Sales and Earnings Reported by J & J Snack Foods
J & J Snack Foods Corp. (NASDAQ-JJSF) reported a 19% decrease in Q4 sales, totaling $252.5 million, down from $311.9 million year-over-year. For the full year, sales fell 14% to $1.022 billion. Net earnings for Q4 dropped to $6.6 million ($.35 per diluted share), down from $26.1 million ($1.36 per diluted share) a year ago, while full-year earnings decreased 81% to $18.3 million ($.96 per diluted share). Despite challenges from COVID-19, the company experienced a 2/3 recovery in its sales with $278 million in cash and marketable securities, indicating no liquidity concerns.
- Sequential improvement in sales from Q3 operational losses.
- Sustained growth in retail business.
- Improved sales in Food Service and ICEE sectors.
- New business growth expected to continue.
- Sales decreased 19% in Q4 compared to last year.
- Full-year sales declined 14% year-over-year.
- Net earnings fell 81% for the year.
- COVID-19 continues to negatively impact business.
PENNSAUKEN, N.J., Nov. 05, 2020 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (NASDAQ-JJSF) today announced sales and earnings for its fourth quarter and year ended September 26, 2020.
Sales for the fourth quarter this year decreased
Operating income was
The Company also said that it has had sequential improvement from its third quarter operations in which sales were down
Dan Fachner, J & J’s President, commented, “Our business continues to recover from the pandemic that has affected our world. We experienced sustained growth in the Retail side of our business as well as improved sales as we closed the quarter in both Food Service and ICEE. The Company has also enjoyed some new business sales growth that will extend into this coming year. We feel a sense of recovery as we close our 2020 year and like our future growth opportunities but we continue to face the uncertainty that all of us face from prolonged COVID-19 impacts.”
In addition to historical information, this release contains forward-looking statements. 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. Important factors that might cause such a difference include, but are not limited to, those discussed in the “Results of Operations” section of this release. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof.
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, LUIGI’S Real Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT sorbet and frozen fruit bars, SOUR PATCH KIDS** Flavored Ice Pops, Tio Pepe’s & CALIFORNIA CHURROS, and THE FUNNEL CAKE FACTORY funnel cakes and several bakery brands within DADDY RAY’S, COUNTRY HOME BAKERS and HILL & VALLEY. J&J Snack Foods Corp. has approximately sixteen manufacturing facilities and generates more than
*MINUTE MAID is a registered trademark of The Coca-Cola Company
**SOUR PATCH KIDS is a registered trademark of Mondelēz International group, used under license.
| J & J SNACK FOODS CORP. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
| (in thousands, except per share information) | ||||||||||||||||
| Quarter Ended | Fiscal Year Ended | |||||||||||||||
| September 26, | September 28, | September 26, | September 28, | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (13 weeks) | (13 weeks) | (52 weeks) | (52 weeks) | |||||||||||||
| Net Sales | $ | 252,536 | $ | 311,872 | $ | 1,022,038 | $ | 1,186,487 | ||||||||
| Cost of goods sold | 198,609 | 218,931 | 783,611 | 836,086 | ||||||||||||
| Gross Profit | 53,927 | 92,941 | 238,427 | 350,401 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Marketing and selling | 16,445 | 26,636 | 84,977 | 96,428 | ||||||||||||
| Distribution | 23,111 | 24,367 | 92,759 | 94,888 | ||||||||||||
| Administrative | 8,581 | 10,812 | 36,747 | 40,721 | ||||||||||||
| Plant shutdown impairment costs | 1,315 | - | 6,387 | - | ||||||||||||
| Other expense | 546 | 65 | 363 | 1,408 | ||||||||||||
| Total operating expenses | 49,998 | 61,880 | 221,233 | 233,445 | ||||||||||||
| Operating Income | 3,929 | 31,061 | 17,194 | 116,956 | ||||||||||||
| Other income (expenses) | ||||||||||||||||
| Investment income | 1,683 | 1,966 | 4,356 | 7,741 | ||||||||||||
| Interest expense & other | (24 | ) | (40 | ) | (84 | ) | 1,880 | |||||||||
| Earnings before income taxes | 5,588 | 32,987 | 21,466 | 126,577 | ||||||||||||
| Income taxes | (996 | ) | 6,920 | 3,161 | 31,758 | |||||||||||
| NET EARNINGS | $ | 6,584 | $ | 26,067 | $ | 18,305 | $ | 94,819 | ||||||||
| Earnings per diluted share | $ | 0.35 | $ | 1.36 | $ | 0.96 | $ | 5.00 | ||||||||
| Weighted average number of diluted shares | 18,955 | $ | 19,101 | 19,032 | 18,959 | |||||||||||
| Earnings per basic share | $ | 0.35 | $ | 1.38 | $ | 0.97 | $ | 5.04 | ||||||||
| Weighted average number of basic shares | 18,895 | $ | 18,867 | 18,901 | 18,812 | |||||||||||
| J & J SNACK FOODS CORP. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except share amounts) | ||||||||
| September 26, | September 28, | |||||||
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 195,809 | $ | 192,395 | ||||
| Marketable securities held to maturity | 51,151 | 51,091 | ||||||
| Accounts receivable, net | 126,587 | 140,938 | ||||||
| Inventories | 108,923 | 116,165 | ||||||
| Prepaid expenses and other | 17,087 | 5,768 | ||||||
| Total current assets | 499,557 | 506,357 | ||||||
| Property, plant and equipment, at cost | 717,261 | 676,724 | ||||||
| Less accumulated depreciation and amortization | 455,645 | 423,276 | ||||||
| Property, plant and equipment, net | 261,616 | 253,448 | ||||||
| Other assets | ||||||||
| Goodwill | 123,033 | 102,511 | ||||||
| Other intangible assets, net | 80,422 | 54,922 | ||||||
| Marketable securities held to maturity | 16,927 | 79,360 | ||||||
| Marketable securities available for sale | 13,976 | 19,903 | ||||||
| Operating lease right-of-use assets | 58,110 | - | ||||||
| Other | 2,912 | 2,838 | ||||||
| Total other assets | 295,380 | 259,534 | ||||||
| Total Assets | $ | 1,056,553 | $ | 1,019,339 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Current finance lease liabilities | $ | 349 | $ | 339 | ||||
| Accounts payable | 73,135 | 72,029 | ||||||
| Accrued insurance liability | 13,039 | 10,457 | ||||||
| Accrued liabilities | 7,420 | 7,808 | ||||||
| Current operating lease liabilities | 13,173 | - | ||||||
| Accrued compensation expense | 16,134 | 21,154 | ||||||
| Dividends payable | 10,876 | 9,447 | ||||||
| Total current liabilities | 134,126 | 121,234 | ||||||
| Noncurrent finance lease liabilities | 368 | 718 | ||||||
| Noncurrent operating lease liabilities | 47,688 | - | ||||||
| Deferred income taxes | 64,413 | 61,920 | ||||||
| Other long-term liabilities | 460 | 1,716 | ||||||
| Stockholders' Equity | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,915,000 and 18,895,000 respectively | 49,268 | 45,744 | ||||||
| Accumulated other comprehensive loss | (15,587 | ) | (12,988 | ) | ||||
| Retained Earnings | 775,817 | 800,995 | ||||||
| Total stockholders' equity | 809,498 | 833,751 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 1,056,553 | $ | 1,019,339 | ||||
| J & J SNACK FOODS CORP. AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (in thousands) | ||||||||||||
| Fiscal Year Ended | ||||||||||||
| September 26, | September 28, | September 29, | ||||||||||
| 2020 | 2019 | 2018 | ||||||||||
| (52 weeks) | (52 weeks) | (52 weeks) | ||||||||||
| Operating activities: | ||||||||||||
| Net earnings | $ | 18,305 | $ | 94,819 | $ | 103,596 | ||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||
| Depreciation of fixed assets | 49,830 | 45,225 | 42,939 | |||||||||
| Amortization of intangibles and deferred costs | 3,218 | 3,385 | 3,538 | |||||||||
| Gains from disposals of property & equipment | (303 | ) | (347 | ) | (912 | ) | ||||||
| Plant shutdown impairment costs | 6,387 | - | - | |||||||||
| Amortization of bond premiums | 296 | 730 | 1,012 | |||||||||
| Share-based compensation | 4,595 | 4,230 | 3,858 | |||||||||
| Deferred income taxes | 2,622 | 9,637 | (10,392 | ) | ||||||||
| Loss on sale of marketable securities | 882 | 404 | 140 | |||||||||
| Changes in assets and liabilities, net of effects from purchase of companies: | ||||||||||||
| Decrease (increase) in accounts receivable, net | 14,580 | (8,759 | ) | (7,917 | ) | |||||||
| Decrease (increase) in inventories | 7,877 | (3,231 | ) | (9,639 | ) | |||||||
| Increase in prepaid expenses and other | (11,366 | ) | (744 | ) | (1,120 | ) | ||||||
| (Decrease) increase in accounts payable and accrued liabilities | (4,780 | ) | 2,150 | (1,736 | ) | |||||||
| Net cash provided by operating activities | 92,143 | 147,499 | 123,367 | |||||||||
| Investing activities: | ||||||||||||
| Payments for purchases of companies, net of cash acquired | (57,212 | ) | (1,156 | ) | - | |||||||
| Purchases of property, plant and equipment | (57,817 | ) | (57,128 | ) | (60,022 | ) | ||||||
| Purchases of marketable securities | (6,103 | ) | (26,091 | ) | (91,112 | ) | ||||||
| Proceeds from redemption and sales of marketable securities | 73,226 | 39,158 | 75,302 | |||||||||
| Proceeds from disposal of property, plant and equipment | 3,593 | 2,050 | 2,639 | |||||||||
| Other | (150 | ) | (196 | ) | 54 | |||||||
| Net cash used in investing activities | (44,463 | ) | (43,363 | ) | (73,139 | ) | ||||||
| Financing activities: | ||||||||||||
| Payments to repurchase common stock | (8,972 | ) | - | (2,794 | ) | |||||||
| Proceeds from issuance of common stock | 7,901 | 14,174 | 8,894 | |||||||||
| Payments on capitalized lease obligations | (340 | ) | (356 | ) | (370 | ) | ||||||
| Payment of cash dividend | (42,053 | ) | (36,644 | ) | (33,066 | ) | ||||||
| Net cash used in financing activities | (43,464 | ) | (22,826 | ) | (27,336 | ) | ||||||
| Effect of exchange rates on cash and cash equivalents | (802 | ) | (394 | ) | (2,375 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents | 3,414 | 80,916 | 20,517 | |||||||||
| Cash and cash equivalents at beginning of year | 192,395 | 111,479 | 90,962 | |||||||||
| Cash and cash equivalents at end of year | $ | 195,809 | $ | 192,395 | $ | 111,479 | ||||||
| J & J SNACK FOODS CORP. AND SUBSIDIARIES | ||||||||||||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||
| September 26, | September 28, | September 29, | ||||||||||
| 2020 | 2019 | 2018 | ||||||||||
| (52 weeks) | (52 weeks) | (52 weeks) | ||||||||||
| (in thousands) | ||||||||||||
| Sales to External Customers: | ||||||||||||
| Food Service | ||||||||||||
| Soft pretzels | $ | 150,786 | $ | 209,227 | $ | 208,544 | ||||||
| Frozen juices and ices | 35,176 | 43,672 | 42,364 | |||||||||
| Churros | 46,881 | 65,976 | 61,726 | |||||||||
| Handhelds | 36,088 | 31,685 | 38,928 | |||||||||
| Bakery | 332,514 | 359,020 | 344,838 | |||||||||
| Other | 17,448 | 26,407 | 22,991 | |||||||||
| Total Food Service | $ | 618,893 | $ | 735,987 | $ | 719,391 | ||||||
| Retail Supermarket | ||||||||||||
| Soft pretzels | $ | 49,157 | $ | 36,264 | $ | 36,438 | ||||||
| Frozen juices and ices | 88,743 | 73,751 | 74,435 | |||||||||
| Biscuits | 28,317 | 25,316 | 26,553 | |||||||||
| Handhelds | 12,303 | 10,902 | 12,419 | |||||||||
| Coupon redemption | (3,569 | ) | (3,596 | ) | (4,439 | ) | ||||||
| Other | 2,214 | 1,955 | 2,086 | |||||||||
| Total Retail Supermarket | $ | 177,165 | $ | 144,592 | $ | 147,492 | ||||||
| Frozen Beverages | ||||||||||||
| Beverages | $ | 107,004 | $ | 171,820 | $ | 160,937 | ||||||
| Repair and maintenance service | 83,420 | 85,834 | 78,805 | |||||||||
| Machines revenue | 33,986 | 45,811 | 28,652 | |||||||||
| Other | 1,570 | 2,143 | 2,988 | |||||||||
| Total Frozen Beverages | $ | 225,980 | $ | 305,608 | $ | 271,382 | ||||||
| Consolidated Sales | $ | 1,022,038 | $ | 1,186,187 | $ | 1,138,265 | ||||||
| Depreciation and Amortization: | ||||||||||||
| Food Service | $ | 28,111 | $ | 26,978 | $ | 25,983 | ||||||
| Retail Supermarket | 1,577 | 1,418 | 1,313 | |||||||||
| Frozen Beverages | 23,360 | 20,214 | 19,181 | |||||||||
| Total Depreciation and Amortization | $ | 53,048 | $ | 48,610 | $ | 46,477 | ||||||
| Operating Income: | ||||||||||||
| Food Service | $ | 6,458 | $ | 76,546 | $ | 71,285 | ||||||
| Retail Supermarket | 23,202 | 10,460 | 11,075 | |||||||||
| Frozen Beverages | (12,466 | ) | 29,950 | 28,415 | ||||||||
| Total Operating Income | $ | 17,194 | $ | 116,956 | $ | 110,775 | ||||||
| Capital Expenditures: | ||||||||||||
| Food Service | $ | 34,798 | $ | 29,197 | $ | 36,325 | ||||||
| Retail Supermarket | 1,763 | 1,979 | 928 |
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FAQ
What were J & J Snack Foods' Q4 earnings for 2020?
J & J Snack Foods reported Q4 earnings of $6.6 million ($.35 per diluted share) for the quarter ending September 26, 2020.
How much did J & J Snack Foods' sales decline in 2020?
Sales declined 14% to $1.022 billion for the year ended September 26, 2020.
What impact did COVID-19 have on J & J Snack Foods?
COVID-19 caused significant negative impacts on J & J Snack Foods, with approximately 2/3 of their sales tied to venues that were shut down or limited.
What is the cash position of J & J Snack Foods as of September 26, 2020?
The company reported cash and marketable securities of $278 million, an increase from $267 million as of March 28, 2020.
What future outlook does J & J Snack Foods have post-COVID-19?
The company anticipates recovery and growth opportunities, particularly in retail areas, despite ongoing uncertainty from COVID-19.
J&J Snack Foods Corp
NASDAQ:JJSFJJSF RankingsJJSF Latest NewsJJSF Stock Data
3.09B
19.42M
21.56%
79.23%
3.54%
Packaged Foods
Cookies & Crackers
United States of America
MOUNT LAUREL
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