The Simply Good Foods Company · NASDAQ:SMPL

The Simply Good Foods — Q3 2018 Earnings Presentation

17 slides from The Simply Good Foods's earnings presentation, Jul 10, 2018

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

    THIRD QUARTER FISCAL YEAR 2018 EARNINGS CONFERENCE CALL & WEBCAST PRESENTATION July 10, 2018 0 0

  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 & Agenda

    TODAY’S SPEAKERS & AGENDA Speakers Agenda \ Mark Pogharian  Introduction V. President Investor Relations Joe Scalzo  Third Quarter 2018 Highlights Chief Executive Officer  Business Update Todd Cunfer  Financial Summary Chief Financial Officer  Q&A 2

  4. Slide 4: Third Quarter Fiscal 2018 Highlights

    THIRD QUARTER FISCAL 2018 HIGHLIGHTS 3

  5. Slide 5: 3rd Quarter Highlights: Revenue & Profit Growth

    3RD QUARTER HIGHLIGHTS: REVENUE & PROFIT GROWTH Net Sales Momentum Continues $107.2 $96.5 Driven by: + Volume ~6.5 ppt + Favorable Trade ~4.6 ppt Driven by: + Higher Sales / Favorable Trade - Partially offset by capability and $17.9 $14.8 business investments 3Q17 3Q18 4

  6. Slide 6: Growth Across All Major Channels

    GROWTH ACROSS ALL MAJOR CHANNELS Year-to-Date F3Q18 Atkins F3Q18 Highlights U.S. Snacking Gross Sales By Channel Gross Sales Drug E-Commerce 4%  F3Q18 gross sales growth Club 4% across all major channels 9%  E-commerce gross sales up 46% Grocery Mass +71% YTD 37% 5

  7. Slide 7: Retail Takeaway Momentum...

    RETAIL TAKEAWAY MOMENTUM… On pace for a 10th consecutive year of retail sales growth Atkins U.S. Snacking Point of Sale Scanner Data % Chg. Vs. Year Ago +9.8% +6.9% +6.1% Period End 5/27/18: 52-wk 39-wk FYTD 13-wk Source: IRI / MULO 6

  8. Slide 8: ...Driven by Base Volume Velocity Growth

    …DRIVEN BY BASE VOLUME VELOCITY GROWTH Atkins U.S. Snacking Point of Sale Drivers of Growth +9.8% F3Q17 Base Distribution Feature & F3Q18 Velocity Display Source: IRI/MULO; 13-weeks ended 5/27/18 7

  9. Slide 9: Strategic Initiatives Driving Growth

    STRATEGIC INITIATIVES DRIVING GROWTH NEW MARKETING CAMPAIGN CLEAN LABEL: FEWER, RECOGNIZABLE INGREDIENTS IMPROVED / REFRESHED PACKAGING NEW PRODUCTS 8

  10. Slide 10: Investments to Drive Near-Term & Future Growth

    INVESTMENTS TO DRIVE NEAR-TERM & FUTURE GROWTH Strong results and marketplace performance provides financial flexibility across the business Brand Investments Capabilities • Incremental brand • Additions to improve building, advertising organizational and go-to-market capabilities in key strategies

  11. Slide 11: Strategic Sourcing Initiative

    STRATEGIC SOURCING INITIATIVE Initiative to maintain strong gross margin (2) Co-manufacturing Procurement Logistics 10

  12. Slide 12: Financial Overview

    FINANCIAL OVERVIEW Simply yGood

  13. Slide 13: 3Q18 - Strong Net Sales Growth and Margin Expansion

    3Q18 - Strong Net Sales Growth and Margin Expansion Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 11.1% Year-Over- 17.7% Year-Over- 21.4% Year-Over-Year Year Growth Year Growth Growth $107.2 $51.3 $17.9 $96.5 $43.6 47.9% 47.8% $14.8 45.1% 47.8% 15.3% 16.7% 18.7% 18.1%

  14. Slide 14: YTD 2018 Results Strong Across Key Metrics

    YTD 2018 Results Strong Across Key Metrics Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 8.2% Year-Over-Year 11.1% Year-Over-Year 9.7% Year-Over-Year Growth Growth Growth $323.2 $298.6 $154.3 $60.5 $138.9 47.9% $55.1 46.5% 47.7% 18.5% 18.7% 18.7% 18.1% F3Q17 YTD F3Q18

  15. Slide 15: Balance Sheet Highlights

    Balance Sheet Highlights  Solid balance sheet and cash flow provide financial flexibility to support future growth  As of May 27, 2018, the Company has Cash of $88.4 million and a $199 million Term Loan (Libor +350 bps), resulting in a pro forma Net Debt to Adjusted EBITDA ratio for the LTM of ~1.

  16. Slide 16: Summary

    Summary  Confident in near and long term growth opportunities and ability to execute against our strategic initiatives  Incremental investments in business delivered solid growth  Full Year 2018 Outlook: - Net Sales growth rate to be similar to the year-to-date rate - Adjusted EBITDA growth rate

  17. Slide 17: Q&A

    Q&A Simply yGood FOODS COMPANY™

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