Jeffrey Sanfilippo - Chief Executive Officer Jasper B Sanfilippo Jr. - Chief Operating Officer Mike Valentine - Group President Frank Pellegrino - Chief Financial Officer

Good day, and thank you for standing by. Welcome to the John B. Sanfilippo & Son, Incorporated Fourth Quarter and Fiscal 2022 Year-End Operating Results Conference Call. At this time all participants are in a listen-only mode. After the speakers presentation there will be question-and-answer session. [Operator Instructions]. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today Frank Pellegrino, Chief Financial Officer. Please go ahead.

Thank you. Good morning everyone and welcome to our 2022 fourth quarter and fiscal year earnings conference call. Thank you for joining us today. On the call with me today is Jeffrey Sanfilippo, our CEO; Jasper B Sanfilippo Jr., our COO; and Mike Valentine, our Group President. We may make some forward-looking statements today. These statements are based on current expectations and involve certain risks and uncertainties that are inherent in our business. The factors that could negatively impact results are explained in the various SEC filings 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. I will start the call by carving financial highlights for 2022 fourth quarter and fiscal year. Both the current fourth quarter and fiscal year containing an additional week compared to same periods of fiscal 2021. The current fourth quarter net sales increased 24.7% to $257.7 million compared to net sales of $206.7 million for the fourth quarter of fiscal 2021. The increase in net sales was due to a 12.5% increase in the weighted average selling price per pound, and a 10.9% increase in sales volume, which we define as pounds sold to customers. The increase in weighted average selling price per pound resulted from an increase in commodity acquisition costs for peanuts, all major tree nuts, dried fruits and other input costs due to inflationary conditions. Excluding the estimated impact of the actual weaken in the current fourth quarter, net sales increased approximately 16%, and sales volume increased approximately 3%. Sales volume increased in all three distribution channels in the current fourth quarter. Sales volume in the consumer distribution channel increased 7.5%. The volume increase in the consumer channel was primarily driven…

Thank you, Frank. Good morning everyone! I am pleased to report a very successful end to fiscal ‘22 as Frank just talked about. This is the fourth consecutive year JBSS has delivered record net income and record earnings per share, driven by strong sales volume growth in all our distribution channels and brands. These results validate the actions taken during the last 12 months to respond to the numerous challenges we face in an unprecedented year. In addition to our strong financial performance, we shipped over 314 million pounds to customers in fiscal ’22, which is another record for the company. This is a 20 million pound increase over last year's record of 294 million pounds in fiscal ‘21. And despite all the supply chain headwinds, the company faced with labor, raw materials, freight and shipping, we still succeeded in maintaining best in class quality and service levels for our customers and consumers. These significant results demonstrate the underlying strength and resilience of our organization. These achievements are also a testament to the fortitude of our business model, the commitment of our people and the mutual trust and depth of our customer and supplier relationships. I cannot be prouder of our management team and all of our 1,300 team members for their hard work and dedication over the past year. Mainly as a result of our financial performance in the first three quarters of fiscal ‘22 and a record fourth quarter, our Board of Directors raised our annual regular dividend by 7.1% to $0.75 per share and supplemented their annual dividend with the set special dividend of $1.50 per share. Both of which will be paid out to our stock holders of record as of August 12, 2022. Next week it'll be paid on August 31, 2022. These most recent…

Thank you, Jeffrey. At this time we will open the call for questions. Tonia, please queue up our first question.

Again, thank you all for your interest in JBSS. This concludes the call for our fourth quarter and fiscal year 2022 operating results.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.