John B. Sanfilippo & Son(JBSS)

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John B. Sanfilippo & Son(JBSS) - 2021 Q3 - Quarterly Report
2021-04-28 20:31
Part I: Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the quarter and thirty-nine weeks ended March 25, 2021, show a decrease in net sales but an increase in net income compared to the prior year period [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For the third quarter of fiscal 2021, net sales slightly decreased by **1.8%** year-over-year to **$207.9 million**, while gross profit increased by **7.6%** to **$46.0 million**, leading to a **9.2%** rise in net income to **$14.7 million** and diluted EPS of **$1.27** Quarterly Financial Performance (Q3 FY2021 vs Q3 FY2020) | Financial Metric | Q3 2021 (ended Mar 25) (in thousands) | Q3 2020 (ended Mar 26) (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $207,892 K | $211,624 K | -1.8% | | Gross Profit | $46,046 K | $42,805 K | +7.6% | | Income from Operations | $21,097 K | $19,397 K | +8.8% | | Net Income | $14,701 K | $13,466 K | +9.2% | | Diluted EPS | $1.27 | $1.17 | +8.5% | Year-to-Date Financial Performance (39 Weeks Ended) | Financial Metric | 39 Weeks 2021 (in thousands) | 39 Weeks 2020 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $651,740 K | $675,893 K | -3.6% | | Gross Profit | $138,173 K | $135,033 K | +2.3% | | Income from Operations | $67,766 K | $62,925 K | +7.7% | | Net Income | $47,398 K | $43,853 K | +8.1% | | Diluted EPS | $4.10 | $3.80 | +7.9% | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 25, 2021, total assets decreased to **$392.2 million** from **$430.7 million** year-over-year, primarily due to a **19.5%** reduction in inventories, while total liabilities also decreased to **$161.3 million** Balance Sheet Summary (in thousands) | Account | March 25, 2021 (in thousands) | March 26, 2020 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Current Assets | $223,783 | $262,798 | -14.8% | | Inventories | $151,757 | $188,514 | -19.5% | | Total Assets | $392,228 | $430,694 | -8.9% | | Total Current Liabilities | $106,672 | $135,209 | -21.1% | | Total Liabilities | $161,325 | $187,426 | -14.0% | | Total Stockholders' Equity | $230,903 | $243,268 | -5.1% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$77.0 million** for the thirty-nine weeks ended March 25, 2021, primarily driven by a **$20.3 million** positive change in inventories Cash Flow Summary (39 Weeks Ended, in thousands) | Cash Flow Activity | March 25, 2021 (in thousands) | March 26, 2020 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $77,026 | $34,962 | +$42,064 | | Net cash used in investing activities | ($13,620) | ($10,533) | -$3,087 | | Net cash used in financing activities | ($63,898) | ($25,027) | -$38,871 | | Net decrease in cash | ($492) | ($598) | +$106 | - The significant increase in operating cash flow was primarily driven by a positive change in inventories (**$20.3 million** inflow) compared to a large outflow in the prior year (**-$31.5 million**)[22](index=22&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail revenue recognition, lease accounting, inventory, and credit facilities, with revenue recognized upon product control transfer and plans to cease Garysburg facility operations after fire insurance payments - The company is a leading processor and distributor of nuts, sold under brands like Fisher and Orchard Valley Harvest, as well as private labels, through consumer, commercial, and contract packaging channels[24](index=24&type=chunk) Revenue by Distribution Channel (39 Weeks Ended, in thousands) | Distribution Channel | 2021 (in thousands) | 2020 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Consumer | $528,201 | $503,848 | +4.8% | | Commercial Ingredients | $64,399 | $101,447 | -36.5% | | Contract Packaging | $59,140 | $70,598 | -16.2% | | **Total** | **$651,740** | **$675,893** | **-3.6%** | - The company plans to permanently cease all operations at its Garysburg, North Carolina facility, which was damaged by a fire, with final insurance proceeds of **$2.73 million** received in the current third quarter[71](index=71&type=chunk)[72](index=72&type=chunk) [Management's Discussion and Analysis (MD&A)](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **1.8%** Q3 net sales decrease to lower volume in commercial and contract packaging, offset by consumer channel growth, with gross profit margin improving due to lower commodity costs despite rising freight expenses [Overview](index=19&type=section&id=Overview) The company's strategy focuses on brand growth and private label expansion, facing challenges from intense competition, shifting consumer habits, a wooden pallet shortage, and mixed COVID-19 impacts - The company's long-term strategy is to grow its Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts brands and expand its non-branded business with key customers[80](index=80&type=chunk) - The company faces challenges from intense pricing competition, a shift in consumer shopping to smaller store formats and online, and a wooden pallet shortage that has led to cost increases and could impact Q4 net sales[81](index=81&type=chunk) - COVID-19 has had a mixed impact: demand from foodservice and convenience store customers remains suppressed, while at-home consumption trends have positively impacted the consumer business[84](index=84&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q3 FY2021 net sales decreased **1.8%** to **$207.9 million** due to commercial and contract packaging declines, while consumer sales grew **6.8%**, and gross profit margin expanded to **22.1%** from **20.2%** Quarterly Net Sales by Channel (Q3 FY2021 vs Q3 FY2020, in thousands) | Distribution Channel | Q3 2021 (in thousands) | Q3 2020 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Consumer | $169,415 | $158,616 | +6.8% | | Commercial Ingredients | $21,052 | $30,312 | -30.5% | | Contract Packaging | $17,425 | $22,696 | -23.2% | | **Total** | **$207,892** | **$211,624** | **-1.8%** | - The increase in gross profit and margin was mainly attributable to lower commodity acquisition costs for all major tree nuts[110](index=110&type=chunk) - Selling expenses increased by **$1.2 million** (**8.7%**) in Q3, driven by a **$1.5 million** rise in freight expense due to significantly higher freight rates[114](index=114&type=chunk) Quarterly Net Income and EPS | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net Income | $14.7 million | $13.5 million | | Diluted EPS | $1.27 | $1.17 | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity remains strong, with operating cash flow increasing to **$77.0 million** for the first 39 weeks of FY2021, driven by improved inventory management and significant credit facility availability - Net cash from operating activities increased to **$77.0 million** for the first 39 weeks of FY2021, up from **$35.0 million** in the prior year, primarily due to a decreased use of working capital for inventory[129](index=129&type=chunk) - Total inventories decreased by **$36.8 million** (**19.5%**) from March 2020, mainly due to lower commodity acquisition costs for tree nuts and lower quantities of peanuts, almonds, and pecans[130](index=130&type=chunk) - The company has a **$117.5 million** senior secured revolving credit facility, with **$88.3 million** of available credit as of March 25, 2021[54](index=54&type=chunk)[140](index=140&type=chunk) - The Squirrel Brand acquisition's seller-financed note of **$11.5 million** was repaid in full during the second quarter of fiscal 2021[145](index=145&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material change in its market risk sensitivity since the disclosure in its Annual Report on Form 10-K for the fiscal year ended June 25, 2020 - There has been no material change in the company's market risk sensitivity since the last annual report[152](index=152&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 25, 2021, with no material changes to internal control over financial reporting identified - The CEO and CFO concluded that as of March 25, 2021, the company's disclosure controls and procedures were effective[154](index=154&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[155](index=155&type=chunk) Part II: Other Information [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings, with management believing the outcomes will not materially affect financial position, results, or cash flows - The company is party to various legal proceedings in the ordinary course of business, which are not expected to have a material adverse effect[65](index=65&type=chunk)[157](index=157&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No significant changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended June 25, 2020, were reported during the third quarter of fiscal 2021 - No significant changes to the risk factors identified in the last Form 10-K were reported for the third quarter of fiscal 2021[159](index=159&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) On April 28, 2021, the Board of Directors expanded to ten members with the appointment of Lisa A. Sanfilippo as a new Class A Director - On April 28, 2021, the Board was expanded from nine to ten members[162](index=162&type=chunk) - Lisa A. Sanfilippo was elected as a new Class A Director, a former employee who served in various roles, including Director of Business Development & Innovation Trends[162](index=162&type=chunk)[163](index=163&type=chunk)
John B. Sanfilippo & Son(JBSS) - 2021 Q2 - Earnings Call Transcript
2021-01-28 18:37
Financial Data and Key Metrics Changes - Net sales for Q2 fiscal 2021 decreased by 5.2% to $233.6 million compared to $246.4 million in Q2 fiscal 2020, primarily due to lower selling prices for tree nuts [5][10] - Gross profit increased by $2.8 million or 5.6%, with gross profit margin rising to 22.6% from 20.3% year-over-year [12] - Net income for Q2 fiscal 2021 was $19.9 million or $1.72 per diluted share, compared to $17.5 million or $1.52 per diluted share in Q2 fiscal 2020 [17] Business Line Data and Key Metrics Changes - Consumer distribution channel sales volume increased by 9.9%, driven by a 13.3% increase in private brand peanuts, trail mixes, and snack mixes [5][6] - Commercial ingredients channel sales volume decreased by 23.6%, primarily due to a 29.4% decline in food service sales volume attributed to COVID-19 [6][10] - Contract packaging distribution channel sales volume declined by 14.1%, impacted by lower convenience store foot traffic due to the pandemic [7][28] Market Data and Key Metrics Changes - The total nut category increased in sales dollars by 4% and pound volume by 5% in Q2, indicating a shift in consumer preferences towards smaller store formats and online shopping [30] - Fisher recipe nuts saw a 20% decline in dollar sales and 19% in pound sales, attributed to lost distribution with key retailers [32] - Orchard Valley Harvest brand experienced a 14% decline in pound sales, resulting in a pound share decline of 0.2 points [35] Company Strategy and Development Direction - The company aims to create long-term stockholder value through responsible cash use, as evidenced by the approval of a special dividend of $2.50 per share [20] - Management is focused on building stronger brands and innovative product platforms, with recent product launches such as Fisher recipe nut flowers and Rubi Real Premium Gift nuts [23][24] - The company is optimistic about returning to pre-pandemic levels in food service sales as vaccines are distributed and restrictions are lifted [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining consumer sales growth while anticipating a recovery in food service sales as the pandemic subsides [47][48] - The company is well-positioned for future growth, with a strong infrastructure and capacity to meet increased demand across all channels [58] - Management acknowledged challenges due to the pandemic but emphasized the opportunities for growth and innovation in their product offerings [36][37] Other Important Information - The total value of inventories decreased by 9.8% compared to the previous year, attributed to lower commodity acquisition costs for tree nuts [18] - Interest expense declined slightly due to a lower weighted average interest rate from reduced long-term debt [16] Q&A Session Summary Question: Can you discuss the gross margin benefits and sustainability? - Management indicated that improvements in gross margin were primarily due to lower commodity costs for tree nuts, which are expected to remain stable for the remainder of the crop year [42][44] Question: How does the pandemic impact the business segments? - Management noted a shift to e-commerce and home cooking, with expectations for a return to food service as states reopen [47][48] Question: Are there opportunities for M&A in the current environment? - Management is continually looking for M&A opportunities but has not found anything strategic that makes sense at this time [52] Question: How is the competitive landscape evolving? - Competitors are responding to changes in consumer behavior, with some aggressively expanding their distribution in the recipe nut category [53] Question: Will interest expenses decline as long-term debt is paid down? - Management confirmed that interest expenses are expected to decline as long-term debt is amortized [55] Question: What are the expectations for capital expenditures post-pandemic? - Management indicated that capital expenditures related to pandemic adjustments were minimal, with future CapEx focused on product line expansion [56]
John B. Sanfilippo & Son(JBSS) - 2021 Q2 - Quarterly Report
2021-01-27 21:36
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 24, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-19681 JOHN B. SANFILIPPO & SON, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 36-2419677 (State or Other Jurisdiction of ...
John B. Sanfilippo & Son(JBSS) - 2021 Q1 - Quarterly Report
2020-10-28 20:02
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 24, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-19681 JOHN B. SANFILIPPO & SON, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 36-2419677 (State or Other Jurisdiction of Incorporation or ...
John B. Sanfilippo & Son(JBSS) - 2021 Q1 - Earnings Call Transcript
2020-10-28 00:16
John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) Q1 2021 Earnings Conference Call October 27, 2020 10:00 AM ET Company Participants Michael Valentine - Chief Financial Officer Jeffrey Sanfilippo - Chairman, Chief Executive Officer Jasper Sanfilippo - COO Conference Call Participants Chris McGinnis - Sidoti & Company Tim Call - The Capital Management Corporation Operator Ladies and gentlemen, thank you for standing by and welcome to the John B. Sanfilippo & Son, Incorporated First Quarter Fiscal 2021 Operating R ...
John B. Sanfilippo & Son (JBSS) Investor Presentation - Slideshow
2020-09-04 18:51
Financial Performance - John B Sanfilippo & Son Inc's net sales for fiscal year 2020 were approximately $880 million[4] - Net sales increased by approximately 13% from fiscal year 2014 to fiscal year 2020[9] - The company's diluted EPS approximately doubled from fiscal year 2014 to fiscal year 2020[8] - EBITDA margin as a percentage of net sales reached 105% in fiscal year 2020[44] Sales Breakdown by Channel (Fiscal Year 2020) - Consumer channel net sales were $674 million, representing 77% of total net sales, a 79% increase compared to fiscal year 2019[21, 23] - Commercial Ingredients channel net sales were $118 million, accounting for 13% of total net sales, a 16% decrease compared to fiscal year 2019[21, 24] - Contract Packaging channel net sales were $88 million, making up 10% of total net sales, a 207% decrease compared to fiscal year 2019[21, 26] Brand Performance (Fiscal Year 2020 vs Fiscal Year 2019) - Fisher Recipe brand experienced a 29% decrease in dollar net sales and a 24% decrease in pound sales in the consumer channel[62] - Fisher Snack Nuts saw flat dollar net sales and a slight 11% decline in pound sales in the consumer channel[65] - Orchard Valley Harvest experienced a 57% decrease in dollar net sales and a 106% decrease in pound sales in the consumer channel[69] - Squirrel Brand grew by 114% in dollar net sales and 109% in pound sales in the consumer channel[73] - Southern Style Nuts grew significantly with a 281% increase in dollar net sales and an unspecified increase in pound sales in the consumer channel[73]
John B. Sanfilippo & Son(JBSS) - 2020 Q4 - Earnings Call Transcript
2020-08-20 18:03
John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) Q4 2020 Results Earnings Conference Call August 20, 2020 10:00 AM ET Company Participants Michael Valentine - Chief Financial Officer Jeffrey Sanfilippo - Chairman, Chief Executive Officer Conference Call Participants Chris McGinnis - Sidoti & Company Operator Ladies and gentlemen, thank you for standing by and welcome to the John B. Sanfilippo & Son, Incorporated fourth quarter and fiscal 2020 year-end operating results conference call. At this time, all partici ...
John B. Sanfilippo & Son(JBSS) - 2020 Q4 - Annual Report
2020-08-19 20:17
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 25, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-19681 JOHN B. SANFILIPPO & SON, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 36-2419677 (State or Other Jurisdiction o ...
John B. Sanfilippo & Son(JBSS) - 2020 Q3 - Earnings Call Transcript
2020-05-02 01:26
John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) Q3 2020 Earnings Conference Call April 30, 2020 10:00 AM ET Company Participants Michael Valentine - Chief Financial Officer, Group President and Secretary Jeffrey Sanfilippo - Chief Executive Officer Conference Call Participants Christopher McGinnis - Sidoti & Company, LLC Tim Call - Capital Management Corporation Operator Ladies and gentlemen, thank you for standing by, and welcome to the John B. Sanfilippo & Son, Incorporated Third Quarter fiscal 2020 Operatin ...
John B. Sanfilippo & Son(JBSS) - 2020 Q3 - Quarterly Report
2020-04-30 12:01
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) Commission File Number 0-19681 JOHN B. SANFILIPPO & SON, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) 1703 North Randall Road Elgin, Illinois 60123-7820 (Address of Principal Executive Offices) (Zip Code) Delaware 36-2419677 (I.R.S. Employer Identification No.) (847) 289-1800 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 1 ...