Financial Review Franchise Group Inc. slide image

Financial Review Franchise Group Inc.

Historical pro forma financial summary Revenue Gross Profit $MM $3,010.2 $3,047.1 $MM $2,886.1 ■ PSP² $1,267.9 $1,335.2 693.1 732.5 846.0 ■PSP $1,197.2 Buddy's 172.6 94.8 130.9 92.0 122.8 97.3 271.5 321.7 Buddy's 284.8 66.9 71.1 924.4 Liberty Tax 890.4 945.1 172.6 66.3 122.8 ■Liberty Tax 130.9 370.9 406.5 378.8 American Freight 1,125.3 1,040.4 1,036.0 ■American Freight 350.4 336.4 448.7 Vitamin Shoppe Vitamin Shoppe 2018 2019 2020 2018 2019 2020 % YoY Growth % Margin Total PSP Buddy's Liberty Tax American Freight³ Vitamin Shoppe 5.8% 16.4% 5.8% (6.2%) 6.1% (0.4%) Adjusted EBITDA $ MM PSP 2 $340.1 $MM $283.7 $258.5 80.0 % Conversion ■Buddy's 57.1 26.9 Total PSP 42.1% 41.5% 43.8% 39.2% 38.9% 38.0% Buddy's 70.5% 72.1% 73.0% Liberty Tax 100.0% 100.0% 100.0% American Freight³ 44.0% 42.5% 39.2% Vitamin Shoppe 31.1% 32.3% 43.3% Capital Expenditures and PF Free Cash Flow5 81.2% 81.7% 82.3% $284.5 17.3 59.9 37.1 Liberty Tax 31.7 15.7 $230.3 4 35.8 $211.2 American Freight 115.2 124.2 99.9 Vitamin Shoppe 87.0 63.1 54.7 ■FRG Corporate Expense (6.0) (9.7) (7.5) $53.3 $47.4 $55.6 2018 2019 2020 % Margin Total 9.4% 9.0% 11.2% 6 2018 2019 2020 PSP 8.2% 8.2% 9.5% Buddy's 18.2% 17.1% 27.6% ■Capex FCF Liberty Tax 18.3% 27.4% 30.2% American Freight³ Capex as % of 13.4% 11.2% 12.2% 1.8% 1.6% 1.8% revenue Vitamin Shoppe 5.6% 5.3% 8.4% Fiscal year ends on the last Saturday of the calendar year; 2 PSP as of 01/02/21; 3 Pro forma American Freight and Sears Outlet; 4 EBITDA includes $42MM in unrealized synergies annual in 2018 and 2019; 5 Free Cash Flow = Adjusted EBITDA - Capex; 6 AFO normalized in 2020 reporting, reducing capex $4.4MM as part of rebranding FRANCHISE GROUP INC. 18
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