B&g Foods, Inc. · NYSE:BGS
B&g Foods — Debt Investor Presentation (December 2020)
29 slides from B&g Foods's debt investor presentation, Dec 2, 2020
Slide 1: Lender Presentation December 2, 2020
LENDER PRESENTATION December 2, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements These materials and the oral statements made from time to time by executive officers of B&G Foods may contain “forward - looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform A
Slide 3: About Non-GAAP Financial Measures
About Non - GAAP Financial Measures This presentation includes “non - GAAP (Generally Accepted Accounting Principles) financial measures.” “Adjusted diluted earnings per share” (which we define as diluted earnings per share adjusted for certain items that affect comparability), “adjusted gross profi
Slide 4: Today's Presenters
Today's Presenters 4 Bruce Wacha, Exec. Vice President of Finance and CFO David L. Wenner , Interim President and CEO
Slide 5: Transaction Overview
TRANSACTION OVERVIEW
Slide 6: Summary Overview
Summary Overview 6 1. Fiscal Q3 2020 had 14 weeks compared to 13 weeks in Q3 2019. 2. Excluding impact of Crisco acquisition. Crisco Acquisition Overview ► On December 1, 2020, B&G Foods, Inc. (“B&G Foods” or the “Company”) completed its acquisition of the iconic Crisco brand of oils and shortening
Slide 7: Pro Forma Capitalization
Pro Forma Capitalization 7 Assuming the high end of full year fiscal 2020 adjusted EBITDA guidance for the Company ($370mm), high end of projected fiscal year 2021 adjusted EBITDA ($70mm) for Crisco, share - based compensation addback ($10mm) and incorporating expected debt repayment from FCF genera
Slide 8: Summary Add-On Term Loan B Terms
Summary Add - On Term Loan B Terms 8 Borrower: B&G Foods, Inc. (the “Borrower’) Tranche Size: $300 million Maturity: Same as existing (10/10/2026) Guarantees: Same as existing Credit Agreement: All present and future material, domestic subsidiaries to the extent required by the terms of the existing
Slide 9: Syndication Timeline
Syndication Timeline 9 Timing Event December 2 Term Loan B Lender Call December 9 Term Loan B Commitments Due Week of December 14 Close and Fund Transaction U.S. Market Holiday December 2020 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Key Syndica
Slide 10: Organizational Chart
Organizational Chart 10 B&G Foods North America, Inc. Operating Company International Subsidiaries Domestic Subsidiaries Key: Borrower Guarantors Non - Guarantors B&G Foods, Inc. Holding Company • $800mm Revolving Credit Facility • New $300mm Add - on Term Loan B • $372mm Term Loan B • $900mm Senior
Slide 11: Company Highlights
COMPANY HIGHLIGHTS
Slide 12: B&G Foods by the Numbers
12 B&G Foods by the Numbers Financial Performance ($mm) $60 $62 $69 $94 $89 $103 $120 $131 $169 $184 $194 $218 $322 $333 $314 $303 $357 $373 $379 $411 $471 $487 $501 $513 $544 $634 $725 $837 $959 $1,372 $1,646 $1,701 $1,660 $1,928 Note: 2014 - 2017 net sales have been adjusted as a result of a new F
Slide 13: B&G Foods' Key Investment Highlights
B&G Foods’ Key Investment Highlights ► We successfully acquire and operate established food brands and make them relevant for today’s consumer ► Maximize growth of high potential brands / manage other brands for flat to moderate growth ► Win with high quality products, first in class customer servic
Slide 14: Crisco Complements B&G Foods' Portfolio of 50+ Brands
1996 ACQUISITION DECEMBER 1997 ACQUISITION JUNE 1998 ACQUISITION JULY 1999 ACQUISITION FEBRUARY 2000 LICENSE JUNE 2003 ACQUISITION AUGUST 2006 ACQUISITION JANUARY 2007 ACQUISITION FEBRUARY 2010 ACQUISITION NOVEMBER 2011 LICENSE AUGUST 2012 ACQUISITION OCTOBER 2013 ACQUISITION MAY 2014 ACQUISITION AP
Slide 15: Annual Net Sales by Brand
ANNUAL NET SALES BY BRAND $500+ Million $250+ Million $100+ Million $50 - $70 Million <$50 Million Crisco Also Expands B&G Foods’ Collection of Large Scale, Established and Defensible Niche Brands 15
Slide 16: B&G Foods Has a Brand in Every Aisle of the Grocery Store
B&G Foods Has a Brand in Every Aisle of the Grocery Store 16
Slide 17: B&G Foods Has a Brand in Nearly Every Household
Source: Ask Suzy Poll: General population consumers polled as of November 30, 2020. Have At Least One B&G Foods Brand In Their Households ~89 % Of Consumers B&G Foods Has a Brand in Nearly Every Household 17 ~60 % Of Consumers Have Crisco In Their Households
Slide 18: COVID Has Created Renewed Interest in Our Brands
COVID - 19 has Created Renewed Interest in Our Brands – Boosting the Size and Relevance of B&G Foods’ Portfolio 18 Top 10 Brands LTM Q3 2020 Net Sales ($ in millions) 638.0 Spices & Seasonings (1) 365.6 155.8 95.0 74.5 70.1 54.8 48.4 46.5 39.6 All Other 339.3 Total Sales 1,927.8 1. Includes the Spic
Slide 19: Double Digit Retail Consumption Growth in Many Brands
Many of Our Brands Have Seen Double Digit Retail Consumption Growth So Far This Year Brands Q3 YTD 2020 Consumption Growth 54.9% 35.9% 32.6% Spices & Seasonings 23.7% 21.7% 20.0% 12.5% (Including Le Sueur ) Source: Nielsen U.S. xAOC Retail Consumption Data as of 10/3/2020. 19
Slide 20: Crisco Acquisition
CRISCO ACQUISTION
Slide 21: Overview of Crisco Acquisition
Overview of Crisco Acquisition Transaction Overview Transaction Scope Unique Brand with Deep History and Strong Customer Affinity ► On December 1, 2020, B&G Foods completed its acquisition of the iconic Crisco brand of oils and shortening from The J. M. Smucker Co. for $550 million in cash, subject
Slide 22: Crisco Portfolio & Categories at a Glance
Crisco Portfolio & Categories at a Glance Product Projected 2021 Net Sales ($mm) % of Total Net Sales Size of Category Crisco Market Share Key Competitors Category Growth – LTM Nov’20 YoY Cooking Oil ~$150 - $155 $3.7bn +19% Shortening ~$100 - $105 $0.2bn +16% Sprays ~$10 - $15 $0.5bn +27% Total ~$2
Slide 23: Crisco Acquisition Thesis
Crisco Acquisition Thesis ► Crisco has a strong heritage, as the original all - vegetable shortening that transformed the way people bake and cook over 100 years ago Recognized, trusted, family oriented brand used in recipes across generations ► Leading market share in shortening and oils Crisco is
Slide 24: Financial Update
FINANCIAL UPDATE
Slide 25: 2020 Financial Highlights
2020 Financial Highlights Financial Summary ($ mm) 1. Reflects the Company's fiscal 2020 guidance (which excludes the impact of Crisco for December 2020) plus pro forma adjustment s f or Crisco based upon the Company's projected fiscal 2021 expectations for Crisco of net sales of $270 million and ad
Slide 26: YTD Q3 2020 Financial Performance
YTD Q3 2019 YTD Q3 2020 Net Sales Adj. EBITDA less CapEx Adj. Gross Profit (1) Adj. EBITDA ($ in millions) ($ in millions) ($ in millions) ($ in millions) ► B&G Foods generated net sales of $1,458 million for YTD Q3 2020 , an increase of $268 million, or 23%, compared to YTD Q3 2019 ▪ The increase w
Slide 27: Capitalization & Statistics
Capitalization & Statistics 27 Note : All ratios are based on adjusted EBITDA before share - based compensation. 1. Assumes cash and debt balances remain flat relative to Q3 2020 and does not give effect to the Crisco acquisition. 2. Debt is shown above at the gross amount (excluding OID). 3. Actual
Slide 28: Historical Financial Performance
Historical Financial Performance Note: 2014 – 2017 net sales have been adjusted as a result of a new FASB revenue recognition standard that we adopted in fiscal 2018 and reclassified marketing development funds (MDF) as a reduction of net sales, with a comparable reduction in SG&A and no change to n
Slide 29: Non-GAAP Reconciliations – Net Income to EBITDA and Adjusted EBITDA
Non - GAAP Reconciliations – Net Income to EBITDA and Adjusted EBITDA ___________________________ Note: Numbers in this table may not foot due to rounding. Adjusted EBITDA does not include add - back for share - based compensation . 1. Fiscal 2019 loss on extinguishment of debt includes the write -
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