B&g Foods, Inc. · NYSE:BGS
B&g Foods — Debt Investor Presentation (September 2023)
24 slides from B&g Foods's debt investor presentation, Sep 12, 2023
Slide 1: Confidential Investor Presentation 09.12.2023
Confidential Investor Presentation 09.12.2023
Slide 2: Disclaimer
Confidential Disclaimer 2 This presentation, the information contained herein and the materials accompanying it (this “presentation”) has been prepared solely for informational purposes supplied by or on behalf of, and constitutes confidential information of, B&G Foods, Inc. and its direct and indir
Slide 3: Forward Looking Statements
Confidential Forward Looking Statements 3 Various statements contained in this presentation, the offering memorandum and the documents incorporated by reference in the offering memorandum contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. W
Slide 4: Non-GAAP Measures and Unaudited Financial Information
Confidential Non-GAAP Measures and Unaudited Financial Information 4 Base business net sales, EBITDA, Adjusted EBITDA, Adjusted EBITDA (before share-based compensation), Covenant Adjusted EBITDA, Adjusted EBITDA less Capex, and Adjusted EBITDA margin as presented in this presentation, are supplement
Slide 5: Today's Presenters
5 Confidential Today’s Presenters 5 Bruce Wacha, Exec. Vice President of Finance and CFO Casey Keller, President and CEO
Slide 6: Transaction Overview
6 Confidential Transaction Overview
Slide 7: Summary Overview
7 Confidential Summary Overview Note: Adj. EBITDA and Covenant Adj. EBITDA are non-GAAP measures. Please refer to p. 4 and the non-GAAP reconciliation schedule on p. 23 for further detail. 1. All ratios are based on Covenant Adj. EBITDA, which reflects Adj. EBITDA before share-based compensation and
Slide 8: As Adjusted Capitalization
8 Confidential As of July 1, 2023 Actual Adj. As Adjusted Adj. As Further Adjusted Cash & Equivalents $43 54 $97 (63) $33 Revolving Credit Facility (3) 280 -- 280 -- 280 Term Loan B 551 -- 551 -- 551 New Secured Notes -- -- -- 500 500 Total First Lien Debt $831 $831 $1,331 5.25% Senior Notes due 202
Slide 9: Summary Terms – Senior Secured Notes
9 Confidential Summary Terms – Senior Secured Notes 9 Issuer: B&G Foods, Inc. (the “Issuer”) Description: $500mm Senior Secured Notes due 2028 Maturity: 5 years Use of Proceeds: Partial redemption of existing Senior Notes due 2025 Security: Same as existing Credit Agreement, including, without limit
Slide 10: Timeline
10 Confidential Timeline 10 U.S. Bank Holiday Key Transaction Date September 2023 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Timing Event September 12 Launch notes offering, Investor Call ([12:30]PM EST) Price and allocate Notes September 26 Closin
Slide 11: Organizational Chart
11 Confidential Organizational Chart 11 Key: Borrower Guarantors Non-Guarantors • $800mm Revolving Credit Facility • $551mm Term Loan B due 2026 • $500mm New Secured Notes due 2028 • Approx. $300mm Senior Notes due 2025 • $550mm Senior Notes due 2027 B&G Foods North America, Inc. Operating Company D
Slide 12: Company Highlights
12 Confidential Company Highlights
Slide 13: Key Investment Highlights
13 Confidential • Acquire and operate established food brands and maintain relevancy with today’s consumer • Proven cash flow driven M&A at accretive multiples • Target moderate top line growth across portfolio • Maximize growth of high potential brands / manage other brands for flat to moderate gro
Slide 14: We Have Assembled a Portfolio of More than Brands
14 Confidential We Have Assembled a Portfolio of More than 50 Brands 14 1. Emeril’s® is a registered trademark of Marquee Brands used under license. 2. Crock-Pot® is a registered trademark of Sunbeam Products, Inc. used under license. 3. Skinnygirl™ is a trademark of SG Marks, LLC used under license
Slide 15: A Portfolio of Large, Established & Defensible Niche Brands
15 Confidential A Portfolio of Large, Established & Defensible Niche Brands 15 plus Spices + Seasonings accounted for ~74% or $1.6 billion of FY2022 net sales 7 BRANDS $400+ Million $100-$399 Million $50-$99 Million <$50 Million ANNUAL NET SALES BY BRAND
Slide 16: We Have Four Business Units
16 Confidential We Have Four Business Units 16 Meals 24% Specialty 33% Frozen & Vegetables 23% Spices & Flavor Solutions 20% Q2-2023 Net Sales by Category (Approximate)
Slide 17: We Have Four Business Units
17 Confidential We Have Four Business Units 17 ▪ We began transitioning to four Business Units in August 2022 – Frozen & Vegetables, Meals, Specialty and Spices & Flavor Solutions ▪ These Business Units clarify the portfolio focus and future platforms for acquisitions, and push accountability down t
Slide 18: Financial Update
18 Confidential Financial Update
Slide 19: 1H2023 vs. 1H2022 Performance
19 Confidential $114 $140 89.6% 93.0% 1H2022 1H2023 $987 $981 1H2022 1H2023 ($6mm) (0.6%) $127 $151 12.6% 15.4% 1H2022 1H2023 1H2023 vs. 1H2022 Performance 19 Note: 1H2023 represents the twenty-six weeks ended July 1, 2023; 1H2022 represents the twenty-six weeks ended July 2, 2022. 1. Base Business
Slide 20: Demonstrated Commitment to Debt Reduction
20 Confidential Demonstrated Commitment to Debt Reduction 20 • Following the sale of Back to Nature in January 2023, B&G Foods used nearly all of the net proceeds to repay $50.0mm of Term Loan B Asset Sale Proceeds • Concurrently with debt repayment from the Back to Nature sale proceeds, B&G Foods a
Slide 21: Capitalization & Statistics
21 Confidential Capitalization & Statistics 21 Note: Adj. EBITDA, Adj. EBITDA (before SBC) and Covenant Adj. EBITDA are non-GAAP measures. Please refer to p. 4 and the non-GAAP reconciliation schedule on p. 23 for further detail. 1. As Adjusted Cash and 5.25% Senior Notes due 2025 balances reflect n
Slide 22: Historical Financial Performance
22 Confidential Historical Financial Performance 22 ($ in millions) Fiscal Year LTM Ended 2020 2021 2022 July 1, 2023 Net Sales $1,968 $2,056 $2,163 $2,133 % growth 18.5% 4.5% 5.2% -- Gross Profit $482 $437 $410 $448 % margin 24.5% 21.3% 18.9% 21.0% Adj. EBITDA (1) $361 $358 $301 $325 % margin 18.4%
Slide 23: Non-GAAP Reconciliations – Net Income to EBITDA and Adjusted EBITDA
23 Non-GAAP Reconciliations – Confidential Net Income to EBITDA and Adjusted EBITDA 23 ($ in millions) Fiscal Year LTM Ended 2020 2021 2022 July 1, 2023 Net Income (Loss) $132 $67 ($11) $24 $14 ($21) Income Tax Expense (Benefit) 45 26 (8) 6 24 10 Interest Expense, Net 102 107 125 57 75 143 Depreciat
Slide 24: Non-GAAP Reconciliations – Net Sales to Base Business Net Sales
24 Non-GAAP Reconciliations – Confidential Net Sales to Base Business Net Sales 24 1. Reflects net sales from the Yuma acquisition, for which there is no comparable period of net sales during the first four months of the first two quarters of 2022. The Yuma acquisition was completed on May 5, 2022.
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