The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q2 2018 Earnings Presentation
18 slides from The Simply Good Foods's earnings presentation, Apr 10, 2018
Slide 1: Second Quarter Fiscal Year 2018 Earnings Conference Call & Webcast Presentation
SECOND QUARTER FISCAL YEAR 2018 EARNINGS CONFERENCE CALL & WEBCAST PRESENTATION April 10, 2018 0 0
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains statements that are not historical facts but that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use
Slide 3: Today's Speakers & Agenda
Today’s Speakers & Agenda Speakers Agenda \ Mark Pogharian Introduction V. President Investor Relations Joe Scalzo Second Quarter 2018 Highlights Chief Executive Officer Business Update Todd Cunfer Financial Summary Chief Financial Officer Q&A 2
Slide 4: Second Quarter Fiscal 2018 Highlights
SECOND QUARTER FISCAL 2018 HIGHLIGHTS 3 3
Slide 5: 2nd Quarter Highlights: Revenue and Profit Growth
2nd Quarter Highlights: Revenue and Profit Growth Net Sales Momentum Continues (3) (2) $109.3 $102.3 (4) $18.1 $18.8 2Q17 2Q18 4
Slide 6: First Half Consumption Growth Remains Strong
First Half Consumption Growth Remains Strong Atkins U.S. Snacking POS Data(1) $461 $443 (3) $415 (2) $396 $378 $333 $267 $213 $166 $137 +5.1% (4) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18 Source: Nielsen FDMx and Retail Link for years 2008 – 2011. Total U.S. Multi-Outlet IRI, excluding
Slide 7: Strong Retail Performance Driven by Base Velocity Growth
Strong Retail Performance Driven by Base Velocity Growth 1 New marketing campaign is resonating with and bringing new consumers to the franchise 2 Packaging refresh improves shelf presence and aisle shopability 3 “Clean label” initiative delivering on consumer preferences for fewer, recognizable ing
Slide 8: New Marketing Campaign Delivering Results
New Marketing Campaign Delivering Results New Atkins Brand Spokesperson Early Results • Rob Lowe, actor • Atkins.com web visits +25% • “This is me”…“I have been living Atkins for • Buyer growth accelerating years” • PR campaign created 500 million • Atkins Lifestyle Campaign began running impression
Slide 9: Improved / Refreshed Packaging On-shelf in January
Improved / Refreshed Packaging On-shelf in January OLD NEW 8
Slide 10: Cleaner Labels Resonate with Consumers
Cleaner Labels Resonate with Consumers Chocolate Peanut Butter Bar Atkins continues to improve its NEW OLD current product portfolio to deliver on “cleaner” label trends while maintaining same great taste Existing products being reformulated and new products developed with “cleaner” labels 18 62
Slide 11: New Products Deliver Enhanced Wellness Benefits
New Products Deliver Enhanced Wellness Benefits Almond Butter Meal Bars Plus Protein + Fiber 30 Gram Protein Shakes 10
Slide 12: Financial Overview
FINANCIAL OVERVIEW Simply yGood
Slide 13: 2Q18 - Solid Net Sales Growth and Gross Margin Expansion
2Q18 - Solid Net Sales Growth and Gross Margin Expansion Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 6.9% Year-Over-Year 7.9% Year-Over-Year 3.9% Year-Over-Year Growth Growth Growth $109.3 $18.8 $50.3 $18.1 $102.3 $46.6 47.9% 47.8% 46.0% 45.5% 18.7% 18.1% 17.7% 17.2
Slide 14: YTD 2018 Results Strong Across Key Metrics
YTD 2018 Results Strong Across Key Metrics Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 6.8% Year-Over-Year 8.1% Year-Over-Year 5.3% Year-Over-Year Growth Growth Growth $215.9 $42.5 $103.0 $40.4 $202.1 $95.3 47.9% 47.8% 47.7% 47.1% 18.7% 18.1% 20.0% 19.7% 1H17 1H18 1
Slide 15: Tax Reform Provides Benefit, With Partial Re-Investment
Tax Reform Provides Benefit, With Partial Re-Investment FY2018 Tax Rate ~28%, versus previous outlook of 31-32% provided last quarter NET EFFECTIVE ADJUSTED INCOME TAX RATE PORTION OF LOWER TAX RATE IN FISCAL 2018 TO BE REINVESTED IN THE BUSINESS 39% 40% Incremental strategic investments in brand
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights Solid balance sheet and cash flow provide financial flexibility to support future growth As of February 24, 2018, the Company has Cash of $79.0 million and a $200.0 million Term Loan, resulting in a pro forma Net Debt to Adjusted EBITDA ratio for the LTM of 1.6x $200.0
Slide 17: Summary
Summary Confident in growth opportunities and our plans to execute against them Well positioned to deliver 10th straight year of U.S. snacking POS growth in FY18 Expect to deliver 2018 net sales in-line with previously stated long-term target of 4% to 6% growth A portion of Tax Reform favora
Slide 18: Q&A
Q&A Simply yGood FOODS COMPANY™
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