Exhibit 99.1
J & J Snack Foods Announces Down Earnings
PENNSAUKEN, N.J.--(BUSINESS WIRE)--J & J Snack Foods Corp. (NASDAQ:JJSF) today announced record sales but lower earnings for its second quarter and six months ended March 29, 2008.
Sales increased 11% to $144.2 million from $130.0 million in last year's second quarter. Net earnings decreased 25% to $4.0 million from $5.3 million last year. Earnings per diluted share were $.21 for the March quarter compared to $.28 last year. Operating income decreased 31% to $5.7 million this year from $8.2 million in the year ago period.
For the six months ended March 29, 2008, sales increased 13% to $275.1 million from $244.2 million in last year’s first half. Net earnings decreased 35% to $5.9 million in the six months from $9.1 million last year. Earnings per diluted share were $.31 for the six months compared to $.48 last year. Operating income decreased 40% to $8.0 million from $13.3 million in the year ago period.
Gerald B. Shreiber, J & J’s President and Chief Executive Officer, commented, “Although our overall sales increased, we continue to be impacted by escalating input costs, particularly commodities such as flour and dairy products.”
J & J Snack Foods Corp.’s principal products include SUPERPRETZEL, PRETZEL FILLERS and other soft pretzels, ICEE, SLUSH PUPPIE and ARCTIC BLAST frozen beverages, LUIGI’S, MAMA TISH’S, SHAPE UPS, MINUTE MAID* and BARQ’S** and CHILL*** frozen juice bars and ices, WHOLE FRUIT sorbet, FRUIT-A-FREEZE frozen fruit bars, MARY B’S biscuits and dumplings, DADDY RAY’S fig and fruit bars, TIO PEPE’S churros, THE FUNNEL CAKE FACTORY funnel cakes, and MRS. GOODCOOKIE, CAMDEN CREEK, COUNTRY HOME and READI-BAKE cookies. J & J has manufacturing facilities in Pennsauken, Bridgeport and Bellmawr, New Jersey; Scranton, Hatfield and Chambersburg, Pennsylvania; Carrollton, Texas; Atlanta, Georgia; Moscow Mills, Missouri; Pensacola, Florida and Vernon and Newport, California.
*MINUTE MAID is a registered trademark of The Coca-Cola Company.
**BARQ’S is a registered trademark of Barq’s Inc.
***CHILL is a registered trademark of Wells Dairy, Inc.
| | |
| | Consolidated Statement of Operations |
| | Three Months Ended | | Six Months Ended |
| | March 29, | | March 31, | | March 29, | | March 31, |
| | 2008 | | 2007 | | 2008 | | 2007 |
| | (in thousands) |
| | |
| Net sales | | $ | 144,229 | | $ | 130,040 | | $ | 275,127 | | $ | 244,182 |
| Cost of goods sold | | | 103,829 | | | 87,633 | | | 199,340 | | | 166,527 |
| Gross profit | | | 40,400 | | | 42,407 | | | 75,787 | | | 77,655 |
| Operating expenses | | | 34,720 | | | 34,212 | | | 67,771 | | | 64,325 |
| Operating income | | | 5,680 | | | 8,195 | | | 8,016 | | | 13,330 |
| Other income | | | 658 | | | 507 | | | 1,437 | | | 1,463 |
Earnings before income taxes | | | 6,338 | | | 8,702 | | | 9,453 | | | 14,793 |
| Income taxes | | | 2,340 | | | 3,369 | | | 3,558 | | | 5,655 |
| Net earnings | | $ | 3,998 | | $ | 5,333 | | $ | 5,895 | | $ | 9,138 |
| | |
| Earnings per diluted share | | $ | .21 | | $ | .28 | | $ | .31 | | $ | .48 |
| Earnings per basic share | | $ | .21 | | $ | .29 | | $ | .31 | | $ | .49 |
Weighted average number of diluted shares | | | 18,982 | | | 19,014 | | | 19,029 | | | 18,954 |
Weighted average number of basic shares | | | 18,785 | | | 18,601 | | | 18,777 | | | 18,570 |
| | |
| | Consolidated Balance Sheets |
| | March 29, 2008 | | September 29, 2007 |
| | (in thousands) |
| |
Current assets, excluding auction market preferred stock | | $ | 126,462 | | $ | 124,164 |
| Property, plant & equipment, net | | | 93,957 | | | 93,222 |
| Goodwill | | | 60,314 | | | 60,314 |
| Other intangibles, net | | | 55,949 | | | 58,333 |
| Auction market preferred stock | | | 45,200 | | | 41,200 |
| Other | | | 3,118 | | | 3,055 |
| Total | | $ | 385,000 | | $ | 380,288 |
| |
| Current liabilities | | $ | 66,424 | | $ | 64,601 |
| Long-term obligations under capital leases | | | 428 | | | 474 |
| Deferred income taxes | | | 19,180 | | | 19,180 |
| Other long-term liabilities | | | 1,950 | | | 451 |
| Stockholders' equity | | | 297,018 | | | 295,582 |
| Total | | $ | 385,000 | | $ | 380,288 |
The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof.
CONTACT:
J & J Snack Foods Corp.
Dennis G. Moore
Senior Vice President
Chief Financial Officer
856-665-9533, x 268
