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
MONDAY, APRIL 25, 2005
Third Quarter Net Income Increases 32% Over 2004 Third Quarter Net Income
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Third Quarter Net Sales Increase 20 % Over 2004 Third Quarter Net Sales
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Elk Grove Village, IL, April 25, 2005 -- John B. Sanfilippo & Son,
Inc. (Nasdaq: JBSS) today announced operating results for the third
quarter of fiscal 2005, ended March 24, 2005. Net income for the
current quarter was $2.1 million or $.19 per share diluted versus net
income of $1.6 million or $.16 per share diluted for the third quarter
of fiscal 2004. This is the highest net income ever reported by the
Company for a third quarter. Net income for the first three quarters
of fiscal 2005 was $11.0 million or $1.03 per share diluted compared
to approximately $19.2 million or $2.01 per share diluted for the same
period in fiscal 2004.
Net sales increased 19.8% to $120.0 million in the third quarter of
fiscal 2005 from $100.2 million in the third quarter of fiscal 2004
due mainly to higher average selling prices. By distribution channel,
there was a 17% increase in consumer sales, a 14% increase in
industrial sales, a 24% increase in food service sales, a 34% increase
in contract packaging sales and a 37% increase in export sales during
this period. Fiscal year to date net sales increased 10.4% to $437.6
million in fiscal 2005 from $396.3 million in fiscal 2004, again
mainly the result of higher average selling prices. The fiscal year
to date increase in net sales occurred across all distribution
channels, as we achieved a 1% increase in consumer sales, a 27%
increase in food service sales, a 17% increase in industrial sales, a
41% increase in contract packaging sales and a 19% increase in export
sales. Pounds shipped to customers were up slightly for the quarter
and down slightly for the year to date period when compared to the
same periods in fiscal 2004.
Gross margin decreased to 13.3 % for the current quarter from 14.5%
for the third quarter of fiscal 2004. Gross margin fell primarily
because a substantial portion of the current quarter industrial sales
were in fulfillment of old crop contractual obligations, and these
sales delivered nominal gross margins as a result of lower selling
prices in relation to current commodity costs. While the Company
recorded a reserve as of the end of the second quarter of fiscal 2005
for losses on remaining contract balances, zero profit was recognized
when these contract balances shipped during the third quarter of
fiscal 2005. Gross margin decreased to 13.2% for the first three
quarters of fiscal 2005 from 18.4% for the same period in fiscal 2004.
The decline in year to date gross margin is primarily attributable to
higher commodity costs.
As a percentage of net sales, selling and administrative expenses were
9.6% for the third quarter of fiscal 2005 versus 11.1% for the third
quarter of fiscal 2004. For the first three quarters of fiscal 2005,
selling and administrative expenses declined to 8.8% of net sales from
9.8% of net sales for the same period in fiscal 2004. While net sales
grew significantly in both the current quarter and in the year to date
period, selling and administrative expenses increased by only 4.3% for
the quarterly comparison and declined by 1.6% for the year to date
comparison.
For the third quarter of fiscal 2005, operating income was 3.6% of net
sales versus 3.4% of net sales for the third quarter of fiscal 2004.
Current year to date operating income fell to 4.5% of net sales from
8.5% in fiscal 2004.
Interest expense for the third quarter of fiscal 2004 was
approximately $1.3 million compared to approximately $1.0 million for
the third quarter of fiscal 2004. The primary factor in this increase
was the issuance by the Company in the second quarter of fiscal 2005
of $65 million of senior, ten-year 4.67% unsecured notes to finance a
portion of the Company's facility consolidation project, whereby all
existing Chicago area facilities will be combined into a single
location in Elgin, Illinois. Interest expense for the first three
quarters of fiscal 2005 was approximately $2.0 million versus
approximately $2.8 million for the first three quarters of fiscal 2004
as a result of lower average debt levels over this period.
"Despite increasing tree nut costs, we reported the highest net income
for a third quarter in the Company's history," stated Jasper
Sanfilippo, Chairman and CEO. "The credit goes to our employees, who
worked hard during the quarter to control costs and improve
efficiency," Mr. Sanfilippo explained. "Additionally, our selling
prices are now much more in line with our costs than they were in the
first and second quarters of the current fiscal year," added Mr.
Sanfilippo. "We expect tree nut costs to continue to rise throughout
the summer, however our commodity positions are more in balance with
our needs than they were last year at this time, so I believe that we
are prepared to meet this challenge," Mr. Sanfilippo concluded.
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, including a decline in sales to one or more key customers;
(ii) changes in the availability and costs of raw materials for the
production of the Company's products and the impact of fixed price
commitments with customers; (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 a
portion of the peanut shelling industry; (vi) the potential for lost
sales or product liability if our customers lose confidence in the
safety of our products or are harmed as a result of using our
products, particularly due to product adulteration, misbranding or
peanut and tree nut allergy issues; (vii) risks, uncertainties and
costs regarding the Company's facility consolidation project; and
(viii) 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 sesame sticks that are
sold under a variety of private labels and under the company's
Fisher, Chef's Naturals, Evon's, Snack 'N Serve Nut BowlTM, 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 Thirty-nine Weeks Ended
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(Unaudited) (Unaudited)
March 24, March 25, March 24, March 25,
2005 2004 2005 2004
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Net sales $119,979 $100,162 $437,648 $396,316
Cost of sales 104,043 85,688 379,796 323,505
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Gross profit 15,936 14,474 57,852 72,811
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Selling expenses 8,554 8,474 29,310 28,395
Administrative expenses 3,011 2,615 9,024 10,547
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11,565 11,089 38,334 38,942
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Income from operations 4,371 3,385 19,518 33,869
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Other income (expense):
Interest expense (1,261) (953) (1,988) (2,803)
Miscellaneous 252 119 548 356
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(1,009) (834) (1,440) (2,447)
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Income before income taxes 3,362 2,551 18,078 31,422
Income tax expense 1,311 995 7,050 12,255
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Net income $2,051 $1,556 $11,828 $19,167
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Basic earnings per share $0.19 $0.17 $1.04 $2.05
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Diluted earnings per share $0.19 $0.16 $1.03 $2.01
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Weighted average shares
outstanding
-- basic 10,571,412 9,396,394 10,564,369 9,362,123
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-- diluted 10,733,341 9,606,761 10,720,684 9,558,794
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JOHN B. SANFILIPPO & SON, INC.
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CONSOLIDATED BALANCE SHEETS
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(Dollars in thousands)
(Unaudited)
March 24, June 24,
2005 2004
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ASSETS
CURRENT ASSETS:
Cash $2,609 $2,085
Accounts receivable, net 34,905 33,735
Inventories 244,613 127,459
Deferred income taxes 1,381 1,301
Income taxes receivable -- 943
Prepaid expenses and other
current assets 1,617 2,103
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285,125 167,626
PROPERTIES, NET 71,853 69,154
OTHER ASSETS 14,281 8,339
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$371,259 $245,119
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<Unaudited)
March 24, June 24,
2005 2004
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $33,348 $5,269
Current maturities of long-term debt 1,077 1,277
Accounts payable 35,602 16,388
Book overdraft 12,831 7,926
Accrued expenses 9,998 13,912
Income taxes payable 1,562 --
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94,418 44,772
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LONG-TERM DEBT 77,019 12,620
LONG-TERM DEFERRED INCOME TAXES 7,124 6,367
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84,143 18,987
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STOCKHOLDERS' EQUITY:
Class A common stock 26 26
Common stock 81 81
Capital in excess of par value 99,158 98,848
Retained earnings 94,637 83,609
Treasury stock (1,204) (1,204)
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192,698 181,360
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$371,259 $245,119
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