EXHIBIT 99.1
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JOHN B. SANFILIPPO & SON, INC.
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NEWS RELEASE
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COMPANY CONTACT: Michael J. Valentine
Executive Vice President Finance
and Chief Financial Officer
(847) 871-6509
FOR IMMEDIATE RELEASE
TUESDAY, AUGUST 19, 2003
JOHN B. SANFILIPPO ANNOUNCES RECORD NET INCOME FOR FISCAL 2003
Fiscal 2003 Net Income Increases 95% Over the Prior Year
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Fiscal 2003 Net Sales Increase 19% Over the Prior Year
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Elk Grove Village, IL, August 19, 2003 -- John B. Sanfilippo & Son,
Inc. (Nasdaq: JBSS) today announced operating results for its fiscal
2003 fourth quarter and year ended June 26, 2003. Net income for the
current fourth quarter more than doubled to approximately $3.5
million, or 38 cents per share basic (37 cents per share diluted) from
approximately $1.6 million, or 17 cents per share (basic and diluted),
for the fourth quarter of fiscal 2002. Fiscal 2003 net income
increased by more than 95 percent to approximately $15.0 million, or
$1.63 per share basic ($1.61 per share diluted) from approximately
$7.7 million, or 84 cents per share (basic and diluted), for fiscal
2002. Fiscal 2003 net income surpassed the previous net income
record, which was reported in fiscal 2002.
Net sales for the fiscal 2003 fourth quarter increased by more than 23
percent to approximately $96.9 million from approximately $78.6
million in the fiscal 2002 fourth quarter. The gross profit margin,
as a percentage of net sales, for the fiscal 2003 fourth quarter was
15.3 percent compared with 14.2 percent for the fourth quarter of
fiscal 2002. Net sales for fiscal 2003 increased by more than $65
million to approximately $408.5 million from net sales of
approximately $343.2 for fiscal 2002. Due to the addition of new
customers and increased sales at existing customers, fourth quarter
and fiscal year net sales increased significantly in the Company's
consumer, industrial and export distribution channels. The gross
profit margin for fiscal 2003 increased to 15.1 percent of net sales
from 14.1 percent of net sales for fiscal 2002. The gains in the
gross profit margins for both the quarter and the year were primarily
attributable to lower peanut costs and increased plant utilization
from the volume gain.
Selling and administrative expenses, as a percentage of net sales,
fell to 8.2 percent in the fourth quarter of fiscal 2003 from 9.5
percent in the fiscal 2002 fourth quarter. For fiscal 2003, selling
and administrative expenses, as a percentage of net sales, fell to 8.0
percent from 8.9 percent in fiscal 2002. The decreases were primarily
the result of increased sales and the Company's effort to control
spending in these areas. Operating income for the fourth quarter of
fiscal 2003 was approximately $6.9 million versus approximately $3.7
million in the fourth quarter of the prior year. Operating income
for fiscal 2003 rose to approximately $28.8 from approximately $17.9
for fiscal 2002. Interest expense in the fourth quarter of fiscal
2003 was approximately $1.2 million in comparison to approximately
$1.3 million in the fourth quarter of 2002. For fiscal 2003, interest
expense was approximately $4.7 million versus approximately $5.8
million for fiscal 2002. Reduction of long-term debt and lower
interest rates on short-term debt accounted for the decline in
interest expense for both the quarter and the fiscal year.
"For the fourth consecutive year, the Company has reported record
earnings, and the current year's earnings almost doubled the record
earnings reported last year," stated Jasper B. Sanfilippo, Chairman of
the Board and Chief Executive Officer. "This year's earnings
performance was fueled by a remarkable increase in sales in almost all
of the Company's distribution channels. Additionally, cost control
efforts allowed the Company to capture an increasing portion of the
gross margin that was generated by these sales increases, as selling
and administrative expenses rose by only $2.3 million while net sales
increased by $65.3 million. The Company continued to pay down it
long-term debt, which lowered its overall borrowing cost", added Mr.
Sanfilippo. Fiscal 2003 truly was an impressive year in both sales
and earnings growth, and we expect that momentum to continue through
the first quarter of fiscal 2004, after which sales growth is expected
to more closely resemble historical growth levels for the remainder of
2004," concluded Mr. Sanfilippo.
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; (v) the outcome of a pending governmental antitrust
investigation of the peanut shelling industry; and (vi) 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. is a processor, packager, marketer and
distributor of shelled and in-shell nuts and extruded snacks that are
sold under a variety of private labels and under the Company's
Fisher, Evon's, 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.
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 Year Ended
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(Unaudited)
June 26, June 27, June 26, June 27,
2003 2002 2003 2002
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Net sales $96,945 $78,617 $408,534 $343,245
Cost of sales 82,124 67,459 347,041 294,931
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Gross profit 14,821 11,158 61,493 48,314
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Selling expenses 5,639 4,929 22,071 21,047
Administrative expenses 2,306 2,548 10,593 9,365
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7,945 7,477 32,664 30,412
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Income from operations 6,876 3,681 28,829 17,902
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Other income (expense):
Interest expense (1,207) (1,334) (4,681) (5,757)
Rental income 122 184 484 576
Miscellaneous -- 4 2 14
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(1,085) (1,146) (4,195) (5,167)
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Income before income taxes 5,791 2,535 24,634 12,735
Income tax expense 2,258 964 9,607 5,044
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Net income $3,533 $1,571 $15,027 $7,691
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Basic earnings per share $0.38 $0.17 $1.63 $0.84
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Diluted earnings per share $0.37 $0.17 $1.61 $0.84
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Weighted average shares
outstanding
-- basic 9,306,324 9,150,684 9,198,957 9,149,672
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-- diluted 9,481,839 9,209,053 9,332,889 9,194,951
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JOHN B. SANFILIPPO & SON, INC.
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CONSOLIDATED BALANCE SHEETS
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(Dollars in thousands)
June 26, June 27,
2003 2002
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ASSETS
CURRENT ASSETS:
Cash $2,448 $1,272
Accounts receivable, net 29,142 24,133
Inventories 112,016 99,485
Deferred income taxes 1,257 861
Income taxes receivable 469 --
Prepaid expenses and other
current assets 2,192 3,032
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147,524 128,783
PROPERTIES, NET 67,117 67,462
OTHER ASSETS 9,086 10,570
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$223,727 $206,815
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June 26, June 27,
2003 2002
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $29,702 $23,519
Current maturities of long-term debt 10,776 5,683
Accounts payable 13,658 17,741
Drafts payable 5,507 4,049
Accrued expenses 12,699 10,098
Income taxes payable -- 298
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72,342 61,388
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LONG-TERM DEBT 29,640 40,421
LONG-TERM DEFERRED INCOME TAXES 2,964 2,946
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32,604 43,367
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STOCKHOLDERS' EQUITY:
Class A common stock 37 37
Common stock 58 56
Capital in excess of par value 58,911 57,219
Retained earnings 60,979 45,952
Treasury stock (1,204) (1,204)
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118,781 102,060
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$223,727 $206,815
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