Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — American Outdoor Brands — Investor Presentation (March 2020)
36 slides from Smith & Wesson Brands's investor presentation, Mar 10, 2020
Slide 1: Investor Presentation March 2020
Exhibit 99.1 INVESTOR PRESENTATION MARCH 2020 © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS RESERVED.Exhibit 99.1 INVESTOR PRESENTATION MARCH 2020 © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS RESERVED.
Slide 2: Legal Safe Harbor
LEGAL SAFE HARBOR Certain statements contained in this presentation may be deemed to be forward- the prioritization of investments and capital allocation focused on both organic and looking statements under federal securities laws, and we intend that such forward- inorganic growth; the outdoor produ
Slide 3: Presenters
American Outdoor Brands Corporation PRESENTERS BRIAN D. MURPHY CO-PRESIDENT & CO-CHIEF EXECUTIVE OFFICER MARK P. SMITH CO-PRESIDENT & CO-CHIEF EXECUTIVE OFFICER JEFFREY D. BUCHANAN EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER, CHIEF ADMINISTRATIVE OFFICER & TREASURER © 2020 AMERICAN OUTDOOR BRA
Slide 4: Today's American Outdoor Brands Corporation
TODAY’S AMERICAN OUTDOOR BRANDS CORPORATION • American Outdoor Brands Corporation (NASDAQ Global Select: AOBC) is a provider of quality products for shooting, hunting, and rugged outdoor enthusiasts Firearms Outdoor Products & Accessories in the global consumer and professional markets • AOBC report
Slide 5: Financial Review: Overview and Quarterly Highlights
Financial Review OVERVIEW QUARTERLY HIGHLIGHTS – FY20Q3 YEARLY HIGHLIGHTS FY19A FY20 Q3 (1/31/20) Segment Sales Sales $638.3M Gross Profit 35.4% Net Income $18.4M Outdoor Firearms Adj. EBITDAS $111.3M Products & Adj. EBITDAS Margin 17.4% Accessories 75% GAAP Income Per Share $0.33 25% $0.83 Non-GAAP
Slide 6: Financial Review: Financial Guidance
Financial Review FINANCIALGUIDANCE (Fiscal Year Ending April 30) Fiscal Fourth Quarter Estimate Revenue $205M to $215M Note: Guidance for revenue, GAAP GAAP Earnings Per Share $0.17 to $0.21 earnings per share, non-GAAP Non-GAAP Earnings Per Share* $0.33 to $0.37 earnings per share, tax rate, and sh
Slide 7: Executive Summary: Spin-off of Outdoor Products & Accessories
Executive Summary SPIN-OFF OF OUTDOOR PRODUCTS & ACCESSORIES • AOBC has announced a plan to pursue the spin-off of its Outdoor Products & Accessories business via a tax-free distribution to AOBC stockholders • Transaction is expected to result in two separate public companies: – Smith & Wesson Brand
Slide 8: Executive Summary: Separation Enhances Prospects for Long-Term Value Creation
Executive Summary SEPARATION ENHANCES PROSPECTS FOR LONG-TERM VALUE CREATION • Each company will benefit from a distinct strategic and management focus on its specific operational and growth priorities – Smith & Wesson Brands, Inc. – focus on organic growth by developing new products that meet the n
Slide 9: Executive Summary: Two Companies with Enhanced Prospects for Value Creation
Executive Summary TWO COMPANIES WITH ENHANCED PROSPECTS FOR VALUE CREATION Estimated $500M – $550M $200M - $210M (a) Revenue Pro Forma Adjusted $90M - $105M $25M - $30M (a) EBITDAS Industry-Leading (b) Brands Estimated Handguns & Long Guns: ~$4.2B Rugged Outdoor Recreation: ~$30-35B (c) Market Size
Slide 10: Executive Summary: Comparable Company Analysis
Executive Summary COMPARABLE COMPANY ANALYSIS Commentary Firearms & Outdoor Products — Enterprise Value / EBITDA Multiples 20.0x • AOBC currently trades at a meaningful discount to EV/LTM EBITDA EV/CY2020E EBITDA 15.2x comparable firearms and outdoor products peer groups 15.0 12.5x • Only publicly t
Slide 11: Outdoor Products & Accessories
OUTDOOR PRODUCTS & ACCESSORI ESOUTDOOR PRODUCTS & ACCESSORI ES
Slide 12: Outdoor Products & Accessories: Experienced Leadership
Outdoor Products & Accessories EXPERIENCED LEADERSHIP BRIAN D. MURPHY H. ANDREW FULMER, CPA PRESIDENT & CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER • Joined the Company in 2016 as President of the Outdoor Recreation Division, • Joined the Company in 2010 with his most recent role being Vice the
Slide 13: A Diverse Outdoor Products & Accessories Company: American Outdoor Brands, Inc.
Outdoor Products & Accessories A Diverse Outdoor Products & Accessories Company: American Outdoor Brands, Inc. • American Outdoor Brands, Inc. will be a growth-oriented provider of outdoor products • Financial profile is expected to yield growth and profitability and accessories, including hunting,
Slide 14: Strategic Priorities for Growth
Outdoor Products & Accessories STRATEGIC PRIORITIES FOR GROWTH United States Japan Taiwan South Korea China Philippines Thailand 5 India Mexico 4 3 Pursue Acquisitions that 2 Complement our Expand and Enhance 1 Current Business Cultivate Direct-to- our Supply Chain Expand Our Consumer Relationships
Slide 15: Brand Lanes: Targeted Consumer Segments
Outdoor Products & Accessories BRAND LANES: TARGETED CONSUMER SEGMENTS Who is the Marksman? Who is the Harvester? Who is the Defender? Who is the Adventurer? Marksmen are shooters, from the beginner To the Harvester, it’s not a job. It’s not For the Defender, security is above all The Adventurer is
Slide 16: Creating Loyal Consumer Relationships
Outdoor Products & Accessories CREATING LOYAL CONSUMER RELATIONSHIPS BY CONNECTING THE CONSUMER TO A BRAND’S CORE CHARACTERISTICS © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS RESERVED. 16Outdoor Products & Accessories CREATING LOYAL CONSUMER RELATIONSHIPS BY CONNECTING THE CONSUMER TO A BRAND’S C
Slide 17: New Products for 2020
Outdoor Products & Accessories NEW PRODUCTS FOR 2020 MARKSMAN HARVESTER 300+ NEW NEW 65 112 PRODUCTS PRODUCTS NEW PRODUCTS 29+ DEFENDER ADVENTURER NEW PATENTS NEW NEW 88 38 PRODUCTS PRODUCTS EXPECTED © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS RESERVED. 17Outdoor Products & Accessories NEW PRODU
Slide 18: Featured New Products for 2020
Outdoor Products & Accessories FEATURED NEW PRODUCTS FOR 2020 CSA-1309 Rifle Scope E-Max Shadows Electronic Ear Buds LS870 Shotgun Laser Saddle AR500 Target Puck E-Max Pro Pile Driver Lineup Electronic Ear Muffs Bullet Puller Monitoring/Security System © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS
Slide 19: Featured New Products for 2020
Outdoor Products & Accessories FEATURED NEW PRODUCTS FOR 2020 DeathGrip UltraLite Grave Digger Hunting Blind Multi-Flex Interchangeable Knife System No Slip H-Grip Blood Moon 22MP Land Management Tools Homeland Premium Game Camera Made-In-USA Knife © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS RES
Slide 20: Strategic Conception
STRATEGIC CONCEPTION 1. Understand Journey of the Harvester 2. Assess Organic Capabilities 3. Create Pre-Hunt Hunt Post-Hunt (no desirable acquisition Product target) Consumer Acquire or Development (leverage brand lane Familiarity Create? Capability structure to create new brand) Land management an
Slide 21: Now Trending: U.S. Consumer Meat Processing Equipment
NOW TRENDING U.S. CONSUMER MEAT PROCESSING EQUIPMENT PROJECTED GROWTH 2016 $ 10+ Billion 5.9% Annual Growth We are the makers of MEAT processing equipment. Yes, *Grand View Research we love meat so much we named our brand after it. And 2017 Report we’re here to help you up your wild game … game. Wit
Slide 22: Pursue Complementary Acquisitions
Outdoor Products & Accessories PURSUE COMPLEMENTARY ACQUISITIONS Pursue appropriate acquisitions for Outdoor Products & Accessories, with a focus on the large and growing markets in which our core consumers participate. This disciplined approach to acquisitions has led to our complementary brand por
Slide 23: Firearms
FIREARMSFIREARMS
Slide 24: Firearms: Experienced Leadership
Firearms EXPERIENCED LEADERSHIP MARK P. SMITH DEANA L. MCPHERSON, CPA, CGMA PRESIDENT & CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER • Joined the Company in 2010 as Vice President of Supply Chain • Joined the Company in 2007 as Corporate Controller, was later promoted to Vice President of Finance
Slide 25: An Iconic Firearms Company: Smith & Wesson Brands, Inc.
Firearms AN ICONIC FIREARMS COMPANY: SMITH & WESSON BRANDS, INC. • Smith & Wesson Brands, Inc. is an iconic firearm business with a 167-year history • Financial profile is expected to yield strong cash flows, a granular of delivering market leading, personal protection and sport-related firearms for
Slide 26: Firearms Strategic Priorities for Growth
Firearms STRATEGIC PRIORITIES FOR GROWTH 5 4 Return Value 3 To Stockholders Simplify Our Business Capital allocation methodology 2 A culture of simplicity to focus on designed to return stockholder Focus on New value and enhance efficiency profitability and improve the ease Leverage Our Iconic Produ
Slide 27: Brand Strategy
Firearms BRAND STRATEGY: EXPAND BRANDS WITH PRODUCTS THAT MEET NEEDS / WANTS OF EACH TARGET CONSUMER Iconic revolvers, pistols, shooting gear, accessories: The Smith & Wesson brand product portfolio includes everything that made Smith & Wesson a household name. World class quality classic revolvers
Slide 28: Firearms New Products for 2020
Firearms NEW PRODUCTS FOR 2020 Brand Product SKUs Primary Consumer Segments M&P®9 SHIELD™ EZ 4 • All Handguns segments Performance Center® M&P® 12 • Hard Core, Young Gun, Target Masters M2.0™ Full Size • Young Novices, Shooters, Field & Stream, 4 Performance Center® T/CR22® Avid Owners Carbon Fiber
Slide 29: Product Highlight: M&P9 Shield EZ
Firearms PRODUCT HIGHLIGHT: M&P9 SHIELD EZ AWARD WINNING M&P SHIELD EZ Pistol Series now in popular, powerful 9MM caliber Built for personal protection and every day carry, the M&P9 Shield EZ further expands the M&P Shield EZ pistol platform, which was released in 2018 and features an easy-to-rack s
Slide 30: Next Steps Toward Spin-Off
American Outdoor Brands Corporation NEXT STEPS TOWARD SPIN-OFFAmerican Outdoor Brands Corporation NEXT STEPS TOWARD SPIN-OFF
Slide 31: Next Steps
NEXT STEPS 1H CALENDAR 2020 2H CALENDAR 2020 • Finalize American Outdoor Brands, Inc. management • Finalize Form 10 and Board of Directors composition • Financing execution • Finalize American Outdoor Brands, Inc. capital structure • Establish effective spin-off date • File initial Form 10 • Smith &
Slide 32: Appendix Slides
APPENDIX SLIDES © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS RESERVED.APPENDIX SLIDES © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS RESERVED.
Slide 33: Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES In this investor presentation, certain non-GAAP financial measures, stock-based compensation expenses; and (2) the non-GAAP including “non-GAAP net income,” and “Adjusted EBITDA” are measures that exclude such information. The company presen
Slide 34: Condensed Consolidated Statements of Income/(Loss)
American Outdoor Brands Corporation CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) (Unaudited) For the Three Months Ended For the Nine Months Ended January 31, 2020 January 31, 2019 January 31, 2020 January 31, 2019 (Unaudited) (In thousands, except per share data) Net sales $ 166,695 $ 162,008
Slide 35: GAAP to Non-GAAP Reconciliation
American Outdoor Brands Corporation GAAP TO NON-GAAP RECONCILIATION (Unaudited) (U.S. $ thousands, except per share data) For the Three Months Ended For the Nine Months Ended January 31, 2020 January 31, 2019 January 31, 2020 January 31, 2019 $ % of Sales $ % of Sales $ % of Sales $ % of Sales GAAP
Slide 36: Investor Relations Contact
Elizabeth Sharp Vice President — Investor Relations 2100 Roosevelt Avenue Springfield, MA 01104 Phone: 413 747 6284 Email: lsharp@aob.com www.aob.com © 2020 AMERICAN OUTDOOR BRANDS CORP. ALL RIGHTS RESERVED.Elizabeth Sharp Vice President — Investor Relations 2100 Roosevelt Avenue Springfield, MA 011
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