J & J Snack Foods Corp. (NASDAQ-JJSF) today announced sales and
earnings for the first quarter ended December 28, 2019.
Sales increased 4% to $282.9 million from $271.6
million in last year’s first quarter. Net earnings decreased to
$17.1 million in the current quarter from $17.5 million last year.
Earnings per diluted share decreased to $.89 for the first quarter
from $.93 last year. Operating income decreased 2% to $21.7 million
in the current quarter from $22.1 million in the year ago quarter.
Operating income was impacted by approximately $1 million of costs
related to the relocation of our ICEE company’s headquarters to
Tennessee.
Net earnings for last year’s quarter benefited from
a reduction of approximately $900,000 in tax, or $.05 per diluted
share, as the provision for the one time repatriation tax as a
result of the Tax Cuts and Job Act of 2017 was reduced as the
amount recorded the year prior was an estimate. Excluding the
reduction in the provision for the one-time repatriation tax, our
effective tax rate was 28.0% in last year’s quarter. Our
effective tax rate was 27.3% in this year’s quarter.
Gerald B. Shreiber, J & J’s President and Chief Executive
Officer, commented, “We remain committed to long term profitable
sales growth.”
J&J Snack Foods Corp. (NASDAQ: JJSF) is a leader and
innovator in the snack food industry, providing innovative, niche
and affordable branded snack foods and beverages to foodservice and
retail supermarket outlets. Manufactured and distributed
nationwide, our principal products include SUPERPRETZEL, the #1
soft pretzel brand in the world, as well as internationally known
ICEE and SLUSH PUPPIE frozen beverages, LUIGI’S Real Italian Ice,
MINUTE MAID* frozen ices, WHOLE FRUIT sorbet and frozen fruit bars,
SOUR PATCH KIDS** Flavored Ice Pops, Tio Pepe’s & CALIFORNIA
CHURROS, and THE FUNNEL CAKE FACTORY funnel cakes and several
bakery brands within DADDY RAY’S, COUNTRY HOME BAKERS and HILL
& VALLEY. With nearly twenty manufacturing facilities, and more
than $1 billion in annual revenue, J&J Snack Foods Corp. has
continued to see steady growth as a company, reaching record sales
for 48 consecutive years. The company consistently seeks out
opportunities to expand its unique niche market product offering
while bringing smiles to families worldwide. For more information,
please visit http://www.jjsnack.com.
*MINUTE MAID is a registered trademark of The Coca-Cola
Company **SOUR
PATCH KIDS is a registered trademark of Mondelēz International
group, used under license.
|
J & J SNACK FOODS CORP. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF EARNINGS |
|
(Unaudited) |
|
(in thousands, except per share amounts) |
|
|
|
|
|
| |
Three months ended |
| |
December 28, |
|
December 29, |
| |
2019 |
|
2018 |
| |
|
|
|
| Net Sales |
$ |
282,897 |
|
$ |
271,612 |
| |
|
|
|
| Cost of goods sold |
205,036 |
|
194,749 |
| Gross Profit |
77,861 |
|
76,863 |
| |
|
|
|
| Operating expenses |
|
|
|
| Marketing |
22,732 |
|
21,442 |
| Distribution |
23,542 |
|
23,952 |
|
Administrative |
9,618 |
|
9,243 |
| Other general
expense |
266 |
|
144 |
|
Total Operating Expenses |
56,158 |
|
54,781 |
| |
|
|
|
| Operating Income |
21,703 |
|
22,082 |
| |
|
|
|
| Other income (expense) |
|
|
|
| Investment income |
1,786 |
|
1,040 |
| Interest expense &
other |
(26) |
|
(27) |
| |
|
|
|
| Earnings before |
|
|
|
| income taxes |
23,463 |
|
23,095 |
| |
|
|
|
| Income tax expense |
6,404 |
|
5,569 |
| |
|
|
|
| NET EARNINGS |
$ |
17,059 |
|
$ |
17,526 |
| |
|
|
|
| Earnings per diluted
share |
$ |
0.89 |
|
$ |
0.93 |
| |
|
|
|
| Weighted average
number |
|
|
|
| of diluted shares |
19,144 |
|
18,897 |
| |
|
|
|
| Earnings per basic share |
$ |
0.90 |
|
$ |
0.93 |
| |
|
|
|
| Weighted average number
of |
|
|
|
| basic shares |
18,898 |
|
18,765 |
|
|
|
|
|
|
J & J SNACK FOODS CORP. AND SUBSIDIARIES |
|
|
|
|
CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
(in thousands, except share amounts) |
|
|
|
| |
December 28, |
|
|
|
| |
2019 |
|
|
September 28, |
| |
(unaudited) |
|
|
2019 |
| Assets |
|
|
|
|
| Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
170,327 |
|
|
$ |
192,395 |
| Marketable securities
held to maturity |
63,594 |
|
|
51,091 |
| Accounts receivable,
net |
131,574 |
|
|
140,938 |
| Inventories |
125,789 |
|
|
116,165 |
| Prepaid expenses and
other |
3,862 |
|
|
5,768 |
|
Total current assets |
495,146 |
|
|
506,357 |
| |
|
|
|
|
| Property, plant and equipment,
at cost |
|
|
|
|
| Land |
2,494 |
|
|
2,494 |
| Buildings |
26,582 |
|
|
26,582 |
| Plant machinery and
equipment |
324,511 |
|
|
315,360 |
| Marketing
equipment |
250,308 |
|
|
240,681 |
| Transportation
equipment |
10,218 |
|
|
9,725 |
| Office equipment |
32,072 |
|
|
31,217 |
| Improvements |
40,750 |
|
|
40,626 |
| Construction in
progress |
8,291 |
|
|
10,039 |
|
Total Property, plant and equipment, at cost |
695,226 |
|
|
676,724 |
| Less accumulated
depreciation |
|
|
|
|
| and amortization |
431,596 |
|
|
423,276 |
|
Property, plant and equipment, net |
263,630 |
|
|
253,448 |
| |
|
|
|
|
| Other assets |
|
|
|
|
| Goodwill |
119,484 |
|
|
102,511 |
| Other intangible
assets, net |
75,848 |
|
|
54,922 |
| Marketable securities
held to maturity |
55,289 |
|
|
79,360 |
| Marketable securities
available for sale |
16,541 |
|
|
19,903 |
| Operating lease
right-of-use assets |
64,399 |
|
|
- |
| Other |
2,698 |
|
|
2,838 |
|
Total other assets |
334,259 |
|
|
259,534 |
| Total
Assets |
$ |
1,093,035 |
|
|
$ |
1,019,339 |
| |
|
|
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
| Current Liabilities |
|
|
|
|
| Current finance lease
liabilities |
$ |
342 |
|
|
$ |
339 |
| Accounts payable |
71,919 |
|
|
72,029 |
| Accrued insurance
liability |
11,615 |
|
|
10,457 |
| Accrued
liabilities |
13,140 |
|
|
7,808 |
| Current operating lease
liabilities |
13,762 |
|
|
- |
| Accrued compensation
expense |
12,709 |
|
|
21,154 |
| Dividends payable |
10,867 |
|
|
9,447 |
|
Total current liabilities |
134,354 |
|
|
121,234 |
| |
|
|
|
|
| Noncurrent finance lease
liabilities |
628 |
|
|
718 |
| Noncurrent operating lease
liabilities |
53,300 |
|
|
- |
| Deferred income taxes |
61,730 |
|
|
61,920 |
| Other long-term
liabilities |
503 |
|
|
1,716 |
| |
|
|
|
|
| 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 |
|
|
|
|
| 18,900,000 and
18,895,000 respectively |
47,511 |
|
|
45,744 |
| Accumulated other
comprehensive loss |
(12,178) |
|
|
(12,988) |
| Retained Earnings |
807,187 |
|
|
800,995 |
|
Total stockholders' equity |
842,520 |
|
|
833,751 |
| Total Liabilities and
Stockholders' Equity |
$ |
1,093,035 |
|
|
$ |
1,019,339 |
| |
|
|
|
|
|
J & J SNACK FOODS CORP. AND SUBSIDIARIES |
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
(Unaudited) (in
thousands) |
|
|
| |
|
|
|
| |
Three months ended |
| |
December 28, |
|
December 29, |
| |
2019 |
|
2018 |
| Operating activities: |
|
|
|
|
Net earnings |
$ |
17,059 |
|
$ |
17,526 |
| Adjustments to reconcile
net |
|
|
|
| earnings to net
cash |
|
|
|
| provided by operating
activities: |
|
|
|
|
Depreciation of fixed assets |
11,887 |
|
10,774 |
|
Amortization of intangibles |
|
|
|
|
and deferred costs |
843 |
|
861 |
|
Share-based compensation |
1,299 |
|
972 |
|
Deferred income taxes |
(231) |
|
689 |
|
Loss on marketable securities |
9 |
|
1,027 |
|
Other |
14 |
|
82 |
|
Changes in assets and liabilities |
|
|
|
|
net of effects from purchase of companies |
|
|
|
|
Decrease in accounts receivable |
10,254 |
|
14,386 |
|
Increase in inventories |
(8,524) |
|
(4,974) |
|
Decrease in prepaid expenses |
1,922 |
|
340 |
|
Decrease in accounts payable and |
|
|
|
|
accrued liabilities |
(963) |
|
(8,872) |
|
Net cash provided by operating activities |
33,569 |
|
32,811 |
| Investing activities: |
|
|
|
| Payments for purchases
of companies, |
|
|
|
| net of cash
acquired |
(44,970) |
|
- |
| Purchases of property,
plant |
|
|
|
| and equipment |
(17,605) |
|
(11,837) |
| Purchases of marketable
securities |
(4,000) |
|
(17,513) |
| Proceeds from redemption
and sales of |
|
|
|
| marketable
securities |
18,782 |
|
17,125 |
| Proceeds from disposal
of property and |
|
|
|
| equipment |
898 |
|
577 |
| Other |
38 |
|
(236) |
|
Net cash used in investing activities |
(46,857) |
|
(11,884) |
| Financing activities: |
|
|
|
| Proceeds from issuance
of stock |
468 |
|
1,704 |
| Payments on finance
lease obligations |
(86) |
|
(83) |
| Payment of cash
dividend |
(9,447) |
|
(8,438) |
|
Net cash used in financing activities |
(9,065) |
|
(6,817) |
|
Effect of exchange rate on cash |
|
|
|
|
and cash equivalents |
285 |
|
(875) |
| Net (decrease) increase
in cash |
|
|
|
| and cash
equivalents |
(22,068) |
|
13,235 |
| Cash and cash
equivalents at beginning |
|
|
|
| of period |
192,395 |
|
111,479 |
| Cash and cash
equivalents at end |
|
|
|
| of period |
$ |
170,327 |
|
$ |
124,714 |
| |
|
|
|
| |
Three months ended |
|
|
December 28, |
|
December 29, |
| |
2019 |
|
2018 |
|
|
(unaudited) |
|
|
(in thousands) |
| Sales to External
Customers: |
|
|
|
| Food Service |
|
|
|
|
Soft pretzels |
$ |
49,941 |
|
$ |
48,991 |
|
Frozen juices and ices |
7,043 |
|
7,527 |
|
Churros |
16,391 |
|
15,135 |
|
Handhelds |
7,189 |
|
8,802 |
|
Bakery |
96,372 |
|
94,245 |
|
Other |
6,512 |
|
5,326 |
| Total Food Service |
$ |
183,448 |
|
$ |
180,026 |
| |
|
|
|
| Retail Supermarket |
|
|
|
|
Soft pretzels |
$ |
9,826 |
|
$ |
10,186 |
|
Frozen juices and ices |
10,093 |
|
10,996 |
|
Biscuits |
6,978 |
|
7,864 |
|
Handhelds |
2,761 |
|
2,568 |
|
Coupon redemption |
(543) |
|
(694) |
|
Other |
311 |
|
359 |
| Total Retail
Supermarket |
$ |
29,426 |
|
$ |
31,279 |
| |
|
|
|
| Frozen Beverages |
|
|
|
|
Beverages |
$ |
35,255 |
|
$ |
31,167 |
|
Repair and |
|
|
|
|
maintenance service |
22,486 |
|
19,915 |
|
Machines revenue |
11,981 |
|
8,904 |
|
Other |
301 |
|
321 |
| Total Frozen
Beverages |
$ |
70,023 |
|
$ |
60,307 |
| |
|
|
|
| Consolidated Sales |
$ |
282,897 |
|
$ |
271,612 |
| |
|
|
|
| Depreciation and
Amortization: |
|
|
|
| Food Service |
$ |
6,918 |
|
$ |
6,322 |
| Retail Supermarket |
359 |
|
335 |
| Frozen Beverages |
5,453 |
|
4,978 |
| Total Depreciation and
Amortization |
$ |
12,730 |
|
$ |
11,635 |
| |
|
|
|
| Operating Income : |
|
|
|
| Food Service |
$ |
18,034 |
|
$ |
17,697 |
| Retail Supermarket |
2,217 |
|
2,211 |
| Frozen Beverages |
1,452 |
|
2,174 |
| Total Operating
Income |
$ |
21,703 |
|
$ |
22,082 |
| |
|
|
|
| Capital Expenditures: |
|
|
|
| Food Service |
$ |
8,403 |
|
$ |
6,278 |
| Retail Supermarket |
960 |
|
552 |
| Frozen Beverages |
8,242 |
|
5,007 |
| Total Capital
Expenditures |
$ |
17,605 |
|
$ |
11,837 |
| |
|
|
|
| Assets: |
|
|
|
| Food Service |
$ |
757,781 |
|
$ |
686,192 |
| Retail Supermarket |
30,963 |
|
28,100 |
| Frozen Beverages |
304,291 |
|
219,692 |
| Total Assets |
$ |
1,093,035 |
|
$ |
933,984 |
| |
|
|
|
RESULTS OF OPERATIONS
Net sales increased $11,285,000 or 4% to $282,897,000 for the
three months ended December 28, 2019 compared to the three months
ended December 29, 2018. Excluding sales from the acquisition of
ICEE Distributors in October 2019, sales increased 3%.
FOOD SERVICE
Sales to food service customers increased $3,422,000 or 2% in
the first quarter to $183,448,000. Soft pretzel sales to food
service increased 2% to $49,941,000 as higher sales to convenience
store chains more than offset lower sales to schools.
Frozen juices and ices sales decreased 6% to $7,043,000 in the
three months with sales decreases primarily to school food service
customers.
Churro sales to food service customers were up 8% in the quarter
to $16,391,000 with sales increases to warehouse club stores and
generally across our customer base.
Sales of bakery products increased $2,127,000 or 2% in the first
quarter to $96,372,000 with significant offsetting increases and
decreases in sales to particular customers.
Sales of handhelds decreased $1,613,000 or 18% in the quarter
with the decrease primarily coming from lower sales to co-pack
customers. Sales of funnel cake increased $1,240,000 or 25% in the
quarter primarily due to higher sales to one casual dining
restaurant chain.
Sales of new products in the first twelve months since their
introduction were approximately $2.5 million in this quarter. Price
increases were approximately $2.7 million for the quarter and net
volume increases accounted for approximately $700,000 of sales in
the quarter. Operating income in our Food
Service segment increased from $17,697,000 to $18,034,000 in the
quarter primarily because of higher volume and improved operations
at our Hill & Valley bakery.
RETAIL SUPERMARKETS
Sales of products to retail supermarkets decreased $1,853,000 or
6% to $29,426,000 in the first quarter. Soft pretzel sales for the
first quarter were down 4% to $9,826,000, sales of frozen juices
and ices were down 8% to $10,093,000 in the first quarter and sales
of biscuits were down 11% to $6,978,000 in the first quarter as we
lost some volume and placements in all three product categories due
to price increases implemented a year ago. We expect volume to at
least stabilize beginning in our second quarter. Handheld sales to
retail supermarket customers increased 8% to $2,761,000 in the
quarter.
There were virtually no sales of new products in the first
quarter. Price increases provided about $1.3 million of sales in
the quarter and net volume decreased by about $3.2
million.
Operating income in our Retail Supermarkets segment was
$2,217,000 in this year’s first quarter compared to $2,211,000 in
last year’s quarter as the benefits of higher prices offset the
negative impact of lower volume.
FROZEN BEVERAGES Frozen beverage
and related product sales increased 16% to $70,023,000 in the first
quarter. Beverage related sales were up 13% to $35,255,000.
Excluding sales from the acquisition of ICEE Distributors in
October 2019, frozen beverages and related product sales increased
12% and beverage related sales increased 4%. Gallon sales were up
6% for the three months exclusive of ICEE Distributors’ gallons.
Service revenue increased 13% to $22,486,000 in the first quarter
with sales increases and decreases spread throughout our customer
base.
Machines revenue (primarily sales of frozen beverage machines)
were $11,981,000, an increase of 35%. Operating income in our
Frozen Beverage segment decreased to $1,452,000 in this quarter
compared to $2,174,000 last year as a result of generally higher
costs, including approximately $1 million of costs for the
relocation of ICEE’s headquarters. We expect additional relocation
costs of about $800,000 in our second quarter.
CONSOLIDATED
Gross profit as a percentage of sales was 27.52% in the three
month period this year and 28.30% last year. Gross profit
percentage decreased because of lower volume in our combined food
service and retail supermarket segments, product mix changes
including higher machines sales in our frozen beverages segment and
generally higher costs in our frozen beverages segment.
Total operating expenses increased $1,377,000 in the first
quarter but as a percentage of sales decreased to 19.9% from 20.2%
last year. Marketing expenses increased to 8.04% of sales in this
year’s quarter from 7.89% last year. Distribution expenses were
8.32% of sales in this year’s quarter and 8.82% of sales in last
year’s quarter primarily because of lower freight rates.
Administrative expenses were 3.40% of sales this quarter compared
to 3.40% of sales last year.
Operating income decreased $379,000 or 2% to $21,703,000 in the
first quarter as a result of the aforementioned items.
Investment income increased by $746,000 in the first quarter
primarily because of recognized unrealized gains of $71,000 this
year compared to recognized unrealized losses of $1,027,000 last
year.
Net earnings decreased $467,000, or 3%, in the current three
month period to $17,059,000. Net earnings in last year’s quarter
benefitted by a reduction of approximately $900,000 in tax as the
provision for the one time repatriation tax as a result of the Tax
Cuts and Job Act of 2017 was reduced as the amount recorded the
year prior was an estimate. Excluding the reduction in the
provision for the one time repatriation tax, our effective tax rate
was 28.0% in last year’s quarter. Our effective tax rate was 27.3%
in this year’s quarter.
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. MooreSenior Vice President
Chief Financial
Officer(856) 532-6603
Grafico Azioni J and J Snack Foods (NASDAQ:JJSF)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni J and J Snack Foods (NASDAQ:JJSF)
Storico
Da Set 2023 a Set 2024
