The Simply Good Foods Company · NASDAQ:SMPL
The Simply Good Foods — FY2020 Earnings Presentation
21 slides from The Simply Good Foods's earnings presentation, Oct 26, 2020
Slide 1: Fourth Quarter and Fiscal Year 2020 Earnings Conference Call & Webcast Presentation
Fourth Quarter and Fiscal Year 2020 Earnings Conference Call & Webcast Presentation October 26, 2020 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 2020 Highlights President & Chief Executive Officer Business Update Todd Cunfer Financial Summary Chief Financial Officer Q&A 3
Slide 5: Fiscal 2020 Overview
Fiscal 2020 Overview In a challenging environment Simply Good Foods’ market share increased within total nutritional snacking and the sub-segments of active nutrition and weight management Successfully diversified our portfolio with the acquisition of Quest - A unique portfolio of leading brands
Slide 6: Fourth Quarter Overview
Fourth Quarter Overview Atkins and Quest marketplace trends improved sequentially from Q3 to Q4 as COVID-19 restrictions eased Q4 Simply Good Foods net sales exceeded our expectations due to: - Strong Quest retail takeaway - Slightly better Atkins retail takeaway versus our expectation; continue
Slide 7: 2020 Weekly Retail Takeaway
2020 Weekly Retail Takeaway As the partial “reopening” of the country began, nutritional snacking category trends improved. In late July, post peak “reopening,” marketplace performance plateaued Pre COVID-19 Stock-Up COVID-19 Confinement Period Base Business on Track Period % Chg. Vs. YAG Plateauing
Slide 8: Simply Good Foods Sales by Form
Simply Goods Foods Sales by Form Bars and RTD shakes remain a large part of the portfolio. Snacks increasing as growth has been strong. Simply Goods Foods U.S. Snacking Gross Sales by Form1 All Other Snacks 2 Bars RTD Shakes 1 7 Total U.S. estimated gross sales for both legacy Atkins (52 weeks) and
Slide 9: 4th Quarter Net Sales and Adjusted EBITDA
4th Quarter Net Sales and Adjusted EBITDA $222.3 Driven by: Quest +67.7% Legacy Atkins -8.0% $139.2 Driven by: + Gross profit increase driven by Quest contribution partially offset by lower legacy Atkins sales volume and unfavorable net price realization + Lower legacy Atkins Selling & Marketing and
Slide 10: Atkins Q4 and Full Year Retail Takeaway
Atkins® Q4 and Full Year Retail Takeaway Atkins Q4 and full year retail takeaway off -4.9% and -0.4%; due to temporary softer consumer interest in weight management during COVID-19 era along with lower on-the-go usage occasions - Bars off -11.1% in Q4, down -2.4% for full year - RTD shakes decline
Slide 11: Quest Q4 and Full Year Retail Takeaway
Quest® Q4 and Full Year Retail Takeaway Quest significantly outpaced the category with Q4 retail takeaway increasing +28.4% - Full year retail takeaway up +21.3% - Q4 and full year retail takeaway increased across all IRI MULO measured channels - 60% of Quest sales in measured channels Quest Q4
Slide 12: Simply Good Foods Brand Initiatives
Simply Good Foods Brand Initiatives As movement restrictions began to ease, we increased marketing spending on both brands New Rob Lowe Atkins advertising now on air; messaging focused on at home consumption: ● Bars as better, healthier, alternative to other at-home snacks ● Losing weight gained
Slide 13: Summary
Summary Simply Good Foods is uniquely positioned as a U.S. leader in nutritional snacking – Atkins® and Quest® are compelling consumer lifestyle brands that transcend multiple forms Quest cost synergies of $20 million on track; majority to be achieved in fiscal ‘21-22; - Initial integration and
Slide 14: Todd Cunfer, Chief Financial Officer
TODD CUNFER CHIEF FINANCIAL OFFICER 13
Slide 15: Net Sales Drivers
Net Sales Drivers Total Simply Good Foods 14
Slide 16: 4th Quarter Net Sales and Profit
4th Quarter Net Sales and Profit Fiscal Q4 2020 vs. Year Ago Period Net Sales1 Gross Profit Adjusted EBITDA (and % Margin)1 (and % Margin)1,2 59.7% Year-Over-Year 48.9% Year-Over-Year 53.5% Year-Over-Year Growth Growth Growth $222.3 $139.2 $88.1 39.6% $59.2 42.5% $37.0 16.7% $24.1 17.3% 4Q19 4Q20 4Q
Slide 17: Full Year Fiscal 2020 Net Sales and Profit Growth
Full Year Fiscal 2020 Net Sales and Profit Growth 2020 vs. Year Ago Period Net Sales1 Gross Profit Adjusted EBITDA (and % Margin)1 (and % Margin)1,2 56.0% Year-Over-Year 49.2% Year-Over-Year 55.9% Year-Over-Year Growth Growth Growth $816.6 Includes $7.5 million inventory step-up, a 90 bps headwind t
Slide 18: Earnings Per Share-Diluted
Earnings Per Share-Diluted Reconciliation of 2020 1 Adjusted Diluted EPS 42.4% 43.0% 2 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
Slide 19: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Fiscal year 2020 term loan debt pay-down of $50 million; term loan debt balance at August 29, 2020, $606.5 million (LIBOR +375 bps) 1 Q4 cash flow from operations about $35 million, resulting in cash and cash equivalents balance at August 29, 2020 of $95.8 million 1 2 -
Slide 20: Fiscal 2021
Fiscal 2021 The unknown duration of changes in consumer shopping behavior creates uncertainty to provide a full-year fiscal 2021 outlook at this time Total Simply Good Foods marketplace performance in the first half of fiscal 2021 expected to be somewhat similar to current trends In the first
Slide 21: Q&A
Q&A Simply ¥Good FOODS COMPANY”
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