JJSF - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the J & J Snack Foods First Quarter Earnings Call. My name is Richard and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. the to turn Shreiber. now will call Gerry over I Mr. Shreiber, begin. you may

Gerry Shreiber

I pleasure, And Good now J years. our Foods. be I familiar Richard. whatnot, you you, position name I with welcome privilege. be & Gerry to familiar should Much morning, Snack with of Thank same should call have XX everybody. to been close -- the Shreiber. to conference first J my and my am as quarter in

here. Dan ICEE who from attendees XX shareholders who now has with he say qualified, We am Kmart, very, is Dennis CFO And our sorry, our new and have retired. recently has has the formal with know, Fachner, with some been is running months. and years as a Plunk, he in may who now us business certainly for Ken it Wal-Mart I again stellar located two Coast four meeting. He career the I living and you Moore, West was And odd not in very had well well, been was Ken Tennessee.

Ken Plunk

Yeah. Roughly.

Gerry Shreiber

begin I the first will commentary -- some forward-looking with for our me statements. I and let quarter begin with

that are certain subject Forward-looking materially statements contained herein actual risks could and results those in to the uncertainties projected cause from differ to forward-looking statements.

gradual be in segments. were XX%. the Service of Frozen sales quarter our challenged seeing environment, were of undertake by or improvements especially business sales of which not for million impacts operations, You Results in sales circumstances quarter, We last reliance since to analysis the obligation decrease after management’s year. reflect $XXX where four this are trends the worse Beverage statements, Sales to as revise place reflect only forward-looking are date the XXXX and or these that statements events XX% we Food to hereof. than no COVID-XX, cautioned on update net publicly of Despite continue date undue hereof. arise a these to

$XXX,XXX Our retail declining quarter, business expense responded a decrease well driving sales was $XX.X leverage. efficiency as XX% of pressured production and Operating for the income growth. billion

Now just of of and each the comment. add one let segments to like me I’d our review results business

which during business, was XX% to schools. a past of our sports year Service of like to XXXX and sales. leisure venues extent total for from Service sales theaters declined customers Food sale about decreased the customer quarter compared Service, theaters and schools, capacity significantly limited represents year. reductions, XX% restaurants, Food Food Service the continue Our and sales sports leisure, cancellations XX% and impacted movie and lesser Key when and trend theme channels that quarter Food four operate the impacting parks, prior improving versus at to and because

Churro XX% frozen sales as virus cake down and were XX%, XX%. ices decreased bakery of sales impacted pretzel respectively. XX% choices decreased and purchase and Soft business. part frequency declined our in Sales X% the and this traffic, of juices and funnel products

Sales impacts and venues sales by XX% XX%. year. of Frozen park retailers quarter. our developed Frozen driven operating in from million continued incremental home. non-recurring from over for to XX% quarter Our rely the $XX.X XX%, sales sales the XXX% XX%, biscuits related on XX% entirely increase were sales the XX% affected continues by year. the Retail income in almost by revenue Food XX% increased $X.X in up for in $X was than consumers from Beverage the were down program. juice X% driven quarter. which were significantly XX% XX% increased and up XXX the traffic last sales our were Operating quarter. a due income of decreased increased in and by sales operating well mainly lapping Handheld seasonal an of SUPERPRETZEL brand last quarter. Machine and maintenance theaters, as capacity COVID-XX. segment from margins sales key million a ices sales were one Beverage and with last sales and and a by face by the declined Operating quarter, were points amusement for business business grocery in the quarter in Sales perform Service decline or strong revenue income led product to business shortfall down lower These higher or in our in reduced million a million as XXX% customers. of driven retail sales growth. cancellation better a new segment staying had handheld entirely December, $XX.X club of wholesale exceeding decreased Service year customer’s our gallons due supermarkets,

from impacted profit segment operating million These last drop our million, Our to profit gross Consolidated, gross and and down Frozen expenses of $XX.X were mix Beverage below earnings sales last million year’s of COVID-XX last quarter Net mentioned still deleveraged percentage Food sales. Service Gross customers. of sales quarter this in in percentage from percentage on as continue but Total Frozen year. of for XX.X% significant previously the last million the was as the as in Beverage has quarter decreased challenges was because XX.X% a pressure was $X.X pressure the XX.X%. sales. against quarter, $XX.X incurred an margin from a operating loss restrictions year. XX.X% COVID-XX sales expense year, efficiency. sales up the Total down the $X.X

million securities increase year end. investments our from September $XXX $X an million XX, and December was cash of Our as XXXX, balance of

our this to strong and challenging flow liquidity positive environment. We balance continue drive remained in sheet and cash

long-term opportunities We focused continue look remain business. and opportunities to for acquisition on of our the growth

with continue consistent prior $X.X about our in our million year. efficiencies spending in year was to We invest spending business. quarter, the growing we capital plant the and Our as to be estimate for

our and paid -- Directors cash share declared the XX.X% on Our of XX by XXXX. XX, of back any January buy our stock -- did not quarter. points dividend was We Board of during $X.XXX shares per

less named $XXX,XXX the decreases was last few your Dan meeting President the & J now year investments And than who and Fachner over Dan year I Q&A. I to this open we Foods the due up income comments want continued turn meeting six to rates. for ago. the was of interest again investment interest. months a of before about J you group will amount Snack Our will lower thank to have for total additional in

Dan Fachner

on for Thank Great. And us joining our conference quarter Good you. you call. thank first morning.

earlier, and our additional Bob Vice you J & line, Bob With and But President of many and J room Sales; interest and Vice in are Pape for up comments as addition make also Vice Marjorie open Snack we who We we myself were Radano, us have it before know, to have of our and Senior our COO. to times. President for your today in few you in thrilled some Senior Foods. living in Plunk unprecedented like a we more questions. I’d the Roshkoff, on President to just have thank the have are listening General in we announced Counsel; Ken we and we you

tell unwavering have and company How we through and to job on work? serve this challenges. mention one our past has our connected all been Our just calls so we believe working habits. how another business every Zoom of lives focus I year. I such going communicate? have operating It’s to with How stay impacted excellent consistent our commitment been our simply we not done business. the entertain the their am customers through. our proud an you, our as and shopping How day. Our to and of we are ourselves the each daily a we employees basics I

make Food limited of first traffic this This to continue despite where simply on these even rely the to or traffic We during many season challenges two-thirds and at pronounced venues higher of COVID-XX. continue home was Consumers the time. sales more comprise In sales. stayed operate seasonally of Service at our reduced of just key capacity. revenues progress during and holiday substantially quarter, this that

retail Food is impact wasn’t overcome Unfortunately, are Our way though Beverages, we the but to quarter. continues to that this our Frozen enough performing. with the with that group business and another delighted growth XX% Service just on thrive quite

XX% headwinds, the we As Gerry sales the in what in year in. we our balance still fourth Even down the mentioned, prior down of are to we and business. improved the we strong proud to invest sales am funds in COVID-XX quarter, our is XX% quarter. were extremely year. have I sheet growing and prior relative again considering first doing We this resources to the with environment are

any your much. appreciate capital remain will and turn strategic aggressive questions We might now company and over Thank We it in have. will and that investments innovation very you making driving to you efficiencies. our in I interest

Operator

Instructions] question you. Please [Operator And And first Dickerson. comes from go thank ahead. Rob on our line

Your is open. line

Rob Dickerson

you Hi. much. Great. Thank so

Gerry Shreiber

Good morning, Rob.

Rob Dickerson

morning. Good

Dan Fachner

Rob. morning, Good

Rob Dickerson

Good morning.

my question quarter. I sort So, first cadence to I guess, was, guess, around of the

in had weeks, little you given were total looks said, first kind the result. December say, like approximately of, bit QX think, it they maybe have a quarter maybe November, XX%, the improved last down I four sales let’s but

However, holidays the during holidays. you -- are in pressure some saying there was the

stand you a and of you improve curious maybe if kind things just stood thought thought versus kind few now So ago? maybe things have improve like or could if a color, months some provide saw of they just bit just you than where where you little less had could

Gerry Shreiber

during of will did as pretty help really into customers times into our perform, statement of on to did up and time up season spike that really back and open was of key Rob, mass another Right. back also some will holiday your know, just accurate. quarter, continue again. as you holiday we course, confident those and not come shopper as improvement or had during then anticipated well this locations and time. that and that the such in some in the didn’t continual are we have just as anyway. that as merchandisers that November a that that we think COVID And well came October as as these got particular held we improve theaters count we we and the But strong, see We they quarter

Rob Dickerson

weekend. actually theater All The past right. secondly, Great. I a will in family was then movie this found… And admit, Thanks. guess I I

Gerry Shreiber

Thank you.

Rob Dickerson

least -- And… at yeah. …space

Gerry Shreiber

did pretzel? Rob, Rob. you, a know. to you That’s an ICEE want buy all Thank I and

Rob Dickerson

Is top can But but up come across and terms would expectation picks what these was think, of offerings, massive of news hopefully, some that to okay, kind product adjust been off just store traffic is again. in of past that’s was there the Yeah. some kind AMC in about terms kind movie your of Hopefully, of that of there for Actually, seen these beverage thinking, I back you this of could in and now down in well, easier as the not order overall, sit the buy we you just the term. I frozen your think it’s the ICEE in the and drinks? theaters of And now? Board. of So financing. we assume higher big enough theaters There’s just offerings can well, right, way just days kind strategy that areas, this still the my like, question. kind traffic obviously, I of you That’s overall of any coming But strategy have be. demand out couple long actually longer have then, back. movie go-forward

to somehow You strategy the or question, somehow. the just have to way there adjust is the a ask yourself offering

-- I it maybe I either that, So, don’t adjust about can think acquisitions there you wait But maybe strategy, and to curious you basically just back. of a diverse am are sit know, position just way maybe ways out a traffic it’s come can with you not. more bolt-on the do that to or for the you as kind just

So that’s…

Gerry Shreiber

Right.

Rob Dickerson

of things. there I know is lot

Gerry Shreiber

No.

You of are reading kind from Rob. our playbook,

absolutely right. are You

our theaters other ICEE fix, now quick having period we that, are other are to sell you on and not of sit that we have will the doing within. the group on continue are that some we group tests then it’s have with there’s theaters a of -- success that that. install avenues business have are outside to the and open. going to we back focused to We and we that. and But got look adjusting in That’s business because not right success you a time And can’t and and grow these sales some really where test. way, believe along wait and think really for a particularly at channels right But will good

exactly to have something we it We about doing. that’s are go what and do

Rob Dickerson

it you Thank I All much. right. Great. on. will so pass

Gerry Shreiber

you. Thank

Operator

question you. from comes Instructions] Our Please [Operator next ahead. thank Ryan And go line on Bell.

Ryan Bell

Hi.

Gerry Shreiber

Good morning, Ryan.

Ryan Bell

maybe color the Food is Hey, a improvement as vaccines for of bit being distributed a morning. and everyone. more could cadence way the sense performance Good the assumptions more also you little with provide Service Could about for improvement? quarter-to-date thoughts we the the you the and any there give then see

Dan Fachner

hear you that? Did

Gerry Shreiber

understand faded I out your section No. you didn’t It the Ryan, last bit. repeat quite a of little that? question. Can

Ryan Bell

The ICEE last I quarter-to-date business the any are going doing? improvement Service the how maybe Sure. there actual the number was, size is was the in your could of decline you part of terms and asking business? provide or parts that quarter-to-date Food Is of the about how

Gerry Shreiber

meaning Quarter-to-date two? quarter

Ryan Bell

January. Through Yeah.

Gerry Shreiber

it? Yeah. on Ken, to you touch do want

Ken Plunk

question. Interesting

to it’s probably the same. the answer is about Ryan, think right I that,

about was an in year. year. It’s than versus where QX. Service below If was you XX% about That QX, XX% think last so was improvement QX Food less last early

think the way vaccine entire widespread think your now. into your I modeling, of we year of start around recovery still in of terms more to base still it’s until the that see kind just bit that. below in XX% and get the about a to XX% the to early probably to to right -- access But think quarter I’d it

Gerry Shreiber

on year of assume sports and This did of till of is remember all I Gerry most later. to Shreiber. or not XXXX, years a are when baseball But it comment. two went maybe strike do have you I suddenly recover lot the fans. you you

quite so many completely not were in that are our of having but impact We there, basically venues shutdown.

back will up the year’s level are last be year Now, so. or they opening and over fully we we that expect to next

Ryan Bell

be year. lapping some or the to felt Okay. insights the you provide the significant I throughout That’s some declines know the year be last that about of able would being for broad are closures are helpful. cost management And may going poignantly. balance expectations where we guidance more to

trajectory throughout way So, of the gross the any there is we about think can year? margins

Ken Plunk

Yeah. around and margin. I sales release biggest particularly of your contributors mean, beverages, have are Those when some of in gross both margins get think out the the pretzels this I which gross press challenged pointed to ICEE we the healthier declines margins. soft

and see turn a until has that will those an impact. that gross continue So they mix impact when on mix changes, have margin similar businesses we around, to

obviously, at The that it a because other to more way or coming that labor Ryan, just at that’s that’s is labor we people QX, about the look look more thing particularly that of we about sometimes that the again, a labor as think temp is creating. are virus have and to impacts magnitude little to as concerns ways work, expensive, you when force. overtime the more the concerned in different of often the impact the of our And heightens, COVID, does manage whether and

Dan Fachner

it’s our But a the as impact year the an had working we that are said, when in all at spikes there certainly remainder has aware something increases. again then first get to we of Ken out on. that Ryan, better labor COVID of as really the shortage and handle that are hard quarter just and

place. still more gets those will and away hope that are more as of issues go in issue vaccine certainly We that dealing and with the some

Ken Plunk

the… then And Yeah.

Ryan Bell

you. Thank

I think…

Ken Plunk

and mean, with safety thing mid-November virus other end actually … $XXX,XXX various roughly matters from December I’d It of at spent getting the heightened on we add, I COVID. worse. the health around

to expenses. per And we $X.XXX share to you last impact our to $XXX,XXX compared much year, leveraging. that’s of were that expenses closer take what are out if on So

pull million the as We way million took expenses year come we have back. impact. am COVID that look out the out $X in back with at on leveraged actually roughly expenses I kind you quite prior $X.X sales so the of needed take of So stay actually proud QX, to of as and to

is safety the as to health way that, all on roughly as to a is and as think continue virus $XXX,XXX matters. are spend going the to the we to forward I $XXX,XXX think state long in probably

on of kind be will move lingering past a until that kind we So that. impact expenses of

Ryan Bell

Thanks.

Ken Plunk

get every that where But to of to on can complicated. back we kind open come Ryan. have are way QX, that magnitude, have down so short-term rock continue expenses I dial the the team and you going for Otherwise, way our more. get stay a for of about vision figure and -- But, you When bit to as look sharpening think to in, margins expenses, sales the COVID pencil, always but precise perfectly are we loss is I’d blow period. we it to this in, the and to it’s how Dan and gets at, out talking comes unknown I manage with calibrate business a dialing company be to better in true I continue the challenge. us this expect virus, to still the marginal that long-term we say When our

Ryan Bell

color. M&A I Okay. anything last And allocation Service maybe thought just broader talk for and has now thinking then acquisitions all Maybe the Food now, process COVID? I think a landscape changed? to versus for prior about capital in one versus the retail? And about in me Thanks one about am

Dan Fachner

a Ryan. great That’s question, Yeah.

and return really better we at probably, in where capital and can plants right our working from savings of right than of kind of ourselves we understanding each it. and allocation, I the one put is evaluating hard we group get have a to good invest are ever We think kind best the together have that

am really am the And go do looking together so have to quarter In group have put about things that it. at that some I continue to regards that, going we with this done going are pleased to past we looking. and with M&A, and that we I to continue pleased way we are and again this

We are looking today.

We have several with people. conversations had different

it. to going we we sheet the yet that we we are strong find a balance the with and prepared. have right that in do are one, to position be have careful We that going it when and how we That’s cash want wisely. do be of we about ready to part we be and advantage the But to do is can

one. the that question, opportunities It we going to of And so at we some But, didn’t at that look going us another retail, we to that until there’s now might aggressive are it as half right find where -- in look at us been and we closer cause are that’s maybe us. and to there. past may we are the brought yeah, so some your to being us the may to cause the brought and continue look strong of take second even to to continue doing opportunities we look with be

Ken Plunk

across closures I But the to retail amusement leisure, surge in the due slimmed or part sports, as might the Board you shut movie Service Food the down, consider was theaters. there basically the add, group. was When no no of parks there’s

major So that major, was a impact.

of franchises our brands significant our against entry considered with and whatnot barriers anything with competing. brands, are maybe SUPERPRETZEL the and that ICEE but Fortunately that leading brands, some leading over because spilled only the not to

on continue it. and We to emphasize are going build to that

Ryan Bell

for Okay. Thanks me. That’s for questions. the it

Dan Fachner

Thank you, Ryan.

Gerry Shreiber

Ryan. Thanks,

Operator

you. Thank

on question Please comes next Jon Our go ahead. from line Andersen.

line is Your open.

Gerry Shreiber

Hey, Jon.

Dan Fachner

Jon. morning, Good

Jon Andersen

it’s to Hey. on good and call. congratulations. Gerry, Dan the voices and Ken, your Good hear morning, everybody,

Ken Plunk

Yeah. Thanks, Jon.

Dan Fachner

too. yours Likewise,

Jon Andersen

know been questions. couple times, at a it’s I from I but few a will cadence. a sales asked come angle guess. start with of I the will I it Got different just

two more where now improvement XXXX, XXXX we quarter the first downtrend moderate. sequential gotten have fiscal balance look fourth of some quarters the you seen As we the of XXXX, both and in to the has had have of quarter

for a year that to balance you As kind year, quarters at next impressions your the know question, expect the kind kind forward of of do trend you you of just kind or Kind right expect go it’s you of question the of an through two do look of or to looking color trends? there? coming continue difficult of with out sales very with Any pace? end but where do ways some maybe in three help the the where the same the fiscal year? now you can how us and I respect unfair of

Dan Fachner

and Jon, it’s you am it. glad a question great I asked

even I now against percentage that grow go-forward COVID to will quarter that expect, continued well. you a as a right to during see on did have at And and sales this similar where prior Our are this during this as time we basis. would point, years we at

lot today. a of sales. but great that a We on the Food things rest beat will we and grow J mean, up good which if boost of and get lift feel could crystal might right if to good Service, about can look we And get where open we from J the we underneath are vaccination & what continue we both back then think good like. we and up, that, have can the year side I now a where that really on of those we we locations, even But ball, feel going the ICEE I from COVID, at and is the that always are our it, some believe about lift at

Jon Andersen

Okay.

Ken Plunk

would Yeah. that. sorry, second am I Jon. I I would --

manage part it, entertain are and consumers how of very they optimistic improvements. themselves and is this I best think I can to And figuring customers environment. we survive Jon, on think in are as and out

or we and people mask So shells I is figuring it’s or of see all part whatever wearing think the business. fighting people what the out for whether

people managing see gradually You and better and environment. better at getting that better within

are do they even the to staying to people think respond tired quickly, I out that, doesn’t going do are and to continue because think at I if of trying figure they still home virus are So than that that who weeks studying are that little from few got a better schools is got a still at that. you was XX% you schools But home. still still to ago. And it ways over

But school. relative still still not a are more even going So XX%. to number kids is

Dan Fachner

where different they because maxed three are that. learning down that do out for their doors even Universal demand we four down days pent-up that is during had shut saw really over the And of or how the year. people time out and Studios to holidays, there at that to they they to get the And people

So do we we to demand people and throughout will there better think it is that how are year. that pent-up and get learning the

Jon Andersen

sense. Makes

product earlier that you the and occasions to Can the doing are the things ICEE finding some and portfolio maybe that in more going take or on. one new other kind after of activity channels activity reorient example. use doing new which being areas one of you are what more like about bit some well given that are Dan, a performing about product sounds talk health are bit of handheld ICEE. just a specifically or excited it’s of mentioned, doing and like the you for some little I advantage talk repositioning broadly, backdrop. seeing you and of opportunities might mean, little whitespace as care quite you the be maybe some You There’s them the are But you there? new And then about. also of some you focused the product,

Dan Fachner

do to happy be I’d Yeah. that.

different few there. a angles So,

is just of of recalibrate XX%. how want had bit, that quarter little the -- in side. the that that our sales of SUPERPRETZEL retail XX% I one of as brand kind we increased really you reiterate promising And to First are a things about increase the again the proud retail in promise group

as our and juice is to see, well good XX%. just frozen So up as that was ice

to for grow continue see this are those to how asked things group the take that to doing -- so we up. concerns when So continue long theater certainly that, guess. areas back And some would that have I growing about we are the you about growth then on side, to ICEE open within

had demand up like slow of them. a he conversations will lots to saying we earlier and there’s have this with open Ryan back that just weekend. believe it believe that went it’s pent-up We going We but be

really new so there’s We know put think who happen to that we sales see on to out get shift new don’t will I quickly how and and and just have the there tried our and people want focus channels. movies.

bit fast areas opinion some the we our tests whole hope QSR casual little a or is each in there day doors knocking that place will a come guys natural the ICEE through. my in we are so every for and One out on that and and that is of is believe underdeveloped we side have that

good things really going of lot a that on side. on have We

that we trying trying redeploying that use we making gain that any we on down are J are to We J to our equipment capital sure that keep to have can side. the & so capital there efficiencies

those are some those we how doing things of to about you when the ask just the there. so pivoting, And some are are that of pivot things we are

and are our for hard extra where quarter-after-quarter We have on through reputation. also long ICEE working growth the have seen time a word-of-mouth side of long, you service and much that is just

doors to of really now and and grow a business are And too. actively out going in the things hopper on that good knocking trying we and so have couple we there

we it new of mentioned, get be Product going a there. going on. to we we with haul long are that, have that happy some things will are real you with So the but as activity,

or continuing. that in that We growth was handheld with We see XXX% million that have quarter. the growth $XX.X that the

that’s fact, exceeding In expectations. our

that have going We of be are a a couple out other products couple places. to coming in

before. have frozen novelty nationwide about are can W the now -- we brand leverage and how around ICEE good that. talked the ICEE brand We we and so seen that activity We piece. our have

novelties we to will think the to in We are continue that frozen that now grow. able leverage and

some this had core we year. Churro good interest that might our have think in brand continue boost throughout We like to a have

health question good I on and asked your things, that. you Food Service final & Jon. some are forward focused seeing to And we look And then is heavily and so on J side really our it. J was the

so on had call getting Food broker that two we J & and from the for in the potential weeks & identified hot the are J side on that’s Do a in touch the Service are we want think that shifted recap, the J Service mentioned Pape, one to hard was kind we brokers on business. line. a And on to just of that growth area minute? side Bob that. of I you J the ago, we I as several that working really you in Food a

Bob Pape

Yeah.

care I our And we targeting already tailored new think highest have can data to are degree what the for multiple hospitals be to pinpoint a where depending a to receiving in products. opportunities the the on business our now of There have been those care result, or know a biggest sell hospital. as are that, working that and had through we to we is now that have instance, products we information secure. really, I our able also opportunities we we are health are. success mean, places the And setting within that on that that volume it we health are segment

that. comfortable very feel we So about

Our that health care think we and that business grew continue grow. could by XX% to year last

Jon Andersen

Great. That’s long or that I both a dividend of impacting after with terrific growth. history your have so last gone year the question of flat you. is, Last color. has Thanks COVID the over earnings

again, any they when So board the be hikes and management a Do a the I see year, and it Board the sooner? will is just will at am raising think have wondering point -- the where again? on will you could is the feel dividend you comfortable do be board dividend we it thoughts --

Dan Fachner

will will be ways. the $X.XXX. it’s lots as we the question. Is we to There that that that we I discussion sand sure of company, in opposed lowering And to on to proud it there line for I increase to it fair Yeah. that’s do. it what know that’s kept discussion if are think the have lots number end -- a way up more to around at lot will about it it us and -- Can predict exactly am in the about was But should happen what at had don’t when do discussion if do right ways, in Jon, as that know thing whether we that’s of we think around I thinking some there and for Board even drawn Yes. any be keep continue I it stay. will that. that? increase? we I where that’s We potential No. that conversation going that’s an to a of a

so We a are of and that’s use cash way build to certainly continuing that. to some

Jon Andersen

I a that say and that recover, you know know, on have that business still as recovers from consistently been dividend year-to-year, your COVID, Gerry thought to intact? be might policy the dividend would is too, fair it But this to which don’t as earnings has increase policy, your

Dan Fachner

comment on will I Gerry Yeah. that. let

Gerry Shreiber

we our grow. sales first that dividends every that with the going about years for to increased straight Nothing accordance But would is believe and as lost year I we will we We it ago XX our for or earnings a recapture in years certain, and nine course. started use believe years the and are of we that XX benchmark future.

So you guys are smart.

You guys have us. been following

You know to what we we that generally we do. going do say are

with. would in it’s models put certain, not you your So that and it’s can something I that for relax but

Jon Andersen

more in. one have kind of if question lied, I I it could I squeeze And Okay.

Gerry Shreiber

ahead. Go

Jon Andersen

seeing think in -- How going are necessary, been that maybe are to position pricing input inflation you distribution. how about kind pricing get if is to commodity in you I there’s so, certain a maybe and thing? costs, you of certain be what thinking are -- that? inputs, And ag some

Dan Fachner

and In are can touch COVID environment. will in really the will commodity pricing, on regards I touch what I can’t and do this to we are the the Ken And pricing. watching with and the of we customers. pricing we let closely it then course, on

in an cases cases never it’s some in some some difficult. price, take easy It’s So you really thing. can

some are ICEE can business and of that side on We the we pricing do our feel that. taking

watching will will it. on we know we J together that. again, touch then, it to work And Ken, closely. just to you just group and & the that. We J put closely continue and And let on are are side I really commodities that reviewed on a do evaluating Ken I We

Ken Plunk

it’s have and Yeah. look something the very down. for up closely you a I to monitor Dan’s it And point, same am at I say, would I and thing, mean, are sure of, consistency is then you kind and month really seeing to back Jon.

those So we it’s and where yeah, over we are there’s increases. monitor areas something time, seeing

on of out, the to the We And of look trend depending also quarter. forward out. even plays next are how kind that trying

have decide and step thing day. to every and the teams do on, of resources we back what that We that got will what’s but to passing have right terms they that’s in do

going we trends would more just the and So, closely some I call it some what longer are that. we monitoring say, increases, going to it there’s of make we on be a are yeah, in I based term to kind think think have to is of on

Jon Andersen

talk luck, Okay. we Thanks and will all so the Good guys. for much time soon.

Dan Fachner

Thank you, Jon.

Ken Plunk

Jon. Thanks,

Operator

Thank you.

go comes Brooks. on next Our question Todd Please from the line ahead.

Dan Fachner

morning, Good Todd.

Todd Brooks

morning, morning, to Appreciate Hey. everybody. good talk you. -- to Great every Good it.

Gerry Shreiber

morning. Good

Dan Fachner

Likewise.

Gerry Shreiber

is Gerry. This

You Oh, are talking CL… with?

Todd Brooks

am CL Yes. I & with King Associates.

Gerry Shreiber

our not much but some to I congratulate some the on want [ph] are understanding of closely You business, researching only too. storylines and developing you

Todd Brooks

are if opened as new we with questions or being strong improvement new speak appreciate One, Oh! I in And function growth I Gerry, it as what’s segment. the Is Food off that. as could. the about is doors highlighting Service some sign Thank can that. Bob talk in you customer a improvement a COVID your Service this or far Service more surprised combination at I period market of and that of that this And customers saw. end both? a about the gaining traditionally wondering am flared. drop you the holiday I December was what you of was or pleasantly existing for verticals, did sequential share Few you look by sequential morning seeing Food a of if in customers Food a the kind

Dan Fachner

Yeah.

-- at and good it’s of you know us XX% Todd, It good was think both, think see seeing. to seeing some come combination new a XX% we we customers opposed we I highlighted encouraging are XX%, I on and it. are to I as before.

hopeful be because groups. theater that heavily than we that coming so not the pieces ICEE it’s of as related back the maybe with into what the coming back, it’s business quicker side And might are

seeing we so, an are are areas. also are some And and yeah, we we in doing uptick in in gaining other the business that ground business

Todd Brooks

to industry or the Dan, bias share? any the smaller as you seeing they wayside function survivor up guys maybe in you seen and by high you there with are are are keep market gains that as seeing there, grabbing falling of service and your or levels And players that customers, where just couldn’t is existing traditionally follow are share in swooping

Dan Fachner

deep You our to the that company know that’s fortunate to and stronger were on what are have more might out up the am is like past in time, -- the have demands We so sheet think demand to as the are others. with business we didn’t I balance the than mix that run that everybody. we able up we I think for change there. that so challenge that one be to keep a fortunate carefully with we strong that this that has been a do I not going just are keeping highlight cut

And Todd. so play to think that does I advantage, our

Todd Brooks

Okay. Great.

there I and approval, pace debate how in the question earnings to as, of know ability want to once and change can we approval your customers is But on had look are far the vaccines -- months but call, got color we change Did this do. of you and all this see were planning-wise behavior their last as some your certainty to going an or some color ready obviously your to the together eight Second the announcement arms, customers around months you once since had you that all giving we vaccines, released? have gotten discussions and customer we is, that. got have they with in the we was any don’t be vaccines kind forward if six a okay, to is in be what

Dan Fachner

again, out of able couldn’t having today. everybody and start to deep to us which from the being people we to at good cut see announced that of be the And vaccine why that customers didn’t are sure we want are in it. we get doing -- some We we in Sure. we by they at that to we starts today have have hope salespeople strong have these front so front been and that prevent are getting make to we as fortunate share is future, market exactly encouraged doing Yeah. that some and and really encouragement, that and are Sure. yeah, the We in and where conversations. that that gain did. customers don’t gives steps so, careful And

Todd Brooks

the revenues the for customer the is you up day. two a the about on of loss the if loss my Okay. periodic a we Great. for was year-over-year can -- called And -- to in where queries wrap in and then one One, business majority it need out decline was side. you and now this service a Is the will that that quarter we questions customer and a lost of maintenance talk to… just repair loss this carry where that on quarter a that ICEE forward or

Dan Fachner

probably… We Yeah.

Todd Brooks

ahead, that … for sorry. account go --

Dan Fachner

I it. preventative a of was We the just didn’t I will But -- a sorry. It go We repeat really that well customer. loss define maintenance no. I will program I enough. you. probably with interrupted am just anyhow. forward

And the have have. ways customers is through on go some we during our time, costs that contracts we of that as one cut preventative on saved maintenance our this preventative business, of So time is the COVID ICEE back service service that side this maintenance. some to of

Now they some some point up, because PM think I at and back tick get the at think I also non-service will of work that that maintenance. more potentially business service will or point

Ken Plunk

Yeah.

Todd Brooks

there. And Dan, follow just to up

ahead, Sorry, go Ken.

Ken Plunk

I was In for this Florida predominant that impact was add. in the of the to customer. just region just -- Todd,

decisions, not have Florida It’s region So, the it’s not those they made a nationwide. impact. really national in

Dan Fachner

But…

Todd Brooks

contracts, maintenance that the impact hit December all quarter? preventive here annual they in these contracts, are so And

Dan Fachner

to They shifted customers are one maintenance of our preventative typically major a have a quarterly right? program. preventative And program, maintenance biannual

Todd Brooks

Okay.

Dan Fachner

have… also we then And

Todd Brooks

then… And

Dan Fachner

maintenance through groups do preventative are shut theater groups this the at the point. and some have larger that theater we We of down one

Todd Brooks

Okay. And then…

Gerry Shreiber

This Yeah. is Gerry.

Todd Brooks

Gerry. Hey,

Gerry Shreiber

meet their plus providing to a This fall their service Basically time. that out, pay if it’s fall non-contractual so whatnot. -- they with needs to are and they going a a enter into when will to we service basis, flows can an might project the agreement, that customer are we and cash hourly on rate

Todd Brooks

ICEE Okay. four here. in and me the get on then thanks And for Great. final question letting

in volume been have about I takes efficiencies run rebound still business back or breakeven? million the it Frozen are think a running as Is of or environment? and business As in for you guess to you you in tough where, kind it have revenue a what impacted what you from in base breakeven obviously mid-$XX range COVID that Beverage found to it ways business? kind thinking of to the that

Dan Fachner

to Yeah. and I create we that. wherever you reductions quite business. defined will continuing are we like don’t tell that in of can piece I efficiencies it have we find know if

on focused went that the we and heavily it. are that. with group going continue and I are sat last through to down We fine-toothed Ken and to with comb, numbers week a do

and nice I say have are that think would reducing people doing keep the this, spot do watch though, just dollar I on our side closely. the hope breakeven know I we exact of amount that every hard because it, they is they a the with so. it it. very, if am are we proud very with and they operational that at when people. can operational which defined We I hard I don’t really are to decline can lower we continuing and sales I right, to It’s that working up job are so

Todd Brooks

Yeah.

Ken Plunk

under We just And the an to into of we manage from bring to are the it’s efficient thing. an continuing did do I million back and we we look kind go incremental expenses. just expenses Board. kind I included can. dig the is How level to across isolated while not just our down at really business. expenses those a looked And have $XXX,XXX Yeah. made, model that got mean everything across P&L at I way ICEE of leverage and business we of structured. standpoint we $X COVID that would mean, I the point to

and muscle. But So, to of we have responses work actually quite as to at, that the as continue am responded of some have they are got sales I the team I long stay proud where seen.

Todd Brooks

forward look Thank all I to pandemic. the and getting you Great. this to Okay. backside of

Dan Fachner

Yeah.

-- as you. Todd. do do Thank we we, As

Operator

And thank you.

ahead. Our Costello. last comes question online Please Robert from go

open. is line Your

Robert Costello

Hello.

Gerry Shreiber

How is Bob. Hi, been? Gerry. This you

Robert Costello

of questions manufacturing have Good. on I Good. couple the facilities. a

side? of Florida. bakery -- down we them store big building in is Are on any with closer Your the servicing customers one your C to

Dan Fachner

We are…

Gerry Shreiber

are not. We

in servicing plus here Northeast Beverages. the pretzels, up are all their bakery We Frozen plus them for needs

are We grow in the communication we and our looking do in are here group to what constant discussions. in sales. continuing those we forward with that we region basically southeast do And

We have [Technical been Difficulty]. across growing

fall in to area line that expect we the So over few next years.

Robert Costello

Right.

you the On warehouse the your in Frozen to facilities, the rationalizing foods Beverage you got of your annual and costs number -- XX have talked on report frozen about and side. XXX

do Going to number go expected forward, same? this you to it’s is much down you that stay pretty evaluations as the do or think going

Gerry Shreiber

same. Stay

Dan Fachner

it the I is it’s pretty much as think today, Bob. same

have shutdown we that consolidated making of a area the know that up today. in XXXX into much we and plants in that are we earlier You Chicago the plant

still in same future. would were have products making the in I we but now. near that the So changing making not are see we plants the much before, that that we

Robert Costello

regards customers’ you highlight Right. aware question. Is I be or any -- general to in can with there just or your situation? out there there was financial one closures One to anything that name, to chain but and customers, other you any not with that retail On bankruptcy. is have announced today pizza of driving the work we

Dan Fachner

I the would believe announcing last I additional probably the reading and XXXX. know am. have and been that was we pretty concern customers already. And you our about aware there that one talked We have to. Nothing’s their funding thing that night that are with of biggest out AMC comfortable we the you channel who got And are feel if theaters. be CEO some would what they there be they through good was same

so that and it our feels And cleaning would like biggest that’s up. concern have been

Robert Costello

Is three the the in about like, last you months going costs, on go the went if question, six on Right. XX% feel you XX%, saw I higher side, pricing to months. that up? doughnuts something commodity have with the costs flexibility for comfortable the Last up, bakery still

Dan Fachner

Yeah.

that, you that’s commodities do are so decision. and for yeah, That As was we makes closely we agree But Gerry’s and are who really us, We not that. the our with talked was watching can’t retailer to earlier the continue that and and what to I referring decision, will speak to there not saying really them. I typically retailers. that

Robert Costello

Thanks All again. right.

Dan Fachner

Thank you.

Gerry Shreiber

You are welcome.

Operator

have this no And time. further questions we at

Dan Fachner

in three your Thank We call really you you And today. our another for very our and back everybody, interest together months. you, forward company in to look with thank Richard. getting much, appreciate joining

Gerry Shreiber

care, everybody. Take

Operator

today’s And conference. participating. you, gentlemen. Thank concludes ladies for you thank and This

disconnect. You may now

Gerry Shreiber	Chairman and CEO
Dan Fachner	President
Ken Plunk	Chief Financial Officer
Marjorie Roshkoff	Vice President and General Counsel
Bob Pape	Senior Vice President, Sales
Bob Radano	Senior Vice President and COO
Rob Dickerson	Jefferies
Ryan Bell	Consumer Edge Research
Jon Andersen	William Blair & Company
Todd Brooks	CL King & Associates
Robert Costello	Asset Management Inc.

J&J Snack Foods (JJSF) 26 Jan 212021 Q1 Earnings call transcript