☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
24, 2020
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Incorporation or Organization)
(847)289-1800
(Registrant’s Telephone Number, Including Area Code)
Title of Each Class | Trading
| Name of Each Exchange
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Common Stock, $.01 par value per share | JBSS | The NASDAQ Stock Market LLC (NASDAQ Global Select Market) |
Large accelerated filer | Accelerated filer | |||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
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For the Quarter Ended | For theTwenty-six Weeks Ended | |||||||||||||||
December 26, 2019 | December 27, 2018 | December 26, 2019 | December 27, 2018 | |||||||||||||
Net sales | $ | 246,423 | $ | 253,317 | $ | 464,269 | $ | 457,605 | ||||||||
Cost of sales | 196,443 | 210,434 | 372,041 | 381,768 | ||||||||||||
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Gross profit | 49,980 | 42,883 | 92,228 | 75,837 | ||||||||||||
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Operating expenses: | ||||||||||||||||
Selling expenses | 16,103 | 18,189 | 30,215 | 32,260 | ||||||||||||
Administrative expenses | 9,411 | 8,054 | 18,485 | 16,885 | ||||||||||||
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Total operating expenses | 25,514 | 26,243 | 48,700 | 49,145 | ||||||||||||
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Income from operations | 24,466 | 16,640 | 43,528 | 26,692 | ||||||||||||
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Other expense: | ||||||||||||||||
Interest expense including $232, $293, $479 and $602 to related parties | 435 | 798 | 956 | 1,677 | ||||||||||||
Rental and miscellaneous expense, net | 274 | 278 | 678 | 567 | ||||||||||||
Other expense | 567 | 486 | 1,133 | 973 | ||||||||||||
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Total other expense, net | 1,276 | 1,562 | 2,767 | 3,217 | ||||||||||||
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Income before income taxes | 23,190 | 15,078 | 40,761 | 23,475 | ||||||||||||
Income tax expense | 5,729 | 3,814 | 10,374 | 5,605 | ||||||||||||
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Net income | $ | 17,461 | $ | 11,264 | $ | 30,387 | $ | 17,870 | ||||||||
Other comprehensive income: | ||||||||||||||||
Amortization of prior service cost and actuarial loss included in net periodic pension cost | 344 | 263 | 687 | 526 | ||||||||||||
Income tax expense related to pension adjustments | (86 | ) | (66 | ) | (172 | ) | (132 | ) | ||||||||
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Other comprehensive income, net of tax | 258 | 197 | 515 | 394 | ||||||||||||
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Comprehensive income | $ | 17,719 | $ | 11,461 | $ | 30,902 | $ | 18,264 | ||||||||
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Net income per common share-basic | $ | 1.52 | $ | 0.99 | $ | 2.65 | $ | 1.57 | ||||||||
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Net income per common share-diluted | $ | 1.52 | $ | 0.98 | $ | 2.64 | $ | 1.56 | ||||||||
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For the Quarter Ended | For the Twenty-six WeeksEnded | |||||||||||||||
December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | |||||||||||||
Net sales | $ | 233,575 | $ | 246,423 | $ | 443,848 | $ | 464,269 | ||||||||
Cost of sales | 180,780 | 196,443 | 351,721 | 372,041 | ||||||||||||
Gross profit | 52,795 | 49,980 | 92,127 | 92,228 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling expenses | 17,694 | 16,103 | 29,778 | 30,215 | ||||||||||||
Administrative expenses | 7,305 | 9,411 | 15,680 | 18,485 | ||||||||||||
Total operating expenses | 24,999 | 25,514 | 45,458 | 48,700 | ||||||||||||
Income from operations | 27,796 | 24,466 | 46,669 | 43,528 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense including $165, $232, $332 and $479 to related parties | 376 | 435 | 826 | 956 | ||||||||||||
Rental and miscellaneous expense, net | 365 | 274 | 797 | 678 | ||||||||||||
Other expense | 629 | 567 | 1,259 | 1,133 | ||||||||||||
Total other expense, net | 1,370 | 1,276 | 2,882 | 2,767 | ||||||||||||
Income before income taxes | 26,426 | 23,190 | 43,787 | 40,761 | ||||||||||||
Income tax expense | 6,541 | 5,729 | 11,090 | 10,374 | ||||||||||||
Net income | $ | 19,885 | $ | 17,461 | $ | 32,697 | $ | 30,387 | ||||||||
Other comprehensive income: | ||||||||||||||||
Amortization of prior service cost and actuarial loss included in net periodic pension cost | 414 | 344 | 830 | 687 | ||||||||||||
Income tax expense related to pension adjustments | (103 | ) | (86 | ) | (207 | ) | (172 | ) | ||||||||
Other comprehensive income, net of tax | 311 | 258 | 623 | 515 | ||||||||||||
Comprehensive income | $ | 20,196 | $ | 17,719 | $ | 33,320 | $ | 30,902 | ||||||||
Net income per common share-basic | $ | 1.73 | $ | 1.52 | $ | 2.85 | $ | 2.65 | ||||||||
Net income per common share-diluted | $ | 1.72 | $ | 1.52 | $ | 2.83 | $ | 2.64 | ||||||||
December 26, 2019 | June 27, 2019 | December 27, 2018 | ||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash | $ | 1,393 | $ | 1,591 | $ | 2,583 | ||||||
Accounts receivable, less allowance for doubtful accounts of $425, $350 and $342 | 52,653 | 60,971 | 62,580 | |||||||||
Inventories | 172,340 | 157,024 | 171,708 | |||||||||
Prepaid expenses and other current assets | 5,992 | 5,754 | 6,943 | |||||||||
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TOTAL CURRENT ASSETS | 232,378 | 225,340 | 243,814 | |||||||||
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PROPERTY, PLANT AND EQUIPMENT: | ||||||||||||
Land | 9,285 | 9,285 | 9,285 | |||||||||
Buildings | 109,671 | 109,955 | 109,380 | |||||||||
Machinery and equipment | 212,532 | 210,962 | 206,663 | |||||||||
Furniture and leasehold improvements | 5,160 | 5,128 | 5,039 | |||||||||
Vehicles | 682 | 673 | 641 | |||||||||
Construction in progress | 3,817 | 1,127 | 2,563 | |||||||||
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341,147 | 337,130 | 333,571 | ||||||||||
Less: Accumulated depreciation | 233,825 | 228,778 | 222,976 | |||||||||
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107,322 | 108,352 | 110,595 | ||||||||||
Rental investment property, less accumulated depreciation of $11,615, $11,212 and $10,827 | 17,508 | 17,831 | 18,066 | |||||||||
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TOTAL PROPERTY, PLANT AND EQUIPMENT | 124,830 | 126,183 | 128,661 | |||||||||
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Intangible assets, net | 13,282 | 14,626 | 15,970 | |||||||||
Cash surrender value of officers’ life insurance and other assets | 9,124 | 9,782 | 8,743 | |||||||||
Deferred income taxes | 5,616 | 5,723 | 4,591 | |||||||||
Goodwill | 9,650 | 9,650 | 9,650 | |||||||||
Operating leaseright-of-use assets | 4,823 | — | — | |||||||||
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TOTAL ASSETS | $ | 399,703 | $ | 391,304 | $ | 411,429 | ||||||
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December 24, 2020 | June 25, 2020 | December 26, 2019 | ||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash | $ | 1,763 | $ | 1,535 | $ | 1,393 | ||||||
Accounts receivable, less allowance for doubtful accounts of $325, $391 and $425 | 60,495 | 56,953 | 52,653 | |||||||||
Inventories | 155,371 | 172,068 | 172,340 | |||||||||
Prepaid expenses and other current assets | 9,872 | 8,315 | 5,992 | |||||||||
TOTAL CURRENT ASSETS | 227,501 | 238,871 | 232,378 | |||||||||
PROPERTY, PLANT AND EQUIPMENT: | ||||||||||||
Land | 9,277 | 9,285 | 9,285 | |||||||||
Buildings | 110,611 | 110,294 | 109,671 | |||||||||
Machinery and equipment | 224,458 | 218,021 | 212,532 | |||||||||
Furniture and leasehold improvements | 5,199 | 5,179 | 5,160 | |||||||||
Vehicles | 642 | 682 | 682 | |||||||||
Construction in progress | 6,577 | 2,244 | 3,817 | |||||||||
356,764 | 345,705 | 341,147 | ||||||||||
Less: Accumulated depreciation | 244,447 | 239,013 | 233,825 | |||||||||
112,317 | 106,692 | 107,322 | ||||||||||
Rental investment property, less accumulated depreciation of $12,422, $12,018 and $11,615 | 16,701 | 17,105 | 17,508 | |||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 129,018 | 123,797 | 124,830 | |||||||||
Intangible assets, net | 10,968 | 12,125 | 13,282 | |||||||||
Cash surrender value of officers’ life insurance and other assets | 9,017 | 11,875 | 9,124 | |||||||||
Deferred income taxes | 7,288 | 6,788 | 5,616 | |||||||||
Goodwill | 9,650 | 9,650 | 9,650 | |||||||||
Operating lease right-of-use | 4,119 | 4,351 | 4,823 | |||||||||
TOTAL ASSETS | $ | 397,561 | $ | 407,457 | $ | 399,703 | ||||||
December 26, 2019 | June 27, 2019 | December 27, 2018 | ||||||||||
LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Revolving credit facility borrowings | $ | 13,495 | $ | — | $ | 24,541 | ||||||
Current maturities of long-term debt, including related party debt of $565, $4,375 and $4,359 and net of unamortized debt issuance costs of $30, $35 and $40 | 7,110 | 7,338 | 7,254 | |||||||||
Accounts payable | 70,979 | 42,552 | 69,732 | |||||||||
Bank overdraft | 1,349 | 901 | 3,887 | |||||||||
Accrued payroll and related benefits | 13,429 | 22,101 | 10,293 | |||||||||
Other accrued expenses | 11,374 | 11,014 | 9,808 | |||||||||
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TOTAL CURRENT LIABILITIES | 117,736 | 83,906 | 125,515 | |||||||||
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LONG-TERM LIABILITIES: | ||||||||||||
Long-term debt, less current maturities, including related party debt of $9,244, $11,495 and $13,323 and net of unamortized debt issuance costs of $30, $44 and $60 | 16,597 | 20,381 | 23,707 | |||||||||
Retirement plan | 25,212 | 24,737 | 21,713 | |||||||||
Long-term operating lease liabilities, net of current portion | 3,456 | — | — | |||||||||
Other | 7,786 | 7,725 | 7,121 | |||||||||
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TOTAL LONG-TERM LIABILITIES | 53,051 | 52,843 | 52,541 | |||||||||
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TOTAL LIABILITIES | 170,787 | 136,749 | 178,056 | |||||||||
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COMMITMENTS AND CONTINGENCIES | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Class A Common Stock, convertible to Common Stock on a per share basis, cumulative voting rights of ten votes per share, $.01 par value; 10,000,000 shares authorized, 2,597,426 shares issued and outstanding | 26 | 26 | 26 | |||||||||
Common Stock,non-cumulative voting rights of one vote per share, $.01 par value; 17,000,000 shares authorized, 8,937,236, 8,909,406 and 8,898,827 shares issued | 89 | 89 | 89 | |||||||||
Capital in excess of par value | 122,984 | 122,257 | 121,133 | |||||||||
Retained earnings | 111,807 | 137,712 | 116,116 | |||||||||
Accumulated other comprehensive loss | (4,786 | ) | (4,325 | ) | (2,787 | ) | ||||||
Treasury stock, at cost; 117,900 shares of Common Stock | (1,204 | ) | (1,204 | ) | (1,204 | ) | ||||||
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TOTAL STOCKHOLDERS’ EQUITY | 228,916 | 254,555 | 233,373 | |||||||||
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TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ | 399,703 | $ | 391,304 | $ | 411,429 | ||||||
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December 24, 2020 | June 25, 2020 | December 26, 2019 | ||||||||||
LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Revolving credit facility borrowings | $ | 9,169 | $ | 27,008 | $ | 13,495 | ||||||
Current maturities of long-term debt, including related party debt of $605, $585 and $565 and net of unamortized debt issuance costs of $20, $25 and $30 | 3,780 | 5,285 | 7,110 | |||||||||
Accounts payable | 52,140 | 36,323 | 70,979 | |||||||||
Bank overdraft | 1,510 | 2,041 | 1,349 | |||||||||
Accrued payroll and related benefits | 13,470 | 25,641 | 13,429 | |||||||||
Other accrued expenses | 10,907 | 10,729 | 11,027 | |||||||||
Income taxes payable | 7,012 | 5,141 | 347 | |||||||||
TOTAL CURRENT LIABILITIES | 97,988 | 112,168 | 117,736 | |||||||||
LONG-TERM LIABILITIES: | ||||||||||||
Long-term debt, less current maturities, including related party debt of $8,639, $8,947 and $9,244 and net of unamortized debt issuance costs of $10, $19 and $30 | 12,817 | 14,730 | 16,597 | |||||||||
Retirement plan | 32,146 | 31,573 | 25,212 | |||||||||
Long-term operating lease liabilities, net of current portion | 2,704 | 2,990 | 3,456 | |||||||||
Other | 7,899 | 7,758 | 7,786 | |||||||||
TOTAL LONG-TERM LIABILITIES | 55,566 | 57,051 | 53,051 | |||||||||
TOTAL LIABILITIES | 153,554 | 169,219 | 170,787 | |||||||||
COMMITMENTS AND CONTINGENCIES | 0 | 0 | 0 | |||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Class A Common Stock, convertible to Common Stock on a per share basis, cumulative voting rights of ten votes per share, $.01 par value; 10,000,000 shares authorized, 2,597,426 shares issued and outstanding | 26 | 26 | 26 | |||||||||
Common Stock, non-cumulative voting rights of one vote per share, $.01 par value; 17,000,000 shares authorized, 8,983,588, 8,939,890 and 8,937,236 shares issued | 90 | 89 | 89 | |||||||||
Capital in excess of par value | 125,032 | 123,899 | 122,984 | |||||||||
Retained earnings | 128,070 | 124,058 | 111,807 | |||||||||
Accumulated other comprehensive loss | (8,007 | ) | (8,630 | ) | (4,786 | ) | ||||||
Treasury stock, at cost; 117,900 shares of Common Stock | (1,204 | ) | (1,204 | ) | (1,204 | ) | ||||||
TOTAL STOCKHOLDERS’ EQUITY | 244,007 | 238,238 | 228,916 | |||||||||
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ | 397,561 | $ | 407,457 | $ | 399,703 | ||||||
Class A Common Stock | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||||
Balance, June 27, 2019 | 2,597,426 | $ | 26 | 8,909,406 | $ | 89 | $ | 122,257 | $ | 137,712 | $ | (4,325 | ) | $ | (1,204 | ) | $ | 254,555 | ||||||||||||||||||
Net income | 12,926 | 12,926 | ||||||||||||||||||||||||||||||||||
Cash dividends ($3.00 per share) | (34,321 | ) | (34,321 | ) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $86 | 257 | 257 | ||||||||||||||||||||||||||||||||||
Impact of adopting ASU2018-02(a) | 976 | (976 | ) | — | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 633 | 633 | ||||||||||||||||||||||||||||||||||
Balance, September 26, 2019 | 2,597,426 | $ | 26 | 8,909,406 | $ | 89 | $ | 122,890 | $ | 117,293 | $ | (5,044 | ) | $ | (1,204 | ) | $ | 234,050 | ||||||||||||||||||
Net income | 17,461 | 17,461 | ||||||||||||||||||||||||||||||||||
Cash dividends ($2.00 per share) | (22,947 | ) | (22,947 | ) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $86 | 258 | 258 | ||||||||||||||||||||||||||||||||||
Equity award exercises , net of shares withheld for employee taxes | 27,830 | — | (761 | ) | (761 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation expense | 855 | 855 | ||||||||||||||||||||||||||||||||||
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Balance, December 26, 2019 | 2,597,426 | $ | 26 | 8,937,236 | $ | 89 | $ | 122,984 | $ | 111,807 | $ | (4,786 | ) | $ | (1,204 | ) | $ | 228,916 | ||||||||||||||||||
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Class A Common Stock | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||||
Balance, June 28, 2018 | 2,597,426 | $ | 26 | 8,865,475 | $ | 89 | $ | 119,952 | $ | 127,320 | $ | (3,181 | ) | $ | (1,204 | ) | $ | 243,002 | ||||||||||||||||||
Net income | 6,606 | 6,606 | ||||||||||||||||||||||||||||||||||
Cash dividends ($2.55 per share) | (29,074 | ) | (29,074 | ) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $66 | 197 | 197 | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 616 | 616 | ||||||||||||||||||||||||||||||||||
Balance, September 27, 2018 | 2,597,426 | $ | 26 | 8,865,475 | $ | 89 | $ | 120,568 | $ | 104,852 | $ | (2,984 | ) | $ | (1,204 | ) | $ | 221,347 | ||||||||||||||||||
Net income | 11,264 | 11,264 | ||||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $66 | 197 | 197 | ||||||||||||||||||||||||||||||||||
Equity award exercises , net of shares withheld for employee taxes | 33,352 | — | (335 | ) | (335 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation expense | 900 | 900 | ||||||||||||||||||||||||||||||||||
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Balance, December 27, 2018 | 2,597,426 | $ | 26 | 8,898,827 | $ | 89 | $ | 121,133 | $ | 116,116 | $ | (2,787 | ) | $ | (1,204 | ) | $ | 233,373 | ||||||||||||||||||
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Class A Common Stock | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||||
Balance, June 25, 2020 | 2,597,426 | $ | 26 | 8,939,890 | $ | 89 | $ | 123,899 | $ | 124,058 | $ | (8,630 | ) | $ | (1,204 | ) | $ | 238,238 | ||||||||||||||||||
Net income | 12,812 | 12,812 | ||||||||||||||||||||||||||||||||||
Cash dividends ($2.50 per share) | (28,685 | ) | (28,685 | ) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $104 | 312 | 312 | ||||||||||||||||||||||||||||||||||
Equity award exercises | 221 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 622 | 622 | ||||||||||||||||||||||||||||||||||
Balance, September 24, 2020 | 2,597,426 | $ | 26 | 8,940,111 | $ | 89 | $ | 124,521 | $ | 108,185 | $ | (8,318 | ) | $ | (1,204 | ) | $ | 223,299 | ||||||||||||||||||
Net income | 19,885 | 19,885 | ||||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $103 | 311 | 311 | ||||||||||||||||||||||||||||||||||
Equity award exercises, net of shares withheld for employee taxes | 43,477 | 1 | (487 | ) | (486 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation expense | 998 | 998 | ||||||||||||||||||||||||||||||||||
Balance, December 24, 2020 | 2,597,426 | $ | 26 | 8,983,588 | $ | 90 | $ | 125,032 | $ | 128,070 | $ | (8,007 | ) | $ | (1,204 | ) | $ | 244,007 | ||||||||||||||||||
Class A Common Stock | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||||
Balance, June 27, 2019 | 2,597,426 | $ | 26 | 8,909,406 | $ | 89 | $ | 122,257 | $ | 137,712 | $ | (4,325 | ) | $ | (1,204 | ) | $ | 254,555 | ||||||||||||||||||
Net income | 12,926 | 12,926 | ||||||||||||||||||||||||||||||||||
Cash dividends ($3.00 per share) | (34,321 | ) | (34,321 | ) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $86 | 257 | 257 | ||||||||||||||||||||||||||||||||||
Impact of adopting ASU 2018-02 | 976 | (976 | ) | 0 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 633 | 633 | ||||||||||||||||||||||||||||||||||
Balance, September 26, 2019 | 2,597,426 | $ | 26 | 8,909,406 | $ | 89 | $ | 122,890 | $ | 117,293 | $ | (5,044 | ) | $ | (1,204 | ) | $ | 234,050 | ||||||||||||||||||
Net income | 17,461 | 17,461 | ||||||||||||||||||||||||||||||||||
Cash dividends ($2.00 per share) | (22,947 | ) | (22,947 | ) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $86 | 258 | 258 | ||||||||||||||||||||||||||||||||||
Equity award exercises, net of shares withheld for employee taxes | 27,830 | 0 | (761 | ) | (761 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation expense | 855 | 855 | ||||||||||||||||||||||||||||||||||
Balance, December 26, 2019 | 2,597,426 | $ | 26 | 8,937,236 | $ | 89 | $ | 122,984 | $ | 111,807 | $ | (4,786 | ) | $ | (1,204 | ) | $ | 228,916 | ||||||||||||||||||
For the Twenty-six Weeks Ended | ||||||||
December 26, 2019 | December 27, 2018 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 30,387 | $ | 17,870 | ||||
Depreciation and amortization | 9,225 | 8,535 | ||||||
(Gain) loss on disposition of assets, net | (33 | ) | 57 | |||||
Deferred income tax expense | 107 | 433 | ||||||
Stock-based compensation expense | 1,488 | 1,516 | ||||||
Change in assets and liabilities: | ||||||||
Accounts receivable, net | 8,316 | 3,041 | ||||||
Inventories | (15,316 | ) | 2,654 | |||||
Prepaid expenses and other current assets | (345 | ) | (1,659 | ) | ||||
Accounts payable | 28,486 | 9,655 | ||||||
Accrued expenses | (8,964 | ) | 2,833 | |||||
Income taxes payable | (640 | ) | 2,285 | |||||
Other long-term assets and liabilities | 582 | 261 | ||||||
Other, net | 992 | 885 | ||||||
|
|
|
| |||||
Net cash provided by operating activities | 54,285 | 48,366 | ||||||
|
|
|
| |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, plant and equipment | (6,465 | ) | (9,367 | ) | ||||
Proceeds from insurance recoveries | 232 | — | ||||||
Other | 85 | 44 | ||||||
|
|
|
| |||||
Net cash used in investing activities | (6,148 | ) | (9,323 | ) | ||||
|
|
|
| |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net short-term borrowings (repayments) | 13,495 | (6,737 | ) | |||||
Debt issue costs | (218 | ) | — | |||||
Principal payments on long-term debt | (4,031 | ) | (3,588 | ) | ||||
Increase in bank overdraft | 448 | 1,825 | ||||||
Dividends paid | (57,268 | ) | (29,074 | ) | ||||
Taxes paid related to net share settlement of equity awards | (761 | ) | (335 | ) | ||||
|
|
|
| |||||
Net cash used in financing activities | (48,335 | ) | (37,909 | ) | ||||
|
|
|
| |||||
NET (DECREASE) INCREASE IN CASH | (198 | ) | 1,134 | |||||
Cash, beginning of period | 1,591 | 1,449 | ||||||
|
|
|
| |||||
Cash, end of period | $ | 1,393 | $ | 2,583 | ||||
|
|
|
| |||||
Supplemental disclosure ofnon-cash activities: | ||||||||
Right-of-use assets recognized at ASUNo. 2016-02 transition, see Note 3 | $ | 5,361 | $ | — |
For the Twenty-six Weeks Ended | ||||||||
December 24, 2020 | �� | December 26, 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 32,697 | $ | 30,387 | ||||
Depreciation and amortization | 9,089 | 9,225 | ||||||
Gain on disposition of assets, net | (2,530 | ) | (33 | ) | ||||
Deferred income tax (benefit) expense | (500 | ) | 107 | |||||
Stock-based compensation expense | 1,620 | 1,488 | ||||||
Change in assets and liabilities: | ||||||||
Accounts receivable, net | (1,247 | ) | 8,316 | |||||
Inventories | 16,697 | (15,316 | ) | |||||
Prepaid expenses and other current assets | (1,557 | ) | (345 | ) | ||||
Accounts payable | 16,244 | 28,486 | ||||||
Accrued expenses | (11,993 | ) | (8,964 | ) | ||||
Income taxes payable | 1,871 | (640 | ) | |||||
Other long-term assets and liabilities | 344 | 582 | ||||||
Other, net | 1,200 | 992 | ||||||
Net cash provided by operating activities | 61,935 | 54,285 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, plant and equipment | (11,121 | ) | (6,465 | ) | ||||
Proceeds from insurance recoveries | 0 | 232 | ||||||
Other | 387 | 85 | ||||||
Net cash used in investing activities | (10,734 | ) | (6,148 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net short-term (repayments) borrowings | (17,839 | ) | 13,495 | |||||
Debt issue costs | 0 | (218 | ) | |||||
Principal payments on long-term debt | (3,432 | ) | (4,031 | ) | ||||
(Decrease) increase in bank overdraft | (531 | ) | 448 | |||||
Dividends paid | (28,685 | ) | (57,268 | ) | ||||
Taxes paid related to net share settlement of equity awards | (486 | ) | (761 | ) | ||||
Net cash used in financing activities | (50,973 | ) | (48,335 | ) | ||||
NET INCREASE (DECREASE) IN CASH | 228 | (198 | ) | |||||
Cash, beginning of period | 1,535 | 1,591 | ||||||
Cash, end of period | $ | 1,763 | $ | 1,393 | ||||
Supplemental disclosure of non-cash activities: | ||||||||
Right-of-use No. 2016-02 transition | $ | 0 | $ | 5,361 |
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
Distribution Channel | December 26, 2019 | December 27, 2018 | December 26, 2019 | December 27, 2018 | ||||||||||||
Consumer | $ | 188,086 | $ | 195,478 | $ | 345,232 | $ | 334,922 | ||||||||
Commercial Ingredients | 34,247 | 31,454 | 71,135 | 68,656 | ||||||||||||
Contract Packaging | 24,090 | 26,385 | 47,902 | 54,027 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 246,423 | $ | 253,317 | $ | 464,269 | $ | 457,605 | ||||||||
|
|
|
|
|
|
|
|
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
Distribution Channel | December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | ||||||||||||
Consumer | $ | 192,029 | $ | 188,086 | $ | 358,786 | $ | 345,232 | ||||||||
Commercial Ingredients | 20,536 | 34,247 | 43,347 | 71,135 | ||||||||||||
Contract Packaging | 21,010 | 24,090 | 41,715 | 47,902 | ||||||||||||
Total | $ | 233,575 | $ | 246,423 | $ | 443,848 | $ | 464,269 | ||||||||
On June 28, 2019 we adopted ASUNo. 2016-02,Leases (“Topic 842”)using the alternative transition method under ASUNo. 2018-11, which permitted application of the new guidance at the beginning of the period of adoption, with comparative periods continuing to be reported under the previous lease accounting guidance in Topic 840. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We did not elect the practical expedients regarding hindsight or land easements. See Note 15 – “Recent Accounting Pronouncements” for additional information.
Upon adoption of the new standard, we recognized operating leaseright-of-use assets and liabilities on our Consolidated Balance Sheet of $5,361 and $5,320 respectively. We utilized a portfolio approach to establish discount rates for leases that are similar. Discount rates ranging from 4.2% to 5.8% were used when determining the present value of future lease payments. All of our lessee arrangements that were classified as operating leases under Topic 840 continue to be classified as operating leases since the adoption of Topic 842, and the pattern of lease expense recognition is unchanged. The adoption of Topic 842 did not materially impact our consolidated net earnings and had no impact on cash flows.
Topic 842 allows for the election as an
December 26, 2019 | Affected Line Item in Consolidated Balance Sheet | |||||
Assets | ||||||
Operating leaseright-of-use assets | $ | 4,823 | Operating leaseright-of-use assets | |||
|
| |||||
Total leaseright-of-use assets | $ | 4,823 | ||||
|
| |||||
Liabilities | ||||||
Current: | ||||||
Operating leases | $ | 1,354 | Other accrued expenses | |||
Noncurrent: | ||||||
Operating leases | 3,456 | Long-term operating lease liabilities | ||||
|
| |||||
Total lease liabilities | $ | 4,810 | ||||
|
|
December 24, 2020 | June 25, 2020 | December 26, 2019 | Affected Line Item in Consolidated Balance Sheet | |||||||||||
Assets | ||||||||||||||
Operating lease right-of-use | $ | 4,119 | $ | 4,351 | $ | 4,823 | Operating lease right-of-use | |||||||
Total lease right-of-use | $ | 4,119 | $ | 4,351 | $ | 4,823 | ||||||||
Liabilities | ||||||||||||||
Current: | ||||||||||||||
Operating leases | $ | 1,429 | $ | 1,376 | $ | 1,354 | Other accrued expenses | |||||||
Noncurrent: | ||||||||||||||
Operating leases | 2,704 | 2,990 | 3,456 | Long-term operating lease liabilities | ||||||||||
Total lease liabilities | $ | 4,133 | $ | 4,366 | $ | 4,810 | ||||||||
For the Quarter ended December 26, 2019 | For the Twenty-six weeks ended December 26, 2019 | |||||||
Operating lease costs(a) | $ | 460 | $ | 834 | ||||
Variable lease costs(b) | 15 | 31 | ||||||
|
|
|
| |||||
Total Lease Cost | $ | 475 | $ | 865 | ||||
|
|
|
|
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | |||||||||||||
Operating lease costs (a) | $ | 477 | $ | 460 | $ | 950 | $ | 834 | ||||||||
Variable lease costs (b) | 17 | 15 | 37 | 31 | ||||||||||||
Total Lease Cost | $ | 494 | $ | 475 | $ | 987 | $ | 865 | ||||||||
(a) | Includes short-term leases which are immaterial. |
(b) | Variable lease costs consist of sales tax. |
For the Twenty-six weeks ended December 26, 2019 | ||||
Operating cash flows information: | ||||
Cash paid for amounts included in measurements for lease liabilities | $ | 770 | ||
Non-cash activity: | ||||
Right-of-use assets obtained in exchange for new operating lease obligations | $ | 163 | ||
December 26, 2019 | ||||
Weighted Average Remaining Lease Term (in years) | 3.8 | |||
Weighted Average Discount Rate | 4.5 | % |
For the Twenty-six Weeks Ended | ||||||||
December 24, 2020 | December 26, 2019 | |||||||
Operating cash flows information: | ||||||||
Cash paid for amounts included in measurements for lease liabilities | $ | 810 | $ | 770 | ||||
Non-cash activity: | ||||||||
Right-of-use | $ | 490 | $ | 163 |
December 24, 2020 | June 25, 2020 | December 26, 2019 | ||||||||||
Weighted Average Remaining Lease Term (in years) | 3.1 | 3.4 | 3.8 | |||||||||
Weighted Average Discount Rate | 4.3 | % | 4.4 | % | 4.5 | % |
Fiscal year ending | ||||
June 25, 2020 (excluding thetwenty-six weeks ended December 26, 2019) | $ | 792 | ||
June 24, 2021 | 1,439 | |||
June 30, 2022 | 1,316 | |||
June 29, 2023 | 1,065 | |||
June 27, 2024 | 469 | |||
Thereafter | 132 | |||
|
| |||
Total lease payment | 5,213 | |||
Less imputed interest | (403 | ) | ||
|
| |||
Present value of operating lease liabilities | $ | 4,810 | ||
|
|
As of
Fiscal year ending | ||||
June 24, 2021 (excluding the twenty-six weeks ended December 24, 2020) | $ | 801 | ||
June 30, 2022 | 1,489 | |||
June 29, 2023 | 1,236 | |||
June 27, 2024 | 593 | |||
June 26, 2025 | 231 | |||
June 25, 2026 | 59 | |||
Thereafter | 0 | |||
Total lease payment | 4,409 | |||
Less imputed interest | (276 | ) | ||
Present value of operating lease liabilities | $ | 4,133 | ||
Disclosures related to periods prior to adoption
As the Company has not recast prior year information for its adoption of Topic 842, the following presents its future minimum lease payments for operating leases under Topic 840 on June 27, 2019:
Fiscal year ending | ||||
June 25, 2020 | $ | 1,715 | ||
June 24, 2021 | 1,540 | |||
June 30, 2022 | 1,392 | |||
June 29, 2023 | 1,109 | |||
June 27, 2024 | 464 | |||
Thereafter | 133 | |||
|
| |||
$ | 6,353 |
For the Quarter ended December 26, 2019 | For the Twenty-six weeks ended December 26, 2019 | |||||||
Lease income related to lease payments | $ | 462 | $ | 1,005 |
For the Quarter ended | For the Twenty-six weeks ended | |||||||||||||||
December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | |||||||||||||
Lease income related to lease payments | $ | 452 | $ | 462 | $ | 903 | $ | 1,005 |
Fiscal year ending | ||||
June 25, 2020 (excluding thetwenty-six weeks ended December 26, 2019) | $ | 1,082 | ||
June 24, 2021 | 1,948 | |||
June 30, 2022 | 1,707 | |||
June 29, 2023 | 1,737 | |||
June 27, 2024 | 1,766 | |||
Thereafter | 2,512 | |||
|
| |||
$ | 10,752 |
below.
Fiscal year ending | ||||
June 24, 2021 (excluding the twenty-six weeks ended December 24, 2020) | $ | 983 | ||
June 30, 2022 | 1,708 | |||
June 29, 2023 | 1,737 | |||
June 27, 2024 | 1,766 | |||
June 26, 2025 | 1,228 | |||
June 25, 2026 | 670 | |||
Thereafter | 614 | |||
$8,706 |
December 26, 2019 | June 27, 2019 | December 27, 2018 | ||||||||||
Raw material and supplies | $ | 81,135 | $ | 58,927 | $ | 87,717 | ||||||
Work-in-process and finished goods | 91,205 | 98,097 | 83,991 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 172,340 | $ | 157,024 | $ | 171,708 | ||||||
|
|
|
|
|
|
December 24, 2020 | June 25, 2020 | December 26, 2019 | ||||||||||||||
Raw material and supplies | $ | 66,793 | $ | 69,276 | $ | $$ | 81,135 | |||||||||
Work-in-process | 88,578 | 102,792 | 91,205 | |||||||||||||
Total | $ | 155,371 | $ | 172,068 | $ | 172,340 | ||||||||||
December 26, 2019 | June 27, 2019 | December 27, 2018 | ||||||||||
Customer relationships | $ | 21,100 | $ | 21,100 | $ | 21,100 | ||||||
Brand names | 16,990 | 16,990 | 16,990 | |||||||||
Non-compete agreement | 270 | 270 | 270 | |||||||||
|
|
|
|
|
| |||||||
38,360 | 38,360 | 38,360 | ||||||||||
Less accumulated amortization: | ||||||||||||
Customer relationships | (15,438 | ) | (14,466 | ) | (13,494 | ) | ||||||
Brand names | (9,527 | ) | (9,182 | ) | (8,838 | ) | ||||||
Non-compete agreement | (113 | ) | (86 | ) | (58 | ) | ||||||
|
|
|
|
|
| |||||||
(25,078 | ) | (23,734 | ) | (22,390 | ) | |||||||
|
|
|
|
|
| |||||||
Net intangible assets | $ | 13,282 | $ | 14,626 | $ | 15,970 | ||||||
|
|
|
|
|
|
December 24, 2020 | June 25, 2020 | December 26, 2019 | ||||||||||
Customer relationships | $ | 21,100 | $ | 21,100 | $ | 21,100 | ||||||
Brand names | 16,990 | 16,990 | 16,990 | |||||||||
Non-compete agreement | 270 | 270 | 270 | |||||||||
38,360 | 38,360 | 38,360 | ||||||||||
Less accumulated amortization: | ||||||||||||
Customer relationships | (17,008 | ) | (16,223 | ) | (15,438 | ) | ||||||
Brand names | (10,217 | ) | (9,873 | ) | (9,527 | ) | ||||||
Non-compete agreement | (167 | ) | (139 | ) | (113 | ) | ||||||
(27,392) | (26,235) | (25,078) | ||||||||||
Net intangible assets | $ | 10,968 | $ | 12,125 | $ | 13,282 | ||||||
Fiscal year ending | ||||
June 24, 2021 | $ | 2,165 | ||
June 30, 2022 | 1,896 | |||
June 29, 2023 | 1,657 | |||
June 27, 2024 | 1,414 | |||
June 26, 2025 | 1,156 |
Fiscal year ending | ||||
June 30, 2022 | $ | 1,896 | ||
June 29, 2023 | 1,657 | |||
June 27, 2024 | 1,414 | |||
June 26, 2025 | 1,156 | |||
June 25, 2026 | 861 |
24, 2020.
On February 7, 2008, we entered into a
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
December 26, 2019 | December 27, 2018 | December 26, 2019 | December 27, 2018 | |||||||||||||
Weighted average number of shares outstanding – basic | 11,458,524 | 11,425,566 | 11,451,542 | 11,415,787 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and restricted stock units | 66,863 | 53,865 | 80,640 | 69,894 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Weighted average number of shares outstanding – diluted | 11,525,387 | 11,479,431 | 11,532,182 | 11,485,681 | ||||||||||||
|
|
|
|
|
|
|
|
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | |||||||||||||
Weighted average number of shares outstanding – basic | 11,493,759 | 11,458,524 | 11,485,523 | 11,451,542 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Restricted stock units | 39,767 | 66,863 | 56,534 | 80,640 | ||||||||||||
Weighted average number of shares outstanding – diluted | 11,533,526 | 11,525,387 | 11,542,057 | 11,532,182 | ||||||||||||
Restricted Stock Units | Shares | Weighted Average Grant Date Fair Value | ||||||
Outstanding at June 27, 2019 | 188,992 | $ | 46.79 | |||||
Activity: | ||||||||
Granted | 38,572 | 91.47 | ||||||
Vested(a) | (36,179 | ) | 60.56 | |||||
Forfeited | (7,439 | ) | 63.62 | |||||
|
|
|
| |||||
Outstanding at December 26, 2019 | 183,946 | $ | 52.77 | |||||
|
|
|
|
Restricted Stock Units | Shares | Weighted Average Grant Date Fair Value | ||||||
Outstanding at June 25, 2020 | 166,879 | $ | 51.62 | |||||
Activity: | ||||||||
Granted | 54,966 | 68.97 | ||||||
Vested (a) | (50,602 | ) | 47.76 | |||||
Forfeited | (1,064 | ) | 68.66 | |||||
Outstanding at December 24, 2020 | 170,179 | $ | 58.27 | |||||
(a) | The number of RSUs vested includes shares that were withheld on behalf of employees to satisfy statutory tax withholding requirements. |
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
December 26, 2019 | December 27, 2018 | December 26, 2019 | December 27, 2018 | |||||||||||||
Stock-based compensation expense | $ | 855 | $ | 900 | $ | 1,488 | $ | 1,516 |
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | |||||||||||||
Stock-based compensation expense | $ | 998 | $ | 855 | $ | 1,620 | $ | 1,488 |
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
December 26, 2019 | December 27, 2018 | December 26, 2019 | December 27, 2018 | |||||||||||||
Service cost | $ | 178 | $ | 153 | $ | 356 | $ | 305 | ||||||||
Interest cost | 223 | 223 | 446 | 447 | ||||||||||||
Amortization of prior service cost | 240 | 240 | 479 | 479 | ||||||||||||
Amortization of loss | 104 | 23 | 208 | 47 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net periodic benefit cost | $ | 745 | $ | 639 | $ | 1,489 | $ | 1,278 | ||||||||
|
|
|
|
|
|
|
|
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | |||||||||||||
Service cost | $ | 236 | $ | 178 | $ | 472 | $ | 356 | ||||||||
Interest cost | 215 | 223 | 429 | 446 | ||||||||||||
Amortization of prior service cost | 119 | 240 | 239 | 479 | ||||||||||||
Amortization of loss | 295 | 104 | 591 | 208 | ||||||||||||
Net periodic benefit cost | $ | 865 | $ | 745 | $ | 1,731 | $ | 1,489 | ||||||||
Changes to AOCL(a) | For the Twenty-Six Weeks Ended | |||||||
December 26, 2019 | December 27, 2018 | |||||||
Balance at beginning of period | $ | (4,325 | ) | $ | (3,181 | ) | ||
Other comprehensive income before reclassifications | — | — | ||||||
Amounts reclassified from accumulated other comprehensive loss | 687 | 526 | ||||||
Tax effect | (172 | ) | (132 | ) | ||||
|
|
|
| |||||
Net current-period other comprehensive income | 515 | 394 | ||||||
Impact of adopting ASU2018-02(b) | (976 | ) | — | |||||
|
|
|
| |||||
Balance at end of period | $ | (4,786 | ) | $ | (2,787 | ) | ||
|
|
|
|
|
|
For the Twenty-Six Weeks Ended | ||||||||
Changes to AOCL (a) | December 24, 2020 | December 26, 2019 | ||||||
Balance at beginning of period | $ | (8,630 | ) | $ | (4,325 | ) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss | 830 | 687 | ||||||
Tax effect | (207 | ) | (172 | ) | ||||
Net current-period other comprehensive income | 623 | 515 | ||||||
Impact of adopting ASU 2018-02 | 0 | (976 | ) | |||||
Balance at end of period | $ | (8,007 | ) | $ | (4,786 | ) | ||
Affected line item in the Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||||||
Reclassifications from AOCL to earnings(c) | December 26, 2019 | December 27, 2018 | December 26, 2019 | December 27, 2018 | ||||||||||||||||
Amortization of defined benefit pension items: | ||||||||||||||||||||
Unrecognized prior service cost | $ | (240 | ) | $ | (240 | ) | $ | (479 | ) | $ | (479 | ) | Other expense | |||||||
Unrecognized net loss | (104 | ) | (23 | ) | (208 | ) | (47 | ) | Other expense | |||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total before tax | (344 | ) | (263 | ) | (687 | ) | (526 | ) | ||||||||||||
Tax effect | 86 | 66 | 172 | 132 | Income tax expense | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Amortization of defined pension items, net of tax | $ | (258 | ) | $ | (197 | ) | $ | (515 | ) | $ | (394 | ) | ||||||||
|
|
|
|
|
|
|
|
|
For the Quarter Ended | For the Twenty-six Weeks Ended | Affected line item in the Consolidated Statements of Comprehensive Income | ||||||||||||||||
Reclassifications from AOCL to earnings (b) | December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | ||||||||||||||
Amortization of defined benefit pension items: | ||||||||||||||||||
Unrecognized prior service cost | $ | (119 | ) | $ | (240 | ) | $ | (239 | ) | $ | (479 | ) | Other expense | |||||
Unrecognized net loss | (295 | ) | (104 | ) | (591 | ) | (208 | ) | Other expense | |||||||||
Total before tax | (414 | ) | (344 | ) | (830 | ) | (687 | ) | ||||||||||
Tax effect | 103 | 86 | 207 | 172 | Income tax expense | |||||||||||||
Amortization of defined pension items, net of tax | $ | (311 | ) | $ | (258 | ) | $ | (623 | ) | $ | (515 | ) | ||||||
Authoritative guidance issued by the
Level 1 | – | Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. | ||
Level 2 | – | Observable inputs other than quoted prices in active markets. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. | ||
Level 3 | – | Unobservable inputs for which there is little or no market data available. |
December 26, 2019 | June 27, 2019 | December 27, 2018 | ||||||||||
Carrying value of long-term debt: | $ | 23,767 | $ | 27,798 | $ | 31,061 | ||||||
Fair value of long-term debt: | 24,164 | 27,720 | 30,176 |
December 24, 2020 | June 25, 2020 | December 26, 2019 | ||||||||||
Carrying value of long-term debt: | $ | 16,627 | $ | 20,059 | $ | 23,767 | ||||||
Fair value of long-term debt: | 17,180 | 20,186 | 24,164 |
their original condition.
year and the facility will continue to be used to store and ship inshell peanuts through the remainder of fiscal 2021. We also expect to spend the remainder of the 2021 fiscal year cleaning and preparing the facility for sale or other utilization in our operations. Employee separation and related closure costs were immaterial for all periods presented.
We have implemented processes and information technology tools to assist in our compliance with Topic 842. We have also updated our accounting policies and internal controls that are impacted by the new guidance. We adopted ASUNo. 2016-02 utilizing the modified retrospective transition method and did not recast comparative periods in transition to the new standard. In addition, the new standard provides a number of optional practical expedients in transition. We elected the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect theuse-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The adoption of this standard resulted in the recognition of operating leaseright-of-use assets and liabilities on our Consolidated Balance Sheet of $5,361 and $5,320, respectively, during the first quarter of fiscal 2020. The new standard also provides practical expedients for an entity’s initial and ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. We also elected the practical expedient to not separate lease andnon-lease components for all of our leases. Refer to Note 3 – “Leases” for additional information regarding the Company’s leases.
In February 2018, the FASB issued ASUNo. 2018-02“Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The amendments in this Update allow a reclassification from accumulated other comprehensive income (loss) (“AOCL”) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The amendments in this Update also require certain disclosures about stranded tax effects. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted ASUNo. 2018-02 in the first quarter of fiscal 2020 and reclassified $976 from AOCL to retained earnings. Refer to Note 10 – “Accumulated Other Comprehensive Loss” for additional detail. ASU2018-02 was not applied retrospectively. No other income tax effects related to the application of the Tax Cuts and Jobs Act were reclassified from AOCL to retained earnings.
The following recent accounting pronouncements have not yet been adopted:
In December 2019, the FASB issued ASUNo. 2019-12 “Income Taxes (Topic 740)
partners in fiscal 2021.
other
2020.
2020.
2020.
2020.
2020.
A 0.7% decrease in sales volume also contributed to the overall decline in net sales.
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
Product Type | December 26, 2019 | December 27, 2018 | December 26, 2019 | December 27, 2018 | ||||||||||||
Peanuts | 15.8 | % | 15.7 | % | 16.8 | % | 17.2 | % | ||||||||
Pecans | 16.2 | 20.5 | 13.0 | 16.5 | ||||||||||||
Cashews & Mixed Nuts | 22.7 | 22.1 | 22.7 | 22.3 | ||||||||||||
Walnuts | 8.7 | 10.5 | 7.9 | 10.3 | ||||||||||||
Almonds | 13.2 | 11.8 | 14.8 | 12.8 | ||||||||||||
Trail & Snack Mixes | 18.3 | 14.5 | 19.3 | 15.6 | ||||||||||||
Other | 5.1 | 4.9 | 5.5 | 5.3 | ||||||||||||
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| |||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
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|
For the Quarter Ended | For the Twenty-six Weeks Ended | |||||||||||||||
Product Type | December 24, 2020 | December 26, 2019 | December 24, 2020 | December 26, 2019 | ||||||||||||
Peanuts | 18.8 | % | 15.8 | % | 19.1 | % | 16.8 | % | ||||||||
Pecans | 15.0 | 16.2 | 12.0 | 13.0 | ||||||||||||
Cashews & Mixed Nuts | 23.1 | 22.7 | 23.4 | 22.7 | ||||||||||||
Walnuts | 7.2 | 8.7 | 6.9 | 7.9 | ||||||||||||
Almonds | 9.2 | 13.2 | 10.8 | 14.8 | ||||||||||||
Trail & Snack Mixes | 22.2 | 18.3 | 22.5 | 19.3 | ||||||||||||
Other | 4.5 | 5.1 | 5.3 | 5.5 | ||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
For the Quarter Ended | ||||||||||||||||
Distribution Channel | December 26, 2019 | December 27, 2018 | Change | Percent Change | ||||||||||||
Consumer(1) | $ | 188,086 | $ | 195,478 | $ | (7,392 | ) | (3.8 | )% | |||||||
Commercial Ingredients | 34,247 | 31,454 | 2,793 | 8.9 | ||||||||||||
Contract Packaging | 24,090 | 26,385 | (2,295 | ) | (8.7 | ) | ||||||||||
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| |||||||||
Total | $ | 246,423 | $ | 253,317 | $ | (6,894 | ) | (2.7 | )% | |||||||
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For the Quarter Ended | ||||||||||||||||||||||||
Distribution Channel | December 24, 2020 | Percentage of Total | December 26, 2019 | Percentage of Total | $ Change | Percent Change | ||||||||||||||||||
Consumer (1) | $ | 192,029 | 82.2 | % | $ | 188,086 | 76.3 | % | $ | 3,943 | 2.1 | % | ||||||||||||
Commercial Ingredients | 20,536 | 8.8 | 34,247 | 13.9 | (13,711 | ) | (40.0 | ) | ||||||||||||||||
Contract Packaging | 21,010 | 9.0 | 24,090 | 9.8 | (3,080 | ) | (12.8 | ) | ||||||||||||||||
Total | $ | 233,575 | 100.0 | % | $ | 246,423 | 100.0 | % | $ | (12,848 | ) | (5.2 | )% | |||||||||||
(1) | Sales of branded products were approximately Fisher products accounting for |
For theTwenty-six Weeks Ended | ||||||||||||||||
Distribution Channel | December 26, 2019 | December 27, 2018 | Change | Percent Change | ||||||||||||
Consumer(1) | $ | 345,232 | $ | 334,922 | $ | 10,310 | 3.1 | % | ||||||||
Commercial Ingredients | 71,135 | 68,656 | 2,479 | 3.6 | ||||||||||||
Contract Packaging | 47,902 | 54,027 | (6,125 | ) | (11.3 | ) | ||||||||||
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| |||||||||
Total | $ | 464,269 | $ | 457,605 | $ | 6,664 | 1.5 | % | ||||||||
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For the Twenty-six Weeks Ended | ||||||||||||||||||||||||
Distribution Channel | December 24, 2020 | Percentage of Total | December 26, 2019 | Percentage of Total | $ Change | Percent Change | ||||||||||||||||||
Consumer (1) | $ | 358,786 | 80.8 | % | $ | 345,232 | 74.4 | % | $ | 13,554 | 3.9 | % | ||||||||||||
Commercial Ingredients | 43,347 | 9.8 | 71,135 | 15.3 | (27,788 | ) | (39.1 | ) | ||||||||||||||||
Contract Packaging | 41,715 | 9.4 | 47,902 | 10.3 | (6,187 | ) | (12.9 | ) | ||||||||||||||||
Total | $ | 443,848 | 100.0 | % | $ | 464,269 | 100.0 | % | $ | (20,421 | ) | (4.4 | )% | |||||||||||
(1) | Sales of branded products were approximately twenty-six weeks of fiscal Fisher twenty-six weeks of fiscal products accounting for |
customers.
comparison.
the first quarter of fiscal 2021.
tree nuts.
2020.
sales pounds shipped.
the second quarter of fiscal 2020.
2020.
freight expense for the same reasons discussed in the quarterly comparison.
2020.
Interest2020. The decrease in interest expense in the year to date comparison resulted from lower weighted average interest rates from the reduction of long-term debt and was largely offset by higher average short-term debt levels.
Interest Net
Rental and Miscellaneous Expense, Net
Net rental and miscellaneous expense was $0.3 million for the second quarter of both fiscal 2020 and fiscal 2019.2020. Net rental and miscellaneous expense was $0.8 million for the first
2020.
2020.
Net2021, compared to net income wasof $30.4 million, or $2.65 per common share basic and $2.64 per common share diluted, for the first2020, compared to net income of $17.9 million, or $1.57 per common share basic and $1.56 per share diluted, for the firsttwenty-six weeks of fiscal 2019.
2020.
December 26, 2019 | December 27, 2018 | $ Change | ||||||||||
Operating activities | $ | 54,285 | $ | 48,366 | $ | 5,919 | ||||||
Investing activities | (6,148 | ) | (9,323 | ) | 3,175 | |||||||
Financing activities | (48,335 | ) | (37,909 | ) | (10,426 | ) | ||||||
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| |||||||
Net increase in cash | $ | (198 | ) | $ | 1,134 | $ | (1,332 | ) | ||||
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|
|
December 24, 2020 | December 26, 2019 | $ Change | ||||||||||
Operating activities | $ | 61,935 | $ | 54,285 | $ | 7,650 | ||||||
Investing activities | (10,734 | ) | (6,148 | ) | (4,586 | ) | ||||||
Financing activities | (50,973 | ) | (48,335 | ) | (2,638 | ) | ||||||
Net increase in cash | $ | 228 | $ | (198 | ) | $ | 426 | |||||
2020.
all major tree nuts and lower quantities of peanuts on hand.
pecans.
2020.
The Credit Facility as most recently amended in November 2017, is secured by substantially all of our assets other than machinery and equipment, real property, and fixtures and matures on July 7, 2021.March 5, 2025. The Mortgage Facility is secured by mortgages on essentially all of our owned real property located in Elgin, Illinois, Gustine, California and Garysburg, North Carolina (the “Encumbered Properties”).
We are currently updating the Credit Facility agreement and expect the term to extend another five years. The legal costs incurred to date have been capitalized and will be amortized over the length of the new agreement.
Facility and a total principal amount of $7.4 million was outstanding.
repaid in full.
25, 2020.
2021.
Exhibit No. | Description | |
32.2 | Certification of Michael J. Valentine pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* | Indicates a management contract or compensatory plan or arrangement. |
JOHN B. SANFILIPPO & SON, INC. | ||
By | ||
/s/ MICHAEL J. VALENTINE | ||
Michael J. Valentine | ||
Chief Financial Officer, Group President and Secretary |
35