J&J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today
reported financial results for the third quarter ended June 24,
2023.
|
|
Third Quarter |
Actuals |
$ LY |
% v. LY |
Net Sales |
$425.8M |
$380.2M |
12.0% |
Operating Income |
$48.3M |
$21.3M |
127.2% |
Net Earnings |
$35.0M |
$15.6M |
124.8% |
Earnings per Diluted Share |
$1.81 |
$0.81 |
123.5% |
|
|
|
|
Adjusted Operating Income |
$51.1M |
$24.9M |
104.8% |
Adjusted EBITDA |
$66.6M |
$38.4M |
73.3% |
Adjusted Earnings per Diluted Share |
$1.92 |
$0.95 |
102.1% |
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, “I would like to thank our employees for delivering
a record third quarter as our business continues to build sales and
profit momentum across all three of our business segments. Our
results showcase the positive impact of the various operational and
strategic initiatives undertaken over the past two years combined
with an improving inflationary environment. Net sales grew by
double digits to $425.8 million driven by Food Services sales
growth of 11.9% and Frozen Beverages sales growth of 20.0%. Our
Frozen Beverages business delivered record sales and profits for
the quarter led by a recovering theater industry and strong gross
margin performance. Company operating income grew 127.2% in the
quarter, led by an improvement in gross margins to 33.6% and lower
distribution expenses.”
“Our gross margin initiatives and strategies are
starting to gain momentum helping us to drive improved
profitability. Like most of our industry, we are beginning to see
cost inflation stabilize for most ingredients, except for
sugar/sweeteners and mixes. In addition, we are seeing margin mix
improvement led by our investments and focus on growing core
products, including churro’s, pretzels, frozen beverages, and
frozen novelties. Pricing actions are now better aligned with cost,
and we are achieving added efficiency across our manufacturing
plants. The team is successfully executing on cross-selling
opportunities, including Dippin’ Dots ICEE Cherry ‘n Blue Razz and
gaining placement in new channels. In the fourth quarter, we will
be launching SuperPretzel Bavarian sticks, SuperPretzel mini-dogs
and Hola! Churro’s into retail and leveraging our cross-selling
opportunities to grow Dippin’ Dots into theaters as we further
leverage our portfolio of products and brands to grow across
channels and create new snacking occasions. We believe these
improving gross margin trends combined with a strong sales plan
across our three business segments has us well positioned for
continued growth.”
“Operationally, our teams have been diligently
working to improve performance across all facets of our business.
As previously mentioned, we are transforming how we manage product
through our warehouses and ship to customers. A key strategy in
this transformation is the build-out of three geographically
positioned regional distribution centers. The first of these RDCs
recently opened in Terrell, Texas in June and the other two
locations are scheduled to open later this calendar year and in
early 2024. These initiatives will simplify our logistics network
by moving from over thirty warehouse locations to less than 10,
resulting in improved customer service and lower distribution cost.
We have fully transitioned management of shipping and distribution
logistics to a third party who specializes in distribution and
logistics, helping us more efficiently and effectively operate our
logistics network. In addition, we have fully rolled out six
state-of-the-art production lines adding capacity to support growth
in key core product categories such as pretzels, churros and frozen
novelties.”
“Looking forward, we are excited about the
opportunities in front of us and confident in our ability to create
added value for shareholders. We have a strong leadership team and
benefit from the tremendous commitment and talent of our people. We
have the right strategy to grow this business supported by aligned
initiatives across sales, marketing, operations, and supply chain.
We believe our initiatives are working and positioning us for
continued growth. This momentum, along with the health of our
business, balance sheet and liquidity position, gives us confidence
that we are on the right path to continue to deliver strong
results.”
Total Company Third Quarter Highlights
Net sales increased 12.0% to $425.8 million in
Q3 of fiscal 2023, compared to Q3 of fiscal 2022.
Key highlights include:
- Sales grew across all three
business segments.
- Food Service sales exceeded Q3 ’22
by 11.9%.
- Retail segment sales exceeded Q3
’22 by 0.2%.
- Frozen Beverage segment sales
exceeded Q3 ’22 sales by 20.0%.
- Organic sales growth was mainly
driven by our core brands and products, including soft pretzels,
churros, frozen novelties and frozen beverages.
- Sales included approximately $29.2
million in incremental revenue from Dippin’ Dots, which we report
under Food Services segment as Frozen Novelties.
Gross profit as a percentage of sales was 33.6%
in Q3 ’23, comparing favorably to 28.7% in Q3’22, reflecting our
pricing actions and a better product mix as well as the
stabilization of inflationary pressures on the back of historic
highs last year. Overall, we experienced low single digit inflation
for the quarter. The cost of key ingredients including flour, oils,
dairy and meats have declined, though we are still experiencing
double-digit inflation in sugar/sweeteners and mixes, which
continues to impact products such as frozen novelties and
churros.
Total operating expenses of $94.6 million
represented 22.2% of sales for the quarter, compared to 23.1% in Q3
’22. Distribution costs were 10.4% of sales in the quarter, down
sequentially from 11.3%, and much improved from 12.7% in the prior
year period. Our supply chain transformation initiatives, along
with declining diesel prices and carrier costs, are starting to
drive improvements in shipping efficiency, cost per truck, and cost
per pound.
Marketing and selling expenses represented 7.4%
of sales, versus 6.3% in the prior year period, and 7.1% in Q2’ 23
and were driven primarily by the timing of spend for tradeshows and
sponsorships. Administrative expenses were 4.4% of sales in Q3 ’23,
compared to 4.1% in Q3 ’22 and 5.3% in Q2’ 23, driven mostly by the
expected seasonal impact of Dippin’
Dots.
Adjusted operating income was $51.1 million in
the third quarter of fiscal 2023, compared to $24.9 million in the
prior year period, reflecting revenue growth and improved operating
margins across all three of our business segments. This led to net
earnings in Q3 ’23 of $35.0 million, compared to $15.6 million in
Q3 ’22. Our effective tax rate was 26.5% in Q3 ’23.
Food Services Segment Third Quarter
Highlights
- Q3 ’23 food service sales exceeded
Q3’22 by $27.1 million, or an increase of 11.9%, including
approximately $29.2 million in incremental sales from Dippin’
Dots.
- Core brands and products continued
to experience revenue growth, including 176.4% growth in frozen
novelties, reflecting the acquisition of Dippin’ Dots, a 19.0%
increase in churros and a 13.6% increase in soft pretzels. Handheld
sales were down 33.9%, while bakery sales were down 8.3%, compared
to Q3 ‘22.
- Sales of new products and expanded
customer placement were approximately $0.4 million, driven
primarily by bakery products at a major convenience store
customer.
- Q3 ’23 operating income increased
687.3% to $20.8 million, largely driven by stronger sales, improved
gross margin performance and distribution expenses.
Retail Segment Third Quarter
Highlights
- Q3 ’23 retail sales increased 0.2%
to $61.2 million, compared to Q3 ’22.
- Handhelds sales grew by 180.2%,
compared to Q3 ’22, while frozen novelty, soft pretzel and biscuit
sales declined by 0.4%, 12.2% and 15.3%, respectively, versus the
prior year period.
- New product innovation and expanded
placement contributed approximately $3.5 million in the quarter led
by handheld sales to a major mass merchandiser and a frozen novelty
item with grocery customer.
- Operating income improved by 78.0%
to $4.2 million, versus the prior year period, driven by improved
distribution expenses.
Frozen Beverages Segment Third Quarter
Highlights
- Frozen beverage segment sales were
$109.6 million, a 20.0% increase, compared to Q3 ’22.
- Beverage sales grew 26.1%, or $15.1
million, compared to Q3 ’22, led by 9% growth in gallons reflecting
strong theater performance and continued strong consumption trends
across mass merchants and amusement venues.
- Machine repair and maintenance
service revenues increased 5.5%, versus the prior year period
reflecting healthy ongoing maintenance business, while equipment
sales increased 17.1% on the back of growing installations with new
clients.
- Q3 ’23 operating income improved to
$23.3 million, compared to a Q3 ’22 operating income of $16.3
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 August 1, 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,
macro-economic factors, 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,
integration costs, and strategic business transformation 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, integration costs, and strategic business
transformation 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, integration costs, and strategic business
transformation 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
or Norberto AjaJCIR(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 |
|
Nine months ended |
|
June
24, |
|
June
25, |
|
June
24, |
|
June
25, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
425,769 |
|
|
$ |
380,227 |
|
|
$ |
1,114,966 |
|
|
$ |
980,230 |
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
282,887 |
|
|
|
271,151 |
|
|
|
790,845 |
|
|
|
726,431 |
|
Gross profit |
|
142,882 |
|
|
|
109,076 |
|
|
|
324,121 |
|
|
|
253,799 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Marketing |
|
31,308 |
|
|
|
24,002 |
|
|
|
79,024 |
|
|
|
65,945 |
|
Distribution |
|
44,485 |
|
|
|
48,157 |
|
|
|
124,722 |
|
|
|
109,821 |
|
Administrative |
|
18,740 |
|
|
|
15,724 |
|
|
|
53,050 |
|
|
|
37,812 |
|
Other general expense |
|
55 |
|
|
|
(67 |
) |
|
|
(490 |
) |
|
|
28 |
|
Total operating expenses |
|
94,588 |
|
|
|
87,816 |
|
|
|
256,306 |
|
|
|
213,606 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
48,294 |
|
|
|
21,260 |
|
|
|
67,815 |
|
|
|
40,193 |
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
Investment income |
|
633 |
|
|
|
106 |
|
|
|
1,719 |
|
|
|
537 |
|
Interest expense |
|
(1,314 |
) |
|
|
(156 |
) |
|
|
(3,697 |
) |
|
|
(231 |
) |
|
|
|
|
|
|
|
|
Earnings
before income taxes |
|
47,613 |
|
|
|
21,210 |
|
|
|
65,837 |
|
|
|
40,499 |
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
12,632 |
|
|
|
5,647 |
|
|
|
17,352 |
|
|
|
10,574 |
|
|
|
|
|
|
|
|
|
NET EARNINGS |
$ |
34,981 |
|
|
$ |
15,563 |
|
|
$ |
48,485 |
|
|
$ |
29,925 |
|
|
|
|
|
|
|
|
|
Earnings per
diluted share |
$ |
1.81 |
|
|
$ |
0.81 |
|
|
$ |
2.51 |
|
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
Weighted
average number of diluted shares |
|
19,327 |
|
|
|
19,234 |
|
|
|
19,299 |
|
|
|
19,198 |
|
|
|
|
|
|
|
|
|
Earnings per
basic share |
$ |
1.82 |
|
|
$ |
0.81 |
|
|
$ |
2.52 |
|
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
Weighted
average number of basic shares |
|
19,257 |
|
|
|
19,174 |
|
|
|
19,239 |
|
|
|
19,131 |
|
|
|
|
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
(in
thousands, except share amounts) |
|
|
|
|
|
June
24, |
|
|
|
|
2023 |
|
|
September
24, |
|
(unaudited) |
|
|
2022 |
|
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
65,643 |
|
|
$ |
35,181 |
|
Marketable securities held to maturity |
|
- |
|
|
|
4,011 |
|
Accounts receivable, net |
|
217,520 |
|
|
|
208,178 |
|
Inventories |
|
177,620 |
|
|
|
180,473 |
|
Prepaid expenses and other |
|
8,420 |
|
|
|
16,794 |
|
Total current assets |
|
469,203 |
|
|
|
444,637 |
|
|
|
|
|
Property,
plant and equipment, at cost |
|
|
|
Land |
|
3,714 |
|
|
|
3,714 |
|
Buildings |
|
34,232 |
|
|
|
34,232 |
|
Plant machinery and equipment |
|
438,579 |
|
|
|
374,566 |
|
Marketing equipment |
|
291,424 |
|
|
|
274,904 |
|
Transportation equipment |
|
14,551 |
|
|
|
11,685 |
|
Office equipment |
|
46,934 |
|
|
|
45,865 |
|
Improvements |
|
50,976 |
|
|
|
49,331 |
|
Construction in progress |
|
53,916 |
|
|
|
65,753 |
|
Total Property, plant and equipment,
at cost |
|
934,326 |
|
|
|
860,050 |
|
Less accumulated depreciation and amortization |
|
562,985 |
|
|
|
524,683 |
|
Property, plant and equipment,
net |
|
371,341 |
|
|
|
335,367 |
|
|
|
|
|
Other
assets |
|
|
|
Goodwill |
|
185,070 |
|
|
|
184,420 |
|
Other intangible assets, net |
|
186,667 |
|
|
|
191,732 |
|
Marketable securities available for sale |
|
4,513 |
|
|
|
5,708 |
|
Operating lease right-of-use assets |
|
83,089 |
|
|
|
51,137 |
|
Other |
|
4,214 |
|
|
|
3,965 |
|
Total other assets |
|
463,553 |
|
|
|
436,962 |
|
Total Assets |
$ |
1,304,097 |
|
|
$ |
1,216,966 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current
Liabilities |
|
|
|
Current finance lease liabilities |
$ |
188 |
|
|
$ |
124 |
|
Accounts payable |
|
100,025 |
|
|
|
108,146 |
|
Accrued insurance liability |
|
17,312 |
|
|
|
15,678 |
|
Accrued liabilities |
|
22,408 |
|
|
|
9,214 |
|
Current operating lease liabilities |
|
14,675 |
|
|
|
13,524 |
|
Accrued compensation expense |
|
19,479 |
|
|
|
21,700 |
|
Dividends payable |
|
13,489 |
|
|
|
13,453 |
|
Total current liabilities |
|
187,576 |
|
|
|
181,839 |
|
|
|
|
|
Long-term
debt |
|
83,000 |
|
|
|
55,000 |
|
Noncurrent
finance lease liabilities |
|
650 |
|
|
|
254 |
|
Noncurrent
operating lease liabilities |
|
73,361 |
|
|
|
42,660 |
|
Deferred
income taxes |
|
69,432 |
|
|
|
70,407 |
|
Other
long-term liabilities |
|
3,911 |
|
|
|
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 19,270,000 and 19,219,000 respectively |
|
|
|
|
104,250 |
|
|
|
94,026 |
|
Accumulated
other comprehensive loss |
|
(8,999 |
) |
|
|
(13,713 |
) |
Retained
Earnings |
|
790,916 |
|
|
|
782,856 |
|
Total stockholders' equity |
|
886,167 |
|
|
|
863,169 |
|
Total Liabilities and Stockholders' Equity |
$ |
1,304,097 |
|
|
$ |
1,216,966 |
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited)
(in thousands) |
|
|
|
|
|
Nine months ended |
|
June
24, |
|
June
25, |
|
|
2023 |
|
|
|
2022 |
|
Operating activities: |
|
|
|
Net earnings |
$ |
48,485 |
|
|
$ |
29,925 |
|
Adjustments to reconcile net earnings to net cash
provided by operating activities |
|
|
|
Depreciation of fixed assets |
|
41,319 |
|
|
|
36,292 |
|
Amortization of intangibles and deferred
costs |
|
5,065 |
|
|
|
1,775 |
|
(Gain) loss from disposals of property
& equipment |
|
(255 |
) |
|
|
50 |
|
Share-based compensation |
|
3,935 |
|
|
|
3,484 |
|
Deferred income taxes |
|
(937 |
) |
|
|
(227 |
) |
(Gain) loss on marketable securities |
|
(105 |
) |
|
|
412 |
|
Other |
|
(237 |
) |
|
|
(212 |
) |
Changes in assets and liabilities, net of
effects from purchase of companies |
|
|
|
Increase in accounts
receivable |
|
(7,680 |
) |
|
|
(78,058 |
) |
Decrease (increase) in
inventories |
|
4,875 |
|
|
|
(42,784 |
) |
Decrease (increase) in
prepaid expenses |
|
8,487 |
|
|
|
(102 |
) |
Increase in accounts
payable and accrued liabilities |
|
2,992 |
|
|
|
19,798 |
|
Net cash provided by (used in) operating
activities |
|
105,944 |
|
|
|
(29,647 |
) |
|
|
|
|
Investing activities: |
|
|
|
Payments for purchases of companies, net of cash
acquired |
|
- |
|
|
|
(221,301 |
) |
Purchases of property, plant and equipment |
|
(76,472 |
) |
|
|
(64,231 |
) |
Proceeds from redemption and sales of marketable
securities |
|
5,300 |
|
|
|
11,526 |
|
Proceeds from disposal of property and equipment |
|
774 |
|
|
|
1,147 |
|
Net cash (used in) investing
activities |
|
(70,398 |
) |
|
|
(272,859 |
) |
|
|
|
|
Financing activities: |
|
|
|
Proceeds from issuance of stock |
|
6,289 |
|
|
|
12,168 |
|
Borrowings under credit facility |
|
102,000 |
|
|
|
125,000 |
|
Repayment of borrowings under credit facility |
|
(74,000 |
) |
|
|
- |
|
Payments for debt issuance costs |
|
- |
|
|
|
(225 |
) |
Payments on finance lease obligations |
|
(150 |
) |
|
|
(150 |
) |
Payment of cash dividend |
|
(40,389 |
) |
|
|
(36,299 |
) |
Net cash (used in) provided by financing
activities |
|
(6,250 |
) |
|
|
100,494 |
|
|
|
|
|
Effect of
exchange rates on cash and cash equivalents |
|
1,166 |
|
|
|
103 |
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
30,462 |
|
|
|
(201,909 |
) |
Cash and
cash equivalents at beginning of period |
|
35,181 |
|
|
|
283,192 |
|
Cash and
cash equivalents at end of period |
$ |
65,643 |
|
|
$ |
81,283 |
|
|
|
|
|
J & J
SNACK FOODS CORP. AND SUBSIDIARIES |
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS |
(Unaudited)
(in thousands) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
June
24, |
|
June
25, |
|
June
24, |
|
June
25, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Sales to
external customers: |
|
|
|
|
|
|
|
Food Service |
|
|
|
|
|
|
|
Soft pretzels |
$ |
63,527 |
|
|
$ |
55,946 |
|
|
$ |
171,242 |
|
|
$ |
149,628 |
|
Frozen novelties |
|
47,410 |
|
|
|
17,155 |
|
|
|
95,782 |
|
|
|
32,917 |
|
Churros |
|
30,470 |
|
|
|
25,614 |
|
|
|
81,147 |
|
|
|
62,550 |
|
Handhelds |
|
17,003 |
|
|
|
25,740 |
|
|
|
60,884 |
|
|
|
64,741 |
|
Bakery |
|
87,582 |
|
|
|
95,495 |
|
|
|
281,830 |
|
|
|
287,293 |
|
Other |
|
8,988 |
|
|
|
7,892 |
|
|
|
20,673 |
|
|
|
18,785 |
|
Total Food Service |
$ |
254,980 |
|
|
$ |
227,842 |
|
|
$ |
711,558 |
|
|
$ |
615,914 |
|
|
|
|
|
|
|
|
|
Retail Supermarket |
|
|
|
|
|
|
|
Soft pretzels |
$ |
10,269 |
|
|
$ |
11,696 |
|
|
$ |
40,767 |
|
|
$ |
43,642 |
|
Frozen novelties |
|
41,684 |
|
|
|
41,865 |
|
|
|
80,423 |
|
|
|
78,586 |
|
Biscuits |
|
5,135 |
|
|
|
6,066 |
|
|
|
18,906 |
|
|
|
20,024 |
|
Handhelds |
|
4,452 |
|
|
|
1,589 |
|
|
|
11,443 |
|
|
|
3,934 |
|
Coupon redemption |
|
(385 |
) |
|
|
(605 |
) |
|
|
(936 |
) |
|
|
(2,227 |
) |
Other |
|
(5 |
) |
|
|
397 |
|
|
|
(20 |
) |
|
|
501 |
|
Total Retail Supermarket |
$ |
61,150 |
|
|
$ |
61,008 |
|
|
$ |
150,583 |
|
|
$ |
144,460 |
|
|
|
|
|
|
|
|
|
Frozen Beverages |
|
|
|
|
|
|
|
Beverages |
$ |
72,878 |
|
|
$ |
57,791 |
|
|
$ |
153,336 |
|
|
$ |
126,919 |
|
Repair and maintenance service |
|
24,144 |
|
|
|
22,892 |
|
|
|
70,556 |
|
|
|
65,903 |
|
Machines revenue |
|
11,554 |
|
|
|
9,868 |
|
|
|
26,817 |
|
|
|
25,257 |
|
Other |
|
1,063 |
|
|
|
826 |
|
|
|
2,116 |
|
|
|
1,777 |
|
Total Frozen Beverages |
$ |
109,639 |
|
|
$ |
91,377 |
|
|
$ |
252,825 |
|
|
$ |
219,856 |
|
|
|
|
|
|
|
|
|
Consolidated
sales |
$ |
425,769 |
|
|
$ |
380,227 |
|
|
$ |
1,114,966 |
|
|
$ |
980,230 |
|
|
|
|
|
|
|
|
|
Depreciation
and amortization: |
|
|
|
|
|
|
|
Food Service |
$ |
9,797 |
|
|
$ |
7,097 |
|
|
$ |
28,852 |
|
|
$ |
20,436 |
|
Retail Supermarket |
|
540 |
|
|
|
405 |
|
|
|
1,423 |
|
|
|
1,157 |
|
Frozen Beverages |
|
5,426 |
|
|
|
5,514 |
|
|
|
16,109 |
|
|
|
16,474 |
|
Total
depreciation and amortization |
$ |
15,763 |
|
|
$ |
13,016 |
|
|
$ |
46,384 |
|
|
$ |
38,067 |
|
|
|
|
|
|
|
|
|
Operating
Income: |
|
|
|
|
|
|
|
Food Service |
$ |
20,786 |
|
|
$ |
2,640 |
|
|
$ |
32,306 |
|
|
$ |
12,177 |
|
Retail Supermarket |
|
4,168 |
|
|
|
2,341 |
|
|
|
5,766 |
|
|
|
8,416 |
|
Frozen Beverages |
|
23,340 |
|
|
|
16,279 |
|
|
|
29,743 |
|
|
|
19,600 |
|
Total
operating income |
$ |
48,294 |
|
|
$ |
21,260 |
|
|
$ |
67,815 |
|
|
$ |
40,193 |
|
|
|
|
|
|
|
|
|
Capital
expenditures: |
|
|
|
|
|
|
|
Food Service |
$ |
20,015 |
|
|
$ |
21,673 |
|
|
$ |
58,621 |
|
|
$ |
45,757 |
|
Retail Supermarket |
|
345 |
|
|
|
2,815 |
|
|
|
1,824 |
|
|
|
6,438 |
|
Frozen Beverages |
|
6,988 |
|
|
|
4,437 |
|
|
|
16,027 |
|
|
|
12,036 |
|
Total
capital expenditures |
$ |
27,348 |
|
|
$ |
28,925 |
|
|
$ |
76,472 |
|
|
$ |
64,231 |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
Food Service |
$ |
959,657 |
|
|
$ |
957,719 |
|
|
$ |
959,657 |
|
|
$ |
957,719 |
|
Retail Supermarket |
|
12,327 |
|
|
|
29,147 |
|
|
|
12,327 |
|
|
|
29,147 |
|
Frozen Beverages |
|
332,113 |
|
|
|
304,376 |
|
|
|
332,113 |
|
|
|
304,376 |
|
Total
assets |
$ |
1,304,097 |
|
|
$ |
1,291,242 |
|
|
$ |
1,304,097 |
|
|
$ |
1,291,242 |
|
|
|
|
|
|
|
|
|
J
& J SNACK FOODS CORP. AND SUBSIDIARIES |
NON-GAAP
FINANCIAL MEASURES |
(Unaudited)
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
June
24, |
|
June
25, |
|
June
24, |
|
June
25, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Earnings to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Earnings |
|
$ |
34,981 |
|
|
$ |
15,563 |
|
|
$ |
48,485 |
|
|
$ |
29,925 |
|
Income Taxes |
|
|
12,632 |
|
|
|
5,647 |
|
|
|
17,352 |
|
|
|
10,574 |
|
Investment Income |
|
|
(633 |
) |
|
|
(106 |
) |
|
|
(1,719 |
) |
|
|
(537 |
) |
Interest Expense |
|
|
1,314 |
|
|
|
156 |
|
|
|
3,697 |
|
|
|
231 |
|
Depreciation and Amortization |
|
|
15,763 |
|
|
|
13,016 |
|
|
|
46,384 |
|
|
|
38,067 |
|
Share-Based Compensation |
|
|
1,383 |
|
|
|
1,134 |
|
|
|
3,935 |
|
|
|
3,484 |
|
Merger and Acquisition Costs |
|
|
- |
|
|
|
3,088 |
|
|
|
- |
|
|
|
3,088 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(874 |
) |
Net (Gain) Loss on Sale or Disposal of
Assets |
|
|
99 |
|
|
|
(50 |
) |
|
|
(255 |
) |
|
|
50 |
|
Strategic Business Transformation
Costs |
|
|
951 |
|
|
|
- |
|
|
|
951 |
|
|
|
- |
|
Integration Costs |
|
|
153 |
|
|
|
- |
|
|
|
570 |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
66,643 |
|
|
$ |
38,448 |
|
|
$ |
119,400 |
|
|
$ |
84,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Operating Income to Adjusted
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
|
48,294 |
|
|
|
21,260 |
|
|
|
67,815 |
|
|
|
40,193 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(874 |
) |
Merger and Acquisition Costs |
|
|
- |
|
|
|
3,088 |
|
|
|
- |
|
|
|
3,088 |
|
Acquisition Related Amortization
Expenses |
|
|
1,679 |
|
|
|
592 |
|
|
|
5,037 |
|
|
|
1,776 |
|
Strategic Business Transformation
Costs |
|
|
951 |
|
|
|
- |
|
|
|
951 |
|
|
|
- |
|
Integration Costs |
|
|
153 |
|
|
|
- |
|
|
|
570 |
|
|
|
- |
|
Adjusted Operating Income |
|
$ |
51,077 |
|
|
$ |
24,940 |
|
|
$ |
74,373 |
|
|
$ |
44,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Earnings per Diluted Share to
Adjusted Earnings per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Diluted Share |
|
$ |
1.81 |
|
|
$ |
0.81 |
|
|
$ |
2.51 |
|
|
$ |
1.56 |
|
COVID-19 Expenses (Recoveries) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.05 |
) |
Merger and Acquisition Costs |
|
|
- |
|
|
|
0.16 |
|
|
|
- |
|
|
|
0.16 |
|
Acquisition Related Amortization
Expenses |
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.26 |
|
|
|
0.09 |
|
Strategic Business Transformation
Costs |
|
|
0.05 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
- |
|
Integration Costs |
|
|
0.01 |
|
|
|
- |
|
|
|
0.03 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Tax Effect of Non-GAAP Adjustments (1) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.09 |
) |
|
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
Adjusted Earnings per Diluted Share |
|
$ |
1.92 |
|
|
$ |
0.95 |
|
|
$ |
2.76 |
|
|
$ |
1.72 |
|
|
|
|
|
|
|
|
|
|
(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