The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q1 2018 Earnings Presentation
20 slides from The Simply Good Foods's earnings presentation, Jan 9, 2018
Slide 1: First Quarter Fiscal Year 2018 Earnings Conference Call & Webcast Presentation
FIRST QUARTER FISCAL YEAR 2018 EARNINGS CONFERENCE CALL & WEBCAST PRESENTATION January 9, 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 Joe Scalzo Introduction Chief Executive Officer First Quarter 2018 Highlights Update on Strategic Growth Initiatives Todd Cunfer Financial Summary Chief Financial Officer Q&A 2
Slide 4: First Quarter Fiscal 2018 Highlights
FIRST QUARTER FISCAL 2018 HIGHLIGHTS 3 3
Slide 5: First Quarter Highlights: Revenue, Profit and Consumption Growth
First Quarter Highlights: Revenue, Profit and Consumption Growth Net Sales and Profit Growth In Line with Long Term Growth Objectives (3) (2) $106.6 $99.8 (4) $22.3 $23.7 1Q17 1Q18 Note 1:Dollars in millions. Financial metrics presented for August – November periods (based on August fiscal year ends
Slide 6: First Quarter Highlights: Revenue, Profit and Consumption Growth
First Quarter Highlights: Revenue, Profit and Consumption Growth Atkins U.S. Snacking POS Data(1) $461 $443 (3) $415 (2) $396 $378 $333 $267 $213 $166 $137 +5.5% (4) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 Source: Nielsen FDMx and Retail Link for years 2008 – 2011. Total U.S. Multi-Ou
Slide 7: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES 6 6
Slide 8: 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 9: 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 10: Marketing: Introducing Rob Lowe
Marketing: Introducing Rob Lowe New Atkins Brand Spokesperson Self-Directed Low-Carber • Rob Lowe, actor • No weight loss messaging • “This is me”…“I have been living Atkins for • “Don’t have to be doing Atkins to years” get the benefit of Atkins” • Atkins Lifestyle Campaign began running • Lowe sha
Slide 11: Atkins New Lifestyle Book and Webpage
Atkins New Lifestyle Book and Webpage 10
Slide 12: Innovation – Fiber + Protein
Innovation – Fiber + Protein New items are focused on delivering against consumer needs and providing superior taste and incremental benefits vs. competitors 30g Protein 7g Fiber 11
Slide 13: Refreshed Packaging on Shelves in January
Refreshed Packaging on Shelves in January OLD NEW 12
Slide 14: Refreshed Packaging on Shelves in January
Refreshed Packaging on Shelves in January OLD NEW 13
Slide 15: 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 Club 4% 3% growth with more focus and investment 9% Mass 47% – 1QFY18 E-Commerce gross sales up nearly 67% Grocery 37% 14
Slide 16: Financial Overview
FINANCIAL OVERVIEW Simply yGood
Slide 17: 1Q18 Represents Solid Growth…
1Q18 Represents Solid Growth… Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 6.8% Year-Over-Year 8.3% Year-Over-Year 6.6% Year-Over-Year Growth Growth Growth $106.6 $23.7 $52.8 $22.3 $99.8 $48.7 47.9% 47.8% 49.5% 48.8% 18.7% 18.1% 22.3% 22.2% 1Q17 1Q18 1Q17 1Q18 1Q17 1
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights Solid balance sheet and cash flow provide financial flexibility to support future growth As of November 25, 2017, the Company has Cash of $62.9 million and a $200.0 million Term Loan outstanding, resulting in a pro forma Net Debt to Adjusted EBITDA ratio for the LTM of 1
Slide 19: 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 growth algorithm of 4% to 6% Anticipate Adjusted EBITDA
Slide 20: Q&A
Q&A -Simply¥Good as FOODS COMPANY™
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