Pet Valu Holdings Ltd. · TSX:PET
Pet Valu — Q3 2021 Earnings Presentation
15 slides from Pet Valu's earnings presentation, Oct 2, 2021
Slide 1: Q3 2021 Financial & Operating Review
Q3 2021 Financial & Operating Review For 13 weeks ended October 2, 2021
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: Q3 2021 Highlights
Q3 2021 Highlights +20.3% +39.4% $0.39 Same-Store Sales Adjusted EBITDA Adj. Net Income/ Growth Growth Diluted Share (+32.7% 2-yr stack) (to $50.7M) 6 Click-and-Collect Now Live in Initiated Quarterly Dividend at New Stores All Stores $0.01/Share (18 YTD) Note: Adjusted EBITDA and Adjusted Net Incom
Slide 7: Looking Ahead
Looking Ahead Expand Our Drive Same-Store Enhance 1 Store Network 2 Sales Growth 3 Operating Margins On track to open 28-30 new Enhancing digital experiences Continuing investments to drive stores in 2021 through website & order long-term growth and leverage management platform upgrades 2022
Slide 8: Q3 2021 Key Financial Metrics
Q3 2021 Key Financial Metrics Q3 2021 vs. PY Drivers System-Wide Sales $258.6 +24.5% • Strong SSSG and 30 net new stores in LTM Same-Store Sales Growth +20.3% nm • Traffic* +12.9% and basket* +6.6% 2-yr Same-Store Sales Growth +32.7% nm Revenue $200.7 25.6% • Growth in-line with system-wide sales Gr
Slide 9: Q3 2021 Key Financial Metrics: Cash, Leverage, Free Cash Flow
Q3 2021 Key Financial Metrics Cash Net Leverage Ratio1 Free Cash Flow $23.3M 2.4x $46.8M plus $130M available down from 2.9x in Q2 +133% vs. Q3 2020 on revolver Inventory Long-term Debt Net Capital Expenditures2 $88.1M $347.4M $11.7M(YTD) elevated safety stock down $42M from Q2 on pace for ~$20M in
Slide 10: 2021 Guidance
2021 Guidance Updated Prior Guidance Guidance SSSG1 >15% >10% New Stores 28-30 25-30 Revenue ~$765M ~$730M Adjusted EBITDA ~$177M ~$158M Adjusted Net Income ~$69M ~$56M (Adjusted Net Income/Diluted Share) (~$0.97/share) (~$0.78/share) Capital Expenditures2 ~$20M ~$20M 1 SSSG = Same-Store Sales Growt
Slide 11: Thank You
Contact Us: Thank You [email protected] (289) 806-4559 11
Slide 12: Appendix
Appendix petvalu Pa leys Tisol We Totalpet 12
Slide 13: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA 13 weeks 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 Oct.
Slide 14: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income 13 weeks 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. Oct. 2, 2021 Sep. 26, 2020 (2) Represents discrete, project-based imple
Slide 15: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow 13 weeks ended Oct. 2, 2021 Sep. 26, 2020 Cash provided by operating activities $56,441 $29,271 Cash provided by investing activities 4,575 4,227 Repayment of principal on lease liabilities (11,361) (10,204) Interest paid on lease liabilities (2,888) (2,855) Notes re