J & J Snack Foods Reports Fiscal 2024 Fourth Quarter Revenue of $426.8 Million
J&J Snack Foods reported Q4 fiscal 2024 results with revenue of $426.8M, down 3.9% year-over-year, while full-year revenue increased 1.0% to $1.57B. Q4 net earnings were $29.6M with diluted EPS of $1.52. Full-year performance showed improved profitability with net earnings of $86.6M, up 9.7%, and gross margin of 30.9%. The company faced challenges in Q4 including softer consumer spending and production inefficiencies, but demonstrated strong operational improvements throughout the year with record annual sales and gross profit.
J&J Snack Foods ha riportato i risultati fiscali del quarto trimestre 2024 con un fatturato di $426.8M, in calo del 3.9% rispetto all'anno precedente, mentre il fatturato annuale è aumentato dell'1.0% a $1.57B. Gli utili netti del quarto trimestre sono stati di $29.6M con un utile per azione (EPS) diluito di $1.52. Le performance annuali hanno mostrato un miglioramento della redditività, con utili netti di $86.6M, in crescita del 9.7%, e un margine lordo del 30.9%. L'azienda ha affrontato sfide nel quarto trimestre, tra cui una minore spesa dei consumatori e inefficienze produttive, ma ha dimostrato forti miglioramenti operativi durante tutto l'anno con vendite annuali e profitti lordi record.
J&J Snack Foods reportó los resultados del cuarto trimestre fiscal 2024 con ingresos de $426.8M, una disminución del 3.9% en comparación con el año anterior, mientras que los ingresos anuales aumentaron un 1.0% a $1.57B. Las ganancias netas del cuarto trimestre fueron de $29.6M con ganancias por acción diluidas (EPS) de $1.52. El rendimiento del año completo mostró una mejora en la rentabilidad con ganancias netas de $86.6M, un aumento del 9.7%, y un margen bruto del 30.9%. La empresa enfrentó desafíos en el cuarto trimestre, incluyendo un menor gasto de los consumidores e ineficiencias en la producción, pero demostró fuertes mejoras operativas a lo largo del año con ventas anuales y ganancias brutas récord.
J&J Snack Foods는 2024 회계 연도 4분기 실적을 보고하며 $426.8M의 매출을 기록하였고, 이는 지난해 대비 3.9% 감소한 수치입니다. 반면 연간 매출은 1.0% 증가하여 $1.57B에 도달했습니다. 4분기 순이익은 $29.6M이며, 희석 주당 순이익(EPS)은 $1.52입니다. 연간 실적은 순이익이 $86.6M으로 9.7% 증가하고, 총 마진이 30.9%로 개선되며 수익성이 향상된 것으로 나타났습니다. 회사는 4분기에 소비자 지출 약세 및 생산 비효율성 등 여러 도전에 직면했으나, 연중 기록적인 연간 판매 및 총 이익을 통해 강력한 운영 개선을 보여주었습니다.
J&J Snack Foods a publié les résultats du quatrième trimestre de l'exercice 2024, avec un chiffre d'affaires de $426.8M, en baisse de 3.9% par rapport à l'année précédente, tandis que le chiffre d'affaires annuel a augmenté de 1.0% pour atteindre $1.57B. Le bénéfice net du quatrième trimestre s'est élevé à $29.6M avec un BPA dilué de $1.52. La performance annuelle a montré une amélioration de la rentabilité avec un bénéfice net de $86.6M, en hausse de 9.7%, et une marge brute de 30.9%. L'entreprise a été confrontée à des défis au quatrième trimestre, notamment une consommation plus faible et des inefficacités de production, mais a démontré de fortes améliorations opérationnelles tout au long de l'année avec des ventes annuelles et des bénéfices bruts record.
J&J Snack Foods hat die Ergebnisse des vierten Quartals des Geschäftsjahres 2024 veröffentlicht, mit Einnahmen von $426.8M, was einem Rückgang von 3.9% im Vergleich zum Vorjahr entspricht, während die Einnahmen für das Gesamtjahr um 1.0% auf $1.57B gestiegen sind. Der Nettogewinn im vierten Quartal betrug $29.6M mit einem verwässerten Gewinn pro Aktie (EPS) von $1.52. Die Jahresleistung zeigte eine verbesserte Rentabilität mit einem Nettogewinn von $86.6M, der um 9.7% gestiegen ist, und einer Bruttomarge von 30.9%. Das Unternehmen stand im vierten Quartal vor Herausforderungen, einschließlich eines geringeren Verbraucherausgaben und Produktionsineffizienzen, zeigte jedoch im Laufe des Jahres starke betriebliche Verbesserungen mit Rekordverkaufs- und Bruttogewinnzahlen.
- Full-year revenue increased 1.0% to $1.57B
- Annual gross margin improved 80 basis points to 30.9%
- Full-year net earnings increased 9.7% to $86.6M
- Adjusted EBITDA margins improved 110 basis points for the year
- Operating income increased 7.3% to $117.5M for fiscal 2024
- Q4 revenue declined 3.9% to $426.8M
- Q4 operating income decreased 4.5% to $39.8M
- Q4 gross margin declined 110 basis points to 31.8%
- Retail segment sales declined 13.7% in Q4
- Experiencing continued inflation in chocolates and sugar costs
Insights
J&J Snack Foods' Q4 results reveal mixed performance with notable headwinds. While normalized sales grew
Full-year performance shows resilience with revenue reaching
Key concerns include rising input costs, particularly in cocoa/chocolate and sugar, which may necessitate further price increases. The company's diversification strategy and new QSR partnerships provide growth potential, but consumer spending weakness remains a near-term challenge.
The company's channel performance reveals important market dynamics. Theater segment shows promise with an improving film slate for 2025, potentially boosting Dippin' Dots and ICEE sales. However, current softness in amusement, convenience and restaurant channels signals broader consumer spending constraints.
Strategic expansion of Dippin' Dots into retail and new churros launches in QSR channels represent significant growth opportunities. The company's ability to secure partnerships with major QSR chains demonstrates strong market positioning, contributing
Full Year Fiscal 2024 Revenue Increases
Adjusted EPS of
MOUNT LAUREL, N.J., Nov. 13, 2024 (GLOBE NEWSWIRE) -- J&J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today reported financial results for the fourth quarter (13 weeks) and full year (52 weeks) ended September 28, 2024.1
Fourth Quarter | Full-Year | |||||||
Actuals | % v. LY | Actuals | % v. LY | |||||
Net Sales | - | |||||||
Operating Income | - | |||||||
Net Earnings | - | |||||||
Earnings per Diluted Share | - | |||||||
Adjusted Operating Income | - | |||||||
Adjusted EBITDA | - | |||||||
Adjusted Earnings per Diluted Share | - |
This press release contains non-GAAP financial measures. Please refer to the Non-GAAP Financial Measures section below for reconciliations to the most comparable GAAP measures.
1J&J’s fiscal 2023 fourth quarter and full year included an additional week, with reported results comparing 14 weeks in the fourth quarter of fiscal 2023 to 13 weeks in the fourth quarter of fiscal 2024. Likewise, reported results include 53 weeks for the full year 2023 results, compared to 52 weeks for fiscal 2024. For purposes of comparability, we will refer to “normalized” results to more accurately explain performance trends. For reconciliation of these “normalized” results to GAAP measures, please refer to the non-GAAP financial measures section below.
“J&J Snack Foods delivered another year of strong financial performance in fiscal 2024,” stated Dan Fachner, J&J Snack Foods Chairman, President, and CEO. “Our results demonstrate that we are successfully executing our strategy, improving operational efficiencies and margins, growing profits faster than sales and expanding growth opportunities across channels and customers. In addition to generating record annual sales and gross profit, we also set a new record for full-year Adjusted EBTIDA. For the year, we grew sales
“Looking at our fiscal fourth quarter results, net sales decreased
“As we enter fiscal 2025, we remain confident in the growth potential of our core products and the success of our new product launches and client partnerships. For example, we continue to expand the breadth and depth of Dippin Dots across the theater channel and are preparing for the upcoming launch into retail. With a more compelling film slate in fiscal 2025, we are optimistic about the growth opportunity of Dippin Dots and Icee beverages in this channel and expect sales of our other products to improve as attendance trends improve. We are also seeing continued success with some of the largest national QSR chains and expect our recent churros launch in this channel to result in new opportunities.
“In summary, we are encouraged by the progress we are making in maximizing sales across all customer channels and enhancing our operational efficiencies. We have a diverse portfolio of beloved products and brands, presenting us with significant growth opportunities, both in terms of the products we sell as well as where we sell them. In addition, our strong balance sheet and liquidity, paired with our experienced leadership team, give us confidence in our ability to create long-term value for our employees, partners, and shareholders.”
Fourth Quarter Highlights
Net sales decreased
Key highlights include:
- Food Service segment sales declined
3.0% to$262.2 million , but increased4.6% on a normalized basis versus Q4 ’23. - Retail segment sales declined
13.7% to$55.9 million , and decreased5.7% on a normalized basis versus Q4 ’23. - Frozen Beverage segment sales declined
0.1% to 108.7 million, but increased7.7% on a normalized basis versus Q4 ’23. - On a reported basis, core products, including Soft Pretzels, Churros, and Frozen Novelties, including Dippin Dots, all experienced sales declines in the quarter driven by one fewer week in Q4 ’24 vs. Q4 ’23 and softer consumer spending. This was partially offset by sales growth across Handhelds and Bakery.
Gross profit as a percentage of sales was
Total operating expenses of
- Distribution costs of
$46.0 million represented10.8% of sales in the quarter, flat versus the prior year period, as investments in improving our supply chain network continue to drive expenses savings and distribution efficiencies. - Marketing and selling expenses of
$31.1 million represented7.3% of sales, versus7.0% in the prior year period and continue to drive innovation, promote our brands and launch new selling opportunities. - Administrative expenses of
$18.2 million represented4.3% of sales in Q4 ’24, favorably comparing to5.0% in Q4 ’23.
Adjusted operating income was
Fiscal 2024 Highlights
Net sales increased
Key highlights include:
- Food Service sales grew
0.3% in fiscal 2024, and2.4% on a normalized basis compared to the prior year, led by Churros and Handheld sales and to a lesser degree Bakery and Frozen Novelties sales. This was partially offset by declines in Soft Pretzel sales. - Retail sales continued their strong performance, growing
2.7% over the prior record year period and4.4% on a normalized basis, driven by growth in handhelds and soft pretzels, partially offset by declines in Frozen Novelties and Biscuits. - Frozen Beverages segment sales grew
1.9% in fiscal 2024, and3.0% on a normalized basis compared to the prior year. Reported sales were driven by2.4% increase in Beverages and a0.7% increase in Maintenance and Machine revenue.
Gross profit as a percentage of sales improved 80 basis points to
Total operating expenses increased to
- Distribution costs were
11.2% of sales for the year, versus11.1% in the prior year period, reflecting improved supply chain efficiencies after adjusting for one-time transformation investments. - Marketing and selling expenses were
7.5% of sales, compared to7.1% last year, driven by more marketing dollars aligned with new customer opportunities and product launches. - Administrative expenses were
4.7% of sales this year, compared to4.8% last year, reflecting improved management of expenses and leverage from higher sales.
Fiscal 2024 operating income increased
Fiscal 2024 net earnings increased
Food Service Segment Fourth Quarter Highlights
- Q4 ’24 food service sales totaled
$262.2 million , or a decline of3.0% , compared to Q4 ’23 sales of$270.3 million . Sales on a normalized basis grew4.6% . - On a reported basis, churros’ sales declined
9.5% to$25.2 million , reflecting lower club and restaurant channel sales, partially offset by new business growth with a major QSR customer. Soft Pretzel sales declined9.4% while Frozen Novelties sales declined4.3% , driven primarily by a9% decrease in Dippin’ Dots sales due to soft traffic in amusement and convenience channels. These declines were partially offset by8.4% growth in Handheld sales. - Sales of new products and added placement with new customers totaled approximately
$8.0 million , driven primarily by the addition of churros to the menu of two major QSR customers. - Q4 ’24 operating income decreased
12.7% to$15.3 million , versus the prior year period with the decrease primarily driven by the decline in overall sales and the shift in product mix.
Retail Segment Fourth Quarter Highlights
- Q4’24 retail sales totaled
$55.9 million , or a decline of13.7% , compared to Q4 ’23. Sales on a normalized basis decreased5.7% . - Soft Pretzel and Frozen Novelties sales declined,
19.3% and16.8% , respectively, while sales of Biscuits were relatively flat, down0.3% . These declines were partially offset by 14.9 % growth in Handheld sales driven by expanded distribution with a major mass merchant. - New product innovation contributed approximately
$1.0 million in the quarter driven primarily by the growth of Superpretzel Bavarian sticks and frozen novelties. - Operating income for the quarter was
$3.3 million , a decline of$0.4 million versus the prior year period driven entirely by softer sales in the quarter.
Frozen Beverages Segment Fourth Quarter Highlights
- Frozen beverages segment sales totaled
$108.7 million , flat compared to a record Q4 ’23. Sales on a normalized basis grew7.7% . - Beverage sales were flat at
$71.3 million , led by softness in the amusement/entertainment, convenience and QSR channels. Sales did improve for the theater channel, especially in July and September as the market started to see a higher volume of strong releases. The theater industry expects significant improvement in calendar 2025 as the schedule of new releases is much stronger. - Repair and Maintenance revenues declined
1.3% , versus the prior year period reflecting weaker maintenance call volumes, while Machine sales were up1.7% in the quarter. - Q4 ’24 operating income increased
3.4% to$21.3 million for the quarter, compared to a Q4 ’23 operating income of$20.6 million , driven by improved product mix and effective management of operating expenses.
Conference Call
J & J Snack Foods Corp. will host a conference call to discuss results and business outlook on November 14, 2024, at 10:00 a.m. Eastern Time. Conference call participants should register by clicking on this Registration Link to receive the dial-in number and a personal PIN, which are required to access the conference call. A live audio webcast of the conference call will also be available on the Investors homepage at https://www.jjsnack.com/investors/.
About J & J Snack Foods Corp.
J & J Snack Foods Corp. (NASDAQ: JJSF) is a leader and innovator in the snack food industry, providing innovative, niche, and affordable branded snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SUPERPRETZEL, the #1 soft pretzel brand in the world, as well as internationally known ICEE and SLUSH PUPPIE frozen beverages, DIPPIN’ DOTS ice cream, LUIGI’S Real Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT sorbet and frozen fruit bars, HOLA! CHURROS, and THE FUNNEL CAKE FACTORY funnel cakes and several bakery brands within DADDY RAY’S, COUNTRY HOME BAKERS, and HILL & VALLEY. For more information, please visit http://www.jjsnack.com.
*MINUTE MAID is a registered trademark of The Coca-Cola Company.
Cautionary Statement Regarding Forward-Looking Information
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s expected future financial position, results of operations, revenue growth and profit levels, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “goals,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. This includes, without limitation, our statements, and expectations regarding any current or future recovery in our industry (or the industries of our customers) and the future impact of our operational efficiency projects. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of management. We do not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include consumer spending, price competition, acceptance of new products, the pricing and availability of raw materials, transportation costs, changes in the competitive marketplace the uncertainty and ultimate economic impact of the COVID-19 pandemic or similar health outbreaks, and other risks identified in our annual report on Form 10-K, and our other filings with the Securities and Exchange Commission. Many of these factors are outside of the Company’s control.
Non-GAAP Financial Measures
Adjusted EBITDA consists of net earnings adjusted to exclude: income taxes (benefit); investment income; interest expense; depreciation and amortization; share-based compensation expense; net (gain) loss on sale or disposal of assets; impairment charges, restructuring costs, merger and acquisition costs, acquisition related inventory adjustments, strategic business transformation costs, and integration costs.
Adjusted Operating Income consists of operating income adjusted to exclude impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustments, strategic business transformation costs, and integration costs.
Adjusted Earnings per Diluted Share consists of net earnings adjusted to exclude impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustment, strategic business transformation costs, and integration costs. For purposes of comparability, the income tax effect of pre-tax adjustments is determined using statutory tax rates.
Normalized net sales related metrics are calculated excluding the impact of the additional week on prior year comparable sales results. For the full fiscal year comparative metrics, the additional week is defined as the week beginning on September 25, 2022. For the fiscal fourth quarter comparative metrics, the additional week is defined as the week beginning on June 25, 2023.
This press release contains certain non-GAAP financial measures; Adjusted EBITDA, Adjusted Operating Income, Adjusted Earnings per Diluted Share and Normalized Net Sales. A "non-GAAP financial measure" is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP") in the statements of income, balance sheets, or statements of cash flow of the company. Pursuant to applicable reporting requirements, the company has provided reconciliations below of non-GAAP financial measures to the most directly comparable GAAP measure.
The non-GAAP financial measures presented within the Company's earnings release are not indicators of our financial performance under GAAP and should not be considered as an alternative to the applicable GAAP measure. These non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating these non-GAAP measures, you should be aware that in the future we may incur income, expenses, gains and losses, similar to the adjustments in this press release. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence to our GAAP results and using non-GAAP measures only as supplemental presentations.
The non-GAAP measures presented are utilized by management to evaluate the Company's business performance and profitability by excluding certain items that may not be indicative of our recurring core business operating results. The Company believes that these measures provide additional clarity for investors by excluding specific income, expenses, gains, and losses, in an effort to show comparable business operating results for the periods presented. Similarly, Management believes these adjusted measures are useful performance measures because certain items included in the calculations may either mask or exaggerate trends in the Company’s ongoing operating performance. See the reconciliation of Non-GAAP Financial Measures below.
Investor Contact:
Joseph Jaffoni, Norberto Aja, or Jennifer Neuman
JCIR
(212) 835-8500
jjsf@jcir.com
J & J SNACK FOODS CORP. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||
(Unaudited) | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Quarter ended | Fiscal year ended | ||||||||||||||
September 28, | September 30, | September 28, | September 30, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
(13 weeks) | (14 weeks) | (52 weeks) | (53 weeks) | ||||||||||||
Net sales | $ | 426,756 | $ | 443,863 | $ | 1,574,755 | $ | 1,558,829 | |||||||
Cost of goods sold | 291,225 | 298,119 | 1,088,630 | 1,088,964 | |||||||||||
Gross profit | 135,531 | 145,744 | 486,125 | 469,865 | |||||||||||
Operating expenses | |||||||||||||||
Marketing | 31,085 | 31,234 | 118,805 | 110,258 | |||||||||||
Distribution | 45,975 | 48,082 | 175,601 | 172,804 | |||||||||||
Administrative | 18,171 | 22,375 | 74,771 | 75,425 | |||||||||||
Intangible asset impairment charges | - | 1,678 | - | 1,678 | |||||||||||
Other general expense | 458 | 672 | (597 | ) | 182 | ||||||||||
Total operating expenses | 95,689 | 104,041 | 368,580 | 360,347 | |||||||||||
Operating income | 39,842 | 41,703 | 117,545 | 109,518 | |||||||||||
Other income (expense) | |||||||||||||||
Investment income | 963 | 1,024 | 3,228 | 2,743 | |||||||||||
Interest expense | (294 | ) | (1,050 | ) | (1,826 | ) | (4,747 | ) | |||||||
Earnings before income taxes | 40,511 | 41,677 | 118,947 | 107,514 | |||||||||||
Income tax expense | 10,870 | 11,256 | 32,396 | 28,608 | |||||||||||
NET EARNINGS | $ | 29,641 | $ | 30,421 | $ | 86,551 | $ | 78,906 | |||||||
Earnings per diluted share | $ | 1.52 | $ | 1.57 | $ | 4.45 | $ | 4.08 | |||||||
Weighted average number of diluted shares | 19,532 | 19,398 | 19,449 | 19,324 | |||||||||||
Earnings per basic share | $ | 1.52 | $ | 1.58 | $ | 4.46 | $ | 4.10 | |||||||
Weighted average number of basic shares | 19,444 | 19,306 | 19,389 | 19,257 | |||||||||||
J & J SNACK FOODS CORP. AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
(in thousands, except share amounts) | |||||||
September 28, | September 30, | ||||||
2024 | 2023 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 73,394 | $ | 49,581 | |||
Accounts receivable, net | 189,233 | 198,129 | |||||
Inventories | 173,141 | 171,539 | |||||
Prepaid expenses and other | 14,646 | 10,963 | |||||
Total current assets | 450,414 | 430,212 | |||||
Property, plant and equipment, at cost | |||||||
Land | 3,684 | 3,684 | |||||
Buildings | 54,996 | 45,538 | |||||
Plant machinery and equipment | 475,194 | 445,299 | |||||
Marketing equipment | 317,269 | 296,482 | |||||
Transportation equipment | 15,796 | 14,367 | |||||
Office equipment | 48,589 | 47,393 | |||||
Improvements | 67,923 | 51,319 | |||||
Construction in progress | 28,592 | 56,116 | |||||
Total Property, plant and equipment, at cost | 1,012,043 | 960,198 | |||||
Less accumulated depreciation and amortization | 620,858 | 574,295 | |||||
Property, plant and equipment, net | 391,185 | 385,903 | |||||
Other assets | |||||||
Goodwill | 185,070 | 185,070 | |||||
Other intangible assets, net | 182,256 | 183,529 | |||||
Operating lease right-of-use assets | 152,383 | 88,868 | |||||
Other | 3,793 | 3,654 | |||||
Total other assets | 523,502 | 461,121 | |||||
Total Assets | $ | 1,365,101 | $ | 1,277,236 | |||
Liabilities and Stockholders' Equity | |||||||
Current Liabilities | |||||||
Current finance lease liabilities | $ | 243 | $ | 201 | |||
Accounts payable | 89,268 | 90,758 | |||||
Accrued insurance liability | 16,933 | 15,743 | |||||
Accrued liabilities | 10,063 | 14,214 | |||||
Current operating lease liabilities | 19,063 | 16,478 | |||||
Accrued compensation expense | 23,325 | 23,341 | |||||
Dividends payable | 15,178 | 14,209 | |||||
Total current liabilities | 174,073 | 174,944 | |||||
Long-term debt | - | 27,000 | |||||
Noncurrent finance lease liabilities | 445 | 600 | |||||
Noncurrent operating lease liabilities | 140,751 | 77,631 | |||||
Deferred income taxes | 87,824 | 81,310 | |||||
Other long-term liabilities | 5,038 | 4,233 | |||||
Stockholders' Equity | |||||||
Preferred stock, | - | - | |||||
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 19,460,000 and 19,332,000 respectively | 136,516 | 114,556 | |||||
Accumulated other comprehensive loss | (15,299 | ) | (10,166 | ) | |||
Retained Earnings | 835,753 | 807,128 | |||||
Total stockholders' equity | 956,970 | 911,518 | |||||
Total Liabilities and Stockholders' Equity | $ | 1,365,101 | $ | 1,277,236 | |||
J & J SNACK FOODS CORP. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
(in thousands) | |||||||
Fiscal year ended | |||||||
September 28, | September 30, | ||||||
2024 | 2023 | ||||||
(52 weeks) | (53 weeks) | ||||||
Operating activities: | |||||||
Net earnings | $ | 86,551 | $ | 78,906 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities | |||||||
Depreciation of fixed assets | 63,411 | 56,616 | |||||
Amortization of intangibles and deferred costs | 7,190 | 6,525 | |||||
Intangible asset impairment charges | - | 1,678 | |||||
(Gains) Losses from disposals of property & equipment | 11 | (409 | ) | ||||
Share-based compensation | 6,220 | 5,318 | |||||
Deferred income taxes | 6,434 | 10,935 | |||||
(Gain) Loss on marketable securities | - | (8 | ) | ||||
Other | (199 | ) | 323 | ||||
Changes in assets and liabilities, net of effects from purchase of companies | |||||||
Decrease in accounts receivable | 7,931 | 11,399 | |||||
(Increase) Decrease in inventories | (1,006 | ) | 9,475 | ||||
(Increase) Decrease in prepaid expenses | (2,983 | ) | 5,924 | ||||
Increase (Decrease) in accounts payable and accrued liabilities | (494 | ) | (14,403 | ) | |||
Net cash provided by operating activities | 173,066 | 172,279 | |||||
Investing activities: | |||||||
Payments for purchases of companies, net of cash acquired | (7,014 | ) | - | ||||
Purchases of property, plant and equipment | (73,569 | ) | (104,737 | ) | |||
Proceeds from redemption and sales of marketable securities | - | 9,716 | |||||
Proceeds from disposal of property and equipment | 699 | 1,781 | |||||
Proceeds from insurance for fixed assets | 2,218 | - | |||||
Net cash (used in) investing activities | (77,666 | ) | (93,240 | ) | |||
Financing activities: | |||||||
Proceeds from issuance of stock | 15,740 | 15,212 | |||||
Borrowings under credit facility | 71,000 | 114,000 | |||||
Repayment of borrowings under credit facility | (98,000 | ) | (142,000 | ) | |||
Payments on finance lease obligations | (151 | ) | (180 | ) | |||
Payment of cash dividend | (56,957 | ) | (53,877 | ) | |||
Net cash (used in) provided by financing activities | (68,368 | ) | (66,845 | ) | |||
Effect of exchange rates on cash and cash equivalents | (3,219 | ) | 2,206 | ||||
Net increase (decrease) in cash and cash equivalents | 23,813 | 14,400 | |||||
Cash and cash equivalents at beginning of period | 49,581 | 35,181 | |||||
Cash and cash equivalents at end of period | $ | 73,394 | $ | 49,581 | |||
J & J SNACK FOODS CORP. AND SUBSIDIARIES | |||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||
(Unaudited) (in thousands) | |||||||||||||||
Quarter ended | Fiscal year ended | ||||||||||||||
September 28, | September 30, | September 28, | September 30, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
(13 weeks) | (14 weeks) | (52 weeks) | (53 weeks) | ||||||||||||
Sales to external customers: | |||||||||||||||
Food Service | |||||||||||||||
Soft pretzels | $ | 58,252 | $ | 64,330 | $ | 222,237 | $ | 235,572 | |||||||
Frozen novelties | 47,531 | 49,643 | 147,995 | 145,425 | |||||||||||
Churros | 25,151 | 27,780 | 114,306 | 108,927 | |||||||||||
Handhelds | 23,202 | 21,408 | 86,053 | 82,292 | |||||||||||
Bakery | 99,674 | 96,319 | 387,129 | 378,149 | |||||||||||
Other | 8,340 | 10,802 | 27,475 | 31,475 | |||||||||||
Total Food Service | $ | 262,150 | $ | 270,282 | $ | 985,195 | $ | 981,840 | |||||||
Retail Supermarket | |||||||||||||||
Soft pretzels | $ | 15,734 | $ | 19,505 | $ | 61,744 | $ | 60,272 | |||||||
Frozen novelties | 29,445 | 35,384 | 112,192 | 115,807 | |||||||||||
Biscuits | 6,151 | 6,168 | 24,229 | 25,074 | |||||||||||
Handhelds | 5,987 | 5,212 | 26,253 | 16,655 | |||||||||||
Coupon redemption | (1,130 | ) | (1,625 | ) | (3,162 | ) | (2,561 | ) | |||||||
Other | (251 | ) | 201 | 52 | 181 | ||||||||||
Total Retail Supermarket | $ | 55,936 | $ | 64,845 | $ | 221,308 | $ | 215,428 | |||||||
Frozen Beverages | |||||||||||||||
Beverages | $ | 71,322 | $ | 71,319 | $ | 230,030 | $ | 224,655 | |||||||
Repair and maintenance service | 25,051 | 25,385 | 96,589 | 95,941 | |||||||||||
Machines revenue | 11,309 | 11,116 | 38,188 | 37,933 | |||||||||||
Other | 988 | 916 | 3,445 | 3,032 | |||||||||||
Total Frozen Beverages | $ | 108,670 | $ | 108,736 | $ | 368,252 | $ | 361,561 | |||||||
Consolidated sales | $ | 426,756 | $ | 443,863 | $ | 1,574,755 | $ | 1,558,829 | |||||||
Depreciation and amortization: | |||||||||||||||
Food Service | $ | 12,155 | $ | 10,926 | 46,131 | $ | 39,758 | ||||||||
Retail Supermarket | 288 | 543 | 1,736 | 1,966 | |||||||||||
Frozen Beverages | 5,773 | 5,308 | 22,734 | 21,417 | |||||||||||
Total depreciation and amortization | $ | 18,216 | $ | 16,777 | $ | 70,601 | $ | 63,141 | |||||||
Operating Income: | |||||||||||||||
Food Service | $ | 15,260 | $ | 17,472 | $ | 49,454 | $ | 49,778 | |||||||
Retail Supermarket | 3,258 | 3,609 | 16,632 | 9,375 | |||||||||||
Frozen Beverages | 21,324 | 20,622 | 51,459 | 50,365 | |||||||||||
Total operating income | $ | 39,842 | $ | 41,703 | $ | 117,545 | $ | 109,518 | |||||||
Capital expenditures: | |||||||||||||||
Food Service | $ | 12,181 | $ | 20,767 | $ | 46,127 | $ | 79,388 | |||||||
Retail Supermarket | 19 | - | 21 | 1,824 | |||||||||||
Frozen Beverages | 4,998 | 7,498 | 27,421 | 23,525 | |||||||||||
Total capital expenditures | $ | 17,198 | $ | 28,265 | $ | 73,569 | $ | 104,737 | |||||||
Assets: | |||||||||||||||
Food Service | $ | 971,600 | $ | 903,518 | $ | 971,600 | $ | 903,518 | |||||||
Retail Supermarket | 34,609 | 34,232 | 34,609 | 34,232 | |||||||||||
Frozen Beverages | 358,892 | 339,486 | 358,892 | 339,486 | |||||||||||
Total assets | $ | 1,365,101 | $ | 1,277,236 | $ | 1,365,101 | $ | 1,277,236 | |||||||
J & J SNACK FOODS CORP. AND SUBSIDIARIES | ||||||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
(Unaudited) (in thousands) | ||||||||||||||||
Quarter ended | Fiscal year ended | |||||||||||||||
September 28, | September 30, | September 28, | September 30, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(52 weeks) | (53 weeks) | (52 weeks) | (53 weeks) | |||||||||||||
Reconciliation of GAAP Net Earnings to Adjusted EBITDA | ||||||||||||||||
Net Earnings | $ | 29,641 | $ | 30,421 | $ | 86,551 | $ | 78,906 | ||||||||
Income Taxes | 10,870 | 11,256 | 32,396 | 28,608 | ||||||||||||
Investment Income | (963 | ) | (1,024 | ) | (3,228 | ) | (2,743 | ) | ||||||||
Interest Expense | 294 | 1,050 | 1,826 | 4,747 | ||||||||||||
Depreciation and Amortization | 18,216 | 16,777 | 70,601 | 63,161 | ||||||||||||
Share-Based Compensation | 1,378 | 1,383 | 6,220 | 5,318 | ||||||||||||
Strategic Business Transformation Costs (2) | - | 768 | 4,848 | 1,719 | ||||||||||||
Net (Gain) Loss on Sale or Disposal of Assets | 34 | (154 | ) | 11 | (409 | ) | ||||||||||
Impairment Costs | - | 1,678 | - | 1,678 | ||||||||||||
Acquisition Related Inventory Adjustment | - | - | 183 | - | ||||||||||||
Merger and Acquisition Costs | - | - | 250 | - | ||||||||||||
Integration Costs | 222 | - | 427 | 570 | ||||||||||||
Adjusted EBITDA | $ | 59,692 | $ | 62,155 | $ | 200,085 | $ | 181,555 | ||||||||
Reconciliation of GAAP Operating Income to Adjusted Operating Income | ||||||||||||||||
Operating Income | 39,842 | 41,703 | 117,545 | 109,518 | ||||||||||||
Strategic Business Transformation Costs (2) | - | 768 | 4,848 | 1,719 | ||||||||||||
Acquisition Related Amortization Expenses | 1,946 | 1,679 | 7,190 | 6,716 | ||||||||||||
Impairment Costs | - | 1,678 | - | 1,678 | ||||||||||||
Acquisition Related Inventory Adjustment | - | - | 183 | - | ||||||||||||
Merger and Acquisition Costs | - | - | 250 | - | ||||||||||||
Integration Costs | 222 | - | 427 | 570 | ||||||||||||
Adjusted Operating Income | $ | 42,010 | $ | 45,828 | $ | 130,443 | $ | 120,201 | ||||||||
Reconciliation of GAAP Earnings per Diluted Share to Adjusted Earnings per Diluted Share | ||||||||||||||||
Earnings per Diluted Share | $ | 1.52 | $ | 1.57 | $ | 4.45 | $ | 4.08 | ||||||||
Strategic Business Transformation Costs (2) | - | 0.04 | 0.25 | 0.09 | ||||||||||||
Acquisition Related Amortization Expenses | 0.10 | 0.09 | 0.37 | 0.35 | ||||||||||||
Impairment Costs | - | 0.09 | - | 0.09 | ||||||||||||
Acquisition Related Inventory Adjustment | - | - | 0.01 | - | ||||||||||||
Merger and Acquisition Costs | - | - | 0.01 | - | ||||||||||||
Integration Costs | 0.01 | - | 0.02 | 0.03 | ||||||||||||
Tax Effect of Non-GAAP Adjustments (1) | (0.03 | ) | (0.06 | ) | (0.18 | ) | (0.14 | ) | ||||||||
Adjusted Earnings per Diluted Share | $ | 1.60 | $ | 1.73 | $ | 4.93 | $ | 4.50 | ||||||||
(1) Income taxes associated with pre-tax adjustments determined using statutory tax rates | ||||||||||||||||
(2) Strategic business transformation costs are start-up costs related to our regional distribution center supply chain transformation. | ||||||||||||||||
J & J SNACK FOODS CORP. AND SUBSIDIARIES | ||||||||||||||
NON-GAAP FINANCIAL MEASURES (CONT'D) | ||||||||||||||
(Unaudited) (in thousands) | ||||||||||||||
Reconciliation of GAAP net sales | ||||||||||||||
to normalized net sales | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||
ended | ended | ended | ended | ended | ||||||||||
September 30, | September 30, | September 30, | September 28, | September 30, | Normalized | |||||||||
2023 | 2023 | 2023 | 2024 | 2023 | Sales Increase | |||||||||
(14 weeks) | Impact of | (normalized) | (as reported) | (normalized) | (Decrease) | |||||||||
additional week (1) | ||||||||||||||
Net Sales to external customers: | ||||||||||||||
Total Food Service | 270,282 | (19,596 | ) | 250,686 | 262,150 | 250,686 | 4.6 | % | ||||||
Total Retail Supermarket | 64,845 | (5,523 | ) | 59,322 | 55,936 | 59,322 | -5.7 | % | ||||||
Total Frozen Beverages | 108,736 | (7,871 | ) | 100,865 | 108,670 | 100,865 | 7.7 | % | ||||||
Consolidated net sales | 443,863 | (32,990 | ) | 410,873 | 426,756 | 410,873 | 3.9 | % | ||||||
Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | ||||||||||
ended | ended | ended | ended | ended | Normalized | |||||||||
September 30, | September 30, | September 30, | September 28, | September 30, | Sales Increase | |||||||||
2023 | 2023 | 2023 | 2024 | 2023 | (Decrease) | |||||||||
(53 weeks) | Impact of | (normalized) | (as reported) | (normalized) | ||||||||||
additional week (2) | ||||||||||||||
Net Sales to external customers: | ||||||||||||||
Total Food Service | 981,840 | (20,125 | ) | 961,715 | 985,195 | 961,715 | 2.4 | % | ||||||
Total Retail Supermarket | 215,428 | (3,460 | ) | 211,968 | 221,308 | 211,968 | 4.4 | % | ||||||
Total Frozen Beverages | 361,561 | (4,079 | ) | 357,482 | 368,252 | 357,482 | 3.0 | % | ||||||
Consolidated net sales | 1,558,829 | (27,664 | ) | 1,531,165 | 1,574,755 | 1,531,165 | 2.8 | % | ||||||
(1) For fiscal fourth quarter comparative metrics, the additional week is defined as the week beginning on June 25, 2023. | ||||||||||||||
(2) For the full fiscal year comparative metrics, the additional week is defined as the week beginning on September 25, 2022. | ||||||||||||||
FAQ
What was J&J Snack Foods (JJSF) revenue for Q4 2024?
What was JJSF's full-year gross margin for fiscal 2024?
How much did J&J Snack Foods' net earnings grow in fiscal 2024?