SMPL - Earnings call transcript Q3 2018 | The Simply Good Foods Company

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Operator

Greetings and welcome to the Simply Good Foods Company Third Quarter 2018 Earnings Call. At this time all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Mr. of for President Good Vice Pogharian, Investor Simply Relations Foods. Mark you. Thank

begin. You may

Mark Pogharian

the have. for analysts quarter be and is release of morning, Thank release Joe section available side webcast CFO being Good provide which archive The Call copy Eastern to issued this are you, Scalzo results, Foods of the morning you by fiscal The the investor call remarks I Earnings today's of pleased a the may company time. questions and the Melissa. Q&A will Good President be live on am an and to that company's Todd [ph] at May will session ended and XX sell of welcome an a.m. followed presentation CEO days. also you for the earnings the Company website accompanying with approximately then website, the XXXX. XX overview third available at Cunfer, X under will This Simply A for www.thesimplygoodfoodscompany.com. an

filings. obligation materially. make company of of that today's A such cause will various can found differ release call, uncertainties results management be risks that listing update to may in based press statements statements on the course subsequent the to subject During and are no today's uncertainties undertakes SEC these detailed forward-looking actual to The company's events. risks and in

be financial earnings based May finally, information non-GAAP The weeks references May a in to for our the historical assumptions with, on that XXXX, the the and its are upon transactions provides to financial as as of today's XX and a The evaluate XX, combination will been release XXXX. transaction combination that, successor basis. And of on statements EBITDA, the fiscal information forma of All which In Chief believes information on Today's investors beginning basis measures. XX comparable pro forma results business With forma the as turn most my company to completed predecessor measure reasonable over business directly for our and reconciliation to and is applicable. and impact in ended weeks earnings pro if related financial operating make ended Scalzo, XX, information fiscal it addition, to information useful XX will to believes had of release the XX it performance. XXXX. Officer. includes company's pro available GAAP management pro the unaudited non-GAAP financial President the reflect Joe weeks measure has entities financial forma order pleasure and on management adjusted of a the forma the financial pro with that XXXX call provide the discussed and measures a adjustments are today unaudited now presentation Executive included to weeks

Joseph Scalzo

will I'll year-to-date to have and partners Directors, discuss whose quarter our of Good employees into work of and of strong our all morning, the and third after a it, thank efforts get myself our an the update Todd our to that results business, be highlights, that, the resulted discussing hard your you, of open we and financial before questions. for today. on provide on you, the recap say Today, quarter Mark. us. joining Thank marketplace call results, But to financial third we'll in our behalf then Board everyone, want you and thank summary we'll I business our

the year. the half business of we momentum in first strong Our third quarter continued the experienced

net up XX.X%. EBITDA For adjusted with sales the XX.X% third organic grew quarter, year-over-year

meal convenience, X.X powerful contributor the the QX continues the rich growth about tailwinds underscore carb, growth was replacement points. to sugar, and low strength nutritious biggest low of our and topline brand percentage snacking in Our products. of to protein macro Volume

was distribution and expenses is capabilities growth including enhance Additionally, we by favorable were trade the of and in X.X point direct business lower the the in slightly requirements. The growth. a EBITDA a cost that preparation incremental key year investments investments adjusted gains compliance direct and percentage result trade. company costs, sales to functions, future mentioned These versus a public for sales the organizational partially earlier in marketing increase and contributor offset higher to

And growth the business about We investments total on-air percent do e-commerce the advertising in-store e-commerce X there's sales, seeing to all up the total anticipate business X% will we've channels. increase our continues our combined with to point at year-to-date. year a Given of of fiscal across sales made and well, least we're solid in our across programming, sales. XX%

initiatives, period XX, per our For growth opportunity addressing seeking an consumers, is carb U.S. up POS times than IRI target. programmatic Growth the measured greater year-to-date, is channel weight XX-week marketing our driven by ended May low four XXXX, lifestyle original X.X%. strategic was loss

on X.X%, Our wave e-commerce strong, response to is growth. consumer advertising QX initial in this POS of having up in business, measured robust. which [his] first our growth sugars The continues excludes a positive was our channel to Rob be impact Lowe

and & resonating strategic to base Feature the in velocities new believe campaign driven POS we slight earlier We bringing that velocity year, our are part growth, activity. declines as base performance in our coming by to the of expect Display distribution The offset Over declines consumers year, our it's we encouraging volume strong outlined is strength this from specifically continue. entirely remainder franchise. in retail initiatives our is the as partially strong of most with our by well marketing

initiative The highest new And among already. consumer preferences packaging some for recognizable of product refreshes and shelf recent isle are label items ingredients. on our improved presence delivers introductions several clean fewer Our our velocity ability. of shop

Our strong flexibility give invest business. the results to financial us the in

momentum and marketing, XXXX, strategic making carry fiscal building e-commerce initiatives as into in brand topline enable half the our that should businesses and second year. growth in the of well incremental as brick-and-mortar discussed last next we're investments we drive us further As our both quarter, in to supporting

Additionally, we're including functions enhancing compliance for preparation organizational capabilities requirements. future and key our

entered we we initiative we that will quarter, the us maintain that As strong improvements gross strategic a will sourcing enable supply-chain our believe in to kicked fourth significant result margins. off

details. next implementation second year. As We're Todd quarter be this to such, for logistics. I'd savings in some The co-manufacture of and specialist associated we half provide supply fiscal anticipated program to the will us half have achieving on with processes this in make an overview to the industry program procurement, Todd? with as as assist engaged the now and implementation. year well in an the fourth with call who'll cost encouraged Cunfer the of We over additional first next turn like the with in program the you financial to focused

Todd Cunfer

and everyone. good morning, Joe, you, Thank

two Let on numbers it to relates will me the slides points with the follow. to start which as be

comparative all August XXXX, XXXX, as purposes, for pro XX, First of occurred results the fair quarter on statements amortization XXXX, statements period basis. and a forma we which today had the year-to-date this new interest value helpful the financial business will expense if assets business ended We and measures for believe May structure. on financial the unaudited will purchase capital the the of XX, for presents quarter based of provides financial during expense information be and ended based after XX, forma May as this culmination our pro discussion discussed performance the including on the and year-to-date review on and combined

adjusted EBITDA on an we evaluate strong also [ph] wise asset basis model. performance our flow Second, on our based cash

GAAP reconciliation release. key the to EBITDA a underlying detailed We this a today's in We performance have indicator adjusted net measure business. included from true income the believe is of of press

by company third The in by a quarter other in the the cost follows, Reform expense, rate of basis sales public point distribution XX.X% incremental we XX.X%, investment $XXX.X are organic selling it trade points, percentage offset last increased million, as ROI results a accelerated percentage was XX.X% to the up discussed and XX.X% to a by forma adjusted net focused gross increase portion quarter expenses to to previously ago partially assumed versus due Act, trading expense, at XX% on year The and were Gross direct primarily the increased was increase rate to in marketing to million. XX.X% core to Due including ago margin is profit third discussed up pro volume growth XXX slightly activity and higher in status. year with effective increase quarter, an X.X expenses. program. period. which points direct versus of increase benefit higher million net to sales as X.X was promotional driven period The $XX.X profit gross our includes XX.X% Tax G&A EBITDA $XX.X XX.X% about was lower in lower a and the tax driven capability

We continue will the to around full anticipate year tax that XX%. be rate

As results up as a Year-to-date a company increase to direct XXX trade Year-to-date previously and million. million and basis public gross of in a points and $XXX.X G&A distribution organic X.X% $X.X profit favorable product a and X.X% was was increased percentage million. core benefit points, growth. follows, gross to contribution Wellness point were increase marketing a EBITDA favorable percentage increased sales point additionally offset mix. net XX.X% XX.X% net lower direct to adjusted and to XX.X% is accelerated costs, the driven transaction income and net partially selling are expenses $XX.X as costs, X.X% of with by $XXX.X result SimplyProtein to acquisition XX.X% to of to capability increase up trade result, by This million percentage growth X.X Year-to-date, expenses. due expense X.X was including higher sales increased volume million of Foods, $X.X cost discussed in other margin X.X

disclosure gain of our million as $XX TRA. a deferred gain the recall million on quarter remeasurement a second Additionally, liability $X.X tax in

of flow to in the than asset cash result, model, benefit $X.X new by our strong by full million. a website application. estimate cash $X for $XX.X to As Capital million. first slightly less be from million investment to were income We approximately XXXX The company very million, which attractive our primarily net underpinned year expenditures generation. $XX.X and driven enabled increased light media flow months digital characteristics X continues CapEx

that Wellness includes note Foods, the Wellness four I sales. for we please a brand quarter, however, sheet, lack move of Fiscal balance to catch months of second of fourth quarter SimplyProtein net on acquisition in the Foods the the up Before XXXX

the do third not in quarter quarter XXXX. fourth we trade direct Additionally, of repeat will expect favorable that the

cash us growth. with and Moving on and to cash flow the solid support balance financial company's flows. future balance to The sheet provides sheet flexibility

pro a $XX.X borrowings company $XXX XXXX, net about adjusted XX, outstanding loan credit in available the times. of May a line cash debt of remaining term to May of on million company had ratio revolving As outstanding million no $XX as a with X.X XX, also of forma EBITDA million the The resulting XXXX. of and has

Lastly May, it turn financial back Moody's Joe & in late and like remarks. would brief debt reaffirmed the rate. now company's few Standard overview. closing I a concludes my to to for That Poor's

Joseph Scalzo

adjusted achievable strong, Todd. in your our algorithm rate. that, be And In strong discussed and We available of we rate target our previously sales slightly opportunities XXXX business you, growth about and ability the and EBITDA the we interest questions. and believe the result growth. creation will third our moving growth with shareholders. growth net adjusted And in to sales value in POS forward expect to good in deliver of than we Including to We to for realistic, year in POS we growth June summary, the the believe generating to Thank business, for that the greater our remain in is our we The in similar I be our year-to-date company. incremental growth marketplace confident lastly, investments full strategic remained to the initiatives. than take quarter investments X% very execute Todd the it annual and appreciate EBITDA sales sales delivered in the growth. net growth on in net long-term made that. everyone's business confident feel lower will anticipate is now X% it are we

Operator

with comes you. Instructions] question. with first Our Please English [Operator the proceed Sachs. line your Jason Thank question of Goldman from

Jason English

Hey, good folks. morning

Joseph Scalzo

Morning, Jason.

Jason English

question. got Thank the you ask I've let for a me couple.

cognizant our to there timing on spend the the contrast Can be out as this off, one spend, the overall, benefit more related should to the line. it the trade which forward? dynamics What's ability transitory, that to you pull we industry about there? be increased the driving and about we talk is putting to anything trade more think First seems stands money and above with

Todd Cunfer

Yeah, Jason Todd. it's

got activity last QX beginning to some year, more the below marketplace, amount repeat some as we So into money we POS for strength as to we with it, we core that we that of it was year, so our this decided returns the and to liked, lacked not activity. in little spend we not the due as in QX, the that much really the decided bit more business a coming had of of

So base the put amount really decline our we last great that managing doing trade in a that were we was just job majority year. but

Jason English

contemplate building of the Callisto think on expand the to see that long Is sustain that initiative. I a little in And you, Joe, so designed fact on this come? strategic it so or And headwinds helpful. this the not the That's to sorry supply of response coming is the margins, a do your out Okay. that not there with you initiative gross guess the was have Was the sourcing there? margins, risk of this then to is to question new much bit I whether then, winded, mentioned some who initiative, Canada? listed anything again, is gross that, strong raises is

Joseph Scalzo

not -- XX margin algorithm response basis you know headwinds we XX actually a do year. our gross in have not improvement points Yes, and of to to

inflation we say goods dealing for our in of be find point least this how as your of very play use our point, arrow early guess as any us would relatively will with right to look can We vis-à-vis good just a now this mine. at I that up you dynamic tariffs. significant basket see going can deficiency feels another services future, we on that what's out yet right So in next as our But the in quiver anticipate year, a it now. view, we is is to in we don't business, given know and providing environment mean benign. at from step little inflation, into it's

Jason English

be suggests do spill implicit cost you as in nature? for your to how Is And - the fourth cost might of implementation on your next year? sales. related on depending you quarter those below may down bulk EBITDA be the plan the flat you interpret the that that some will guidance guidance mid-singles EBITDA slightly into that treating in may to mentioned implementation Or on that onetime

Todd Cunfer

embedded will No, they -- they're in the EBITDA calculation.

you kind of that to EBITDA drivers So there's three really that implicit QX mentioned.

it well. so very need those costs, off recent is this, just to in then with the set we continued So POS over our a our third and it in up strong comp delivering step in of QX quarter, And investment. increase our of that's really hitting is as take implementation marketing

Jason English

That's a high it I’ll quality on. problem. pass Thanks guys

Todd Cunfer

Thank you.

Operator

you. Thank

comes line proceed Smith from question Please Matthew question. you Our next the with with of Stifel.

Matthew Smith

strong benefits from a by margin saw We the limited gross benefit volume trade volume copacking benefited or promotion gross also margin agreements? good the morning. growth Hi, the efficiency. Did

Todd Cunfer

fixed as we're you're assets. the lower not leverage leverage do from So that volume. typical leveraging outsourced, co-mans, where tend through fact and volume in-house going get mentioned, the bit get We higher more the a fact there's limited our manufacturing of that little those really your we but cost and to the rebate you

Matthew Smith

fourth Given that what too quarter, forward? benefit the basis to strong in and going it volume could performance Or really you accelerate on see is a matter? expect year-to-date small the you

Todd Cunfer

It's not a impact. major

Matthew Smith

you. great. Thank right, All

Operator

you. Thank

Consumer line your of Please question with comes Research. Holland next the with question. Edge Brian Our proceed from

Brian Holland

Thanks. morning, Good everyone.

implied topline just delta it topline we're and for but offsets seeing by tremendous should I us between this out in any growth, of offsets guys, at the there. of scheme then some you're at the in you Canada help be be XX% And guess, doesn't we to may range guidance I question mindful the guess what's to now X% the reconcile, scanner, about data point? can things. QX what trying obviously, implied of seem material be so understand of understand other just something too morning your growing this performance But First that I you in scanner grand

Todd Cunfer

some so business call, the lapping Wellness have we as do that's Yeah, percent. four I the but headwinds of about a in Foods mentioned months with

been business great scanner the having June always and we've there. in As year-end resets international and shipments we new at our of lots and of difficult I around been because restructuring a beginning in discussing, we've is bubble data. will there's be to is year things also in declining next got year-end that an so off said that impact. there's so shelf It's in there QX, sometimes some between and promotional on the noise just

about leave that. feel that - there it given I'll and So the we good at guidance we've

Brian Holland

that that - data If healthy are guys pretty I driven, just being that have top of coming curious it's I of up? you the underlying in Is enough. balance back households household of we behavior know this per tracking the and little both, you like? the consumer talked Is household Fair velocity talked for ask new Okay. servings that it a penetration kind kind a at suggest of that as so I could just of what closely, balance a trialing? coming maybe performing, all by looking households looks in mix you growth? -- it I how and extent trust such about if bit maybe know curious of but we guys about going things year-to-date servings peel can you sense are that you line I'm metrics before. growth that's Can any provide to about buyers,

Joseph Scalzo

Yeah.

you the prior and year buyers as same rate in in more period both the buying is buy healthy. have mentioned, We year-to-date

going business. targeting is our combination just sugars, for now the which we've strategy the they're million those as targeted after XX low we're a We're had things, of those, improving of business, we we seeing to carb of remind uptick were weight and them POS which lifestyle fundamentals leading a to is then X core about million our the consumers. we're low-sugar, programmatic So protein-rich we're loss share. to our consumers, XX consumer encouraging of nice in folks right, And low-carb, And with both is, seeing a about results. getting

Brian Holland

last of - talked of XX% I you've higher guess last as bit you're before to towards a X% maybe quarter that one end marketing talked I spend, And the you XX%. shifting of for about little think sort a sales, me, percentage above

Given end even more and you're the approach focused on that a about sort the of to that -- seeing, may high a of to momentum? think XX% guys be may returns bit above the of that to X% we you continue as kind little or should little range this continue be move

Todd Cunfer

in marketing I we as so quarter. incremental do Yeah, mentioned fourth the earlier, have

yes, grow can continue the the So expect marketing in I net sales future. for you high to us year be at with -- and goal end think at our is to the will least we

models So your to I way. that of in in it continue you think should think

Brian Holland

it. Appreciate Best of luck.

Operator

Thank you.

Our proceed next with from your Rob of Please Bank. question question with comes line Dickerson the Deutsche

Unidentified Analyst

timeline morning. on Rob. Do successes SimplyProtein quick two good question. for have ones. to have you're Hey, the share on able launch? any for Thanks I It's Matt or early updates you

Joseph Scalzo

about A Matt. little to too that early talk

to starting we're customers. to sell it So just

happy do about, to POS -- can we we you we'll be results that. more some give that get we insight some So talk into, when

Unidentified Analyst

to a or And then to with larger a history, more portfolio targets on run environment, just the M&A why Simply cetera? Perfect. acquisition join from over et continuing a company selling Okay. Foods hypothetical independently food resources, business diversity Good perspective,

Joseph Scalzo

to sell I'm independent Matt, bigger? why somebody sell I not your understand us the somebody to or sure question, versus would

Unidentified Analyst

Right.

potential larger M&A So attractive to is competitive Simply your you relative CPG sure -- environment company? are perspective I'm Good space seeing, guys selling in given obviously, company a Foods is that as if to the the a growth pretty what about that parent

Joseph Scalzo

second, question. interesting we'll and value, synergy That's things. a mean aside besides I all set value put for an -- those

to marketing balance that Best quickly a the ideas, is the ideas, strategic do to I example place lean get invest, eating good initiatives thing identification to speed around to sugars low-carbers, concept we've get the a capture to And shown celebrity and Lowe, relatively too business in we're to consumer maintain that willing the a execute give market think is pretty proxy management order think and to Rob as see and running you and turning business of those. forward. can of results, then I be quick marketplace self moving them I smart like and hardest at for results in directive is those a in right? team that thinking in a ability to good mining invest hidden many to and the carbs the

to be and opportunities comment to company that's about drive to and a to our a our not So company, in ability shown and organization do. able growth, larger a negative to entrepreneurial moving be the that's looking sell capture in it's on we've quick been able we've positive marketplace comment

you talk that. it that their to business, that think to is attractive, sell be to especially good hands growing, if I to in going note continue people it's but we've looking ability going are to nurture do and the to shown want to founders So

Unidentified Analyst

interesting. Perfect, Thanks. yeah. Very

Operator

SunTrust Humphrey. the of [Operator line question. comes with next from your Our Robinson you. Please Bill Chappell Instructions] question Thank with proceed

Bill Chappell

Thanks. morning. Good

Joseph Scalzo

Bill. Morning,

Bill Chappell

a pretty on get how quick the a project? kind know payback whenever is initiatives, that if quick but if back? type a timeline in of you'll multiyear like benefits there didn't the sourcing of will pay it's It's this or Just is 'XX

Todd Cunfer

working the the really will project. want don't we investment. total, we're savings we'll feel get good will would to about We on expense the least to start take months specificity XX incurred, payback that it that the from on amount half. us but I amount but say we of save is at initiatives this fast all second different impact will we of we're be the pretty be next in get QX half may mentioned and the as year year, on I Yes. the all anticipate our that first spending into a that full when to the get

Joseph Scalzo

people. We're not patient

Bill Chappell

with want I look that. to easy

space possible in but ACV The kind have within level categories, alluded and I category. the resets your of is with you meaningful second more for a kind you high normal year do some is into I gains it high in see and the which of shelf fall to you scanner expansion? in fall, get terms new -- it shelf understand of Rob of the guess next customers with new Lowe running, the I is you or data Is share -- certainly where kind space think popping a your of up?

Joseph Scalzo

Yes.

the First to we're I the that playing what hard haven't So seeing to first right things of ability items But even fall, we as and your going predict XX% foremost would and it's the in right? pretty around say productivity those shelf space -- heard get like in answers good we the store the of the I metrics your forward, now, so our are. base is that's indicator are light normally velocity, on to the the speak up to out shelf. range. That a incremental

I that line-up starting we've to think put products got, of the the fall. to set, in I into offered like that customers the So we've

to strong. now us we're could is think we results believe products. more world combination two of the people Like progress. that us that even distribution make business confident in are coming we things flat to is the are results our shelf that what actually I right more the be buying and So happening getting make going some optimistic made Frankly, those

feel front of feel than the putting Now business products few just the could trajectory and a core without like marketplace we -- but of that we business can to now, good in them, believe we now. we I'd about our the would new put them about products right and incrementally we're new our those the better interesting like good we perform in right

tell to quarterly bit you a little in So the there progress will we earnings. more be able the about probably next

Bill Chappell

the understand, is kind had of Lowe new been and going to move? and at label where really you there back, the just key as look to guess we stand look Great. to the new one was expanded And into that where kind clean the -- demographic, I do do this me, to case for Rob more trying you're then there on to you expanding of key still that packaging kind and need that kind reach last a market, was is and talk of of whole

Joseph Scalzo

a I there question always more do. as and CEO, love the to is

that their So I there been core will tell we teach. doing. what' smarter been barriers has more of what we're is, is nutrition. what core the to has to you brand business burn lowers helping and and about been to talking That's doing them they of and is enter our more around of for cleaner make that just better And believe there people. refresh, can we've But the feed we self-directive always The into the carbers core the we've driving been low bodies. can it is giving people always the information the packaged the how about label,

equally that's And is low-carbers. to and bodies. to to of compelling appears encouraging kind the Atkins So good path the think is, your you what on you're loss you to as that press provide education weight think I putting bodies we to in down, can it that's you a rely programmatic going be you'll as we're it part what directive that your folks kind be of -- should and us around putting self continue the in path it of see

that like. efficiency is we in there So that really an

Bill Chappell

Got it. Thanks much. so

Joseph Scalzo

Thank you.

Operator

you. Thank

question next question. proceed from with a of line Please the your is Our Goldman follow-up Jason English with Sachs.

Jason English

may question for to suitor answer to your the me allowing Thank a guys. interesting. follow I again, was ask you strategic saw the Hello be why preferred up. on you

tax ability, size and You area structure. lot your you given and I focused to didn't advantage on culture touch deal a was capabilities, which the a facilitate appreciate. on respect One

policy so, that why So something that was I the Is see something has answer tax you may It why you it a what part is there? then like add appetite little of topic, part can on. we're look can further your us update stands an RMT. pipeline when Any on conversation if like? on the the changed give where If acquisitions likelihood you and early of it? your color there? an my of? wasn't question And guess for

Joseph Scalzo

Yes.

are think question to assets deal throughout preponderance fishing? where we're we've to that consistently standpoint, capability, of it's space, could snacking I the and From a the who we as your So core pretty core year, the if I think our we like a is, progressed we it's said I looking are at. and it nutritional we've paraphrase is

at So a we appreciate position doing being team? add the center current we're its value the could we of could tax where asset, of asset larger believe just and in and category? most brand we significant and the owner, appreciated under other asset our It's would believe fishing. it it's we of it. a that have be store, capability larger we advantage, probably because we it The sub and like that Do looking. amount And snacking upon simple in consider based does a that became is do available, in Or not like because And we significant we brand but we're probably it management where over we management criteria, would capability tax few team? recruit do it it's we would category? there, absolutely believe the consider it's a mostly

answer -- the I question? your So those did are

Jason English

Yes.

of answered question. -- kind you of You part my a

answer than question prior you tax And to can them the snacking within businesses your interpretation? outs, about answer my talking a offer? RMT why the be buying of more the that. And an standalone likely to you where fair other is, that aren't structure you're maybe sense. make embedded advantage out rather The assets part where more Is would was nutritious are carve right just

Joseph Scalzo

larger definition by outs And opportunistic. more carve the Yes. are

So those you show as tend in they to show and So for we'll assets opportunistic up. Brian for. want that RMT I and at same a in from know before. a even suspect board. may divest show nature, we're going very company on be I of those if things snacking we if that's said assets. looking about It's process, and grumpy our don't They that up more out early where hunt actively to when as on those start is we're food growth, assets less them, going those to the they're can to spinout be show up, when listened boat fish right? go based divest I then much And thing, they talked talking you you larger, to larger criteria opportunistic, they interested, in They nutritious we're looking conversations the this not something at right? those think They'll things. to be the up consider and more where your to Dave

Jason English

Understood, Thank really helpful, guys. you.

Operator

you. Thank

Our proceed with next the Please follow-up your question Holland with line question. Consumer Edge. is from of another Brian

Brian Holland

thank Yeah, you.

other I Or be everyone? the about from give stale question less from? maybe share. a given some forum of have generally a taking is share your of don't somebody you've on some being recently us you these could months in just some behind your brands if you're sell competitive little type us is Or aggressive may on expect with in promotion that stuffs insight past you to you but give to space et a the curious that's plan competitor be I who spending. so? XX to more taking mean a losing how rational price, Obviously, have color Just know that competitive of bit just you sort fragmented comment is been more of share, broad-based, but I on landscape. commonality talked the basically you're on within share taking if about kind been or speaking, specifically is is, been the active you're the certainly public can is maybe Just then larger it cetera? have there that able brands it -- but if

Joseph Scalzo

we've Yes, first category the accelerated accelerated. make I has is observation as

that the nutritious broad broad set seeing good is snacking really category So in growth. competitive

concerning category the to. a So category and think pretty by and share volume, coming that's floating we're basically But growth losing you're for you're what's much thing if you. the you're fact that the that a are a and the boats people of are all losing with happening it's is I driven competitor

categories. to is retailers penetration more increasing, space household, dedicating more are there's So the

and are it's I more people situation taking than we're win-win losing. think So is share it a

data. than they're is pretty Now that see now, there is of growing the rate obvious obvious not those think other few lagging you -- some if kind are pretty people faster there are. folks they're the others are And I right people a some and that but growing they're anywhere growing near

of a observation other this category. are lot The brands small make is in I there

XXX and over count volatile years. them think have slow I been those throughout we of the pretty

a now, winning I people losing, is If there think helpful. of right that's people there say others. not So whole than I better is lot

Brian Holland

color. Got it, Appreciate the enough. fair

Operator

Thank back you. no any turn the Mr. this at final Scalzo questions to time. for comments. there floor you are further I'll

Joseph Scalzo

participation day of today. you results look your the for forward week. and updating We you November. again rest to call in on We the hope good third our a quarter on Thanks have

Operator

teleconference. today's you. Thank This concludes

at You disconnect for you lines may time. Thank participation. this your your

The Simply Good Foods Company (SMPL) 11 Jul 182018 Q3 Earnings call transcript