Sportsman's Warehouse Holdings, Inc. · NASDAQ:SPWH
Sportsman's Warehouse — ICR Conference 2016
24 slides from Sportsman's Warehouse's conference presentation, Jan 11, 2016
Slide 1: ICR Conference Presentation
Slide 2: Forward Looking Statements & Non-GAAP Measures
Forward Looking Statements & Non-GAAP Measures In this presentation, we will make statements about our future plans and prospects, including statements about our financial position, financial targets, business strategy and store opening pipeline, as well as statements about trends relating to the sa
Slide 3: Our mission
Our mission is to provide outdoor enthusiasts, casual users, and first-time participants with quality brand-name hunting, fishing, camping and shooting merchandise within a convenient shopping environment, serviced by passionate, knowledgeable associates, to create a memorable outdoor experience.
Slide 4: High-growth outdoor sporting goods retailer
High-growth outdoor sporting goods retailer One-stop shopping experience with the right gear at the right time Tailored merchandise and in-store events to meet local conditions and demand Passionate associates, highly knowedgeable about local market conditions Largest outdoor specialty store base in
Slide 5: Large, Growing and Highly-Fragmented Outdoor Sporting Goods Industry
Large, Growing and Highly-Fragmented ey NG) _ Outdoor Sporting Goods Industry at. Industry size estimated to be in excess of $50 billion Sportsman's Warehouse is one of a select number of pure play outdoor specialty retailers Mom & Pop retailers estimated to represent 65% of industry Participation r
Slide 6: Unique Customer Value Proposition
Unique Customer Value Proposition FORTSHANG) 9 GANDER Bea of West All South East Midwest All Concentration Us Stores! eB 8 87 160 19 NA Western Penetration of 65 19 10 2 None NA Stores") Depth of ae ote a a een Selection : Z PRMPMEEINE Convenionce/ —Destination/ __Destination/—Destination/ Destinati
Slide 7: 300+ Store Opportunity with Attractive Store Economics
300+ Store Opportunity with Attractive Store Economics Low Initial Investment per Store) New Store Economics seater r Including initial 1 Excluding initial inventory investment { inventory investment Hngato 22 882 28 eT ae) ceo LB eH Average New Store Payback Period (years) Net Investment $2.0 milli
Slide 8: Investment Highlights
Investment Highlights C) Differentiated Outdoor Specialty Retail Experience t 2 ) Comprehensive, Locally Relevant Product Assortment and Merchandising Strategy () Disciplined and Adaptable Real Estate Strategy () Significant White Space Opportunity () Passionate and Experienced Management Team with
Slide 9: Differentiated Outdoor Specialty Retail Experience
Differentiated Outdoor Specialty Retail Experience Differentiated Shopping Experience and Engaging SEEN and Highly Knowledgeable Sales Associates = Conveniently Located Stores with Easy-In, Easy-Out Fees) Access = Locally Relevant Features = Store Layout is Easy to Navigate with Wide Aisles and Clea
Slide 10: Comprehensive, Locally Relevant Product Assortment and Merchandising Strategy
Comprehensive, Locally Relevant Product Assortment and Merchandi Local Marketing Focus Effective “Localized’ Regional inserts Billboards Kenetoxk = Marketing budget is ~1% of sales In-Store and Off-Site Events Digital / E-Commerce Strategy | le = Ei vw = ~13 million total visitors to website during
Slide 11: Disciplined, Analytics-Driven Real Estate Strategy
3 Disciplined, Analytics-Driven Real Estate SPORTSMAN ) _ Strategy Maximizes Coverage and Returns Rigorous Site Selection Process = Analyze market characteristics and economic viability with local real estate firms and internal committee — Density of hunting / fishing license holders = Abundance of
Slide 12: Significant White Space Opportunity
. Significant White Space Opportunity te a Significant White Space Opportunity Relative White Spacet*) Number of Sportsman's Warehouse stores { om” Lone erm (UA GEE QB) meee anes om gto New Store Pipeline = 9-12 new stores expected in FY 2016 = Plan to grow store base at a rate of greater than 10% a
Slide 13: Significant White Space Opportunity: Store Locations
Significant White Space Opportunity Store Locations — Sportsman’s Warehouse © spotsmse's Warenouse oeston © Sportsmans Warehouse smaurceaiocaten 12 POOR ee Tho) kA A tor So,
Slide 14: Significant White Space Opportunity: Available Markets
nificant White Space Opportunity. r Available Markets ee PORTSMAN', Profitably Serve Small and Large MSAs with Attractive Economics Store Distribution MSA Current Sportsman’s: Population Size Warehouse Stores e Less than 100k 12 100k - 250k 16 f oO a fa] 280k - 500k 10 >} >1,000,000 500,000 - 250,00
Slide 15: Significant White Space Opportunity by Region
Significant White Space Opportunity ar ms Available Markets 1,000,000 500,000- 250,000- 100,000- 75,000. 0,000- «9,999 999,999 499,999 249,999 99,999 74,999 S| 4 msportsman's ‘a Competitors 1mWhite Space (MSA2> 100,000) mt White Space (MSA < 99,999) e Region: Midwest 4 1,000,000 $00,000- 250,000- 10
Slide 16: Passionate and Experienced Management Team with Proven Track Record
Passionate and Experienced Management Team with Proven Track Record % " Passionate and Experienced Management GERD Team with Proven Track Record Deak. woke ) "Directed successful consumer and E-Commerce retal companies including Eastbay, Cornerstone: ohn Schaefer Chie! Executive Offeor 8 ‘Grands end
Slide 17: Recent events relating to firearms compared to 2012
Recent events relating to firearms as compared to 2012 2012 2015 Significant infiux of first ime buyers Higher proportion of current firearm owners as buyers Focus on any available firearm Focus more on handguns and broad range of long guns Heavy and continuous demand for ALL calibers of ammunition
Slide 18: Financial Highlights
Financial Highlights 7 POR CROP Sho iver ones A.
Slide 19: Historical Financial Overview
S S . . . PORTSMAN? Historical Financial Overview Se Net Sales and Store Count ‘Same Store Sales() (increase over por year) 1 5.4% ! ! 1 3.1% 1! 1 ! am sam Lom 1 = Pra Fz v8 FY Gross Profit Adjusted EBITDA®) (Sinmiiors) Stamens sue 388 Fv2oie | FY20t9 FY 2014 fy aoayro by isy re sro er ta ssecpat om
Slide 20: Capitalization, Capital Expenditures and Free Cash Flow
Capitalization, Capital Expenditures and Free ey NG) Cash Flow Se Capitalization Q3 2015 10/34/2015 (Sin miions) EBITDA ABL Working Capital Facility 49.7 O.7K Term Loan, Net of Discount 157.0 2.3K Total Debt $206.7 3.0x Capital Expenditures Free Cash Flow®) 6 inmitions) ($n milions) $525 $302 $458 $
Slide 21: Appendix: GAAP Reconciliations
Appendix: GAAP Reconciliations POR CROP So iver ones A.
Slide 22: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow Fiscal Year Ended January 29, January 28, February 2, February 1, January 31, October 34, 2011 2012 2013, 2014 2015 2015 (8) (Gin thousands) Net Income $ 5,244 $ 33,604 $ 28,074 $ 24,750 $ 13,784 $ 19,554 Plus: Interest expense 5,676
Slide 23: GAAP and Non-GAAP Measures (Unaudited)
GAAP and Non-GAAP Measures (Unaudited) (02 SAN) CeO erates wenres piety Nicene, UME eat ae See ae ee coe Bas i : 2 aa teen emeae : com ; a Ee d Rqiated erate Kon oearlioe 7 uae aes Aerie brane ieics ace A RAY eed : : : Be Litigation accrual reversal (2) * * (4,000) a tt eke ie : He : Less tax benefi
Slide 24: GAAP and Non-GAAP Measures (Unaudited): Key Notes and Assumptions
GAAP and Non-GAAP Measures (Unaudited) Key Notes and Assumptions (1) As a result of the completion of our initial public offering and pursuant to the terms of the employment agreements with our executive officers, we paid $2.2 million in bonuses to our executive officers. (2) On March 9, 2015, a jur