J&J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today
reported financial results for the fourth quarter and full year
ended September 30, 2023.
|
Fourth Quarter |
Full-Year |
Actuals |
% v. LY |
Actuals |
% v. LY |
Net Sales |
$443.9M |
10.8% |
$1,558.8M |
12.9% |
Operating Income |
$41.7M |
93.0% |
$109.5M |
77.2% |
Net Earnings |
$30.4M |
75.7% |
$78.9M |
67.1% |
Earnings per Diluted Share |
$1.57 |
74.4% |
$4.08 |
65.9% |
|
|
|
|
|
Adjusted EBITDA |
$62.2M |
55.2% |
$181.6M |
46.3% |
Adjusted Earnings per Diluted Share |
$1.73 |
64.8% |
$4.50 |
63.0% |
This press release contains non-GAAP financial
measures. Please refer to the Non-GAAP Financial Measures section
below for reconciliations to the most comparable GAAP measures.
Dan Fachner, J&J Snack Foods President and
CEO, commented, “J&J Snack Foods ended fiscal 2023 on a strong
note, including record sales and profitability for both the fourth
quarter and full year. We achieved these results through the
dedicated efforts of our J&J employees across the business, as
well as the positive impact of various operational and strategic
initiatives we have undertaken over the past two years. Fiscal
fourth quarter net sales increased to a record $443.9 million,
driven by Food Services sales growth of 5.3%, Retail segment sales
growth of 21.2% and Frozen Beverages sales growth of 20.6%. In
addition, our work to improve profit margins continues to gain
momentum led by a 32.8% gross margin in the quarter and lower
distribution expenses. Operating income and adjusted EBITDA
increased 93.0% and 55.2%, respectively, for the fourth quarter and
77.2% and 46.3%, respectively for fiscal 2023.
“Diving deeper into our sales performance, we
are seeing marked success across our core brands, as pretzels,
churros and frozen novelties continue to post healthy growth on the
back of our initiatives to onboard new customers, bring new
products to market and improve the effectiveness of our brand
marketing. I am particularly pleased with Dippin’ Dots performance
in its first full year as a part of J&J’s portfolio. Dippin’
Dots achieved its highest sales and profitability in its history,
growing over 13% and 80% for the fiscal year, respectively, on the
back of our success in driving synergies, penetrating new sales
channels, and leveraging new products. Our Retail segment delivered
a strong fourth quarter, growing 21.2% driven by new placement of
SuperPretzel Bavarian sticks, pretzel dogs and pretzel bites, along
with our launch of Hola! Churros into retail. Our Frozen Novelty
business also continues to grow led by Luigi’s, Dogsters and Icee
sticks. In addition, our Frozen Beverage segment delivered record
fourth quarter and full year sales and profitability, as sales grew
20.6% in the quarter and 16.6% for the year. This was led by double
digit growth of beverage gallons for both the quarter and year as
our major sales channels including theaters, convenience,
amusement, mass merchandisers and restaurants, continued to show
healthy demand.
“In addition, we continue to successfully
execute our operational initiatives focused on continuous
improvement, production expansion and supply chain efficiencies
across the business. We now have two regional distribution centers
in operation, with a third scheduled to open in early calendar
2024. In addition, we have completed the implementation of six new
production lines creating additional production capacity in core
product categories such as pretzels, churros, and frozen novelties.
Together, these initiatives are improving how we operate, creating
cost efficiencies and positioning us for continued growth in both
sales and profitability.”
“As we look ahead to fiscal 2024, our momentum
remains strong, and we are aligned on a strategy that positions us
well for continued success. Our focus on cross-selling is creating
new product opportunities and channels, providing us the ability to
further leverage our product innovation capabilities and the
strength of our brands. We believe this momentum, together with
improved operational efficiencies positions J&J well to deliver
added value for our employees, partners, and shareholders.”
Fourth Quarter HighlightsNet
sales increased 10.8% to $443.9 million in Q4 of fiscal 2023,
compared to Q4 of fiscal 2022, marking the largest fourth quarter
sales performance in the Company’s history. Q4 2023
includes an extra week compared to prior years quarter and
contributed an estimated 6.8% to sales growth and approximately $2
million in operating profit.
Key highlights include:
- Achieved sales growth across all three business segments.
- Food Service sales exceeded Q4 ’22 by 5.3%.
- Retail segment sales exceeded Q4 ’22 by 21.2%.
- Frozen Beverage segment sales exceeded Q4 ’22 sales by
20.6%.
- Organic sales growth was mainly driven by growth across our
core brands and products, including pretzels, churros, frozen
novelties and frozen beverages.
- Sales included approximately $35.2 million in revenue from
Dippin’ Dots, which we report as a part of Frozen Novelties in the
Food Service segment. Dippin’ Dots sales exceeded Q4 ’22 sales by
11.7%.
Gross profit as a percentage of sales was 32.8%
in Q4 ’23, comparing favorably to 28.9% in Q4 ’22, reflecting
increased volume, improved product mix, aligned pricing, as well as
the stabilization of inflationary pressures on the back of historic
highs last year. Overall, we experienced deflation for the quarter
led by flour, oils, dairy, eggs, and meats. We continue to
experience double digit inflation in sugar/sweeteners.
Total operating expenses of $104.0 million
represented 23.4% of sales for the quarter, favorably comparing to
23.5% in Q4 ’22.
- Distribution costs represented 10.8% of sales in the quarter,
versus 12.4% in the prior year period, largely driven by an
improved inflationary environment and benefits of our strategic
initiatives to improve logistics management and increase efficiency
across our distribution network and supply chain.
- Marketing and selling expenses represented 7.0% of sales,
versus 6.4% in the prior year period, reflecting added promotional
and marketing support on our core brands and new products
launches.
- Administrative expenses were 5.0% of sales in Q4 ’23, compared
to 4.3% in Q4 ’22, with the year-over-year increase largely
attributable to higher performance-based bonus payments compared to
prior year and investments in capability.
Adjusted operating income was $45.8 million in
the fourth quarter of fiscal 2023, compared to $25.8 million in the
prior year period, with the increase driven by higher net sales,
390 bps improvement in gross margin rate and lower operating
expenses as a percentage of sales. This led to net earnings in Q4
’23 of $30.4 million, compared to $17.3 million in Q4 ’22. Our
effective tax rate was 27.0% in Q4
’23.
Fiscal 2023 HighlightsNet sales
increased 12.9% to $1.56 billion for full year fiscal 2023, versus
full year fiscal 2022, reflecting strong performance across all
three business segments for the full year. The fiscal 2023 year
includes an extra week compared to the prior year and contributed
an estimated 2.0% to sales growth and approximately $2 million in
operating profit.
Key highlights include:
- Food Service sales grew 12.5% in fiscal 2023, compared to the
prior year, led by frozen novelties, which benefited from the
Dippin’ Dots acquisition, as well as double-digit growth in
pretzels and churros. Bakery sales were relatively flat for the
year.
- Retail sales continued their strong performance growing 8.8%,
and was driven by growth in frozen novelties and handhelds,
slightly higher sales in biscuits offset by a small decline in
pretzels sales.
- Frozen Beverages segment sales grew 16.6%, driven by a 22.1%
increase in beverage sales and a 12.9% increase in equipment sales
led by strong momentum in theaters, along with continued growth in
amusement parks, convenience, restaurants, and retail venues.
Gross profit as a percentage of sales improved
to 30.1% for fiscal 2023, favorably comparing to 26.8% for the
prior year, with the increase largely attributable to the benefit
of increased top-line demand, favorable product mix, more aligned
pricing and cost, and targeted margin efficiencies.
Total operating expenses increased to 23.1% of
sales, compared to 22.3% for fiscal 2022 reflecting the addition of
a higher expense Dippin’ Dots business for a full year compared to
just a one quarter impact in fiscal 2022. Excluding this impact,
operating expenses as a percentage of sales decreased 40 bps
compared to the prior year.
- Distribution cost were 11.1% of sales for the year, versus
11.6% in the prior year period, reflecting the progress we continue
to make towards establishing a more efficient and effective
operational structure.
- Marketing and selling expenses were 7.1% of sales, compared to
6.6% last year, driven by more marketing dollars aligned with new
product launches and promoting our core brands.
- Administrative expenses were 4.8% of sales this year, compared
to 4.0% last year, reflecting higher performance-based bonus
payments compared to the prior year-period, the addition of Dippin’
Dots and investments in capability.
Fiscal 2023 operating income increased to $109.5
million, versus $61.8 million for fiscal 2022, largely as the
result of the continued top-line growth, 330 bps improvement in
gross margin rate, and 50 bps leverage for distribution
expenses.
Fiscal 2023 net earnings increased to $78.9
million, compared to $47.2 million in fiscal 2022. Our effective
tax rate was 26.6% in fiscal 2023, compared to 23.5% in the prior
year.
Food Services Segment Fourth Quarter
Highlights
- Q4 ’23 food service sales exceeded Q4 ’22 by $13.5 million to
$270.3 million, or an increase of 5.3%, including approximately
$35.2 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 our product lines, including a
14.6% increase in pretzels, 9.7% increase in frozen novelties, an
8.1% increase in churros, and a 2.2% increase in bakery. Handhelds
decreased 21.8% driven primarily by a contractual cost true-up
agreement. Volume sales for core food service handhelds increased
for the quarter.
- Q4 ’23 operating income increased 175.8% to $17.5 million
reflecting the top-line growth as well as the improvement in
margins and added leverage across our costs.
Retail Segment Fourth Quarter
Highlights
- Q4 ’23 retail sales increased 21.2% to $64.8 million, compared
to Q4 ’22.
- Handheld sales grew by 205.5%, while biscuit sales increased
32.0% and frozen novelty sales increased 16.7%, compared to Q4 ’22.
Soft pretzels sales grew by 6.7% versus the prior year period led
by the expanded placement of SuperPretzel Bavarian sticks, bites,
and mini dogs with several retail customers.
- New product innovation contributed approximately $3.5 million
in the quarter driven by new pretzel and frozen novelties products
at major grocery retailers and growth of handhelds with a major
customer.
- Operating income increased 237.0% to $3.6 million, versus the
prior year period driven by top-line growth as well as the
improvement in margins and added leverage across our costs.
Frozen Beverages Segment Fourth Quarter
Highlights
- Frozen beverage segment sales were $108.7 million and beat Q4
’22 sales by 20.6%.
- Beverage sales grew 24.8%, or $14.2 million higher than in Q4
’22 led by double digit volume growth and healthy consumer trends
across key channels including convenience, amusement parks, mass
merchants, restaurants and theaters.
- Machine Service revenues increased 6.0%, versus the prior year
period reflecting strong maintenance call volumes, while equipment
sales increased 33.2% driven by strong growth from new clients and
convenience customers.
- Q4 ’23 operating income improved to record $20.6 million,
compared to a Q4 ’22 operating income of $14.2 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 16, 2023, 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, HOLA! 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 the future impact of our operational
efficiency projects. 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 or similar health outbreaks, 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,
strategic business transformation costs, 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, strategic business transformation costs, 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 adjustments, strategic business transformation costs, 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 |
(Unaudited) |
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 24, |
|
September 30, |
|
September 24, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(14 weeks) |
|
(13 weeks) |
|
(53 weeks) |
|
(52 weeks) |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
443,863 |
|
|
$ |
400,426 |
|
|
$ |
1,558,829 |
|
|
$ |
1,380,656 |
|
Cost of goods sold |
|
|
298,119 |
|
|
|
284,583 |
|
|
|
1,088,964 |
|
|
|
1,011,014 |
|
Gross profit |
|
|
145,744 |
|
|
|
115,843 |
|
|
|
469,865 |
|
|
|
369,642 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Marketing |
|
|
31,234 |
|
|
|
25,691 |
|
|
|
110,258 |
|
|
|
91,636 |
|
Distribution |
|
|
48,082 |
|
|
|
49,816 |
|
|
|
172,804 |
|
|
|
159,637 |
|
Administrative |
|
|
22,375 |
|
|
|
17,377 |
|
|
|
75,425 |
|
|
|
55,189 |
|
Intangible asset impairment charges |
|
|
1,678 |
|
|
|
1,010 |
|
|
|
1,678 |
|
|
|
1,010 |
|
Other general expense |
|
|
672 |
|
|
|
343 |
|
|
|
182 |
|
|
|
371 |
|
Total operating expenses |
|
|
104,041 |
|
|
|
94,237 |
|
|
|
360,347 |
|
|
|
307,843 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
41,703 |
|
|
|
21,606 |
|
|
|
109,518 |
|
|
|
61,799 |
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
Investment income |
|
|
1,024 |
|
|
|
443 |
|
|
|
2,743 |
|
|
|
980 |
|
Interest expense |
|
|
(1,050 |
) |
|
|
(794 |
) |
|
|
(4,747 |
) |
|
|
(1,025 |
) |
|
|
|
|
|
|
|
|
|
Earnings before income taxes |
|
|
41,677 |
|
|
|
21,255 |
|
|
|
107,514 |
|
|
|
61,754 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
11,256 |
|
|
|
3,945 |
|
|
|
28,608 |
|
|
|
14,519 |
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
|
$ |
30,421 |
|
|
$ |
17,310 |
|
|
$ |
78,906 |
|
|
$ |
47,235 |
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share |
|
$ |
1.57 |
|
|
$ |
0.90 |
|
|
$ |
4.08 |
|
|
$ |
2.46 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of diluted shares |
|
|
19,398 |
|
|
|
19,261 |
|
|
|
19,324 |
|
|
|
19,213 |
|
|
|
|
|
|
|
|
|
|
Earnings per basic share |
|
$ |
1.58 |
|
|
$ |
0.90 |
|
|
$ |
4.10 |
|
|
$ |
2.47 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of basic shares |
|
|
19,306 |
|
|
|
19,199 |
|
|
|
19,257 |
|
|
|
19,148 |
|
|
|
|
|
|
|
|
|
|
J & J SNACK FOODS CORP. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(in thousands, except share amounts) |
|
|
|
|
|
September 30, |
|
September 24, |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
49,581 |
|
|
$ |
35,181 |
|
Marketable securities held to maturity |
|
- |
|
|
|
4,011 |
|
Accounts receivable, net |
|
198,129 |
|
|
|
208,178 |
|
Inventories |
|
171,539 |
|
|
|
180,473 |
|
Prepaid expenses and other |
|
10,963 |
|
|
|
16,794 |
|
Total current assets |
|
430,212 |
|
|
|
444,637 |
|
|
|
|
|
Property, plant and equipment, at cost |
|
|
|
Land |
|
3,684 |
|
|
|
3,714 |
|
Buildings |
|
45,538 |
|
|
|
34,232 |
|
Plant machinery and equipment |
|
445,299 |
|
|
|
374,566 |
|
Marketing equipment |
|
296,482 |
|
|
|
274,904 |
|
Transportation equipment |
|
14,367 |
|
|
|
11,685 |
|
Office equipment |
|
47,393 |
|
|
|
45,865 |
|
Improvements |
|
51,319 |
|
|
|
49,331 |
|
Construction in progress |
|
56,116 |
|
|
|
65,753 |
|
Total Property, plant and equipment, at cost |
|
960,198 |
|
|
|
860,050 |
|
Less accumulated depreciation and amortization |
|
574,295 |
|
|
|
524,683 |
|
Property, plant and equipment, net |
|
385,903 |
|
|
|
335,367 |
|
|
|
|
|
Other assets |
|
|
|
Goodwill |
|
185,070 |
|
|
|
184,420 |
|
Other intangible assets, net |
|
183,529 |
|
|
|
191,732 |
|
Marketable securities available for sale |
|
- |
|
|
|
5,708 |
|
Operating lease right-of-use assets |
|
88,868 |
|
|
|
51,137 |
|
Other |
|
3,654 |
|
|
|
3,965 |
|
Total other assets |
|
461,121 |
|
|
|
436,962 |
|
Total Assets |
$ |
1,277,236 |
|
|
$ |
1,216,966 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current Liabilities |
|
|
|
Current finance lease liabilities |
$ |
201 |
|
|
$ |
124 |
|
Accounts payable |
|
90,758 |
|
|
|
108,146 |
|
Accrued insurance liability |
|
15,743 |
|
|
|
15,678 |
|
Accrued liabilities |
|
14,214 |
|
|
|
9,214 |
|
Current operating lease liabilities |
|
16,478 |
|
|
|
13,524 |
|
Accrued compensation expense |
|
23,341 |
|
|
|
21,700 |
|
Dividends payable |
|
14,209 |
|
|
|
13,453 |
|
Total current liabilities |
|
174,944 |
|
|
|
181,839 |
|
|
|
|
|
Long-term debt |
|
27,000 |
|
|
|
55,000 |
|
Noncurrent finance lease liabilities |
|
600 |
|
|
|
254 |
|
Noncurrent operating lease liabilities |
|
77,631 |
|
|
|
42,660 |
|
Deferred income taxes |
|
81,310 |
|
|
|
70,407 |
|
Other long-term liabilities |
|
4,233 |
|
|
|
3,637 |
|
|
|
|
|
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 19,332,000 and 19,219,000 respectively |
|
114,556 |
|
|
|
94,026 |
|
Accumulated other comprehensive loss |
|
(10,166 |
) |
|
|
(13,713 |
) |
Retained Earnings |
|
807,128 |
|
|
|
782,856 |
|
Total stockholders' equity |
|
911,518 |
|
|
|
863,169 |
|
Total Liabilities and Stockholders' Equity |
$ |
1,277,236 |
|
|
$ |
1,216,966 |
|
|
|
|
|
J & J SNACK FOODS CORP. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
(in thousands) |
|
|
|
|
|
Fiscal year ended |
|
September 30, |
|
September 24, |
|
|
2023 |
|
|
|
2022 |
|
|
(53 weeks) |
|
(52 weeks) |
Operating activities: |
|
|
|
Net earnings |
$ |
78,906 |
|
|
$ |
47,235 |
|
Adjustments to reconcile net earnings to net cash provided by
operating activities |
|
|
|
Depreciation of fixed assets |
|
56,616 |
|
|
|
49,669 |
|
Amortization of intangibles and deferred costs |
|
6,525 |
|
|
|
3,454 |
|
Intangible asset impairment charges |
|
1,678 |
|
|
|
1,010 |
|
(Gains) Losses from disposals of property & equipment |
|
(409 |
) |
|
|
220 |
|
Share-based compensation |
|
5,318 |
|
|
|
4,269 |
|
Deferred income taxes |
|
10,935 |
|
|
|
8,829 |
|
(Gain) Loss on marketable securities |
|
(8 |
) |
|
|
315 |
|
Other |
|
323 |
|
|
|
(95 |
) |
Changes in assets and liabilities, net of effects from purchase of
companies |
|
|
|
Decrease (Increase) in accounts
receivable |
|
11,399 |
|
|
|
(32,778 |
) |
Decrease (Increase) in inventories |
|
9,475 |
|
|
|
(49,431 |
) |
Decrease (Increase) in prepaid expenses |
|
5,924 |
|
|
|
(9,343 |
) |
(Decrease) Increase in accounts payable and
accrued liabilities |
|
(14,403 |
) |
|
|
2,708 |
|
Net cash provided by operating activities |
|
172,279 |
|
|
|
26,062 |
|
|
|
|
|
Investing activities: |
|
|
|
Payments for purchases of companies, net of cash acquired |
|
- |
|
|
|
(221,301 |
) |
Purchases of property, plant and equipment |
|
(104,737 |
) |
|
|
(87,291 |
) |
Proceeds from redemption and sales of marketable securities |
|
9,716 |
|
|
|
12,026 |
|
Proceeds from disposal of property and equipment |
|
1,781 |
|
|
|
399 |
|
Net cash (used in) investing activities |
|
(93,240 |
) |
|
|
(296,167 |
) |
|
|
|
|
Financing activities: |
|
|
|
Proceeds from issuance of stock |
|
15,212 |
|
|
|
16,160 |
|
Borrowings under credit facility |
|
114,000 |
|
|
|
125,000 |
|
Repayment of borrowings under credit facility |
|
(142,000 |
) |
|
|
(70,000 |
) |
Payments for debt issuance costs |
|
- |
|
|
|
(225 |
) |
Payments on finance lease obligations |
|
(180 |
) |
|
|
(279 |
) |
Payment of cash dividend |
|
(53,877 |
) |
|
|
(48,437 |
) |
Net cash (used in) provided by financing activities |
|
(66,845 |
) |
|
|
22,219 |
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents |
|
2,206 |
|
|
|
(125 |
) |
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
14,400 |
|
|
|
(248,011 |
) |
Cash and cash equivalents at beginning of period |
|
35,181 |
|
|
|
283,192 |
|
Cash and cash equivalents at end of period |
$ |
49,581 |
|
|
$ |
35,181 |
|
|
|
|
|
J & J SNACK FOODS CORP. AND SUBSIDIARIES |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
(Unaudited) (in thousands) |
|
|
|
|
|
|
|
|
|
Quarter ended |
|
Fiscal year ended |
|
September 30, |
|
September 24, |
|
September 30, |
|
September 24, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(14 weeks) |
|
(13 weeks) |
|
(53 weeks) |
|
(52 weeks) |
Sales to external customers: |
|
|
|
|
|
|
|
Food Service |
|
|
|
|
|
|
|
Soft pretzels |
$ |
64,330 |
|
|
$ |
56,124 |
|
|
$ |
235,572 |
|
|
$ |
205,752 |
|
Frozen novelties |
|
49,643 |
|
|
|
45,266 |
|
|
|
145,425 |
|
|
|
78,183 |
|
Churros |
|
27,780 |
|
|
|
25,692 |
|
|
|
108,927 |
|
|
|
88,242 |
|
Handhelds |
|
21,408 |
|
|
|
27,389 |
|
|
|
82,292 |
|
|
|
92,130 |
|
Bakery |
|
96,319 |
|
|
|
94,233 |
|
|
|
378,149 |
|
|
|
381,526 |
|
Other |
|
10,802 |
|
|
|
8,069 |
|
|
|
31,475 |
|
|
|
26,854 |
|
Total Food Service |
$ |
270,282 |
|
|
$ |
256,773 |
|
|
$ |
981,840 |
|
|
$ |
872,687 |
|
|
|
|
|
|
|
|
|
Retail Supermarket |
|
|
|
|
|
|
|
Soft pretzels |
$ |
19,505 |
|
|
$ |
18,283 |
|
|
$ |
60,272 |
|
|
$ |
61,925 |
|
Frozen novelties |
|
35,384 |
|
|
|
30,325 |
|
|
|
115,807 |
|
|
|
108,911 |
|
Biscuits |
|
6,168 |
|
|
|
4,671 |
|
|
|
25,074 |
|
|
|
24,695 |
|
Handhelds |
|
5,212 |
|
|
|
1,706 |
|
|
|
16,655 |
|
|
|
5,640 |
|
Coupon redemption |
|
(1,625 |
) |
|
|
(1,486 |
) |
|
|
(2,561 |
) |
|
|
(3,713 |
) |
Other |
|
201 |
|
|
|
(16 |
) |
|
|
181 |
|
|
|
485 |
|
Total Retail Supermarket |
$ |
64,845 |
|
|
$ |
53,483 |
|
|
$ |
215,428 |
|
|
$ |
197,943 |
|
|
|
|
|
|
|
|
|
Frozen Beverages |
|
|
|
|
|
|
|
Beverages |
$ |
71,319 |
|
|
$ |
57,144 |
|
|
$ |
224,655 |
|
|
$ |
184,063 |
|
Repair and maintenance service |
|
25,385 |
|
|
|
23,937 |
|
|
|
95,941 |
|
|
|
89,840 |
|
Machines revenue |
|
11,116 |
|
|
|
8,344 |
|
|
|
37,933 |
|
|
|
33,601 |
|
Other |
|
916 |
|
|
|
745 |
|
|
|
3,032 |
|
|
|
2,522 |
|
Total Frozen Beverages |
$ |
108,736 |
|
|
$ |
90,170 |
|
|
$ |
361,561 |
|
|
$ |
310,026 |
|
|
|
|
|
|
|
|
|
Consolidated sales |
$ |
443,863 |
|
|
$ |
400,426 |
|
|
$ |
1,558,829 |
|
|
$ |
1,380,656 |
|
|
|
|
|
|
|
|
|
Depreciation and amortization: |
|
|
|
|
|
|
|
Food Service |
$ |
10,926 |
|
|
$ |
9,371 |
|
|
$ |
39,758 |
|
|
$ |
29,807 |
|
Retail Supermarket |
|
543 |
|
|
|
379 |
|
|
|
1,966 |
|
|
|
1,536 |
|
Frozen Beverages |
|
5,308 |
|
|
|
5,306 |
|
|
|
21,417 |
|
|
|
21,780 |
|
Total depreciation and amortization |
$ |
16,777 |
|
|
$ |
15,056 |
|
|
$ |
63,141 |
|
|
$ |
53,123 |
|
|
|
|
|
|
|
|
|
Operating Income: |
|
|
|
|
|
|
|
Food Service |
$ |
17,472 |
|
|
$ |
6,335 |
|
|
$ |
49,778 |
|
|
$ |
18,512 |
|
Retail Supermarket |
|
3,609 |
|
|
|
1,071 |
|
|
|
9,375 |
|
|
|
9,487 |
|
Frozen Beverages |
|
20,622 |
|
|
|
14,200 |
|
|
|
50,365 |
|
|
|
33,800 |
|
Total operating income |
$ |
41,703 |
|
|
$ |
21,606 |
|
|
$ |
109,518 |
|
|
$ |
61,799 |
|
|
|
|
|
|
|
|
|
Capital expenditures: |
|
|
|
|
|
|
|
Food Service |
$ |
20,767 |
|
|
$ |
15,981 |
|
|
$ |
79,388 |
|
|
$ |
61,738 |
|
Retail Supermarket |
|
- |
|
|
|
2,447 |
|
|
|
1,824 |
|
|
|
8,885 |
|
Frozen Beverages |
|
7,498 |
|
|
|
4,632 |
|
|
|
23,525 |
|
|
|
16,668 |
|
Total capital expenditures |
$ |
28,265 |
|
|
$ |
23,060 |
|
|
$ |
104,737 |
|
|
$ |
87,291 |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
Food Service |
$ |
903,518 |
|
|
$ |
893,045 |
|
|
$ |
903,518 |
|
|
$ |
893,045 |
|
Retail Supermarket |
|
34,232 |
|
|
|
20,302 |
|
|
|
34,232 |
|
|
|
20,302 |
|
Frozen Beverages |
|
339,486 |
|
|
|
303,619 |
|
|
|
339,486 |
|
|
|
303,619 |
|
Total assets |
$ |
1,277,236 |
|
|
$ |
1,216,966 |
|
|
$ |
1,277,236 |
|
|
$ |
1,216,966 |
|
|
|
|
|
|
|
|
|
J
& J SNACK FOODS CORP. AND SUBSIDIARIES |
NON-GAAP
FINANCIAL MEASURES |
(Unaudited)
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
Fiscal year ended |
|
|
September 30, |
|
September 24, |
|
September 30, |
|
September 24, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(14 weeks) |
|
(13 weeks) |
|
(53 weeks) |
|
(52 weeks) |
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Earnings to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings |
|
$ |
30,421 |
|
|
$ |
17,310 |
|
|
$ |
78,906 |
|
|
$ |
47,235 |
|
Income Taxes |
|
|
11,256 |
|
|
|
3,945 |
|
|
|
28,608 |
|
|
|
14,519 |
|
Investment Income |
|
|
(1,024 |
) |
|
|
(443 |
) |
|
|
(2,743 |
) |
|
|
(980 |
) |
Interest Expense |
|
|
1,050 |
|
|
|
794 |
|
|
|
4,747 |
|
|
|
1,025 |
|
Depreciation and Amortization |
|
|
16,777 |
|
|
|
15,014 |
|
|
|
63,161 |
|
|
|
53,081 |
|
Share-Based Compensation |
|
|
1,383 |
|
|
|
785 |
|
|
|
5,318 |
|
|
|
4,269 |
|
Merger and Acquisition Costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,088 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(874 |
) |
Net (Gain) Loss on Sale or Disposal of Assets |
|
|
(154 |
) |
|
|
170 |
|
|
|
(409 |
) |
|
|
220 |
|
Impairment Costs |
|
|
1,678 |
|
|
|
1,010 |
|
|
|
1,678 |
|
|
|
1,010 |
|
Acquisition Related Inventory Adjustment |
|
|
- |
|
|
|
1,203 |
|
|
|
- |
|
|
|
1,203 |
|
Strategic Business Transformation Costs(2) |
|
|
768 |
|
|
|
- |
|
|
|
1,719 |
|
|
|
- |
|
Integration Costs |
|
|
- |
|
|
|
272 |
|
|
|
570 |
|
|
|
272 |
|
Adjusted EBITDA |
|
$ |
62,155 |
|
|
$ |
40,060 |
|
|
$ |
181,555 |
|
|
$ |
124,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Operating Income to Adjusted
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
41,703 |
|
|
|
21,606 |
|
|
|
109,518 |
|
|
|
61,799 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(874 |
) |
Merger and Acquisition Costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,088 |
|
Impairment Costs |
|
|
1,678 |
|
|
|
1,010 |
|
|
|
1,678 |
|
|
|
1,010 |
|
Acquisition Related Amortization Expenses |
|
|
1,679 |
|
|
|
1,679 |
|
|
|
6,716 |
|
|
|
3,454 |
|
Acquisition Related Inventory Adjustment |
|
|
- |
|
|
|
1,203 |
|
|
|
- |
|
|
|
1,203 |
|
Strategic Business Transformation Costs(2) |
|
|
768 |
|
|
|
- |
|
|
|
1,719 |
|
|
|
- |
|
Integration Costs |
|
|
- |
|
|
|
272 |
|
|
|
570 |
|
|
|
272 |
|
Adjusted Operating Income |
|
$ |
45,828 |
|
|
$ |
25,770 |
|
|
$ |
120,201 |
|
|
$ |
69,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Earnings per Diluted Share to
Adjusted Earnings per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Diluted Share |
|
$ |
1.57 |
|
|
$ |
0.90 |
|
|
$ |
4.08 |
|
|
$ |
2.46 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.05 |
) |
Merger and Acquisition Costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.16 |
|
Impairment Costs |
|
|
0.09 |
|
|
|
0.05 |
|
|
|
0.09 |
|
|
|
0.05 |
|
Acquisition Related Amortization Expenses |
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.35 |
|
|
|
0.18 |
|
Acquisition Related Inventory Adjustment |
|
|
- |
|
|
|
0.06 |
|
|
|
- |
|
|
|
0.06 |
|
Strategic Business Transformation Costs(2) |
|
|
0.04 |
|
|
|
- |
|
|
|
0.09 |
|
|
|
- |
|
Integration Costs |
|
|
- |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
Tax Effect of Non-GAAP Adjustments (1) |
|
|
(0.06 |
) |
|
|
(0.06 |
) |
|
|
(0.14 |
) |
|
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
Adjusted Earnings per Diluted Share |
|
$ |
1.73 |
|
|
$ |
1.05 |
|
|
$ |
4.50 |
|
|
$ |
2.76 |
|
|
|
|
|
|
|
|
|
|
(1) Income taxes associated with pre-tax adjustments determined
using statutory tax rates |
(2) Strategic
business transformation costs are start-up costs related to our
regional distribution center supply chain transformation. |
|
|
|
|
|
|
|
|
|
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