The Simply Good Foods Company · NASDAQ:SMPL

The Simply Good Foods — Q4 2018 Earnings Presentation

18 slides from The Simply Good Foods's earnings presentation, Oct 24, 2018

  1. Slide 1: Fourth Quarter Fiscal Year 2018 Earnings Conference Call & Webcast Presentation

    FOURTH QUARTER FISCAL YEAR 2018 EARNINGS CONFERENCE CALL & WEBCAST PRESENTATION October 24, 2018

  2. Slide 2: Disclaimer

    DISCLAIMER Forward Looking Statements This presentation contains certain statements made herein that 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

  3. Slide 3: Today's Speakers and Agenda

    TODAY’S SPEAKERS AND AGENDA Speakers Agenda Mark Pogharian  Introduction VP, Investor Relations Joe Scalzo  Full Year and Fourth Chief Executive Officer Quarter 2018 Highlights  Business Update Todd Cunfer  Financial Summary Chief Financial Officer  Q&A 2

  4. Slide 4: Joseph E. Scalzo

    JOSEPH E. SCALZO PRESIDENT AND CHIEF EXECUTIVE OFFICER 3

  5. Slide 5: Fiscal 2018 Highlights

    FISCAL 2018 HIGHLIGHTS  Delivered strong financial results with full year net sales growth exceeding our long-term target  Executed on our strategy of targeting and reaching lifestyle-orientated consumers  Point of sale growth of 10.1% resulting in 10 consecutive years of U.S. snacking point of s

  6. Slide 6: 4th Quarter Highlights: Revenue & Profit Growth

    4th QUARTER HIGHLIGHTS: REVENUE & PROFIT GROWTH Business Momentum Continues $108.3 Driven by: +Volume +13.2 ppt4 $97.6 - Wellness Foods Canada2 -1.0 ppt4 - Product recall reimb.3 -1.2 ppt4 ---------------------------------------- Note: In 4Q18 the Company deferred revenue for sales in transit at the

  7. Slide 7: Growth Across All Major Channels

    GROWTH ACROSS ALL MAJOR CHANNELS Fiscal 2018 Atkins U.S. Snacking Gross Sales By Channel Gross Sales Commentary Drug E-Commerce  Sales growth across all major 4% Club 4% channels in 4Q18 and for the 9% full-year 47% Mass  E-commerce gross sales up Grocery +63% in Fiscal 2018 36% 6

  8. Slide 8: Retail Takeaway Momentum

    RETAIL TAKEAWAY MOMENTUM Sequentially greater across all periods Atkins U.S. Snacking Point of Sale Data % Change vs. Year Ago +23.2% +19.5% +10.1% Period end 8/26/18: 52-weeks 13-weeks 4-weeks 7 Note: Bars/graphs not to scale

  9. Slide 9: Base Velocity Growth...

    BASE VELOCITY GROWTH... Atkins U.S. Snacking Point of Sale Drivers of Growth +19.5% Base Feature & 4Q18 4Q17 Velocity Distribution Display Source: IRI/MULO; 13-weeks ended 8/26/18 8 Note: Bars/graphs not to scale

  10. Slide 10: ...As Our Message Resonates with the 32 Million Self Directed Low Carb Consumer

    …AS OUR MESSAGE RESONATES WITH THE 32 MILLION SELF DIRECTED LOW CARB CONSUMER… Historically Targeted Atkins Segment Approach by Atkins? Buyer? Branded Program: Historical Target ● 8 million consumers open to low carb ~21 million consumers ● ~28% market share (~ 3 million (19% of total) consumers) Op

  11. Slide 11: Building on Our Strategy in Fiscal 2019

    BUILDING ON OUR STRATEGY IN FISCAL 2019 INTEGRATED MARKETING & INNOVATION ●Advertising and marketing increase in-line with net sales growth ● Redesigned website (desktop and mobile) ● Re-energized social media ● Pipeline of new products with a balance between forms, segments, and brands 10

  12. Slide 12: Todd Cunfer - Financial Overview

    FINANCIAL OVERVIEW TODD CUNFER CHIEF FINANCIAL OFFICER 11

  13. Slide 13: Change in Net Sales

    CHANGE IN NET SALES Net Sales YoY Drivers 4Q18 FY18 Volume growth 13.2 ppt 8.3 ppt Wellness Foods Canada -1.0 ppt 0.9 ppt Product recall reimbursement -1.2 ppt -0.3 ppt Net sales growth +11.0% +8.9% Sales in transit impact on net sales 8.1 ppt 2.0 ppt IRI retail takeaway / point-of-sales growth +19.

  14. Slide 14: Strong Sales Growth & Gross Margin Expansion

    STRONG SALES GROWTH & GROSS MARGIN EXPANSION Fiscal 4th Quarter 2018 vs. Year Ago Period Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 11.0% Year-Over- 12.4% Year-Over- 4.2% Year-Over-Year Year Growth Year Growth Growth $108.3 $53.3 $18.1 $97.6 $47.4 $17.4 48.6% 49.2%

  15. Slide 15: A Successful Year Across Key Metrics

    A SUCCESSFUL YEAR ACROSS KEY METRICS Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 8.9% Year-Over-Year 11.5% Year-Over-Year 8.4% Year-Over-Year Growth Growth Growth $431.4 $396.2 $207.6 $78.6 $186.2 $72.5 47.0% 48.1% 18.3% 18.2% FY17 FY18 FY17 FY18 FY17 FY18 (1) Dolla

  16. Slide 16: Balance Sheet Highlights

    BALANCE SHEET HIGHLIGHTS  As of August 25, 2018, the Company has cash of $112 million and a $198.5 million term loan (Libor +350 bps), resulting in a Net Debt to Adjusted EBITDA ratio for the LTM of ~1.1-times  The Company also has a $75.0 million revolving line of credit not currently being utili

  17. Slide 17: Summary

    SUMMARY  We are confident in our ability to execute to capture growth opportunities in fiscal 2019  Full Year 2019 Outlook:  Net sales expected to be slightly higher than the long-term target of 4% to 6%  Reflects anticipated solid volume growth in the first-half, moderating in the second- half

  18. Slide 18: Q&A

    Q&A Simply yGood

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