Yeti Holdings, Inc. · NYSE:YETI
Yeti — Q2 2020 Earnings Presentation
20 slides from Yeti's earnings presentation, Aug 6, 2020
Slide 1: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights
Slide 2: Disclaimer
Disclaimer We are not making any representations or warranties, express or implied, with respect to the information (financial, business, legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this presentation. Forward-
Slide 3: Expanding Our Customer Base; Introduce New Products; Accelerate DTC
1 EXPANDING OUR CUSTOMER BASE Debuted new digital content including The Midnight Hour and Tips from the Pit New partnerships including Major League Baseball, surfer Mick Fanning, and Crew Nation 2 INTRODUCE NEW PRODUCTS Q2 2020 introductions: Roadie 24 hard cooler, Rambler Elements, and Daytrip Lunc
Slide 4: Key Financial Metrics and Key Business Metrics
LTM Q2 2020 Net Sales KEY FINANCIAL METRICS $948MM $187MM LTM Q2 2020 LTM Q2 2020 Net Sales Adjusted EBITDA2 47% 20% Coolers & LTM Q2 2020 2013 – 2019 Net Sales CAGR Adjusted EBITDA2 Margin Equipment LTM Q2 2020 41% $948MM Drinkware KEY BUSINESS METRICS 57% 7 >95% Other New Products Introduced YETI
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Slide 6: YETI's Customer Base Has Expanded as Brand Awareness Has Spread
2006 FISHING HUNTING 2020 BEACH SNOW CAMPFIRE AT PLAY AT HOME AT WORK • YETI’s Customer Base Has Expanded as Brand Awareness Has Spread Nationally and Internationally • New Products and Marketing Driving Attractive Shift in Demographics 12 129 64% 9% 33% Communities Ambassadors 2019 % Under 451 2015
Slide 7: Large and Growing Social Media Presence; Domestic Unaided Brand Awareness
LARGE AND GROWING DOMESTIC UNAIDED BRAND SOCIAL MEDIA PRESENCE AWARENESS BY REGION2 Followers1 2019 2015 4.6MM 20% 4.5MM 18% 3.3MM 14% 13% 11% 11% 10% 3.1MM 9% 8% 7% 1.5MM 4% 3% 2% 616K 1% 1% 1% 1% 0% 488K East South West South East North West North South Pacific 4 New Mountain4 Mid Atlantic4 Centra
Slide 8: Product Introductions: Coolers & Equipment, Drinkware
1H 2H 1H 2H 1H 2H 1H PRE 2016 2017 2017 2018 2018 2019 2019 2020 Hard Cooler Sherpa™, Roadie®, River YETI Tundra®, YETI Tank™ Tundra® 210 Limited Edition Limited Edition Limited Edition Haul™ Silo® Reef Blue Green V Series™ Roadie® 24 Navy Soft Cooler Hopper® Field Tan Hopper Flip® 8 Daytrip® Hopper
Slide 9: Channel & Supply Chain
CHANNEL & SUPPLY CHAIN
Slide 10: Strategic Channel Mix Creates Stable, High Margin Profile
HIGHLIGHTS STRATEGIC CHANNEL MIX CREATES STABLE, HIGH MARGIN PROFILE • Diverse omni-channel business 2015 LTM Q2 2020 • Fast growing DTC business Wholesale2 Wholesale 52% • Diverse group of U.S. wholesale partners with 92% nationwide coverage; only one account exceeds $469MM $948MM 10% of gross sale
Slide 11: YETI.com, Retail, Corporate Sales, YETI Authorized
YETI.COM RETAIL CORPORATE SALES YETI AUTHORIZED 11
Slide 12: Growing Global Sales Expansion Strategy
GROWING GLOBAL SALES EXPANSION STRATEGY • Capitalize on global digital, e-commerce, and mobile trends DTC & Wholesale DTC & Wholesale • Enter international markets via DTC and select wholesale • Push global brand via Ambassador, influencer, and event marketing 59% 41% Wholesale DTC & Wholesale 28% 2
Slide 13: Global Infrastructure and Global Footprint
GLOBAL INFRASTRUCTURE GLOBAL FOOTPRINT • Leading third-party manufacturing and logistics partners ll l l ll ll • Optimizing quality, delivery and best cost ll l l l l • Developed key manufacturing partners in 2017, 2018 and 2019 • Soft coolers and bag supply chain transitioned out of China
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Slide 15: Net Sales, Gross Profit, Adjusted EBITDA, Capital Expenditures
NET SALES GROSS PROFIT Gross Profit % Margin $948 $512 $914 $475 $779 $383 52% 54% 49% 2018 2019 LTM Q2 2020 2018 2019 LTM Q2 2020 ADJUSTED EBITDA1 CAPITAL EXPENDITURES Adjusted EBITDA 1 % Margin Capital Expenditures % of Net Sales $187 $172 $149 $32 $21 $22 3% 4% 2% 19% 19% 20% 2018 2019 LTM Q2 202
Slide 16: Net Sales, Category and Channel Net Sales Growth
NET SALES $247 $232 Q2 2019 Q2 2020 CATEGORY NET SALES GROWTH Coolers & Drinkware Equipment $129 $117 $114 $109 Q2 2019 Q2 2020 Q2 2019 Q2 2020 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $133 $149 $114 $82 Q2 2019 Q2 2020 Q2 2019 Q2 2020 16 Note: $ in millions.
Slide 17: Gross Profit, Adjusted Operating Income, Adjusted EBITDA, Adjusted EPS
GROSS PROFIT ADJUSTED OPERATING INCOME1 Gross Profit $ / % Margin Adjusted Operating Income $ / % Margin $138 / 56% $116 / 50% $49 / 20% $39 / 17% Q2 2019 Q2 2020 Q2 2019 Q2 2020 ADJUSTED EBITDA1 ADJUSTED NET INCOME PER DILUTED SHARE1 Adjusted EBITDA1 $ / % Margin $58 / 23% $0.41 $47 / 20% $0.30 Q2
Slide 18: Appendix
APPENDIX
Slide 19: Adjusted EBITDA Reconciliation
1 1 1 As Reported As Recast As Recast 2018 2019 YTD Q2 2019 YTD Q2 2020 LTM Q2 2020 Net Income $57.8 $50.4 $24.4 $42.0 $68.0 Interest Expense 31.3 21.8 11.8 5.8 15.8 Income Tax Expense 11.9 16.8 7.7 14.0 23.1 2 Depreciation and Amortization Expense 24.8 29.0 13.8 15.4 30.5 3,4 Non-Cash Stock-Based C
Slide 20: Adjusted Operating Income, Net Income and EBITDA Reconciliation
As Recast Q2 2019 Q2 2020 1 These costs are reported in SG&A expenses. Operating Income $35.0 $46.5 Non-Cash Stock-Based Compensation Expense 4.3 2.2 Represents the tax impact of adjustments calculated at an 1 2 expected statutory tax rate of 24.5% and 24.5% for the three 1 Long-lived Asset Impairme