John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Investor Presentation (May 2016)
62 slides from John B. Sanfilippo & Son's investor presentation, May 18, 2016
Slide 1: JBSS Investor Presentation May 2016
JBSS INVESTOR PRESENTATION May 2016 NASDAQ - JBSS Exhibit 99.1
Slide 2: Forward-Looking Statements
Some of the statements in this presentation and any statements by management constitute “forward-looking statements” about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the mar
Slide 3: Who is JBSS?
• One of the largest nut processors in the world with fiscal 2015 annual net sales in excess of $887 million • State-of-the-art nut processing capabilities, including what we believe is the single largest nut processing facility in the world • A North American market leader in every major selling ch
Slide 4: We Are Experts In Every Nut Type
Fiscal Year 2015 13.7% 11.0% We Are Experts In Every Nut Type % of total gross sales * Other consists of trail and snack mixes which include nut products Full assortment of nut types Full variety of value-added products Wide variety of dried fruit and other snack products Customized, unique product
Slide 5: Consistent success over past fiscal years
Consistent success over past 4 fiscal years Diluted EPS improvement of 65% from FY12 to FY15 Net Sales increased by 27% over FY14 to a record $887.2 million $ $ 1.58 1.98 2.36 2.61 0.5 1.5 2.5 FY12 FY13 FY14 FY15 Diluted EPS FY 12-FY 15
Slide 6: Continuing to Create Shareholder Value
Continuing to Create Shareholder Value Outperformed the Russell 2000 Index by over 20%! JBSS Russell 2000 Stock Price $50.03 05/13/2015 Stock Price $56.62 05/12/2016
Slide 7: Vision and Core Values
Vision To be the global source for nuts, committed to quality, expertise and innovation that delivers an unmatched experience to our customer and consumer Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation
Slide 8: The Global Source for Nuts
JOHN B. SANFILIPPO & SON, INC. The Global Source for Nuts®
Slide 9: Building Our Future
aes JOHN B. SANFILIFPO < SON, INC. BUILDING OUR FUTURE. ———— JOHN B. SANFILIPPO & SON, INC. my CREATE VALUE WITH KEY CUSTOMERS Build Fisher and Orchard Valey Harvest int leading + Be the prefered partner to bul prftable volume ot rutbrands. valie-added nut and sack products Utize consumer insights t
Slide 10: Fisher FY 2015 Accomplishments
Fisher recipe nuts increased market share by +2.2 points*. Fisher snack nuts market share growth in high franchise Midwest. Orchard Valley Harvest expanded distribution and increased velocity resulting in double- digit revenue growth over FY 2014. FY 2015 Accomplishments *Source: IRI: Total Nut Cate
Slide 11: FY 2015 Accomplishments: contract manufacturing and ingredients
Leveraged our innovation capabilities to launch 15 new items for our key contract manufacturing customers. Optimized Food Service and Industrial ingredient customer and product portfolios. Expanded Fisher brand awareness in the Commercial Ingredients channel. FY 2015 Accomplishments
Slide 12: The Global Source for Nuts
JOHN B. SANFILIPPO & SON, INC. The Global Source for Nuts®
Slide 13: Steady Increase in Nut Retail Prices
Steady Increase in Nut Retail Prices Since FY 2011 Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 YTD Q3 data ending 3/27/16 +32% Since FY 2011 $4.63 $5.24 $5.54 $5.62 $5.85 $6.09 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 YTD Q3 Price Per Pound Source: IRI: Total Nut Category – Multi Out
Slide 14: Retail Prices Up Across Most Major Nut Types
Retail Prices Up Across Most Major Nut Types over the Last 4 Years 48.0% 43.0% 39.0% 38.0% 37.0% 21.0% 15.0% 13.0% % Increase in Price Per Pound Over the Past 4 Years ALMOND PISTACHIO MIXED NUTS CASHEW WALNUT MACADAMIA NUT PEANUT PECAN Source: IRI: Total Nut Category – Multi Outlet Geography Time Pe
Slide 15: Steady Category Growth
Steady Category Growth 4,749 5,284 5,636 5,885 6,092 6,248 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 52 Wks Ending 3/27/16 Category $ Sales (M) 1,025 1,008 1,017 1,046 1,041 1,035 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 52 Wks Ending 3/27/16 Category Pound Sales (M) Source: IRI: Total Nut Category – M
Slide 16: The Global Source for Nuts
JOHN B. SANFILIPPO & SON, INC. The Global Source for Nuts®
Slide 17: Fiscal 2015 Net Sales $887 Million
$529 Fiscal 2015 Net Sales $887 Million Business Channel Diversification (Millions of $) $36 $207 $115 Commercial Ingredients 23% Contract Pkg. 13% Consumer 60% Export 4%
Slide 18: Consumer Channel Net Sales
Fiscal 2015 Net Sales $529 Million Consumer 60% vs. FY ‘14 FY 2015 Consumer Channel 16.7%
Slide 19: Commercial Ingredients Channel
Fiscal 2015 Net Sales $207 Million FY 2015 Commercial Ingredients Channel vs. FY ‘14 Commercial Ingredients 23% 7.3%
Slide 20: Contract Packaging Channel
FY 2015 Contract Packaging Channel Fiscal 2015 Net Sales $115 Million 17.0% vs. FY '14 Contract Packaging 13%
Slide 21: Export Channel
FY 2015 Export Channel Fiscal 2015 Net Sales $36 Million Export 4% 6.0% vs. FY ‘14
Slide 22: Financial Milestones
FY 2015 Financial Milestones
Slide 23: Stockholders' Equity
JBSS Stockholders’ Equity FYs 1991- In millions of $
Slide 24: Net Sales
JBSS Net Sales FYs 1991- Increased pound volume and prices De-emphasized Industrial Sales, Lower Prices Low Carb Diet Run Up $887 million In millions of $
Slide 25: Total Outstanding Debt
JBSS Total Outstanding Debt FYs 1991- In millions of $
Slide 26: Total Outstanding Debt As % of Net Sales
JBSS Total Outstanding Debt As % of Net Sales FYs 1991 –
Slide 27: EBITDA
EBITDA EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America ("GAAP"), and does not represent cash flow from opera
Slide 28: Reconciliation of Net Income (Loss) to EBITDA
Reconciliation of Net Income (Loss) to EBITDA (In $,000's) FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 NET INCOME (LOSS) 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 INTEREST EXPENSE 3,998 6,516 9,347 10,502 7,646 5,653 6,444 5,364
Slide 29: EBITDA
EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure
Slide 30: EBITDA Margin
EBITDA* Margin (% of Net Sales) * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure
Slide 31: Peanut and Tree Nut Spot Market Prices vs. JBSS Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN %
Slide 32: Highlights: Q3 2016 vs. Q3 2015
$ CHANGE % CHANGE Highlights: Q3 2016 vs. Q3 2015 (in $000’s except EPS) NET SALES $6,346 3.0% SALES VOLUME (LBS.) 3,583 6.0% GROSS PROFIT $4,196 14.1% NET INCOME $3,440 52.8% EARNINGS PER SHARE $0.31 53.4% OPERATING CASH FLOWS $5,540 11.9% TOTAL DEBT $22,850 20.6%
Slide 33: Highlights: Q3 YTD 2016 vs. Q3 YTD 2015
$ CHANGE % CHANGE Highlights: Q3 YTD 2016 vs. Q3 YTD 2015 (in $000’s except EPS) NET SALES $54,715 8.2% SALES VOLUME (LBS.) 10,100 5.3% GROSS PROFIT $6,093 6.2% NET INCOME $2,282 11.0% EARNINGS PER SHARE $0.18 9.7% OPERATING CASH FLOWS $49,459 > 100% TOTAL DEBT $22,850 20.6%
Slide 34: Brand Marketing Overview
FY 2015 Brand Marketing Overview
Slide 35: Grow Brands
Grow Brands Recipe Nuts Snack Nuts
Slide 36: Total Fisher Brand Growth FY15 vs. FY14
Total Fisher Brand Growth FY15 vs. FY14 +8% +14% Strong Growth on the Fisher brand in FY15 Recipe Nuts Snack Nuts POUND SALES DOLLAR SALES Source: JBSS shipment data
Slide 37: Recipe Nuts
Recipe Nuts
Slide 38: Fisher Recipe has Grown Market Share
Fisher Recipe has Grown Market Share Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY YTD Q3 Data Ending 3/27/16
Slide 39: Strong, Sustained Growth for Fisher Recipe
Strong, Sustained Growth for Fisher Recipe for 4+ Fiscal Years Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY YTD Q3 Data Ending 3/27/16 9.7% 20.5% 12.8% 15.4% 9.1% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 YTD Q3 Fisher Recipe Dollar Sales % Change vs. Previous Year Total US MUL
Slide 40: No Preservatives Message Key Driver for Share Growth
“ No Preservatives” Message Key Driver for Share Growth
Slide 41: Food Network Sponsorship
Continue to Build Fisher Brand Equity with Food Network Sponsorship
Slide 42: Integrated Marketing Key to Building Brand Equity
Website Social Media Public Relations Food Network Email Integrated Marketing Key to Building Brand Equity
Slide 43: Merchandised Foodservice Location
Merchandised Foodservice Location Building Brand Presence and Equity “Away From Home ”
Slide 44: Snack Nuts
Snack Nuts
Slide 45: Fisher Snack Nut Strategy Focuses on Midwest
Fisher Snack Nut Strategy Focuses on Midwest High Franchise Markets
Slide 46: Growing our Pound Share in High Franchise Markets
We Are Growing our Pound Share in High Franchise Markets 2.2% 3.1% 3.5% 4.0% 4.7% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 YTD Q3 Fisher Snack Nuts Pound Share (High Franchise Markets) Snack Nuts Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis Mul
Slide 47: Driving Results on our Core Dry Roast Peanut Business
Driving Results on our Core Dry Roast Peanut Business 535,681 652,052 777,756 888,805 FY2013 FY2014 FY2015 CY 2015 Pound Sales – Fisher Dry Roast Peanuts Source: IRI: Total Snack Nut Category – Core Geography MULO Chicago, Milwaukee, Minneapolis, and St. Louis – Calendar 2015 Ending 12/27/15
Slide 48: New Look for Fisher Snack Nuts
New Look for Fisher Snack Nuts
Slide 49: A Snack Bite Combining Consumer Favorites
A Snack Bite Combining Consumer Favorites
Slide 50: Fisher Nut Exactly Great Popcorn Varieties
Introducing Fisher Nut Exactly 4 Great Popcorn Varieties for Grocery Channel Unique Varieties for the Club Channel
Slide 51: Meeting Needs of the Snack Consumer
Snacking Yogurt/Veggies Popcorn Nuts Chips Candy Bars Indulgent Healthier Meeting Needs of the Snack Consumer New Segment: Lighter than nuts, more substantial than popcorn
Slide 52: Retailers Like our New Snacking Concept Too
Retailers Like our New Snacking Concept Too
Slide 53: Marketing Support Designed to Build Consumer Awareness
Marketing Support is Designed to Build Consumer Awareness and Drive Trial
Slide 54: Pure and Simple Goodness
Pure and Simple Goodness
Slide 55: Orchard Valley Harvest On-Trend with Today's Consumer
Our Orchard Valley Harvest Brand is On-Trend with Today’s Consumer Pure & Simple Goodness Supports a healthy lifestyle Close to the earth
Slide 56: The Brand Consumers Trust for Pure & Simple Goodness
The Brand Consumers Trust for Pure & Simple Goodness
Slide 57: Orchard Valley Harvest Growth FY15 vs. FY14
Orchard Valley Harvest Growth FY15 vs. FY14 +34% +48% Strong Growth on Orchard Valley Harvest POUND SALES DOLLAR SALES Source: JBSS shipment data
Slide 58: Strong Distribution Gains
Strong Distribution Gains Source: IRI: Ttl Produce Nut Category – Total US MULO Geography– FY 2016 YTD Q3 Data Ending 3/27/16 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI
Slide 59: Multi-Packs Grab 'n Go Mini's
Multi-Packs Grab ‘n Go Mini’s Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013 Snacking accounts for over 53% of all eating occasions in the U.S. 38% of consumers snack several times per day We continue to expand our portfolio to add
Slide 60: Expanding to Front of House Foodservice Locations
University Setting Sodexho B&I Location Michigan Ski Resort Expanding to Front of House Foodservice Locations
Slide 61: Impactful Marketing Support
Impactful Marketing Support
Slide 62: John B. Sanfilippo & Son, Inc.
JOHN B. SANFILIPPO & SON, INC. The Global Source for Nuts®
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