Michael J. Valentine - Chief Financial Officer, Group President, Secretary and Director Jeffrey T. Sanfilippo - Chairman and Chief Executive Officer

A very good day to you, ladies and gentlemen. Welcome to the Quarter 3 2013 John B. Sanfilippo & Son, Inc. Earnings Conference Call. My name is Nancy, and I will be your operator for today. [Operator Instructions] I would now like to turn the call over to Mike Valentine, Chief Financial Officer. Please go ahead.

Thank you, Nancy. First, we'd like to thank everyone on the call for participating in our quarterly conference call for the third quarter of our fiscal 2013. Before we start, we'd like to advise participants that we may make some forward-looking statements today. These statements are based on our current expectations and involve certain risks and uncertainties that are inherent in our business. The factors that could negatively impact our results are explained in the various SEC filings that we have made, including Forms 10-K and 10-Q. We encourage investors to refer to these filings, including our third quarter 10-Q, which was filed last night, to learn more about these risks and uncertainties. Starting with the income statement. Net income in the quarterly comparison decreased by $1.1 million. When considering this decrease, investors should note that $800,000 of this decrease is attributable to an increase in income tax expense on the taxable gain that we recognized for the sale of our ARMA Energy snack brand to an investment in ARMA Energy Incorporated. We did not record a gain on this transaction for accounting purposes. The current quarter net sales increased by 6.5% to $163.8 million from $153.8 million for the third quarter of fiscal 2012. The increase in net sales was attributable to a 15.6% increase in sales volume, which is measured in pounds sold to customers. Sales volume increased by double digits in percentage terms in all distribution channels in the quarterly comparison. The consumer distribution channel provided approximately 50% of the overall sales volume increase. The volume increase in the consumer channel was driven by private brand snack volume up by 12%, due mainly to lower peanut and cashew prices, plus new distribution gains at an existing private label customer. Additionally, Fisher snack volume was up by 55%,…

Thank you, Mike. Good morning, everyone. The management team and all our dedicated employees continue to make strong progress in executing the company's core strategies of growing brands, expanding our international business and providing integrated nut solutions. We are pleased with our sales growth during the third quarter, particularly for our Fisher brand, and it is important to note that sales volume grew significantly in all of our distribution channels. Our sales and marketing teams have worked closely with key customers across our business channels to develop programs to drive volume. The 15.6% volume growth is a good indication that our direct customers and end-user consumers are reacting positively to the promotions and lower prices for many of the key products that we sell. The low prices for peanuts, cashews and pecans are anticipated to continue during our fourth quarter. A few highlights for the first 3 quarters of fiscal 2013 validate our successful efforts in executing our 3 core strategies. Number one, grow JBSS brands. Domestic volumes of our Fisher recipe nut, also known as and previously referred to as baking nut and snack nut products, increased significantly during the first 3 quarters of fiscal 2013, as Mike mentioned. This growth was achieved through a combination of new marketing and advertising programs, increased sales to existing customers and distribution to new recipe nut customers. Number two, expand globally. We continue to develop our Fisher brand business in China, with recent changes in our distributor network, and we are making progress in establishing a legal structure to support our business there for the long-term. I'm making a trip to China next week to meet with our new distributors to attend a major trade show in Shanghai and to meet with a marketing firm that the company recently engaged to assist…

Thank you, Jeff. At this time, we will open the call to questions from participants. Nancy, would you be kind enough to queue up the first question?

[Operator Instructions] Okay, Mike, we don't seem to have any questions at the moment. Ladies and gentlemen, I'd like to thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a good day.