EX-99.1 2 d624773dex991.htm EX-99.1

November 21, 2013 Southwest IDEAS Investor Conference NASDAQ: JBSS Exhibit 99.1

Forward-Looking Statements Some of the statements in this presentation 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. 2

Who is JBSS? • One of the largest nut processors in the world with fiscal 2013 annual sales in excess of $730 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 and export 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 . 3

Diluted EPS improved by over 600% Operating Cash Flow increased by nearly 400% Net Sales increased by 9% to a record $734 million Recent Financial Results FY 11 – FY 13 4

Creating Shareholder Value 5

Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consistent, profitable growth for our stockholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential of our brands, people and processes. Core Values Integrity People Investment Customer Driven Quality Innovation Execution Continuous Improvement Safety Resource Conservation 6

We are 1,290 people strong at five strategic locations! 7

State-of-the-Art World Class Facility State-of-the-Art World Class Facility Elgin - IL • 1 Million Square Feet • 350,000 sq. ft. warehouse and distribution • 160,000 sq. ft. segregated cooler storage • 480,000 sq. ft. manufacturing • 100,000 sq. ft. office • Comprehensive Allergen Prevention Programs • State-of-the-art warehouse management system • Individual cooler storage: one for peanuts, one for tree nuts • Separated processing and production rooms • Dedicated manufacturing equipment for peanut-shared and tree nut processing • Robust Quality Systems • Infinity / QRS Systems • Quasi positive release on all raw material, work-in-process and finished goods • SQF Level II • HACCP policies and procedures • Organic Certification 8

Distribution Channel Diversification (Millions of $; % change FY 13 v. FY 12 net sales) 9

Distribution Channel Diversification 10 1. Consumer Channel – sale of nuts and dried fruits to major food retailers Branded Business: Fisher Recipe – #2 national market share Fisher Snack – A Midwest market leader Orchard Valley Harvest – full line natural nuts and dried fruit products sold in the produce section of food retailers Private Brand Business: Predominantly snack nuts sold under retailers’ own brands 2. Commercial Ingredients – sale of nuts and dried fruits to major foodservice suppliers, global food manufacturers, and major restaurant chains 3. Contract Manufacturing – third party processing for branded food companies 4. Export – sale of Fisher snack nuts and private brand nut products outside the United States

We Are Experts In Every Nut Type We Are Experts In Every Nut Type 11 • We believe we offer the most complete product portfolio of nuts in the U.S. • Comprehensive variety of value-added products • Wide assortment of other snack products • Most versatile styles and sizes, customized to customer specifications • Benefits Appeals to major customers Ideally positioned to meet changing consumer needs Reduces product concentration risks % of total gross sales * other consists of trail and snack mixes which include nut products *

We Are Experts In Procurement We Are Experts In Procurement 12 Pecans Peanuts Almonds Walnuts

We Reach Consumers in 20+ In-Store Points We Reach Consumers in 20+ In-Store Points 13

Corporate Growth Strategies 14 14 * * * * * * * *

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Grow Brands 16 Recipe Nuts Snack Nuts

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Fisher Recipe & Snack Brands Delivering Double Digit Growth Consumer Channel Pounds (Millions) Gross Revenue ($ Millions) FY ’13 Actual Versus FY’12 FY ’13 Actual Versus FY’12 Fisher Brands 29 +17% $138 +23% 18

19 Easier to scoop Easier to find in the pantry Freshness seal keeps nuts fresh Innovation that meets the needs of the Consumer… Before….

…and the Retailer Easier to Merchandise Reduced Case Count to reduce Inventory Shelf Ready Case to reduce Labor Before…. 20

Celebrity Chef Alex Guarnaschelli in TV Vignettes and Print Building the Fisher Recipe Brand with Food Network Sponsorship 21

Extending our reach through Print that reaches our Core Consumer 22

Get Free! Buy 2 Winning In-Store with Displays! Karo Tie-in led to 7X increase in “Pounds on the Floor” last fiscal year 23

Our Strong Consumer and Retailer Program is driving Distribution Gains… 24 Recipe Nuts

…and Market Share Gains among Branded Recipe Nuts 25 Source : Nielsen scantrack data 4 week periods 7/7/12 to 10/26/13

Growing Fisher Snack by getting the Fundamentals Right New Products Coupon Support In-Store Merchandising 26

Focusing on High Franchise Midwest… 27

…driving Distribution Gains 28 Snack Nuts

Pure and Simple Goodness 29

30 Consumers want to know what’s in their food Consumers want products that fit their active lifestyle Consumers are more proactive about health & wellness Three Key Produce Consumer Trends

•Fresh •Pure & Simple •From the Earth •Free of Artificial Ingredients •Authentic 31 Orchard Valley Harvest Delivers

Orchard Valley Harvest Delivers 32

Core Line of “Take Home” Bags Health & Wellness Mixes Convenience Packs A Differentiated Assortment 33

Dominick's Unique Merchandising Sprouts 34

Building Distribution (Bulk only) BREAUX Markets 35

• Created a geographic-centric sales structure and hired experienced professionals to manage key regions • Partnered with leading international marketing firms to do proprietary research on nut usage and consumption in Asia • Invested in upgrading our Fisher Brand positioning and packaging FY 2013 Accomplishments 36

Goal: Significantly Increase Export Sales by FY 2016 37 A world of opportunity for JBSS to be a leader in health and wellness nut/fruit snacks in key international markets $34 MM in FY 13 37

How: Refresh & Upscale Fisher Brand Internationally • Premium look conveys premium quality • Launched in China … expanding to all International markets 38 Consumer response has been outstanding:

Who: China Retailers 39 39 Shanghai Fisher in Tibet Beijing

Who: Latin America Retailers 40 • Mexico • Dominican Republic • Panama • Colombia Comercial Mexicana Chedraui - Mafer Walmart / Superama Fisher “World Table” El Rey - Panama Liverpool - Mexico El Dragon – Santo Domingo

Who: Europe, Middle East, Africa, Asia Retailers • Russia • U.A.E. • U.K. • Saudi Arabia • South Korea • Malaysia • Japan • Australia 41

FY 2013 Accomplishments • Developed significant product launches with several key customers • Continued to expand our production capabilities and our focus on innovation and consumer insights • Received two major Supplier of the Year customer awards 42

Goal: Be The Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks Walmart Supplier of the Year Frito-Lay Supplier of the Year 43

• Reduce Foreign Material Complaints • Customer Quality Scorecards • Stringent Corporate Food Safety Programs • Raw Material Sourcing • Product & Packaging Innovation How: Commitment to Quality, Food Safety, Innovation & Procurement Expertise Pecans, Pine Nuts Cashews Macadamias Cashews Macadamias Cashews Pine Nuts Macadamias Cashews Almonds, Walnuts, Pecans, Pistachios, Peanuts, Raisins, Cranberries Hazelnuts 44

How: Operational Excellence Setup Reduction 5S Housekeeping Create Flow Quality Balance Flow Visual Management Continuous Improvement Kanban Pull Systems Standard Work Bottlenecks 1 2 Checkers checking the checkers 3 Broken interfaces 4 Unclear roles and responsibilities 5 5 things to look for… The 9 lean principles of process improvements • Competitive Costs • Production Efficiencies • Waste Reduction • Best in Class Cross-Functional Departments Duplicate Work 45

FY 2013 Financial Milestones 46 * * * * * * *

JBSS Stockholders’ Equity FYs 1991 – 2013 47

JBSS Total Outstanding Debt FYs 1991 – 2013 48

JBSS Net Sales FYs 1991 – 2013 49

JBSS Total Outstanding Debt As % of Net Sales FYs 1991 – 2013 Note: FY 1997 reflects stub year 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% 50

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. EBITDA 51

Reconciliation of Net Income (Loss) to EBITDA (In $000's) FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 NET INCOME (LOSS) 15,027 22,630 14,499 (16,721) (13,577) (5,957) 6,917 14,425 2,835 17,122 21,760 INTEREST EXPENSE 4,681 3,434 3,998 6,516 9,347 10,502 7,646 5,653 6,444 5,364 4,754 INCOME TAX (BENEFIT) EXPENSE 9,607 14,468 9,269 (8,689) (7,520) (897) (259) 8,447 (49) 9,099 13,536 DEPRECIATION & AMORTIZATION 11,248 11,190 10,501 10,000 13,584 15,742 15,922 15,825 16,968 17,117 16,717 EBITDA 40,563 51,722 38,267 (8,894) 1,834 19,390 30,226 44,350 26,198 48,702 56,767 NET SALES 419,677 520,811 581,729 579,564 540,858 541,771 553,846 561,633 674,212 700,575 734,334 EBITDA MARGIN (% OF NET SALES) 9.7% 9.9% 6.6% -1.5% 0.3% 3.6% 5.5% 7.9% 3.9% 7.0% 7.7% POUNDS SOLD 250,629 284,576 278,741 248,137 246,142 221,958 217,465 224,302 232,746 212,553 221,762 EBITDA PER POUND SOLD 0.162 0.182 0.137 (0.036) 0.007 0.087 0.139 0.198 0.113 0.229 0.256 52

EBITDA* * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure 53 -$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

EBITDA* Margin (% of Net Sales) * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 54

EBITDA* Per Pound Sold * EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income (Loss) to EBITDA” for reconciliation to GAAP measure 55 -$0.10 -$0.05 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30

Market prices from survey of JBSS brokers and suppliers Nut Spot Mkt. Prices vs. JBSS Rolling 4 QTR Gross Margins 56

Highlights: Q1 2014 vs. Q1 2013 (in 000’s except EPS) $ Chng. % Chng. Net Sales ($ 810) (.5%) Sales Volume (lbs. sold) 7,004 14.0% Gross Profit ($ 1,204) (3.9%) Net Income ($ 759) (10.1%) Earnings Per Share (EPS) ($ 0.08) (11.4%) Total Debt ($16,920) (19.6%) 57

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