Pet Valu Holdings Ltd. · TSX:PET
Pet Valu — Q4 2022 Earnings Presentation
15 slides from Pet Valu's earnings presentation, March 2023
Slide 1: Q4 2022 Financial & Operating Review
Q4 2022 Financial & Operating Review For 13 week period ended Dec. 31, 2022
Slide 2: Disclaimers
Disclaimers Forward-Looking Information This presentation contains forward-looking information. Forward-looking information is provided as of the date of this presentation and is based on management’s opinions, estimates and assumptions in light of its experience and perception of historical trends,
Slide 3: Today's Presenters
Today’s Presenters Richard Maltsbarger President & Chief Executive Officer Tammy Nunez VP, Financial Planning & Analysis (Acting in the capacity of Chief Financial Officer) This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted or redistrib
Slide 4: Our Mission
Our Mission To be Canada’s preferred pet retailer delivering the products, care, expertise, and memorable moments that devoted pet lovers want…locally in stores and everywhere online. This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted o
Slide 5: Our Long-Term Growth Formula
Expand Our Our Long-Term 1 Store Network Growth Formula Opportunity to grow store count to 1,200+ Drive Same-Store Underpinned Sales Growth by the 2 Resilient & Build on proven strategies & growing digital channels Growing Canadian Pet Industry Enhance Operating Margins 3 Leverage investments in mod
Slide 6: Q4 2022 Highlights
+12% 16 Same-Store Sales New Store Q4 2022 Growth (traffic +4.6%; basket +6.9%)1 Openings (48 opened in 2022) Highlights +19% 15 Revenue Renovations, Expansions Growth or Relocations (to $266.0 million) (35 completed in 2022) +11% +67% Adjusted EBITDA Growth in Growth Quarterly Dividend (to $59.3 mi
Slide 7: Looking Ahead
Looking Ahead Expand Our Drive Same-Store Enhance Operating 1 Store Network 2 Sales Growth 3 Margins • Open 40-50 new stores in 2023 • Exciting merchandising • Targeted actions to leverage prior innovation coming in both investments and offset external • Good progress on filling new consumables & ha
Slide 8: Q4 2022 Key Financial Metrics
Q4 2022 Key Financial Metrics Q4 2022 vs. PY2 Drivers • Strong SSSG, 48 new stores in LTM and Chico acquisition System-Wide Sales $360.6 +25.0% • Excluding Chico, System-Wide Sales up 15% Same-Store Sales Growth +11.8% --- • Traffic1 +4.6% and basket1 +6.9% Revenue $266.0 +19.3% • Excl. Chico, reven
Slide 9: Q4 2022 Key Financial Metrics
Cash Free Cash Flow Q4 2022 $63.0M $25.0M Key Financial (plus $130M revolver) ($50.2M YTD) Metrics Long-term Debt Net Leverage Ratio1 $337.8M 1.7x (-2% since Q4 2021) (vs. 2.1x at Q4 2021) Inventory Net Capital Expenditures $118.4M $19.8M (+29% vs. Q4 2021) ($37.2M YTD) 1Net Leverage Ratio = Net Deb
Slide 10: 2023 Outlook
2023 2023 Growth from Outlook FY 2022 Outlook Same-Store Sales Growth +7-10% --- New Stores Openings 40-50 +5-7%1 Revenue $1,050-1,075M +10-13% Adjusted EBITDA $230-237M +7-10% Adjusted Net Income $1.60-1.66 +1-4% per Diluted Share Net Capital Expenditures $60M +$23M 1 Represents growth in total sto
Slide 11: Appendix
Appendix This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted or redistributed, in whole or in part, without the prior written consent of Pet Valu Canada Inc. © 2023 Pet Valu Canada Inc. 11
Slide 12: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Quarters Ended Dec. 31, 2022 Jan. 1, 2022 (13 weeks) (13 weeks) Net income $25,881 $26,741 (1) Represents discrete, project-based implementation costs associated with new information technology systems and discrete Software-as-a-Service (“SaaS”) arrangements for tra
Slide 13: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Quarters Ended Dec. 31, 2022 Jan. 1, 2022 (13 weeks) (13 weeks) Net income $25,881 $26,741 (1) Represents discrete, project-based implementation costs associated with new information technology systems and discrete SaaS arrangements for transformational initiati
Slide 14: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Quarters Ended Dec. 31, 2022 Jan. 1, 2022 (13 weeks) (13 weeks) Cash provided by operating activities $46,940 53,091 Cash (used in) provided by investing activities (11,429) (6,018) Repayment of principal on lease liabilities (7,371) (11,473) Interest paid on lease l
Slide 15: Thank You
Thank You Contact Us: investors@petvalu.com (289) 806-4559 This presentation and any information contained herein may not be used, copied, reproduced, published, transmitted or redistributed, in whole or in part, without the prior written consent of Pet Valu Canada Inc. © 2023 Pet Valu Canada Inc. 1