EXHIBIT 99.1
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JOHN B. SANFILIPPO & SON, INC.
NEWS RELEASE
COMPANY CONTACT: Michael J. Valentine
Executive Vice President Finance
and Chief Financial Officer
847.871.6509
FOR IMMEDIATE RELEASE
WEDNESDAY, APRIL 23, 2003
Third Quarter Net Sales Increase 26% Over the Prior Year
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Third Quarter Basic EPS Increases More than Five-Fold to $0.17 from
$0.03 in the Prior Year
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Elk Grove Village, IL, April 23, 2003 -- John B. Sanfilippo & Son, Inc.
(Nasdaq: JBSS) today announced operating results for the third quarter
of fiscal 2003, ended March 27, 2003. Third quarter net income rose
significantly to approximately $1.6 million or $.17 per share from net
income of approximately $268,000 or $.03 per share for the third quarter
of fiscal 2002. For the current nine-month period, net income was
approximately $11.5 million or $1.25 per share basic ($1.24 per share
diluted) compared to approximately $6.1 million or $.67 per share (basic
and diluted) for the same period in fiscal 2002.
Net sales grew by almost 26 percent to approximately $84.3 million in
the third quarter of fiscal 2003 from net sales of approximately $67.1
million in the third quarter of fiscal 2002. The growth in quarterly
net sales came from gains in the consumer, foodservice, industrial and
export distribution channels. As has been the case throughout fiscal
2003, new business and increased nut consumption generated these gains.
Fueled by volume increases, changes in product sales mix and lower
peanut costs, third quarter gross profit margin, as a percentage of net
sales, was 15.5 percent versus a gross profit margin of 12.9 percent in
the third quarter of fiscal 2002.
For the current nine-month period, net sales climbed by almost 18
percent to approximately $311.6 million from net sales of approximately
$264.6 for the first nine months of fiscal 2002. Net sales increased in
all five of the Company's major distribution channels during the current
nine-month period as the Company secured new business and benefited from
rising nut consumption. Gross profit margin for the current nine-month
period, measured as a percentage of net sales, climbed from 14.0 percent
in the prior year nine-month period to 15.0 percent. The year to date
increase in gross margin percentage was similarly influenced by those
same factors that favorably impacted the third quarter gross margin
percentage.
As a percentage of net sales, selling and administrative expenses
increased to 11.2 percent for the third quarter of fiscal 2003 from 10.3
percent for the third quarter of fiscal 2002. Though selling expenses,
as a percentage of net sales, held steady from third quarter to third
quarter, administrative expenses increased primarily due to an increase
in incentive compensation expenses resulting from improved
profitability. For the nine-month period, selling and administrative
expenses continue to be lower in the current year at 7.9 percent of net
sales versus 8.7 percent of net sales in fiscal 2002. The decrease in
selling expense as a percentage of net sales for the current nine-month
period was due to cost reduction and control initiatives undertaken in
the first and second quarters.
Operating income more than doubled during the current quarter from $1.7
million in 2002 to $3.7 million. Similarly, operating income for the
nine-month period rose substantially from $14.2 million in 2002 to $22.0
million in 2003. Interest expense fell from approximately $1.4 million
for the third quarter of fiscal 2002 to approximately $1.2 million for
the third quarter of fiscal 2003 as long-term debt continues to decline.
Interest expense for the nine-month period has also decreased from
approximately $4.4 million for fiscal 2002 to approximately $3.5 million
for fiscal 2003. The decrease in the average level of interest bearing
debt and lower interest rates accounted for the decrease in interest
expense for the nine-month period.
"Due to the concerted efforts of the Company's sales force, the business
has grown across all of its major distribution channels in fiscal 2003,"
stated Jasper B. Sanfilippo, Chief Executive Officer and Chairman of the
Board. "This comprehensive volume gain was the primary generator of
the remarkable increase in gross profit dollars for both the third
quarter and the current nine-month period," noted Mr. Sanfilippo.
"Further, the Company's management team continues to work hard to
control costs in order to deliver as much of the gross profit dollar
increase as possible to the bottom line," added Mr. Sanfilippo. "Late
in the fourth quarter and throughout fiscal 2004, sales will be measured
against the higher levels of business that were achieved during this
fiscal year. Though we will work hard to secure new business, and we
will continue to support industry consumption initiatives, we do expect
that the rate of revenue growth will normalize in fiscal 2004,"
concluded Mr. Sanfilippo.
John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and
distributor of shelled and in-shell nuts and sesame sticks that are sold
under a variety of private labels and under the company's Evon's,
Fisher, Snack 'N Serve Nut Bowl, Sunshine Country, Flavor Tree and
Texas Pride brand names. The company also markets and distributes a
diverse product line of other food and snack items.
The statement of Jasper B. Sanfilippo in this release is forward-
looking. This forward-looking statement is based on the company's
current expectations and involves risks and uncertainties.
Consequently, the company's actual results could differ materially.
Among the factors that could cause results to differ materially from
current expectations are: (i) sales activity for the Company's
products; (ii) changes in the availability and costs of raw materials
for the production of the Company's products; (iii) fluctuations in the
value of the Company's inventories of pecans, walnuts, almonds, peanuts
or other nuts due to fluctuations in the market prices of these nuts;
(iv) the Company's ability to lessen the negative impact of competitive
pressures by reducing its selling prices and increasing sales volume
while at the same time maintaining profit margins by reducing costs; and
(v) the timing and occurrence (or nonoccurrence) of other transactions
and events which may be subject to circumstances beyond the company's
control.
JOHN B. SANFILIPPO & SON, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Dollars in thousands, except earnings per share)
For the Quarter Ended For the Thirty-nine Weeks Ended
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(Unaudited) (Unaudited)
March 27, March 28, March 27, March 28,
2003 2002 2003 2002
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Net sales $84,284 $67,114 $311,589 $264,628
Cost of sales 71,212 58,481 264,917 227,472
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Gross profit 13,072 8,633 46,672 37,156
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Selling expenses 5,750 4,650 16,432 16,118
Administrative expenses 3,670 2,251 8,287 6,817
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9,420 6,901 24,719 22,935
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Income from operations 3,652 1,732 21,953 14,221
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Other income (expense):
Interest expense (1,192) (1,389) (3,474) (4,423)
Rental income 118 100 362 392
Miscellaneous 1 3 2 10
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(1,073) (1,286) (3,110) (4,021)
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Income before income taxes 2,579 446 18,843 10,200
Income tax expense 1,006 178 7,349 4,080
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Net income $1,573 $268 $11,494 $6,120
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Basic earnings per share $0.17 $0.03 $1.25 $0.67
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Diluted earnings per share $0.17 $0.03 $1.24 $0.67
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Weighted average shares
outstanding
-- basic 9,182,250 9,149,915 9,163,133 9,149,229
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-- diluted 9,370,243 9,191,150 9,283,203 9,190,144
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JOHN B. SANFILIPPO & SON, INC.
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CONSOLIDATED BALANCE SHEETS
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(Dollars in thousands)
March 27, June 27,
2003 2002
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ASSETS
CURRENT ASSETS:
Cash $993 $1,272
Accounts receivable, net 28,164 24,133
Inventories 135,173 99,485
Deferred income taxes 861 861
Prepaid expenses and other
current assets 2,125 3,032
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167,316 128,783
PROPERTIES, NET 67,510 67,462
OTHER ASSETS 9,504 10,570
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$244,330 $206,815
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March 27, June 27,
2003 2002
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $44,256 $23,519
Current maturities of long-term debt 10,737 5,683
Accounts payable 19,960 17,741
Drafts payable 8,037 4,049
Accrued expenses 12,567 10,098
Income taxes payable 1,122 298
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96,679 61,388
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LONG-TERM DEBT 30,700 40,421
LONG-TERM DEFERRED INCOME TAXES 2,946 2,946
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33,646 43,367
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STOCKHOLDERS' EQUITY:
Class A common stock 37 37
Common stock 57 56
Capital in excess of par value 57,669 57,219
Retained earnings 57,446 45,952
Treasury stock (1,204) (1,204)
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114,005 102,060
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$244,330 $206,815
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