Exhibit 99.1
Record Sales and Earnings Again for J & J Snack Foods;
Company Reports 21st Consecutive Quarterly Earnings Increase
PENNSAUKEN, N.J.--(BUSINESS WIRE)--July 24, 2006--J & J Snack
Foods Corp. (NASDAQ:JJSF) today announced record sales and earnings
for its third quarter and nine months ended June 24, 2006.
Sales for the third quarter increased 8% to $140.1 million from
$129.5 million in last year's third quarter. Net earnings increased 9%
to $10.8 million from $9.9 million last year. Earnings per diluted
share were $.57 for the June quarter compared to $.53 last year.
Operating income increased 8% to $16.7 million this year from $15.5
million in the year ago period.
Operating income in this year's quarter was impacted by $350,000
of share-based compensation expense (expensing of stock options) and
net earnings were impacted by $277,000, or $.015 per diluted share.
Excluding the impact of share-based compensation expense recognized
this year and not last year, operating income increased 10% and net
earnings increased 12%.
For the nine months ended June 24, 2006, sales increased 10% to
$360.7 million from $327.3 million in last year's nine months. Net
earnings increased 11% to $17.9 million in the nine months from $16.2
million last year. Earnings per diluted share were $.95 for the nine
months compared to $.87 last year. Operating income increased 8% to
$26.9 million from $24.9 million in the year ago period.
Operating income in this year's nine months was impacted by
$967,000 of share-based compensation expense (expensing of stock
options) and net earnings were impacted by $699,000, or $.037 per
diluted share. Excluding the impact of share-based compensation
expense recognized this year and not last year, operating income
increased 12% and net earnings increased 15%.
Operating income in this year's quarter and nine months was also
impacted by a $1,193,000 impairment charge for the writedown of
robotic packaging equipment. Net earnings were impacted by $740,000,
or $.04 per diluted share, for the quarter and nine months. Excluding
the impact of share-based compensation expense recognized this year
and not last year and the impairment charge, operating income
increased 18% and 17% for the quarter and nine months, respectively,
and net earnings increased 19% and 20% for the quarter and nine
months, respectively.
Gerald B. Shreiber, J & J's President and Chief Executive Officer,
commented; "We had another solid performance for the quarter with all
of our major business segments contributing. Continued strong
performances from our core snack food and frozen beverage businesses
helped achieve record profitability."
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, 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
------------------------------------
Three Months Ended Nine Months Ended
------------------ -----------------
June 24, June 25, June 24, June 25,
2006 2005 2006 2005
---- ---- ---- ----
(in thousands)
Net sales $140,132 $129,452 $360,747 $327,323
Cost of goods sold 89,399 83,177 241,671 218,856
-------- -------- -------- --------
Gross profit 50,733 46,275 119,076 108,467
Operating expenses 33,985 30,738 92,137 83,583
-------- -------- -------- --------
Operating income 16,748 15,537 26,939 24,884
Other income 746 384 2,145 1,040
-------- -------- -------- --------
Earnings before income
taxes 17,494 15,921 29,084 25,924
Income taxes 6,708 6,042 11,151 9,773
-------- -------- -------- --------
Net earnings $ 10,786 $ 9,879 $ 17,933 $ 16,151
======== ======== ======== ========
Earnings per diluted share $ .57 $ .53 $ .95 $ .87
Earnings per basic share $ .58 $ .54 $ .97 $ .89
Weighted average number
of diluted shares 18,866 18,648 18,792 18,566
Weighted average number
of basic shares 18,469 18,242 18,394 18,156
Consolidated Balance Sheets
---------------------------
June 24, 2006 September 24, 2005
------------- ------------------
(in thousands)
Current assets $162,645 $154,233
Property, plant & equipment, net 83,503 89,045
Goodwill, net 57,109 53,622
Other intangibles, net 23,146 7,043
Other assets 2,980 1,981
---------- ----------
Total $329,383 $305,924
========== ==========
Current liabilities 59,638 52,902
Deferred income taxes 17,987 17,987
Other long term obligations 696 273
Stockholders' equity 251,062 234,762
---------- ----------
Total $329,383 $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, Sr., 856-665-9533