGHLIGHTS AND LONG TERM GROWTH STRATEGY Digits Digits 21 2022 INVESTOR PRESENTATION Long Term Growth StrategyTarget Stores New Store Annual Sq. Ft. Growth Rate Same Stores Sales Growth Rate Adjusted EBITDA Margin % 300+ Mid-to-High Single Low-to-Mid Single High-Single-Digits ($M)Fu
Slide 22: Key Takeaways
KEY TAKEAWAYS 22 2022 INVESTOR PRESENTATION 01 Authentic, differentiated outdoor specialty retail experience with a loyal, growing customer base 02 Strong and experienced management team driving operational excellence with proven track record 03 Increasing market share in hunting, fishing, camping,
Slide 23:
23 2022 INVESTOR PRESENTATION
Slide 24: Reconciliation of Net Income to Adjusted EBITDA
TABLE Reconciliation of net income to adjusted EBITOA (in thousands}: Oe<ember 2021TIM FY20 FY19 FY18 FY17 FY16 FY15 s s s s Net income Interest expense Income tax expense Oepreciatton and amortization Stock-based compensation expense (1) Pre-opening expenses (2) Merger termination gain (3) Acquis i
Slide 25: Reconciliation of Q4 and 2021 Full Year Guidance
TABLE Reconciliation offourth quarter and 2021 full year guidance (in thousands, except per share data): Estimated FY '21 Estimated Q4 '21 High High Low Low Numerator: Net income Gain on Deal Termniation,net of tax (1) Acquisition costs,net of tax (2) Adjusted net income Denominator: Diluted weighte
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