jbss investor presentation · 8/4/2017 · some of the statements in this presentation and any...
TRANSCRIPT
JBSS INVESTOR
PRESENTATION August 2016
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NASDAQ - JBSS
Some of the statements in this presentation and any statements by management
constitute “forward-looking statements” about John B. Sanfilippo & Son, Inc. Such
statements include, in particular, statements about our plans, strategies, business
prospects, changes and trends in our business and the markets in which we operate. In
some cases, you can identify forward-looking statements by the use of words such as
“may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,”
“estimate,” “forecast,” “predict,” “propose,” “potential” or “continue” or the negative of
those terms or other comparable terminology. These statements represent our present
expectations or beliefs concerning future events and are not guarantees. Such
statements speak only as of the date they are made, and we do not undertake any
obligation to update any forward-looking statement.
We caution that forward-looking statements are qualified by important factors, risks and
uncertainties that could cause actual results to differ materially from those in the forward-
looking statements. Our periodic reports filed with the Securities and Exchange
Commission, including our Forms 10-K and 10-Q and any amendments thereto, describe
some of these factors, risks and uncertainties.
Forward-Looking Statements
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• One of the largest nut processors in the world with fiscal 2016 annual net sales in excess of $952 million
• State-of-the-art nut processing capabilities, including what we believe is the single largest nut processing facility in the world
• A North American market leader in every major selling channel – from consumer and commercial ingredient customers to contract manufacturing customers
• Dual consumer strategy of branded nut and dried fruit programs (Fisher, Orchard Valley Harvest) as well as private brands
• Commodity procurement expertise with buyers averaging over 20+ years experience
• A category leader in packaging and product innovation • Vertically integrated nut processing operation for pecans, peanuts and walnuts
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Who is JBSS?
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We Are Experts In Every Nut Type
% of total gross sales
Full assortment of nut types
Full variety of value-added products
Wide variety of dried fruit and other
snack products
Customized, unique product formulas
Fiscal Year 2016
14%
13%
23% 10%
23%
12% 5% PEANUTS
PECANS
CASHEWS & MIXED NUTS
WALNUTS
ALMONDS
TRAIL & SNACK MIXES
OTHER
Consistent success over past 5 fiscal years
Diluted EPS improvement of 70% from FY 12
to FY 16
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$1.58
$1.98
$2.36
$2.61 $2.68
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
FY12
FY13
FY14
FY15
FY16
Diluted EPS FY 12-FY 16
Net Sales increased by 7% over FY 15 to a record
$952.1 million
$650,000
$700,000
$750,000
$800,000
$850,000
$900,000
$950,000
$1,000,000
FY 12 FY 13 FY 14 FY 15 FY 16
Net Sales FY 12 - FY 16
$952,059,000
Vision
To be the global source for nuts,
committed to quality,
expertise and innovation that
delivers an unmatched
experience to our customer
and consumer
Core Values
Integrity
People
Investment
Customer Driven
Quality
Innovation
Execution
Continuous Improvement
Safety
Resource Conservation
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FY 2016 Strategy Update
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Grow distribution so more consumers can
purchase JBSS products
Develop sales in Alternative Channels
Launch innovative products, sizes and
marketing programs to build consumer
demand
Expand Consumer Reach
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Fisher recipe nuts increased market share by
+2.9 points*.
Fisher snack nuts market share grew +0.6
point in the high franchise Midwest.
Orchard Valley Harvest expanded distribution
over FY 2015.
FY 2016 Accomplishments
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*Source: IRI: Total Nut Category – Multi Outlet Geography Fiscal Year Ending 6/26/16
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Leveraged our innovation capabilities to launch
30 new items for our key contract manufacturing
customers.
Optimized Food Service and Industrial ingredient
customer and product portfolios.
Expanded Fisher brand awareness and
distribution in the Commercial Ingredients
channel.
FY 2016 Accomplishments
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Nut Category Review
$4.63 $5.24
$5.54 $5.62 $5.85 $6.07
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Price Per Pound
Steady Increase in Nut Retail Prices
Since FY 2011
Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16
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+ 31% since FY 2011
48.0%
43.0%41.0%
39.0%35.0%
23.0%
15.0% 14.0%
ALMOND PISTACHIO MIXED NUTS CASHEW WALNUT MACADAMIANUT
PEANUT PECAN
% Increase in Price Per Pound Since FY11
Retail Prices Up Across Most Major
Nut Types over the Last 5 Years
14 Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16
4,771
5,3055,659
5,9086,120 6,261
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Category $ Sales (M)
Steady Category $ Growth
1,030
1,014
1,022
1,0511,046
1,031
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Category Pound Sales (M)
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Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: to FY 11 Year Ending 7/3/11 to FY 2016 data ending 6/26/16
JBSS Sales Channel
Updates
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Commercial Ingredients
23%
Contract Pkg.15%
Consumer 59%
Export3%
$561
Fiscal 2016 Net Sales $952 Million
Business Channel Diversification
(Millions of $)
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$31 $223
$137
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Fiscal 2016 Net Sales $561 Million
Consumer
59%
vs. FY 15
FY 2016 Consumer Channel
6.1%
Commercial Ingredients
23%
7.3%
Fiscal 2016 Net Sales $223 Million
FY 2016 Commercial Ingredients Channel
vs. FY ‘15
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19.4%
vs. FY 15
Contract Packaging 15%
FY 2016 Contract Packaging Channel
Fiscal 2016 Net Sales $137 Million
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Export3%
-13.1%
Over FY’12vs. FY ‘15
FY 2016 Export Channel
Fiscal 2016 Net Sales $31 Million
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FY 2016 Financial
Milestones
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$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
$275
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JBSS Stockholders’ Equity FYs 1991- 2016
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In millions of $
JBSS Net Sales FYs 1991- 2016
$0
$200
$400
$600
$800
$1,000
$1,2001
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6 M
O)
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Increased Pound
volume and Prices De-emphasized
Industrial Sales,
Lower Prices
Low Carb Diet Run Up
$952 million
In millions of $
JBSS Total Outstanding Debt FYs 1991- 2016
$0
$20
$40
$60
$80
$100
$120
$140
$160
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In millions of $
JBSS Total Outstanding Debt As % of Net Sales
FYs 1991 – 2016
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
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EBITDA
EBITDA consists of earnings before interest, taxes, depreciation,
amortization and noncontrolling interest. EBITDA is not a measurement
of financial performance under accounting principles generally
accepted in the United States of America ("GAAP"), and does not
represent cash flow from operations. EBITDA is presented solely as a
supplemental disclosure because management believes that it is
important in evaluating JBSS's financial performance and market
valuation. In conformity with Regulation G, a reconciliation of EBITDA
to the most directly comparable financial measures calculated and
presented in accordance with GAAP is presented in the following slide.
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Reconciliation of Net Income (Loss) to EBITDA
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FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
(in $,000's)
NET INCOME (LOSS) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395
INTEREST EXPENSE 9,347 10,502 7,646 5,653 6,444 5,364 4,754 4,354 3,966 3,492
INCOME TAX EXPENSE (BENEFIT) (7,520) (897) (259) 8,447 (49) 9,099 13,536 13,545 15,559 16,067
DEPRECIATION / AMORTIZATION 13,584 15,742 15,922 15,825 16,968 17,117 16,717 16,278 16,284 16,585
EBITDA 1,834 19,390 30,226 44,350 26,198 48,702 56,767 60,464 65,114 66,539
NET SALES 540,858 541,771 553,846 561,633 674,212 700,575 734,334 778,622 887,245 952,059
EBITDA MARGIN (% OF NET SALES) 0.3% 3.6% 5.5% 7.9% 3.9% 7.0% 7.7% 7.8% 7.3% 7.0%
POUNDS SOLD (000‘s) 246,142 221,958 217,465 224,302 232,746 212,553 221,762 240,417 253,514 270,144
EBITDA PER POUND SOLD 0.007 0.087 0.139 0.198 0.113 0.229 0.256 0.251 0.257 0.246
EBITDA*
-$15,000
-$10,000
-$5,000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
$60,000
$65,000
$70,000
$75,000
* EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure
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(in $ thousands)
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0.0%
1.5%
3.0%
4.5%
6.0%
7.5%
9.0%
10.5%
12.0%
13.5%
15.0%
16.5%
18.0%
19.5%
21.0%
22.5%
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
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$7.50
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rolling gm cashews 320's almonds nps 25/27 Peanuts pecans jr. mammoth walnuts combo 1/2's & pcs.
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN %
FY 2016 Brand Marketing
Overview
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Recipe Nuts
Snack Nuts
Grow Brands
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Recipe Nuts
Strong Growth on the Fisher Recipe in FY 16
Total Fisher Recipe Brand Growth FY 16 vs. FY 15
+6%
+12%
Recipe Nuts
POUND SALES DOLLAR NET SALES 34
Source: JBSS shipment data
Fisher Recipe has Grown Market Share
16.5%18.3% 19.2%
21.5%
24.4%
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Fisher Recipe Dollar Share Total US MULO
35 Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2016 Data Ending 6/26/16
Strong, Sustained Growth for Fisher Recipe for 4+ Fiscal Years
9.7%
20.5%
12.8%
15.4%
8.4%
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Fisher Recipe Dollar Sales % Change vs. Previous YearTotal US MULO
36 Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2016 Data Ending 6/26/16
“No Preservatives” Message Key Driver
for Share Growth
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Continue to Build Fisher Brand Equity with
Food Network Sponsorship
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Integrated Marketing Key to
Building Brand Equity
39 Website Social Media
Public Relations Food Network
Building Brand Presence and Equity
“Away From Home”
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Merchandised Foodservice Location
Fisher Snack Nut Strategy Focuses on
Midwest High Franchise Markets
Snack Nuts
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Strong Growth on the Fisher Recipe in FY 16
Total Fisher Recipe Brand Growth FY 16 vs. FY 15
+5%
+10%
POUND SALES DOLLAR NET SALES 43
Source: JBSS shipment data
Snack Nuts
2.2
3.13.5
3.9
4.5
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Fisher Snack Nuts Pound Share(High Franchise Markets)
We Are Growing our Pound Share in
High Franchise Markets
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Snack Nuts
Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outlet Geography – FY 2016 Data Ending 6/26/16. The above are percentage of pound share.
Driving Results on our Core
Dry Roast Peanut Business
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535,681
652,052
777,756
952,709
FY 2013 FY 2014 FY 2015 FY 2016
Pound Sales – Fisher Dry Roast Peanuts
Source: IRI: Total Snack Nut Category – Core Franchise (Minneapolis, Milwaukee, Chicago and St. Louis) Multi Outlet Geography – FY 2016 Data Ending 6/26/16
New Look for Fisher Snack Nuts
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A Snack Bite Combining Consumer
Favorites
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Fisher Nut Exactly
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4 Great Popcorn Varieties for Grocery Channel
Unique Varieties for the Club Channel
Meeting Needs of the Snack Consumer
Snacking
Yogurt/Veggies Popcorn Nuts Chips Candy Bars
New Segment: Lighter than nuts, more substantial
than popcorn
Indulgent Healthier
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Retailers Like our New Snacking
Concept Too
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Marketing Support is Designed to Build
Consumer Awareness and Drive Trial
PR Media Outreach
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Pure and Simple Goodness
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Pure & Simple Goodness
Supports a healthy lifestyle
Close to the earth
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Our Orchard Valley Harvest Brand is
On-Trend with Today’s Consumer
The Brand Consumers Trust for Pure &
Simple Goodness
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Strong Growth of Our Produce Brands
Produce Brand Growth FY 16 vs. FY 15*
+41%
+55%
POUND SALES DOLLAR NET SALES 55
Source: JBSS shipment data * Includes Sunshine Country
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FY 13 FY 14 FY 15 FY 16
Orchard Valley Harvest % ACV Distribution*
Source: IRI: Ttl Produce Nut Category – Total US MULO Geography– FY 2016 Data Ending 6/26/16 *Note: % ACV refers to % “All Commodity Volume” as measured by IRI
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Strong Distribution Gains
Source: The Hartman Group : Eating Occasions, Compass 2012 The Hartman Group: Reimagining Health and Wellness, 2013
Snacking accounts for over 53% of all eating occasions in the U.S.
38% of consumers snack several times per day
Grab ‘n Go Mini’s
Multi-Packs
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We continue to expand our portfolio to
address consumer demand for on-the-go
Goodness
Expanding to Front of House Foodservice
Locations
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University Setting
Sodexho B&I Location Michigan Ski Resort
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Impactful Marketing Support
Digital Initiatives Website / Ibotta
Thank You!
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