EX-99.1 2 d624773dex991.htm EX-99.1 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
*
*
*
*
*
*
*
*

15

Grow Brands
16
Recipe Nuts
Snack Nuts

17

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

THANK YOU