J&J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today
reported financial results for the second quarter ended March 25,
2023.
|
|
Second Quarter |
Actuals |
$ v. LY |
% v. LY |
Net Sales |
$337.9M |
$56.3M |
20.0% |
Operating Income |
$10.2M |
$6.1M |
149.3% |
Net Earnings |
$6.9M |
$3.6M |
110.1% |
Earnings per Diluted Share |
$0.36 |
$0.19 |
111.8% |
|
|
|
|
Adjusted Operating Income |
$12.1M |
$7.4M |
157.7% |
Adjusted EBITDA |
$27.5M |
$9.5M |
52.5% |
Adjusted Earnings per Diluted Share |
$0.43 |
$0.24 |
126.5% |
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, “Our sales this fiscal quarter was the highest
second quarter sales in company history, and was driven by strong
demand across all three business segments. The quarter benefited
from marked improvement in unit volumes for our core brands and
products, including strong performances in soft pretzels, churros,
frozen novelties and frozen beverages. Higher volumes, combined
with the impact of price increases in fiscal 2022, resulted in a
20.0% increase in net sales to $337.9 million. Our Icee frozen
beverages segment delivered a strong quarter growing beverage sales
approximately 18% through expanded placement, new customers, and a
rebounding theater channel. In addition, we are beginning to
realize the benefits of our various operational initiatives,
resulting in improvement across a number of key performance metrics
including distribution expenses and gross margin. These
improvements combined with strong sales led to significant growth
in adjusted earnings per share.
“We continue to build momentum executing our
plans and initiatives to grow sales. Our teams are focused on
growing our core brands and product categories led by a more
disciplined innovation process, targeted marketing strategies and
improved execution of cross selling across our portfolio. As an
example, we expanded Dippin’ Dots into theaters, launched an Icee
Cherry’n Blue Raze Dippin’ Dots product, added the Icee and Slush
Puppie pop products to our frozen novelty portfolio, and initiated
the roll-out of our SuperPretzel filled knots which will benefit
both food service and retail customers. Across our three business
segments, we are gaining placement in key channels including
theaters, QSR, casual dining and retail, leading to market share
gains in our core products. We also continue to build momentum
around our Hola! Churros brand with sales up 43% in the quarter and
plans to launch this brand into retail later this year.
“While overall inflation has stabilized, we
continue to experience year over year pressures on key commodity
inputs such as flour, oils, eggs, mixes and sugar. We estimate
inflationary impacts of approximately 9% compared to a year ago as
commodity prices gradually improve. Despite these continued
challenges, we delivered improved gross margins benefiting from our
pricing action last year and initiatives to improve cost management
and productivity. Operationally, we continued to expand our
production capacity and now have five new automated lines
supporting growth opportunities in churros, pretzels, and frozen
novelties. In addition, we are implementing the geographic
optimization of our distribution and warehousing network by
consolidating to a handful of locations, including three new
state-of-the-art regional distribution centers. The first RDC will
open in June in Terrell, Texas while the other two are expected to
come online later this year and in early 2024. This aligns with
other strategic initiatives announced in fiscal 2022, including the
implementation of a new ERP system and outsourcing of our shipping
logistics. We expect that these combined initiatives position us
for sales growth, improved operational efficiency, reduced
distribution costs and an aligned platform to deliver incremental
profitability.
“Looking forward, we are excited about the
opportunities in front us. Our sales pipeline is strong, we have
the right strategy to improve our operating efficiency and a
talented team aligned against our key priorities. In addition, we
will continue to rely on our robust balance sheet to strategically
invest in attractive growth opportunities. We are doing the right
things and taking the right steps to profitably grow our market
share while creating added value for our employees, partners, and
shareholders.”
Total Company Second Quarter Highlights
Net sales increased 20.0% to $337.9 million in
Q2 of fiscal 2023, compared to Q2 of fiscal 2022.
Key highlights include:
- Sales grew across all three
business segments.
- Food Service sales exceeded Q2 ’22
by 23.8%.
- Retail segment sales exceeded Q2
’22 by 13.7%.
- Frozen Beverage segment sales
exceeded Q2 ’22 sales by 13.7%.
- Organic sales growth was driven by
our core brands and products, including soft pretzels, churros,
frozen novelties and frozen beverages.
- Sales included approximately $16.0
million in revenue from Dippin’ Dots, which we report in our food
service segment as frozen novelties.
Gross profit as a percentage of sales was 26.8%
in Q2 ’23, comparing favorably to 23.2% in Q2 ‘22. While inflation
trends are gradually improving, key ingredients including flour,
oils, eggs, meats, sugar, and dairy continue to experience
inflationary pressures compared to the same period last year, up
approximately 9% on average. Three pricing actions implemented in
fiscal 2022 along with the initial benefits of our operational
initiatives helped to partially offset these headwinds and we
expect for these benefits to further increase as we progress on our
goal towards achieving 30% gross margin levels.
Total operating expenses of $80.2 million
represented 23.7% of sales for the quarter, compared to 21.8% in Q2
’22, reflecting ongoing inflationary pressures across distribution
and administrative costs and the addition of Dippin’ Dots to our
expense base. Distribution costs represented 11.3% of sales in the
quarter, down sequentially from 12.0%, but up versus 10.1% in the
prior year period. We expect to reduce costs and drive significant
savings over the coming quarters as our various strategic and
operational initiatives have added impact on our logistics
management and operational efficiency.
Marketing and selling expenses represented 7.1%
of sales, versus 7.5% in the prior year period, and 6.7% in Q1’ 23.
Administrative expenses were 5.3% of sales in Q2 ’23, compared to
4.2% in Q2 ’22 and 4.7% in Q1’ 23 driven mostly by the expected
seasonal impact of Dippin’
Dots.
Adjusted operating income was $12.1 million in
the second quarter of fiscal 2023, compared to $4.7 million in the
prior year period, reflecting revenue growth across all three of
our business segments. This led to net earnings in Q2 ’23 of $6.9
million, compared to $3.3 million in Q2 ’22. Our effective tax rate
was 26% in Q2 ’23.
Food Services Segment Second Quarter
Highlights
- Q2 ’23 food service sales exceeded
Q2 ’22 by $41.9 million, or an increase of 23.8%, including
approximately $16.0 million in sales from Dippin’ Dots.
- Core brands and products continued
to experience revenue growth, including 28.3% growth in soft
pretzels, a 42.8% increase in churros and a 264.2% increase in
frozen novelties reflecting the acquisition of Dippin’ Dots.
Handheld and bakery sales were relatively flat, down 1.0% and up
1.6%, respectively, compared to Q2 ‘22.
- Sales of new products and expanded
customer placement were approximately $3.3 million driven primarily
by growth across SUPERPREZTZEL Bavarian sticks and a new bakery
product with a key strategic customer.
- Q2 ’23 operating income increased
857.6% to $5.1 million driven by stronger sales and improved gross
margin performance.
Retail Segment Second Quarter
Highlights
- Q2 ’23 retail sales increased 13.7%
to $46.4 million, compared to Q2 ’22.
- Handhelds sales grew by 283.4%,
compared to Q2 ’22, frozen novelty sales grew by 9.8%. Soft pretzel
sales increased 1.7% and biscuit sales increased 3.0%, versus the
prior year period.
- New product innovation and expanded
placement contributed approximately $2.5 million in the quarter led
by the recent launch of SUPERPRETZEL filled knots and handheld
expansion with a major retailer .
- Operating income decreased 55.4% to
$0.5 million, versus the prior year period, driven by gross margin
challenges due to higher promotions and allowances.
Frozen Beverages Segment Second Quarter
Highlights
- Frozen beverage segment sales were
$73.2 million, beating Q2 ’22 sales by 13.7%.
- Beverage sales grew 18.2%, or $6.4
million, compared to Q2 ’22 led by continued strong consumption
trends across travel, sporting events, retail, and amusement venues
and improved theater results.
- Machine repair and maintenance
service revenues increased 7.5%, versus the prior year period,
while equipment sales increased 9.4% on the back of healthy
customer installation volume.
- Q2 ’23 operating income improved to
$4.6 million, compared to a Q2 ’22 operating income of $2.5
million, reflecting the sales increase and leverage across the
business.
Conference CallJ&J Snack
Foods Corp. will host a conference call to discuss results and
business outlook on May 2, 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
transcript 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 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 |
(Unaudited) |
(in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
March
25, |
|
March
26, |
|
March
25, |
|
March
26, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
337,854 |
|
|
$ |
281,513 |
|
|
$ |
689,197 |
|
|
$ |
600,003 |
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
247,470 |
|
|
|
216,165 |
|
|
|
507,958 |
|
|
|
455,280 |
|
Gross profit |
|
90,384 |
|
|
|
65,348 |
|
|
|
181,239 |
|
|
|
144,723 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Marketing |
|
24,017 |
|
|
|
21,036 |
|
|
|
47,716 |
|
|
|
41,943 |
|
Distribution |
|
38,188 |
|
|
|
28,349 |
|
|
|
80,237 |
|
|
|
61,664 |
|
Administrative |
|
17,919 |
|
|
|
11,719 |
|
|
|
34,310 |
|
|
|
22,088 |
|
Other general expense |
|
67 |
|
|
|
156 |
|
|
|
(545 |
) |
|
|
95 |
|
Total operating expenses |
|
80,191 |
|
|
|
61,260 |
|
|
|
161,718 |
|
|
|
125,790 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
10,193 |
|
|
|
4,088 |
|
|
|
19,521 |
|
|
|
18,933 |
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
Investment income |
|
401 |
|
|
|
160 |
|
|
|
1,086 |
|
|
|
431 |
|
Interest expense |
|
(1,334 |
) |
|
|
(57 |
) |
|
|
(2,383 |
) |
|
|
(75 |
) |
|
|
|
|
|
|
|
|
Earnings
before income taxes |
|
9,260 |
|
|
|
4,191 |
|
|
|
18,224 |
|
|
|
19,289 |
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
2,389 |
|
|
|
920 |
|
|
|
4,720 |
|
|
|
4,927 |
|
|
|
|
|
|
|
|
|
NET EARNINGS |
$ |
6,871 |
|
|
$ |
3,271 |
|
|
$ |
13,504 |
|
|
$ |
14,362 |
|
|
|
|
|
|
|
|
|
Earnings per
diluted share |
$ |
0.36 |
|
|
$ |
0.17 |
|
|
$ |
0.70 |
|
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
Weighted
average number of diluted shares |
|
19,295 |
|
|
|
19,206 |
|
|
|
19,285 |
|
|
|
19,180 |
|
|
|
|
|
|
|
|
|
Earnings per
basic share |
$ |
0.36 |
|
|
$ |
0.17 |
|
|
$ |
0.70 |
|
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
Weighted
average number of basic shares |
|
19,238 |
|
|
|
19,134 |
|
|
|
19,230 |
|
|
|
19,110 |
|
|
|
|
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
(in
thousands, except share amounts) |
|
|
|
|
|
March
25, |
|
|
|
|
2023 |
|
|
September
24, |
|
(unaudited) |
|
|
2022 |
|
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
43,283 |
|
|
$ |
35,181 |
|
Marketable securities held to maturity |
|
- |
|
|
|
4,011 |
|
Accounts receivable, net |
|
198,442 |
|
|
|
208,178 |
|
Inventories |
|
180,721 |
|
|
|
180,473 |
|
Prepaid expenses and other |
|
12,062 |
|
|
|
16,794 |
|
Total current assets |
|
434,508 |
|
|
|
444,637 |
|
|
|
|
|
Property,
plant and equipment, at cost |
|
|
|
Land |
|
3,714 |
|
|
|
3,714 |
|
Buildings |
|
34,232 |
|
|
|
34,232 |
|
Plant machinery and equipment |
|
396,522 |
|
|
|
374,566 |
|
Marketing equipment |
|
284,509 |
|
|
|
274,904 |
|
Transportation equipment |
|
13,244 |
|
|
|
11,685 |
|
Office equipment |
|
46,355 |
|
|
|
45,865 |
|
Improvements |
|
49,733 |
|
|
|
49,331 |
|
Construction in progress |
|
79,808 |
|
|
|
65,753 |
|
Total Property, plant and equipment, at cost |
|
908,117 |
|
|
|
860,050 |
|
Less accumulated depreciation and amortization |
|
550,000 |
|
|
|
524,683 |
|
Property, plant and equipment, net |
|
358,117 |
|
|
|
335,367 |
|
|
|
|
|
Other
assets |
|
|
|
Goodwill |
|
185,070 |
|
|
|
184,420 |
|
Other intangible assets, net |
|
188,347 |
|
|
|
191,732 |
|
Marketable securities available for sale |
|
4,429 |
|
|
|
5,708 |
|
Operating lease right-of-use assets |
|
50,252 |
|
|
|
51,137 |
|
Other |
|
4,234 |
|
|
|
3,965 |
|
Total other assets |
|
432,332 |
|
|
|
436,962 |
|
Total Assets |
$ |
1,224,957 |
|
|
$ |
1,216,966 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current
Liabilities |
|
|
|
Current finance lease liabilities |
$ |
226 |
|
|
$ |
124 |
|
Accounts payable |
|
85,507 |
|
|
|
108,146 |
|
Accrued insurance liability |
|
16,831 |
|
|
|
15,678 |
|
Accrued liabilities |
|
10,448 |
|
|
|
9,214 |
|
Current operating lease liabilities |
|
13,507 |
|
|
|
13,524 |
|
Accrued compensation expense |
|
19,117 |
|
|
|
21,700 |
|
Dividends payable |
|
13,475 |
|
|
|
13,453 |
|
Total current liabilities |
|
159,111 |
|
|
|
181,839 |
|
|
|
|
|
Long-term
debt |
|
92,000 |
|
|
|
55,000 |
|
Noncurrent
finance lease liabilities |
|
702 |
|
|
|
254 |
|
Noncurrent
operating lease liabilities |
|
41,642 |
|
|
|
42,660 |
|
Deferred
income taxes |
|
69,602 |
|
|
|
70,407 |
|
Other
long-term liabilities |
|
3,613 |
|
|
|
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 19,252,000 and 19,219,000 respectively |
|
100,637 |
|
|
|
94,026 |
|
Accumulated
other comprehensive loss |
|
(11,774 |
) |
|
|
(13,713 |
) |
Retained
Earnings |
|
769,424 |
|
|
|
782,856 |
|
Total stockholders' equity |
|
858,287 |
|
|
|
863,169 |
|
Total Liabilities and Stockholders' Equity |
$ |
1,224,957 |
|
|
$ |
1,216,966 |
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited)
(in thousands) |
|
|
|
|
|
Six months ended |
|
March
25, |
|
March
26, |
|
|
2023 |
|
|
|
2022 |
|
Operating activities: |
|
|
|
Net earnings |
$ |
13,504 |
|
|
$ |
14,362 |
|
Adjustments to reconcile net earnings to net cash provided by
operating activities |
|
|
|
Depreciation of fixed assets |
|
27,236 |
|
|
|
23,868 |
|
Amortization of intangibles and deferred costs |
|
3,385 |
|
|
|
1,183 |
|
(Gain) loss from disposals of property & equipment |
|
(354 |
) |
|
|
100 |
|
Share-based compensation |
|
2,552 |
|
|
|
2,350 |
|
Deferred income taxes |
|
(787 |
) |
|
|
(251 |
) |
(Gain) loss on marketable securities |
|
(22 |
) |
|
|
69 |
|
Other |
|
(255 |
) |
|
|
(184 |
) |
Changes in assets and liabilities, net of effects from purchase of
companies |
|
|
|
Decrease (Increase) in accounts receivable |
|
10,541 |
|
|
|
(25,031 |
) |
Decrease (Increase) in inventories |
|
823 |
|
|
|
(36,538 |
) |
Decrease (Increase) in prepaid expenses |
|
4,787 |
|
|
|
(4,308 |
) |
(Decrease) in accounts payable and accrued liabilities |
|
(25,739 |
) |
|
|
(2,055 |
) |
Net cash provided by (used in) operating activities |
|
35,671 |
|
|
|
(26,435 |
) |
|
|
|
|
Investing activities: |
|
|
|
Purchases of property, plant and equipment |
|
(49,124 |
) |
|
|
(35,306 |
) |
Proceeds from redemption and sales of marketable securities |
|
5,300 |
|
|
|
11,526 |
|
Proceeds from disposal of property and equipment |
|
797 |
|
|
|
589 |
|
Net cash (used in) investing activities |
|
(43,027 |
) |
|
|
(23,191 |
) |
|
|
|
|
Financing activities: |
|
|
|
Proceeds from issuance of stock |
|
4,059 |
|
|
|
11,741 |
|
Borrowings under credit facility |
|
92,000 |
|
|
|
- |
|
Repayment of borrowings under credit facility |
|
(55,000 |
) |
|
|
- |
|
Payments on finance lease obligations |
|
(71 |
) |
|
|
(111 |
) |
Payment of cash dividend |
|
(26,914 |
) |
|
|
(24,163 |
) |
Net cash provided by (used in) financing activities |
|
14,074 |
|
|
|
(12,533 |
) |
|
|
|
|
Effect of
exchange rates on cash and cash equivalents |
|
1,384 |
|
|
|
(16 |
) |
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
8,102 |
|
|
|
(62,175 |
) |
Cash and
cash equivalents at beginning of period |
|
35,181 |
|
|
|
283,192 |
|
Cash and
cash equivalents at end of period |
$ |
43,283 |
|
|
$ |
221,017 |
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS |
(Unaudited)
(in thousands) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
March
25, |
|
March
26, |
|
March
25, |
|
March
26, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(unaudited) |
|
(unaudited) |
|
(in
thousands) |
|
(in
thousands) |
Sales to
external customers: |
|
|
|
|
|
|
|
Food Service |
|
|
|
|
|
|
|
Soft pretzels |
$ |
55,492 |
|
|
$ |
43,261 |
|
|
$ |
107,715 |
|
|
$ |
93,682 |
|
Frozen novelties |
|
26,607 |
|
|
|
7,305 |
|
|
|
48,372 |
|
|
|
15,762 |
|
Churros |
|
24,920 |
|
|
|
17,447 |
|
|
|
50,677 |
|
|
|
36,936 |
|
Handhelds |
|
20,309 |
|
|
|
20,506 |
|
|
|
43,881 |
|
|
|
39,001 |
|
Bakery |
|
85,300 |
|
|
|
83,967 |
|
|
|
194,248 |
|
|
|
191,798 |
|
Other |
|
5,653 |
|
|
|
3,854 |
|
|
|
11,685 |
|
|
|
10,893 |
|
Total Food Service |
$ |
218,281 |
|
|
$ |
176,340 |
|
|
$ |
456,578 |
|
|
$ |
388,072 |
|
|
|
|
|
|
|
|
|
Retail Supermarket |
|
|
|
|
|
|
|
Soft pretzels |
$ |
16,013 |
|
|
$ |
15,752 |
|
|
$ |
30,498 |
|
|
$ |
31,946 |
|
Frozen novelties |
|
20,770 |
|
|
|
18,919 |
|
|
|
38,739 |
|
|
|
36,721 |
|
Biscuits |
|
5,858 |
|
|
|
5,687 |
|
|
|
13,771 |
|
|
|
13,958 |
|
Handhelds |
|
4,099 |
|
|
|
1,069 |
|
|
|
6,991 |
|
|
|
2,345 |
|
Coupon redemption |
|
(375 |
) |
|
|
(726 |
) |
|
|
(551 |
) |
|
|
(1,622 |
) |
Other |
|
(5 |
) |
|
|
56 |
|
|
|
(15 |
) |
|
|
104 |
|
Total Retail Supermarket |
$ |
46,360 |
|
|
$ |
40,757 |
|
|
$ |
89,433 |
|
|
$ |
83,452 |
|
|
|
|
|
|
|
|
|
Frozen Beverages |
|
|
|
|
|
|
|
Beverages |
$ |
41,799 |
|
|
$ |
35,365 |
|
|
$ |
80,458 |
|
|
$ |
69,128 |
|
Repair and maintenance service |
|
22,585 |
|
|
|
21,000 |
|
|
|
46,412 |
|
|
|
43,011 |
|
Machines revenue |
|
8,252 |
|
|
|
7,542 |
|
|
|
15,263 |
|
|
|
15,389 |
|
Other |
|
577 |
|
|
|
509 |
|
|
|
1,053 |
|
|
|
951 |
|
Total Frozen Beverages |
$ |
73,213 |
|
|
$ |
64,416 |
|
|
$ |
143,186 |
|
|
$ |
128,479 |
|
|
|
|
|
|
|
|
|
Consolidated
sales |
$ |
337,854 |
|
|
$ |
281,513 |
|
|
$ |
689,197 |
|
|
$ |
600,003 |
|
|
|
|
|
|
|
|
|
Depreciation
and amortization: |
|
|
|
|
|
|
|
Food Service |
$ |
9,597 |
|
|
$ |
6,670 |
|
|
$ |
19,055 |
|
|
$ |
13,339 |
|
Retail Supermarket |
|
492 |
|
|
|
386 |
|
|
|
883 |
|
|
|
752 |
|
Frozen Beverages |
|
5,351 |
|
|
|
5,484 |
|
|
|
10,683 |
|
|
|
10,960 |
|
Total
depreciation and amortization |
$ |
15,440 |
|
|
$ |
12,540 |
|
|
$ |
30,621 |
|
|
$ |
25,051 |
|
|
|
|
|
|
|
|
|
Operating
Income: |
|
|
|
|
|
|
|
Food Service |
$ |
5,133 |
|
|
$ |
536 |
|
|
$ |
11,520 |
|
|
$ |
9,537 |
|
Retail Supermarket |
|
487 |
|
|
|
1,091 |
|
|
|
1,598 |
|
|
|
6,075 |
|
Frozen Beverages |
|
4,573 |
|
|
|
2,461 |
|
|
|
6,403 |
|
|
|
3,321 |
|
Total
operating income |
$ |
10,193 |
|
|
$ |
4,088 |
|
|
$ |
19,521 |
|
|
$ |
18,933 |
|
|
|
|
|
|
|
|
|
Capital
expenditures: |
|
|
|
|
|
|
|
Food Service |
$ |
13,744 |
|
|
$ |
13,851 |
|
|
$ |
38,606 |
|
|
$ |
24,084 |
|
Retail Supermarket |
|
105 |
|
|
|
1,094 |
|
|
|
1,479 |
|
|
|
3,623 |
|
Frozen Beverages |
|
4,365 |
|
|
|
4,261 |
|
|
|
9,039 |
|
|
|
7,599 |
|
Total
capital expenditures |
$ |
18,214 |
|
|
$ |
19,206 |
|
|
$ |
49,124 |
|
|
$ |
35,306 |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
Food Service |
$ |
910,573 |
|
|
$ |
799,710 |
|
|
$ |
910,573 |
|
|
$ |
799,710 |
|
Retail Supermarket |
|
12,162 |
|
|
|
33,206 |
|
|
|
12,162 |
|
|
|
33,206 |
|
Frozen Beverages |
|
302,222 |
|
|
|
290,412 |
|
|
|
302,222 |
|
|
|
290,412 |
|
Total
assets |
$ |
1,224,957 |
|
|
$ |
1,123,328 |
|
|
$ |
1,224,957 |
|
|
$ |
1,123,328 |
|
|
|
|
|
|
|
|
|
J
& J SNACK FOODS CORP. AND SUBSIDIARIES |
NON-GAAP
FINANCIAL MEASURES |
(Unaudited)
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
|
|
|
|
|
|
|
March
25, |
|
March
26, |
|
March
25, |
|
March
26, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Earnings to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Earnings |
|
$ |
6,871 |
|
|
$ |
3,271 |
|
|
$ |
13,504 |
|
|
$ |
14,362 |
|
Income Taxes |
|
|
2,389 |
|
|
|
920 |
|
|
|
4,720 |
|
|
|
4,927 |
|
Investment Income |
|
|
(401 |
) |
|
|
(160 |
) |
|
|
(1,086 |
) |
|
|
(431 |
) |
Interest Expense |
|
|
1,334 |
|
|
|
57 |
|
|
|
2,383 |
|
|
|
75 |
|
Depreciation and Amortization |
|
|
15,440 |
|
|
|
12,540 |
|
|
|
30,621 |
|
|
|
25,051 |
|
Share-Based Compensation |
|
|
1,313 |
|
|
|
1,267 |
|
|
|
2,552 |
|
|
|
2,350 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(874 |
) |
Net (Gain) Loss on Sale or Disposal of Assets |
|
|
357 |
|
|
|
127 |
|
|
|
(354 |
) |
|
|
100 |
|
Integration Costs |
|
|
188 |
|
|
|
- |
|
|
|
417 |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
27,491 |
|
|
$ |
18,022 |
|
|
$ |
52,757 |
|
|
$ |
45,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Operating Income to Adjusted
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
|
10,193 |
|
|
|
4,088 |
|
|
|
19,521 |
|
|
|
18,933 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(874 |
) |
Acquisition Related Amortization Expenses |
|
|
1,679 |
|
|
|
592 |
|
|
|
3,358 |
|
|
|
1,184 |
|
Integration Costs |
|
|
188 |
|
|
|
- |
|
|
|
417 |
|
|
|
- |
|
Adjusted Operating Income |
|
$ |
12,060 |
|
|
$ |
4,680 |
|
|
$ |
23,296 |
|
|
$ |
19,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Earnings per Diluted Share to
Adjusted Earnings per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Diluted Share |
|
$ |
0.36 |
|
|
$ |
0.17 |
|
|
$ |
0.70 |
|
|
$ |
0.75 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.05 |
) |
Acquisition Related Amortization Expenses |
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.17 |
|
|
|
0.06 |
|
Integration Costs |
|
|
0.01 |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Tax Effect of Non-GAAP Adjustments (1) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
(0.05 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings per Diluted Share |
|
$ |
0.43 |
|
|
$ |
0.19 |
|
|
$ |
0.84 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
(1) Income taxes
associated with pre-tax adjustments determined using statutory tax
rates |
J and J Snack Foods (NASDAQ:JJSF)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
J and J Snack Foods (NASDAQ:JJSF)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024