B&g Foods, Inc. · NYSE:BGS
B&g Foods — Q3 2008 Earnings Presentation
11 slides from B&g Foods's earnings presentation, Oct 30, 2008
Slide 1: Q3 2008 Earnings Call October 30, 2008
Q3 2008 Earnings Call October 30, 2008
Slide 2: Forward-Looking Statements
1 Forward-Looking Statements Statements in this presentation that are not statements of historical or current fact constitute “forward-looking statements.” The forward-looking statements contained in this presentation include, without limitation, statements related to our expectations regarding cost
Slide 3: About Non-GAAP Financial Measures
2 About Non-GAAP Financial Measures Certain disclosures in this presentation include “non-GAAP (Generally Accepted Accounting Principles) financial measures.” A non-GAAP financial measure is defined as a numerical measure of financial performance that excludes or includes amounts so as to be differe
Slide 4: Consolidated Statements of Operations Data
3 Consolidated Statements of Operations Data ($ in millions, except per share data) % of Net Sales % of Net Sales Net Sales 116.5 $ 117.0 $ Gross Profit 30.7 $ 26.4% 38.3 $ 32.7% Sales, Marketing & Distribution 10.8 $ 9.3% 13.1 $ 11.2% G&A 2.1 $ 1.8% 3.4 $ 2.9% Operating Income 16.2 $ 13.9% 20.2 $ 1
Slide 5: Significant Cash Flow Before Dividends
4 Significant Cash Flow Before Dividends (1) Excludes the impact of expected severance and termination charges of $0.8 million in the fourth quarter of 2008. (2) The aggregate annual dividend payment amount for 2009 assumes 36,796,988 shares of Class A common stock outstanding. Dividend payments in
Slide 6: Capitalization
5 Capitalization ($ in millions) Projected Actual 12 Months Sept Ended Dec 2008 2008 Revolving Credit Facility Due Jan 2011 ($21.9 million of Revolving Credit Commitments) $0.0 $0.0 Term Loan Due Feb 2013 130.0 130.0 8% Senior Notes Due Oct 2011 240.0 240.0 12% Senior Subordinated Notes Due Oct 2016
Slide 7: Net Sales Third Quarter 2008 vs Third Quarter 2007
6 Net Sales Third Quarter 2008 vs Third Quarter 2007 • Net sales decreased $0.5 million to $116.5 million for the third quarter of 2008 from $117.0 million for the third quarter of 2007. • Recently implemented price increases improved net sales by $4.7 million during the third quarter of 2008, offse
Slide 8: Guidance
7 Guidance • Fourth quarter 2008 EBITDA excluding the impact of $0.8 million in severance and termination charges is expected to be relatively flat as compared to our fourth quarter 2007 EBITDA of $24.3 million. • Full year 2009 EBITDA is expected to be within the range of $95.0 to $98.0 million.
Slide 9: Projected 2009 Major Product Cost Increases (Decreases)
8 Projected 2009 Major Product Cost Increases (Decreases) ($ in thousands) Commodities 2009 Projected Increases (Decreases) Wheat (3,400) $ Beans 2,300 Fruit 1,100 Fresh Produce 300 Corn 200 Total Commodities 500 $ Packaging Cans/Lids 7,800 $ Glass 2,600 Corrugate 400 Plastic 200 Total Packaging 11,
Slide 10: Dividend Policy
9 Dividend Policy On October 24th we declared our 17th consecutive quarterly dividend • From October 2004 through the dividend payment we made on October 30, 2008, the dividend rate for our Class A common stock was $0.848 per share per annum, or $0.212 per quarter. • Beginning with the dividend paym
Slide 11: Rationale For Reduction in Dividend Rate
10 Rationale For Reduction in Dividend Rate • The quarterly dividend rate has been reduced by approximately 20%, to $0.17 per share from $0.212 per share, to increase investor confidence that the dividend is sustainable for the foreseeable future. • The new dividend rate provides for a portion of ou