betr jan 2016 investor presentation
Post on 07-Aug-2018
217 Views
Preview:
TRANSCRIPT
-
8/20/2019 BETR Jan 2016 Investor Presentation
1/39
0
Investor PresentationJanuary 2016
-
8/20/2019 BETR Jan 2016 Investor Presentation
2/39
1
This presentation, prepared by Amplify Snack Brands, Inc., is solely for informational purposes and is strictly confidential. Disclosure of thispresentation, its contents, extracts or abstracts to third parties is not authorized without express written permission from Amplify Snack Brands, Inc.
This presentation and the accompanying oral presentation contain forward-looking statements within the meaning of the federal securities laws, andsuch statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or future financial oroperating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,”“expects,” “plans,” “anticipates,” “could,” “would,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or
“continue” or the negative of these words or other similar terms or expressions that concern opportunities, prospects, future market size,expectations, strategy, plans or intentions. The expectations and beliefs of Amplify Snack Brands, Inc. regarding these matters may not materialize,and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those expressed inthe forward-looking statements, and you should not place undue reliance on our forward-looking statements. The forward-looking statements in thispresentation and the accompanying oral presentation are based on information available to Amplify Snack Brands, Inc. as of the date hereof, and Amplify Snack Brands, Inc. disclaims any obligation to update any forward-looking statements for any reason, whether as a result of new
information, future events or otherwise.
This presentation and accompanying oral presentation also contains estimates and other information concerning our industry that are based onindustry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independentlyverified the accuracy or completeness of the information.
All 2014 financial information is based on the 2014 pro forma financial data as described in, and subject to the limitations in, Amplify Snack BrandInc.’s public filings with the Securities and Exchange Commission.
Amounts and percentages appearing in this presentation have been rounded to the amounts shown for convenience of presentation. Accordingly, thetotal of each column of amounts may not be equal to the total of the relevant individual items. All references to our business and products prior to April2015 refer only to SkinnyPop.
LTM is the pro forma financial data from the 12-months ended September 30, 2015, calculated by adding the financial data for the nine-monthsended September, 30, 2015 to the pro forma financial data for year ended December 31, 2014 and subtracting the pro forma financial data for thenine-months ended September 30, 2014.
Insights on the snacking market from Euromonitor were developed independently as part of their annual multi-client Passport research program.
Disclaimer
-
8/20/2019 BETR Jan 2016 Investor Presentation
3/39
2
Today’s Presenters and Agenda
Tom Ennis
Chief Executive Officer
Brian Goldberg
Chief Financial Officer
Presenters Agenda
Introduction to Amplify Snack Brands1
Growth Strategy2
Financial Overview3
Q&A4
-
8/20/2019 BETR Jan 2016 Investor Presentation
4/39
3
Introduction to Amplify Snack Brands
1
-
8/20/2019 BETR Jan 2016 Investor Presentation
5/39
4
Amplify at the Center of Key F&B Industry Trends:Capitalizing on Major Growth Opportunity in “Better -For-You” Snacking
Focused exclusively on “Better -For- You” Snacks
Millennial SnackingTrends
Consumer Demandfor BFY Product Attributes AND
Great Taste
BFY SegmentDriving SnackCategory Growth
Increasing SnackingFrequency
Convenience
Multi-ChannelDistribution
Opportunity
-
8/20/2019 BETR Jan 2016 Investor Presentation
6/39
5
~3-4%
10%+
Traditional Brands BFY Brands
Targeting a Large and Growing Category withStrong Market Tailwinds
1. 2009 and 2014 market size based on IRI. 2014-2019 CAGR based on management estimates using historical growth rates.2. Management estimates for traditional brands are based on Total Salty Snack expected growth and for BFY brands based on 2014 $ sales growth.
3. The Nielsen Company, Goldman Sachs Global Investment Research. Indexes an age cohort’s $ share of total food purchases versus its $ share of wholesome snack purchases.
Large and Growing Salty Snack Category1
$ retail sales in billions
[]
[]
[]
[]
[]
[]
[]
$17
$21
2009A 2014A 2019E
CAGR:+4%
+$4
CAGR:+3-4%
~ +$4
~$25
BFY Brands Are Outpacing Growth of Traditional2
~3X
Estimated $ retail sales growth
Large category at over $20 billion in U.S. retail sales
Expected growth of +3-4% through 2019
Increased importance of snacking in consumer diets
Emergence of millennials as heavy snackers
Demand for great-tasting BFY products
Focus on simple, recognizable ingredients
Millennials over-index in their demand for BFY snacks3
-
8/20/2019 BETR Jan 2016 Investor Presentation
7/39
6
Established Infrastructure to Support BFYSnacking Platform
SalesSystems &
InfrastructureSupply Chain &
DistributionMarketing &Innovation
Established supplierrelationships
“Asset-light” outsourcedmanufacturing
Servicing customersthrough direct anddistributor models
Partnering with Tier 1
Co-Manufacturers
BFY snack focused salesteam
Strong relationships acrosschannels and brokers
Category managementanalytics and insights
Field marketing team
Investment in socialmedia, PR andinfluencers
Innovation team
Grassroots focus
Seasoned managementacross all functions
HQ in Austin, Texas
ERP implementationcomplete
-
8/20/2019 BETR Jan 2016 Investor Presentation
8/39
7
4.3
2.7
0.6
(2.4)
26.2%
16.4%
5.5%6.0%4.3%4.7%
36.9%
$-
$50
$100
$150
$200
$250
$300
SkinnyPop Smartfood Angie's Popcorn Indiana
Strong Performance of RTE Popcorn Category andour Cornerstone Brand SkinnyPop in 2015
SkinnyPop Fastest Growing Brand inRTE Category at +52% in $ Sales
Strongest $ Share Growth, +4.3pts vs. YA
+52%
+25%
-20%+25%
2% 6%12%
16%
$0.65
$0.79
$0.97$1.08
2012A 2013A 2014A 2015L52
$ retail sales in billions
RTE
Category
Growth
10% 21% 23% 12%
CAGR:18%
RTE Category Continues Double Digit Growth
Solid #2 $ Market Share Position in the RTE Category
RTE category $ market share (%)
All OtherBrands
$ market share (%) change vs. YA
$ retail sales & change vs. YA
Source: IRI U.S. Multi-Outlet + Convenience for latest 52wk ending Dec. 27, 2015
pts
pts
pts
pts
SkinnyPop ShareTotal RTE Popcorn
-
8/20/2019 BETR Jan 2016 Investor Presentation
9/39
8
$0.74
$0.44
$0.20
$0.11
$0.38
$0.30
$0.22
9/27/156/28/153/29/15
Strong Key Performance Indicators Throughout 2015for SkinnyPop
Source: IRI U.S. Multi-Outlet + Convenience for latest 52wk ending Dec. 27, 2015
…and industry-leading on-shelfproductivity
…while maintaining leadingpremium pricing
1. Calculation of retail sales dollars divided by TDP in MULO+C for the 52wk period ending 12-27-2015 as reported by IRI
RTE Popcorn Competitors
52w/12-27-15
$ Per TDP* In Millions
Avg. price per Oz
$0.68
$0.59
$0.47
$0.43
12/27/1513 weeksending
…driven by continued
distribution gains across multiplechannels…
154
175
193
217
103% 107%
89% 89%
-100%-90%-80%-70%
-60%-50%-40%-30%-20%-10%0%10%20%30%40%50%60%
70%80%90%100%110%120%
$100
$120
$140
$160
$180
$200
$220
$240
3/29/2015 9/27/2015 12/27/156/28/15 9/27/153/29/1513 weeksending
TDP & TDP % change vs. YA $ retail sales per TDP in millions1
-
8/20/2019 BETR Jan 2016 Investor Presentation
10/39
9
1.3%
SkinnyPop Continued to Achieve Strong Growth Ratesin 2015 Across All Measured Channels…
1. Source: IRI U.S. Multi-Outlet + Convenience for latest 52wk ending Dec. 27, 2015
2. Costco is not included in the data set
$86
$55
$18$15
$3
Food Club Drug Mass Convenience
Retail Sales $ IRI Latest 52wk Dec. 27, 20151
2
+45% +28% +55% +856% +105%% Change vs. YA
Total $ Retail Sales: $177M, +52% vs YA
Total $ Retail Sales Market Share: 16.4%
$ in millions
18.5% 58.1% 20.7% 8.1%$ Retail SalesMarket Share
-
8/20/2019 BETR Jan 2016 Investor Presentation
11/39
10
$0.9
$4.2
$6.0
$0
$1
$2
$3
$4
$5
$6
$7
2013A 2014A 2015A
$13.9
$35.2
$44.4
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2013A 2014A 2015A
$3.3
$10.9
$15.8
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2013A 2014A 2015A
$3.0
$13.1
$18.3
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18$20
2013A 2014A 2015A
…With Proven Ability to Sustain High Growth Rates
Over Multiple Periods within Existing Customers
Customer A - Grocery Customer B - Club
Customer C - Drug Customer D - Grocery
Source: IRI U.S. Multi-Outlet + Convenience for latest 52wk ending Dec. 27, 2015
$ retail sales in millions
$ retail sales in millions
$ retail sales in millions
$ retail sales in millions
-
8/20/2019 BETR Jan 2016 Investor Presentation
12/39
11
Strong Brand Appeal to Consumers…
Note: $ sales per million ACV is a measure of velocity defined as the sales of a product for every $1 million of All Commodity Volume to which it is exposed at retail.1. IRI Panel Total U.S. – All Outlets latest 52 weeks ending Dec 27, 2015.
2. Research Now Quantitative Survey (2014 N=850, 2015 N=1,615)
41%
26%
6%
-29%
17
17
0
-7
pts
pts
Growing HouseholdAwareness2Highest Loyalty in RTE Popcorn1
Increasing HouseholdPenetration1
62%
59%
47%
41%
Percent point change in household awareness% buyers repeat purchasing % change in household penetration
pts
pts
-
8/20/2019 BETR Jan 2016 Investor Presentation
13/39
12
…And to Retailers
1. IRI U.S. Multi-Outlet + Convenience, latest 52 weeks ending Dec 27, 2015.
2. IRI Panel Total U.S. – All Outlets, latest 52 weeks ending Dec 27, 2015
GreatestFrequency of Purchase2Premium Price1
Highest Totalin Basket Spend2
Average number of trips per buyer per year Average price per ounce Average in basket dollars per trip
$0.68
$0.59
$0.47$0.43
4.6
3.8
2.6
2.2
$104
$86 $84$80
-
8/20/2019 BETR Jan 2016 Investor Presentation
14/39
13
Today…. A Top 10 Salty Snack Dollar Manufacturer
$1.0 B
$760.8 MM
$721.9 MM
$503.0 MM
$355.6 MM
$253.3 MM
$196.2 MM
$189.5 MM
$175.3 MM
$281.8MM
$58.9 MM
$37.8 MM
$27.4 MM
$24.0 MM
$22.5 MM
$16.7 MM
$15.6 MM
$13.1 MM
$11.0 MM
$47.5 MM
$44.6 MM
$39.9 MM
$26.0 MM
$21.4 MM
$20.4 MM
$19.8 MM
$16.3 MM
$15.4 MM
$14.9 MM
Dollar Chg - Amplify ranks 2nd Item Productivity - Amplify ranks 2nd
Amplify Snack Brands is driving category growth with highly productive items
Dollar Sales - Amplify ranks 10th
Source: IRI U.S. Multi-Outlet for latest 52wk ending Dec. 27, 2015
1. Item productivity calculated as Total Dollar Sales / Avg # of Items Selling
$10.2 B
1
-
8/20/2019 BETR Jan 2016 Investor Presentation
15/39
14
With Attractive Financial Profile with Best-in-ClassGrowth, Margins and Free Cash Flow Conversion
Source: Company filings. Selected High Growth Consumer Company Median consists of the median for Monster, Blue Buffalo, Keurig, Boston Beer, WhiteWave, Freshpet and Hain Celestial. Selected Snacking CompanyMedian consists of the median for B&G Foods, Boulder Brands, Pinnacle Foods, Flowers Foods, Snyder’s-Lance and Diamond FoodsNote: Amplify Snack Brands data is pro forma for 2014. All other financial data is for calendar year 2014. Adj. EBITDA is a non-GAAP financial metric. All companies may not calculate Adj. EBITDA in the
same manner and therefore the Adj. EBITDA presented may not be comparable between the companies listed here. Adj. EBITDA capex conversion refers to (Adj. EBITDA - Capex) / Adj. EBITDA.
2014AAdj. EBITDA Margin
2012A-2014ANet Sales CAGR
2014AAdj. EBITDA – Capex Conversion
187.0%
24.8%
10.1%
High-GrowthConsumer CompanyMedian
SelectedSnackingCompanyMedian
44.2%
20.1%
13.5%
High-GrowthConsumer CompanyMedian
SelectedSnackingCompanyMedian
99.2%
76.3%80.0%
High-GrowthConsumer CompanyMedian
SelectedSnackingCompanyMedian
-
8/20/2019 BETR Jan 2016 Investor Presentation
16/39
15
GrowthStrategy
2
-
8/20/2019 BETR Jan 2016 Investor Presentation
17/39
16
Our Growth Drivers
StrongCategoryGrowth
IncreaseDistribution
and Shareof Shelf
NewProduct
InnovationIncrease
HouseholdPenetration
International
Expansion
1 23
4
6
5
NewBrands:Build or
Buy
C C G
-
8/20/2019 BETR Jan 2016 Investor Presentation
18/39
17
59%
41%40%
39% 37%
35%33%
32%
24%
21%
17%16%
P o t a t o C h i p s
M i c r o w a v e P o p c o r n
O t h e r R T E P o p c o r n
C r a c k e r s
C o o k i e s
T o r t i l l a C h i p s
C a n d y
P r e t z e l s
G r a n o l a B a r s / E n e r g y B a r s
N u t s
V e g e t a b l e s
F r u i t
2%
6%
12%16%
$0.65
$0.79
$0.97
$1.08
2012A 2013A 2014A 2015A
Capitalize on RTE Popcorn Category GrowthThrough Continued Share Gains
1. Source: Latest 52 weeks IRI as of Dec 27,2015
2. SkinnyPop proprietary usage and attitude study conducted September 30, 2015 with 615 consumers.
SkinnyPop Is GainingShare in Fast-Growing RTE Popcorn1…
…And Winning Share fromOther Large Snacking Categories2
Multi-Outlet + Convenience $ retail sales in billions % response to “What do you eat SkinnyPop instead of? Please select all that apply.”
RTE
Category
Growth
10% 21% 23% 12%
SkinnyPop ShareTotal RTE Popcorn
CAGR:18%
1
S f S f
-
8/20/2019 BETR Jan 2016 Investor Presentation
19/39
18
29 49
136
240292
578641
1,107
2015A
7.9
6.6
4.5
3.0
Increase Distribution and Share of Shelf
Source: U.S. Multi-Outlet + Convenience latest 52 weeks ending Dec 27,2015.
Significant Distribution Headroom Resulting in Ample Growth Runway
Average items per store selling All commodity weighted distribution Total distribution points
Tools for Growing Distribution
94%
72%65%
45%
Avg.Top 25Salty
SnackBrands
Additional Items on Shelf Effective Retail Merchandising Differentiated Packaging
CAGR:101%
2
2012A 2013A 2014A
C it li Ski P ’ L di B d
-
8/20/2019 BETR Jan 2016 Investor Presentation
20/39
19
Capitalize on SkinnyPop’s Leading Brand
Loyalty Driving Gains in Household Penetration
1. IRI Panel Total U.S. – All Outlets latest 52 weeks ending Dec 27,2015
2. IRI Panel Total U.S. – All Outlets latest 52 weeks ending Dec 27,2015.The top 25 salty snack brands are those brands with the highest dollar retail sales in the 52 week period according to IRI data.
Industry Leading Brand Loyalty1…
% of customers repeat purchasing % households buying
Tools for Growing Awareness
Digital, Social & Influencers Sampling & Field Marketing
…But Opportunity for IncreasedHousehold Penetration2
62%59%
47%
41%
58%
55% 54%51%
43%43% 42%
25.4%
11.7%
7.4%
5.2% 4.4%
Top 25Salty SnackBrand Avg.2
3
G th Th h M i f l d R l t I ti
-
8/20/2019 BETR Jan 2016 Investor Presentation
21/39
20
Growth Through Meaningful and Relevant Innovation:2016 SkinnyPop New Product Innovation
New Price/PackCombinations
New Form BrandExpansion in Close-
in CategoryAdjacencies
H1 2016 – New Flavors
H2 2016 – Continued Innovation
44
4
Si ifi t O t iti t E t Adj t
-
8/20/2019 BETR Jan 2016 Investor Presentation
22/39
21
Significant Opportunities to Enter AdjacentCategories via New Brands: Build or Buy
1. 2015 market sizes based on U.S. Multi-Outlet + Convenience.
2. Nielsen Global Snacking Report September 2014.
Attractive Snack Markets in the U.S.1 Key Acquisition Criteria
BFY snacking
Exceptional taste profile
Distinct BFY characteristics
Premium brand
Unique brand, product andpositioning
Some proof of concept at retail
Meaningful revenue and marginopportunities
Leverages existing infrastructure andexpertise
$7.2
$4.8
$2.0
$1.2 $1.1 $1.1
$4.2
PotatoChips
TortillaChips
CheeseSnacks
Pretzels CornSnacks
RTEPopcorn
Other (No Nuts)
2009
-2015
CAGR
3.5% 3.8% 3.6% 1.5% 2.9% 11.7% 4.9%
Global retail snack sales estimated at over $370 billion in 20142
2015 $ retail sales in billions
55
P i I O Fi t Pl tf A i iti
-
8/20/2019 BETR Jan 2016 Investor Presentation
23/39
22
Paqui Is Our First Platform Acquisition:Launching Nationally February 2016
Attractive Tortilla Chips Market
Large and growing market at $4.7 billion in the U.S. and$11.9 billion globally1
One of the most purchased snacks in the U.S.
No leading BFY brand of scale
1. Euromonitor 2015 Edition.
Paqui’s Fit with Amplify
NO MSG
Fast and Successful IntegrationFully integrated into financial and business processes
Improved profitability
Improved ingredient deck
New price/pack combinations
New signature flavor ‘Nacho Cheese Especial’
Tier I Co-Manufacturing with large national network
Significant customer acceptance
Ready for Q1 2016 national launch
Strong marketing program to gain awareness and trial
Alignment with Amplify’s BFY mission
Small but unique and emerging brand
Sold regionally in Whole Foods and nationally in Kroger
5
21 N SKU L hi N ti ll F b 2016
-
8/20/2019 BETR Jan 2016 Investor Presentation
24/39
23
6 Flavors!
5.5oz
21 New SKUs Launching Nationally February 2016
20oz
2oz
1oz
22oz
Canadian 155g
5
I t ti l E i
-
8/20/2019 BETR Jan 2016 Investor Presentation
25/39
24
International Expansion6
Popcorn retail sales at ~$4.6 billion globally in 2014 with an expected CAGR of 4.4% through 20191
Size of Popcorn Category in Markets Outside the U.S.1
$ retail sales in millions
Expansion Approach
$476$465
$419
$343
$110 $104$80
Canada& Mexico
WesternEurope
South America
AsiaPacific
Middle East& Africa
EasternEurope
Australasia
Increase distribution in Canada
Prioritize sizeable high-growth markets
Distribution with global retailers
International distribution partners
Asset-light outsourced manufacturingmodel
Opportunity to become aglobal BFY leader
1. Euromonitor 2015 Edition.
-
8/20/2019 BETR Jan 2016 Investor Presentation
26/39
25
FinancialOverview
3
Track Record of Strong Growth and Compelling
-
8/20/2019 BETR Jan 2016 Investor Presentation
27/39
26
Track Record of Strong Growth and CompellingFinancial Profile
1. Adjusted for depreciation and inventory acquisition fair value adjustments.2. Includes sales, marketing, general and administrative expenses and is adjusted to exclude founder contingent compensation, amortization of intangible assets, recapitalization expenses, executive recruitment costs,
sponsor acquisition-related expenses and equity-based compensation.
Net Sales Adj. Gross Profit1
Adj. SG&A2 Adj. EBITDA
$7 $25
$59$70
2012A 2013A 2014PF 2015 Q3LTM
$9$33
$75
$96
2012A 2013A 2014PF 2015 Q3LTM
$16$56
$132$171
2012A 2013A 2014PF 2015 Q3LTM
YoYGrowth
247.8% 137.6% 42.9% GrossMargin
56.1% 58.6% 56.5% 56.0%
$2 $8
$16
$26
2012A 2013A 2014PF 2015 Q3LTM
SG&A % of
Net Sales 2 13.6% 14.1% 12.3% 15.3%
Adj. EBITDA
Margin 42.5% 44.5% 44.2% 40.7%
$ in millions
CAGR:147%
$ in millions
$ in millions
$ in millions
CAGR:133%
CAGR:136%
CAGR:136%
2012A 2013A 2014PF 2015 Q3LTM
Strong Year to Date 2015 Financial Performance
-
8/20/2019 BETR Jan 2016 Investor Presentation
28/39
27
$99
$138
First 9 Mo. 2014 First 9 Mo. 2015
Strong Year-to-Date 2015 Financial PerformanceFirst 9 Months Results
Net Sales Adj. EBITDA
$ in millions $ in millions
Gross
Margin 56.0% 55.8%
Gross Profit
$ in millions
Adj.
EBITDA
Margins
45.5% 40.8%
$45
$56
First 9 Mo. 2014 First 9 Mo. 2015
$56
$77
First 9 Mo. 2014 First 9 Mo. 2015
Continued Strong Momentum in Q4 2015 Scanner Data
-
8/20/2019 BETR Jan 2016 Investor Presentation
29/39
28
2.7 2.8
0.9
(1.5)
pts
pts
pts
40%35%
27%
Continued Strong Momentum in Q4 2015 Scanner DataLatest IRI 12-week Period Ending December 27, 2015
SP Grew +40% in $ Sales Latest IRI12-Week PeriodContinued Strong Dollar Sales and Unit Sales
$40.1 million dollar sales -> +39.8% YoY growth
10.3 million units sales -> +37.5% YoY growth
13.1% dollar share -> +267 bps YoY growth
$0.70 average price/volume (oz) -> +6 bps YoY growth
Continued Distribution Gains
Continued Strong Velocity Performance
$39.2 Dollars per $MM ACV -> +8.2% YoY growth
72.2 ACV -> +29.6 YoY growth
215.9 TDP -> +90.0% YoY growth
2.8 items selling
1. Source: IRI U.S. Multi-Outlet + Convenience for 12wks ending Dec 27, 2015
1
1
1
SP $ Share Growth Up +2.7pts vs YA
$ retail sales % change vs. YA
$ market share (%) change vs. YA
pts
(12%)
Strong Cash Flow and Liquidity
-
8/20/2019 BETR Jan 2016 Investor Presentation
30/39
29
Strong Cash Flow and Liquidity
Adjusted EBITDA – Capex Debt as of September 30, 2015
1. Does not include founder contingent compensation of $25mm for SkinnyPop due first half of 2016.2. 2015 Q3 LTM Adj. EBITDA at $69.5mm.
3. 2015 Q3 LTM unfunded Capex only.
$7
$24
$58
$69
2012A 2013A 2014PF 2015 Q3LTM
$ in millions
CAGR:132%
Amount
Leverage(x 2015 Q3LTM Adj.EBITDA)2
Cash $6.9
Revolver ($25mm capacity) 1.5
Paqui Seller Notes Payable 3.7
Term Loan 199.9
Total Net Debt1 $198.2 2.8x
$ in millions
Capex $0.0 $0.5 $0.5 $0.7
3
3
Comparable Company Growth and Operating
-
8/20/2019 BETR Jan 2016 Investor Presentation
31/39
30
89.6% 80.2% 55.9% 40.7% 99.0%
24.9% 29.5% 36.1% 23.5% 91.2%
22.2% 22.2% 35.0% 15.2% 84.8%
17.9% 7.8% 34.3% 15.0% 76.2%
10.4% 6.8% 30.8% 13.8% 75.2%
6.9% 5.6% 29.9% 13.1% 71.7%
6.1% 3.6% 27.2% 12.6% 66.3%
5.7% (3.2%) 23.5% 12.1% 42.0%
0.1% (9.3%) 14.2% 5.9% 41.0%
Historical Growth Metrics
CY'13A – LTM Q3
2015 RevenueCAGR
CY'13A – LTM Q32015 EBITDA
CAGR
Comparable Company Growth and OperatingPerformance Metrics
1
LTM Operating Metrics1
Free Cash Flow
ConversionEBITDA MarginGross Margin
Sources: Company filings, Wall Street research and S&P Capital IQ as of January 8, 2016.Note: Free cash flow defined as EBITDA less Capex. Free Cash Flow Conversion defined as Free Cash Flow over EBITDA.
1. LTM is the pro forma financial data from the 12-months ended September 30, 2015
Guidance
-
8/20/2019 BETR Jan 2016 Investor Presentation
32/39
31
Guidance
FY 2015 Guidance*
Net Sales $180.0 - $182.0 million
36.0% - 37.5% increase
Adj. EBITDA $71.7 - $72.5 million
22.5% - 23.8% increase
* As of November 5, 2015; all comparisons made to the prior year.
Drivers
Strong momentum of SkinnyPop brand
Continued strong gross margin performance
Slight increase in Adjusted SG&A from increasedconsumer marketing and public company costs
Summary: Amplify is Well Positioned to Capitalize on
-
8/20/2019 BETR Jan 2016 Investor Presentation
33/39
32
PEANUT &
TREE NUT
FREE
CHOLESTEROL
& TRANS FAT
FREENO
ARTIFICIAL
INGREDIENTS
DAIRYAND
GLUTEN
FREE
KOSHER
Summary: Amplify is Well-Positioned to Capitalize onthe Opportunity to Be a Leader in BFY Snacks
BFY snacking platform
─ Experienced management
─ Established infrastructure
SkinnyPop: Our cornerstone brand
─ Embodies BFY mission
─ Proven track record with significantgrowth headroom
Paqui is our first acquisition
─ Strong fit with Amplify
─ Large category with no BFY leader
Asset-light business model
─ Minimal capex
─ Best-in-class cash flow conversion
$16
$56
$132
$171
2012A 2013A 2014PF 2015 Q3LTM
CAGR:136%
Net sales $ in millions
$7
$25
$59$70
2012A 2013A 2014PF 2015 Q3LTM
Adj. EBITDA $ in millions
CAGR:133%
1. Not all the claims are applicable to both SkinnyPop and Paqui.
Rapidly GrowingBFY Snack Food CompanyUnique Snacking Platform Premium BFY Brands1
Industry LeadingMargins Are Fueling Growth
NONGMO
NOPRESERVATIVES
Adj.
EBITDA
Margin
42.5% 44.5% 44.2% 40.7%
-
8/20/2019 BETR Jan 2016 Investor Presentation
34/39
33
Q&A4
-
8/20/2019 BETR Jan 2016 Investor Presentation
35/39
34
Appendix
Reconciliation of Net Income to Adjusted EBITDA
-
8/20/2019 BETR Jan 2016 Investor Presentation
36/39
35
Reconciliation of Net Income to Adjusted EBITDA
1. Reflects the elimination of the $0.4 million increase in cost of goods sold related to the Sponsor Acquisition.2. Represents compensation expense assoc iated with the Founder Contingent Compensation of $8.4 million recorded in the period from July 17, 2014 to December 31, 2014, and $18.4 million reflected as acomponent of general & administrative expenses in the Pro Forma Year Ended December 31, 2014 (Unaudited).3. Represents (i) $0.5 of predecessor transaction costs, (ii) $0.8 of transaction bonuses and (iii) $2.2 of sponsor transaction costs.4. Represents the expenses incurred in connection with the December 2014 and May 2015 Special Dividends.5. Represents the recognized expense associated with sign-on and retention bonuses for certain executive hires and certain recruiting fees.6. Includes performance bonuses and related payroll taxes paid to employees upon the completion of the IPO, a financial advisory fee paid to an advisor in connection with the IPO, and legal, accounting, consulting,
printing, filing and listing fees paid in connection with the IPO process.7. Represents transaction costs associated with legal and accounting services.
8. Represents severance expenses related to the acquisition of Paqui. We are permitted to add back expenses of this type in determining Adjusted EBITDA under the credit agreement governing our term loan
$ in millions 2013 2014 Pro Forma Q3 2015 LTM
Net Income $ 24.8 $ 13.6 $ 8.1
Non-GAAP Adjustments:
Interest Expense - 12.9 11.7
Income Tax Expense - 7.3 12.8
Depreciation 0.0 0.2 0.3
Amortization of Intangible Assets - 4.2 4.2
Inventory Fair Value Adjustment1 - 0.4 0.0
Equity-Based Compensation Expenses - 0.2 2.7
Founder Contingent Compensation2 - 18.4 18.4
Sponsor Acquisition-Related Expenses3 - 0.5 0.0
Recapitalization Expenses4 - 0.2 0.3
Executive Recruitment5 - 0.6 1.3
IPO Related Expenses6 - - 9.4
Other Professional Services7 - - 0.3
Severance Expenses8 - - 0.1
Adjusted EBITDA $ 24.8 $ 58.5 $ 69.5
Reconciliation of Gross Profit to Adjusted Gross Profit
-
8/20/2019 BETR Jan 2016 Investor Presentation
37/39
36
Reconciliation of Gross Profit to Adjusted Gross Profitand SG&A to Adjusted SG&A$ in millions
1. Reflects the elimination of the $0.4 million increase in cost of goods sold related to the Sponsor Acquisition.2. Represents compensation expense associated with the Founder Contingent Compensation of $8.4 million recorded in the period from July 17, 2014 to December 31, 2014, and $18.4 million reflected as acomponent of general & administrative expenses in the Pro Forma Year Ended December 31, 2014 (Unaudited).3. Represents (i) $0.5 of predecessor transaction costs, (ii) $0.8 of transaction bonuses and (iii) $2.2 of sponsor transaction costs.4. Represents the expenses incurred in connection with the December 2014 and May 2015 Special Dividends.5. Represents the recognized expense associated with sign-on and retention bonuses for certain executive hires and certain recruiting fees.6. Includes performance bonuses and related payroll taxes paid to employees upon the completion of the IPO, a financial advisory fee paid to an advisor in connection with the IPO, and legal, accounting,
consulting, printing, filing and listing fees paid in connection with the IPO process.7. Represents transaction costs associated with legal and accounting services.
8. Represents severance expenses related to the acquisition of Paqui. We are permitted to add back expenses of this type in determining Adjusted EBITDA under the credit agreement governing our term loan.
2013 2014 Pro Forma Q3 2015 LTM
Gross Profit $ 32.7 $ 74.2 $ 95.3
Non-GAAP Adjustments:Depreciation (COGs) 0.0 0.2 0.3
Inventory Fair Value Adjustment1 - 0.4 0.0
Adjusted Gross Profit $ 32.7 $ 74.8 $ 95.6
2013 2014 Pro Forma Q3 2015 LTM
SG&A $ 7.9 $ 40.4 $ 62.7
Non-GAAP Adjustments:
Depreciation (SG&A) - (0.0) (0.0)
Amortization of Intangible Assets - (4.2) (4.2)
Equity-Based Compensation Expenses - (0.2) (2.7)
Founder Contingent Compensation2 - (18.4) (18.4)
Sponsor Acquisition-Related Expenses3 - (0.5) 0.0
Recapitalization Expenses4 - (0.2) (0.3)
Executive Recruitment5 - (0.6) (1.3)
IPO Related Expenses6 - - (9.4)
Other Professional Services7 - - (0.3)
Severance Expenses8 - - (0.1)
Adjusted SG&A $ 7.9 16.2 $ 26.1
Reconciliation of Cash from Operating Activities to
-
8/20/2019 BETR Jan 2016 Investor Presentation
38/39
37
Reconciliation of Cash from Operating Activities to Adjusted EBITDA
1. Represents a non-cash component of income tax expense.2. Represents a non-cash component of interest expense.3. Reflects the elimination of the $0.4 million increase in cost of goods sold related to the Sponsor Acquisition.4. Reflects the prepayment of Founder Contingent Compensation.5. Represents (i) $0.5 of predecessor transaction costs, (ii) $0.8 of transaction bonuses and (iii) $2.2 of sponsor transaction costs.6. Includes performance bonuses and related payroll taxes paid to employees upon the completion of the IPO, a financial advisory fee paid to an advisor in connection with the IPO, and legal, accounting, consulting, printing,
filing and listing fees paid in connection with the IPO process.7. Represents severance expenses related to the acquisition of Paqui. We are permitted to add back expenses of this type in determining Adjusted EBITDA under the credit agreement governing our term loan.8. Represents the expenses incurred in connection with the December 2014 and May 2015 Special Dividends.9. Represents the recognized expense associated with sign-on and retention bonuses for certain executive hires and certain recruiting fees.
10.Represents transaction costs associated with legal and accounting services.
$ in millions
2013
Predecessor
Period (January 1,
2014
to July 16, 2014)
Successor Period
(July 17, 2014 to
December 31,
2014)
YTD
September 30,
2015
Cash from Operating Activities $ 22.5 $ 26.3 $ 12.7 $ 30.9
Reconciling Items:
Interest Expense - - 4.3 9.3
Income Tax Expense - - 3.5 11.1
Deferred Income Taxes1 - - 3.1 (7.0)
Amortization of Deferred Financing Costs2 - - (0.3) (0.6)
Net Change in Operating Assets and Liabilities,
Net of Effects of Acquisition2.3 4.3 (1.6) 1.8
Inventory Fair Value Adjustment3 - - 0.4 0.0
Founder Contingent Compensation4 - - 1.5 0.0
Sponsor Acquisition-Related Expenses5 - 1.3 2.2 0.0
IPO Related Expenses6 - - - 9.4
Severance Expenses7 - - - 0.1
Recapitalization Expenses8 - - 0.2 0.1
Executive Recruitment
9 - - 0.6 0.7
Other Professional Services10 - - - 0.3
Adjusted EBITDA $ 24.8 $ 31.9 $ 26.6 $ 56.1
Experienced Team with Proven Track Record
-
8/20/2019 BETR Jan 2016 Investor Presentation
39/39
Chief ExecutiveOfficer
Chief FinancialOfficer
Executive VicePresident of Sales &
Marketing
Vice Presidentof Innovation
Senior Vice Presidentof Supply Chain
20 years ofexperience
18 years ofexperience
20 years ofexperience
23 years ofexperience
25 years ofexperience
Experienced Team with Proven Track Record
Note: Logos are representative of selected prior professional experience
Tom
Ennis
Brian
Goldberg
Jason
Shiver
Doug
Lyon
Steve
Galinski
top related