JJSF J and J Snack Foods Corporation

J & J Snack Foods Corp. (NASDAQ:JJSF) today announced record sales and earnings for its third quarter and nine months ended June 30, 2007. Sales for the third quarter increased 16% to $162.5 million from $140.1 million in last year's third quarter. Net earnings increased 16% to $12.5 million from $10.8 million last year. Earnings per diluted share were $.66 for the June quarter compared to $.57 last year. Operating income increased 12% to $18.8 million this year from $16.7 million in the year ago period. For the nine months ended June 30, 2007, sales increased 13% to $406.7 million from $360.7 million in last year's nine months. Net earnings increased 21% to $21.6 million in the nine months from $17.9 million last year. Earnings per diluted share were $1.14 for the nine months compared to $.95 last year. Operating income increased 19% to $32.1 million from $26.9 million in the year ago period. Operating expenses in last year�s quarter and nine months include an impairment charge of $1.2 million for the writedown of robotic packaging equipment. Excluding the writedown of this equipment in last year�s quarter, operating income increased $865,000, or 5%, for the quarter and $4.0 million, or 14%, for the nine months. Operating expenses were reduced by $896,000 of other general income in this year�s quarter compared to $71,000 in the year ago period. Excluding the writedown of the robotic packaging equipment in last year�s quarter and the increase in other general income this year, operating income was essentially unchanged for the quarter and up $3.2 million, or 11%, for the nine months. Gerald B. Shreiber, J & J�s President and Chief Executive Officer, commented; �Although we benefited from positive results from both of our recently acquired companies, Hom/Ade Foods and Daddy Ray�s, and a strong showing by our ICEE and SLUSH PUPPIE business, our quarter�s results were impacted by continuing escalating costs of commodities including flour and dairy products.� J & J Snack Foods Corp.�s principal products include SUPERPRETZEL, PRETZEL FILLERS and other soft pretzels, ICEE, SLUSH PUPPIE and ARCTIC BLAST frozen beverages, LUIGI�S, MAMA TISH�S, SHAPE UPS, MINUTE MAID* and BARQ�S** and CHILL*** frozen juice bars and ices, WHOLE FRUIT sorbet, FRUIT-A-FREEZE frozen fruit bars, MARY B�S biscuits and dumplings, DADDY RAY�S fig and fruit bars, TIO PEPE�S churros, THE FUNNEL CAKE FACTORY funnel cakes, and MRS. GOODCOOKIE, CAMDEN CREEK, COUNTRY HOME and READI-BAKE cookies. J & J has manufacturing facilities in Pennsauken, Bridgeport and Bellmawr, New Jersey; Scranton, Hatfield and Chambersburg, Pennsylvania; Carrollton, Texas; Atlanta, Georgia; Moscow Mills, Missouri; Pensacola, Florida and Vernon and Newport, California. *MINUTE MAID is a registered trademark of The Coca-Cola Company. **BARQ�S is a registered trademark of Barq�s Inc. ***CHILL is a registered trademark of Wells Dairy, Inc. Consolidated Statement of Operations Three Months Ended Nine Months Ended June 30, June 24, June 30, June 24, � 2007 � 2006 � 2007 � 2006 (in thousands) � Net sales $ 162,510 $ 140,132 $ 406,692 $ 360,747 Cost of goods sold � 106,852 � 89,399 � 273,379 � 241,671 Gross profit 55,658 50,733 133,313 119,076 Operating expenses � 36,852 � 33,985 � 101,177 � 92,137 Operating income 18,806 16,748 32,136 26,939 Other income � 451 � 746 � 1,914 � 2,145 Earnings before income taxes 19,257 17,494 34,050 29,084 Income taxes � 6,760 � 6,708 � 12,415 � 11,151 Net earnings $ 12,497 $ 10,786 $ 21,635 $ 17,933 � Earnings per diluted share $ .66 $ .57 $ 1.14 $ .95 Earnings per basic share $ .67 $ .58 $ 1.16 $ .97 Weighted average number of diluted shares 19,055 18,866 18,988 18,792 Weighted average number of basic shares 18,677 18,469 18,606 18,394 Consolidated Balance Sheets June 30, 2007 September 30, 2006 (in thousands) � Current assets $ 154,890 $ 172,244 Property, plant & equipment, net 93,003 85,447 Goodwill, net 59,874 57,948 Other intangibles, net 59,529 22,669 Other assets � 2,666 � 2,500 Total $ 369,962 $ 340,808 � Current liabilities 67,046 59,089 Deferred income taxes 18,211 18,211 Other long term obligations 487 635 Stockholders' equity � 284,218 � 262,873 Total $ 369,962 $ 340,808 The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management�s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof.