J & J Snack Foods Corp. (NASDAQ:JJSF) today announced sales and
earnings for the first quarter ended December 24, 2016.
Sales increased 1% to $225.6 million from $222.8
million in last year’s first quarter. Net earnings increased 4% to
$13.5 million in the current quarter from $13.0 million last
year. Earnings per diluted share increased 4% to $.72 for the
first quarter from $.69 last year. Operating income increased 5% to
$19.3 million in the current quarter from $18.4 million in the year
ago quarter.
Gerald B. Shreiber, J & J’s President and
Chief Executive Officer, commented, “Overall, we are satisfied with
our results for the quarter. Our food service business did
particularly well led by strong sales of soft pretzels.”
J&J Snack Foods Corp. is a leader and
innovator in the snack food industry, providing nutritional and
affordable branded niche snack foods and beverages to foodservice
and retail supermarket outlets. Manufactured and distributed
nationwide, our principal products include SUPERPRETZEL, BAVARIAN
BAKERY and other soft pretzels, ICEE and SLUSH PUPPIE frozen
beverages, LUIGI’S, PHILLY SWIRL, MINUTE MAID* frozen juice bars
and ices, WHOLE FRUIT sorbet and frozen fruit bars, MARY B’S
biscuits and dumplings, DADDY RAY’S fig and fruit bars, CALIFORNIA
CHURROS and TIO PEPE’S churros, PATIO Burritos and other handheld
sandwiches, THE FUNNEL CAKE FACTORY funnel cakes, and several
cookie brands within COUNTRY HOME BAKERS. For more
information, please visit us at www.jjsnack.com.
*MINUTE MAID is a registered trademark of The
Coca-Cola Company
J & J SNACK FOODS CORP. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
EARNINGS |
(Unaudited) |
(in thousands, except per share
amounts) |
|
|
|
|
|
Three months ended |
|
December 24, |
|
December 26, |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
Net Sales |
$ |
225,570 |
|
|
$ |
222,850 |
|
|
|
|
|
Cost of goods sold |
|
159,675 |
|
|
|
159,015 |
|
Gross
Profit |
|
65,895 |
|
|
|
63,835 |
|
|
|
|
|
Operating expenses |
|
|
|
Marketing |
|
20,335 |
|
|
|
19,629 |
|
Distribution |
|
18,164 |
|
|
|
18,256 |
|
Administrative |
|
8,098 |
|
|
|
7,690 |
|
Other
general income |
|
(29 |
) |
|
|
(100 |
) |
Total
Operating Expenses |
|
46,568 |
|
|
|
45,475 |
|
|
|
|
|
Operating Income |
|
19,327 |
|
|
|
18,360 |
|
|
|
|
|
Other income
(expense) |
|
|
|
Investment income |
|
1,227 |
|
|
|
1,160 |
|
Interest
expense & other |
|
(26 |
) |
|
|
(32 |
) |
|
|
|
|
Earnings
before |
|
|
|
income
taxes |
|
20,528 |
|
|
|
19,488 |
|
|
|
|
|
Income taxes |
|
6,988 |
|
|
|
6,510 |
|
|
|
|
|
NET
EARNINGS |
$ |
13,540 |
|
|
$ |
12,978 |
|
|
|
|
|
Earnings per diluted
share |
$ |
0.72 |
|
|
$ |
0.69 |
|
|
|
|
|
Weighted average
number |
|
|
|
of diluted
shares |
|
18,787 |
|
|
|
18,839 |
|
|
|
|
|
Earnings per basic
share |
$ |
0.72 |
|
|
$ |
0.69 |
|
|
|
|
|
Weighted average number
of |
|
|
|
basic
shares |
|
18,686 |
|
|
|
18,687 |
|
J & J SNACK FOODS CORP. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except share
amounts) |
|
December 24, |
|
September 24, |
|
|
2016 |
|
|
|
2016 |
|
|
(unaudited) |
|
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and
cash equivalents |
$ |
140,966 |
|
|
$ |
140,652 |
|
Marketable securities held to maturity |
|
26,017 |
|
|
|
13,539 |
|
Accounts
receivable, net |
|
92,368 |
|
|
|
98,325 |
|
Inventories |
|
95,359 |
|
|
|
88,684 |
|
Prepaid
expenses and other |
|
8,141 |
|
|
|
13,904 |
|
Total
current assets |
|
362,851 |
|
|
|
355,104 |
|
|
|
|
|
Property, plant and
equipment, at cost |
|
|
|
Land |
|
2,482 |
|
|
|
2,512 |
|
Buildings |
|
26,741 |
|
|
|
26,741 |
|
Plant
machinery and equipment |
|
228,356 |
|
|
|
227,614 |
|
Marketing
equipment |
|
279,785 |
|
|
|
278,299 |
|
Transportation equipment |
|
7,589 |
|
|
|
7,637 |
|
Office
equipment |
|
22,618 |
|
|
|
22,136 |
|
Improvements |
|
34,898 |
|
|
|
34,750 |
|
Construction in progress |
|
7,948 |
|
|
|
5,356 |
|
Total
Property, plant and equipment, at cost |
|
610,417 |
|
|
|
605,045 |
|
Less
accumulated depreciation |
|
|
|
and
amortization |
|
424,285 |
|
|
|
420,832 |
|
Property,
plant and equipment, net |
|
186,132 |
|
|
|
184,213 |
|
|
|
|
|
Other assets |
|
|
|
Goodwill |
|
86,442 |
|
|
|
86,442 |
|
Other
intangible assets, net |
|
40,711 |
|
|
|
41,819 |
|
Marketable securities held to maturity |
|
86,025 |
|
|
|
90,732 |
|
Marketable securities available for sale |
|
29,362 |
|
|
|
29,465 |
|
Other |
|
2,650 |
|
|
|
2,712 |
|
Total
other assets |
|
245,190 |
|
|
|
251,170 |
|
Total
Assets |
$ |
794,173 |
|
|
$ |
790,487 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Current
Liabilities |
|
|
|
Current
obligations under capital leases |
$ |
358 |
|
|
$ |
365 |
|
Accounts
payable |
|
63,149 |
|
|
|
62,026 |
|
Accrued
insurance liability |
|
10,286 |
|
|
|
10,119 |
|
Accrued
liabilities |
|
6,954 |
|
|
|
6,161 |
|
Accrued
compensation expense |
|
11,396 |
|
|
|
16,340 |
|
Dividends
payable |
|
7,852 |
|
|
|
7,280 |
|
Total
current liabilities |
|
99,995 |
|
|
|
102,291 |
|
|
|
|
|
Long-term obligations
under capital leases |
|
1,151 |
|
|
|
1,235 |
|
Deferred income
taxes |
|
48,106 |
|
|
|
48,186 |
|
Other long-term
liabilities |
|
738 |
|
|
|
801 |
|
|
|
|
|
Stockholders'
Equity |
|
|
|
Preferred stock, $1 par
value; authorized |
|
|
|
10,000,000
shares; none issued |
|
- |
|
|
|
- |
|
Common stock, no par
value; authorized, |
|
|
|
50,000,000
shares; issued and outstanding |
|
|
|
18,697,000 and
18,668,000 respectively |
|
27,060 |
|
|
|
25,332 |
|
Accumulated other
comprehensive loss |
|
(14,622 |
) |
|
|
(13,415 |
) |
Retained
Earnings |
|
631,745 |
|
|
|
626,057 |
|
Total
stockholders' equity |
|
644,183 |
|
|
|
637,974 |
|
Total
Liabilities and Stockholders' Equity |
$ |
794,173 |
|
|
$ |
790,487 |
|
J & J SNACK FOODS CORP. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
(in thousands) |
|
|
|
|
|
Three months ended |
|
December 24, |
|
December 26, |
|
|
2016 |
|
|
|
2015 |
|
Operating
activities: |
|
|
|
|
|
Net
earnings |
$ |
13,540 |
|
|
$ |
12,978 |
|
Adjustments to
reconcile net |
|
|
|
earnings
to net cash |
|
|
|
provided
by operating activities: |
|
|
|
Depreciation of fixed assets |
|
8,728 |
|
|
|
8,170 |
|
Amortization of intangibles |
|
|
|
and
deferred costs |
|
1,183 |
|
|
|
1,455 |
|
Share-based compensation |
|
748 |
|
|
|
518 |
|
Deferred
income taxes |
|
(74 |
) |
|
|
(36 |
) |
Loss on
sale of marketable securities |
|
- |
|
|
|
109 |
|
Other |
|
222 |
|
|
|
89 |
|
Changes
in assets and liabilities |
|
|
|
net of
effects from purchase of companies |
|
|
|
Decrease
in accounts receivable |
|
5,849 |
|
|
|
10,527 |
|
Increase
in inventories |
|
(6,727 |
) |
|
|
(12,073 |
) |
Decrease
in prepaid expenses |
|
5,747 |
|
|
|
3,141 |
|
Decrease
in accounts payable and |
|
|
|
accrued liabilities |
|
(2,816 |
) |
|
|
(3,960 |
) |
Net cash
provided by operating activities |
|
26,400 |
|
|
|
20,918 |
|
Investing
activities: |
|
|
|
Purchases
of property, plant |
|
|
|
and
equipment |
|
(11,399 |
) |
|
|
(13,304 |
) |
Purchases
of marketable securities |
|
(8,550 |
) |
|
|
(21,329 |
) |
Proceeds
from redemption and sales of |
|
|
|
marketable securities |
|
475 |
|
|
|
1,198 |
|
Proceeds
from disposal of property and |
|
|
|
equipment |
|
645 |
|
|
|
581 |
|
Other |
|
(20 |
) |
|
|
(72 |
) |
Net cash
used in investing activities |
|
(18,849 |
) |
|
|
(32,926 |
) |
Financing
activities: |
|
|
|
Payments
to repurchase common stock |
|
- |
|
|
|
(3,115 |
) |
Proceeds
from issuance of stock |
|
980 |
|
|
|
640 |
|
Payments
on capitalized lease obligations |
|
(90 |
) |
|
|
(67 |
) |
Payment
of cash dividend |
|
(7,280 |
) |
|
|
(6,723 |
) |
Net cash
used in financing activities |
|
(6,390 |
) |
|
|
(9,265 |
) |
Effect of
exchange rate on cash |
|
|
|
and cash
equivalents |
|
(847 |
) |
|
|
(494 |
) |
Net
increase (decrease) in cash |
|
|
|
and cash
equivalents |
|
314 |
|
|
|
(21,767 |
) |
Cash and
cash equivalents at beginning |
|
|
|
of
period |
|
140,652 |
|
|
|
133,689 |
|
Cash and
cash equivalents at end |
|
|
|
of
period |
$ |
140,966 |
|
|
$ |
111,922 |
|
|
|
|
|
|
Three months ended |
|
December 24, |
|
December 26, |
|
|
2016 |
|
|
|
2015 |
|
|
(unaudited) |
|
(in thousands) |
Sales to External
Customers: |
|
|
|
Food
Service |
|
|
|
Soft pretzels |
$ |
41,494 |
|
|
$ |
38,699 |
|
Frozen juices and ices |
|
7,479 |
|
|
|
8,315 |
|
Churros |
|
14,438 |
|
|
|
13,936 |
|
Handhelds |
|
7,479 |
|
|
|
6,146 |
|
Bakery |
|
75,279 |
|
|
|
76,601 |
|
Other |
|
4,128 |
|
|
|
3,055 |
|
Total
Food Service |
$ |
150,297 |
|
|
$ |
146,752 |
|
|
|
|
|
Retail
Supermarket |
|
|
|
Soft pretzels |
$ |
8,944 |
|
|
$ |
8,740 |
|
Frozen juices and ices |
|
9,851 |
|
|
|
9,064 |
|
Handhelds |
|
3,450 |
|
|
|
3,875 |
|
Coupon redemption |
|
(1,259 |
) |
|
|
(574 |
) |
Other |
|
633 |
|
|
|
155 |
|
Total
Retail Supermarket |
$ |
21,619 |
|
|
$ |
21,260 |
|
|
|
|
|
Frozen
Beverages |
|
|
|
Beverages |
$ |
28,276 |
|
|
$ |
28,070 |
|
Repair and |
|
|
|
maintenance service |
|
18,091 |
|
|
|
17,763 |
|
Machines sales |
|
7,039 |
|
|
|
8,732 |
|
Other |
|
248 |
|
|
|
273 |
|
Total
Frozen Beverages |
$ |
53,654 |
|
|
$ |
54,838 |
|
|
|
|
|
Consolidated Sales |
$ |
225,570 |
|
|
$ |
222,850 |
|
|
|
|
|
Depreciation and
Amortization: |
|
|
|
Food Service |
$ |
5,732 |
|
|
$ |
5,385 |
|
Retail Supermarket |
|
278 |
|
|
|
286 |
|
Frozen Beverages |
|
3,901 |
|
|
|
3,954 |
|
Total Depreciation and
Amortization |
$ |
9,911 |
|
|
$ |
9,625 |
|
|
|
|
|
Operating Income : |
|
|
|
Food Service |
$ |
17,054 |
|
|
$ |
15,902 |
|
Retail Supermarket |
|
1,046 |
|
|
|
1,090 |
|
Frozen Beverages |
|
1,227 |
|
|
|
1,368 |
|
Total Operating
Income |
$ |
19,327 |
|
|
$ |
18,360 |
|
|
|
|
|
Capital
Expenditures: |
|
|
|
Food Service |
$ |
6,587 |
|
|
$ |
8,084 |
|
Retail Supermarket |
|
82 |
|
|
|
156 |
|
Frozen Beverages |
|
4,730 |
|
|
|
5,064 |
|
Total Capital
Expenditures |
$ |
11,399 |
|
|
$ |
13,304 |
|
|
|
|
|
Assets: |
|
|
|
Food Service |
$ |
594,963 |
|
|
$ |
546,264 |
|
Retail Supermarket |
|
22,128 |
|
|
|
23,099 |
|
Frozen Beverages |
|
177,082 |
|
|
|
172,275 |
|
Total Assets |
$ |
794,173 |
|
|
$ |
741,638 |
|
|
|
|
|
Results of Operations
Net sales increased $2,720,000 or 1% to
$225,570,000 for the three months ended December 24, 2016 compared
to the three months ended December 26, 2015.
FOOD SERVICE
Sales to food service customers increased
$3,545,000 or 2% in the first quarter to $150,297,000. Soft
pretzel sales to the food service market increased 7% to
$41,494,000 in the first quarter due primarily to higher sales to
restaurant chains, convenience stores and school food service.
Frozen juices and ices sales for the quarter
were down 10% to $7,479,000 primarily because of lower sales to
school food service and warehouse club stores. We expect
sales to one school district, which accounted for roughly 1/2 of
the 10% sales decline, to resume in the second quarter.
Churro sales to food service customers increased 4% to $14,438,000
in the first quarter with sales increases and decreases throughout
our customer base.
Sales of bakery products decreased $1,322,000 or
2% in the first quarter to $75,279,000 as sales decreases to three
customers of about $5.5 million were largely offset by increased
sales to three other customers of about $3.8 million. We
expect sales to two customers whose sales were down $2.9 million to
level off or begin to increase in the second quarter.
Sales of handhelds increased $1,333,000,
or 22%, with sales increases to four customers accounting for about
2/3 of the increase. Sales of funnel cake products increased
$1,147,000, or 42%, primarily due to increased sales to school food
service.
Sales of new products in the first twelve months
since their introduction were approximately $7 million in this
quarter. Price increases had a marginal impact on sales in the
quarter and net volume increases, including new product sales as
defined above, accounted for approximately $5 million of sales in
the quarter.
Operating income in our Food Service segment
increased from $15,902,000 to $17,054,000 in the quarter.
Operating income for the quarter increased primarily because of
strong sales increases in soft pretzels, churros, funnel cake and
handhelds as well as by improved operations and lower ingredient
costs.
On January 3, 2017, we acquired Hill &
Valley Inc., a premium bakery located in Rock Island, IL, for
approximately $31 million. Hill & Valley, with sales of
over $45 million annually, is a manufacturer of a variety of
pre-baked cakes, cookies, pies, muffins and other desserts to
retail in-store bakeries. Hill & Valley is a leading
brand of Sugar Free and No Sugar Added pre-baked in-store bakery
items. Additionally, Hill & Valley sustains strategic private
labeling partnerships with retailers nationwide.
RETAIL SUPERMARKETS
Sales of products to retail supermarkets
increased $359,000 or 2% to $21,619,000 in the first quarter.
Soft pretzel sales for the first quarter were up 2% to $8,944,000
due primarily to the benefit of increased couponing. Sales of
frozen juices and ices increased $787,000 or 9% to $9,851,000 in
the first quarter with sales increases and decreases across our
product lines. Coupon redemption costs, a reduction of sales,
increased 119% or about $685,000 for the quarter. Handheld sales to
retail supermarket customers decreased 11% to $3,450,000 in the
quarter as sales of this product line continues its long term
downward trend.
Sales of new products in the first twelve months
since their introduction were approximately $500,000 in this
quarter. Price increases had a marginal impact on sales in the
quarter and net volume changes, including new product sales as
defined above and net of increased coupon costs, had essentially no
impact on sales in the quarter. Operating income in our
Retail Supermarkets segment decreased from $1,090,000 to $1,046,000
in the quarter primarily because of higher coupon and advertising
expenses, but which were largely offset by the benefit of increased
product sales.
FROZEN BEVERAGES
Frozen beverage and related product sales
decreased 2% to $53,654,000 in the first quarter. Beverage
related sales alone were up 1% in the quarter. Gallon sales
were essentially the same as in last year’s first quarter.
Service revenue increased 2% to $18,091,000 in the first quarter
with sales increases and decreases throughout our customer
base.
Sales of beverage machines, which tend to
fluctuate from year to year while following no specific trend, were
$1,693,000 or 19% lower in the three month period. The approximate
number of company owned frozen beverage dispensers was 52,200 and
51,600 at December 24, 2016 and September 24, 2016,
respectively. Operating income in our Frozen Beverage segment
was $1,227,000 in this year’s quarter compared to $1,368,000 last
year. Overall lower sales were the main cause of the slight
decrease in operating income.
CONSOLIDATED
Gross profit as a percentage of sales improved
to 29.21% in this year’s three month period from 28.64% last year.
The increase resulted from increased sales of other than bakery
products in our food service business along with lower ingredient
costs and improved operating efficiencies.
Total operating expenses increased $1,093,000 in
this quarter and as a percentage of sales increased from 20.4% to
20.6%. Marketing expenses increased to 9.01% of sales from
8.81%, distribution expenses decreased to 8.05% of sales from 8.19%
and administrative expenses increased to 3.59% of sales from
3.45%. Marketing expenses increased as a percent of sales
primarily because of increased spending in our retail supermarket
business.
Operating income increased $967,000 or 5% to
$19,327,000 in the first quarter as a result of the aforementioned
items.
Investment income increased by $67,000 in the
quarter as our holdings of marketable securities increased about
12% from a year ago.
The effective income tax rate has been estimated
at 34% for this year’s quarter and 33% for last year’s
quarter. We are estimating an effective income tax rate of
approximately 35-1/2% for the year. Both years’ quarter’s
rate benefited by an unusually high tax benefit on share based
compensation. We expect such benefit as a percentage of
taxable income to be lower the balance of this year.
Net earnings increased $562,000 or 4% in the
current three month period to $13,540,000 as a result of the
aforementioned items.
There are many factors which can impact our net
earnings from year to year and in the long run, among which are the
supply and cost of raw materials and labor, insurance costs,
factors impacting sales as noted above, the continuing
consolidation of our customers, our ability to manage our
manufacturing, marketing and distribution activities, our ability
to make and integrate acquisitions and changes in tax laws and
interest rates.
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.
Contact:
Dennis G. Moore
Senior Vice President
Chief Financial Officer
(856) 532-6603
Grafico Azioni J and J Snack Foods (NASDAQ:JJSF)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni J and J Snack Foods (NASDAQ:JJSF)
Storico
Da Lug 2023 a Lug 2024