 1
WELCOME
JBSS
STOCKHOLDERS
FISCAL 2011 MEETING
November 9, 2011
Exhibit 99.1 |
 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
Forward-Looking Statements |
 Vision
To be the global source for nuts, committed to
quality, expertise and innovation that delivers
an unmatched experience to our customer and
consumer.
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
shareholders. 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
3 |
 4
Acting Today For Tomorrow’s Results
At the beginning of the day, it's all about
possibilities. At the end of the day, it's all about
results.“
-
Bob Prosen |
 FY 2011
Market Conditions: The Headlines U.S. NEWS
U.S. NEWS
Shell Shock: Chinese Demand Reshapes
U.S. Pecan Business
'Explosive' Food Prices the Biggest Risk
5 |
 6
Business Transformation
Over Past 4 years |
 2007
Business Diversification 2007 Business Diversification
7
Industrial
21%
Foodservice
11%
Contract Mfg.
8%
Consumer
Products
51%
Export
9%
Fiscal 2007 Sales $541 Million |
 2011
Business Diversification 2011 Business Diversification
8
Includes Industrial &
Foodservice
Fiscal 2011 Sales $674 Million |
 9
Peanuts
20.0%
Pecans 22.3%
Cashews & Mixed
Nuts 21.1%
Walnuts 13.7%
Almonds 13.3%
Other/Snack
Mixes
9.6%
Product Diversification
% Of Sales FY 2007 |
 10
Product Diversification
% Of Sales FY2011
Peanuts 16.2
%
Pecans 18.8
%
Cashews & Mixed
Nuts 21.0%
Walnuts 12.0%
Almonds 13.8
%
Other/Snack Mixes
18.2% |
 -31.5%
-30.9%
11
Item & Customer Optimization |
 12
* Fiscal net sales / average number of employees as reported on
Form 10-K. Temporary employees not included.
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2008
2009
2010
2011
JBSS
RALCORP
DIAMOND
LANCE
Sales Per Employee* |
 Consolidation of OVH to Gustine
13 |
 14
Total Company electricity metric decreased approximately 6% for FY11!
Total Company gas metric decreased approximately 9% for FY11!
Total Company nitrogen metric decreased approximately 8% for FY11!
Total Company water metric decreased approximately 5% for FY11!
-
0.0100
0.0200
0.0300
0.0400
0.0500
0.0600
0.0700
KwH 08
KwH 09
KwH 10
KwH 11
Total Company Electric KwH Usage/LBS.
-
0.0010
0.0020
0.0030
0.0040
0.0050
0.0060
0.0070
CCF 08
CCF 09
CCF 10
CCF 11
Total Company Nitrogen CCF Usage/LBS.
-
0.0100
0.0200
0.0300
0.0400
0.0500
0.0600
Gal 08
Gal 09
Gal 10
Gal 11
Total Company Water Gallon Usage/LBS.
(0.0002)
0.0003
0.0008
0.0013
0.0018
0.0023
0.0028
0.0033
0.0038
Therms 08
Therms 09
Therms 10
Therms 11
Total Company Natural Gas Therms Usage/LBS.
Resource Conservation Efforts |
 15
Fiscal 2011
Business Review |
 Committed to Innovation
•
182 new items in Consumer Channel
•
13 new items in Commercial Ingredients Channel
•
8 new items in Export Channel
•
16 new items for Contract Manufacturing
16 |
 Consumer
Products
61%
17
25%
vs.
FY ‘10
Fiscal 2011 Sales $414 Million
2011 Business Diversification
2011 Business Diversification
2011 Business Diversification |
 2011
Business Diversification 2011 Business Diversification
18
Fiscal 2011 Sales $161 Million
Commercial
Ingredients
24%
14%
vs. FY’10
Includes Industrial &
Foodservice |
 2011
Business Diversification 2011 Business Diversification
Contract
Manufacturing
10%
19
Fiscal 2011 Sales $64 Million
22%
vs. FY ‘10 |
 2011
Business Diversification 2011 Business Diversification
20
Fiscal 2011 Sales $35 Million
Export
5%
-
4%
vs.
FY’10 |
 21
FY 2011 Financial
Milestones |
 ($ Millions)
JBSS Stockholders Equity FYE 1991-
2011
22 |
 JBSS
Net
Sales
FYs
1991-
2011
($ Millions)
Note: FY 1997 reflects stub year
Item Rationalization, De-emphasized
Commodity Sales, Lower Prices
Low Carb Diet Run Up
23 |
 ($
Millions) JBSS Total Outstanding Debt FYE 1991-
2011
Facility consolidation
Improved operating performance
24 |
 JBSS Total
Outstanding Debt As % of Net Sales FY’s 1991 –
2011
Note: FY 1997 reflects stub year
25 |
 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
26 |
 Reconciliation of Net (Loss) Income to EBITDA
27
(In $,000's)
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
NET (LOSS) INCOME
7,595
7,691
15,027
22,630
14,499
-16,721
-13,577
-5,957
6,917
14,425
2,835
INTEREST EXPENSE
8,365
5,757
4,681
3,434
3,998
6,516
9,347
10,502
7,646
5,653
6,444
INCOME TAX (BENEFIT)
EXPENSE
5,063
5,044
9,607
14,468
9,269
-8,689
-7,520
-897
-259
8,447
-49
DEPRECIATION &
AMORTIZATION
9,974
10,428
11,248
11,190
10,501
10,000
13,584
15,742
15,922
15,825
16,968
EBITDA
30,997
28,920
40,563
51,722
38,267
-8,894
1,834
19,390
30,226
44,350
26,198
NET SALES
342,357
352,799
419,677
520,811
581,729
579,564
540,858
541,771
553,846
561,633
674,212
EBITDA MARGIN (%
OF NET SALES)
9.1%
8.2%
9.7%
9.9%
6.6%
-1.5%
0.3%
3.6%
5.5%
7.9%
3.9%
SHIPPED LBS
201,650
211,960
250,629
284,576
278,741
248,137
246,142
221,958
217,465
224,302
232,746
EBITDA PER SHIPPED
LB
0.154
0.136
0.162
0.182
0.137
(0.036)
0.007
0.087
0.139
0.198
0.113 |
 In $,000’s
* EBITDA
is
a
non-GAAP
measure.
See
slide
entitled
“Reconciliation
of
Net
(Loss)
Income
to
EBITDA”
for
reconciliation
to
GAAP
measure
28
EBITDA* |
 * EBITDA
is
a
non-GAAP
measure.
See
slide
entitled
“Reconciliation
of
Net
(Loss)
Income
to
EBITDA”
for
reconciliation
to
GAAP
measure
29
EBITDA* Margin (% of Net Sales) |
 * EBITDA
is
a
non-GAAP
measure.
See
slide
entitled
“Reconciliation
of
Net
(Loss)
Income
to
EBITDA”
for
reconciliation
to
GAAP
measure
30
EBITDA* Per Shipped Pound |
 Market prices
from survey of JBSS brokers and suppliers Nut Spot Mkt. Prices vs. JBSS Gross
Margins 31 |
 32
Highlights: Q1 2012 vs. Q1 2011
(in $‘000s except EPS)
$ Chng.
% Chng.
Net Sales
6.8%
Sales Volume (lbs. shipped)
(6.8%)
Gross Profit
Net Income
Earnings Per Share
Operating Cash Flows
Total Debt
$10,012
(3,666)
$ 1,225
6.0%
$ 1,363
126.3%
130.0%
$ 0.13
114.5%
$ 6,566
(2.9%)
($ 2,764) |
 33
JBSS Strategy Overview |
 34
JBSS Strategy Overview |
 35
Snack Nuts:
Snack Nuts:
Re-launched Snack Nuts with “Freshness You Can See”
campaign
Targeted marketing program in key markets
Aligned dedicated sales force
Baking Nuts
Launched Freshness Seal stand up bag in Q1 of FY 2012
Growing Brands to
Drive Growth and Profitability |
 Introduced several
new products under the OVH brand
Currently engaged in consumer insight studies
Three new regional customers began buying OVH
products
36
Growing Brands to
Drive Growth and Profitability |
 Introduction of
Fisher snack nuts into Shanghai, China via new distribution relationship
Increased penetration of Fisher products with global retailers
Introduction of new Fisher products in Puerto Rico, Mexico
and Central America
37
Growing Brands to
Drive Growth and Profitability Internationally |
 •
Achieved significant volume growth with Commercial Ingredient customers
through innovative new products and tailoring product offerings to changing end
user needs
•
Brought added value to our private brand customers through new packaging and
new formulations (especially in response to higher raw material costs) and
expanded product offerings
•
Increased utilization of alternative paths to serve smaller customers
•
Identified the right product and packaging options to resonate with private brand
customers in markets outside the US
Provide Integrated Nut Solutions
38 |
 39
Growing Brands |
 % $ Sales
+7.5%
(1.5)%
+2.3%
($ Millions)
Source: Nielsen FDM (Dollars)
52
Weeks
Ending
07/23/11
vs.
Year
Ago
Nuts.
Does not include Trail Mixes
Category
Nut Category Dollar Growth
40
$+2.8%
U+0.3%
$+8.0%
U+3.1%
$+7.1%
U-0.3%
1359
678
372
1460
667
381
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Snack
Produce
Baking
Year Ago
Current Year
Produce, $667,
27%
Snack, $1,460,
58%
Baking, $381,
15% |
 Private Brands
Branded
+3.3%
Branded versus Private Brand
+4.3%
Source: Nielsen FDM (Dollars and Units)
52 Weeks Ending 07/23/11 vs. Year Ago Nuts.
Does not include Trail Mixes
41
2005
2006
2007
2008
2009
2010
2011
$573
$580
$625
$682
$780
$825
$852
Dollars vs. Units (in Millions)
2005
2006
2007
2008
2009
2010
2011
$1,556
$1,582
$1,621
$1,688
$1,664
$1,808
$1,886
Dollars vs. Units (in Millions) |
 Fisher
Snacks Relaunched with “Freshness You Can See”
•
Consumers can see the quality
•
Updated, contemporary graphics
•
Recyclable, Reusable
42 |
 Supported
at the Point of Purchase 43 |
 Print
Advertising 44 |
 “Freshness
You
Can
See”
Radio:
Happy
“Freshness
You
Can
See”
Radio:
Sing
“Freshness
You
Can
See”
Radio:
Pantry
“Freshness
You
Can
See”
Radio:
Peanut
Targeted Radio in Select Markets
45 |
 46
Leveraging Sports Sponsorships to Grow the Brand |
 Old Packaging
Laydown Bag
New
New
Packaging
"Freshness Seal”
Stand-up Bag
47
Reinventing the Baking Nut Category |
 Consumers love the Fisher “Freshness Seal”
Stand Up Bag
•
Easier to store between
uses
•
Easier to reclose and seal
•
Easier to scoop
48 |
 Building the Brand with Marketing Support
In-Store Merchandising and Point of Sale
Targeted Communication in Key Markets
49 |
 Will
Build Our Private Brand Partnerships by Adding Value 50 |
 51
Closing Comments |
 “
It'll be all of our efforts together. It won't ever be
exactly the way I imagined it. And that is, I think, an
important lesson is that in any group enterprise it's
going to be the sum total of the group.”
-
James Cameron (filmmaker)
52 |
 53
Thank You |