The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q4 2017 Earnings Presentation
17 slides from The Simply Good Foods's earnings presentation, Nov 8, 2017
Slide 1: Fourth Quarter and Fiscal Year 2017 Earnings Conference Call & Webcast Presentation
Fourth Quarter and Fiscal Year 2017 Earnings Conference Call & Webcast Presentation November 8, 2017
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 Joe Scalzo Introduction Chief Executive Officer Fiscal Year 2017 Highlights Todd Cunfer Company Overview Chief Financial Officer Update on Key Growth Initiatives Financial Summary 2
Slide 4: Fiscal Year Highlights
Fiscal Year Highlights Delivered strong financial results as a result of the implementation of our new growth strategy Targeting a broader consumer audience and introducing new and re- formulated products led to 9th straight year of U.S. snacking POS growth Became publicly traded, strengthened
Slide 5: Revenue, Profit and Consumption Growth
Revenue, Profit and Consumption Growth Net Sales and Profit Growth In Line U.S. Snacking POS Data(1) with Long Term Growth Objectives $461 $443 (3) $415 (2) $396 $378 $396 Pro forma combined $333 $369 Net Sales +7.4% $267 $213 $166 $137 +4.8% (4) Pro forma combined $64 $73 Adjusted EBITDA + 12.9% FY
Slide 6: Simply Good Foods Company Overview
Simply Good Foods Company Overview Asset-light business model Strong free cash flow generation Atkins is the leader in nutritional snacking Atkins has 60 SKUs – bars, ready-to-drink shakes, snacks 85% aided brand awareness – high degree of consumer loyalty Aligned with consumer megatrend
Slide 7: Remain Focused on Key Growth Strategies
Remain Focused on Key Growth Strategies 1 Improved advocacy, education and activation for the core program users 2 Communication to target newly identified self-directed low-carbers 3 Product innovation / portfolio expansion to meet consumer demands for cleaner labels, higher protein and new product
Slide 8: Marketing: "Today's Atkins" and "The Atkins Effect"
Marketing: “Today’s Atkins” and “The Atkins Effect” Program Buyer Self-Directed Low-Carber • Lauren Alaina, country music artist • No weight loss messaging • “Today’s Atkins” Get healthy and lose • “Don’t have to be doing Atkins to weight: not just a before and after story get the benefit of Atkins”
Slide 9: 'Clean Bar' Product Initiative
‘Clean Bar’ Product Initiative Chocolate Peanut Butter Bar Atkins continues to improve its NEW OLD current product portfolio to deliver on “cleaner” label/ recognizable ingredient trends while maintaining same great taste Existing products being reformulated and new products developed with 18 “c
Slide 10: Distribution White Space Opportunities
Distribution White Space Opportunities 2017 Atkins U.S. Snacking Gross Sales By Channel White Space Opportunities Drug E-Commerce E-commerce starting to show strong growth with more focus and investment Club 4% 3% 9% Mass – Q4 E-Commerce gross sales up nearly 47% 50% Grocery 37% – FY17 E-Commerce
Slide 11: Financial Overview
Financial Overview Simply ¥Good FOODS COMPANY”
Slide 12: 4Q17 Represents Solid Growth...
4Q17 Represents Solid Growth… Pro Forma Gross Profit Pro Forma Adjusted EBITDA Pro Forma Net Sales(1) (and % Margin)(1) (and % Margin)(1) 10.3% Year-Over- 15.3% Year-Over- 3.5% Year-Over-Year Year Growth Year Growth Growth $47.4 $17.4 $97.6 $16.8 $41.1 $88.5 48.6% 19.0% 46.4% 17.8% Q4 Q4 Q4 Q4 Q4 Q4
Slide 13: ...and a Successful End to Fiscal Year 2017
…and a Successful End to Fiscal Year 2017 Pro Forma Gross Profit Pro Forma Adjusted EBITDA Pro Forma Net Sales(1) (and % Margin)(1) (and % Margin)(1) 7.4% Year-Over-Year 9.8% Year-Over-Year 12.9% Year-Over-Year Growth Growth Growth $396.2 $72.5 $369.0 $186.2 $64.2 $169.5 18.3% 47.0% 45.9% 17.4% FY16
Slide 14: Highly Attractive Cash Flow Characteristics
Highly Attractive Cash Flow Characteristics Asset-lite business model with strong cash flow generation - Capital expenditures of ~$1mm - Working capital needs of 10% - 11% of Net Sales Capital Expenditures as % of Net Sales Working Capital as % of Net Sales Minimal Annual Modest Working Capital Expe
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights Solid balance sheet and cash flow provide financial flexibility to support future growth As of August 26, 2017, the Company has Cash of $56.5 million and a $200.0 million Term Loan outstanding, resulting in a pro forma Net Debt to Adjusted EBITDA ratio for the LTM of 2.0
Slide 16: 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 FY 18 Expect to deliver 2018 net sales in-line with previously stated long-term growth algorithm of 4-6% Anticipate Adjusted EBITDA wil
Slide 17: Q&A
Q&A FOURTH QUARTER AND FISCAL YEAR 2017 EARNINGS CONFERENCE CALL & WEBCAST PRESENTATION November 8, 2017 16
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