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, OCTOBER 22, 2003
First Quarter Net Sales Increase 31%
Basic EPS of $.77 per Share Increases 328% over the 2003 First Quarter
Elk Grove Village, IL, October 22, 2003 -- John B. Sanfilippo & Son,
Inc. (Nasdaq: JBSS) today announced record operating results for its
fiscal 2004 first quarter. Net income was approximately $7.2 million,
or 77 cents per share basic (76 cents per share diluted). The current
first quarter net income more than quadrupled the first quarter 2003 net
income of approximately $1.7 million or 18 cents per share (basic and
diluted).
Net sales for the fiscal 2004 first quarter increased by more than 30
percent to approximately $121.7 million from approximately $93.1
million in the first quarter of fiscal 2003. This net sales increase
was fueled primarily by percentage increases in the consumer, food
service, export and industrial distribution channels of approximately
35 percent, 33 percent, 35 percent and 25 percent, respectively. The
gross margin for the first quarter of fiscal 2004 increased to 18.5
percent of net sales from 11.9 percent of net sales for the first
quarter of fiscal 2003. Several factors contributed to this increase.
The improvement in gross profit margin for the first quarter of fiscal
2004 is primarily attributable to lower peanut costs, increased plant
utilization, and better than expected pecan shelling yield partially
offset by an increase in the amount due almond growers pursuant to a
final crop settlement and a decrease in the value of the pecan
inventory in anticipation of a lower pecan market. Additionally, in
anticipation of the implementation of the new farm bill, the Company
wrote down the value of its peanut inventory to market during first
quarter of fiscal 2003, which negatively impacted gross margins for
that quarter.
Selling and administrative expenses increased as a percentage of net
sales to 8.1 percent for the first quarter of fiscal 2004 from 7.7
percent in the fiscal 2003 first quarter. Selling expense for the
first quarter of fiscal 2004 is down from fiscal 2003 as a percent of
net sales due to increased sales volume. Administrative expense
increased for the first quarter of fiscal 2004 primarily due to
greater incentive-based compensation expense. Operating income for
the first quarter of fiscal 2004 rose to approximately $12.7 million
versus approximately $3.8 million in the first quarter of the prior
year. Interest expense in the first quarter of fiscal 2004 was
approximately $1.0 million in comparison to $1.2 million in the first
quarter of fiscal 2003. Scheduled principal payments of long-term
debt, which were made during the quarter accounted for the decline in
interest expense.
"There is definitely a substantial increase in the consumption of nuts
and products containing nuts as evidenced by our first quarter results
and the consumption data that we receive from A.C. Nielsen," noted
Jasper B. Sanfilippo, Chairman of the Board and Chief Executive
Officer. "This initial quarter of fiscal 2004 should be the prelude
to another successful year. However, the Company will not rest on its
laurels. We will continue to meet the increasing consumer demand for
nut products and continue to focus on benefiting from the message that
the frequent consumption of nut products can deliver meaningful health
benefits for consumers. As stated in our recent annual report, we
will also explore the possibility of consolidating our operations in
order to gain further processing efficiencies and to support the
growth trend that the nut category has enjoyed," 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except earnings per share)
For the Quarter Ended
--------------------------------
(Unaudited)
September 25, September 26,
2003 2002
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Net sales $121,748 $93,069
Cost of sales 99,268 82,027
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Gross profit 22,480 11,042
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Selling expenses 6,018 4,851
Administrative expenses 3,843 2,373
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9,861 7,224
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Income from operations 12,619 3,818
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Other income (expense):
Interest expense (995) (1,178)
Rental income 118 111
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(877) (1,067)
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Income before income taxes 11,742 2,751
Income tax expense 4,580 1,073
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Net income $7,162 $1,678
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Basic earnings per share $0.77 $0.18
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Diluted earnings per share $0.76 $0.18
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Weighted average shares outstanding
-- basic 9,328,884 9,153,465
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-- diluted 9,480,281 9,211,280
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JOHN B. SANFILIPPO & SON, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
September 25, June 26,
2003 2003
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ASSETS
CURRENT ASSETS:
Cash $3,173 $2,448
Accounts receivable, net 42,864 29,142
Inventories 105,701 112,016
Deferred income taxes 1,257 1,257
Income taxes receivable -- 469
Prepaid expenses and other current assets 2,285 2,192
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155,280 147,524
PROPERTIES, NET 68,451 67,117
OTHER ASSETS 8,712 9,086
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$232,443 $223,727
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(Unaudited)
September 25, June 26,
2003 2003
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $10,889 $29,702
Current maturities of long-term debt 10,946 10,776
Accounts payable 33,026 13,658
Drafts payable 10,846 5,507
Accrued expenses 12,124 12,699
Income taxes payable 3,850 --
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81,681 72,342
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LONG-TERM DEBT 21,790 29,640
LONG-TERM DEFERRED INCOME TAXES 2,964 2,964
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24,754 32,604
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STOCKHOLDERS' EQUITY:
Class A common stock 37 37
Common stock 58 58
Capital in excess of par value 58,976 58,911
Retained earnings 68,141 60,979
Treasury stock (1,204) (1,204)
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126,008 118,781
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$232,443 $223,727
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