The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — Q1 2019 Earnings Presentation
17 slides from The Simply Good Foods's earnings presentation, Jan 3, 2019
Slide 1: First Quarter Fiscal Year 2019 Earnings Conference Call & Webcast Presentation
FIRST QUARTER FISCAL YEAR 2019 EARNINGS CONFERENCE CALL & WEBCAST PRESENTATION January 3, 2019
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements This presentation contains certain statements made herein that 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
Slide 3: Today's Speakers and Agenda
TODAY’S SPEAKERS AND AGENDA Speakers Agenda Mark Pogharian Introduction VP, Investor Relations Joe Scalzo First Quarter 2019 Chief Executive Officer Highlights Business Update Todd Cunfer Financial Summary Chief Financial Officer Q&A 2
Slide 4: Joseph E. Scalzo
JOSEPH E. SCALZO PRESIDENT AND CHIEF EXECUTIVE OFFICER 3
Slide 5: 1st Quarter Fiscal 2019 Highlights
1st QUARTER FISCAL 2019 HIGHLIGHTS Delivered solid financial results Marketplace performance continued to be strong Broad based growth across all forms (Bars, RTD/Shakes, Confections) and retail channels Attained some additional manufacturing capacity but expect that service issues could sti
Slide 6: 1st Quarter Highlights: Revenue & Profit Growth
1st QUARTER HIGHLIGHTS: REVENUE & PROFIT GROWTH Business Momentum Continues $120.9 $106.6 Driven by: Volume +14.3% Trade Promo +0.2% Non-price Related Trade -1.0%2 Driven by: + Higher Sales - Partially offset by higher: $26.7 ● SG&A related to higher professional fees $23.7 and investments to enhanc
Slide 7: Retail Takeaway Momentum
RETAIL TAKEAWAY MOMENTUM Total Atkins U.S. Snacking Point of Sale Data % Change vs. Year Ago +23.5% +21.3% +15.0% Period end 11/24/18: 52-weeks 13-weeks 4-weeks 6 Note: Bars/graphs not to scale
Slide 8: Base Velocity Growth...
BASE VELOCITY GROWTH... Atkins U.S. Snacking Point of Sale Drivers of Growth +23.5% Base Feature & 1Q19 1Q18 Velocity Distribution Display Source: IRI/MULO; 13-weeks ended 11/24/18 7 Note: Bars/graphs not to scale
Slide 9: Retail Takeaway by Form
RETAIL TAKEAWAY BY FORM Strong growth across all forms Atkins U.S. Point of Sale Data by Form % Change vs. Year Ago +24.9% +23.5% +21.9% Bars RTD/Shakes Confections Source: IRI/MULO; 13-weeks ended 11/24/18 Note: Bars/graphs not to scale 8
Slide 10: Committed to Our Strategy in Fiscal 2019
COMMITTED TO OUR STRATEGY IN FISCAL 2019 ENGAGED WITH BRAND SPOKESPERSON, NEW AD COPY COMPLETE ● Committed to annual advertising and marketing increase in-line with net sales growth ● New “Choose Wisely” campaign ● Redesigned website (desktop and mobile) ● Re-energized social media NEW PRODUCTS ● A
Slide 11: 2019 Off to a Solid Start
2019 OFF TO A SOLID START A solid start to the year with net sales growth exceeding our long-term target Strategy of targeting and reaching lifestyle-orientated consumers continues to work Point of sale growth continues to be strong; challenging comps in the second half of the year: Total Atki
Slide 12: Todd Cunfer - Financial Overview
FINANCIAL OVERVIEW TODD CUNFER CHIEF FINANCIAL OFFICER 11
Slide 13: Net Sales vs. Point of Sales Growth
NET SALES vs. POINT OF SALES GROWTH Net Sales YoY Drivers 1Q19 Volume growth +14.3% Trade promo +0.2% Non-price related trade -1.0% Net sales growth +13.5% IRI retail takeaway / point-of-sales (POS) growth: 13-weeks ended 11/24/18 (Percent increase versus last year) +23.5% 4-weeks ended 12/16/18 (Pe
Slide 14: Solid Sales & EBITDA Growth to Start the Year
SOLID SALES & EBITDA GROWTH TO START THE YEAR Fiscal 1st Quarter 2019 vs. Year Ago Period Gross Profit Adjusted EBITDA Net Sales(1) (and % Margin)(1) (and % Margin)(1) 13.5% Year-Over- 12.0% Year-Over- 12.6% Year-Over-Year Year Growth Year Growth Growth $120.9 $59.1 $26.7 $106.6 $52.8 $23.7 49.5% 48
Slide 15: Balance Sheet & Cash Flow Highlights
BALANCE SHEET & CASH FLOW HIGHLIGHTS As of November 24, 2018, the Company has cash of $210.8 million and a $198.0 million term loan (Libor +350 bps), resulting in a net cash position of $12.8 million. On November 16th the Company filed an 8-K stating that it agreed to a termination price for the
Slide 16: Summary
SUMMARY Good start to the year giving us confidence in our ability to execute and capture the growth opportunities in fiscal 2019 Full Year 2019 Outlook Updated: Net sales expected to exceed our long-term target of 4% to 6% Reflects anticipated solid volume growth in the first-half, moderati
Slide 17: Q&A
Q&A Simply yGood
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