JJSF - Earnings call transcript Q3 2021

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Operator

Welcome to the J&J Snack Foods' Third Quarter Earnings Call. My name is Danielle and I'll 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 Fachner. now would call Dan over I

You may begin.

Daniel Fachner

Dan I'm to Fachner our morning. third welcome and Good call. quarter earnings

We listening you to us. delighted in are with have

contained some uncertainties and could projected cause differ The Let in certain to that obligatory results from start subject to with forward-looking me statements materially herein actual the are risks statements. comments. those forward-looking

Snack undertake reflect undue no management's or forward-looking not the cautioned that to these for on and like Foods. are date revise reliance hereof. to welcome arise I'd to the obligation thank place you We only interest publicly update analysis statements your J&J statements, events You as to after of which or you Again, forward-looking these date. reflect circumstances in

to quarter. today performance. talk thrilled are the about by our to strong you like We'd for employees take strong, QX business a thanking across begin to deliver our helping We

in a is moving traffic brand Consumers over an us the enjoying in really food product our embracing Financially, growing sipping beach from and quickly at starting with portfolio business benefit to Our retail and balance service missed and invest this we strength multiple our future opportunities our are The consumer our leverage closer sheet business activities. to much they confident performance whether of and to that their continue is Tea business. across at enables that customers. past economy pre-COVID year, remain is the or family. Iced growth game, SUPERPRETZEL an the to opportunities. extremely strengthen I

Counsel; Sales; Pape, Vice Vice [ph], James President President, Bob President Operations; Vice Controller. Senior Plunk, Vice So, joining and CFO; and Senior of Corporate me Marjorie President, today Kramer Hamill, and Vice President Ken Roshkoff, Bob General are

million few XX%. minutes exciting an the sales operations. of net a results. were Let of our review Results for to $XXX.X quarter, take me increase

by and ICEEs, Pretzels, significantly, volume, fiscal XX%, categories. our by beating prior segments segments frozen food our XXXX million increase to efficiencies Improved Both core retail margins quarter compared X% Our a improved product cost service sales churros, across compared Operating led and mix, by three all pre-COVID $XX.X gross improved sales and last quarter, beating $XX.X and sales quarter. of same XX%. novelty strong Beverage sales business Soft product million to Frozen Income focus an when when respectively. returned volume, the improved year. for help year favorable was profitability to last and drive on

them. Food of in pre-COVID this key embraced levels, stores theaters. Sales our ticket past through led over had as and venues accelerated Consumers pre-COVID each by the anxious just our sales Now, I'd an service, the quarter the segments. outstanding key X%. by spending returned customers QX missed sales. channels also XXXX business they of to XX% quarter improved food average these in review like service exceeded restaurants, results driving many our and schools, sea and venues to increased for more Sales of for customer Traffic to are amusement activities consumers year. recreation,

and Soft frozen increased sales, Churros XX%. and and Pretzel XXX% and XXX% respectively. sales bakery increased increased ICEEs juices XX% products

and product quarter income in Our or Operating driven food margin customers. year one strong had driven million the XXX% Supermarkets Gross last club strong showing. last developed goods quarter, by cost a product handheld rate efficiencies. points wholesale sales the and in million a $XX.X mix, $XX.X quarter. exceeding continue of our a by XXX over basis by improved business was of higher volume, Retail new increased segment our sales service for

venues. into food as service enter even out the consumers Our Retail Supermarket business remains strong, back

than the for true X% for year's sales third probably the XX% a XX% performance. of against quarter of which in growth year, below sales last quarter. same quarter better our XXXX was comparison Also, While the a last were quarter is this better were

Our business well XX% growing to year. last over continues perform Frozen Novelty

pre-COVID support channel movies. that quarter, mass in. XX%, sales increased the to increased continue the led with from XX% year. this gross basis XXX%, $X.X driven XX% XXXX. but over expense the to or margins also quarter increased Machine handhelds XXX expectations continue recovery. merchandisers, business sales our for channels. to the decreased quarter we're margins points million this XXXX XX% revenue is started sales invest XX%, in decline however, continued replacement Soft improved amusement Pretzels quarter, QSRs, by increased in Frozen in equipment The year. lags were in Frozen biscuits maintenance momentum and our to a XX%. consumers better the will theater than compared driven improvement seeing and our by and last by some increase Beverage and traffic channel a levels, last Operating as Service growth XX.X% the to opportunities. more great as to as Beverages, returned over in income, customers as improve here. traffic operating still XXXX Beverage-related post-COVID customers above Sales management. quarter Operating XX% income heavily This big revenue accelerated experienced increased retail that and by this QX increase traffic was This compared in segment primarily prior XX% theater

the Total volume sales profit continued the driven second XXX and basis compared sales efficiency when benefit a improvement, an quarter, to by operating was to higher Our efficiencies. our Operating our of cost. to led of was quarter, a in sales points Beverage improved sales as expense points compared in higher categories, profit year's and gross XX.X% quarter. overall by leveraging XXX on margin the gross XX.X% realized performance margins strong for segment profit sales basis the XX.X% of improved quarter of and million a margin operating percentage Consolidated improvement this focus managing Gross last as increases, product Frozen almost percentage $XX.X was quarter. operating XX.X%.

doing year. million, million $XX.X SG&A the marketing earnings As great when is and Net compared sales a business and to cash even up and managing of quarter volume end, strong $XXX expenses balance increase pre-COVID last that's million our $XX below growth. Capital job was cash September's our led spending were of spending. June by million an year earnings investment XXXX, the XX, for from as accelerates, flow, $XX.X securities

Our drive balance sheet to we shareholders. remains are well-positioned for strong and growth our

growing remain as on prior July share. continue years. with year business. dividend to on $X.XX declared XXXX. spending expenditures continue consistent be Board not our months by look spent did $X.XXX and increase business. shares estimate was We quarter. rate in of for buy through our a long-term invest our A growth an for represents to XXXX of for and cash stock June capital for planned of Directors opportunities nine acquisition opportunity We and we focused cash dividend million from per That We $XX.X in back the XX, the to of the about XXth, any XX% the ended We our share quarterly dividend our this previous paid during efficiencies

in Foods up to than you million, numbers excited now Snack the stabilized held Our you. quarter cash investment I was today. I interest open thank $X.X was meeting Thank want for any you more as for and and continued prior million second to deliver year's to I'm questions. J&J in your will this money income these market reserves. less year $X.X great

Operator

you. Thank

We now Bell. a the Instructions] begin ahead. [Operator will question-and-answer Ryan have question Please We session. from go

Ryan Bell

everyone. Hey

Daniel Fachner

Ryan. Hey

Ryan Bell

on congrats Hey, a quarter. good

amusement the consistent this mass QSR, much to bit seen point, other business had traffic getting of is the than channels provide theater; color more some at Frozen to levels be just Beverage question a around the seem pressures commentary Just doing that of well. theater about the structural units; primary a was the We reopened? of business? base has up was back and normalized how appreciate your to channel? that in you just merchandise, Would has business The detractors

Daniel Fachner

it FCB Remember is. back or on The ICEE levels of us. channels Ryan, that business. to business come we the is the the for piece about theater Most we're XX%. that all are theater is for biggest normal waiting business for really other have

really some And had so business. rest And that added. we've the on coming strong we all are business waiting back, feel but new we've about of great we the that

we remember diversification some you we've some see a of to quarters able talked about through. that been and If couple accounts come ago, into diversification

in we're, rolling a a the program great new mentioned we're really Krystal's the program south restaurants out potential that some I in rolling businesses think we're pipeline. within and Corral seeing hamburgers at we out and Golden

about So, it return. to really business good we as starting is theater feel the

Ryan Bell

then you a as actually service, That’s food levels. of well provide Thanks. that? XXXX for the if driver And more What's to little bit content? relative grew can helpful. Is amusement that primary restaurants, it

Daniel Fachner

strong. really is channel park amusement the again, Yes,

is maybe per that lot price to picked earlier, my comments addition In -- this up in and up these of you the a in locations too. ticket

the the even growth per average food price the new selling theaters, per up we're where seeing and per that prices ticket ballparks a service So, lot come we're and where ticket park, we're amusement prices that as selling as of in channel. in they ticket back, the in up; up well good in

Ryan Bell

food you're the and come how as efficiencies if that you're then over volumes of seeing can service you Frozen huge on business? comments you coming in the months, the you. cost Thank online increases seeing and terms Great. the to against of what give the And inflation, input back balance that in Beverage more

Daniel Fachner

on working from offset the But there that really been much passing things we're on we're like increases hoping that. everybody, busy like certainly we've hard will commodities fourth quarter. we've Well, increases also taken and some at that that. out price some It's of in

we we're So, will going really on that. hoping the initiatives most we're the time, continuous at within of At offset plants that. some have that improvement hard great help working also same

Ryan Bell

it Great. Thanks. for That's me.

Daniel Fachner

you, Thank Ryan.

Operator

question next Costello. Robert comes go Our Instructions] [Operator ahead. Please from

Robert Costello

a the I Hello. production. have on question

plant year the a pickup about You've and I closed in a guess have demand. you ago

two? -- million. you that are that lieu of the the So, X the in by down And -- went in quarter, how the saw inventories I you balancing

growth in to up with pickup? expected for So, are business, are production this you to you having make this increase your beyond -- pickup sales just

Daniel Fachner

those lot were out that a you're But demand the we've a best did able you. out and way and so different and to Chicago there. can products, been industry able the produce different down way question, plants do most plant. in with is to shuffle a challenged close Robert now in the And of to continuing today keep morning. with heavy that there's up with up labor we're and Good the are there keep lot to internally products that and like the heavy the that and We manufacturers good different we of it able to that being be demand. today, with Yes, right, into making talking plant the

Robert Costello

is have workforce mentioning -- it help it here? a because -- been is to manufacturers your of Is that the flexible stand you able out repeatedly? lot give that do you've how have -- idea problems you helped Now, think not other the what's full-time? you're Can all some of of been been you from us manufacturers

Daniel Fachner

if I of had managers that don't has pretty has that we magic shortage, of know you with. to with up a except one things been working have Well, we've place heavy the to as labor management in lot earlier, plant manufacturers, I to forecasting do our keep demand. that watched done a a that with deal we great other the really best to with I can those who Like have there good that job team and bullet the give We've closely. mentioned

it to And up to out with on the increases weekly so as pass keep meet stay we guess us. I are and just on going some think But bullet, that there closely And the can. try for to a had some of that really salary if force. labor ahead I good in we it watching place give best there's managers magic to was I who we've

Robert Costello

last One Right. question.

building in a in was big the years their in in still doughnut there of there. I there possibility plant larger Is Mid-Atlantic, do Pennsylvania down near-term Florida You're couple in customers they it is -- the the big store or down manufacturing your a here when now than down any base away?

Daniel Fachner

we've that considered, something real about important in talk it's Well, expect a talk I customer. the about it with something wouldn't that short-term. it often And to we in we but and that it's happen

Robert Costello

Thanks. right. All

Daniel Fachner

Thank you.

Operator

no have this at time. further Instructions] [Operator We questions

Daniel Fachner

together with appreciate Well, J&J to look to Foods our We Snack next and listening your in. everybody for forward interest back at I call. want we in getting thank you earnings

wonderful You Thank day. have bye. much. very you a Bye.

Operator

Thank Ladies conference. this you. today's participating. gentlemen, for Thank and concludes you

You disconnect. may now

J&J Snack Foods (JJSF) 27 Jul 212021 Q3 Earnings call transcript