Exhibit 99.1
J & J Snack Foods Reports Record First Quarter Sales and Earnings
PENNSAUKEN, N.J.--(BUSINESS WIRE)--Jan. 23, 2006--J & J Snack Foods Corp.
(NASDAQ:JJSF) today announced record sales and earnings for the first quarter
ended December 24, 2005.
Sales increased 10% to $108.6 million from $98.5 million in last year's
first quarter. Net earnings increased 21% to $3.0 million in the current quarter
from $2.5 million last year. Earnings per diluted share were $.16 for the first
quarter compared to $.13 last year. Operating income increased 15% to $4.2
million in the current quarter from $3.7 million in the year ago quarter.
Operating income in this year's quarter was impacted by $260,000 of
share-based compensation expense (expensing of stock options) and net earnings
were impacted by $171,000, or $.01 per diluted share. Excluding the impact of
share-based compensation expense recognized this year and not last year,
operating income increased 22% and net earnings increased 28%.
Gerald B. Shreiber, J & J's President and Chief Executive Officer,
commented, "Continued strong performance by our food service business was
largely responsible for our improvement."
J & J Snack Foods Corp.'s principal products include SUPERPRETZEL, PRETZEL
FILLERS and other soft pretzels, ICEE and ARCTIC BLAST frozen beverages,
LUIGI'S, MAMA TISH'S, SHAPE UPS, MINUTE MAID* and BARQ'S** and CHILL*** frozen
juice bars and ices, 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 and Vernon, (Los Angeles) 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
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Three Months Ended
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December 24, December 25,
2005 2004
------------ ------------
(unaudited)
(in thousands)
Net sales $ 108,571 $ 98,521
Cost of goods sold 75,454 68,525
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Gross profit 33,117 29,996
Operating expenses 28,920 26,342
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Operating income 4,197 3,654
Other income 674 298
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Earnings before income
taxes 4,871 3,952
Income taxes 1,861 1,470
------------ ------------
Net earnings $ 3,010 $ 2,482
============ ============
Earnings per diluted share $.16 $.13
Earnings per basic share $.16 $.14
Weighted average number
of diluted shares 18,697 18,470
Weighted average number
of basic shares 18,328 18,064
Consolidated Balance Sheets
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December 24, 2005 September 24, 2005
----------------- ------------------
(unaudited)
(in thousands)
Current assets $ 161,760 $ 154,233
Property, plant & equipment,
net 87,953 89,045
Goodwill 53,622 53,622
Other intangibles, net 6,760 7,043
Other assets 2,178 1,981
----------------- ------------------
Total $ 312,273 $ 305,924
================= ==================
Current liabilities $ 57,001 $ 52,902
Deferred income taxes 17,987 17,987
Other long term obligations 234 273
Stockholders' equity 237,051 234,762
----------------- ------------------
Total $ 312,273 $ 305,924
================= ==================
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, CFO, 856-665-9533