The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q4 2021 Earnings Presentation
19 slides from The Simply Good Foods's earnings presentation, Oct 22, 2021
Slide 1: Fourth Quarter Fiscal Year 2021 Earnings Conference Call & Webcast Presentation
Fourth Quarter Fiscal Year 2021 Earnings Conference Call & Webcast Presentation October 22, 2021
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Certain statements made herein 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 are accompanied by or include w
Slide 3: Joseph E. Scalzo, President and Chief Executive Officer
JOSEPH E. SCALZO PRESIDENT AND CHIEF EXECUTIVE OFFICER 2
Slide 4: Today's Speakers and Agenda
Today’s Speakers and Agenda Speakers Agenda \ Mark Pogharian ▪ Introduction VP, Investor Relations Joe Scalzo ▪ Overview and Q4 Highlights President & Chief Executive Officer ▪ Business Update Todd Cunfer ▪ Financial Summary Chief Financial Officer Joe Scalzo ▪ Fiscal Year 2022 Outlook President & C
Slide 5: Fiscal 2021 Overview
Fiscal 2021 Overview ▪ As consumer mobility improved in the second half of the year, our business accelerated resulting in strong full year sales and earnings growth - Exceeded our original plan as net sales surpassed $1 billion ▪ Diversification of our business provides us with multiple ways for us
Slide 6: Fourth Quarter Fiscal 2021 Overview
Fourth Quarter Fiscal 2021 Overview ▪ Simply Good Foods Q4 net sales increased +16.9% and relatively in-line with our estimate - Workplace mobility in Q4 similar to Q3 ▪ Gross margin increased 60 basis points versus the year ago period - As expected, supply chain inflation a headwind - Net price rea
Slide 7: Simply Good Foods and Nutritional Snacking Category Retail Performance
Simply Good Foods and Nutritional Snacking Category Retail Performance ▪ Simply Good Foods IRI MULO + C-store market share increased in fiscal 2021 ▪ Atkins and Quest outpaced the sub-segments of weight management and active nutrition ▪ Simply Good Foods fiscal 2021 e-commerce retail takeaway about
Slide 8: Atkins Overview
Atkins® Overview 1 ▪ Atkins Q4 IRI MULO + C-store retail takeaway increased 8.7%, with growth across all forms and in key retail channels - Benefited from increasing growth in buyers, improving shopper trips, particularly in the mass channel, and stable consumer mobility ▪ Atkins bars and shakes Q4
Slide 9: Quest Overview
Quest® Overview 1 ▪ Quest Q4 measured channel retail takeaway increased +34.9%, outpacing the category - Growth driven by the increase of household penetration, improving shopper trips and stronger bar growth along with new product form success ▪ Bars about ~60% of total Quest retail sales, continue
Slide 10: Simply Good Foods 2022 Brand Initiatives
Simply Good Foods 2022 Brand Initiatives ▪ Anticipate marketing expense in fiscal 2022 to increase in line with sales growth ▪ New Rob Lowe Atkins advertising across all forms. Messaging focused on “Bars are Back” and “A healthier approach to life” ▪ Quest first time television advertising beginning
Slide 11: Summary
Summary ▪ Fourth quarter results in line with our expectations ▪ Positioned well to build on our momentum and deliver solid net sales and Adjusted EBITDA growth in fiscal 2022 - Don’t expect any meaningful changes in workplace mobility ▪ Expect a solid start to fiscal 2022 and that growth in the fir
Slide 12: Todd Cunfer, Chief Financial Officer
TODD CUNFER CHIEF FINANCIAL OFFICER 11
Slide 13: Net Sales Performance
Net Sales Performance Net Sales Drivers of Growth 1 1 1 1Percentage points of growth 12
Slide 14: 4th Quarter Net Sales and Profit
4th Quarter Net Sales and Profit Fiscal Q4 2021 vs. Year Ago Period Net Sales1 Gross Profit Adjusted EBITDA (and % Margin)1 (and % Margin)1,2 16.9% Year-Over-Year 18.6% Year-Over-Year 30.9% Year-Over-Year Growth Growth Growth $259.9 $222.3 $104.5 $88.1 40.2% 39.6% $48.5 18.7% $37.0 16.7% 4Q20 4Q21 4
Slide 15: Full Year Fiscal 2021 Net Sales and Profit
Full Year Fiscal 2021 Net Sales and Profit 2021 vs. Year Ago Period Net Sales1 Gross Profit Adjusted EBITDA (and % Margin)1 (and % Margin)1,2 23.1% Year-Over-Year 26.3% Year-Over-Year 34.7% Year-Over-Year Growth Growth Growth $1,005.6 $816.6 Includes $7.5 million inventory step-up, a 90 bps headwind
Slide 16: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share Reconciliation of Adjusted Diluted EPS 1,2 1,2 3 4 5 1 1Adjusted Diluted EPS for the 13 and 52 weeks ended August 28, 2021 reflects fully diluted shares outstanding of 102.4 million and 101.5 million which includes 4.6 million and 4.1 million shares to reverse the
Slide 17: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow ▪ In fiscal 2021, term loan debt pay-down was $150 million; term loan debt balance at 1 August 28, 2021, $456.5 million (LIBOR +375 bps) ▪ Fiscal fourth quarter and full year cash flow from operations of $41 million and $132.1 million, respectively - Cash and cash equivalen
Slide 18: Fiscal 2022 Outlook and Commentary
Fiscal 2022 Outlook and Commentary ▪ Anticipate that we will build on our momentum and deliver solid net sales and Adjusted EBITDA growth in fiscal 2022 - We do not expect any meaningful changes in workplace mobility in our outlook - Both Atkins and Quest are strong brands with advertising, marketin
Slide 19: Q&A
Q&A Simply ¥Good FOODS COMPANY”
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