J & J Snack Foods Reports Record First Quarter Sales and Earnings
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 ———————————— Three Months Ended —————— December 24, December 25, 2005 2004 ———— ———— (unaudited) (in thousands) Net sales $ 108,571 $ 98,521 Cost of goods sold 75,454 68,525 ———— ———— Gross profit 33,117 29,996 Operating expenses 28,920 26,342 ———— ———— Operating income 4,197 3,654 Other income 674 298 ———— ———— 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 ————————— 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.