B&G Foods Inc. (NYSE:BGS) Q4 2015 Earnings Conference Call - Final Transcript

Feb 25, 2016 • 04:30 pm ET


B&G Foods Inc. (NYSE:BGS) Q4 2015 Earnings Conference Call - Final Transcript


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Good day and welcome to the B&G Foods Fourth Quarter 2015 Financial Results Conference Call. Today's conference is being recorded. You can access detailed financial information on the quarter and the full year in the company's earnings release issued today, which is available at bgfoods.com.

Before the company begins this formal remarks I need to remind everyone that part of the discussion today includes forward looking statements. These statements are not guarantees of future performance and therefore, undue reliance should not be placed upon them. Refer all of you to the company's most recent annual report on form 10-K, and subsequent SEC filings For a more detailed discussion of the risks that could impact the company's future operating results and financial condition.

The company undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The company will also be making references on today's call to the non GAAP financial measures, adjusted EBITDA adjusted net income adjusted diluted earnings per share and comparable based business net sales. Reconciliations of these financial measures to the most directly comparable gap financial measures are provided in today's earnings release.

Tom Crimmins, the company's CFO will start the call by discussing the company's financials or results for the quarter. Next, Bob Cantwell, the company's CEO will discuss various factors that affect the company's results. Selected business highlights an updates on the Green Giant acquisition and thoughts concerning 2016.

I would now like to turn the call over to Mr. Tom Crimmins, CFO. Tom?

Thomas P. Crimmins

Thank you, operator. Good afternoon, everyone, and thank you for joining us today. Net sales for the fourth quarter of 2015 increased 43.8% to $342.3 million, compared to $238 million in the fourth quarter of 2014. Net sales of Green Giant, which includes both Le Sueur brand, acquired on November 2, 2015, and Mama Mary's, acquired on July 10, 2015, contributed $106.2 million and $9.9 million respectively, to our net sales for the quarter.

The fourth quarter of 2015 contained 13 weeks and the fourth quarter of 2014 contained 14 weeks, which negatively impacted net sales for the fourth quarter of 2015 on a comparative basis, by approximately $15 million. Customer refunds related to the Ortega and Las Palmas recall negatively impacted the fourth quarter of 2014 by approximately $4.1 million. Comparable base business net sales decreased 0.3%. The decrease was attributable to a 0.7% decrease in unit volume, offset by a 0.4% increase in net pricing, due to increases in list prices and reduced promotional activity. Also, our Canadian net sales continued to be unfavorably impacted by the weaker Canadian dollar, which negatively impacted net sales in the fourth quarter of 2015 by $0.8 million.

Gross profit increased 55.3% to $88.6 million in the fourth quarter, as compared to $57 million for the fourth quarter of 2014. Gross profit, expressed as a percentage of net sales, increased 190 basis points to 25.9% for the fourth quarter of 2015, from