Good day, ladies and gentlemen, and welcome to the John B. Sanfilippo & Son, fourth quarter and fiscal 2008 year end earnings conference call. My name is Fab, and I will be your coordinator for today. At this time all participants are in a listen-only mode. (Operator instructions) I would now like to turn the presentation over to your host for today call, Mr. Michael Valentine, CFO. Please proceed.

Thank you, Fab. First, on behalf of everyone here in JBSS we’d like to thank all of the participants for joining our quarterly conference call for the fourth quarter and fiscal year ended 2008. 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 involve certain risks and uncertainties. The factors that could negatively impact results are explained in the various filings that we have made the SEC, and we encourage everyone to refer to these filings to learn more about these risks and uncertainties. Starting with the income statement, the current quarter net sales increased by 1.9% to $2.3 million to $125.3 million in comparison to the net sales in the fourth quarter of fiscal 2007, total pounds shipped to customers decreased by 16.2%. There was decline in the shipment of pounds of almonds, macadamias, mixed nuts, peanuts and walnuts in the quarterly comparison. Pound shipped declined in all distribution channels except the food service channel. The increase in net sales was driven mainly by higher selling prices for almonds, cashews, fruit and nut mixes, mixed nuts, peanuts and walnuts in response to increasing acquisition cost for the commodities better in those products. Also a shift in sales mix from the industrial channel to the consumer and food service channels contributed to the increase in the overall weighted average selling price in the quarterly comparison. Fiscal year net sales increased slightly to $541.8 million from fiscal 2007 net sales of $540.9 million. Total pound shipped to customers decreased by 9.7% as was the case in the quarterly comparison there was a decline in the shipped of pounds of almonds, macadamias, mixed nuts, peanuts and walnuts in the yearly comparison. Pound shipped declined at all…

Thank you, Mike. Good morning everyone and thank you for you’re your interest in John B. Sanfilippo & Son. We wrap up fiscal 2008 with a combination of several important initiatives executed and completed over the past year. The positive benefits of many of these initiatives were realized in our fourth quarter as we saw considerable improvement in profitability over the same period in the prior year and we expect this improvement to continue in fiscal 2009. To reiterate some key points that Mike had mentioned, the average net sales price per pound increased in all distribution channels as price increases were implemented in response to rising cost per commodities. The company was successful in its focus in installing more value added product lines and as a result we experienced a strategic shift in sales from the industrial and export channels to the consumer and food service channels. This also contributed to the increase in weighted average selling price. Fiscal 2008 gross profit margins as a percent of net sales increased from 7.6% in fiscal 2007 to 12.2% in fiscal 2008. It’s important to note that gross margins improved for all distribution channels when compared to the gross margins for those channels in fiscal 2007. This improvement came in large part from the completion of numerous initiatives that we implemented since the latter part of fiscal 2007. We achieved a great deal this past year and made difficult, but necessary decisions to drive value in our organization. The management team and our employees are focused on several key areas to accomplish this turnaround. First, operations; we completed our facility consolidation project and I’m happy to announce that final production lines that moved are now up and running in Elgin. The last piece of equipment, we relocated was our extreme neckline…

Okay, thanks Jeff. At this time we will open the call to questions. Fab, can you please queue up the first question.

Thank you. (Operator instructions) and your first question will come from the line of Ron Strauss from Pekin Singer; please proceed. Ron Strauss – Pekin Singer: Hello Mike and Jeff. It turns out that the light at the end of the tunnel is not an on-coming train.

Yes, I know that. Ron Strauss – Pekin Singer: I take my hat off to you guys for having gotten through this very difficult period in the last couple of years.

Thanks Ron.

Thank you. Ron Strauss – Pekin Singer: Did I hear you say Mike that you had almost $21 million of non-recurring charges to the P&L last year?

Yes, that’s the three items that we sited Ron, restructuring the redundant costs, moving that extinguishing costs, add up to about that number. Ron Strauss – Pekin Singer: So that’s about almost $2 a share by my calculations. Assuming here on ’09 recurring items here in fiscal ’09, will you be paying taxes at all in ’09 or is there a very substantial net operating loss carry forward that protects the cash flow?

Ron, we’re actually going to release the valuation allowance and the benefit that’s associated with that as we make profits. Probably shortly after the second quarter we’ll decide whether we’ll release the whole thing or not, but at this point in time I can’t tell you whether we’re going to end up with zero tax, left over benefit or expense. Ron Strauss – Pekin Singer: So, you don’t know the magnitude of your net operating losses, is that what you're saying?

No, we know the magnitude of the operating loss, but we are not going to predict profitability for ’09 on this call. Ron Strauss – Pekin Singer: I see. How big is that net operating loss to carry forward?

Approximately $4 million is the potential benefit. Ron Strauss – Pekin Singer: And what do you expect your capital expenditures will be in ’09?

As you can imagine, we’re planning on reducing capital expenditures pretty dramatically and going to what we characterize more as maintenance CapEx, which kind of ranges between $6 million to $8 million. Ron Strauss – Pekin Singer: And would you expect the depreciation to be somewhere around the magnitude of ’08?

It should be very close to the ’08 number. Ron Strauss – Pekin Singer: Something around $15 million or $16 million?

Right Ron Strauss – Pekin Singer: Okay, say your cash flow is going to be fairly substantial in ’09; how do you expect to allocate it, are you going to be paying down debt, buying back stock?

No, it will automatically go to pay down the revolver. Ron Strauss – Pekin Singer: And what would you say your capacity utilization is in you Elgin plant today?

Well, I mean due to the seasonality of our business if look that at it over the course of the year I would say we’re about 60%. Ron Strauss – Pekin Singer: And based on your plans for the next year, what would you expect that capacity utilization figure to look like, let’s say 12 months from now, give us some sort of ballpark number?

Ron, I think we’re probably going to look at a similar number, only because going forward we’re going to be faced with high cashew prices on the shelf, high peanut prices on the shelf and their impact on consumption is really going to determine what our utilization looks like at the end of the year. Ron Strauss – Pekin Singer: Could you talk about the crop outlook for your major ingredients?

Sure I will start with the ones that I do and then I will turn the rest over to Jeff or Jasper. Peanuts look very good; we’re probably looking at something that may possibly be a record crop, but certainly close to it, the weather conditions have been perfect throughout the growing season especially in the Southeast. The rain that they’ve received recently I am told has not damaged the crop at all and will probably actually help it to mature further. Jeff, do you want to take some of the other tree nuts?

Sure, let me talk about pecans first. While this year will be the short crop in the traditional tree nut bearing cycle for pecans, it looks slightly more promising at this stage of the season and the typical short crops we’ve experienced in the past decade. There is a lot of carryover inventory, which will help offset the short crop, but what we’re seeing over this past year has a continued strong in-shell exports to China for pecans, which drove prices up this past year and if those continue or increase we could anticipate higher prices and otherwise might be expected coming into this short crop for pecans. Our walnuts; virtually everyone is expecting a record walnut crop that’s having nuts that’s combined with favorable weather conditions. It should result in the large crop with good quality. The only growing region looks like reporting disappointing result is the northern most area of California that was severely affected by late spring freeze, but in spite of record low carry in inventories, last year’s high prices has impacted consumption enough to what we feel keep things in relative balance so that supply pipeline can be refilled. Ron Strauss – Pekin Singer: Okay. Well, thank you very much gentlemen.

Okay, thanks Ron.

Gregg Hillman – First Wilshire: Yes, good morning. Yes, I had two questions; one was I guess could you give me some concept of what do you think the payback period is for the expense that you’ve incurred in the move?

Gregg Hillman – First Wilshire: Okay and then another question maybe for Jeff about the convenient stores, whether you could do like a private-label program for a convenient stores and do like a whole nut section for them and allow them to increase their margins for their snacks?

Yes, when we do have an initiative for convenience stores both for Fisher and we’re looking at a couple of private brands right now to develop convenient store programs that’s an opportunity. Gregg Hillman – First Wilshire: Could you increase your profitability over let’s say nuts that are carried by Frito or something like that?

The challenge is obviously Frito’s got such major distribution throughout the United States and is a very competitive player. I must say a typical retailer would produce or develop a product that doesn’t compete directly with Frito either on ounce weight or specific products that could be opportunities, but I would say going head-to-head with Frito on the shelf with the same item impact size would be a challenge. Gregg Hillman – First Wilshire: Okay and do have the capability to do like a nutritional bar or health bar something like (inaudible) or good health stuff in it?

We don’t actually have the capability of doing a bar format but we can do mixes that would include the same type of ingredients that you find in nutrition bars. Gregg Hillman – First Wilshire: Okay and then I guess you’ve addressed the pricing issue for all of the nuts earlier in the call. So I’ll get back in queue. Thank you.

Thank you.

Okay Greg.

Your next question will come from the line of Michael Curran from Wachovia Securities. Michael Curran – Wachovia Securities: Thanks gentlemen. Jeff, I’m in Savannah, Georgia and I can confirm, I checked with farmers in South Georgia, say the peanut crop is very healthy this year. That tropical storm that came through gave it great rain although we did knock down a few pecan trees. I have one basic question for you all. I assume steady revenues going forward in the mid 500 millions, but with the numerous manufacturing efficiencies you delineated etc, etc my question is does management have a gross margin goal and if so where are you shooting? I understand you finished this year at 12.2%.

Well, I’ll take that one Jeff. For those who are on the call, that haven’t been on our calls before the company does not give guidance. We do obviously have a gross margin goal and our goal is certainly to improve as we’ve talked about some of the initiatives we’re going to put in place, but we will not quantify that on this call. Michael Curran – Wachovia Securities: Okay. Thanks that was a tariff quarter. I didn’t think you could turn it around so quickly. Well done.

Okay, thank you.

Thank you Michael.

Your next question will comes form the line of Joe Christifano from Milwaukee. Joe Christifano – Milwaukee: Hi, good morning. Just a quick question on the old Panasonic building, any updates on being able to rent that?

Which building is that, the Panasonic building? Joe Christifano – Milwaukee: Yes.

Yes. Joe we currently have, as you can imagine there is not a whole of large tenants looking for space at this time. We’ve had fair interest with tenants that are looking between 10,000 to 15,000 square foot range but as of now we’ve not found any tenants to replace Panasonic. Joe Christifano – Milwaukee: Would you plan to just hold the building indefinitely until you find a tenant or at some point would you put the building up for sales?

No, we’ll continue to own it. Joe Christifano – Milwaukee: Okay, great that’s all I had. Thanks.

Thank you.

(Operator instructions) and you next question will come the line of David Leibowitz from Horizon Asset Management. David Leibowitz – Horizon Asset Management: Good morning.

Good morning. David Leibowitz – Horizon Asset Management: A few brief questions, if I may and I may not have taken it down correctly. What did you say the potential revenue from the McDonald's contract was?

The unit volume we anticipate is 145 million units of that small seven gram bag of granulated peanuts, but I would just add that it’s not new business for us, it’s just a co-branding opportunity, where before it was just a McDonald’s bag, now it’s a Fisher bag with McDonald’s co-branded. David Leibowitz – Horizon Asset Management: And is there any risk that you incur with this contract?

Risk as far as pricing or --? David Leibowitz – Horizon Asset Management: Inventory, pricing, returns.

No, this is something we worked with McDonald’s for over 10 years now on a product line for their salad toppings or their dessert toppings. So, we don’t anticipate any issues. It was a great opportunity for us to get some co-branding with the Fisher brand with McDonald’s. David Leibowitz – Horizon Asset Management: Second of all, what was the last time you instituted price increases?

The last time, well we’ve had commodity increases as Mike mentioned and I mentioned in the call, over the past year for commodities such as walnuts, peanuts and cashews. The most recent price increase we needed to implement were in cashews across all channels as a result of higher commodity costs. David Leibowitz – Horizon Asset Management: Are your price increases maintaining the normal profit margins you enjoy or have you seen that there’s a pushback in your pricing increases or not enough to include the historic profitability of the particular line or product.

It really depends on the nut type, David. Obviously, we are concerned with consumption dropping as a result of some of the dramatic price increases. I would say we will see some margin pressure as a result of what we have seen, especially for cashews price increases of cost increases, and that will bring everything on to consumers or customers. David Leibowitz – Horizon Asset Management: And as we look to the new fiscal year, which quarter would you consider the toughest one to match year-against-year quarter.

I will take that one, Jeff I would say that I would say that right now I would say probably none of the next four quarters would be difficult to match year-over-year simply because we have a pretty easy comparison to fiscal 2008. David Leibowitz – Horizon Asset Management: Okay and the last question, were you to get back onto historic trend line, do we show the profitability in the second half of this fiscal or does it actually have to wait another year.

To get back to normal profitability -- David Leibowitz – Horizon Asset Management: Correct.

That really is dependent on price increases on cashews, for the most part. Just to put that into perspective, cashew costs have risen by as much as 60% over the last 12 months as you can imagine, putting a 60% price increase on the shelves may not necessarily be in the best interest of a the category and really everybody in the industry so its going to be interesting how that dynamic plays out in that respect. David Leibowitz – Horizon Asset Management: Thank you very much.

Okay thank you

There are no further questions at this time. I would like to turn the call back over to Mr. Valentine for closing comments.

Again, as we state before we would like to thank everybody for their interest in JBSS, and this concludes the call for our fourth quarter and fiscal year 2008 operating results.

Thank you for your participation on today’s conference. This concludes the presentation. You may now disconnect. Have a great day.