EX-99.1 2 a5667713ex991.htm EXHIBIT 99.1

Exhibit 99.1

J & J Snack Foods Announces Down Earnings

PENNSAUKEN, N.J.--(BUSINESS WIRE)--J & J Snack Foods Corp. (NASDAQ:JJSF) today announced record sales but lower earnings for its second quarter and six months ended March 29, 2008.

Sales increased 11% to $144.2 million from $130.0 million in last year's second quarter. Net earnings decreased 25% to $4.0 million from $5.3 million last year. Earnings per diluted share were $.21 for the March quarter compared to $.28 last year. Operating income decreased 31% to $5.7 million this year from $8.2 million in the year ago period.

For the six months ended March 29, 2008, sales increased 13% to $275.1 million from $244.2 million in last year’s first half. Net earnings decreased 35% to $5.9 million in the six months from $9.1 million last year. Earnings per diluted share were $.31 for the six months compared to $.48 last year. Operating income decreased 40% to $8.0 million from $13.3 million in the year ago period.

Gerald B. Shreiber, J & J’s President and Chief Executive Officer, commented, “Although our overall sales increased, we continue to be impacted by escalating input costs, particularly commodities such as flour and dairy products.”

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, WHOLE FRUIT sorbet, FRUIT-A-FREEZE frozen fruit bars, MARY B’S biscuits and dumplings, DADDY RAY’S fig and fruit bars, 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; Moscow Mills, Missouri; Pensacola, Florida and Vernon and Newport, 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

 

Six Months Ended

March 29,   March 31, March 29,   March 31,

2008

2007

2008

2007

(in thousands)
 
Net sales $ 144,229 $ 130,040 $ 275,127 $ 244,182
Cost of goods sold   103,829   87,633   199,340   166,527
Gross profit 40,400 42,407 75,787 77,655
Operating expenses   34,720   34,212   67,771   64,325
Operating income 5,680 8,195 8,016 13,330
Other income   658   507   1,437   1,463

Earnings before income taxes

6,338 8,702 9,453 14,793
Income taxes   2,340   3,369   3,558   5,655
Net earnings $ 3,998 $ 5,333 $ 5,895 $ 9,138
 
Earnings per diluted share $ .21 $ .28 $ .31 $ .48
Earnings per basic share $ .21 $ .29 $ .31 $ .49

Weighted average number of diluted shares

18,982 19,014 19,029 18,954

Weighted average number of basic shares

18,785 18,601 18,777 18,570
 

Consolidated Balance Sheets

March 29, 2008

 

September 29, 2007

(in thousands)
 

Current assets, excluding auction market preferred stock

$ 126,462 $ 124,164
Property, plant & equipment, net

 

93,957 93,222
Goodwill 60,314 60,314
Other intangibles, net 55,949 58,333
Auction market preferred stock 45,200 41,200
Other   3,118   3,055
Total $ 385,000 $ 380,288
 
Current liabilities $ 66,424 $ 64,601
Long-term obligations under capital leases 428 474
Deferred income taxes 19,180 19,180
Other long-term liabilities 1,950 451
Stockholders' equity   297,018   295,582
Total $ 385,000 $ 380,288

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
Senior Vice President
Chief Financial Officer
856-665-9533, x 268