Pet Valu Holdings Ltd. · TSX:PET
Pet Valu — Q4 2021 Earnings Presentation
16 slides from Pet Valu's earnings presentation, March 2022
Slide 1: Q4 2021 Financial & Operating Review
Q4 2021 Financial & Operating Review For 13 weeks ended January 1, 2022
Slide 2: Disclaimers
Disclaimers Forward-Looking Information This presentation contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to our future financial outlook and
Slide 3: Today's Presenters
Today’s Presenters Richard Maltsbarger Jim Grady President & Chief Executive Officer Chief Financial Officer 3
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 4
Slide 5: Our Long-Term Growth Formula
Our Long-Term Growth Formula Expand Our Drive Same-Store Enhance 1 Store Network 2 Sales Growth 3 Operating Margins Opportunity to grow store Build on proven strategies Leverage investments count to 1,200+ & growing digital channels in modernizing systems Underpinned by the Resilient & Growing Canad
Slide 6: Q4 2021 Highlights
Q4 2021 Highlights +16.7% $223M 23.9% Same-Store Sales Revenue Adjusted EBITDA Growth (+18.6%1 vs. Q4 2020) Margin (+34.7% 2-yr stack) (+40 bps vs. Q4 2020) 12 2M Raised Quarterly New Stores Active Loyalty Dividend to Openings Members $0.06/Share (30 in 2021) (end of Q4 2021) 1 Excludes impact of 14
Slide 7: Acquisition of Les Franchises Chico ("Chico")
Acquisition of Les Franchises Chico (“Chico”) • Quebec’s largest pet specialty franchisor with 66 locations across the province • Long heritage serving Quebec, founded in 1983 About Chico • Store size, AUV, and product mix similar to Pet Valu • Limited wholesale distribution and private label presen
Slide 8: Looking Ahead
Looking Ahead Expand Our Drive Same-Store Enhance 1 Store Network 2 Sales Growth 3 Operating Margins Open 30-45 new stores in Optimizing omni-channel Continuing investments to drive 2022, inclusive of 5-10 under process and experience to drive long-term growth and leverage the Chico banner in
Slide 9: Q4 2021 Key Financial Metrics
Q4 2021 Key Financial Metrics Q4 2021 vs. PY Drivers System-Wide Sales $288.5 +18.2%1 • Strong SSSG and 28 net new stores in LTM Same-Store Sales Growth +16.7% nm • Traffic2 +10.8% and basket2 +5.4% 2-yr stacked Same-Store Sales Growth +34.7% nm Revenue $223.1 +18.6%1 • Growth in-line with system-wi
Slide 10: Q4 2021 Key Financial Metrics: Cash, Leverage, Free Cash Flow
Q4 2021 Key Financial Metrics Cash Net Leverage Ratio1 Free Cash Flow $50.1M 2.1x $35.3M plus $130M available vs. 2.4x in Q3 2021 +195% vs. Q4 2020 on revolver Inventory Long-term Debt Net Capital Expenditures2 $91.7M $345.5M $20.3M(YTD) elevated safety stock in-line with expectations levels since Q
Slide 11: 2022 Outlook
2022 Outlook 2022 Growth from Outlook FY 2021 SSSG1 6-9% nm New Stores 30-45 +5-7% Revenue $845-870M +9-12% Adjusted EBITDA $187-194M +3-6% Adjusted Net Income $1.37-1.44 +34-41% per Diluted Share Capital Expenditures2 $20-25M +$0-5M 1 SSSG = Same-Store Sales Growth. 2 Net of (i) proceeds on disposa
Slide 12: Thank You
Contact Us: Thank You [email protected] (289) 806-4559 12
Slide 13: Appendix
Appendix petvalu Ping’ pysleys Tel We Totalret Ehict 3 Pets &
Slide 14: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Quarters Ended (1) Represents management fees paid to entities affiliated with Roark Capital Management, LLC ("Roark"). Concurrent with the closing of Pet Valu Holdings Ltd.'s (the "Company") initial public offering (the "Offering"), the Company terminated the Jan.
Slide 15: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Quarters Ended (1) Represents management fees paid to entities affiliated with Roark. Concurrent with the closing of the Offering, the Company terminated the management agreement with Roark. Jan. 1, 2022 Jan. 2, 2021 (2) Represents discrete, project-based implem
Slide 16: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Quarters Ended Jan. 1, 2022 Jan. 2, 2021 (13 weeks) (14 weeks) Cash provided by operating activities $53,091 $29,694 Cash (used in) provided by investing activities (6,018) (2,735) Repayment of principal on lease liabilities (11,473) (11,903) Interest paid on lease l