Financial Performance - Net sales increased by $14.3 million, or 4.1%, to $362.6 million for the three months ended December 28, 2024, driven by growth in Retail Supermarket and Frozen Beverages segments [118]. - Gross profit decreased by $0.7 million, or 0.7%, to $93.9 million, with gross profit margin declining from 27.2% to 25.9% due to rising raw material costs [119]. - Operating expenses increased by $2.8 million, or 3.3%, to $87.7 million, while as a percentage of sales, they decreased from 24.4% to 24.2% [120]. - Net earnings decreased by $2.1 million, or 29.4%, to $5.1 million for the three months ended December 28, 2024 [123]. Segment Performance - Food Service segment sales increased by $10.3 million, or 4.5%, to $238.9 million, with soft pretzels sales up 4.8% to $52.5 million [127]. - The Frozen Beverages segment reported a sales increase of 4.0% to $79.0 million, with operating income rising by 29.9% to $4.2 million [126]. - Operating income in the Food Service segment decreased by $4.3 million to $1.7 million due to gross margin pressures from rising raw material costs and an unfavorable product mix [130]. - Retail Supermarket sales increased by $1.0 million, or 2.2%, to $44.7 million, with soft pretzel sales decreasing by 7.4% to $17.1 million [131]. - Frozen Beverages sales increased by $3.1 million, or 4.0%, to $79.0 million, with beverage sales rising by 6.4% to $44.7 million [134]. - Operating income in the Frozen Beverages segment increased by $1.0 million to $4.2 million, driven by strong sales and well-managed operating expenses [135]. Operational Developments - The company opened three regional distribution centers, projected to drive significant cost reductions in warehousing and distribution [116]. - Six new production lines were added, significantly expanding capacity for core products like pretzels and churros [116]. - The company launched new products, generating approximately $0.7 million in sales in the first twelve months since their introduction [129]. Cash Flow and Financial Position - Net cash provided by operating activities decreased to $35.2 million from $49.0 million year-over-year [137]. - Cash flows used in investing activities were $18.9 million, slightly down from $19.8 million in the prior year, primarily due to timing of spending [138]. - As of December 28, 2024, the company had $73.6 million in cash and cash equivalents [140]. - The amount available under the Amended Credit Agreement was $212.7 million after accounting for $12.3 million in letters of credit outstanding [144]. - The company is in compliance with all financial covenants of the Credit Agreement as of December 28, 2024 [143]. Tax and Dividends - The effective tax rate remained stable at 27% for both the three months ended December 28, 2024, and December 30, 2023 [122]. - The increase in cash dividends from the prior year was due to a raise in the quarterly dividend during fiscal 2024 [147].

Financial Data and Key Metrics Changes - The company reported a revenue increase of 4.1% to $362.6 million, driven by volume increases and pricing [5][19] - Gross margin declined to 25.9% from 27.2% year-over-year, reflecting input cost inflation not fully offset by price increases [6][19] - Operating income decreased to $6.2 million from $9.7 million, with adjusted operating income at $8.2 million compared to $13.5 million last year [22][24] - Net earnings fell to $5.1 million from $7.3 million, with earnings per diluted share decreasing to $0.26 from $0.37 [23][24] Business Line Data and Key Metrics Changes - Foodservice revenue increased by 4.5%, with soft pretzel sales up 4.8% due to convenience store recovery [11] - Frozen novelties saw a significant increase of 9.8%, driven by Zippin' Dots growth [11] - Bakery sales grew by 6.6%, primarily due to price increases [12] - Retail sales increased by 2.2%, with frozen novelty sales rising significantly, while soft pretzel sales declined by 7.4% due to an ordering system issue [12] Market Data and Key Metrics Changes - Frozen beverage sales increased by 4%, with a notable 10% volume increase attributed to a 45% growth in theater channels [13] - The North American box office is projected to grow over 10% year-over-year, indicating a strong recovery in the entertainment sector [13][14] - Consumer spending on leisure and entertainment is outpacing traditional retail channels, providing a favorable environment for the company [14] Company Strategy and Development Direction - The company is focused on driving volume growth and mix improvement across its portfolio, with a disciplined approach to capital deployment [10][17] - A new $50 million stock repurchase authorization reflects confidence in long-term value and financial flexibility [10] - The rollout of Dippin' Dots to theaters is progressing well, with plans for further growth in retail channels [16][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q1 but expressed confidence in overcoming them, citing strong underlying business fundamentals [9][17] - The company is optimistic about the recovery trajectory in theater traffic and overall consumer spending trends [14][25] - Management expects gross margins to improve in the second half of the year, targeting a return to low 30% levels [66][67] Other Important Information - The company experienced significant inflation in chocolates, eggs, and proteins, which impacted profitability [7][20] - The effective tax rate for the quarter was 27.2%, up from 26.6% in the prior year [23] Q&A Session Summary Question: Can you provide a gross margin bridge for the decline year over year? - Management indicated that about 80 basis points of the decline were due to pricing gaps relative to input costs, with the remainder attributed to mix changes in the bakery business [30][31] Question: How does the pricing lag occur? - The delay in implementing price increases was primarily due to the time taken to push these through to customers, not a lack of visibility [46][47] Question: What is the impact of the peso on profitability? - The peso's depreciation had a nearly $1 million impact on profitability for the frozen beverage segment [54] Question: What is the outlook for gross margins in the second half of the year? - Management expects gross margins to improve, aiming for low 30% levels, with seasonal factors contributing positively [66][67] Question: Can you elaborate on the Dippin' Dots rollout? - The Dippin' Dots product has been well received, launching with a major nationwide retailer, and is expected to see significant growth [70] Question: Will stock repurchases occur alongside potential acquisitions? - The company plans to be opportunistic with stock repurchases while also actively seeking attractive acquisition opportunities [75]

J&J Snack Foods Corp. (JJSF) reported first-quarter fiscal 2025 results, wherein the top line beat the Zacks Consensus Estimate and showed year-over-year growth, while the bottom missed the same and declined year over year.J&J Snack Foods’ revenue growth was driven by strong sales in Frozen Beverages, solid performance across most core Food Service products and strong growth in frozen novelties within Retail Supermarkets. Despite this, results were impacted by a less favorable sales mix, particularly in the ...

Financial Performance - J & J Snack Foods reported a 4.1% increase in net sales to $362.6 million for Q1 2025, up from $348.3 million in Q1 2024[3] - Gross profit margin decreased to 25.9% in Q1 2025 from 27.2% in Q1 2024, reflecting a less favorable sales mix and input cost inflation[9] - Operating income fell by 35.6% to $6.2 million in Q1 2025, compared to $9.7 million in the prior year[3] - Net earnings decreased by 29.4% to $5.1 million in Q1 2025, down from $7.3 million in Q1 2024[3] - Adjusted EBITDA for the three months ended December 28, 2024, was $25,254,000, down 16.4% from $30,178,000 in the prior year[37] - Total operating income for the three months ended December 28, 2024, was $6,239,000, a decrease of 35.3% from $9,683,000 in the same period of 2023[37] Segment Performance - Food Services segment sales increased by 4.5% to $238.9 million in Q1 2025, driven by strong sales in soft pretzels and frozen novelties[16] - Retail Supermarket segment sales rose by 2.2% to $44.7 million in Q1 2025, with new product placements contributing approximately $2.3 million[16] - Frozen Beverage segment sales grew by 4.0% to $79.0 million, with beverage sales increasing by 6.4% driven by volume growth in the theater channel[16] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $73,562,000, compared to $50,020,000 at the end of the same period in 2023, representing a year-over-year increase of 47.1%[33] - The company reported a decrease in accounts receivable by $24,987,000, indicating improved cash flow management[33] - Total current assets decreased to $427,538,000 as of December 28, 2024, from $450,414,000 as of September 28, 2024, reflecting a decline of 5.1%[31] - The total assets as of December 28, 2024, were $1,346,787,000, an increase from $1,292,557,000 in the same period of the previous year, reflecting a growth of 4.2%[35] Shareholder Actions - The company announced a new $50 million stock repurchase authorization, effective for two years, reflecting confidence in long-term value[6] Expenses and Capital Expenditures - Total operating expenses were $87.7 million, representing 24.2% of sales, slightly down from 24.4% in Q1 2024[10] - Capital expenditures for the three months ended December 28, 2024, totaled $19,065,000, slightly down from $19,930,000 in the prior year[35] Retained Earnings - The company’s retained earnings decreased to $825,703,000 as of December 28, 2024, down from $835,753,000 as of September 28, 2024[31] Future Outlook - The company is implementing additional pricing actions in Q2 2025 to mitigate input cost inflation and improve profitability[5]

MOUNT LAUREL, N.J., Feb. 03, 2025 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (NASDAQ:JJSF) (the "Company") today reported financial results for the first quarter ended December 28, 2024.   First QuarterActuals$ v. LY% v. LYNet Sales$362.6M$14.3M4.1%Gross Profit $93.9M($0.7M)(0.7%)Operating Income$6.2M($3.4M)(35.6%)Net Earnings$5.1M($2.1M)(29.4%)Earnings per Diluted Share $0.26($0.11)(29.7%)    Adjusted Operating Income$8.2M($5.4M)(39.7%)Adjusted EBITDA$25.3M($4.9M)(16.3%)Adjusted Earnings per Diluted Share ...

Announces $50M Share Repurchase AuthorizationMOUNT LAUREL, N.J., Feb. 03, 2025 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today reported financial results for the first quarter ended December 28, 2024. First QuarterActuals$ v. LY% v. LYNet Sales$362.6M$14.3M4.1%Gross Pr ...

MOUNT LAUREL, N.J., Jan. 13, 2025 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (NASDAQ:JJSF) announced today that it has scheduled a conference call and webcast to discuss its fiscal 2025 first quarter financial results on Tuesday, February 4, 2025, at 10:00 am Eastern time. Conference call participants should pre-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. Questions will be taken only from participants on ...

MOUNT LAUREL, N.J., Jan. 13, 2025 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (NASDAQ: JJSF) announced today that it has scheduled a conference call and webcast to discuss its fiscal 2025 first quarter financial results on Tuesday, February 4, 2025, at 10:00 am Eastern time. Conference call participants should pre-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. Questions will be taken only from participants on ...

Revenue Composition - Soft pretzel sales accounted for 18% of the Company's revenue in fiscal year 2024, down from 19% in both fiscal years 2023 and 2022[17]. - Frozen novelties sales represented 17% of the Company's revenue in fiscal year 2024, consistent with fiscal year 2023, and up from 14% in fiscal year 2022[21]. - Churro sales were 7% of the Company's sales in fiscal years 2024 and 2023, and 6% in fiscal year 2022[26]. - Bakery products sales constituted 26% of the Company's sales in both fiscal years 2024 and 2023, down from 29% in fiscal year 2022[28]. - Frozen beverage sales increased to 15% of the Company's revenue in fiscal year 2024, compared to 14% in fiscal year 2023 and 13% in fiscal year 2022[29]. Customer Concentration - The Company's top ten customers accounted for 45% of sales in fiscal year 2024, with the largest customer contributing 9%[35]. - The company's top ten customers accounted for 45% of sales in fiscal year 2024, with the largest customer representing 9% of total sales[75]. Operational Segments - The Company operates in three segments: Food Service, Retail Supermarkets, and Frozen Beverages, with sales primarily to foodservice customers[12]. Product Development and Innovation - The Company develops and introduces new products routinely, evaluating their success based on sales and profit levels[41]. - Sales of new products reached approximately $24.7 million in the first twelve months since their introduction, primarily from churros[152]. - The company launched the Hola! Churros brand in fiscal year 2023 and expanded the SuperPretzel brand with Bavarian Sticks[131]. - The company acquired Thinsters in fiscal year 2024, enhancing its product portfolio[131]. Seasonal Sales Trends - The Company's sales are seasonal, with higher sales of frozen beverages and novelties during warmer months[43]. - The company’s sales are affected by seasonal demand, with higher demand during summer months for ICEE and frozen novelty products[101]. Foreign Operations - Sales from foreign operations were $73.4 million in fiscal year 2024, up from $70.2 million in 2023 and $45.2 million in 2022, indicating a growth trend[53]. - The company’s foreign operations accounted for 5.0% of total assets as of September 28, 2024, compared to 4.8% in the previous year[53]. - The company reported foreign operations sales of $73.4 million, $70.2 million, and $45.2 million for fiscal years 2024, 2023, and 2022, respectively, indicating a growth trend[90]. - Total assets of foreign operations were approximately $67.6 million, representing 5.0% of total assets as of September 28, 2024, compared to $61.5 million or 4.8% of total assets as of September 30, 2023[90]. Employee and Safety Metrics - Approximately 5,000 full and part-time employees are employed, with about 1,500 production and distribution employees covered by collective bargaining agreements[57]. - The company maintains a safety culture with Total Recordable Incident Rate (TRIR) and Days Away, Restricted or Transferred (DART) incident rates lower than food manufacturing averages[58]. Compliance and Risk Management - The company’s compliance with food safety regulations did not materially affect capital expenditures or earnings in fiscal 2024 and is not expected to impact fiscal 2025[54]. - The company has implemented Corporate Standards aligned with Global Food Safety Initiative (GFSI) standards to ensure product safety and quality[55]. - The company identified a material weakness in internal control over financial reporting related to ineffective information technology general controls, which could lead to material misstatements in financial statements[99]. - The company is developing a remediation plan to address the identified material weakness, which if insufficient, could adversely affect business and financial condition[100]. - The company faces risks related to manufacturing capacity constraints that could negatively impact customer service levels and demand for products[81]. - The company has a cybersecurity risk management program aligned with industry best practices to assess and manage material cybersecurity risks[104]. - The company has established a structured approach to investigate and mitigate cybersecurity incidents, including annual external penetration testing and employee training[106]. Financial Performance - Net sales increased by $15.9 million, or 1%, to $1,574.8 million in fiscal 2024, driven by growth across all business segments[136]. - Gross profit rose by $16.3 million, or 4%, to $486.1 million, with gross profit as a percentage of sales increasing to 30.9% from 30.1%[138]. - Total operating expenses increased by $8.2 million, or 2%, to $368.6 million, with operating expenses as a percentage of sales rising to 23.4%[139]. - Operating income increased by $8.0 million, or 7.3%, to $117.5 million, with operating income as a percentage of net sales improving to 7.5%[150]. - Net earnings increased by $7.6 million, or 10%, to $86.6 million, translating to $4.45 per diluted share[143]. - Investment income increased by $0.5 million, or 18%, to $3.2 million due to higher average cash balances and interest rates[141]. - Interest expense decreased by $2.9 million, or 62%, to $1.8 million due to reduced average outstanding borrowings[141]. Capital Expenditures and Investments - Cash flows from investing activities totaled $(77.7) million in fiscal 2024, compared to $(93.2) million in fiscal 2023, reflecting strategic investments[170]. - Cash and cash equivalents stood at $73.4 million as of September 28, 2024, indicating a solid liquidity position[176]. - Dividends paid increased to $56.96 million in fiscal 2024, reflecting a raised quarterly dividend[175]. - The company has material cash requirements including approximately $122 million in purchase commitments for raw materials, which are managed through forward purchasing to mitigate price fluctuations[182]. - The company has operating lease payment obligations of $159.8 million as of September 28, 2024, with $19.1 million payable within the next 12 months[183]. Manufacturing and Distribution - The company’s manufacturing equipment is primarily sourced from independent third parties, ensuring availability and reducing supply chain risks[49]. - A fire incident at the Holly Ridge plant in North Carolina on August 19, 2024, interrupted operations, highlighting risks associated with manufacturing and distribution[78]. - The company opened three regional distribution centers, projected to drive significant cost reductions in warehousing and distribution costs[131]. - Six new production lines were added, significantly expanding capacity to meet growth opportunities in core products[131]. - A new ERP system was implemented in fiscal 2022, creating efficiencies and streamlining internal processes[131]. - The company leases approximately 172 smaller warehouse and distribution facilities across 45 states and several countries[114]. Legal and Regulatory Matters - No material pending legal proceedings were reported, other than ordinary routine litigation incidental to the business[115]. Goodwill and Credit Losses - The company has evaluated goodwill for impairment and found that the fair value of each reporting unit with goodwill exceeded its carrying value by at least 50% as of September 28, 2024[196]. - The company maintains an allowance for estimated credit losses based on historical experience and other factors, continuously monitoring collections and payments from customers[194]. Accounting Policies - The company has not made any material changes in the accounting methodology used to recognize revenue during the past three fiscal years, with revenue recognized at a point-in-time when control is transferred to customers[193]. - The company has off-balance sheet arrangements for purchase commitments as of September 28, 2024[184]. - The company uses various models to determine the fair value of assets acquired and liabilities assumed in business combinations, including the net realizable value method and the relief of royalty method[208].

MOUNT LAUREL, N.J., Nov. 21, 2024 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today announced that Shawn Munsell has been named Chief Financial Officer of the Company, effective December 2, 2024. Mr. Munsell takes over the role from Ken Plunk, who is retiring and will support the transition until the end of the year. Mr. Munsell is a seasoned executive with over 15 years of finance and operating leadership experience at US publicly listed companies in food and agriculture. Mos ...