Company Reports Record Fiscal Year Diluted EPS of
$5.40
John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the
“Company”) today announced financial results for its fiscal 2023
fourth quarter and full fiscal year ended June 29, 2023.
Fourth Quarter Summary (compared to
prior year quarter which contained an extra week)
- Net sales decreased 9.1% to $234.2 million
- Sales volume decreased 9.0% to 74.2 million pounds
- Gross profit decreased 2.6% to $54.7 million
- Diluted EPS decreased 16.0% to $1.26 per share
Full Year Summary (compared to prior
year which contained an extra week)
- Net sales increased 4.6% to $999.7 million
- Sales volume decreased 1.8% to 308.5 million pounds
- Gross profit increased 6.0% to $211.6 million
- Diluted EPS increased 1.3% to $5.40 per share
CEO Commentary
“I am very proud of our financial performance in fiscal 2023 as
we navigated through a challenging operating environment and
elevated levels of inflation and delivered a record diluted
earnings per share for the fiscal year,” stated Jeffrey T.
Sanfilippo, Chief Executive Officer.
“We also achieved an important milestone towards our goal of
diversifying our product offerings during the second half of the
fiscal year. We launched a new product line of private brand
nutrition bars and sold over $4.2 million of this bar product to a
number of our key retail partners. Our nutrition bars have been
well received by our retail partners and their customers, who enjoy
a great product at an attractive price point. We have great
momentum as we expect to continue to grow distribution and gain
additional private brand nutrition bar customers in subsequent
quarters,” Mr. Sanfilippo stated.
“In addition, we raised our annual dividend by 6.7% to $0.80 per
share and supplemented our annual dividend with a special dividend
of $1.20 per share, both of which will be paid on September 13,
2023. This strong performance would not be possible without our
talented team members whose conviction, agility and determination
are unrivaled,” Mr. Sanfilippo continued.
“Looking ahead to fiscal 2024, we are focused on accelerating
our volume growth by capitalizing on the success of our private
brand nutrition bars, strategically investing in our brands,
partnering with our key private brand customers, and exploring
strategic acquisition opportunities. We are confident we can
continue to deliver strong operating results and create long-term
value for our shareholders through the execution of our Long-Range
Plan,” Mr. Sanfilippo concluded.
Fourth Quarter Results
Net Sales
Net sales for the fourth quarter of fiscal 2023 decreased 9.1%
to $234.2 million mainly due to a 9.0% decrease in sales volume.
Excluding the estimated impact of the extra week in the prior year
fourth quarter, net sales decreased by approximately 2.1%.
Sales Volume
Consumer Distribution Channel (6.9)% (+0.3% excluding the
estimated impact of the extra week in the prior year fourth
quarter)
- Private Brand (4.7)% The sales volume decrease was
driven by the extra week in the fourth quarter of the prior year,
partially offset by new private brand peanut butter and nutrition
bar business at a mass merchandising retailer. Excluding the
estimated impact of such extra week, private brand sales volume
grew by approximately 2.6%.
- Branded* (15.4)% This sales volume decrease was mainly
attributable to a 29.1% decrease in the sales volume of Fisher
snack nuts due to decreased promotional activity at two major
customers, a 26.5% decrease in volume for Southern Style Nuts due
to reduced promotional activity at a current club customer and the
sales volume associated with the extra week in the fourth quarter
of the prior fiscal year. Excluding the estimated impact of such
extra week, branded sales volume decreased by 8.9%.
Commercial Ingredients Distribution Channel (9.8)%
The sales volume decrease was primarily due to the extra week in
the fourth quarter of the prior fiscal year. Additionally, a 33.1%
decrease in sales volume of bulk products to other food
manufacturers, which was driven by reduced consumption from
softened consumer spending, also contributed to the sales volume
decrease. Excluding the estimated impact of such extra week, sales
volume decreased by 2.8%.
Contract Packaging Distribution Channel (21.0)%
This sales volume decrease was mainly due to decreased peanut
distribution by a major customer in this channel. Excluding the
estimated impact of the extra week in the prior year fourth
quarter, sales volume decreased by 15.0%.
Gross Profit
Gross profit margin increased to 23.4% of net sales from 21.8%
of net sales in the prior comparable quarter. This is primarily due
to lower acquisition costs for all major tree nuts, which was
partially offset by higher acquisition cost for peanuts. Gross
profit decreased by $1.5 million due to the lower net sales base,
which was partially offset by the reasons noted above.
* Includes Fisher recipe nuts, Fisher
snack nuts, Orchard Valley Harvest and Southern Style Nuts.
Operating Expenses, net
Total operating expenses, net increased $1.4 million in the
quarterly comparison mainly due to an impairment of a minority
investment, increases in marketing and related consulting expenses,
incentive compensation expense, and loss on asset disposals. These
increases were partially offset by a decrease in freight and equity
compensation expense. Total operating expenses, as a percentage of
net sales, increased to 14.2% from 12.3% in the prior comparable
quarter due to the reasons noted above and a lower net sales
base.
Inventory
The value of total inventories on hand at the end of the current
fourth quarter decreased $31.9 million, or 15.6%, year over year.
The decrease in the value of total inventories was primarily due to
lower commodity acquisition costs for all major tree nuts and lower
on-hand quantities of work-in-process and finished goods inventory.
This decrease was partially offset by higher acquisition costs for
peanuts and other raw materials. The weighted average cost per
pound of raw nut and dried fruit input stock on hand decreased
24.3% year over year. This was driven by lower acquisition costs
for all major tree nuts, which was partially offset by higher
peanut acquisition costs.
Full Year Results
- Net sales increased 4.6% to $999.7 million. The increase
in net sales was primarily attributable to a 6.5% increase in the
weighted average selling price per pound, which was partially
offset by 1.8% decrease in sales volume. Excluding the estimated
impact of the extra week in the prior year fourth quarter, net
sales increased by 6.6%.
- Sales volume decreased 1.8% primarily due to sales
volume decreases in the consumer and contract packaging channels.
Excluding the estimated impact of the extra week in the prior year
fourth quarter, sales volume was relatively flat.
- Gross profit margin increased slightly to 21.2%
from 20.9%.
- Operating expenses, net increased $9.2 million to $121.4
million. The increase in total operating expenses was primarily due
to the reasons cited above as well as an increase in base
compensation. In addition, a non-recurring gain of approximately
$2.3 million from the sale of the Garysburg, North Carolina
facility, which occurred in the first quarter of fiscal 2022, also
contributed to the overall increase in fiscal 2023. These increases
were partially offset by decrease in freight expense.
- Diluted EPS increased 1.3%, or $0.07 per diluted share,
to $5.40.
Conference Call
The Company will host an investor conference call and webcast on
Thursday, August 24, 2023, at 10:00 a.m. Eastern (9:00 a.m.
Central) to discuss these results. To participate in the call via
telephone, please register using the following Participant
Registration link:
https://register.vevent.com/register/BIed8e338939754d6293c4c6e112b83793.
Once registered, attendees will receive a dial-in number and their
own unique PIN number. This call is also being webcast by Notified
and can be accessed at the Company’s website at
www.jbssinc.com.
About John B. Sanfilippo & Son, Inc.
Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is
a processor, packager, marketer and distributor of nut and dried
fruit-based products that are sold under the Company’s Fisher ®,
Orchard Valley Harvest ®, Squirrel Brand ®, Southern Style Nuts ®
and Just the Cheese ® brand names and under a variety of private
brands.
Forward Looking Statements
Some of the statements in this release are forward-looking.
These forward-looking statements may be generally identified by the
use of forward-looking words and phrases such as “will”, “intends”,
“may”, “believes”, “anticipates”, “should” and “expects” and are
based on the Company’s current expectations or beliefs concerning
future events and involve risks and uncertainties. Consequently,
the Company’s actual results could differ materially. The Company
undertakes no obligation to update publicly or otherwise revise any
forward-looking statements, whether as a result of new information,
future events or other factors that affect the subject of these
statements, except where expressly required to do so by law. Among
the factors that could cause results to differ materially from
current expectations are: (i) sales activity for the Company’s
products, such as a decline in sales to one or more key customers,
or to customers generally, in some or all channels, a change in
product mix to lower price products, a decline in sales of private
brand products or changing consumer preferences, including a shift
from higher margin products to lower margin products; (ii) changes
in the availability and costs of raw materials and ingredients and
the impact of fixed price commitments with customers; (iii) the
ability to pass on price increases to customers if commodity costs
rise and the potential for a negative impact on demand for, and
sales of, our products from price increases; (iv) the ability to
measure and estimate bulk inventory, fluctuations in the value and
quantity of the Company’s nut inventories due to fluctuations in
the market prices of nuts and bulk inventory estimation
adjustments, respectively; (v) the Company’s ability to
appropriately respond to, or lessen the negative impact of,
competitive and pricing pressures; (vi) losses associated with
product recalls, product contamination, food labeling or other food
safety issues, or the potential for lost sales or product liability
if customers lose confidence in the safety of the Company’s
products or in nuts or nut products in general, or are harmed as a
result of using the Company’s products; (vii) the ability of the
Company to control costs (including inflationary costs) and manage
shortages in areas such as inputs, transportation and labor; (viii)
uncertainty in economic conditions, including the potential for
inflation or economic downturn; (ix) the timing and occurrence (or
nonoccurrence) of other transactions and events which may be
subject to circumstances beyond the Company’s control; (x) the
adverse effect of labor unrest or disputes, litigation and/or legal
settlements, including potential unfavorable outcomes exceeding any
amounts accrued; (xi) losses due to significant disruptions at any
of our production or processing facilities or employee
unavailability due to labor shortages; (xii) the ability to
implement our Long-Range Plan, including growing our branded and
private brand product sales, diversifying our product offerings
(including by the launch of new products) and expanding into
alternative sales channels; (xiii) technology disruptions or
failures or the occurrence of cybersecurity incidents or breaches;
(xiv) the inability to protect the Company’s brand value,
intellectual property or avoid intellectual property disputes; and
(xv) our ability to manage the impacts of changing weather patterns
on raw material availability due to climate change.
JOHN B. SANFILIPPO & SON,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in thousands, except
earnings per share)
For the Quarter Ended
For the Year Ended
June 29, 2023
June 30, 2022
June 29, 2023
June 30, 2022
Net sales
$
234,222
$
257,748
$
999,686
$
955,868
Cost of sales
179,504
201,563
788,055
756,241
Gross profit
54,718
56,185
211,631
199,627
Operating expenses:
Selling expenses
18,882
19,986
76,803
76,882
Administrative expenses
14,308
11,786
44,604
37,657
Gain on sale of facility, net
—
—
—
(2,349
)
Total operating expenses
33,190
31,772
121,407
112,190
Income from operations
21,528
24,413
90,224
87,437
Other expense:
Interest expense
331
599
2,159
1,921
Rental and miscellaneous expense, net
237
273
1,321
1,347
Pension expense (excluding service
costs)
348
618
1,394
2,473
Total other expense, net
916
1,490
4,874
5,741
Income before income taxes
20,612
22,923
85,350
81,696
Income tax expense
5,939
5,509
22,493
19,909
Net income
$
14,673
$
17,414
$
62,857
$
61,787
Basic earnings per common share
$
1.27
$
1.51
$
5.43
$
5.36
Diluted earnings per common share
$
1.26
$
1.50
$
5.40
$
5.33
Weighted average shares outstanding
— Basic
11,594,547
11,549,847
11,576,852
11,537,699
— Diluted
11,670,214
11,607,612
11,642,046
11,593,949
JOHN B. SANFILIPPO & SON,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(Dollars in thousands)
June 29, 2023
June 30, 2022
ASSETS
CURRENT ASSETS:
Cash
$
1,948
$
415
Accounts receivable, net
72,734
69,611
Inventories
172,936
204,855
Prepaid expenses and other current
assets
6,812
8,283
254,430
283,164
PROPERTIES, NET:
135,481
132,572
OTHER LONG-TERM ASSETS:
Intangibles, net
18,408
17,715
Deferred income taxes
3,592
3,236
Operating lease right-of-use assets
6,427
2,303
Life insurance and other assets
6,949
8,272
35,376
31,526
TOTAL ASSETS
$
425,287
$
447,262
LIABILITIES & STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Revolving credit facility borrowings
$
—
$
40,439
Current maturities of long-term debt,
net
672
3,149
Accounts payable
42,680
47,720
Bank overdraft
285
214
Accrued expenses
42,051
31,240
85,688
122,762
LONG-TERM LIABILITIES:
Long-term debt, less current
maturities
7,102
7,774
Retirement plan
26,653
28,886
Long-term operating lease liabilities
4,771
1,076
Other
8,866
7,943
47,392
45,679
STOCKHOLDERS' EQUITY:
Class A Common Stock
26
26
Common Stock
91
90
Capital in excess of par value
131,986
128,800
Retained earnings
161,512
153,589
Accumulated other comprehensive loss
(204
)
(2,480
)
Treasury stock
(1,204
)
(1,204
)
TOTAL STOCKHOLDERS’ EQUITY
292,207
278,821
TOTAL LIABILITIES & STOCKHOLDERS’
EQUITY
$
425,287
$
447,262
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230823270318/en/
Company: Frank S. Pellegrino Chief Financial
Officer 847-214-4138
Investor Relations: John Beisler or Steven Hooser
Three Part Advisors, LLC 817-310-8776
John B Sanfilippo and Son (NASDAQ:JBSS)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
John B Sanfilippo and Son (NASDAQ:JBSS)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024