Ollie's Bargain Outlet Holdings, Inc. · NASDAQ:OLLI
Ollie's Bargain Outlet — ICR Conference 2019
27 slides from Ollie's Bargain Outlet's conference presentation, January 2019
Slide 1: ICR Conference January 2019
SEQ began ‘GOOD STUFF CHEAP’ ICR Conference January 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform
Slide 3: Management Presenters
Management Presenters Mark Butler Co-Founder, Chairman, President and Chief Executive Officer John Swygert Executive Vice President and Chief Operating Officer Jay Stasz Senior Vice President and Chief Financial Officer 3
Slide 4: Company Overview
Company Overview Broad Selection of “Good Stuff Cheap” Fast growing, extreme value retailer offering a Net sales by merchandise category for FY 2017 broad selection of "Good Stuff Cheap" 13.7% Housewares Food Founder-led management team with deep- 28.3% Bed & Bath 11.9% rooted company culture Bo
Slide 5: Store Count by State
Store Count by State 18 RI 1 CT 2 15 43 NJ 6 11 28 DE 1 5 MD 10 21 13 27 15 13 3 13 24 4 3 2 Existing Market 25 2017 New Market 2018 New Market Distribution Center - York, PA 303 locations(1) Distribution Center - Commerce, GA 23 states Distribution Center – Lancaster, TX Coming FY 2020 (1) As of Ja
Slide 6: Significant Accomplishments
Significant Accomplishments Positive comparable store sales delivered for the last 18 consecutive quarters (1) Adjusted Net Income per diluted share has FY 2018 Outlook FY 2017 exceeded expectations each quarter since going public Added 117 new stores since IPO and opened 300th store ~ $1,245
Slide 7: Formula For Success
Formula For Success Highly experienced and disciplined teams “Good Stuff Cheap”—Ever Tremendous white space changing product assortment opportunity at drastically reduced prices Distinctive brand and Strong and consistent store engaging shopping model built for growth experience Extremely loyal “Oll
Slide 8: Highly Experienced and Passionate Founder-led Management Team
Highly Experienced and Passionate Founder-led Management Team Retail Ollie’s Name Title Prior Experience Experience Experience Co-Founder, Chairman, President & Mark Butler 41 Years 36 Years Chief Executive Officer John Swygert EVP, Chief Operating Officer 26 Years 15 Years EVP Business Development
Slide 9: Highly Experienced and Disciplined Merchant Team
Highly Experienced and Disciplined Merchant Team Kevin Howard McLain Freedman SVP – General Highly experienced team VP of Merchandising Merchandise Manager 18 Years at 5 Years at 203(1) combined years of experience at Ollie’s Ollie’s Ollie’s Approximately 13(1) years of average experience at O
Slide 10: "Good Stuff Cheap" – Ever Changing Product Assortment at Drastically Reduced Prices
“Good Stuff Cheap” – Ever Changing Product Assortment at Drastically Reduced Prices Frequently changing assortment of famous brand name products There is something for everyone Prices up to 70% below department and specialty stores (the “fancy stores”) and up to 20-50% below mass market retail
Slide 11: Distinctive Brand and Engaging Shopping Experience
Distinctive Brand and Engaging Shopping Experience Engaging Shopping Experience Distinctive Brand Unique, fun and engaging treasure hunt Witty Signage Highly Recognizable Caricatures shopping experience No frills, semi-lovely warehouse style stores featuring a broad selection of “Good Stuff Chea
Slide 12: Extremely Loyal "Ollie's Army" Customer Base
Extremely Loyal “Ollie’s Army” Customer Base Members shop more and spend more than non-members Spend approximately 40% more than non-members per shopping trip Active members have demonstrated strong loyalty to Ollie’s Accounted for ~ 70% of our net sales in fiscal year 2017 Willing to driv
Slide 13: Strong and Consistent Store Model Built for Growth
Strong and Consistent Store Model Built for Growth Portable, predictable, flexible, low-cost new store Year 1 Return Analysis model (dollars in thousands) Generates strong, consistent cash flow and attractive return on investment New Unit Model Real estate site selection capitalizes on ample s
Slide 14: Growth Strategies
GROWTH STRATEGIES
Slide 15: Significant Opportunity for Growth
Significant Opportunity for Growth 11 Grow our store base – Opportunity to expand our store base by ~650 units to 950 units, ~3.1x current store base (1) 22 Increase our offerings of great bargains – Enhance product offerings with expanded access to bargains as we grow 3 Leverage and expand Ollie’s
Slide 16: Tremendous White Space Opportunity
1 Tremendous White Space Opportunity Proven portability of new store model Tremendous White Space Potential(1) Entered 7(1) new states since IPO and opened 117 net new stores(3) Expanded contiguously to leverage brand awareness and marketing investments 18 RI 1 15 Our stores are supported by t
Slide 17: Increase Our Offerings of Great Bargains
2 Increase Our Offerings of Great Bargains Increased visibility from IPO and geographic expansion Increased inbound calls on deals Increased buying power and scale from growth Increased ability to buy directly from vendors Strict internal margin goals and deal criteria Continued focus on
Slide 18: Leverage and Expand Ollie's Army
3 Leverage and Expand Ollie’s Army Recruit new members to Ollie’s Army, Reward Signup existing members and build brand awareness Army ranks and mobile app initiated Q3 of 2018 Increase frequency of store visits and Mailers / Promotions spending Utilize data driven targeted marketing Embark
Slide 19: Financial Review
FINANCIAL REVIEW
Slide 20: Compelling Sales Growth
Compelling Sales Growth ($ Millions) Net Sales $1,077 $1,000 $890 $848 $800 $762 $720 $638 $600 $541 $400 $200 $0 (1) 2013 2014 2015 2016 2017 Q3 Q3 YTD17 YTD18 Note: Calculations of compound annual growth rate (“CAGR”) from fiscal year 2013 to fiscal year 2017 presented herein are calculated beginn
Slide 21: Compelling Comp Sales Growth
Compelling Comp Sales Growth Comparable Store Sales 7% 6.0% 6% 5% 4.4% 4% 3.3% 3.6% 3.2% 3% 2.8% 2% 1.1% 1% 0% 2013 2014 2015 2016 2017 Q3 YTD17 Q3 YTD18 21
Slide 22: Compelling EBITDA Growth
Compelling EBITDA Growth ($ Millions) Adjusted EBITDA $200 $180 $155 $160 $140 $121 $120 $116 $94 $96 $100 $75 $80 $63 $60 13.6% 14.4% 13.4% 13.7% $40 11.7% 11.8% 12.3% EBITDA Margin $20 $0 (1) 2013 2014 2015 2016 2017 Q3 Q3 YTD17 YTD18 Note: Calculations of compound annual growth rate (“CAGR”) from
Slide 23: Holiday Sales Results and Annual Outlook Update
Holiday Sales Results and Annual Outlook Update Sales increase +16.6% and Comparable store sales increase of +7.1% for Holiday Period (1) (1) Fiscal year 2018 outlook: Updated Outlook Prior Net Sales ~ $1,245M $1,226M - $1,231M Comp Sales ~ 4.4% 3.0% to 3.5% Adjusted Net Income ~ $1.81 $1.74 to $1.7
Slide 24: Formula For Success
Formula For Success Highly experienced and disciplined teams “Good Stuff Cheap”—Ever Tremendous white space changing product assortment opportunity at drastically reduced prices Distinctive brand and Strong and consistent store engaging shopping model built for growth experience Extremely loyal “Oll
Slide 25: Appendix
SEQ Legain APPENDIX
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ Thousands) Reconciliation of Net Income to Adjusted EBITDA Q3 YTD Fiscal Year 2018 2017 2017 2016 2015 2014 2013 Net Income $85,119 $57,540 $127,594 $59,764 $35,839 $26,915 $19,541 Interest Expense, Net $1,188 $3,601 $4,471 $5,935 $15,416 $18,432 $17,493 Loss on Ext
Slide 27: ICR Conference January 2019
SEQ began ‘GOOD STUFF CHEAP’ ICR Conference January 2019
Ollie's Bargain Outlet Holdings — ICR Conference 2019 on 6ix