Srx Health Solutions, Inc. · AMEX:SRXH
Srx Health Solutions — Better Choice — Q3 2020 Earnings Presentation
16 slides from Srx Health Solutions's earnings presentation, Nov 18, 2020
Slide 1: Third Quarter 2020 Earnings Presentation
Third Quarter 2020 Earnings Presentation November 18, 2020
Slide 2: Safe Harbor
Safe Harbor This presentation contains information, statements, beliefs and opinions which are forward-looking, and which reflect current estimates, expectations and projections about future events, referred to herein and which constitute “forward-looking statements” or “forward-looking information”
Slide 3: BTTR Investment Highlights
BTTR Investment Highlights ▪ Approximately 56% of BTTR 3Q20 net sales are concentrated in E- Commerce and Direct-to-Consumer. Both of these channels are BTTR Well Positioned in projected to grow at 20%+ annually High Growth Channels ▪ Primary SKUs are canine and feline food, treats and supplements i
Slide 4: Business Profile & Key Growth Areas
Business Profile & Key Growth Areas ▪ 32% of net sales in 3Q20 E-Commerce ▪ Primary customers are Amazon and Chewy ▪ Covid-19 has accelerated the shift to online pet purchasing ▪ 27% of net sales 3Q20, primarily in Asia-Pacific International ▪ China the primary growth driver, expected to be 30%+ ann
Slide 5: Public Market Scarcity – Equity Value Creation
Public Market Scarcity – Equity Value Creation (000’s) (OTCQB: BTTR) (000’s) (NASDAQ: FRPT) E-Commerce, Direct-to-Consumer, Pet Key Channels Grocery & Mass Specialty, International, Grocery & Mass Product Attributes Premium Natural Whole Meat Super Premium Refrigerated Halo: Canned & Kibble Products
Slide 6: Brand Overview
2G OR) 1 RUD Brand Overview
Slide 7: Two Brands, One Company: Halo & TruDog
Two Brands, One Company: Halo & TruDog Halo Overview TruPet Overview ▪ Halo is a 30-year-old, premium, natural pet food brand based ▪ TruPet is a 7-year old brand based in Tampa, FL that produces in Tampa, FL that is uniquely differentiated from its and markets raw freeze-dried and dehydrated food,
Slide 8: Differentiated Product Offering
Differentiated Product Offering Halo and TruDog produce unique products using ingredients that are better for pets Merrick® Natural Wellness® Halo® Holistic TruDog Feed Blue™ Life Classic Real Balance® Complete Chicken and Me Turkey Protection Chicken + Original Ultra® Health® Adult Chicken Liver Gr
Slide 9: International Growth Strategy
International Growth Strategy Better Choice has experienced a significant growth in international sales, with a current focus on key Asian markets such as China, Korea and Japan ▪ Growth in Asia is fueled by increasing levels of economic financial status and demand for premium, western manufactured
Slide 10: Actionable Near-Term Growth Opportunities
Actionable Near-Term Growth Opportunities ▪ Fastest growing channel in pet food, especially due to Covid-19 E-Commerce ▪ Prioritizing with Amazon and Chewy ▪ Recent advertising using Amazon Media Group has cross-channel impact ▪ Large and growing natural pet market in Asia and other markets ▪ Succes
Slide 11: Financials
Financials 10
Slide 12: BTTR Financial Highlights
BTTR Financial Highlights Strong Growth in ▪ E-Commerce net sales of ~$11mm YTD20 Accelerating Channels ▪ Int’l net sales of ~$7.4mm YTD20 Inflected to near- breakeven Pro Forma ▪ 3Q20 Pro Forma Adjusted EBITDA of ($0.3mm) Adjusted EBITDA Strong Insider ▪ Recent $21.7mm equity raise included more th
Slide 13: Non-GAAP Measures
Non-GAAP Measures Non-GAAP Measures Better Choice Company defines Adjusted EBITDA and Pro Forma Adjusted EBITDA as EBITDA further adjusted to eliminate the impact of certain items that we do not consider indicative of our core operations. Adjusted EBITDA is determined by adding the following items t
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Better Choice Company Inc. Reconciliation of Net Loss to EBITDA, Adjusted EBITDA and Pro Forma Adjusted EBITDA Nine Months Ended Three Months Ended Three Months Ended Three Months Ended ($ in 000’s) September 30, September 30, June 30, March 31, 2020 2020 2020 2020 Net
Slide 15: 3Q20 Income Statement -> Adjusted EBITDA Reconciliation
3Q20 Income Statement -> Adjusted EBITDA Reconciliation The following tables present a reconciliation of Loss from operations, the closest GAAP financial measure, to Adjusted Loss from operations for each of the periods indicated. Better Choice Company Inc. Reconciliation of Loss from Operations to
Slide 16: YTD20 Income Statement -> Adjusted EBITDA Reconciliation
YTD20 Income Statement -> Adjusted EBITDA Reconciliation Adjusting for Non-Cash and Non-Recurring Charges, YTD20 Pro Forma Adjusted EBITDA was ($843k) Nine Months Ended ($ in 000’s) September 30, 2020 Non-Cash Non-Recurring Adjusted Net sales $ 33,302 $ 33,302 Cost of goods sold 20,567 (894) A 19,67