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    LESL   US5270641096

LESLIE'S, INC.

(LESL)
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Delayed Nasdaq  -  04:00 2022-08-09 pm EDT
15.39 USD   -4.94%
08/08Morgan Stanley Adjusts Price Target on Leslie's to $15 From $24, Reiterates Equalweight Rating
MT
08/08Goldman Sachs Trims Price Target on Leslie's to $18 From $19, Maintains Buy Rating
MT
08/08Stifel Nicolaus Adjusts Price Target on Leslie's to $20 From $22, Reiterates Buy Rating
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Leslie : Q3 2022 Earnings Presentation

08/05/2022 | 07:16am EDT

Third Quarter 2022 Earnings

August 5, 2022

Disclaimer

Industry Information

This presentation includes market data and certain other statistical information and estimates that are based on reports and other publications from industry analysts, market research firms, and other independent sources, as well as management's own good faith estimates and analyses. We believe these third-party reports to be reputable, but have not independently verified the underlying data sources, methodologies, or assumptions. Information that is based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances reflected in this information.

Non-GAAP Financial Measures

Included in this presentation and the accompanying oral presentation are certain non-GAAP financial measures designed to supplement the Company's financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP measures should not be considered in isolation or as substitutes for the Company's results as reported under GAAP. In addition, these non- GAAP financial measures are not calculated in the same manner by all companies, and accordingly, are not necessarily comparable to similarly titled measures of other companies and may not be appropriate measures for performance relative to other companies. Our presentation of the non-GAAP measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed to imply that our future results will be unaffected by these or other unexpected items. See the appendix to this presentation for a reconciliation of each of these non-GAAP measures to their most comparable financial measure compiled in accordance with GAAP.

Forward-Looking Statements

This presentation contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this presentation, including statements regarding our future results of operations or financial condition, business strategy and plans, objectives of management for future operations, and expected industry dynamics, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions.

Actual results or outcomes could differ materially from those indicated in these forward-looking statements for a variety of reasons, including, among others: our ability to execute on our growth strategies; supply disruptions; our ability to maintain favorable relationships with suppliers and manufacturers; competition from mass merchants and specialty retailers; impacts on our business from the sensitivity of our business to weather conditions, changes in the economy, and the housing market; our ability to implement technology initiatives that deliver the anticipated benefits, without disrupting our operations; our ability to attract and retain senior management and other qualified personnel; regulatory changes and development affecting our current and future products; our ability to obtain additional capital to finance operations; commodity price inflation and deflation; impacts on our business from the COVID-19 pandemic, impacts on our business from cyber incidents and other security threats or disruptions; and other risks and uncertainties, including those listed in the section titled "Risk Factors" in our filings with the U.S. Securities and Exchange Commission, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this presentation are based on events or circumstances as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this presentation, to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law.

2

Third Quarter 2022

Earnings Call

Mike Egeck

Chief Executive Officer

Steve Weddell

Executive Vice President and

Chief Financial Officer

Nasdaq: LESL

3

Third Quarter 2022 Summary

Record Third Quarter Sales, Margin, and Adj. EBITDA1

+13%

Sales growth

45.1%

Margin rate

Sales of $674M

  • Comp sales growth: +7%
  • Two-yearstack comp: +27%

Margin of $304M

  • Reported growth: +7%
  • Decline in margin rate driven by business mix, product margin, and DC expenses

Key Updates

Key macro trends - demand continues to be fueled by:

• Homeowners investing in the home and backyard

• The desire for a healthy outdoor lifestyle

• Migration to the Sunbelt

• A heightened sense of safety and sanitization

• Hybrid and work from home schedules

Residential Pool grew +7%

Pro Pool grew +17%

Residential Hot Tub grew +94%

• Third quarter customer file:

Contracted (2)%

Grew 6% adjusted for estimated impact of prior year chlorine media coverage

+2%

Adj. EBITDA1

growth

Adj. EBITDA1 of $183M

  • Adj. EBITDA1 growth: +$4M vs. prior year

Grew +14% on an unadjusted two-year stack basis

Built 10 new locations during the quarter, including 5 new PRO locations

Completed 29 PRO conversions during the quarter

Acquired Spring Dance Hot Tubs, adding four locations to our network

Record third quarter results despite NJ distribution center and product margin challenges

1 - See Appendix for reconciliation of non-GAAP measures to the most directly comparable GAAP measures.

4

Leslie's Delivered Positive Sales Growth Across All Consumer Groups in Q3

Customer Sales Bridge ($M)

$674

$29

$12

$36

$597

3Q21 Sales

Residential Pool

Pro Pool

Residential Hot Tub

3Q22 Sales

Sales growth impact:

+6%

+2%

+5%

+13%

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Leslie's Inc. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 11:15:23 UTC.


© Publicnow 2022
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Financials (USD)
Sales 2022 1 558 M - -
Net income 2022 158 M - -
Net Debt 2022 465 M - -
P/E ratio 2022 18,5x
Yield 2022 -
Capitalization 2 817 M 2 817 M -
EV / Sales 2022 2,11x
EV / Sales 2023 1,93x
Nbr of Employees 3 700
Free-Float 96,0%
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Mean consensus BUY
Number of Analysts 12
Last Close Price 15,39 $
Average target price 19,09 $
Spread / Average Target 24,0%
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Managers and Directors
Michael Relich Egeck Chief Executive Officer & Director
Steven M. Weddell Chief Financial Officer, Treasurer & Executive VP
Steven L. Ortega Chief Financial Officer & Executive Vice President
Marc Magliacano Independent Director
John F. Strain Independent Director
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