Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SANFILIPPO JOHN B & SON INC | d812306d8k.htm |
| EX-99.2 - EX-99.2 - SANFILIPPO JOHN B & SON INC | d812306dex992.htm |
 FY 2014 Annual
Stockholder Meeting
October 29, 2014
Exhibit 99.1 |
 Forward-Looking Statements
Some of the statements in this presentation constitute “forward-looking
statements” about John B. Sanfilippo & Son, Inc. Such statements
include, in particular, statements
about our plans, strategies, business prospects, changes and trends in our business
and the markets in which we operate. In some cases, you can identify
forward-looking statements by the use of words such as
“may,” “will,”
“could,”
“would,”
“should,”
“expect,”
“plan,”
“anticipate,”
“intend,”
“believe,”
“estimate,”
“forecast,”
“predict,”
“propose,”
“potential”
or “continue”
or the negative of those terms or other comparable
terminology. These statements represent our present expectations
or beliefs
concerning future events and are not guarantees. Such statements
speak only as of
the date they are made, and we do not undertake any obligation to update any
forward-looking statement.
We caution that forward-looking statements are qualified by important factors,
risks and uncertainties that could cause actual results to differ materially
from those in the forward-
looking statements. Our periodic reports filed with the Securities and
Exchange Commission, including our Forms 10-K and 10-Q and any amendments
thereto, describe some of these factors, risks and uncertainties.
2 |
 3
Agenda
JBSS Overview and
Strategic Goals
Jeffrey Sanfilippo
Chairman & CEO
Financial Review
Mike Valentine
CFO & Group President
Brand Marketing
Howard Brandeisky
Sr. VP Global Marketing
& Customer Solutions
Brand Sales
Chris Gardier
Sr. VP Consumer Sales
Closing Remarks
Jeffrey Sanfilippo
Chairman & CEO |
 Diluted
EPS
Improvement
of
49%
Net
Sales
increased
by
11%
to
a
record
$778.6
million
Time to Celebrate Successful Results
over the last three years
4
0
0.5
1
1.5
2
2.5
3
FY12
FY13
FY14
EPS FY 12-FY 14 |
 Creating
Shareholder Value JBSS
Russell 2000
Outperformed the Russell 2000 Index by over 40%!
5
Stock Price
$34.57
10/27/2014
Stock Price
$22.97
10/25/2013 |
 Mission
To be the global leader of quality driven,
innovative nut solutions that enhance
the customer and consumer
experience
and
achieve
consistent,
profitable growth for our
shareholders.
We
will
accomplish
this
through our commitment to a
dynamic infrastructure that
maximizes the potential of our
brands, people and processes.
Core Values
Integrity
People
Investment
Customer Driven
Quality
Innovation
Execution
Continuous Improvement
Safety
Resource Conservation
6 |
 7
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products
Company …
Reproduced with permission from Snack Food & Wholesale Bakery Magazine
|
 “The success
of any company is contingent upon having a strong team to manage and grow the
business. We have that here at JBSS.” Gustine, CA
130 Employees
Garysburg, NC
38 Employees
Bainbridge, GA
102 Employees
Selma, TX
167 Employees
Elgin, IL
857 Employees |
 John B. Sanfilippo
& Son, Inc. Transformed Consumer Products Company …
9
Reproduced with permission from Snack Food & Wholesale Bakery Magazine
|
 10
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products
Company …
Reproduced with permission from Snack Food & Wholesale Bakery Magazine
|
 Nut
Category Trends 11
11
*
*
*
*
*
*
* |
 $4.53
$4.70
$5.31
$5.62
$5.68
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
Price Per Pound
Price Per Pound Category
Retail Prices Higher Over the
Last 5 Years
12
Source:
IRI:
Total
Nut
Category
–
Multi
Outlet
Geography
–Year
Ending
6/29/14 |
 0%
10%
20%
30%
40%
50%
60%
Price Per Pound –
Percent Change Over Last 5 Years
Change vs. FY 2010
13
Retail Prices Up Across All Nut
Types over the Last 5 Years
+56%
+46%
+20%
+18%
+15%
+29%
+39%
+26%
+22%
Source:
IRI:
Total
Nut
Category
–
Multi
Outlet
Geography
–
Year
Ending
6/29/14 |
 14
Nut Category has had strong
Sales Growth
Source:
IRI:
Total
Nut
Category
–
Multi
Outlet
Geography
–
Year
Ending
6/29/14 |
 Category
Growth Across the Store
+26%
+4%
+42%
+5%
+32%
+8%
Snack Nuts
Produce Nuts
Recipe Nuts
15
Source: IRI: Total Nut Category –
Multi Outlet Geography –
Year Ending 6/29/14 |
 JBSS
Growth (Gross Sales) Across the Store
+38%
+244%
+22%
Snack Nuts
Produce Nuts
Recipe Nuts
Source: Internal JBSS Shipment Data |
 JBSS SALES CHANNEL
UPDATES
17
17
*
*
*
*
*
*
* |
 $193
$98
$454
Business Channel Diversification
(Millions of $)
$34
18
Fiscal 2014 Net Sales $779 Million |
 19
Consumer
58%
vs. FY ‘13
FY 2014 Consumer Channel
Fiscal 2014 Net Sales $454 Million |
 20
vs. FY ‘13
FY 2014 Commercial Ingredients Channel
Fiscal 2014 Net Sales $193 Million |
 FY 2014
Export Channel 21
Fiscal 2014 Net Sales $34 Million |
 22
Contract
Packaging
13%
Vs. FY ‘13
FY 2014 Contract Packaging Channel
Fiscal 2014 Net Sales $98 Million |
 CORPORATE STRATEGIES
23
23
*
*
*
*
*
*
* |
 24 |
 •
Fisher Recipe Nuts market share
leadership excluding club size items
•
Fisher Snack Nuts market share
growth in high franchise Midwest
•
Orchard Valley Harvest expanded
distribution and increased velocity
resulting in double-digit revenue
growth
•
Award-winning marketing programs
FY 2014 Accomplishments
25 |
 •
Established a Foreign Invested
Commercial Enterprise (FICE) in
China
•
Expanded Fisher Snacks in Asia and
the Middle East
•
Continued to leveraged key retail
partnerships for a record year with
private brands
FY 2014 Accomplishments
26 |
 China
27
FY13 Gift Pack
FY14 Gift Pack
Chinese New Year
•
Step-change
in
packaging
and
execution
…
Growth in sales and points of distribution
year-over-year.
Great performance in key Ecommerce platforms |
 Increased Fisher Distribution
in Asia and Middle East
•
South Korea
•
Malaysia
•
Macau
•
Hong Kong
28
•
Saudi Arabia
•
U.A.E. |
 Selective
Expansion of Private Brand Business
Leverage key retail partnerships …
focus on value-added opportunities.
29
Mexico
Japan
Colombia |
 •
Received Contract Manufacturing
supplier quality award
•
Optimized Food Service and Industrial
Ingredient customer and product
portfolios
•
Expanded Continuous Improvement
efforts throughout our organization
FY 2014 Accomplishments
30 |
 FY 2014
Financial Milestones |
 JBSS
Stockholders’ Equity FYs 1991-
2014
32 |
 JBSS Net
Sales FYs 1991- 2014
Item Rationalization, De-emphasized
Commodity Sales, Lower Prices
Low Carb Diet Run Up
33 |
 JBSS Total
Outstanding Debt FYs 1991- 2014
Facility consolidation
Improved operating performance
34 |
 JBSS Total
Outstanding Debt As % of Net Sales FYs 1991 –
2014
Note: FY 1997 reflects stub year
35 |
 EBITDA
consists
of
earnings
before
interest,
taxes,
depreciation,
amortization
and
noncontrolling
interest.
EBITDA
is
not
a
measurement
of
financial
performance
under
accounting
principles
generally
accepted
in
the
United
States
of
America
("GAAP"),
and
does
not
represent
cash
flow
from
operations.
EBITDA
is
presented
solely
as
a
supplemental
disclosure
because
management
believes
that
it
is
important
in
evaluating
JBSS's
financial
performance
and
market
valuation.
In
conformity
with
Regulation
G,
a
reconciliation
of
EBITDA
to
the
most
directly
comparable
financial
measures
calculated
and
presented
in
accordance
with
GAAP
is
presented
in
the
following
slide.
EBITDA
36 |
 (In
$,000's) FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
NET INCOME (LOSS)
22,630
14,499
(16,721)
(13,577)
(5,957)
6,917
14,425
2,835
17,122
21,760
26,287
INTEREST EXPENSE
3,434
3,998
6,516
9,347
10,502
7,646
5,653
6,444
5,364
4,754
4,354
INCOME TAX
(BENEFIT) EXPENSE
14,468
9,269
(8,689)
(7,520)
(897)
(259)
8,447
(49)
9,099
13,536
13,545
DEPRECIATION &
AMORTIZATION
11,190
10,501
10,000
13,584
15,742
15,922
15,825
16,968
17,117
16,717
16,278
EBITDA
51,722
38,267
(8,894)
1,834
19,390
30,226
44,350
26,198
48,702
56,767
60,464
NET SALES
520,811
581,729
579,564
540,858
541,771
553,846
561,633
674,212
700,575
734,334
778,622
EBITDA MARGIN
(% OF NET SALES)
9.9%
6.6%
-1.5%
0.3%
3.6%
5.5%
7.9%
3.9%
7.0%
7.7%
7.8%
POUNDS SOLD
284,576
278,741
248,137
246,142
221,958
217,465
224,302
232,746
212,553
221,762
240,417
EBITDA PER
POUND SOLD
0.182
0.137
(0.036)
0.007
0.087
0.139
0.198
0.113
0.229
0.256
0.252
37 |
 EBITDA*
*
EBITDA
is
a
non-GAAP
measure.
See
slide
entitled
“Reconciliation
of
Net
(Loss)
Income
to
EBITDA”
for
reconciliation
to
GAAP
measure
38 |
 EBITDA*
Margin (% of Net Sales) *
EBITDA
is
a
non-GAAP
measure.
See
slide
entitled
“Reconciliation
of
Net
(Loss)
Income
to
EBITDA”
for
reconciliation
to
GAAP
measure
39 |
 PEANUT AND
TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN %
Source: Spot market prices from survey of JBSS vendors and brokers
40 |
 Highlights: Q1 2015 vs. Q1 2014
(in 000’s except EPS)
41
$ Chng.
% Chng.
Net
Sales $
28,340
16.0%
Sales Volume (lbs.
sold) 4,055
7.1%
Gross
Profit $
1,315
4.5%
Net Income
* ($
860)
(12.7%)
Earnings Per
Share ($ 0.08)
(13.1%)
Operating Cash
Flows $ 20,455 276.3%
Total
Debt
($11,385)
(16.4%)
*
Adversely impacted by $1.4 million pretax increase in maintenance
expenses for the exterior of our office building. |
 FY 2014
Sales & Marketing Update |
 Grow
Brands Recipe Nuts
Snack Nuts
43 |
 Fisher is
a Growing Brand Sales Pounds
+7%
+7%
Net Sales
+6%
+6%
Sales Pounds
+1%
+1%
Net Sales
+8%
+8%
44
Fiscal 2014 Actual vs. Prior Year
3 Year CAGR |
 45
Total Fisher Brand has Grown
Dollar Share over the last 3 Years
Source:
IRI:Ttl
Nut
Category
–
Multi
Outlet
Geography
Year
Ending
6/29/14 |
 46 |
 Strong and
Sustained Growth on Fisher Recipe Nuts
34 Consecutive Quad-Weeks of
Increased IRI measured
Consumption!
47
Source:
IRI:
Ttl
Recipe
Nut
Category
–
Multi
Outlet
Geography
–
Latest
34
Quad
Weeks
Ending
10/5/14 |
 48
Success Driven by both Increased
Distribution and Movement
Source:
IRI:
Ttl
Recipe
Nut
Category
–
Multi
Outlet
Geography
–Year
Ending
6/29/14
*Note:
ACV
refers
to
“All
Commodity
Volume”
and
“Velocity”
is
pounds
per
point
of
distribution
as
measured
by
IRI |
 Differentiating versus competition
with “No Preservatives”
Message
Print
49 |
 Building
Fisher Brand Equity with Food Network Sponsorship
50
Recipes
Food Network
Vignettes
Digital and Mobile
Recipe Contest
Food Network
Magazine
Social Media and PR |
 We extend
our reach through Print that reaches our Core Consumer
51 |
 Expanding
Social Media Presence with “Fisher Fresh Thinkers”
52 |
 Reggie Gold Award
Brand Activation Association
(March 2014)
Golden Trumpet Gold Award
Publicity Club of Chicago
(June 2014)
Brand -Building Marketing
Recognized with Industry Awards
53 |
 Winning
the year is about Pounds-on-the-floor
54
Source:
IRI:
Ttl
Recipe
Nut
Category
–
Multi
Outlet
Geography
–Year
Ending
6/29/14
*Note:
ACV
refers
to
“All
Commodity
Volume”
as
measured
by
IRI |
 Importantly, Fisher display vehicles
deliver our consumer message in-store
55
Source: Internal JBSS Shipment Data |
 Win
the
holidays
=
win
win
the
the
year
year
56
Source:
IRI:
Ttl
Recipe
Nut
Category
–
Multi
Outlet
Geography
–Year
Ending
6/29/14
*Note:
ACV
refers
to
“All
Commodity
Volume”
as
measured
by
IRI |
 |
 Recipe Nut
Distribution Recipe Nut Distribution
National Distribution
Updated 10.8.14
Hawaii
58 |
 59 |
 Fisher
snack nut Strategy Focused on Midwest High Franchise Markets
60 |
 61
Fisher snack nuts Growing Pound
Share in High Franchise Markets
Source:
IRI:
Ttl
Snack
Nut
Category
–
Fisher
High
Franchise
Geography
–Years
Ending
6/29/14 |
 62
Success driven by Improved
Distribution and Movement
Source:
IRI:
Ttl
Snack
Nut
Category
–
Fisher
High
Franchise
Geography
–Year
Ending
6/29/14
*Note:
TPDs
refers
to
Total
Points
of
Distribution
and
Velocity
refers
to
pounds
per
point
of
distribution
as
measured
by
IRI |
 Source: Blue Chip Worldwide SPARQ concept research, December 2013
Driving Results on Core Dry
Roast Peanut Business
•
“
Oven Roasted, Never
Fried”
communication
drives purchase interest
•
Elevates taste and healthy
snack perceptions
•
Supported through FSIs,
In-Store and via Digital
63 |
 Velocity
(Pound Sales per Distribution Point)
Source: IRI
Growing Fisher Almond line
•
Converted Almond line to
5.5 oz Stand Up Re-sealable bags
•
Consumer Value Proposition:
Better per package price;
Re-closeable to seal-in freshness
•
Result: Increased movement per point
of distribution
64
Source: IRI Quad Week Data Ending 6/29/14 Multi-Outlet Geography
Note: Velocity refers to pounds per point of distribution as measured by IRI
|
 Importantly, we are increasing
the # of SKUs* on-shelf
65
Source:
IRI
Ttl
Snack
Nut
Category
–
Fisher
High
Franchise
Geography
–Year
Ending
6/29/14
*Note:
SKUs
refer
to
Stock
Keeping
Units |
 We are
fast adapting to key retailers’ rules on displays…
winning again!
66 |
 Snacks
Distribution Snacks Distribution
Updated 10.14.14
67 |
 Pure and Simple Goodness
68 |
 69
Orchard Valley Harvest Brand Equity
Pure & Simple Goodness
Support a healthy lifestyle
Close to the earth |
 70
Orchard Valley Harvest Delivers |
 Sales Pounds
+ 9%
+ 9%
Net Sales
+16
+16%
%
71
Orchard Valley Harvest
is a Growing Brand
Fiscal 2014 Actual vs. Prior Year |
 Source:
The Hartman Group : Eating Occasions, Compass 2012
The Hartman Group: Reimagining Health and Wellness, 2013
•
Snacking accounts for over
53% of all eating occasions
in the US
•
38% of consumers snack
several times per day
72
Mini’s and Multi-Packs Tap into “On the
Go”
Snacking
Grab ‘n Go Mini’s
Multi-Packs |
 73
FY15 OVH Marketing Support |
 74
FY13
Driver:
FY14
Driver:
Driving Increased Distribution
Source:
IRI:
Ttl
Produce
Nut
Category
–
Total
US
Food
Geography–Year
Ending
6/29/14
*Note:
%
ACV
refers
to
%
“All
Commodity
Volume”
as
measured
by
IRI |
 75
Driving Increased Movement
Source:
IRI
Ttl
Produce
Nut
Category
–
Total
US
Food
Geography–
Quad
Weeks
Ending
9-7-14 |
 76
Source: Internal JBSS Shipment Data
Displays drive sales in produce |
 |
 Closing
Comments |
 Principles of
Successful Strategy •
Differentiation
–
create distinction from competition
•
Focus
–
tradeoffs to allocate resources
•
System
–
building interrelated network of activities
79 |
 80
FY 2015 |
 FY 2015
81 |
 82
FY 2015 |
 Vision
To
be
the
global
source
for
nuts,
committed
to
quality,
expertise
and
innovation
that
delivers
an
unmatched
experience
to
our
customer
and
consumer
Core Values
Integrity
People
Investment
Customer Driven
Quality
Innovation
Execution
Continuous Improvement
Safety
Resource Conservation
83
83 |
 In memory of
Jerry Burgdoerfer |
 THANK
YOU |