SANFILIPPO JOHN B & SON INC - FORM 8-K - EX-99.1 - January 9, 2015

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8-K - 8-K - SANFILIPPO JOHN B & SON INCd848590d8k.htm
Sidoti & Company, LLC Emerging
Growth Institutional Investor Forum
January 12, 2015
NASDAQ: JBSS
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
*

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
stockholders.
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
3
*
*
*
*

Who is JBSS?
•
One of the largest nut processors in the world with fiscal 2014 annual sales in
excess of $778 million
•
State-of-the-art nut processing capabilities, including what we believe is the single
largest nut processing facility in the world
•
A North American market leader in every major selling channel –
from consumer and
commercial ingredient customers to contract packaging and export
customers
•
Dual consumer strategy of branded nut and dried fruit programs (Fisher, Orchard
Valley Harvest)
as well as private brands to major retailers
•
Commodity procurement expertise with buyers averaging over 20+ years experience
•
A category leader in packaging and product innovation
•
Vertically integrated nut processing operation for pecans, peanuts and walnuts
4
*
*

“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
*
5

We Are Experts In Every Nut Type
We Are Experts In Every Nut Type
6
•
Full portfolio of nuts
•
Broad variety of value-
added products
•
Wide assortment of other
snack products
•
Versatile and customized
formulas
•
Benefits
Appeals to major
customers
Adapts to changing
consumer needs
Reduces product
concentration risks
% of total gross sales
*
other consists of trail and snack mixes which include nut products
*

We Are Experts In Procurement
We Are Experts In Procurement
7
Pecans
Peanuts
Almonds
Walnuts
*

JBSS SALES CHANNEL
UPDATES
8
*
*
*
*
*
*
*
*

Commercial
Ingredients
25%
Contract Pkg.
13%
Consumer
58%
Export
4%
$193
$98
$454
Business Channel Diversification
(Millions of $)
* Approximately 31% of the Consumer channel sales were Fisher brand sales
$34
9
*
*

4.1%
10
Consumer
58%
vs. FY ‘13
FY 2014 Consumer Channel
*

Commercial
Ingredients
25%
8.4%
11
vs. FY ‘13
FY 2014 Commercial Ingredients Channel
*

Export
4%
0%
Vs. FY ‘13
FY 2014 Export Channel
12
*

14.0%
13
Contract
Packaging
13%
Vs. FY ‘13
FY 2014 Contract Packaging Channel
*

FY 2014 Financial Milestones
14

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
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
15
0
0.5
1
1.5
2
2.5
3
FY12
FY13
FY14
EPS FY 12-FY 14
*

Creating Shareholder Value
Outperformed the Russell 2000 Index by over 87%!
16
Stock Price
$23.59
1/7/2014
Stock Price
$42.75
1/7/2015
*

JBSS Stockholders’
Equity FYs 1991-
2014
17
*
*

JBSS Net Sales FYs 1991-
2014
18
*

JBSS Total Outstanding Debt FYs 1991-
2014
19
*
*

JBSS Total Outstanding Debt As % of Net Sales
FYs 1991 –
2014
Note:  FY 1997 reflects stub year
20
*

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
21
*
*
*

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
22
*
*

EBITDA*
*
EBITDA
is
a
non-GAAP
measure.
See
slide
entitled
“Reconciliation
of
Net
(Loss)
Income
to
EBITDA”
for
reconciliation
to
GAAP
measure
23
*

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
24
-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
25

Highlights: Q1 2015 vs. Q1 2014
(in 000’s except EPS)
26
$ Change
% Change
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 $0.9 million after-tax increase in maintenance
expenses for the exterior of our office building.
*

27
John B. Sanfilippo & Son, Inc.: Transformed Consumer Products 
Company …
Reproduced with permission of Snack Food & Wholesale Bakery magazine
*

Nut Category Trends
28
*
*
*
*
*
*
*
*

$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
29
*

0%
10%
20%
30%
40%
50%
60%
Price Per Pound –
Percent Change Over Last 5 Years
Change vs. FY 2010
30
Retail Prices Up Across All Nut
Types over the Last 5 Years
+56%
+46%
+20%
+18%
+15%
+29%
+39%
+26%
+22%
*

31
Nut Category has had strong
Sales Growth
*

CORPORATE STRATEGIES
32
*
*
*
*
*
*
*
*

33

•
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
34
*

•
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
35
*

•
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
36
*

FY 2014 Sales & Marketing
Update
37

Grow Brands
Recipe Nuts
Snack Nuts
38
*
*

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
39
*

40
Total Fisher Brand has Grown
Dollar Share over the last 3 Years
*

Strong and Sustained Growth on
Fisher Recipe Nuts
37 Consecutive Quad–Weeks of
Increased IRI measured
Consumption!
Source : IRI: Total Recipe Nut Category –
Multi Outlet Geography –
Latest 37 Quad Weeks Ending 12-28-14
41

Differentiating versus competition
with “No Preservatives”
Message
Print
42
*

Recipes
Food Network
Vignettes
Digital and Mobile
Recipe Contest
Food Network
Magazine
Social Media and PR
Social Media and PR
Building Fisher Brand Equity with
Food Network Sponsorship
43
*

Expanding Social Media Presence
with “Fisher Fresh Thinkers”
44
*

Winning the year is about
Pounds-on-the-floor
45
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
*

46
*

Fisher snack nut Strategy Focused on
Midwest High Franchise Markets
47
*

48
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
*

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
49
*

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
50
January
February
March
April
May
June
2014 SUB Data
2013 Can Average
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
*

We are fast adapting to key retailers’
rules on displays…
winning again!
51
*

Pure and Simple Goodness
52

Orchard Valley Harvest Brand Equity
Pure & Simple Goodness
Support a healthy lifestyle
Close to the earth
53

Orchard Valley Harvest Delivers
54

Sales Pounds
+ 9%
+ 9%
Net Sales
+16
+16%
%
Orchard Valley Harvest
is a Growing Brand
55
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
56
Grab ‘n Go Mini’s
Multi-Packs

FY15 OVH Marketing Support
Ibotta
Website
PR 
In-Store
Merchandising
New
Packaging
57
Bloggers

Driving Increased Distribution
58
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
*

THANK YOU
59

SANFILIPPO JOHN B & SON INC Reports