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 third quarter and nine months ended June 28, 2008.
Sales for the third quarter increased 9% to $176.8 million from $162.5 million in last year's third quarter. Net earnings decreased 13% to $10.8 million from $12.5 million last year. Earnings per diluted share were $.57 for the June quarter compared to $.66 last year. Operating income decreased 7% to $17.4 million this year from $18.8 million in the year ago period.
For the nine months ended June 28, 2008, sales increased 11% to $452.0 million from $406.7 million in last year's nine months. Net earnings decreased 23% to $16.7 million in the nine months from $21.6 million last year. Earnings per diluted share were $ .88 for the nine months compared to $1.14 last year. Operating income decreased 21% to $25.5 million from $32.1 million in the year ago period.
Gerald B. Shreiber, J & J’s President and Chief Executive Officer, commented; “Despite overall sales growth of over 9 percent and significantly improved operating income from our retail supermarket segment, our overall earnings declined. Although pricing initiatives helped to counter soaring input costs, particularly wheat and dairy based ingredients, our profits for the quarter were negatively impacted by the higher costs.”
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, DADDYRAY’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 | | Nine Months Ended |
| | June 28, | | June 30, | | June 28, | | June 30, |
| | 2008 | | 2007 | | 2008 | | 2007 |
| | (in thousands) |
| | | | | | | | |
| Net sales | | $176,839 | | $162,510 | | $451,966 | | $406,692 |
| Cost of goods sold | | 121,087 | | 106,852 | | 320,427 | | 273,379 |
| Gross profit | | 55,752 | | 55,658 | | 131,539 | | 133,313 |
| Operating expenses | | 38,298 | | 36,852 | | 106,069 | | 101,177 |
| Operating income | | 17,454 | | 18,806 | | 25,470 | | 32,136 |
| Other income | | 532 | | 451 | | 1,969 | | 1,914 |
Earnings before income taxes | | 17,986 | | 19,257 | | 27,439 | | 34,050 |
| Income taxes | | 7,166 | | 6,760 | | 10,724 | | 12,415 |
| Net earnings | | $ 10,820 | | $ 12,497 | | $ 16,715 | | $ 21,635 |
| | | | | | | | |
| Earnings per diluted share | | $ .57 | | $ .66 | | $ .88 | | $1.14 |
| Earnings per basic share | | $ .58 | | $ .67 | | $ .89 | | $1.16 |
Weighted average number of diluted shares | | 18,981 | | 19,055 | | 19,013 | | 18,988 |
Weighted average number of basic shares | | 18,762 | | 18,677 | | 18,772 | | 18,606 |
| | | | | | | | |
| | |
| | Consolidated Balance Sheets |
| | June 28, 2008 | | September 29, 2007 |
| | (in thousands) |
| | | | |
Current assets, excluding auction market preferred stock | | $153,281 | | $124,164 |
| Property, plant & equipment, net | | 94,426 | | 93,222 |
| Goodwill | | 60,314 | | 60,314 |
| Other intangibles, net | | 54,766 | | 58,333 |
| Auction market preferred stock | | 35,200 | | 41,200 |
| Other | | 3,074 | | 3,055 |
| Total | | $401,061 | | $380,288 |
| | | | |
| Current liabilities | | 74,262 | | 64,601 |
| Long-term obligations under capital leases | | 404 | | 474 |
| Deferred income taxes | | 19,180 | | 19,180 |
| Other long term obligations | | 1,908 | | 451 |
| Stockholders' equity | | 305,307 | | 295,582 |
| Total | | $401,061 | | $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
