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Form 8-K J&J SNACK FOODS CORP For: Aug 02

August 2, 2022 4:17 PM EDT

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 2, 2022
 
 
J&J SNACK FOODS CORP.
 
(Exact name of registrant as specified in its charter)
 
 
New Jersey
000-14616
22-1935537
 
 
(State or Other
(Commission
(I.R.S. Employer
 
 
Jurisdiction of
Organization)
File Number)
Identification No.)
 
 
6000 Central Highway, Pennsauken, New Jersey 08109
(Address of principal executive offices) (Zip Code)
 
Registrant's telephone number, including area code: (856) 665-9533
 
N/A
(Former name or former address, if changed since last report)
 
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Exchange Act:
 
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
 
Common Stock, no par value
JJSF
The NASDAQ Global Select Market
 
 
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
1
 
 
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS
 
On August 2, 2022, J & J Snack Foods Corp. issued a press release regarding its earnings for the third quarter of fiscal 2022.
 
The information in this report and in the attached press release shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
 
 
 
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
 
(d) Exhibits
 
Exhibit Number
Description of Document
   
99.1
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
2
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
J & J SNACK FOODS CORP.
 
By:     /s/     Ken A. Plunk
 
 
 
 
Ken A. Plunk
Chief Financial Officer
 
Date: August 2, 2022
 
3

Exhibit 99.1

 

jj01.jpg

J & J SNACK FOODS FISCAL THIRD QUARTER REVENUE INCREASES BY 17.2% TO AN ALL TIME

QUARTERLY RECORD $380.2M

 

Pennsauken, NJ, August 2, 2022 – J & J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today reported financial results for the third quarter ended June 25, 2022.         

 

   

Third Quarter

 
   

Actuals

   

% vs. LY

 
                 

Net Sales

    $380.2M       17.2%  

Operating Income1

    $21.3M       (44.3%)  

Net Earnings

    $15.6M       (46.1%)  

Earnings per Diluted Share (EPS)1

    $0.81       (46.4%)  

 

1 GAAP Operating Income includes the impact of $3.1 million in acquisition costs related to the acquisition of Dippin Dots. Excluding these one-time expenses, Adjusted Operating Income was $24.3 million, Adjusted Earnings per Diluted Share was $0.93 and Adjusted EBITDA was $38.4 million. See reconciliation of non-GAAP measures below.

 

Dan Fachner, J & J Snack Foods President and CEO, commented, “J & J Snack Foods delivered strong results in fiscal third quarter, including record quarterly sales and significant improvements in gross margin at 28.7%. This performance reflects a number of positive trends across all three of our business segments, including strong demand for our higher-margin core products, continued strength in our key sales channels and expanding penetration of our products with new and existing customers. I am very proud of the J & J team as they worked tirelessly to help us rebound from the ERP implementation challenges in Q2 and deliver our best sales quarter in the history of the company.”

 

“We delivered wide-spread strength across all three of our business segments. Frozen Beverages segment sales grew 23.5% compared to the same quarter last year, led by a 36.7% increase in beverages. Food Services segment sales increased 16.0% year-over-year, driven by exceptional growth in our handheld, churros and frozen novelty offerings, as well as double-digit growth in bakery and 9.9% growth in pretzels. Retail sales grew 13.3% in the quarter and 46.1% above pre-Covid 2019 third quarter led by frozen novelties.”

 

“I am excited about the opportunities ahead for our Company and confident that our portfolio of brands, investments in our business and targeted strategic initiatives will help us to continue to grow, and to do so more efficiently. We are focused on strengthening our operating infrastructure and improving efficiencies in order to become a more resilient and faster growing organization and deliver added value to our customers and shareholders. We believe the recent acquisition of Dippin’ Dots fits perfectly in our brand portfolio and customer strategy and will play a pivotal role in accelerating our growth. We are leveraging a strong balance sheet and healthy liquidity position to acquire a profitable and scalable business that complements our long-term growth strategy and is expected to be accretive to EPS. We have already identified a number of synergies and revenue growth opportunities that we expect to realize over time as we grow the value of the Dippin’ Dots brand. In the coming quarters, we will continue to work with the Dippin’ Dots team to ensure a smooth integration and to deliver incremental value to our shareholders.”

 

 

 

“As was the case in prior quarters, we experienced significant inflationary pressures, including raw materials and packaging, that continue to impact profit margins. We also continue to face historic cost pressures in our supply chain where we saw both sequential and year-over-year increases driven by higher truck driver wages, and rising carrier, storage and fuel costs. In order to offset these pressures, we have a number of cost reduction initiatives underway in R&D, procurement, plant operations and distribution that we expect to see added contribution from in the latter part of the year. In addition, we instituted two price increases over the last nine months to further help offset the inflationary pressures and have already started to see improved gross margins as our most recent price increase took effect in April. Going forward, we are in the process of executing a third price increase, which along with our focus on improved manufacturing efficiencies, cost reduction initiatives, and improved product mix should improve our operating profit margins. As the inflationary environment stabilizes and we execute these initiatives, we are confident that our business will deliver higher margins along with our strong sales trends.”

 

“In summary, we are pleased with our results for the fiscal third quarter as our business momentum continued despite the ongoing macroeconomic and geopolitical volatility and higher levels of inflation across our markets. Despite these challenges, our long-term vision has never been clearer. We have the right team, brand portfolio, and strategy to win in the marketplace.”

 

Company Third Quarter Highlights

Net sales increased 17.2% to $380.2 million in Q3 of fiscal 2022, compared to Q3 of fiscal 2021, and by 16.4%, compared of Q3 of fiscal 2019.

 

Key highlights include:

Sales were driven by growth in core products including pretzels, churros, frozen novelties and frozen beverages.

Food Service sales exceeded Q3 ’21 by 16.0% and by 17.8%, versus Q3 ’19.

Retail segment sales exceeded Q3 ’21 by 13.3%, and by 46.1%, compared to Q3 ’19.

Frozen Beverage segment sales beat Q3 ’21 sales by 23.5%, and were flat, versus Q3 ’19.

 

Gross profit as a percentage of sales was 28.7% in Q3 ’22, compared to 29.7% in Q3 ’21, an improving trend versus Q2 ‘22 but still impacted by the significant cost headwinds our industry continues to face. Key raw material ingredients like flour, oils, eggs, meats and dairy increased an additional 9.5% from Q2 ’22, continuing the historic inflationary trends. Pricing action implemented early in the quarter and improved mix helped offset some of these headwinds and drove overall improvements in gross margin performance for the quarter.

 

Total operating expenses of $87.8 million represented 23.1% of sales for the quarter, compared to 17.9% in Q3 ’21. The increase reflects the continued rise across distribution and administrative costs, including additional cost increases in freight. Distribution costs represented 12.7% of sales in the quarter, versus 8.4% in the prior year period, and 10.1% in Q2 ’22. Distribution expense as a percentage of sales was over 400 bps higher than the same quarter last year driven by outbound freight, carrier cost increases, storage increases and fuel. Strategic initiatives focused on logistics management and transformation of our distribution network are expected to drive significant savings over the next couple of years as we execute these plans.

 

 

 

Marketing and selling expenses remained at 6.3% of sales, versus the prior year period, and decreased from 7.5%, sequentially. Administrative expenses were 4.1% of sales in Q3 ’22, compared to 3.2% in Q3 ’21 and flat, compared to Q2’ 22.

 

Despite record sales across our three business segments, operating income was $21.3 million in the third quarter of fiscal 2022, compared to $38.1 million in the prior year period, largely the result the continued historic inflationary environment impacting the economy as well as the one-time $3.1 million cost impact associated with the Dippin’ Dots acquisition. This led to net earnings in Q3 ’22 of $15.6 million, compared to $28.9 million in Q3 ’21. Our effective tax rate was 26.6% in Q3 ’22.

 

Food Services Segment Third Quarter Highlights

Q3 ’22 food service sales increased 16.0% to $227.8 million, compared to Q3 ’21.

Theaters and outdoor venues, including stadiums and amusement parks, as well as schools and restaurants and strategic accounts continued to experience an increase in visitation that drove strong sales in our core products, including 9.9% increase in soft pretzel sales to $55.9 million, frozen novelties sales growth of 23.2% to $17.2 million, churro sales growth of 27.5% to $25.6 million, and handheld sales growth of 35.7% to $25.7 million. Bakery sales also had a strong quarter with sales of $95.5 million representing a 11.4% increase, compared to Q3 ‘22.

Sales from new products and business were approximately $1 million driven primarily by new bakery products and a growing empanada product at a major convenience customer.

Q3 ’22 operating income declined 85.0% to $2.6 million reflecting the significant increase in input, production, and distribution costs, as well as the impact of the majority of the $3.1 million of acquisition costs.

 

Retail Segment Third Quarter Highlights

Q3 ’22 retail sales increased 13.3% to $61.0 million, compared to Q3 ’21.

Soft pretzels sales increased 4.5% compared to Q3 ’21, while frozen novelty sales increased 13.5%, biscuit sales increased 33.0% and handheld sales increased by 33.4%, versus the prior year period.

New product innovation and expanded business contributed approximately $3 million in the quarter driven by additional placement of Luigi’s, Whole Fruit and Dogsters skus at major grocery retailers and continued success of the new Luigi’s gelato product.

Operating income decreased 74.2% to $2.3 million, versus the prior year period driven by higher cost of goods sold and shipping and distribution related expenses.

 

Frozen Beverages Segment Third Quarter Highlights      

Frozen beverage segment sales of $91.4 million beat Q3 ’21 sales by 23.5% led by beverage sales.

Beverage sales grew 36.7%, or $15.5 million higher than in Q3 ’21 reflecting the strong demand across theaters, amusement parks, convenience, and restaurants. In the amusement parks channel, we continue to see strong growth as both domestic and international visitation numbers continue to recover – and exceed pre-Covid levels. Theater sales continue on their upward trajectory as movie goers indulge in their favorite snacks and watch some of the most highly anticipated movie releases.

Machine Service revenues remained relatively flat with continued healthy maintenance call volume, while equipment sales increased 17.4% driven mainly by growth from large QSR and convenience customers.

Q3 ’22 operating income improved to $16.3 million, compared to a Q3 ’21 operating income of $11.4 million, as strong sales drove leverage across the business.

 

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 J & J Snack Foods Corp. (NASDAQ: JJSF) is a leader and innovator in the snack food industry, providing innovative, niche and affordable branded snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SUPERPRETZEL, the  #1 soft pretzel brand in the world, as well as internationally known ICEE and SLUSH PUPPIE frozen beverages, DIPPIN’ DOTS ice cream, LUIGI’S Real Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT sorbet and frozen fruit bars, SOUR PATCH KIDS** Flavored Ice Pops, Tio Pepe’s & CALIFORNIA CHURROS, and THE FUNNEL CAKE FACTORY funnel cakes and several bakery brands within DADDY RAY’S, COUNTRY HOME BAKERS and HILL & VALLEY.  For more information, please visit http://www.jjsnack.com.

 

*MINUTE MAID is a registered trademark of The Coca-Cola Company.

**SOUR PATCH KIDS is a registered trademark of Mondelēz International group, used under license.

 

 

 

Cautionary Statement Regarding Forward-Looking Information

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s expected future financial position, results of operations, revenue growth and profit levels, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “goals,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. This includes, without limitation, our statements and expectations regarding any current or future recovery in our industry and the future impact of the Company’s enterprise resource planning system implementation. 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, 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, 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, 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 Neuman

JCIR

(212) 835-8500

[email protected]

 

 

 

 J & J SNACK FOODS CORP. AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF EARNINGS

 

 (in thousands, except per share amounts)

 

 

   

Three months ended

   

Nine months ended

 
   

June 25,

   

June 26,

   

June 25,

   

June 26,

 
   

2022

   

2021

   

2022

   

2021

 
                                 

Net Sales

  $ 380,227     $ 324,344     $ 980,230     $ 821,519  
                                 

Cost of goods sold

    271,151       228,170       726,431       614,324  

Gross Profit

    109,076       96,174       253,799       207,195  
                                 

Operating expenses

                               

Marketing

    24,002       20,502       65,945       56,995  

Distribution

    48,157       27,311       109,821       75,643  

Administrative

    15,724       10,348       37,812       29,004  

Other general expense (income)

    (67 )     (131 )     28       (399 )

Total Operating Expenses

    87,816       58,030       213,606       161,243  
                                 

Operating Income

    21,260       38,144       40,193       45,952  
                                 

Other income (expense)

                               

Investment income

    106       470       537       2,419  

Interest (expense) & other

    (156 )     (8 )     (231 )     (19 )
                                 

Earnings before

                               

income taxes

    21,210       38,606       40,499       48,352  
                                 

Income tax expense

    5,647       9,713       10,574       11,620  
                                 

NET EARNINGS

  $ 15,563     $ 28,893     $ 29,925     $ 36,732  
                                 

Earnings per diluted share

  $ 0.81     $ 1.51     $ 1.56     $ 1.92  
                                 

Weighted average number of diluted shares

    19,234       19,185       19,198       19,116  
                                 

Earnings per basic share

  $ 0.81     $ 1.52     $ 1.56     $ 1.93  
                                 

Weighted average number of basic shares

    19,174       19,045       19,131       18,996  

 

 

 

 J & J SNACK FOODS CORP. AND SUBSIDIARIES

 CONSOLIDATED BALANCE SHEETS

 (in thousands, except share amounts)

 

   

June 25,

         
   

2022

   

September 25,

 
   

(unaudited)

   

2021

 

Assets

               

Current assets

               

Cash and cash equivalents

  $ 81,283     $ 283,192  

Marketable securities held to maturity

    4,520       7,980  

Accounts receivable, net

    253,469       162,939  

Inventories

    173,948       123,160  

Prepaid expenses and other

    10,519       7,498  

Total current assets

    523,739       584,769  
                 

Property, plant and equipment, at cost

    832,425       757,242  

Less accumulated depreciation and amortization

    513,851       490,055  

Property, plant and equipment, net

    318,574       267,187  
                 

Other assets

               

Goodwill

    188,467       121,833  

Other intangible assets, net

    196,407       77,776  

Marketable securities held to maturity

    -       4,047  

Marketable securities available for sale

    5,608       10,084  

Operating lease right-of-use assets

    54,990       54,555  

Other

    3,457       1,968  

Total other assets

    448,929       270,263  

Total Assets

  $ 1,291,242     $ 1,122,219  
                 

Liabilities and Stockholders' Equity

               

Current Liabilities

               

Current finance lease liabilities

  $ 189     $ 182  

Accounts payable

    128,551       96,789  

Accrued insurance liability

    14,892       16,260  

Accrued liabilities

    10,121       10,955  

Current operating lease liabilities

    14,062       13,395  

Accrued compensation expense

    19,038       17,968  

Dividends payable

    12,138       12,080  

Total current liabilities

    198,991       167,629  
                 

Long-term debt

    125,000       -  

Noncurrent finance lease liabilities

    318       392  

Noncurrent operating lease liabilities

    46,017       46,557  

Deferred income taxes

    61,350       61,578  

Other long-term liabilities

    3,667       409  
                 

Stockholders' Equity

               

Preferred stock, $1 par value; authorized 10,000,000 shares; none issued

    -       -  

Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 19,173,000 and 19,084,000 respectively

    90,274       73,597  

Accumulated other comprehensive loss

    (13,374 )     (13,383 )

Retained Earnings

    778,999       785,440  

Total stockholders' equity

    855,899       845,654  

Total Liabilities and Stockholders' Equity

  $ 1,291,242     $ 1,122,219  

 

 

 

 J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)     (in thousands)

 

   

Nine months ended

 
   

June 25,

   

June 26,

 
   

2022

   

2021

 
                 

Operating activities:

               

Net earnings

  $ 29,925     $ 36,732  

Adjustments to reconcile net earnings to net cash provided by operating activities:

               

Depreciation of fixed assets

    36,292       36,278  

Amortization of intangibles and deferred costs

    1,775       2,096  

Loss from disposals of property & equipment

    50       -  

Share-based compensation

    3,484       3,252  

Deferred income taxes

    (227 )     (188 )

Loss (Gain) on marketable securities

    412       (926 )

Other

    (212 )     (305 )

Changes in assets and liabilities, net of effects from purchase of companies:

               

Increase in accounts receivable

    (78,058 )     (27,940 )

Increase in inventories

    (42,784 )     (5,964 )

(Increase) decrease in prepaid expenses

    (102 )     5,710  

(Decrease) increase in accounts payable and accrued liabilities

    19,798       24,823  

Net cash (used in) provided by operating activities

    (29,647 )     73,568  
                 

Investing activities:

               

Payments for purchases of companies, net of cash acquired

    (221,301 )     -  

Purchases of property, plant and equipment

    (64,231 )     (34,456 )

Proceeds from redemption and sales of marketable securities

    11,526       54,191  

Proceeds from disposal of property and equipment

    1,147       2,079  

Other

    -       42  

Net cash (used in) provided by investing activities

    (272,859 )     21,856  
                 

Financing activities:

               

Proceeds from issuance of stock

    12,168       17,178  

Borrowings under credit facility

    125,000       -  

Payment for debt issuance costs

    (225 )     -  

Payments on finance lease obligations

    (150 )     (48 )

Payment of cash dividend

    (36,299 )     (32,719 )

Net cash provided by (used in) financing activities

    100,494       (15,589 )
                 

Effect of exchange rate on cash and cash equivalents

    103       624  
                 

Net (decrease) increase in cash and cash equivalents

    (201,909 )     80,459  
                 

Cash and cash equivalents at beginning of period

    283,192       195,809  
                 

Cash and cash equivalents at end of period

  $ 81,283     $ 276,268  

 

 

 

 J & J SNACK FOODS CORP. AND SUBSIDIARIES

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 (Unaudited)     (in thousands)

 

   

Three months ended

   

Nine months ended

 
   

June 25,

   

June 26,

   

June 25,

   

June 26,

 
   

2022

   

2021

   

2022

   

2021

 
                                 
                                 

Sales to External Customers:

                               

Food Service

                               

Soft pretzels

  $ 55,946     $ 50,895     $ 149,628     $ 120,356  

Frozen novelties

    17,155       13,927       32,917       30,812  

Churros

    25,614       20,096       62,550       46,358  

Handhelds

    25,740       18,971       64,741       56,574  

Bakery

    95,495       85,706       287,293       257,580  

Other

    7,892       6,884       18,785       14,546  

Total Food Service

  $ 227,842     $ 196,479     $ 615,914     $ 526,226  
                                 

Retail Supermarket

                               

Soft pretzels

  $ 11,696     $ 11,193     $ 43,642     $ 40,871  

Frozen novelties

    41,865       36,898       78,586       71,600  

Biscuits

    6,066       4,562       20,024       18,717  

Handhelds

    1,589       1,191       3,934       6,215  

Coupon redemption

    (605 )     (513 )     (2,227 )     (2,196 )

Other

    397       526       501       1,652  

Total Retail Supermarket

  $ 61,008     $ 53,857     $ 144,460     $ 136,859  
                                 

Frozen Beverages

                               

Beverages

  $ 57,791     $ 42,279     $ 126,919     $ 76,663  

Repair and maintenance service

    22,892       22,789       65,903       59,903  

Machines revenue

    9,868       8,404       25,257       20,556  

Other

    826       536       1,777       1,312  

Total Frozen Beverages

  $ 91,377     $ 74,008     $ 219,856     $ 158,434  
                                 

Consolidated Sales

  $ 380,227     $ 324,344     $ 980,230     $ 821,519  
                                 

Depreciation and Amortization:

                               

Food Service

  $ 7,097     $ 6,817     $ 20,436     $ 20,334  

Retail Supermarket

    405       378       1,157       1,147  

Frozen Beverages

    5,514       5,469       16,474       16,893  

Total Depreciation and Amortization

  $ 13,016     $ 12,664     $ 38,067     $ 38,374  
                                 

Operating Income :

                               

Food Service

  $ 2,640     $ 17,644     $ 12,177     $ 29,879  

Retail Supermarket

    2,341       9,080       8,416       20,167  

Frozen Beverages

    16,279       11,420       19,600       (4,094 )

Total Operating Income

  $ 21,260     $ 38,144     $ 40,193     $ 45,952  
                                 

Capital Expenditures:

                               

Food Service

  $ 21,673     $ 10,383     $ 45,757     $ 25,915  

Retail Supermarket

    2,815       93       6,438       194  

Frozen Beverages

    4,437       5,151       12,036       8,347  

Total Capital Expenditures

  $ 28,925     $ 15,627     $ 64,231     $ 34,456  
                                 

Assets:

                               

Food Service

  $ 957,719     $ 779,730     $ 957,719     $ 779,730  

Retail Supermarket

    29,147       33,405       29,147       33,405  

Frozen Beverages

    304,376       288,411       304,376       288,411  

Total Assets

  $ 1,291,242     $ 1,101,546     $ 1,291,242     $ 1,101,546  

 

 

 

J & J SNACK FOODS CORP. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(Unaudited) (in thousands)

 

   

Three Months Ended

   

Nine Months Ended

 
                                 
   

June 25,

   

June 26,

   

June 25,

   

June 26,

 
   

2022

   

2021

   

2022

   

2021

 
                                 
                                 

Reconciliation of GAAP Net Earnings to Adjusted EBITDA

                               
                                 

Net Earnings

  $ 15,563     $ 28,893     $ 29,925     $ 36,732  

Income Taxes

    5,647       9,713       10,574       11,620  

Investment Income

    (106 )     (470 )     (537 )     (2,419 )

Interest Expense

    156       8       231       19  

Depreciation and Amortization

    13,016       12,664       38,067       38,374  

Share-Based Compensation

    1,134       982       3,484       3,252  

Merger and Acquisition Costs

    3,088       -       3,088       -  

COVID-19 Expenses (Recoveries)

    -       442       (874 )     1,949  

Net (Gain) Loss on Sale or Disposal of Assets

    (50 )     -       50       -  

Adjusted EBITDA

  $ 38,448     $ 52,232     $ 84,008     $ 89,527  
                                 
                                 

Reconciliation of GAAP Operating Income to Adjusted Operating Income

                               
                                 

Operating Income

  $ 21,260     $ 38,144     $ 40,193     $ 45,952  

Merger and Acquisition Costs

    3,088       -       3,088       -  

COVID-19 Expenses (Recoveries)

    -       442       (874 )     1,949  

Adjusted Operating Income

  $ 24,348     $ 38,586     $ 42,407     $ 47,901  
                                 
                                 

Reconciliation of GAAP Earnings per Diluted Share to Adjusted Earnings per Diluted Share

                               
                                 

Earnings per Diluted Share (1)

  $ 0.81     $ 1.51     $ 1.56     $ 1.92  

Merger and Acquisition Costs

    0.12       -       0.12       -  

COVID-19 Expenses (Recoveries)

    -       0.02       (0.03 )     0.07  

Adjusted Earnings per Diluted Share

  $ 0.93     $ 1.53     $ 1.65     $ 1.99  
                                 

 

(1)

Income taxes associated with pre-tax adjustments determined using statutory tax rates

 

 

 


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