The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q3 2019 Earnings Presentation
18 slides from The Simply Good Foods's earnings presentation, Jul 2, 2019
Slide 1: Third Quarter Fiscal Year 2019 Earnings Conference Call & Webcast Presentation
Third Quarter Fiscal Year 2019 Earnings Conference Call & Webcast Presentation July 2, 2019
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
Slide 3: Today's Speakers and Agenda
TODAY’S SPEAKERS AND AGENDA Speakers Agenda \ Mark Pogharian Introduction VP, Investor Relations Joe Scalzo Third Quarter 2019 Highlights Chief Executive Officer Business Update Todd Cunfer Financial Summary Chief Financial Officer Q&A 2
Slide 4: Joseph E. Scalzo, President and Chief Executive Officer
JOSEPH E. SCALZO PRESIDENT AND CHIEF EXECUTIVE OFFICER 3
Slide 5: 3rd Quarter Fiscal 2019 Highlights
3rd QUARTER FISCAL 2019 HIGHLIGHTS Delivered strong financial results, exceeded our expectation Atkins marketplace performance continued to be robust with retail takeaway up 19.5%, versus year ago comp of +9.8% E-commerce business strong, in-line with our expectations Nutritional snacking ca
Slide 6: 3rd Quarter Highlights: Revenue & Profit Growth
3rd QUARTER HIGHLIGHTS: REVENUE & PROFIT GROWTH Business Momentum Continues $139.5 Driven by: Volume +32.0% $107.2 Trade Promo + 1.0% Non-price Related Trade - 2.9%2 Driven by: + Higher Sales + Gross profit increase driven primarily by higher sales; gross margin impacted by previously mentioned sell
Slide 7: Consumption Growth Has Been Consistent
CONSUMPTION GROWTH HAS BEEN CONSISTENT Total Atkins U.S. Snacking Point of Sale Data % Change vs. Year Ago +21.7% +20.7% +19.5% Period end 5/26/19: 39-weeks 26-weeks 13-weeks 6 Note: Bars/graphs not to scale
Slide 8: Retail Takeaway by Form
RETAIL TAKEAWAY BY FORM Solid performance across all forms driven by marketing strategy that focuses on communicating nutritional benefits of the Atkins branded products Atkins U.S. Point of Sale Data by Form % Change vs. Year Ago Bars RTD / Shakes Confections Total Atkins +27.9% +21.1% +19.5% +18.9
Slide 9: Base Velocity Growth
BASE VELOCITY GROWTH Atkins Year-to-Date U.S. Snacking Point of Sale Drivers of Growth +21.7% Base Distribution Promotions 3Q19 YTD Velocity Source: IRI/MULO; 13-weeks ended 5/26/19 8 Note: Bars/graphs not to scale
Slide 10: New Ad Copy Delivering
NEW AD COPY DELIVERING New ad copy delivering desired results and resonating with consumers Driving New Buyers and Consumption in throughout fiscal 2019 # (mil) Buy Rate Loyalty Total Buyers 9
Slide 11: New Products Performing Well
NEW PRODUCTS PERFORMING WELL Distribution / ACV in-line with our target Retail velocity slightly better than planned 10
Slide 12: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS On pace for another strong year, with net sales growth exceeding our long-term target, although challenging comps in Q4 Total Atkins U.S. Snacking Point of Sale Data* Q1 Q2 Q3 June* July Aug. Q4 2019 +23.5% +22.1% +19.5% +16.2% TBD TBD TBD 2018 +5.5% +4.7% +9.8% +16.6
Slide 13: Todd Cunfer, Chief Financial Officer
TODD CUNFER CHIEF FINANCIAL OFFICER 12
Slide 14: 3Q19 - Solid Sales and Profit Growth
3Q19 - SOLID SALES AND PROFIT GROWTH Fiscal 3rd Quarter 2019 vs. Year Ago Period Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 30.1% Year-Over-Year 27.3% Year-Over-Year 38.8% Year-Over-Year Growth Growth Growth $139.5 $65.3 $107.2 46.8% $51.3 $24.9 47.8% 17.8% $17.9 1
Slide 15: YTD 2019 Results Strong Across Key Metrics
YTD 2019 RESULTS STRONG ACROSS KEY METRICS Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 18.9% Year-Over-Year 18.0% Year-Over-Year 23.3% Year-Over-Year Growth Growth Growth $384.2 $323.2 $182.0 47.4% $154.3 $74.6 47.7% $60.5 19.4% 18.7% 3Q18 YTD 3Q19 YTD 3Q18 3Q19 3Q1
Slide 16: Balance Sheet & Cash Flow Highlights
BALANCE SHEET & CASH FLOW HIGHLIGHTS Solid balance sheet and cash flow provides financial flexibility to support future growth; both organic and M&A Year-to-date cash generated by operating activities $52.6 million and net cash provided by financing activities $84.3 million Company has repurch
Slide 17: Summary
SUMMARY Full Year 2019 Outlook: Anticipate full-year net sales and adjusted EBITDA growth to be similar to the year-to-date percentage increase Full year outlook reflects: - Significantly more challenging POS comps in 4Q19 and expectation that retail takeaway will sequentially slow - Increment
Slide 18: Q&A
Q&A Simply ¥Good FOODS COMPANY”
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