J & J Snack Foods Reports Record First Quarter Sales And 26% Increase in Earnings

J & J Snack Foods Corp. (NASDAQ:JJSF) today announced record sales and earnings for the first quarter ended December 30, 2006.

Sales increased 5% to $114.1 million from $108.6 million in last year’s first quarter. Net earnings increased 26% to $3.8 million in the current quarter from $3.0 million last year. Earnings per diluted share were $.20 for the first quarter compared to $.16 last year. Operating income increased 22% to $5.1 million in the current quarter from $4.2 million in the year ago quarter.

Gerald B. Shreiber, J & J’s President and Chief Executive Officer, commented, “All of our business units contributed to the successful quarter. We are hopeful of continuing this performance for this fiscal year and beyond.”

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

December 30,

December 24,

2006 

2005 

(unaudited)

(in thousands)

 

Net sales

$

114,142 

$

108,571 

Cost of goods sold

 

78,894 

 

75,454 

Gross profit

35,248 

33,117 

Operating expenses

 

30,113 

 

28,920 

Operating income

5,135 

4,197 

Other income

 

956 

 

674 

Earnings before income taxes

6,091 

4,871 

Income taxes

 

2,286 

 

1,861 

Net earnings

$

3,805 

$

3,010 

 

Earnings per diluted share

$

.20 

$

.16 

Earnings per basic share

$

.21 

$

.16 

Weighted average number of diluted shares

18,895 

18,697 

Weighted average number of basic shares

18,539 

18,328 

 

 

 

Consolidated Balance Sheets

December 30, 2006

September 30, 2006

(unaudited)

(in thousands)

 

Current assets

$

166,843 

$

172,244 

Property, plant & equipment, net

85,619 

85,447 

Goodwill

57,948 

57,948 

Other intangibles, net

22,191 

22,669 

Other assets

 

5,485 

 

2,500 

Total

$

338,086 

$

340,808 

 

 

Current liabilities

$

53,024 

$

59,089 

Deferred income taxes

18,211 

18,211 

Other long term obligations

614 

635 

Stockholders’ equity

 

266,237 

 

262,873 

Total

$

338,086 

$

340,808 

 

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.