The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q1 2020 Earnings Presentation
22 slides from The Simply Good Foods's earnings presentation, Jan 9, 2020
Slide 1: First Quarter Fiscal Year 2020 Earnings Conference Call & Webcast Presentation
First Quarter Fiscal Year 2020 Earnings Conference Call & Webcast Presentation January 9, 2020
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: Today's Speakers and Agenda
TODAY’S SPEAKERS AND AGENDA Speakers Agenda \ Mark Pogharian Introduction VP, Investor Relations Joe Scalzo First Quarter 2020 Highlights President & 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: Growth Vision: Trusted Brands
TRUSTED BRANDS GROWTH VISION: Simply Good Foods aims to lead the nutritious snacking 1 movement with Compelling consumer lifestyle brands trusted brands that offer a variety of 4 2 convenient, Scale, outsourced supply chain Diversified snacking innovative, great- product portfolio tasting, better-fo
Slide 6: 1st Quarter Fiscal 2020 Highlights
1st QUARTER FISCAL 2020 HIGHLIGHTS Delivered solid financial results: - Atkins legacy business net sales, Adjusted EBITDA growth and increase in retail takeaway all in-line with expectations - Quest tracking to acquisition model Successfully closed on the Quest acquisition on November 7th - Dave
Slide 7: 1st Quarter Highlights: Revenue & Profit Growth
1st QUARTER HIGHLIGHTS: REVENUE & PROFIT GROWTH $152.2 Driven by: Legacy Atkins Business +11.7% Quest +14.1% $120.9 Driven by: + Higher legacy Atkins sales; contribution from Quest + Gross profit increase driven primarily by higher sales - Partially offset by higher: ● Selling & Marketing (as previo
Slide 8: Simply Good Foods First Quarter Consumption Solid
SIMPLY GOOD FOODS FIRST QUARTER CONSUMPTION SOLID Simply Good Foods U.S. Snacking Point of Sale Data % Change vs. Year Ago +24.0% +14.5% +10.7% Source: IRI/MULO; 13 weeks ending 12/1/19 7 Note: Bars/graphs not to scale
Slide 9: Atkins Point of Sales Drivers of Growth
ATKINS® POINT OF SALES DRIVERS OF GROWTH Retail takeaway continues to be driven by base velocity Bars and confections growth solid, POS +10.6% and +33.6%, respectively As expected, RTD Shakes down slightly due to increased competitive activity Atkins® Fiscal 1st Qtr. U.S. Snacking Point of Sal
Slide 10: Advertising & Marketing
ADVERTISING & MARKETING Television and Digital /Social ad copy delivering desired results and resonating with consumers 9
Slide 11: Quest Sales Breakdown
QUEST SALES BREAKDOWN Predominantly a growing U.S. bar business About ~50% of sales in traditional U.S. tracked Food, Drug, Mass & Club channels - Specialty channel challenged given announced store closures International footprint similar to Atkins 1 Product 1 Channel (U.S.) Geography Club Dru
Slide 12: Quest Point of Sales Drivers of Growth
QUEST® POINT OF SALES DRIVERS OF GROWTH Retail takeaway by form in-line with estimates in measured channels - ~50% of U.S. sales in non-measured channels - Non-measured channel growth less than the increase of IRI MULO universe Core bar business consumption and loyalty solid; IRI MULO retail tak
Slide 13: Strong Quest Plans in Place to Drive Growth
STRONG QUEST® PLANS IN PLACE TO DRIVE GROWTH Increases in marketing efforts to drive awareness, consideration and trial Continue to build distribution of key products Support new snacking forms; chips, cookies, pizza, drinks 12
Slide 14: Summary
SUMMARY Simply Good Foods is uniquely positioned as a U.S. leader in nutritional snacking Quest acquisition expands portfolio breadth and provides us with select key capabilities A portfolio aligned with megatrend of low carb, minimal sugar, rich in protein lifestyle A high performance busin
Slide 15: Todd Cunfer, Chief Financial Officer
TODD CUNFER CHIEF FINANCIAL OFFICER 14
Slide 16: First Quarter Net Sales Drivers of Growth
FIRST QUARTER NET SALES DRIVERS OF GROWTH Total Simply Good Foods U.S. Legacy Atkins Business: Volume +13.5% Shift in timing of Trade Promotion -0.8% Non U.S. Legacy Atkins Business -1.0% Total Organic Net Sales Growth +11.7% Quest Acquisition (24 days) +14.1% Total Net Sales Growth +25.8% 15
Slide 17: Net Sales and Profit Growth
NET SALES AND PROFIT GROWTH Fiscal 1st Quarter 2020 vs. Year Ago Period Gross Profit Adjusted EBITDA Net Sales1 (and % Margin)1 (and % Margin)1,2 25.8% Year-Over-Year 19.8% Year-Over-Year 19.1% Year-Over-Year Growth Growth Growth $152.2 Includes $2.4 million inventory step-up, a 160 bps headwind to
Slide 18: Earnings Per Share-Diluted
EARNING PER SHARE-DILUTED Fiscal 1st Quarter 2020 vs. Year Ago Period Reconciliation of 1 1 GAAP EPS-Diluted Adjusted Diluted EPS Adjusted Diluted EPS GAAP Diluted EPS ($0.05) Business Transaction Costs $0.22 Integration Expense $0.01 Inventory Step-up $0.02 Stock Based Compensation $0.01 $0.22 $0.2
Slide 19: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW As of November 30, 2019, the Company had cash of $72.7 million and a $655.5 million term loan On October 7th, the Company sold approximately 13.4 million shares of its common stock. The net proceeds from the offering - about $350 million – were used to fund in part the
Slide 20: Quest Acquisition Update
QUEST ACQUISITION UPDATE Financing & Closing: Acquisition closed on November 7th Issued approximately 13.4 million shares on October 7th to finance purchase price - Anticipate fully diluted shares outstanding of about ~100 million for the remainder of the year Completed $460 million term loan
Slide 21: Summary
SUMMARY We are confident in our ability to deliver our plan and capture growth opportunities in fiscal 2020 Full Year 2020 Outlook Updated: Anticipate full-year reported net sales of $850-870 million Existing base business Net Sales and Adjusted EBITDA growth remains unchanged from outlook p
Slide 22: Q&A
Q&A Simply ¥Good FOODS COMPANY”
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