Good day, ladies and gentlemen, and welcome to the John B. Sanfilippo & Son, Inc. Second Quarter Fiscal Operation Results Conference Call. My name is Dave; I'll be your operator for today. At this time, all participants are in listen-only mode. We will conduction a question-and-answer session toward the end of this conference. [Operator Instructions]. I would now like to turn the cover to Mr. Mike Valentine, Chief Financial Officer. Please proceed, sir.

Thank you, Dave. Good morning, everyone, and welcome to our 2015 second quarter earnings conference call. Thank you for joining us today. On the call with me today is Jeffrey Sanfilippo, our CEO; Jasper Sanfilippo, our COO; and calling in is Bobby Tankersley, our Senior Vice President of Commodity Procurement. Before we start, we want to remind everyone that we may make some forward-looking statements today. These statements are based on our current expectations and they involve certain risks and uncertainties. The factors that could negatively impact results are explained in the various SEC filings that we have made, including Forms 10-K and 10-Q. We encourage you to refer to these filings to learn more about these risks and uncertainties that are inherent in our business. Net sales for the second quarter of fiscal 2015 increased to $251.4 million, in comparison to net sales for last year's second quarter of $225.1 million. The increase in net sales was attributable primarily to a 5.1% increase in sales volume. Higher selling prices mainly from pecans and almonds resulted from higher acquisition cost also contributed to the increase in net sales. Sales volume increased in all distribution channels except the export distribution channel and sales volume increased for all major products types except walnuts and pecans. The increase in the consumer channel volume came from increased sales of private brand snack nuts at existing customers, increased sales of Fisher snack nuts. The primary drivers of the increase in Fisher snack nut volume were the distribution of in-shell peanuts we regained at a major Fisher snack nut customer and increased merchandizing activity. The sales volume increased in the commercial ingredients channel resulted from increased sales of almond and peanut products to existing customers. The increase in sales volume in the contract packaging channel was…

Thank you, Mike. Good morning, everyone. It was another strong quarter in top-line growth for the company. The 5.1% volume increase reported equate to 3.4 million additional pounds shipped in the quarter driving our sales to a record $251.4 million, $11.7 million increase over Q2 of fiscal 2014. We continue to see strong sales especially in our consumer distribution channel which increased by 9.2% in the quarterly comparison and was generated by significant growth with existing private brand snack nut customers and a 51.6% increase in sales volume for Fisher snack nuts. We also saw considerable growth in sales volume for Orchard Valley Harvest produce products with a 48.5% increase in pounds sold in the quarterly comparison mainly as a result of distribution gains for new variety pack items. While sales volume for Fisher recipe nuts was unchanged in the quarterly comparison Fisher recipe outperformed the total recipe category at retail as pound volume increased by 6% while the total recipe category declined by 8% according to IRI. The success of Fischer recipe in relation to the overall category performance as well as the success of Fischer’s snack and Orchard Valley Harvest was mainly attributable to a significant increase in trade spending, as Mike mentioned, coupled with new distribution gain and illustrates our continued success in building brands. And as Mike mentioned our gross profit margin as a percent of net sales decreased to 14.8% for the quarter compared to 16.4% for the second quarter of fiscal 2014. And the decline was mainly attributed to a reduction in selling prices due to a $2.2 million increase in trade spending. There are two key reasons for the increase in trade spend. First, we increased our level of promotional activity to drive brand awareness, increased brand velocity and merchandizing. We were successful…

Thank you, Jeff. We'll now open the call to questions. Dave, could you please queue up the first question?

Certainly, Mike. [Operator Instructions]. This comes from the line of Francesco Pellegrino at Sidoti. Go ahead please.

Good morning guys. Thanks for taking my question.

Good morning.

So first off, inventory. I know you went into where the inventory currently stands on a per pound basis; the costing is that it's going to be down a little bit year-over-year. Can you give us a little bit of insight into the inventory? Is there any type of tree nut that you're currently sitting on that you feel as you might not be well-positioned enough for the rest of the year like you were caught during the previous quarter? I know it's still early in the year, but how is inventory looking?

Well we're still in the process of supplying pecans. We typically don’t finish that until end of February. In respect to all the other nuts, we pretty much have our coverage done. Almonds, because of the high prices, we've decided not to cover a full 12 month period but we have the fiscal year covered in respect to almonds.

Okay. I guess the $2.2 million increase in trade spending on the branded product line, is this something that just one-off during the second quarter of could we see the strength continuing for the rest of the year and into fiscal 2016 or is it just in-line with as you guys greater distribution in gains throughout retail?

Yes, Francesco, this is Jeffrey. So a little bit heavier spending during the holiday period one because of promotional activity that takes place at that point. We really focused on gaining new distribution in our second quarter to drive volume growth in the back half of the year. So it is a little bit abnormal as far as the percentage of trade spend. We do not anticipate that level going forward.

Okay. And just my last question, any update on the walnut recall and what this is going to be incrementally to cost for the company for the third quarter?

This is Mike, Francesco. No, no update; we continue to view it as immaterial.

Okay perfect. Thanks again, I'll jump back in the queue.

Gentlemen, you have no further questions at this time. [Operator Instructions]. Okay, there are no further questions, so I would now like to turn the call back to Mr. Mike Valentine for closing remarks.

Okay, thanks, Dave. Again, we want to thank everyone for their interest in JBSS. This concludes the call for our second quarter operating results.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.