The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q1 2021 Earnings Presentation
18 slides from The Simply Good Foods's earnings presentation, Jan 6, 2021
Slide 1: First Quarter Fiscal Year 2021 Earnings Conference Call & Webcast Presentation
First Quarter Fiscal Year 2021 Earnings Conference Call & Webcast Presentation January 6, 2021 0
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 Q1 Highlights President & Chief Executive Officer Business Update Todd Cunfer Financial Summary Chief Financial Officer Q&A 3
Slide 5: Key Messages
Key Messages Simply Good Foods is uniquely positioned as a U.S. leader in the attractive nutritional snacking category • Underpenetrated category with household penetration of about 50% • In Atkins® and Quest®, Simply Good Foods has two, large, scale brands • Benefitting from the consumer mega-tre
Slide 6: First Quarter Fiscal 2021 Overview
First Quarter Fiscal 2021 Overview Q1 Simply Good Foods net sales exceeded expectations due to: - Continued strong e-commerce growth - Slightly better retail takeaway versus our expectation, despite soft Back-to-School season - Shipped slightly ahead of consumption due to earlier than anticipated
Slide 7: Simply Good Foods Retail Takeaway Outpacing the Category
Simply Good Foods Retail Takeaway Outpacing the Category Nutritional Snacking Category and Simply Good Foods U.S. Retail Takeaway % Change vs. Year Ago Nutritional Snacking Category +5.9% +3.2% +1.2% +0.6% -0.5% -2.1% -1.5% Fiscal 1Q21 Retail -4.2% Takeaway +1.4% Source: IRI/MULO + C-stores; bars/gr
Slide 8: 1st Quarter Net Sales and Adjusted EBITDA
1st Quarter Net Sales and Adjusted EBITDA $231.2 Points of Growth: Quest +51.7% Atkins +1.9% $152.2 SimplyProtein -1.7% Driven by: + Gross profit increase driven by Quest contribution + SG&A beginning to benefit from Quest acquisition synergies $48.7 $31.8 1Q20 1Q21 1Adjusted EBITDA (Earnings Before
Slide 9: Atkins Retail Takeaway
Atkins® Retail Takeaway 1 Atkins Q1 retail takeaway off -5.7% due to temporary softer consumer interest in weight management during COVID-19 era along with fewer on-the-go usage occasions Retail takeaway sequentially improved, despite a slow start in September due to a soft Back-to-School season
Slide 10: Quest Retail Takeaway
Quest® Retail Takeaway 1 Quest significantly outpaced the category with Q1 retail takeaway increasing +15.2% - Cookies, chips and confections combined retail takeaway increased +76% - Beginning to lap RTD shake launch and distribution - While early, pleased with distribution gains and consumption
Slide 11: Summary
Summary First quarter results better than expected driven by solid Quest performance and earlier than anticipated shipments related to seasonal inventory build by certain retailers Encouraged with improving Atkins and Quest marketplace performance Continued headwinds due to the increase in COV
Slide 12: Todd Cunfer, Chief Financial Officer
TODD CUNFER CHIEF FINANCIAL OFFICER 11
Slide 13: Net Sales Drivers of Growth
Net Sales Drivers of Growth Total Simply Good Foods 12
Slide 14: 1st Quarter Net Sales and Profit
1st Quarter Net Sales and Profit Fiscal Q1 2021 vs. Year Ago Period Net Sales1 Gross Profit Adjusted EBITDA (and % Margin)1 (and % Margin)1,2 51.9% Year-Over-Year 51.2% Year-Over-Year 53.2% Year-Over-Year Growth Growth Growth $231.2 $152.2 Includes $2.4 million inventory step-up, a 160 bps benefit t
Slide 15: Earnings Per Share-Diluted
Earnings Per Share-Diluted Reconciliation of Adjusted Diluted EPS1 1 Adjusted Diluted Earnings Per Share is a non-GAAP financial measure. The Company excludes, among other items, acquisition related costs, such as business transaction costs, integration expense and non-cash deal amortization expense
Slide 16: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Fiscal 1Q21 term loan debt pay-down of $25 million; term loan debt balance at 1 November 28, 2020, $581.5 million (LIBOR +375 bps) Fiscal 1Q21 cash flow from operations of $15.2 million and proceeds from sale of SimplyProtein business of $5.8 million - Cash and cash equ
Slide 17: Fiscal 2021
Fiscal 2021 As consumer mobility increases we expect the growth rate of our brands will improve - We have a portfolio of brands aligned around consumer mega-trends of health and wellness, convenience and on-the-go nutrition - Consumers continue to express that protein, low carb and minimal sugar a
Slide 18: Q&A
Q&A Simply ¥Good FOODS COMPANY”
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