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TheStreet Open House

B&G Foods' CEO Presents At Barclays Back-to-School Conference (Transcript)

Stocks in this article: BGS

We prioritize our efforts by arranging our brands in three tiers and I'll talk about this a little bit later, but that gives us focus on higher margin businesses and businesses where we really see a return on investment in if you in terms of slotting and marketing and things like that with brands and efficiency from a working capital point of view.

When you look at what we buy and what we do with it, we're looking to generate a merging structure that is well above the average in the food industry and then to turn those margins into something more tangible in terms of free cash flow and this company emphasizes free cash flow as much as any metric financially and management is incentivized around free cash flow, so it’s a very, very important measure that we look at all the time.

Out of that free cash flow, we have I think demonstrated over the years that our intention is to return a meaningful of that free cash flow to our shareholders as dividends and between that and stock appreciation as Bob will show you generate a superior return for our shareholders. It’s formula has worked very, very well over a good number of years now and so we really don't see any reason to change what we do in a lot of ways. It is work, it has generated the returns and it's been very, very successful.

So when we look at well, what are we are going to do in the future, it’s a blend of the same as it has been in the past. We're of the size that we can continue to do these incremental accretive acquisitions, if we buy the right properties and just keep on doing the Culvers of the world, year-after-year for some time yet and generate nice business growth from acquisition and then turn those businesses around and generate organic growth as well, look for cost efficiencies and just keep working on improving the margins on our business and turn those margins into free cash flow. That's the essence of what we do and we are ready to continue to do that. We're well established in terms of our capital structure to continue to do those acquisitions and continue to build this business as we have in the past.

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