The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q4 2019 Earnings Presentation
20 slides from The Simply Good Foods's earnings presentation, Oct 29, 2019
Slide 1: Fourth Quarter and Fiscal Year 2019 Earnings Conference Call & Webcast Presentation
Fourth Quarter and Fiscal Year 2019 Earnings Conference Call & Webcast Presentation October 29, 2019
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by or include w
Slide 3: Today's Speakers and Agenda
Today’s Speakers and Agenda Speakers Agenda \ Mark Pogharian VP, Investor Relations Introduction Joe Scalzo President & Chief Executive Officer Fourth Quarter 2019 Highlights Business Update Todd Cunfer Chief Financial Officer Financial Summary Q&A 2
Slide 4: Joseph E. Scalzo, President and Chief Executive Officer
JOSEPH E. SCALZO PRESIDENT AND CHIEF EXECUTIVE OFFICER 3
Slide 5: Fiscal 2019 Highlights
Fiscal 2019 Highlights Exceeded fiscal 2019 targets for net sales, Adjusted EBITDA and free cash flow – Generated double digit net sales and Adjusted EBITDA growth in every quarter Expanded Adjusted EBITDA margin while continuing to make investments to drive growth Retail takeaway in IRI MULO
Slide 6: Continuous Point-of-Sales Growth
Continuous Point-of-Sales Growth Atkins U.S. Snacking Point-of-Sale Data(1) $621 +19.5% YoY $520 $461 $443 $396 $415 $378 $333 $267 $213 $166 $137 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Nielsen FDMx and Retail Link for years 2008 – 2011. Total U.S. Multi-Outlet IRI, excl
Slide 7: 4th Quarter Highlights: Revenue & Profit Growth
4th Quarter Highlights: Revenue & Profit Growth Strong End to the Year: $139.2 Driven by: Volume +29.3% Trade Promo + 1.6% $108.3 Non-price Related Trade - 2.3%2 Driven by: + Higher Sales + Gross profit increase driven primarily by higher sales; gross margin affected by previously mentioned selling
Slide 8: Growth Across All Major Channels
Growth Across All Major Channels Sales growth across all major channels and customers in U.S. Snacking Gross Sales Growth U.S. Snacking Gross Sales by Channel by Channel Fiscal 2018 vs. 2019 Mass +20.6% Club Food +18.6% Food Club +39.8% Drug +6.8% Mass E-Com +59.8% All Oth. +30.3% 7
Slide 9: Q4 Consumption Growth Solid vs. Tough Comps in Prior Year
Q4 Consumption Growth Solid vs. Tough Comps in Prior Year Total Atkins U.S. Snacking Point of Sale Data % Change vs. Year Ago +21.7% +19.5% +16.6% +14.7% +14.1% +11.6% Period end 9/1/19: 3Q YTD June July August Q4 Fiscal 2019 2018: +16.6% +18.6% +22.6% +19.5% Source: IRI/MULO 8 Note: Bars/graphs not
Slide 10: Retail Takeaway by Form
Retail Takeaway by Form Retail takeaway by form in-line with estimates given challenging year ago comps Atkins U.S. Point of Sale Data by Form % Change vs. Year Ago Bars RTD / Shakes Confections Total Atkins +26.5% +27.8% +21.9% +19.5% +13.8% +14.1% +10.5% +9.1% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY
Slide 11: Committed to Advertising & Marketing
Committed to Advertising & Marketing Ad copy delivering desired results and resonating with consumers Driving New Buyers, Consumption & Loyalty # (mil) Buy Rate Loyalty Fiscal 2019 Total Buyers Greater than LT historical Avg. Fiscal 2020e Total Buyers = 2019 rate 10
Slide 12: Confidence in Our Strategy & Delivering on Our Commitments
Confidence in Our Strategy & Delivering on Our Commitments Anticipate another year of solid POS growth, although challenging comps throughout the year Total Atkins U.S. Snacking Point of Sale Data* Sept. Oct. Nov. F1Q 1 Fiscal ‘20 +8.9% +13.0% TBD TBD Fiscal ‘19 +25.8% +23.9% +22.4% +24.0% Marke
Slide 13: Todd Cunfer, Chief Financial Officer
TODD CUNFER CHIEF FINANCIAL OFFICER 12
Slide 14: Change in Net Sales
Change in Net Sales Net Sales YoY Drivers 4Q19 FY19 Volume growth 13.3 18.0 Volume 53rd week ~8.0 ~2.0 Sales in Transit (as discussed F4Q18) ~8.0 ~2.0 29.3 22.0 Trade Promo 1.6 1.4 Non—price related Trade -2.3 -2.1 Net sales growth +28.6% +21.3% IRI retail takeaway / point-of-sales growth 1 +14.1% +
Slide 15: Income Statement Updates
Income Statement Updates Distribution and warehousing costs now included in Cost of goods sold Selling and marketing expenses combined - Lag effect of F4Q19 advertising positions us to get off to a good start to the year, but timing affects F1H20 Adjusted EBITDA growth Marketing Expense F1H19 F2
Slide 16: Q4 FY19 – Solid Net Sales and Profit Growth
Q4 FY19 – Solid Net Sales and Profit Growth Fiscal 4th Quarter 2019 vs. Year Ago Period Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 28.6% Year-Over-Year 27.9% Year-Over-Year 33.0% Year-Over-Year Growth Growth Growth $139.2 $59.2 $108.3 42.5% $46.3 $24.1 42.7% 17.3%
Slide 17: A Successful Year Across Key Metrics
A Successful Year Across Key Metrics Full Year Fiscal 2019 vs. Fiscal 2018 Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 21.3% Year-Over-Year 20.5% Year-Over-Year 25.6% Year-Over-Year Growth Growth Growth $523.4 $431.4 $217.4 41.5% $180.4 $98.7 41.8% $78.6 18.9% 18.2%
Slide 18: Balance Sheet & Cash Flow Highlights
Balance Sheet & Cash Flow Highlights Cash generated by operating activities of $73.0 million and net cash provided by financing activities of $83.4 million Solid balance sheet and cash flow provides financial flexibility to support future growth and pay down debt related to the Quest acquisition
Slide 19: Summary
Summary We are confident in our ability to deliver our plan and capture growth opportunities in fiscal 2020 Full Year 2020 Outlook: Anticipate full-year reported net sales growth to be at the high end of the Company’s long-term target of +4-6% - 53rd week in fiscal 2019 is about a 2 ppt. headw
Slide 20: Q&A
Q&A Simply ¥Good FOODS COMPANY”
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