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B&G Foods Jan 2013 powerpoint investor presentation slides deck ppt pdf

B&G Foods Jan 2013 powerpoint investor presentation slides deck ppt pdf

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B&G foods powerpoint investor presentation slides deck ppt pdf
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ICR XChange Conference

January 17, 2013

Forward Looking Statements
Statements in this presentation that are not statements of historical or current fact constitute “forwardlooking statements.” The forward-looking statements contained in this presentation include, without limitation, statements related to our expectations regarding adjusted EBITDA, net sales, capital expenditures and costs, including manufacturing, commodity, packaging, currency, transportation and energy costs; margin improvement opportunities and organic growth and acquisition opportunities; and the expected impact of the New York Style and Old London acquisition and the Culver Specialty Brands acquisition, including without limitation, the expected impact on B&G Foods’ net sales, adjusted EBITDA, margins, cash taxes and the level of excess cash flow available for dividend payments and deleveraging. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of B&G Foods to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “intends,” “anticipates,” “projects” or “plans” to be uncertain and forward-looking. The forward-looking statements contained in this presentation are also subject generally to other risks and uncertainties that are described from time to time in B&G Foods’ filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in our Annual Report on Form 10-K for fiscal 2011 filed on February 28, 2012. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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is included in the Appendix hereto. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. 2012. A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in B&G Foods’ consolidated balance sheets and related consolidated statements of operations.About Non-GAAP Financial Measures Certain disclosures in this presentation include “non-GAAP (Generally Accepted Accounting Principles) financial measures. Additional information regarding these non-GAAP financial measures. depreciation and amortization and loss on extinguishment of debt).bgfoods. The Company's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. income taxes.” 3 . “Excess Cash” (which we define as Adjusted EBITDA less cash interest expenses. changes in stockholders’ equity and comprehensive income and cash flows. further adjusted for acquisition related transaction costs).com under “Investor Relations – SEC Filings. Copies of these filings may be viewed at B&G Foods’ website at www. 2012 and Quarterly Report on Form 10-Q filed with the SEC on October 25. including reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. “Adjusted EBITDA” (which we define as EBITDA.” “EBITDA” (which we define as net income before net interest expense. elsewhere herein and in B&G Foods’ Annual Report on Form 10-K for fiscal 2011 filed with the SEC on February 28. cash taxes / withholding and capital expenditures plus share based compensation expense) and “Free Cash Flow” (which we define as Adjusted EBITDA less capital expenditures) are non-GAAP financial measures.

B&G Foods Strengths ► Seasoned 15 years management team that has successfully executed strategy for over ► Proven ► Track ability to source acquisitions that are immediately accretive record of repositioning acquired brands. halting sales declines and innovating for growth approach to brand management focuses growth efforts on highermargin opportunities margin structure generates significant free cash flow to returning meaningful portion of cash flow to 4 ► Tier-based ► Superior ► Enduring commitment shareholders .

0 0 0 $ 9 0 0 $ 8 0 0 $ 7 0 0 $ 6 0 0 $ 5 0 0 Branded Gross Sales $82 million 1996 $610 million Net Sales $ 4 0 0 $ 3 0 0 $ 2 0 0 $ 1 0 0 $ 0 Acquired Brands in the B&G Foods Portfolio 1997 1997 1998 1999 Sept 2012 LTM The Future Organic Growth ► ► Continue to drive cost efficiencies in the business Invest in key high-margin brands with new products and new distribution 1999 2003 2006 2007 2010 2011 2012 Bolt-On + Transformative Acquisitions ► ► ► Cash flow and EPS accretive Attractive cost synergies Capital structure well-positioned for additional acquisitions 5 .B&G Foods Growth Strategy ► Future growth to be generated through a combination of organic and acquisition driven initiatives $ 1 .

Strong Brands with Leading Market Positions ► B&G Foods has a diverse portfolio of brands in attractive niche. shelf-stable product categories across the United States.50 / unit. Specialty Pasta Sauce category includes brands where average selling price is above $3. Based on retail dollar share in the corresponding market as of 9/1/2012. 6 . Canada and Puerto Rico The Culver Specialty Brands acquisition further increased B&G’s portfolio of #1 / #2 national brands ► Select B&G Foods Retail Market Positions (1) #1 or #2 National All Fruit and Sugar Free Preserves Molasses Pure Maple Syrup Taco Sauce Enchilada Sauce Molasses Liquid Smoke Hot Cereal Specialty Pasta Sauce(2) Salt-free Seasoning Static Elimination #1 or #2 Regional Canadian Sugar-Free Sweetener Baked Beans Pickles and Peppers Beans Spice / Seasoning Maple Flavored Syrup Niche Products Deviled Meats Note: (1) (2) All-Natural Flavor Enhancer Butter Alternative Categories are defined by Nielsen Homescan Data.

Focused Acquisition Strategy ► Branded shelf-stable products with defensible market positions “like” products affords sales. distribution and G&A synergies ► Acquiring – Provides advantages over private equity buyers ► Focus on brands under $100 million in sales has generally limited strategic buyer competition margins generating significant excess cash flow ► Strong ► Current financing environment has expanded purchase multiples that provide desired accretive cash flow outcome 7 .

5% decline YTD Q3 2012 ► Higher investment in distribution expansion ► Enhanced marketing support 4.Tier Based Approach to Brand Management Drives Margins ► Tiered brand strategy has allowed management to prioritize innovation. distribution and marketing spend to focus growth on higher margin Tier I brands Tier III Brands (21% of 2012 Q3 YTD Net Sales) ► Tier I Brands (48% of 2012 Q3 YTD Net Sales) ► ► ► ► ► Higher growth potential / superior EBITDA margins vs. industry averages Limited new product activity Distribution expansion primarily in non-grocery channels Modest marketing support 9. industry averages Significant new product activity Limited growth potential / EBITDA margin at industry average Very limited new product activity Continue to rationalize distribution and exit low margin private label Tactical marketing / sales strategy 1.5% net sales growth in 2011 / 3.8% net sales growth in 2011 / flat sales YTD Q3 2012 8 .0% growth pro forma YTD Q3 2012 ► ► Tier II Brands (31% of 2012 Q3 YTD Net Sales) ► ► ► ► ► Modest growth potential / superior EBITDA margins vs.8% net sales growth in 2011 / 2.

Driving Organic Growth Through New Product Initiatives and Innovation ► B&G Foods consistently demonstrates its ability to develop new products and product extensions – Proven ability to rapidly deliver these products to customers ► Identified numerous opportunities to expand its existing brands through: – Increased consumer marketing support. product line extensions and broadened geographic distribution New Product Introductions Health & Wellness “Younger” Flavors Changing Venues Continuous product innovation has been a driving factor of organic top-line momentum 9 .

consistent with projections ► Margins ► Free cash flow consistent with projections sales / distribution infrastructure complete ► Canadian ► 39 new products across five brands being developed / considered 10 .Culver Specialty Brands Acquisition Update ► Net sales YTD September 2012 of $65.3 million – In line with 2012 projections.

Culver New Products Focused on Mrs. Dash Line 11 .

Mrs.Oct People Magazine full page ad in coveted “Sexiest Man of the Year” edition 12 .000 400.000 0 416.May Social Media and Search Engine Advertising Blogger & Online Community Marketing • • Full-page FSI .000 312.000 Fans (+380.000 134.000 200.801 April May June July August Sept Oct Nov Dec May-July Free Sample Packet Giveaway Oct-Dec Free Sample Packet Giveaway • • • • Television advertising on NBC in key markets Full-page FSI .000 100. Dash Facebook "Likes" April – December 2012 515.000 500.000 319.00 or 284%) 600.000 486.000 322.564 260.000 300.235 514.000 316.

0) ($10.0 $0.6 million Packaging Transportation/Energy Commodities 13 .0) Currency Note: Figures on bar chart represent net cost increases.4 million -$6.0 $15.0 $20.5 million +$6.Cost Projected to be Neutral in Fiscal 2013  Input costs are trending downward after increases during 2011 and the beginning of 2012 ($ in millions) 2008 +$20 million 2009 2010 2011 2012E 2013E $25.0 $10. +$13 million +$7.0 $5.0 million -$1.0 ($5.

5 million – Represents 7.New York Style and Old London Acquisition Overview Overview ► Product Overview On October 31. B&G Foods acquired the New York Style® and Old London® brands from Chipita America for ~$62. NC Expected to be immediately accretive to earnings per share and free cash flow Pro Forma Projections for 2013: Net Sales $45 million − $50 million.0x – 8.0x purchase price to EBITDA multiple – Structured as an asset purchase resulting in tax deductible goodwill and depreciation ► ► ► ► ► The acquisition marks B&G Foods’ entry into the fast growing snack category New York Style® products offer the authentic taste of New York City’s traditional neighborhood bakeries Includes a state-of-the-art owned manufacturing facility in Yadkinville. Adjusted EBITDA $8 million – $9 million 14 . 2012.

New York Style and Old London Sales Breakdown July 2012 LTM Sales by Brand / Product Croutons / Other 12% NYS Pa netini 9% Ba gel chips 37% 2011 Sales by Channel Ma s s / Drug / Dollar 9% Specialty 18% Export 8% NYS Pi ta chi ps 15% Wa rehouse / Cl ub 22% Grocery 43% Ol d London Mel ba Toast 27% 15 .

9 $501. implementing cost savings initiatives and improving productivity As a result sales and Adjusted EBITDA have grown at CAGRs of 7.3%.3 $411.3 Adjusted EBITDA ($ in millions) $161.7 $103. December fiscal year-end.3% 24.1% $89.1 $119.Superior Track Record of Growth and Profitability  B&G Foods has benefited from consistent management focused on profitable sales growth. respectively.9 26.0 $94.0 20.6% 23.9 $471.1 $543.0% 16.5% 18.4% 2005 2006 2007 2008 2009 2010 2011 LTM 9/29/12 2005 2006 2007 2008 2009 2010 2011 LTM 9/29/12 Note: As reported.0 $513.3% 16.7 $131. since 2005  Net Sales ($ in millions) $610.8% 20.5 $69.4 $61. 16 .3% and 15.3 $379.3 $486.

Capital Efficiency and Free Cash Flow   B&G Foods has consistently outperformed its competitors in key profitability metrics The charts below illustrate B&G Foods’ superior Adjusted EBITDA margin and strong free cash flow generation vs. its mid-cap food peers LTM Adjusted EBITDA Margin 30% 25% 20% 15% 10% 5% 0% 27% 24% 18% 17% 16% 15% 14% 13% Peer average = 15% 10% 10% LTM FCF(1) / Sales 30% 25% 20% 15% 10% 5% 0% 25% Peer average = 12% 21% 14% 14% 13% 13% 11% 11% 8% 5% Source: Company filings.Industry Leading Profitability. 17 . LTM as of Q3 2012 (1) Free cash flow defined as Adjusted EBITDA – Capex. Note: Averages exclude B&G Foods.

Committed to Returning Cash Flow to Shareholders ► B&G Foods’ current dividend yield of 4.2% 2.29 / share ($1.0% 0.1% is the highest among its mid-cap packaged food peers – Recently increased quarterly dividend to $0.6% 2.4% ► B&G Foods plans to increase profitability and margin expansion organically and through accretive acquisitions to drive free cash flow generation and return cash to shareholders via dividends Industry-Leading Annualized Dividend Yield 5.0% 0. representing an increase of 7. 18 .08 annualized) in the fourth quarter of 2012.2% 2.27 / share ($1.0% 4.0% 4.0% 0.3% 0. Note: Dividend yield defined as annualized dividend / current share price as of 11/27/12.0% 1.0% Source: Company filings.16 annualized) from $0.0% 2.0% 0.1% 3.0% 3.0% 2.0% Peer average = 1.

8% 111.3% ► Led B&G Foods to strong results throughout 2012.0% 90. peer average 12% 62. 2012) 300.6% – BGS THS LANC SJM MKC RAH FLO HAIN LNCE S&P 500 ► Consistently delivered industry-leading profitability and free cash flow – LTM Adjusted EBITDA margins of 27%(1) vs.0% 287.9% Significantly increased scale of B&G Foods – Grown Adj.0% 150.4% 50.9% 71.0% 200. Free cash flow defined as Adjusted EBITDA – Capex.0% 8. EBITDA from ~$62 million in 2005 to ~$176 million(1) (LTM 9/29/12). representing a CAGR of 17% ► Grown business organically and through acquisitions – Innovative product offerings – Increased efficiency of distribution capabilities – Successfully acquired and integrated 25+ brands 250. (1) SP50. resulting in stock price growth of ~20% in 2012 LTM as of Q3 2012. peer average of 15% – LTM FCF(2) / sales of 25% vs.Proven Ability of Management to Drive Shareholder Value Management Accomplishments ► Total Shareholder Return(1) – Last Five Years (December 31.0% 100. 2007 – December 31.2% 69. 19 . Includes standalone B&G Foods and pro forma for Culver Specialty Brands and New York Style and Old London Brands acquisitions as if consolidated over the LTM period.r Note: (1) (2) Includes reinvestment of dividends.1%110.0% 126.0% 73.

20 .0 $94.2% Q3 2011 22.3% Q3 2012 Free Cash Flow 24.2% YTD 10/1/2011 % margin 25.2% YTD 9/29/2012 21.4%.6% YTD 9/29/2012 Q3 2011 Q3 2012 YTD 10/1/2011 YTD 9/29/2012 Q3 2011 Adjusted EBITDA ($ in millions) Free Cash Flow(1) ($ in millions) $125.8% and 32.8% Q3 2012 Adjusted EBITDA $117.1 $128.2 $41.4% Q3 2011 $42.5 $31.6 $28.9 $460.5 31.4 $87.3 35.Third Quarter 2012 Update  B&G Foods has had exceptional performance with YTD net sales and Adjusted EBITDA growth of 16.9% Q3 2012 Gross profit $163. including the impact of the CSB acquisition Net Sales ($ in millions) Gross Profit ($ in millions) $393.0 $154.3 $40.9 $133.0% YTD 10/1/2011 % margin 27.8 27. respectively.5 $55.5% YTD 9/29/2012 (1) Defined as Adjusted EBITDA − Capex.5 26.6% YTD 10/1/2011 % margin 35.1 23.2% 32.

8% of sales vs. peers (27% vs. 3. Represents annual interest savings from partial redemption of $101. 15% for peers) − Capex: Modest capex requirements (1.Strong Excess Cash Flow Generation  The New York Style and Old London acquisition.625% Senior Notes to occur December 28. EBITDA before non-cash share based comp (-) Total capex (-) Cash taxes / withholding (-) Net cash interest (1) Strong free cash flow generation driven by: − Net sales: Stable and diversified revenue base − EBITDA: Margins “Best-in-Class” vs.5 million of the Company’s 7. and (ii) $8 to $9 million for 2013 for the NYS/OL business. 2012. net of additional interest expense from expected revolver borrowings. further enhancing B&G Foods’ already strong ability to generate free cash flow  Pro forma Pro Forma LTM Excess Cash Flow Adj. EBITDA (+) Non-cash share based comp Adj.3% for peers) − Cash taxes: ~$51 million of annual amortization to shield taxes $178 3 $181 (12) (25) (35) $109 Excess cash before dividends Note: (1) Pro forma includes B&G Foods’ base business plus the New York Style and Old London business as if the business was acquired at the beginning of the LTM period. The pro forma information in the table is based upon the midpoint of the Company’s previously announced Adjusted EBITDA guidance (i) of $168 to $170 million for 2012 for the base business. follow-on equity offering and senior notes partial redemption will be accretive to the Company’s cash flow. Pro forma also assumes that the equity offering and the partial redemption of the senior notes occurred at the beginning of the LTM period. 21 .

7x 3.4x 4. Total debt Net debt 9/29/12 – $36 144 223 249 $652 1. and (ii) $8 to $9 million for 2013 for the NYS/OL business.2x 4. Mult.71 per share.5 million  On November 27.3x 4.31 per share.B&G Foods Capitalization  On October 1. Cum.185 $162 Cum. Mult.3x 3. Cum. Mult.467 $2. 2012 Current Capitalization ($ in millions) Actual 9/29/12 $15 – 144 223 350 $718 1. Mult. Total debt Net debt Maturity 11/30/2016 11/30/2016 11/30/2018 1/15/2018 Cash Revolver Term Loan A Term Loan B 7. 2012  On October 31.161 $178 Pro forma (1) Cum. 2012 B&G Foods closed on the New York Style and Old London brands acquisition.509 $2.625% Senior Notes at a price of 107.387.5 million.3x 2.5 million partial redemption of its existing $350 million 7. with 52. Pro forma includes B&G Foods’ base business plus the New York Style and Old London business as if the business was acquired at the beginning of the LTM period. 2012 B&G Foods launched a $110 million equity offering which was upsized 15% to $126.560.625% Senior Notes Total Debt Market value of equity(2) Total Capitalization LTM (9/29/12) Adjusted EBITDA(3) Note: (1) (2) (3) 2.225 shares outstanding. Pro forma LTM Adjusted EBITDA is based upon the midpoint of the Company’s previously announced Adjusted EBITDA guidance of (i) $168 to $170 million for 2012 for the base business.7x 3. 22 .625 (plus accrued interest). with a redemption date of December 28. 2012 B&G Foods announced a $101. with 48.5 million.4x 2.3x 4.765 shares outstanding. Actual 9/29/12 reflects 9/29/12 price of $30. The purchase price was ~$62.3x 3. The offering closed on October 9. Pro forma 9/29/12 reflects 11/28/12 price of $28.7x 2. Pro forma also assumes that the equity offering and the partial redemption of the senior notes occurred on the last day of the LTM period.7x Debt balances represent gross figures and exclude OID of ~$4.

Unsaved Document / 11/12/2012 / 19:16 Appendix 23 .

0 15.8 million and the write-off of deferred debt financing costs of $4. 24 .8 million of deferred debt financing costs in connection with May 2007 prepayment of $100.7 10.8 2009 $17.7 6.1 15.0 2010 $32.5 million.8 40.6 50.5 2010 loss on extinguishment of debt includes costs relating to repurchase of senior subordinated notes.2 $129. including the repurchase premium of $10.1 $17.3 15.2 49.6 36.4 million.4 14.8 $94.0 million of term loan borrowings.6 $89.7 2011 $50.4 16.2 $119.5 $94.2 $103.2 26.4 10.3 1.1 58.7 16.9 13.0 $103. including the repurchase premium of $5.7 million and the write-off of deferred financing costs of $4.Non-GAAP Reconciliations ($ in millions) 2007 Net Income Income tax expense Interest expense.7 $119.related transaction costs Adjusted EBITDA (1) (1) 2008 $9.4 11.7 $1. In 2007 B&G Foods wrote-off $1.4 $131.4 $89. net Depreciation and amortization Loss on extinguishment of debt EBITDA Acquisition . 2009 loss on extinguishment of debt includes costs relating to repurchase of senior subordinated notes.

ICR XChange Conference January 17. 2013 .

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