Upload
phuc-vu-hong
View
219
Download
0
Embed Size (px)
Citation preview
7/27/2019 VSI April 2013
1/21
1
April 2013
NYSE: VSI
7/27/2019 VSI April 2013
2/21
2
Certain statements in this presentation and responses to various questions may constitute forward-looking statementsrelating to Vitamin Shoppe, Inc. (the Vitamin Shoppe or the Company), which include information concerning theCompanys plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures,financing needs and other information that is not historical information. All forward-looking statements, including, withoutlimitation, the Companys examination of historical operating trends, are based upon the Companys current expectationsand various assumptions and involve risks and uncertainties that could cause the Companys actual results to differmaterially from those set forth in the forward-looking statements. Factors that could cause the Companys results to differmaterially from current expectations include, but are not limited to: The strength of the economy, changes in the overalllevel of consumer spending, the performance of the Companys products within the prevailing retail environment, traderestrictions, political or financial instability in countries where the Companys goods are manufactured, postal rateincreases, paper and printing costs, availability of suitable store locations at appropriate terms and other factors which areset forth in the Companys filings with the U.S. Securities and Exchange Commission.
Non-GAAP Financial Measures
This presentation contains references to the non-GAAP financial measures Store-EBITDA and Store EBITDA margin. TheCompany believes these measures are helpful when used: (i) as indicators of the Company's operating performancebecause they assist us in comparing our operating performance on a consistent basis, as they remove the impact of itemsnot directly resulting from our Company-owned store operations; (ii) for planning purposes, including the preparation of ourinternal operating budget; and (iii) as measurements in assessing the performance of existing store operating income andcomparative operating performance. Our definition of Store-EBITDA is net income, plus certain parent level expenses suchas (a) interest expense, net; (b) provision for income taxes; (c) depreciation and amortization; (d) impairment of long-lived
assets; and (e) general and administrative expenses. Store-EBITDA margins are calculated by dividing Store-EBITDA by netsales. Store-EBITDA, and Store-EBITDA margins are not measurements determined in accordance with GAAP and shouldnot be considered in isolation or as an alternative to income (loss) from operations or net income (loss) as indicators offinancial performance. Each non-GAAP financial measure used as presented may not be comparable to other similarlytitled measures used by other companies.
Safe Harbor Statement
7/27/2019 VSI April 2013
3/21
3
About UsLeading Health & Wellness Retailer
High growth retailer in the fastgrowing vitamins, minerals &supplements industry.
19 consecutive years of positivecomparable sales growth.
2012 sales of $951mm & operatingincome of $99mm
Proven, differentiated storeformat.8,000 SKUs/store 18,000 total.
Attractive value proposition.
Significant growth opportunities.
7/27/2019 VSI April 2013
4/21
4
About UsConsistent Performance and Growth
Comparable Store Sales Revenue ($mm)
$538$602
$675$752
$841
$951
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Operating Income ($mm) Operating Margin
6.1% 5.9% 6.1%
7.9%
9.4%10.5%
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
$33 $36$41
$60
$79
$99
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
6.2% 6.2%5.2%
7.1% 7.4%8.2%
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
(2011 adjusted, 52 week)
7/27/2019 VSI April 2013
5/21
5
TORONTO,
CANADA2
Concept Proven Nationwide
577 US stores atDecember 31, 2012
Stores located in 42
states, District ofColumbia and PuertoRico
Concept has proven
successful across theU.S.
First 2 Canadian storesopened December2012
National Retail Footprint*
UT
WA
OR ID
NV
CA
AZ
CO
TX
FL
ALSC
NCTN
GA
VA
WIMI
ILOHIN PA
NY
MA
CT
NJDE
MD
DC
VT
RIKS
MO
MN
NM
KY
NH
HI
IA
1
ME
PUERTO RICO
2
NE
2
2
LA
22
1
18
64
18
9
273
15
16
63
8
171
9
8
45
199
33
126
10
3
71
210
36
4
1
1
3 5
7
3
5
4
6
3
4
OK
*Includes 31 Super Supplements stores in the Pacific northwest
7/27/2019 VSI April 2013
6/21
7/27/2019 VSI April 2013
7/21
7
Favorable Product Mix Relative to Industry
We generate approximately 65% of our net sales in sports nutrition andspecialty supplements, two of the fastest growing categories
VMS Industry
9% 8% 5% 5% 8% 5%12E-20E
Industry CAGR:
Source: 2012 Nutrition Business Journal
36%
29%
14%
11%
7%
3%
12%
19%17%
34%
10%8%
Sports
Nutrition
Specialty
Supplements
Herbs /
Botanicals
Vitamins Meal
Replacement
Minerals
Fastest growing segments
7/27/2019 VSI April 2013
8/21
8
Fragmented IndustryWe Are Gaining Share
0.0% 10.0% 20.0% 30.0% 40.0%
Vitamin World
Vitamin Shoppe
GNC
Whole Foods
Mass Market
Specialty
Supplements Market Share
4 largest specialty Chains:
Source: 2012 Nutrition Business Journal
36.5%
28.8%
5.0%
3.7%
2.9%
0.7%
7/27/2019 VSI April 2013
9/21
7/27/2019 VSI April 2013
10/21
7/27/2019 VSI April 2013
11/21
11
Loyal and Growing Customer Base
We attract high-quality, loyalcustomers who proactively managetheir long-term health and wellnessthrough the use of supplements
Customers earn points across allchannels redeemable for future
product purchases Platinum customers monitored
monthly
Robust database andsophisticated data-modeling leadsto more relevant segmentation
Healthy Awards Overview
Over 5.2mm active Healthy Awards
members at 4Q12
Approximately 55 new customers per
store enroll in the program every
week
Double-digit percentage growth in
the number of top customers in 2012
87% of sales driven by Healthy
Awards customers
Healthy Awards Statistics
7/27/2019 VSI April 2013
12/21
12
Highly Refined Real Estate Strategy
Attractive stand-alone or end-cap locations No in-mall locations
Not dependent on co-tenants
Highly visible, high traffic locations with easy access
Approximately 2/3 of our new customers are obtained as aresult of seeing one of our stores
Attractive lease portfolio with extension opportunities
2012 open small market stores
First 2 stores open in Canada
Proprietary models drive site selection with predictive new storeperformance
7/27/2019 VSI April 2013
13/21
13
Attractive Value Proposition
We offer competitive pricing across all product categories
the Vitamin Shoppe prices on average are: 10-15% lower than specialty retail
20-25% lower than drug stores
Slightly above the mass market
Marketing Free shipping for online orders over $25
Sophisticated email marketing segmentation based on purchasing habits
Rewards programEveryday value pricing Promotion
7/27/2019 VSI April 2013
14/21
14
Growth Opportunities
Expand US Store Base
Drive Profitable e-Commerce Sales
Accelerate New Product Innovation
Pursue International Opportunities
Long-Term Target
Annual New Store Openings 50 - 60
Annual Comparable Store Sales Growth Mid-single digits
7/27/2019 VSI April 2013
15/21
15
Significant US New Store Potential
The U.S. market can support up to 900 Vitamin Shoppe
stores under the current prototype1~50 new stores planned for 2013
31 acquired from Super Supplements
Small market prototype test expands store potential
234275
306341
401438
484528
579
900
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E Future
potential
41 32 36 62 39 47Stores
opened2 61
(1) Projected store potential based on analysis conducted by independent third party and based on average size of 3,000 square feet(2) Stores opened figure reflects gross store openings. 2013E includes 31 stores from Super Supplements acquisition
48 54 81
660
7/27/2019 VSI April 2013
16/21
16
Embedded Growth As Stores Mature
Existing Store Maturity Profile
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
< 1 yr. 1 yr. 2 yrs. 3 yrs. 4 yrs. 5 yrs.
Number of stores
in class year54 48 47 39
Salesperstore(
$000s)
188 immature stores(1) Assumes half-year convention(2) Cumulative history of stores in the chain
1
7/27/2019 VSI April 2013
17/21
17
Compelling New Store Economics
Avg Store Size 3,000 Square Feet
New StoreInvestment
Current Model
Net Build Out $220,000
Inventory 0
Total Initial Investment $220,000
UnitEconomics
Year One Year Four
Average Sales/Sq ft $260 $427
Sales Growth(1) High SD
Store-Level EBITDA 0.0% 16.6%
Cumulative Cash-on-Cash Return 117.7%
Payback Period 3 years
(1) Sales growth from preceding year.
7/27/2019 VSI April 2013
18/21
18
E-commerce Strategy & Opportunity
Provide customers with integrated multi-channel experience
Continue investing in e-commerce channel
Replicate the in-store experience
Continue to deliver consistent revenue and profit growth Shipping to direct customers from west coast distribution center
Free shipping on orders of $25
Customized, targeted email campaigns
Strategy
VMS industry e-commerce channel growing in low double digits
Increase market share in highly fragmented industry
Opportunity
7/27/2019 VSI April 2013
19/21
19
Self Funded GrowthStrong Balance Sheet & Cash Flow Generation
Annual Capital Expenditures ($mm) Operating Cash Flow ($mm)
$55
$77 $78
FY2010 FY2011 FY2012
Strong Financial PositionSelf Funded Growth
$18
$25
$31
$47
FY2010 FY2011 FY2012 FY2013E*
Growth in Capital Expenditures Primarily Driven by Acceleration inNew Store Growth and New Distribution Center
Cash Position of $81 Million as of 4Q 2012. No Debt Strong Liquidity Supported by Undrawn Revolving Credit Facility Expect to Continue to Organically Fund Growth Needs and
Generate Free Cash Flow
* mid-point of guidance
7/27/2019 VSI April 2013
20/21
20
Recap - Focus on Growth
Leading specialty retailer in a fast-growing sector Compelling store concept
Relationships with customers span multiple channels
Large and growing loyal customer base
Positioned for continued rapid growth Proven new store opportunity, with strong unit economics
Embedded growth as stores mature
Accelerating investment in e-commerce business
Operational excellence History of consistent strong operational and financial results
Strong financial position Company is debt free
Growth funded with internally generated funds
Consistent performance with superior growththrough economic cycles
7/27/2019 VSI April 2013
21/21
21
2013 Outlook(Provided February 26, 2013Includes Super Supplements acquisition)
~50 newstores
$45 - $50 mm
$28 mm
Mid SingleDigits
Store (unit)growth
Capitalexpenditures
Comparable storesales growth
Depreciation