ICR Conferenceinvestor.athome.com/~/media/Files/A/At-Home-IR-V2/...looking statements contained in...

January 10, 2017

ICR Conference

Safe Harbor Statement

1

This presentation contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as “anticipate,”

“believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “target,” “vision” or “should,” or the negative thereof or other variations

thereon or comparable terminology. In particular, statements about our preliminary estimated financial results for the thirteen weeks and fiscal year ending January 28, 2017, the

markets in which we operate, expected new store openings and performance, growth targets and potential growth opportunities, future capital structure, future capital expenditures

and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions of future events or performance contained in this presentation are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions,

estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond

our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements

expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements

contained in this presentation are not guarantees of future performance and our actual results of operations, financial condition and liquidity, and the development of the industry in

which we operate, may differ materially from the forward-looking statements contained in this presentation. In addition, even if such results or events are consistent with the forward-

looking statements contained in this presentation, they may not be predictive of results or developments in future periods.

See “Risk Factors” in our prospectus, dated August 3, 2016 and filed pursuant to Rule 424(b)(4), related to our initial public offering for more complete information about the factors

that could affect our results of operations, as well as our quarterly reports on Form 10-Q and current reports on Form 8-K for more information about the Company. You may get

these documents for free by visiting EDGAR on the SEC website at http://www.sec.gov.

Any forward-looking statement that we make in this presentation speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to

update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after

the date of this presentation.

The non-GAAP financial measures contained in this presentation (including, without limitation, comparable store sales, Adjusted EBITDA, Store-level Adjusted EBITDA, pro forma

adjusted net income, pro forma diluted weighted average shares outstanding and pro forma adjusted earnings per share) are not GAAP measures of our financial performance and

should not be considered as alternatives to net (loss) income as a measure of financial performance, or any other performance measure derived in accordance with GAAP. We

present Adjusted EBITDA, Adjusted EBITDA margin, Store-level Adjusted EBITDA and Store-level Adjusted EBITDA margin because we believe they assist investors and analysts

in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance,

such as interest, depreciation, amortization, loss on extinguishment of debt and taxes, as well as costs related to new store openings, which are incurred on a limited basis with

respect to any particular store when opened and are not indicative of ongoing core operating performance. We present pro forma adjusted net income, pro forma diluted weighted

average shares outstanding and pro forma adjusted earnings per share because we believe investors’ understanding of our operating performance is enhanced by the disclosure of

net income and earnings per diluted share adjusted for nonrecurring charges associated with events such as our IPO and refinancing transactions. You are encouraged to evaluate

each adjustment to non-GAAP financial measures and the reasons we consider it appropriate for supplemental analysis. There can be no assurance that we will not modify the

presentation of our non-GAAP financial measures in the future, and any such modification may be material. In addition, in evaluating Adjusted EBITDA, Store-level Adjusted

EBITDA, adjusted operating income, pro forma diluted weighted average shares outstanding and pro forma adjusted net income, you should be aware that in the future, we may

incur expenses similar to some of the adjustments in the presentation. Our presentation of Adjusted EBITDA, Store-level Adjusted EBITDA, pro forma adjusted net income, pro

forma diluted weighted average shares outstanding and pro forma adjusted earnings per share should not be construed as an inference that our future results will be unaffected by

unusual or non-recurring items. In addition, Adjusted EBITDA, Store-level Adjusted EBITDA, pro forma adjusted net income, pro forma diluted weighted average shares outstanding

and pro forma adjusted earnings per share may not be comparable to similarly titled measures used by other companies in our industry or across different industries and you should

not consider them in isolation, or as a substitute for analysis of our results as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP results

and using Adjusted EBITDA and Store-level Adjusted EBITDA, pro forma adjusted net income, pro forma diluted weighted average shares outstanding and pro forma adjusted

earnings per share only as supplemental information.

A Highly Differentiated Home Décor Concept with a Compelling Growth Story

• A specialty retailer in a big box format with unmatched breadth and depth

• Over 50,000 SKUs in ~120,000 square feet dedicated solely to

home décor

• 70% of product offering is private label, unbranded or co-

developed with vendors

• 123 stores in ~70 markets across 30 states

• Industry-leading profitability

• Compelling new store economics with targeted payback of less than two

years

• Flexible and disciplined real estate strategy to open stores across a

range of formats and markets

• 600+ total store potential nationwide(1)

Note: Fiscal year ends January of each year. Store information as of January 9, 2017

(1) Potential store opportunity based on research conducted by Buxton Company (“Buxton”)

(2) Last twelve months ended October 29, 2016

LTM Financials(2)

Net Sales $717M

% Growth 21%

Comps 3.3%

Adj. EBITDA $127M

% Margin 18%

2

Systematic approach focused on driving growth and profitability while minimizing operating risk

Scalable operations to support future growth

Key Drivers of Differentiation and Value in Our Business Model

Exceptional Management Team

and

Strong Corporate Culture

3

Differentiated

Concept

• Unmatched breadth

and depth of

assortment in a

warehouse format

• Customer friendly in-

store experience

• No direct competitor

Compelling

Value Proposition

• Product for any room,

in any style, for any

budget

• Robust merchandising

function adds ~20,000

new SKUs per year

• Collaboration with

vendors creates

customer’s desired

“look” at attractive

value price points

Efficient

Operating Model

• 80% of net sales occur

at full price

• Largely self-service

shopping experience

• Streamlined store

operations

• Made significant

investments to deliver

scalable growth

Flexible Real

Estate Strategy

• Successful model

across different

geographies,

population densities

and real estate

locations

• Highly attractive store

economics

We Provide Customers With What Matters Most in Home Décor

4

Most Important Attributes to Shoppers(1)

Want to get products

immediately

SelectionAbility to see / touch / feel

Price

(1) Source: Evercore ISI Research Reports dated November 1, 2016. © Copyright 2016. Evercore Group L.L.C. All rights reserved. Respondents were asked “When shopping

for home goods, what are the 3 most important attributes?” Percentages reflect frequency of attribute included in respondents’ answers. Lower priority attributes appearing in

less than 30% of responses include Free Shipping, Ease of returning, Brand of merchandise, Overall shopping experience, Prior experience with retailer, Brand of retailer,

Salesperson, and How merchandise is displayed.

(2) Based on research conducted for us by Russell Research

(3) Per Russell Research survey to core customers: “How likely are you to shop at each of the following stores for home décor in the next 12 months?”

20%

30%

40%

50%

60%

70%

Per average

customer per year

~4x

Extremely or very likely to shop at At Home again

~85%

Average spend per visit

(includes mostly decorative

accents and accessories)

~$65Average price

point per item

~$15

Per core

customer per year

~7x

Value of Our In-Store Experience

Frequent Store Visits(2)

High Customer Intent to Shop(3)

Unique Product Mix

At Home Delivers in 4

Top Categories

Breadth and Depth of Product Offering

Example

Retailers

Approx.

Retail

Space

(K Sq. Ft.)

Space

Dedicated

to

Home

Décor

(K Sq. Ft.)

At Home

Space

Advantage

Wall Décor &

AccentsOutdoor Holiday

Home

Textiles &

Rugs

Furniture Housewares

~120 ~120

Mass

Merchant

140+

135+

25-40 3x-4x

Home

Improvement

120+

145+

20-25 5x-6x

Craft

20

45

12-30 4x-10x

Home

Specialty

20

30

12-25 5x-10x

Home

Décor

10

20

10-20 6x-12x

Source: Company information, public filings, public transaction documents and management estimates

We Dedicate More Space to Home Décor and Combine All Key Categories Like No Other

5

$82 $87

$96

$115

$127

FY13 FY14 FY15 FY16 LTM

$96

$113

$133

$169

$187


$364

$404

$498

$622

$717


Strength of Model Reflected in our MomentumConvergence of Growth Factors Continue to Drive Financial Success

% Growth(1)11 21 27 21

Net Sales Adjusted EBITDAStore-level Adjusted EBITDA

6

New Stores 7 10 16 20 23 % Margin 22 22 19 19 18% Margin 26 28 27 27 26

% Growth 18 18 27 15 % Growth 6 10 21 13

Note: $ in millions. Please refer to the reconciliation of Adjusted EBITDA and Store-level Adjusted EBITDA in the appendix . LTM data as of October 29, 2016

(1) FY15 contained an additional week of business. FY15 and FY16 net sales growth rates have been adjusted to exclude $7.8M in net sales earned in the

53rd week

A Highly Differentiated Home Décor Concept

Primarily

Female Married

62%Major ethnicity

represented

Every

<$50k

Mean

age

46

Spent in store

> 1 HourCore customer

shops with At

Home annually

7x

Under

34

27%

Strong Customer Focus and Connectivity

Note: Based on research conducted for us by Russell Research and Company Facebook page

(1) 5% of survey participants were non-respondent

(2) Represents customers who are aware of At Home within existing markets

$50k - $75k >$75k

8

Intent to shop

85%

2/3Highest among 20 other

home décor retailers(2)

Extremely or very likely to

shop At Home again

Core customers increasing

spending over previous year

Diverse Customer Base

Core Customer: Spans Wide Income Bracket(1)

Core Customer: Passionate About At Home

15%

21% 59%

Sandy N. September 28

First time there today!!! Loved it!!!Lots and Lots of great decorations!!

Developing Lafayette October 16

At Home is waaaaayy more than we even expected. Legit sensory overload!

Quote of the trip: “Look at the walls of pillows and all these rugs!”

Vicki L. September 19

I love my draperies and have had more compliments on them than I can count! They are Park Avenue “silver” and the silver twig bowl from At Home….LOVE!

Beth R. October 4

I love all the Halloween stuff. You’re my kind of people.

Tana B. October 19

Great new store! So many things to purchase and fresh ideas!

Our Offering Addresses Every Room…

Note: Bedroom products and prices shown as of June 30, 2016. Dining room products shown at full retail price prior to regular semi-annual markdown

cadence.

• Impressive merchandise selection and unique product offerings offered at value price points

• Rapidly bring popular trends across categories: ~20,000 new SKUs annually, or on average 400 new SKUs per week

• Out-assort other retailers of home décor products in most categories

Our Merchandise Offering is Unmatched

Opportunity to Meet Needs in One Location

Modern

Chair

$200

Metal Art

$60

9

Figurines

$13

Lamp

Shade

$18

Pillow

$15

Quilt

$50

Wall Art

$15

Ottoman

$150

Headboard

$150

Lantern

$25

Curtains

$6

Candle

Holder

$10

Bathroom Outside Patio

and GardenDining and

Kitchen

Living Room

Bedroom

Table

$380

Chair

$100

Metal Tree

$20

Deer

$50

Tree

$280

Ornament

$4

Mirror

$130

Plate

$6

Rug

$150

Glass

Tree

$17Cabinet

$180

Co

nte

mp

ora

ryC

ou

ntr

yG

lob

al

Tra

dit

ion

al

10

…In Any Style…Merchandising That Addresses Full Range of Styles Under One Roof

Eight Archetypes Across Four Core Styles

Gracious Living Library Luxe

Mid-Century

ModernSoho Loft

Vintage Weekend

Getaway

Boho Chic Tribal Living

Full Price: ~70% Less

Sale Price: ~45% Less

…For Any BudgetB

ars

too

lsD

eco

rati

ve

Pillo

ws

Ru

gs


Sale Price: ~60% Less

11

Same Style, Similar Look, Lower Price


Manchester 30” Wood

Barstool w/ 180˚ swivelProduct

Montreal 30” Wood

Barstool w/ 360˚ swivel

Birch and Top Grain

LeatherComposition

Rubberwood and

Bonded Leather

$499.99 (on sale

$299.99)Price $159.99

26” Faux Mongolian Fur

Throw PillowProduct

26” Faux Mongolian Fur

Throw Pillow

Cover: 100% Acrylic

Fill : Polyester/Polyfill

Removable Cover: No

Composition

Cover: 100% Acrylic

Fill: Polyfill

Removable Cover: No

$89.00 (on sale $60.99) Price $24.99

5' x 7'

Indoor / Outdoor RugProduct

5' x 7'

Indoor / Outdoor Rug

Dobby Flat Weave

Acrylic FiberComposition

Lightweight Value Weave

with Cotton Added

$139.95 Price $49.99

We Have a Disciplined Product Development Process

12

Develop Product Offering Sources of Inspiration

Patterned Textiles for Patio Cushions Inspired by Women’s Fashion

• Introduce ~20,000 new SKUs annually to keep

assortment fresh and exciting

• 70% of our product offering is private label,

unbranded or co-developed with vendors

• 3-9 month development process, depending on product

category

• In-house team of merchants drives freshness and

relevance

• Fast follower approach to mitigate risk:

• Source new ideas from social media, trade

shows and conventions

• Identify 4-6 themes by archetype for the

season based on emerging trends

• Develop theme boards and vignette layouts

• Bridge seasonal and everyday trends to ensure a

cohesive collection

• Entire process designed to optimize efficiency

and cost, creating value for our customers

• Centralize major decisions on merchandising,

pricing and product assortment

• Highly automated distribution center to support

200+ stores

• Pre-ticketed products and pre-marked store

floors enable efficient unloading process

• Streamlined process reduces damage

• Proprietary labor model optimizes staffing levels

• Average 25 employees / store / week

We Operate Our Stores Effectively and Efficiently

Reduce Damage

Special Fixtures for Wall Art

Reduce Cost

Efficient Distribution & Unloading

Note: Store-level Adjusted EBITDA margin refers to stores open more than one year as of the beginning of the year

Driving Industry-Leading Profitability with Store-Level Adjusted EBITDA Margins of ~28%

From To

From To

13

We Have Built a Strong Management Team

CEO &

President

2012

Lee

Bird

Chief

Financial

Officer

2013

Judd

Nystrom

Chief

Merchandising

Officer

2008

Alissa

Ahlman

Chief

Operating

Officer

2013

Peter

Corsa

Chief

People

Officer

2013

Valerie

Davisson

Chief

Development

Officer

2013

Norm

McLeod

Chief

Marketing

Officer

2014

Jennifer

Warren

Vice

President of

Inventory

2015

Kim

Ramsey

Over 150 Years of Cumulative Retail Experience

14

General

Counsel

2013

Mary Jane

Broussard

Growth Opportunities

Our Growth OpportunitiesMultiple Strategies to Continue Our Strong Sales Growth and Industry Leading Profitability

16

Expand Our

Store Base

Drive

Comparable

Store Sales

Build the At Home Brand and Create Awareness

21

3

58 68

81

100

123

FY13A FY14A FY15A FY16A FY17E

123

1,313

1,032 1,024

568

279

Significant Whitespace Opportunity with Track Record of New Store Openings Across Markets

Note: Fiscal year ends January of each year. At Home store information as of January 9, 2017

(1) Potential long-term store opportunity based on research conducted by Buxton Company (“Buxton”)

(2) Competitor store count based on company filings and website

1 Expand Store Base

17

Whitespace Opportunity in Context (2)

Track Record of New Store Growth

Full

potential:

600+(1)

Competitor Store Count

Total Number of Stores at Year End

• Opened 20 new stores in FY2016

• Opened 24 new stores in FY2017

% Growth 17% 19% 24% 23%

123Stores

30States

FY14 – FY17 Openings

Pre - FY14 Openings

Source: Management estimates and Moody’s Analytics

(1) Represents average results for the stores open at least one year as of October 29, 2016

Market

Examples

Market Average

Store

Performance(1)

At Home is a portable concept that produces consistent profitability across all markets

● Dallas / Fort Worth, TX

● Washington D.C.

● Atlanta, GA

● Salt Lake City, UT

Average population: >2M

● Sales: $6.8 million

● % EBITDA margin: ~28%

Large Market



● Colorado Springs, CO

● Richmond, VA

● Albuquerque, NM

● Memphis, TN

● Average population: 1-2M

Mid-Level Market



● Albany, NY

● Hattiesburg, MS

● Prescott, AZ

● Kalamazoo, MI

● Average population: <1M

Small Market

Proven Market Expansion and Portability1

We Deliver Consistent Performance Across Various Market Sizes

Cedar Park, TX (Austin MSA)Build

Toledo, OHPurchase

Clive, IALease

18

$4.2

$6.0 $6.0 $6.0

FY14A FY15A FY16A FY17E

New Store Model

Note: Dollars in millions.

(1) Net investment includes capital spend, net working capital, pre-opening expenses and sale-leaseback proceeds

(2) Represents new store net sales within the first 12 months and is the run rate for full year of operations for store openings in FY2017

(3) Synthetic rent assumed for all real estate purchases and ground-up builds

Proven New Store Model Illustrated Through Strong New Store Performance

1

Targeted New Store Model

Year 1 Sales ~$5 million

Store-Level Adjusted

EBITDA Margin20%+

Net Investment $2 - $3 million(1)

Payback Period Less than 2 years

New Store-Level Adjusted EBITDA(3)

New Store Sales Per Store(2)

$1.1

$1.5

$1.9 $1.9

FY14A FY15A FY16A FY17E

4-Year

Average

4-Year

Average

New Stores Have DemonstratedStrong Opening Performance

$5.6

$1.6

19

# Leased Stores 3 6 17 20

Proven Track Record of Delivering Comp Store Sales Growth

20

(1) We completed a comprehensive rebranding initiative during the first nine months of FY15, which management estimates drove as much as 500 basis points of comparable store

sales growth in FY15. This estimate is based on past experience across our store base; however, the specific factors that drive comparable store sales in a particular period may

not be quantifiable.

(2) Represents midpoint of range of preliminary estimate of financial results. The thirteen weeks and fiscal year ending January 28, 2017 have not yet concluded and, accordingly,

results of operations for such period are not yet available. Estimates contained in this presentation are forward-looking statements and may differ from actual results. Actual

results remain subject to the completion of the fiscal period on January 28, 2017, completion of management/audit committee review, quarterly and annual financial closing

procedures and completion of consolidated financial statements. During the preparation of consolidated financial statements, additional items that may require material

adjustments to the preliminary estimated financial results presented above could be identified. The Company undertakes no duty to update the preliminary estimated financial

results presented above.

6.4%

1.9%

0.9%

4.2%

4.5 – 5.5%

Q4FY16

Q1FY17

Q2FY17

Q3FY17

Q4FY17E

Quarterly Comp Store Sales Growth

(2)

8.3%

3.9%

3.0 – 3.2%

FY15 FY16 FY17E

Annual Comp Store Sales Growth

(2)

Rebranding was a principal

driver of FY15 comp lift (1)

Positive comparable store sales growth in the last 11 consecutive completed fiscal

quarters, averaging 5.1% growth

2

Drive Comparable Store SalesStrategic Initiatives

2

• Continue to develop on-trend products to drive broad appeal

• Continuously reinvent, refresh and expand product offerings

• Refine archetype representation within categories

• “Good / better / best” strategy accommodates varying customer demographicsPro

du

ct

• Enhance inventory allocation capabilities

• Cultivate merchandise planning system and function

• Right products in the right store at the right timeInven

tory

• Strengthen visual merchandising to generate in-store demand through vignettes,

feature tables, end caps and signage

• Communicate value proposition more effectively

• Develop customer loyalty programs and credit card programsCu

sto

mer

• Drive brand awareness through marketing, social media and community engagement

• Expand omnichannel presence to drive in-store trafficBra

nd

21

15%

23% 23%

33%

Building the Awareness of At HomeEvolving Strategy to Create Awareness

(1) Per Russell Research survey to core customers: “How likely are you to shop at each of the following stores for home décor in the next 12 months?”

(2) Source: 531 respondents in newly entered markets

3

Unaided Awareness in New Markets(2)

High Intent to Shop in Existing Markets(1)

85%

72%62%

44%

22

Over 40,000 products viewable on website

(+10,000)

4.1 million monthly website visits (+208%)

22.5 million monthly page views (+250%)

2.1 million email subscribers (+163%)

417,000 social media followers (+48%)

• 46% 18%

• 93% 316%

Significant Year-over-Year Growth

Financial Overview

58 6881

100122


Note: $ in millions. LTM figures as of October 29, 2016. Please refer to the reconciliation of Adjusted EBITDA and Store-level Adjusted EBITDA in the appendix

(1) FY15 contained an additional week of business. FY15 and FY16 net sales growth rates have been adjusted to exclude $7.8M in net sales earned in the

53rd week

Multiple Growth Factors Continue to Drive Financial Success

$96 $113

$133

$169 $187


$364 $404

$498

$622

$717


$82$87

$96

$115$127


% Growth (1)

% Margin

Net Sales

21

22 22 19 19

11 New

Stores

16107

Adjusted EBITDA

% Margin 272826

Store-level Adjusted EBITDA

27

27 20

Store Count

CAGR: +20% CAGR: +22%

CAGR: +19% CAGR: +12%

21 23

26 18

24

Highly Efficient and Flexible Capital Structure

At Home Has Successfully Reduced Leverage

Financial Policy Outlook

Focus on growing store base

Disciplined approach to capital spending

Committed to further reducing leverage over time

25

4.8 x

4.4 x

3.2 x

FY2015 FY2016 Q3 FY2017 LTM

Total Debt / Adj. EBITDA (1)

(1) Total debt includes the ABL revolving credit facility, current portion of long-term debt, long-term debt and financing obligations. Please refer to the

reconciliation of Adjusted EBITDA in the appendix .

Note: $ in millions except per share amounts

(1) Projected pro forma adjusted net income excludes the following estimated pre-tax adjustments for fiscal 2017: a $2.7 million loss on extinguishment of debt

from the use of IPO proceeds to repay our $130.0 million Second Lien Facility; $5.6 million in non-cash stock-based compensation related to a special one-time

IPO bonus grant; $0.7 million of transaction related costs associated with our IPO; and a $6.1 million pro forma interest adjustment to normalize results for the

impact of repaying our Second Lien Facility with IPO proceeds. Pro forma diluted weighted average shares outstanding for fiscal 2017 are expected to be in a

range of 61.8 million to 62.3 million.

Continued Growth in FY2017

26

FY2017 Highlights

Achieved 23% store growth [24 gross new stores]

Outlook assumes 12th consecutive quarter of comp store sales growth

Completed IPO and repaid $130M of indebtedness

Generated $63M in sale-leaseback proceeds

Increased marketing spend as a % of sales for brand awareness initiative

Implemented merchandise planning software

Completed distribution center expansion

FY2016FY2017E

OutlookGrowth

Store Count 100 123 23%

Net Sales $622 $758 -$761 22%

Comp Store 3.9% 3.0% - 3.2% -

Pro Forma Adj.

Net Income(1) $25.4 $34.0 - $35.5 34% - 40%

Pro Forma

Adjusted EPS(1) $0.41 $0.55 - $0.57 34% - 39%

A Compelling High Growth Story

Store Growth High Teens

Comp Sales Growth Low Single Digits

Sales Growth High Teens

Operating Income

Growth~20%

Net Income Growth ~25%

Why Invest in At Home?

• Highly Differentiated Home Décor Concept

• Compelling Customer Value Proposition

• Significant Growth Opportunities with Scalable

Infrastructure Set to Support Sustainable Growth

• Efficient Operating Model Driving Industry-Leading

Profitability

• Flexible and Disciplined Real Estate Strategy

Supporting Attractive Store Economics

• Systematic Approach to Minimize Operational Risk

• Exceptional Management Team and Strong

Corporate Culture

1

2

3

4

5

6

7

Growth Targets (1)

(1) These growth targets represent our goals and are not projections of future performance. These targets are forward-looking, are subject to significant

business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its

management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations

may be material. For discussion of some of the important factors that could cause these variations, please consult “Risk Factors” in our prospectus, dated

August 3, 2016 and filed pursuant to Rule 424(b)(4), related to our initial public offering. Nothing in this presentation should be regarded as a

representation by any person that these targets will be achieved, and the Company undertakes no obligation to update this information

27

Passionate Organization Poised for Growth

28

Appendix

Historical Adjusted EBITDA and Store-Level Adjusted EBITDA Reconciliation

30

($ in Thousands) FY2013 FY2014 FY2015 FY2016 FY2016 Q3 FY2017 Q3 LTM

1/26/2013 1/25/2014 1/31/2015 1/30/2016 10/31/2015 10/29/2016 10/29/2016

Net (Loss)/Income (9,749) (22,283) (436) 3,574 (10,857) (1,856) 70,581

Interest Expense, Net 39,837 41,152 42,382 36,759 8,409 5,177 30,470

Loss on Extinguishment of Debt 20,744 0 0 36,046 0 2,715 2,715

Income Tax (Benefit) Provision (1,558) 59 4,357 (14,160) 7,086 (1,503) (40,623)

Depreciation and Amortization (a) 12,912 13,132 23,317 28,694 7,648 9,373 34,230

EBITDA $62,186 $32,060 $69,620 $90,913 $12,286 $13,906 $97,373

Legal, Consulting and Other (b)3,609 2,874 4,633 3,506 123 1,267 4,034

Costs Associated with New Stores (c) 1,070 2,023 6,848 9,801 3,448 2,812 11,721

Relocation and Employee Recruiting (d)321 4,442 2,928 724 67 45 610

Management Fees and Expenses (e)3,805 3,690 3,596 3,612 902 71 2,722

Stock-based Compensation Expense (f)292 4,373 4,251 4,663 1,185 1,135 4,571

Stock-based Compensation - IPO (g)0 0 0 0 0 2,708 2,708

Impairment of Trade Name (h)0 37,500 0 0 0 0 0

Non-Cash Rent (i)1,730 1,367 1,795 2,398 869 559 2,647

Other (j)8,567 (1,361) 1,881 (347) (69) 89 566

Adjusted EBITDA $81,580 $86,968 $95,552 $115,270 $18,811 $22,592 $126,952

Corporate Overhead Expenses (k) 14,146 25,977 37,570 53,303 14,213 15,028 59,946

Store-Level Adjusted EBITDA $95,726 $112,945 $133,122 $168,573 $33,024 $37,620 $186,898

Historical Adjusted EBITDA and Store-Level Adjusted EBITDA Reconciliation - Footnotes

31

(a) Includes the portion of depreciation and amortization expenses that are classified as cost of sales in our consolidated statements of operations.

(b) Primarily consists of (i) consulting and other professional fees with respect to tax consulting services as well as completed projects to enhance our accounting and finance capabilities

and other public company readiness initiatives, of $3.1 million, $2.2 million, $2.8 million and $3.5 million for fiscal years 2013, 2014, 2015 and 2016, respectively; $1.3 million and $0.5

million during the thirteen weeks ended October 29, 2016 and October 31, 2015, respectively; and $4.0 million for the twelve months ended October 29, 2016 and (ii) litigation

settlement charges and related legal fees for certain claims and legal costs for other matters relating to events that arose prior to our acquisition by our Sponsors that have concluded

in the amounts of $0.5 million, $0.7 million and $1.8 million for fiscal years 2013, 2014 and 2015, respectively; and $(0.4) million for the thirteen weeks ended October 31, 2015.

Adjustments related to such items for the other periods presented were not material.

(c) Non-capital expenditures associated with opening new stores, including marketing and advertising, labor and cash occupancy expenses. We anticipate that we will continue to incur

cash costs as we open new stores in the future. We opened 7, 10, 16 and 20 new stores in fiscal years 2013, 2014, 2015 and 2016, respectively; 7 and 8 new stores during the thirteen

weeks ended October 29, 2016 and October 31, 2015, respectively; and 23 new stores during the twelve months ended October 29, 2016.

(d) Primarily reflects employee recruiting and relocation costs in connection with the build-out of our management team.

(e) Reflects management fees paid to our Sponsors in accordance with our management agreement. In connection with our initial public offering, the management agreement was

terminated on August 3, 2016 and our Sponsors will no longer receive management fees from us.

(f) Non-cash stock-based compensation related to the ongoing equity incentive program that we have in place to incentivize and retain management.

(g) Non-cash stock-based compensation associated with a special one-time initial public offering bonus grant to senior executives, which we do not consider in our evaluation of our

ongoing performance. The grant was made in addition to the ongoing equity incentive program that we have in place to incentivize and retain management and was made to reward

certain senior executives for historical performance and allow them to benefit from future successful outcomes for our Sponsors.

(h) Reflects the impairment of the Garden Ridge trade name as a result of our rebranding initiative.

(i) Consists of the non-cash portion of rent, which reflects (i) the extent to which our GAAP straight-line rent expense recognized exceeds or is less than our cash rent payments, partially

offset by (ii) the amortization of deferred gains on sale-leaseback transactions that are recognized to rent expense on a straight-line basis through the applicable lease term. The

offsetting amounts relating to the amortization of deferred gains on sale-leaseback transactions were $0.3 million, $1.8 million and $3.2 million for fiscal years 2014, 2015 and 2016,

respectively; $1.4 million and $0.8 million during the thirteen weeks ended October 29, 2016 and October 31, 2015, respectively; and $4.2 million for the twelve months ended October

29, 2016. The GAAP straight-line rent expense adjustment can vary depending on the average age of our lease portfolio, which has been impacted by our significant growth over the

last four fiscal years. For newer leases, our rent expense recognized typically exceeds our cash rent payments while for more mature leases, rent expense recognized is typically less than

our cash rent payments.

(j) Other adjustments include amounts our management believes are not representative of our ongoing operations, including:

for fiscal year 2013, a $5.6 million exit payment to former management;

for fiscal year 2014, an insurance reimbursement of $(1.6) million and a prior year audit refund of $(0.5) million;

for fiscal year 2015, asset retirements related to our rebranding of $0.6 million and $0.4 million for a store relocation;

for fiscal year 2016, gain on the sale of our property in Houston, Texas of $(1.8) million and $(0.3) million related to various refunds for prior period taxes and audits, slightly

offset by $0.5 million in expenses incurred for a store closure; and

for the twelve months ended October 29, 2016, a loss of $0.3 million recognized on the sale of land in connection with the expansion of our distribution center.

(a) Reflects corporate overhead expenses, which are not directly related to the profitability of our stores, to facilitate comparisons of store operating performance as we do not consider

these corporate overhead expenses when evaluating the ongoing performance of our stores from period to period. Corporate overhead expenses, which are a component of selling,

general and administrative expenses, are comprised of various home office general and administrative expenses such as payroll expenses, occupancy costs, marketing and advertising,

and consulting and professional fees. See our discussion of the changes in selling, general and administrative expenses presented in "—Results of Operations". Store-level Adjusted

EBITDA should not be used as a substitute for consolidated measures of profitability or performance because it does not reflect corporate overhead expenses that are necessary to

allow us to effectively operate our stores and generate Store-level Adjusted EBITDA. We anticipate that we will continue to incur corporate overhead expenses in future periods.

Pro Forma Adjusted Net Income and Pro Forma Adjusted EPS Outlook Reconciliation

32

(a) Charges incurred in connection with our initial public offering, which we do not expect to recur and do not consider in our evaluation of our ongoing performance.

(b) Adjusts interest expense for the June 5, 2015 refinancing of our $360.0 million 10.75% Senior Secured Notes with $430.0 million of indebtedness under our first and second

lien term loan facilities.

(c) Adjusts stated interest expense for use of IPO proceeds for repayment in full of the $130.0 million of principal amount of indebtedness under our second lien term loan

facility, which occurred in the third quarter of fiscal 2017.

(d) Represents the tax impact associated with the adjusted expenses utilizing the effective tax rate in effect during the periods presented as well as the tax impact required in

each period to present pro forma adjusted net income, including all outlined adjustments, subject to a normalized annual effective tax rate.

(e) Represents the weighted average impact of common shares issued with our initial public offering in August 2016 as if they had been outstanding the entire period. Reflects

the midpoint of the range associated with the pro forma adjusted net income and pro forma adjusted earnings per share figures shown.

(in millions except per share amounts)FY16A

Net Income $3.6

Loss on extinguishment of debt 36.0

IPO transaction costs (a) 0.4

Interest on Senior Secured Notes (b) 4.0

Interest on Second Lien Term Loan (c) 11.8

Tax impact of pro forma adjustments and rate normalization (d) (30.4)

Pro forma adjusted net income $25.4

Pro forma weighted average diluted shares (e) 61.3

Pro forma adjusted EPS $0.41

ICR Conferenceinvestor.athome.com/~/media/Files/A/At-Home-IR-V2/...looking statements contained in...

Documents

Transcript of ICR Conferenceinvestor.athome.com/~/media/Files/A/At-Home-IR-V2/...looking statements contained in...