Exhibit 99.1
J & J Continues to Post Gains; Record Sales and Earnings
PENNSAUKEN, N.J.--(BUSINESS WIRE)--July 22, 2003--J & J Snack
Foods Corp. (NASDAQ:JJSF) today announced record sales and earnings
for its third quarter and nine months ended June 28, 2003.
Sales for the third quarter increased 2% to $102.5 from $100.6
million in last year's third quarter. Net earnings increased 4% to
$7.8 from $7.5 million last year. Earnings per diluted share were $.87
for the June quarter compared to $.80 last year. Operating income
increased 5% to $12.2 this year from $11.6 million in the year ago
period.
For the nine months ended June 28, 2003, sales increased 3% to
$261.1 million from $253.1 million in last year's nine months. Net
earnings increased 12% to $12.0 million in the nine months from $10.7
last year. Earnings per diluted share were $1.32 for the nine months
compared to $1.16 last year. Operating income increased 11% to $18.6
million from $16.7 million in the year ago period.
Gerald B. Shreiber, J & J's President and Chief Executive Officer,
commented; "While sales of our soft pretzel products were strong for
the quarter, we were impacted by very poor weather conditions
hampering sales at theme parks and other outdoor venues during the
months of May and June. ICEE and our frozen beverage products as well
as our frozen desserts at grocery stores were particularly impacted by
the poor weather. Continued success of our PRETZEL FILLER products,
including recently introduced new sizes, sparked soft pretzel sales.
We are planning to introduce several items in 'bite size form' of this
'first of its kind category' into retail supermarket stores in the
late summer and fall. Although we are essentially pleased with our
overall profitability for the quarter and the nine months - achieved
despite a difficult overall business environment and aided by a
significant reduction in depreciation expense - we are committed to
improving our top line revenues and bottom line going forward."
J & J Snack Foods Corp.'s principal products include SUPERPRETZEL,
PRETZEL FILLER and other soft pretzels, ICEE and ARCTIC BLAST frozen
beverages, LUIGI'S, MAMA TISH'S, SHAPE UPS, MINUTE MAID(1) and
BARQ'S(2) frozen juice bars and ices, TIO PEPE'S churros, THE FUNNEL
CAKE FACTORY funnel cakes, and MRS. GOODCOOKIE and CAMDEN CREEK
cookies. J & J has manufacturing facilities in Pennsauken, Bridgeport
and Bellmawr, New Jersey; Scranton and Hatfield, Pennsylvania;
Carrollton, Texas and Vernon (Los Angeles), California.
(1) MINUTE MAID is a registered trademark of The Coca-Cola
Company.
(2) BARQ'S is a registered trademark of Barq's Inc.
Consolidated Statement of Operations
Three Months Ended Nine Months Ended
---------------------- --------------------
June 28, June 29, June 28, June 29,
2003 2002 2003 2002
--------- ---------- --------- ---------
(in thousands)
Net sales $ 102,529 $100,628 $261,181 $253,137
Cost of goods sold 64,146 64,198 173,857 169,507
--------- ---------- --------- ---------
Gross profit 38,383 36,430 87,324 83,630
Operating expenses 26,226 24,825 68,734 66,903
--------- ---------- --------- ---------
Operating income 12,157 11,605 18,590 16,727
Other income
(deductions) 42 (38) 174 (302)
--------- ---------- --------- ---------
Earnings before
income taxes 12,199 11,567 18,764 16,425
Income taxes 4,391 4,049 6,754 5,749
--------- ---------- --------- ---------
Net earnings $ 7,808 $ 7,518 $ 12,010 $ 10,676
========= ========== ========= =========
Earnings per diluted
share $ .87 $ .80 $ 1.32 $ 1.16
Earnings per basic
share $ .91 $ .85 $ 1.38 $ 1.22
Weighted average
number
of diluted shares 8,937 9,401 9,080 9,213
Weighted average
number
of basic shares 8,574 8,840 8,680 8,730
Consolidated Balance Sheets
June 28, September 28,
2003 2002
----------- ------------
(in thousands)
Current assets $ 90,863 $ 75,367
Property, plant & equipment, net 88,732 94,410
Goodwill 45,850 45,850
Other intangibles, net 1,308 1,539
Other assets 2,207 2,870
----------- ------------
Total $228,960 $220,036
=========== ============
Current liabilities $ 44,373 $ 40,244
Deferred income taxes 10,806 10,806
Other long term obligations 519 277
Stockholders' equity 173,262 168,709
----------- ------------
Total $228,960 $220,036
=========== ============
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, 856/665-9533