J&J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today
reported financial results for the fourth quarter and full year
ended September 24, 2022.
|
Fourth Quarter |
Full-Year |
Actuals |
% v. LY |
Actuals |
% v. LY |
Net Sales |
$400.4M |
23.9% |
$1,381M |
20.6% |
Operating Income |
$21.6M |
-14.5% |
$61.8M |
-13.2% |
Net Earnings |
$17.3M |
-8.3% |
$47.2M |
-15.1% |
Earnings per Diluted Share |
$0.90 |
-8.2% |
$2.46 |
-15.5% |
|
|
|
|
|
Adjusted EBITDA |
$40.1M |
3.7% |
$124.1 |
-3.0% |
Adjusted Earnings per Diluted Share |
$1.05 |
-1.9% |
$2.76 |
-12.1% |
Dan Fachner, J&J Snack Foods President and
CEO, commented, “We are pleased with our strong top-line growth
across all three of our business segments, including a 24% increase
in net sales for the fiscal fourth quarter and a 21% increase in
net sales for the full year. These results mark a fourth
consecutive quarterly revenue record, including full year revenue
over $194 million greater than our prior highest annual revenue.
Adjusted EBITDA increased 4% for the quarter compared to prior year
even as we continue to experience unprecedented cost inflation. As
a company, we remain focused improving profitability.”
“Our ability to deliver strong results in a very
challenging cost and operating environment reflects the success of
our sales-centric initiatives. Our focus on new product innovation,
leveraging core-brands to create compelling product extensions,
repositioning how we market our brands, and driving cross-selling
opportunities is driving this sales momentum. In addition, we
continue to see robust demand for our higher-margin core products
along with continued strength across key sales channels and
increased demand of our products with both new and existing
customers. We are also making progress on our operational
initiatives focused on continuous improvement, including specific
plant projects focused on reducing cost and inefficiencies,
centralizing our procurement and R&D functions, expanding and
improving our production line capabilities, and optimizing our
supply chain. We expect these actions will result in significant
contributions to our overall results in the coming fiscal years,
and help to offset the ongoing costs pressures across the
business.
“Despite the record sales, we continue to
experience historically high inflation pressures across just about
every segment of the business including wages, fuel, packaging,
shipping and commodities. While our profit has been significantly
impacted by this dynamic, we are pleased with our quarterly
sequential improvement in gross margin and expect to see further
progress in the coming quarters as the effect of our most recent
pricing, product mix, SKU management initiatives take hold.”
“In summary, we are executing on our strategy.
We are aggressively growing sales led by the strength of our core
brands and making progress offsetting a historic cost environment.
We are well positioned as we head into fiscal 2023 and expect to
continue our strong sales momentum while also improving
profitability. I am confident that our strategy will continue our
long history of creating value for our employees, partners and
shareholders.”
Total Company Fourth Quarter Highlights
Net sales increased 23.9% to $400.4 million in
Q4 of fiscal 2022, compared to Q4 of fiscal 2021.
Key highlights include:
- Sales included approximately $31.5
million in revenue from Dippin’ Dots. Excluding the contribution
from Dippin’ Dots, sales increased by 14.2%, compared to Q4
’21.
- Organic sales growth was driven by
growth across all three business segments, led by our core products
including pretzels, churros, frozen novelties and frozen
beverages.
- Food Service sales exceeded Q4 ’21
by 29.2%.
- Retail segment sales exceeded Q4
’21 by 11.3%.
- Frozen Beverage segment sales
exceeded Q4 ’21 sales by 18.2%.
Gross profit as a percentage of sales was 28.9%
in Q4 ’22, compared favorably to 28.4% in Q4 ’21, and showed an
improving trend versus Q3 ‘22 despite the still significant
inflationary pressures facing our industry. Key ingredients
including flour, oils, eggs, meats, sugar and dairy continue to
experience inflation pressures, and were approximately 4% higher
than Q3 ’22 and 40% higher than Q4 ’21. Pricing actions implemented
earlier in fiscal 2022 along with a third price increase at the end
of Q4 ’22 combined with improved mix helped to partially offset
these headwinds and are expected to provide additional benefits in
future quarters.
Total operating expenses of $94.2 million
represented 23.5% of sales for the quarter, compared to 20.6% in Q4
’21, reflecting ongoing inflationary pressures across distribution
and administrative costs. Distribution costs represented 12.4% of
sales in the quarter, versus 10.1% in the prior year period, but
improved compared to 12.7% in Q3 ’22. Going forward, we expect our
strategic initiatives to improve logistics management and increase
efficiency across our distribution network and our supply chain
strategy will enable us to reduce cost and drive significant
savings over the coming quarters and years.
Marketing and selling expenses represented 6.4%
of sales, versus 6.5% in the prior year period, and 6.3% in Q3’ 22.
Administrative expenses were 4.3% of sales in Q4 ’22, compared to
3.6% in Q4 ’21 and 4.1% in Q3’ 22.
Adjusted operating income was $25.8 million in
the fourth quarter of fiscal 2022, compared to $27.6 million in the
prior year period, with the decrease driven by the continued
inflationary pressures, somewhat offset by growth across all three
of our business segments. This led to net earnings in Q4 ’22 of
$17.3 million, compared to $18.9 million in Q4 ’21. Our effective
tax rate was 19% in Q4 ’22. This lower tax rate in Q4 2022 had a
positive impact on our financial results for the quarter.
Total Company Fiscal 2022 Highlights
Net sales increased 20.6% to $1.381 billion for
full year fiscal 2022, versus full year fiscal 2021, reflecting
strong performance across the full year.Key highlights include:
- Food Service sales grew 20.4% in
fiscal 2022, compared to the prior year, led by frozen novelties,
which benefited from the Dippin’ Dots acquisition, as well as
churros, handhelds, pretzels, and bakery.
- Retail sales continued their strong
performance growing 7.1%, driven by soft pretzels and our frozen
novelties business, and offset by a decline in our handhelds
business.
- Frozen Beverages segment sales grew
32.1% as amusement, live event venues, convenience, restaurants,
and retail venues continued to see increasing visitation metrics
through-out the year, including the ongoing recovery in the theater
channel.
Gross profit as a percentage of sales improved
to 26.8% for fiscal 2022, compared to 26.1% for the prior year,
with the increase largely attributable to the benefit of increased
top-line demand, favorable product mix and corresponding margin
efficiencies.
Total operating expenses increased to 22.3% of
sales, compared to 19.9% for fiscal 2021 reflecting the significant
impact inflation is having across the majority of our cost line
items, including industry-wide freight and distribution cost
increases, wage increases and overall administrative cost hikes.
Distribution cost were 11.6% of sales for the year versus 9.5% in
the prior year period. Marketing and selling expenses were 6.6% of
sales, compared to 6.8% last year, driven by more effective
investment of marketing dollars aligned with new product launches
and rebranding of our core churros brand. Administrative expenses
were 4.0% of sales this year, compared to 3.5% last
year. Fiscal 2022
operating income decreased to $61.8 million, versus $71.2 million
for fiscal 2021, largely as the result of the aforementioned
inflation pressures on operating expenses.
Fiscal 2022 net earnings decreased to $47.2
million, compared to $55.6 million in fiscal 2021. Our effective
tax rate was 24% in fiscal 2022.
Food Services Segment Fourth Quarter
Highlights
- Q4 ’22 food service sales exceeded
Q4 ’21 by $58.0 million, or an increase of 29.2%, including
approximately $31.5 million in sales from the recent acquisition of
Dippin’ Dots.
- Outdoor venues, including stadiums
and amusement parks, as well as schools and restaurants and
strategic accounts continued to experience strong sales across all
of our product lines, including 228% increase frozen novelties
largely due to the acquisition of Dippin’ Dots, a 43.8% increase in
handhelds, a 38.4% increase in churros and a 10.8% and 2.8%
increase in bakery and soft pretzel sales, respectively, compared
to Q4 ‘21.
- Sales of new products were
approximately $4 million driven primarily by new bakery products,
expanded placement of a Bavarian pretzel stick and an empanada
product at major convenience customers.
- Q4 ’22 operating income decreased
31.8% to $6.3 million reflecting the significant increase in input,
production and distribution costs.
Retail Segment Fourth Quarter
Highlights
- Q4 ’22 retail sales increased 11.3%
to $53.5 million, compared to Q4 ’21.
- Soft pretzels sales grew by 29.5%,
compared to Q4 ’21, while handhelds sales grew by 25.5%, and frozen
novelty sales increased 6.6%. Biscuit sales decreased 14.8%, versus
the prior year period.
- New product innovation contributed
approximately $1.5 million in the quarter driven by the continued
success of the new Luigi’s gelato product and additional placement
of Dogsters skus at major grocery retailers.
- Operating income decreased 81.4% to
$1.1 million, versus the prior year period driven by higher cost of
goods sold and shipping and distribution related expenses.
Frozen Beverages Segment Fourth Quarter
Highlights
- Frozen beverage segment sales were
$90.2 million and beat Q4 ’21 sales by 18.2%.
- Beverage sales grew 19.5%, or $9.3
million higher than in Q4 ’21 led by improving trends at travel,
sporting events, concerts, amusement parks and theater venues.
- Machine Service revenues increased
11.8%, versus the prior year period reflecting healthy maintenance
call volumes, while equipment sales increased 30.4% driven by
strong growth from large QSR and convenience customers.
- Q4 ’22 operating income improved to
$14.2 million, compared to a Q4 ’21 operating income of $10.2
million, as strong sales drove leverage across the business.
Conference CallJ&J Snack
Foods Corp. will host a conference call to discuss results and
business outlook on November 15, 2022, at 10:00 a.m. Eastern Time.
Conference call participants should register by clicking on
this Registration Link to receive the dial-in number and
a personal PIN, which are required to access the conference call. A
live audio webcast of the conference call will also be available on
the Investors homepage at www.jjsnack.com.
About J & J Snack Foods
Corp. 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,
DIPPIN’ DOTS ice cream, 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. 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.
Cautionary Statement Regarding
Forward-Looking Information This press release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
regarding the Company’s expected future financial position, results
of operations, revenue growth and profit levels, cash flows,
business strategy, budgets, projected costs, capital expenditures,
products, competitive positions, growth opportunities, plans and
objectives of management for future operations, as well as
statements that include words such as “anticipate,” “if,”
“believe,” “plan,” “goals,” “estimate,” “expect,” “intend,” “may,”
“could,” “should,” “will,” and other similar expressions are
forward-looking statements. This includes, without limitation, our
statements and expectations regarding any current or future
recovery in our industry and our profitability-related continuous
improvement initiatives in our operations. Such forward-looking
statements are inherently uncertain, and readers must recognize
that actual results may differ materially from the expectations of
management. We do not undertake a duty to update such
forward-looking statements. Factors that may cause actual results
to differ materially from those in the forward-looking statements
include consumer spending, price competition, acceptance of new
products, the pricing and availability of raw materials,
transportation costs, changes in the competitive marketplace the
uncertainty and ultimate economic impact of the COVID-19 pandemic,
and other risks identified in our annual report on Form 10-K, and
our other filings with the Securities and Exchange Commission. Many
of these factors are outside of the Company’s control.
Non-GAAP Financial Measures
Adjusted EBITDA consists of net earnings adjusted to exclude:
income taxes (benefit); investment income; interest expense;
depreciation and amortization; share-based compensation expense;
COVID-19 related expenses (recoveries); net (gain) loss on sale or
disposal of assets; impairment charges, restructuring costs, merger
and acquisition costs, acquisition related inventory adjustments,
and integration costs.
Adjusted Operating Income consists of operating
income adjusted to exclude: COVID-19 related expenses (recoveries);
impairment charges, restructuring costs, merger and acquisition
costs, acquisition related amortization expenses and inventory
adjustments, and integration costs.
Adjusted Earnings per Diluted Share consists of
net earnings adjusted to exclude: COVID-19 related expenses
(recoveries); impairment charges, restructuring costs, merger and
acquisition costs, acquisition related amortization expenses and
inventory adjustment, and integration costs. For purposes of
comparability, the income tax effect of pre-tax adjustments is
determined using statutory tax rates.
This press release contains certain non-GAAP
financial measures; Adjusted EBITDA, Adjusted Operating Income, and
Adjusted Earnings per Diluted Share. A "non-GAAP financial measure"
is a numerical measure of a company's financial performance that
excludes or includes amounts so as to be different than the most
directly comparable measure calculated and presented in accordance
with U.S. generally accepted accounting principles ("GAAP") in the
statements of income, balance sheets, or statements of cash flow of
the company. Pursuant to applicable reporting requirements, the
company has provided reconciliations below of non-GAAP financial
measures to the most directly comparable GAAP measure.
The non-GAAP financial measures presented within
the Company's earnings release are not indicators of our financial
performance under GAAP and should not be considered as an
alternative to the applicable GAAP measure. These non-GAAP measures
have limitations as analytical tools, and you should not consider
them in isolation or as a substitute for analysis of our results as
reported under GAAP. In addition, in evaluating these non-GAAP
measures, you should be aware that in the future we may incur
income, expenses, gains and losses, similar to the adjustments in
this press release. Our presentation of these non-GAAP measures
should not be construed as an inference that our future results
will be unaffected by unusual or infrequent items. We compensate
for these limitations by providing equal prominence to our GAAP
results and using non-GAAP measures only as supplemental
presentations.
The non-GAAP measures presented are utilized by
management to evaluate the Company's business performance and
profitability by excluding certain items that may not be indicative
of our recurring core business operating results. The Company
believes that these measures provide additional clarity for
investors by excluding specific income, expenses, gains and losses,
in an effort to show comparable business operating results for the
periods presented. Similarly, Management believes these adjusted
measures are useful performance measures because certain items
included in the calculations may either mask or exaggerate trends
in the Company’s ongoing operating performance. See the
reconciliation of Non-GAAP Financial Measures below.
Investor Contact:Joseph
Jaffoni, Norberto Aja or Jennifer NeumanJCIR(212)
835-8500jjsf@jcir.com
J
& J SNACK FOODS CORP. AND
SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF
EARNINGS |
|
|
|
|
|
|
|
|
(in
thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
September
24, |
|
September
25, |
|
September
24, |
|
September
25, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
400,426 |
|
|
$ |
323,060 |
|
$ |
1,380,656 |
|
|
$ |
1,144,579 |
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
284,583 |
|
|
|
231,327 |
|
|
1,011,014 |
|
|
|
845,651 |
|
Gross Profit |
|
115,843 |
|
|
|
91,733 |
|
|
369,642 |
|
|
|
298,928 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Marketing |
|
25,691 |
|
|
|
20,927 |
|
|
91,636 |
|
|
|
77,922 |
|
Distribution |
|
49,816 |
|
|
|
32,654 |
|
|
159,637 |
|
|
|
108,297 |
|
Administrative |
|
17,377 |
|
|
|
11,534 |
|
|
55,189 |
|
|
|
40,538 |
|
Intangible asset impairment charges |
|
1,010 |
|
|
|
1,273 |
|
|
1,010 |
|
|
|
1,273 |
|
Other general expense (income) |
|
343 |
|
|
|
79 |
|
|
371 |
|
|
|
(320 |
) |
Total Operating Expenses |
|
94,237 |
|
|
|
66,467 |
|
|
307,843 |
|
|
|
227,710 |
|
|
|
|
|
|
|
|
|
Operating
Income |
|
21,606 |
|
|
|
25,266 |
|
|
61,799 |
|
|
|
71,218 |
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
Investment income |
|
443 |
|
|
|
396 |
|
|
980 |
|
|
|
2,815 |
|
Interest (expense) & other |
|
(794 |
) |
|
|
12 |
|
|
(1,025 |
) |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
Earnings
before |
|
|
|
|
|
|
|
income taxes |
|
21,255 |
|
|
|
25,674 |
|
|
61,754 |
|
|
|
74,026 |
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
3,945 |
|
|
|
6,799 |
|
|
14,519 |
|
|
|
18,419 |
|
|
|
|
|
|
|
|
|
NET EARNINGS |
$ |
17,310 |
|
|
$ |
18,875 |
|
$ |
47,235 |
|
|
$ |
55,607 |
|
|
|
|
|
|
|
|
|
Earnings per
diluted share |
$ |
0.90 |
|
|
$ |
0.98 |
|
$ |
2.46 |
|
|
$ |
2.91 |
|
|
|
|
|
|
|
|
|
Weighted
average number |
|
|
|
|
|
|
|
of diluted shares |
|
19,261 |
|
|
|
19,191 |
|
|
19,213 |
|
|
|
19,133 |
|
|
|
|
|
|
|
|
|
Earnings per
basic share |
$ |
0.90 |
|
|
$ |
0.99 |
|
$ |
2.47 |
|
|
$ |
2.92 |
|
|
|
|
|
|
|
|
|
Weighted
average number of |
|
|
|
|
|
|
|
basic shares |
|
19,199 |
|
|
|
19,072 |
|
|
19,148 |
|
|
|
19,013 |
|
|
|
|
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
(in
thousands, except share amounts) |
|
|
|
|
|
September
24, |
|
September
25, |
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
35,181 |
|
|
$ |
283,192 |
|
Marketable securities held to maturity |
|
4,011 |
|
|
|
7,980 |
|
Accounts receivable, net |
|
208,178 |
|
|
|
162,939 |
|
Inventories |
|
180,473 |
|
|
|
123,160 |
|
Prepaid expenses and other |
|
16,794 |
|
|
|
7,498 |
|
Total current assets |
|
444,637 |
|
|
|
584,769 |
|
|
|
|
|
Property,
plant and equipment, at cost |
|
860,050 |
|
|
|
757,242 |
|
Less accumulated depreciation |
|
|
|
and amortization |
|
524,683 |
|
|
|
490,055 |
|
Property, plant and equipment,
net |
|
335,367 |
|
|
|
267,187 |
|
|
|
|
|
Other
assets |
|
|
|
Goodwill |
|
184,420 |
|
|
|
121,833 |
|
Other intangible assets, net |
|
191,732 |
|
|
|
77,776 |
|
Marketable securities held to maturity |
|
- |
|
|
|
4,047 |
|
Marketable securities available for sale |
|
5,708 |
|
|
|
10,084 |
|
Operating lease right-of-use assets |
|
51,137 |
|
|
|
54,555 |
|
Other |
|
3,965 |
|
|
|
1,968 |
|
Total other assets |
|
436,962 |
|
|
|
270,263 |
|
Total Assets |
$ |
1,216,966 |
|
|
$ |
1,122,219 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current
Liabilities |
|
|
|
Current finance lease liabilities |
$ |
124 |
|
|
$ |
182 |
|
Accounts payable |
|
108,146 |
|
|
|
96,789 |
|
Accrued insurance liability |
|
15,678 |
|
|
|
16,260 |
|
Accrued liabilities |
|
9,214 |
|
|
|
10,955 |
|
Current operating lease liabilities |
|
13,524 |
|
|
|
13,395 |
|
Accrued compensation expense |
|
21,700 |
|
|
|
17,968 |
|
Dividends payable |
|
13,453 |
|
|
|
12,080 |
|
Total current liabilities |
|
181,839 |
|
|
|
167,629 |
|
|
|
|
|
Long-term
debt |
|
55,000 |
|
|
|
- |
|
Noncurrent
finance lease liabilities |
|
254 |
|
|
|
392 |
|
Noncurrent
operating lease liabilities |
|
42,660 |
|
|
|
46,557 |
|
Deferred
income taxes |
|
70,407 |
|
|
|
61,578 |
|
Other
long-term liabilities |
|
3,637 |
|
|
|
409 |
|
|
|
|
|
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 |
|
|
|
19,219,000 and 19,084,000 respectively |
|
94,026 |
|
|
|
73,597 |
|
Accumulated
other comprehensive loss |
|
(13,713 |
) |
|
|
(13,383 |
) |
Retained
Earnings |
|
782,856 |
|
|
|
785,440 |
|
Total stockholders' equity |
|
863,169 |
|
|
|
845,654 |
|
Total Liabilities and Stockholders' Equity |
$ |
1,216,966 |
|
|
$ |
1,122,219 |
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited)
(in thousands) |
|
|
|
|
|
|
|
Fiscal Year ended |
|
September
24, |
|
September
25, |
|
September
26, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
Operating
activities: |
|
|
|
|
|
Net earnings |
$ |
47,235 |
|
|
$ |
55,607 |
|
|
$ |
18,305 |
|
Adjustments
to reconcile net earnings to net cash provided by operating
activities |
|
|
|
|
|
Depreciation of fixed assets |
|
49,669 |
|
|
|
46,781 |
|
|
|
49,830 |
|
Amortization of intangibles and deferred
costs |
|
3,454 |
|
|
|
2,610 |
|
|
|
3,218 |
|
Intangible asset impairment charges |
|
1,010 |
|
|
|
1,273 |
|
|
|
- |
|
Losses (Gains) from disposals of property
& equipment |
|
220 |
|
|
|
(231 |
) |
|
|
(303 |
) |
Plant shutdown impairment costs |
|
- |
|
|
|
- |
|
|
|
6,387 |
|
Share-based compensation |
|
4,269 |
|
|
|
4,199 |
|
|
|
4,595 |
|
Deferred income taxes |
|
8,829 |
|
|
|
(2,896 |
) |
|
|
2,622 |
|
Loss (Gain) on marketable securities |
|
315 |
|
|
|
(1,026 |
) |
|
|
882 |
|
Other |
|
(95 |
) |
|
|
77 |
|
|
|
296 |
|
Changes in assets and liabilities, net of
effects from purchase of companies |
|
|
|
|
|
(Increase) decrease in
accounts receivable |
|
(32,778 |
) |
|
|
(35,755 |
) |
|
|
14,580 |
|
(Increase) decrease in
inventories |
|
(49,431 |
) |
|
|
(14,155 |
) |
|
|
7,877 |
|
(Increase) decrease in
prepaid expenses |
|
(9,343 |
) |
|
|
9,629 |
|
|
|
(11,366 |
) |
Decrease (increase) in
accounts payable and accrued liabilities |
|
2,708 |
|
|
|
35,386 |
|
|
|
(4,780 |
) |
Net cash provided by operating
activities |
|
26,062 |
|
|
|
101,499 |
|
|
|
92,143 |
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
Payments for purchases of companies, net of cash
acquired |
|
(221,301 |
) |
|
|
- |
|
|
|
(57,212 |
) |
Purchases of property, plant and equipment |
|
(87,291 |
) |
|
|
(53,578 |
) |
|
|
(57,817 |
) |
Purchases of marketable securities |
|
- |
|
|
|
- |
|
|
|
(6,103 |
) |
Proceeds from redemption and sales of marketable
securities |
|
12,026 |
|
|
|
60,891 |
|
|
|
73,226 |
|
Proceeds from disposal of property and equipment |
|
399 |
|
|
|
2,435 |
|
|
|
3,593 |
|
Other |
|
- |
|
|
|
191 |
|
|
|
(150 |
) |
Net cash (used in) provided by investing
activities |
|
(296,167 |
) |
|
|
9,939 |
|
|
|
(44,463 |
) |
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
Payments to repurchase common stock |
|
- |
|
|
|
- |
|
|
|
(8,972 |
) |
Proceeds from issuance of stock |
|
16,160 |
|
|
|
20,256 |
|
|
|
7,901 |
|
Borrowings under credit facility |
|
125,000 |
|
|
|
- |
|
|
|
- |
|
Repayment of borrowings under credit facility |
|
(70,000 |
) |
|
|
- |
|
|
|
- |
|
Payments for debt issue costs |
|
(225 |
) |
|
|
- |
|
|
|
- |
|
Payments on finance lease obligations |
|
(279 |
) |
|
|
(144 |
) |
|
|
(340 |
) |
Payment of cash dividend |
|
(48,437 |
) |
|
|
(44,785 |
) |
|
|
(42,053 |
) |
Net cash provided by (used in) financing
activities |
|
22,219 |
|
|
|
(24,673 |
) |
|
|
(43,464 |
) |
|
|
|
|
|
|
Effect of exchange rate on cash and cash
equivalents |
|
(125 |
) |
|
|
618 |
|
|
|
(802 |
) |
|
|
|
|
|
|
Net (decrease) increase in cash and cash
equivalents |
|
(248,011 |
) |
|
|
87,383 |
|
|
|
3,414 |
|
|
|
|
|
|
|
Cash
and cash equivalents at beginning of period |
|
283,192 |
|
|
|
195,809 |
|
|
|
192,395 |
|
|
|
|
|
|
|
Cash and
cash equivalents at end of period |
$ |
35,181 |
|
|
$ |
283,192 |
|
|
$ |
195,809 |
|
|
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS |
(Unaudited)
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
September
24, |
|
September
25, |
|
September
24, |
|
September
25, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to
External Customers: |
|
|
|
|
|
|
|
|
Food Service |
|
|
|
|
|
|
|
|
Soft pretzels |
|
$ |
56,124 |
|
|
$ |
54,618 |
|
|
$ |
205,752 |
|
|
$ |
174,977 |
|
Frozen novelties |
|
|
45,266 |
|
|
|
13,793 |
|
|
|
78,183 |
|
|
|
44,605 |
|
Churros |
|
|
25,692 |
|
|
|
18,558 |
|
|
|
88,242 |
|
|
|
64,916 |
|
Handhelds |
|
|
27,389 |
|
|
|
19,053 |
|
|
|
92,130 |
|
|
|
75,627 |
|
Bakery |
|
|
94,233 |
|
|
|
85,029 |
|
|
|
381,526 |
|
|
|
342,609 |
|
Other |
|
|
8,069 |
|
|
|
7,706 |
|
|
|
26,854 |
|
|
|
22,249 |
|
Total Food Service |
|
$ |
256,773 |
|
|
$ |
198,757 |
|
|
$ |
872,687 |
|
|
$ |
724,983 |
|
|
|
|
|
|
|
|
|
|
Retail Supermarket |
|
|
|
|
|
|
|
|
Soft pretzels |
|
$ |
18,283 |
|
|
$ |
14,119 |
|
|
$ |
61,925 |
|
|
$ |
54,990 |
|
Frozen novelties |
|
|
30,325 |
|
|
|
28,459 |
|
|
|
108,911 |
|
|
|
100,059 |
|
Biscuits |
|
|
4,671 |
|
|
|
5,480 |
|
|
|
24,695 |
|
|
|
24,197 |
|
Handhelds |
|
|
1,706 |
|
|
|
1,359 |
|
|
|
5,640 |
|
|
|
7,574 |
|
Coupon redemption |
|
|
(1,486 |
) |
|
|
(1,493 |
) |
|
|
(3,713 |
) |
|
|
(3,689 |
) |
Other |
|
|
(16 |
) |
|
|
114 |
|
|
|
485 |
|
|
|
1,766 |
|
Total Retail Supermarket |
|
$ |
53,483 |
|
|
$ |
48,038 |
|
|
$ |
197,943 |
|
|
$ |
184,897 |
|
|
|
|
|
|
|
|
|
|
Frozen Beverages |
|
|
|
|
|
|
|
|
Beverages |
|
$ |
57,144 |
|
|
$ |
47,836 |
|
|
$ |
184,063 |
|
|
$ |
124,498 |
|
Repair and |
|
|
|
|
|
|
|
|
maintenance service |
|
|
23,937 |
|
|
|
21,402 |
|
|
|
89,840 |
|
|
|
81,305 |
|
Machines revenue |
|
|
8,344 |
|
|
|
6,397 |
|
|
|
33,601 |
|
|
|
26,953 |
|
Other |
|
|
745 |
|
|
|
630 |
|
|
|
2,522 |
|
|
|
1,943 |
|
Total Frozen Beverages |
|
$ |
90,170 |
|
|
$ |
76,265 |
|
|
$ |
310,026 |
|
|
$ |
234,699 |
|
|
|
|
|
|
|
|
|
|
Consolidated
Sales |
|
$ |
400,426 |
|
|
$ |
323,060 |
|
|
$ |
1,380,656 |
|
|
$ |
1,144,579 |
|
|
|
|
|
|
|
|
|
|
Depreciation
and Amortization: |
|
|
|
|
|
|
|
|
Food Service |
|
$ |
9,371 |
|
|
$ |
6,404 |
|
|
$ |
29,807 |
|
|
$ |
26,738 |
|
Retail Supermarket |
|
|
379 |
|
|
|
524 |
|
|
|
1,536 |
|
|
|
1,671 |
|
Frozen Beverages |
|
|
5,306 |
|
|
|
4,089 |
|
|
|
21,780 |
|
|
|
20,982 |
|
Total
Depreciation and Amortization |
|
$ |
15,056 |
|
|
$ |
11,017 |
|
|
$ |
53,123 |
|
|
$ |
49,391 |
|
|
|
|
|
|
|
|
|
|
Operating
Income: |
|
|
|
|
|
|
|
|
Food Service |
|
$ |
6,335 |
|
|
$ |
9,294 |
|
|
$ |
18,512 |
|
|
$ |
39,172 |
|
Retail Supermarket |
|
|
1,071 |
|
|
|
5,747 |
|
|
|
9,487 |
|
|
|
25,914 |
|
Frozen Beverages |
|
|
14,200 |
|
|
|
10,225 |
|
|
|
33,800 |
|
|
|
6,132 |
|
Total
Operating Income |
|
$ |
21,606 |
|
|
$ |
25,266 |
|
|
$ |
61,799 |
|
|
$ |
71,218 |
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
Food Service |
|
$ |
15,981 |
|
|
$ |
12,643 |
|
|
$ |
61,738 |
|
|
$ |
38,558 |
|
Retail Supermarket |
|
|
2,447 |
|
|
|
94 |
|
|
|
8,885 |
|
|
|
288 |
|
Frozen Beverages |
|
|
4,632 |
|
|
|
6,385 |
|
|
|
16,668 |
|
|
|
14,732 |
|
Total
Capital Expenditures |
|
$ |
23,060 |
|
|
$ |
19,122 |
|
|
$ |
87,291 |
|
|
$ |
53,578 |
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
Food Service |
|
$ |
893,045 |
|
|
$ |
799,149 |
|
|
$ |
893,045 |
|
|
$ |
799,149 |
|
Retail Supermarket |
|
|
20,302 |
|
|
|
31,486 |
|
|
|
20,302 |
|
|
|
31,486 |
|
Frozen Beverages |
|
|
303,619 |
|
|
|
291,584 |
|
|
|
303,619 |
|
|
|
291,584 |
|
Total
Assets |
|
$ |
1,216,966 |
|
|
$ |
1,122,219 |
|
|
$ |
1,216,966 |
|
|
$ |
1,122,219 |
|
|
|
|
|
|
|
|
|
|
J
& J SNACK FOODS CORP. AND SUBSIDIARIES |
NON-GAAP
FINANCIAL MEASURES |
(Unaudited)
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
|
|
|
|
|
|
|
September
24, |
September
25, |
September
24, |
September
25, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Earnings to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Earnings |
|
$ |
17,310 |
|
|
$ |
18,875 |
|
|
$ |
47,235 |
|
|
$ |
55,607 |
|
Income Taxes |
|
|
3,945 |
|
|
|
6,799 |
|
|
|
14,519 |
|
|
|
18,419 |
|
Investment Income |
|
|
(443 |
) |
|
|
(396 |
) |
|
|
(980 |
) |
|
|
(2,815 |
) |
Interest Expense |
|
|
794 |
|
|
|
(12 |
) |
|
|
1,025 |
|
|
|
7 |
|
Depreciation and Amortization |
|
|
15,014 |
|
|
|
11,017 |
|
|
|
53,081 |
|
|
|
49,391 |
|
Share-Based Compensation |
|
|
785 |
|
|
|
947 |
|
|
|
4,269 |
|
|
|
4,199 |
|
Merger and Acquisition Costs |
|
|
- |
|
|
|
- |
|
|
|
3,088 |
|
|
|
- |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
154 |
|
|
|
(874 |
) |
|
|
2,102 |
|
Net (Gain) Loss on Sale or Disposal of
Assets |
|
|
170 |
|
|
|
(9 |
) |
|
|
220 |
|
|
|
(231 |
) |
Impairment Costs |
|
|
1,010 |
|
|
|
1,273 |
|
|
|
1,010 |
|
|
|
1,273 |
|
Acquisition Related Inventory
Adjustment |
|
|
1,203 |
|
|
|
- |
|
|
|
1,203 |
|
|
|
- |
|
Integration Costs |
|
|
272 |
|
|
|
- |
|
|
|
272 |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
40,060 |
|
|
$ |
38,648 |
|
|
$ |
124,068 |
|
|
$ |
127,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Operating Income to Adjusted
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
$ |
21,606 |
|
|
$ |
25,266 |
|
|
$ |
61,799 |
|
|
$ |
71,218 |
|
Merger and Acquisition Costs |
|
|
- |
|
|
|
- |
|
|
|
3,088 |
|
|
|
- |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
442 |
|
|
|
(874 |
) |
|
|
2,391 |
|
Impairment Costs |
|
|
1,010 |
|
|
|
1,273 |
|
|
|
1,010 |
|
|
|
1,273 |
|
Acquisition Related Amortization
Expenses |
|
|
1,679 |
|
|
|
630 |
|
|
|
3,454 |
|
|
|
2,521 |
|
Acquisition Related Inventory
Adjustment |
|
|
1,203 |
|
|
|
- |
|
|
|
1,203 |
|
|
|
- |
|
Integration Costs |
|
|
272 |
|
|
|
- |
|
|
|
272 |
|
|
|
- |
|
Adjusted Operating Income |
|
$ |
25,770 |
|
|
$ |
27,611 |
|
|
$ |
69,952 |
|
|
$ |
77,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Earnings per Diluted Share to
Adjusted Earnings per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Diluted Share |
|
$ |
0.90 |
|
|
$ |
0.98 |
|
|
$ |
2.46 |
|
|
$ |
2.91 |
|
Merger and Acquisition Costs |
|
|
- |
|
|
|
- |
|
|
|
0.16 |
|
|
|
- |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
0.02 |
|
|
|
(0.05 |
) |
|
|
0.12 |
|
Impairment Costs |
|
|
0.05 |
|
|
|
0.07 |
|
|
|
0.05 |
|
|
|
0.07 |
|
Acquisition Related Amortization
Expenses |
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.18 |
|
|
|
0.13 |
|
Acquisition Related Inventory
Adjustment |
|
|
0.06 |
|
|
|
- |
|
|
|
0.06 |
|
|
|
- |
|
Integration Costs |
|
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Tax Effect of Non-GAAP Adjustments (1) |
|
|
(0.06 |
) |
|
|
(0.03 |
) |
|
|
(0.11 |
) |
|
|
(0.09 |
) |
|
|
|
|
|
|
|
|
|
Adjusted Earnings per Diluted Share |
|
$ |
1.05 |
|
|
$ |
1.07 |
|
|
$ |
2.76 |
|
|
$ |
3.14 |
|
|
|
|
|
|
|
|
|
|
(1) Income taxes associated with pre-tax adjustments determined
using statutory tax rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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