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| 8-K - 8-K - SANFILIPPO JOHN B & SON INC | d821318d8k.htm |
 SOUTHWEST IDEAS
INVESTOR CONFERENCE
November 20, 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 |
 Diluted EPS Improvement of 49%
Time to Celebrate Successful Results
over the last three years
3
0
0.5
1
1.5
2
2.5
3
FY12
FY13
FY14
EPS FY 12-FY 14
680,000,000
700,000,000
720,000,000
740,000,000
760,000,000
780,000,000
800,000,000
FY12
FY13
FY14
Net Sales FY 12
-FY 14
$778,622,000
Net Sales increased by 11% to a record $778.6 million |
 Creating
Shareholder Value JBSS
Russell 2000
Outperformed the Russell 2000 Index by over 55%!
4
Stock Price
$23.99
11/15/2013
Stock Price
$38.30
11/17/2014
59.65% |
 “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 |
 6
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products
Company …
Reproduced with permission of Snack Food & Wholesale Bakery magazine
|
 Nut
Category Trends 7 |
 $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
8
Source: IRI: Total Nut Category – Multi Outlet Geography –Year Ending 6/29/14 |
 9
Retail Prices Up Across All Nut
Types over the Last 5 Years
+56%
+46%
+20%
+18%
+15%
+29%
+39%
+26%
+22%
0%
10%
20%
30%
40%
50%
60%
Price Per Pound –
Percent Change Over Last 5 Years
Change vs. FY 2010
Source: IRI: Total Nut Category – Multi Outlet Geography – Year Ending 6/29/14 |
 10
Nut Category has had strong
Sales Growth
930
940
950
960
970
980
990
1000
1010
Category LB Sales (MM)
959
974
961
971
1,003
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
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
11
Source:
IRI:
Total
Nut
Category
–
Multi
Outlet
Geography
–
Year
Ending
6/29/14 |
 JBSS
Growth (Gross Sales) Across the Store
+38%
+244%
+22%
Source: Internal JBSS Shipment Data
Snack Nuts
Produce Nuts
Recipe Nuts
12 |
 JBSS SALES CHANNEL
UPDATES
13 |
 $193
$98
$454
Business Channel Diversification
(Millions of $)
$34
14
Commercial
Ingredients
25%
Contract Pkg.
13%
Consumer
58%
Export
4
%
Fiscal 2014 Net Sales $779 Million |
 15
Consumer
58%
vs. FY ‘13
FY 2014 Consumer Channel
4.1%
Fiscal 2014 Net Sales $454 Million |
 16
FY 2014 Commercial Ingredients Channel
Fiscal 2014 Net Sales $193 Million
Commercial
Ingredients
25%
8.4%
vs. FY ‘13 |
 FY 2014
Export Channel 17
Export
4%
0%
Vs. FY ‘13
Fiscal 2014 Net Sales $34 Million |
 18
Contract
Packaging
13%
Vs. FY ‘13
FY 2014 Contract Packaging Channel
Fiscal 2014 Net Sales $98 Million
14.0% |
 CORPORATE STRATEGIES
19 |
 20 |
 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
21 |
 Established a Foreign Invested
Commercial Enterprise (FICE) in
China
Expanded Fisher Snacks in Asia and
the Middle East
Continued to leverage key retail
partnerships for a record year with
private brands
FY 2014 Accomplishments
22 |
 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
23 |
 FY 2014
Sales & Marketing Update
24 |
 Recipe Nuts
Snack Nuts
25 |
 Fisher is
a Growing Brand Sales Pounds
+7%
Net Sales
+6%
Sales Pounds
+1%
Net Sales
+8%
Fiscal 2014 Actual vs. Prior Year
3 Year CAGR
26 |
 27
Total Fisher Brand has Grown
Dollar Share over the last 3 Years
2.5
2.9
3.1
FY 2012
FY 2013
FY 2014
Fisher Dollar Share
Source: IRI:Ttl Nut Category – Multi Outlet Geography Year Ending 6/29/14 |
 Strong and
Sustained Growth on Fisher Recipe Nuts
34 Consecutive Quad-Weeks of
Increased IRI measured
Consumption!
28
0%
10%
20%
30%
40%
50%
60%
Fisher LB % Change vs. Last Year
Source: IRI: Ttl Recipe Nut Category – Multi Outlet Geography – Latest 34 Quad
Weeks Ending 10/5/14 |
 29
Success Driven by both Increased
Distribution and Movement
33.0%
43.5%
46.5%
FY 2012
FY 2013
FY 2014
Fisher ACV Growth*
14,160
16,022
22,372
FY 2012
FY 2013
FY 2014
Fisher Pound Velocity*
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
30 |
 Building
Fisher Brand Equity with Food Network Sponsorship
31
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
32 |
 Expanding
Social Media Presence with “Fisher Fresh Thinkers”
33 |
 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
34 |
 Winning
the year is about Pounds-on-the-floor
35
26.7
37.2
41.2
FY 2012
FY 2013
FY 2014
Fisher % ACV Any Display*
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
|
 36
|
 Recipe
Recipe
Nut
Nut
Distribution
Distribution
37
Hawaii |
 38 |
 Fisher
snack nut Strategy Focused on Midwest High Franchise Markets
39 |
 40
Fisher snack nuts Growing Pound
Share in High Franchise Markets
1.8
2.7
3.1
FY 2012
FY 2013
FY 2014
Fisher snack nuts Pound Share
(High Franchise Markets)
Source: IRI: Ttl Snack Nut Category – Fisher High Franchise Geography –Years Ending 6/29/14
|
 41
Success driven by Improved
Distribution and Movement
473
669
674
FY 2012
FY 2013
FY 2014
Fisher TPD*
1,354
1,386
1,634
FY 2012
FY 2013
FY 2014
Fisher Pound Velocity*
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
42 |
 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
43
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
44
9.5
9.8
12.7
FY 2012
FY 2013
FY 2014
Avg # of Items per Store Selling
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!
45 |
 Snacks
Distribution Snacks Distribution
46 |
 Pure and Simple Goodness
47 |
 Orchard Valley
Harvest Brand Equity 48
Pure & Simple Goodness
Support a healthy lifestyle
Close to the earth |
 Orchard Valley
Harvest Delivers 49 |
 Sales Pounds
+ 9%
Net Sales
+16%
Orchard Valley Harvest
is a Growing Brand
50
Fiscal 2014 Actual vs. Prior Year |
 Source:
The Hartman Group : Eating Occasions, Compass 2012
The Hartman Group: Reimagining Health and Wellness, 2013
Mini’s and Multi-Packs Tap into “On the
Go”
Snacking
•
Snacking accounts for over
53% of all eating occasions
in the US
•
38% of consumers snack
several times per day
51
Grab ‘n Go Mini’s
Multi-Packs |
 FY15 OVH
Marketing Support Bloggers
Ibotta
Website
PR
In-Store
Merchandising
New
Packaging
52 |
 Driving
Increased Distribution 53
FY13
Driver:
FY14
Driver:
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 |
 Driving
Increased Movement 54
-
1,000
2,000
3,000
4,000
5,000
6,000
Units
Sales
Per
Point
of
Distribution
–
Total
OVH
Source: IRI Ttl Produce Nut Category – Total US Food Geography– Quad Weeks Ending
9-7-14
|
 Displays drive
sales in produce 55
Source: Internal JBSS Shipment Data
392,656
370,401
582,077
FY 2012
FY 2013
FY 2014
Shipper & 1/4 Pallet Lb Displays |
 |
 FY 2014
Financial Milestones 57 |
 JBSS
Stockholders’ Equity FYs 1991-
2014
58
25
32
69
68
76
73
73
78
80
87
94
102
119
181
196
180
163
158
165
180
184
201
215
227
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250 |
 JBSS Net
Sales FYs 1991- 2014
59
Item Rationalization, De-emphasized
Commodity Sales, Lower Prices
Low Carb Diet Run Up
165
193
204
209
277
293
132
312
313
327
342
353
420
521
582
580
541
542
554
562
674
701
734
779
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900 |
 JBSS Total
Outstanding Debt FYs 1991- 2014
Facility consolidation
Improved operating performance
60
50
76
71
107
107
98
93
115
100
99
89
70
70
19
144
138
148
133
94
99
101
95
74
80
$0
$20
$40
$60
$80
$100
$120
$140
$160 |
 JBSS
Total Outstanding Debt As % of Net Sales FYs 1991 –
2014
Note: FY 1997 reflects stub year
61
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0% |
 EBITDA
62
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. |
 Reconciliation of Net Income (Loss) to EBITDA
(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
63 |
 EBITDA*
* EBITDA
is
a
non-GAAP
measure.
See
slide
entitled
“Reconciliation
of
Net
(Loss)
Income
to
EBITDA”
for
reconciliation
to
GAAP
measure
64
-$15,000
-$10,000
-$5,000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
$60,000
$65,000 |
 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
65
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0% |
 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
66 |
 Highlights: Q1 2015 vs. Q1 2014
(in 000’s except EPS)
67
$ 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. |
 THANK
YOU 68 |