Financial Performance - Net sales increased by $45.5 million, or 12.0%, to $425.8 million for the three months ended June 24, 2023, and by $134.7 million, or 13.7%, to $1,115.0 million for the nine months ended June 24, 2023[123]. - Gross profit for the three months ended June 24, 2023, increased by $33.8 million, or 31.0%, to $142.9 million, with gross profit margin rising from 28.7% to 33.6%[125]. - Operating income for the three months ended June 24, 2023, increased by $27.0 million, or 127.2%, to $48.3 million, with operating income margin improving from 5.6% to 11.3%[121]. - Net earnings for the three months ended June 24, 2023, increased by $19.4 million, or 124.8%, to $35.0 million[133]. - Net earnings for the nine months ended June 24, 2023, increased to $48.5 million, up from $29.9 million in the same period of 2022, representing a 62% increase[154]. Segment Performance - Food Service segment sales increased by $27.1 million, or 11.9%, to $254.98 million for the three months ended June 24, 2023, driven by a $29.2 million increase in Dippin' Dots sales[138]. - Operating income in the Food Service segment rose by $18.1 million to $20.8 million for the quarter, largely due to improved gross margins and lower distribution expenses[139]. - Retail Supermarket segment sales increased by $0.1 million, or 0.2%, to $61.15 million for the three months ended June 24, 2023, with soft pretzel sales decreasing by 12.2%[144]. - Operating income in the Retail Supermarkets segment increased by $1.8 million to $4.2 million for the quarter, primarily driven by lower distribution expenses[145]. - Frozen Beverages segment sales increased by $18.3 million, or 20.0%, to $109.64 million for the three months ended June 24, 2023, with beverage-related sales up 26.1%[148]. - Operating income in the Frozen Beverage segment increased by $7.1 million to $23.3 million for the quarter, driven by strong sales performance[150]. - For the nine months ended June 24, 2023, Food Service sales increased by $95.6 million, or 15.5%, to $711.56 million, with significant contributions from Dippin' Dots[140]. - Retail Supermarket segment sales increased by $6.1 million, or 4.2%, to $150.58 million for the nine months ended June 24, 2023, despite declines in soft pretzel and biscuit sales[146]. - Frozen Beverages segment sales increased by $33.0 million, or 15.0%, to $252.83 million for the nine months ended June 24, 2023, with beverage-related sales up 20.8%[151]. Expenses and Income - Marketing expenses increased by 30.4% to $31.3 million for the three months ended June 24, 2023, while distribution expenses decreased by 7.6% to $44.5 million[127]. - Investment income increased by $0.5 million to $0.6 million for the three months ended June 24, 2023, primarily due to the improving interest rate environment[129]. - Interest expense increased by $1.1 million to $1.3 million for the three months ended June 24, 2023, due to outstanding borrowings on the Amended Credit Agreement[130]. - Income tax expense increased by $7.0 million, or 123.7%, to $12.6 million for the three months ended June 24, 2023, with an effective tax rate of 26.5%[132]. Cash Flow and Financial Position - Net cash provided by operating activities was $105.9 million for the nine months ended June 24, 2023, compared to a cash outflow of $29.6 million in the prior year[154]. - The company believes its future operating cash flow, along with its current cash and cash equivalent balances, is sufficient to meet cash requirements and fund future growth[153]. - Cash flows from investing activities showed a net outflow of $70.4 million, significantly reduced from $272.9 million in the previous year, mainly due to no payments for company acquisitions in 2023[156]. - Borrowings under the credit facility amounted to $102 million, with repayments of $74 million, reflecting the company's working capital needs[157]. - As of June 24, 2023, the company had $65.6 million in cash and cash equivalents and $4.5 million in marketable securities[160]. - The company is in compliance with all financial covenants of the Credit Agreement as of June 24, 2023[162]. - Outstanding borrowings on the Amended Credit Agreement totaled $83 million, with an additional borrowing capacity of $132.2 million[164]. Depreciation and Amortization - The increase in depreciation of fixed assets was primarily due to prior year purchases and the Dippin' Dots acquisition, with depreciation expense rising to $41.3 million from $36.3 million[155]. - The increase in amortization of intangibles and deferred costs was linked to the Dippin' Dots acquisition, rising to $5.1 million from $1.8 million[155]. Dividends - Dividends paid increased to $40.4 million in 2023, up from $36.3 million in the previous year, reflecting a raised quarterly dividend[159].

J&J Snack Foods Corp. (NASDAQ:JJSF) Q3 2023 Results Conference Call August 1, 2023 10:00 AM ET Company Participants Norberto Aja - IR, JCIR Dan Fachner - President, CEO & Director Ken Plunk - SVP, CFO & Treasurer Conference Call Participants Connor Rattigan - Consumer Edge Andrew Wolf - CL King Robert Dickerson - Jefferies Todd Brooks - Benchmark Company Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to the J&J Snack Foods fiscal 2023 Third Quarter Conference Call. At this t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended March 25, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-14616 J&J SNACK FOODS CORP. (Exact name of registrant as specified in its charter) New Jersey 22-1935537 (State or other jurisdiction of (I.R.S. Employer incorporation or or ...

Financial Performance - Net sales increased by $32.9 million, or 10.3%, to $351.3 million for the three months ended December 24, 2022, driven by growth across all business segments [114]. - Gross profit rose by $11.5 million, or 14.5%, to $90.9 million, with gross profit margin improving from 24.9% to 25.9% [115]. - Operating expenses increased by $17.0 million, or 26.3%, to $81.5 million, leading to an increase in operating expenses as a percentage of sales from 20.3% to 23.2% [116]. - Net earnings decreased by $4.5 million, or 40.2%, to $6.6 million, reflecting the impact of increased operating expenses and inflationary pressures [119]. - Net earnings for the three months ended December 24, 2022, were $6.633 million, a decrease of 40.5% compared to $11.091 million for the same period in 2021 [131]. Segment Performance - The Food Service segment reported a 12.5% increase in sales to $238.3 million, with significant contributions from frozen novelties, which saw a 157% increase [123]. - Retail Supermarket sales increased by $0.4 million, or 0.9%, to $43.1 million, but operating income decreased by 77.7% to $1.1 million due to higher costs [126]. - Frozen Beverages sales increased by $5.9 million, or 9%, to $69.9 million, with beverage-related sales up 15% [128]. Cash Flow and Investments - Net cash provided by operating activities increased significantly to $21.410 million from $5.454 million year-over-year [131]. - Cash flows used in investing activities totaled $26.881 million, up from $8.669 million in the prior year, primarily due to increased purchases of property, plant, and equipment amounting to $30.910 million [133]. - The company believes its future operating cash flow and current cash balances are sufficient to meet cash requirements and fund growth over the next twelve months [130]. Dividends and Borrowings - The company raised its quarterly dividend, resulting in cash dividend payments of $13.453 million, compared to $12.080 million in the previous year, reflecting an increase of 11.4% [134]. - Outstanding borrowings under the Amended Credit Agreement amounted to $92.0 million, with an additional borrowing capacity of $123.2 million as of September 24, 2022 [140]. Tax and Compliance - The effective tax rate for the three months ended December 24, 2022, was 26.0%, compared to 26.5% in the prior year [118]. - The company is in compliance with all financial covenants of the Credit Agreement as of December 24, 2022 [138]. Other Financial Metrics - Investment income rose by $0.4 million to $0.7 million, while interest expense increased by $1.0 million due to outstanding borrowings [117]. - As of December 24, 2022, the company had $54.9 million in cash and cash equivalents and $6.4 million in marketable securities [135]. - The company experienced a $0.7 million gain from disposals of property and equipment, primarily from the sale of a building [132]. - The decrease in proceeds from redemption and sales of marketable securities was due to a strategic decision not to reinvest in a low interest rate environment [136]. - The increase in depreciation of fixed assets was largely due to prior year purchases and assets acquired in the Dippin' Dots acquisition [132].

Financial Data and Key Metrics Changes - Net sales for the quarter were $351.3 million, growing by 10.3% compared to the prior year period [34] - Adjusted operating income was $11.2 million, with adjusted earnings per diluted share at $0.42, while net earnings decreased to $6.6 million, resulting in reported diluted earnings per share of $0.34, down from $0.58 in the prior period [15][36] - Total operating expenses increased to $81.5 million, representing 23.2% of sales for the quarter compared to 20.3% in Q1 of 2022 [14] Business Line Data and Key Metrics Changes - Food services, the largest segment representing approximately 68% of total sales, saw revenue of $238.3 million, exceeding Q1 2022 by $26.6 million or an increase of 30% [13] - Frozen Beverages revenue was up 9%, driven by a 15% increase in beverage sales and an 8% increase in service sales, although equipment revenue declined by 11% [8][35] - Frozen novelties were relatively flat in Q1, excluding Dippin' Dots sales, which are expected to drive profitability in the second half of the year [6][36] Market Data and Key Metrics Changes - The retail segment experienced a 1% sales increase for the quarter, reflecting softness in macroeconomic spending for consumables [29] - The company noted a significant increase in sales for the Dippin' Dots business, with unit sales up over 14% in the first quarter [26][142] - The company is seeing strong momentum in the churros business, with sales increasing by 32% due to the introduction of the Hola! Churros brand [28] Company Strategy and Development Direction - The company is focused on transforming the business by investing in brands, expanding production capacity, and building a strong pipeline of product innovation [137] - Strategic priorities include improving operational efficiencies through new automated production lines, outsourcing logistics, and optimizing the distribution network [143][144] - The company is evaluating potential M&A opportunities to complement its brand portfolio and business model [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing inflationary pressures and a softening consumer environment impacting year-over-year results, but expressed confidence in improved gross margins due to recent pricing actions [138] - The company remains optimistic about the balance of the year, citing strong initiatives underway that are expected to positively impact both top and bottom lines [34][110] - Management noted that 75% of sales and profitability typically occur in Q3 and Q4, indicating a seasonal business pattern [112] Other Important Information - The company has approximately $92 million in debt and $123 million of additional borrowing capacity available [37] - The first new regional distribution center (RDC) is expected to open in June, with plans for additional centers to enhance logistics and distribution efficiency [144] Q&A Session Summary Question: Impact of cold weather on sales - Management acknowledged that cold weather had an effect on sales, particularly during the holiday shopping season, but emphasized that it is not the key driver of performance [20][62] Question: Capital allocation and debt leverage for M&A - Management indicated that there is no specific leverage number set for potential M&A, but the board is supportive of leveraging the balance sheet for growth [42] Question: Dippin' Dots operating income trend - Management noted that Dippin' Dots typically has a negative impact on operating income in Q1, with most profitability expected in Q3 and Q4 [45][60] Question: Volume trends and inventory destocking - Management confirmed that there was some destocking of inventories by retailers, which contributed to volume declines in December [62] Question: Expectations for commodity cost inflation - Management expects commodity costs to decline, particularly for wheat, with a forecast of a 3% to 4% decrease in the second quarter [106]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 24, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File No. 000-14616 Registrant's telephone number, including area code: (856) 665-9533 J&J SNACK FOODS CORP. (Exact name of registrant as specified in its charter ...

J&J Snack Foods Corp (NASDAQ:JJSF) Q4 2022 Results Conference Call November 15, 2022 10:00 AM ET Company Participants Norberto Aja - JCIR Dan Fachner - President, CEO & Director Ken Plunk - SVP, Treasurer & CFO Conference Call Participants Connor Rattigan - Consumer Edge Research Robert Dickerson - Jefferies Todd Brooks - The Benchmark Company Andrew Wolf - CL King & Associates Operator Hello, thank you for standing by, and welcome to the J&J Snack Foods Fiscal 2022 Fourth Quarter Conference Call. At this t ...

J&J Snack Foods Corp (NASDAQ:JJSF) Q3 2022 Earnings Conference Call August 3, 2022 9:00 AM ET Company Participants Norberto Aja - JCIR Daniel Fachner - President, CEO & Director Ken Plunk - SVP, Treasurer & CFO Conference Call Participants Andrew Wolf - CL King & Associates Robert Dickerson - Jefferies Connor Rattigan - Consumer Edge Research Trevor Sahr - William Blair & Company Todd Brooks - The Benchmark Company Operator Welcome to the J&J Snack Foods Fiscal Third Quarter 2022 Earnings Conference Call. M ...

Part I. Financial Information [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%20l.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three and nine months ended June 25, 2022, including balance sheets, statements of earnings, comprehensive income, changes in stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies and events, such as the acquisition of Dippin' Dots [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of June 25, 2022, shows total assets of **$1.29 billion**, an increase from **$1.12 billion** at September 25, 2021, primarily driven by the Dippin' Dots acquisition, which also increased goodwill and other intangible assets, while total liabilities rose mainly due to **$125 million** in long-term debt to finance the acquisition | Balance Sheet Items (in thousands) | June 25, 2022 | September 25, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $523,739 | $584,769 | | **Property, plant and equipment, net** | $318,574 | $267,187 | | **Goodwill** | $188,467 | $121,833 | | **Other intangible assets, net** | $196,407 | $77,776 | | **Total Assets** | **$1,291,242** | **$1,122,219** | | **Total Current Liabilities** | $198,991 | $167,629 | | **Long-term debt** | $125,000 | $- | | **Total Stockholders' Equity** | $855,899 | $845,654 | | **Total Liabilities and Stockholders' Equity** | **$1,291,242** | **$1,122,219** | [Consolidated Statements of Earnings](index=6&type=section&id=Consolidated%20Statements%20of%20Earnings) For the third quarter ended June 25, 2022, net sales increased to **$380.2 million** from **$324.3 million** year-over-year, but net earnings declined significantly to **$15.6 million** from **$28.9 million**, with diluted EPS falling to **$0.81** from **$1.51**, driven by higher cost of goods sold and a sharp increase in operating expenses, particularly distribution costs | Metric (in thousands, except EPS) | Q3 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $380,227 | $324,344 | $980,230 | $821,519 | | **Gross Profit** | $109,076 | $96,174 | $253,799 | $207,195 | | **Operating Income** | $21,260 | $38,144 | $40,193 | $45,952 | | **Net Earnings** | $15,563 | $28,893 | $29,925 | $36,732 | | **Diluted EPS** | $0.81 | $1.51 | $1.56 | $1.92 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 25, 2022, net cash used in operating activities was **$29.6 million**, a significant decrease from the **$73.6 million** provided in the prior year, primarily due to increases in accounts receivable and inventories, while net cash used in investing activities was **$272.9 million**, dominated by the **$221.3 million** payment for acquisitions, and financing activities provided **$100.5 million**, largely from **$125 million** in new borrowings | Cash Flow Activity (in thousands) | Nine Months Ended June 25, 2022 | Nine Months Ended June 26, 2021 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(29,647) | $73,568 | | **Net cash (used in) provided by investing activities** | $(272,859) | $21,856 | | **Net cash provided by (used in) financing activities** | $100,494 | $(15,589) | | **Net (decrease) increase in cash and cash equivalents** | $(201,909) | $80,459 | | **Cash and cash equivalents at end of period** | $81,283 | $276,268 | [Notes to the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide crucial details on the company's financial statements, including the acquisition of Dippin' Dots for approximately **$223.6 million**, segment performance data showing strong sales growth across all divisions but profit pressure in Food Service and Retail, and details on a new **$125 million** long-term debt facility used to fund the acquisition - On June 21, 2022, the company completed the acquisition of Dippin' Dots for a purchase price of approximately **$223.6 million** in cash. The acquisition is reported as part of the Food Service segment[25](index=25&type=chunk)[27](index=27&type=chunk) - The preliminary purchase price allocation for the Dippin' Dots acquisition includes **$66.6 million** in goodwill and **$120.4 million** in intangible assets[31](index=31&type=chunk)[32](index=32&type=chunk) - The company amended its credit agreement, increasing available borrowings by **$175 million**. As of June 25, 2022, **$125 million** was outstanding under the facility to fund the acquisition[73](index=73&type=chunk)[74](index=74&type=chunk) | Segment Operating Income (in thousands) | Q3 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Food Service | $2,640 | $17,644 | $12,177 | $29,879 | | Retail Supermarket | $2,341 | $9,080 | $8,416 | $20,167 | | Frozen Beverages | $16,279 | $11,420 | $19,600 | $(4,094) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial results, highlighting a **17%** increase in net sales for the third quarter, driven by recovery in the food service and frozen beverage segments, but profitability was significantly impacted by cost inflation in raw materials, packaging, fuel, and higher distribution expenses, with the recent acquisition of Dippin' Dots funded by drawing **$125 million** from an expanded credit facility [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is sourced from cash, investments, and operating cash flow, supplemented by a credit facility that was amended in June 2022 to increase available borrowings by **$175 million**, from which the company drew **$125 million** to fund the Dippin' Dots acquisition, and a quarterly cash dividend of **$0.633 per share** was declared - The company amended its credit agreement on June 21, 2022, increasing available borrowings by **$175 million**[115](index=115&type=chunk) - As of June 25, 2022, **$125 million** was outstanding under the amended credit agreement, classified as long-term debt[116](index=116&type=chunk) - A quarterly cash dividend of **$0.633 per share** was declared, payable on July 11, 2022[110](index=110&type=chunk) [Results of Operations](index=37&type=section&id=RESULTS%20OF%20OPERATIONS) Net sales grew **17%** in Q3 and **19%** in the first nine months of FY2022, with all segments reporting sales growth, and Frozen Beverages showing the strongest recovery, however, consolidated operating income fell **44%** in Q3 due to significant margin pressure from inflation in raw materials and packaging, as well as sharply higher distribution costs and M&A expenses - Food Service sales increased **16%** in Q3, but operating income decreased by **85%** due to significant increases in ingredients, production, and distribution costs[120](index=120&type=chunk)[123](index=123&type=chunk) - Retail Supermarkets sales increased **13%** in Q3, while operating income decreased by **74%**, primarily due to higher cost of goods sold and shipping costs[125](index=125&type=chunk)[127](index=127&type=chunk) - Frozen Beverages sales increased **23%** in Q3, with operating income rising to **$16.3 million** from **$11.4 million** YoY, driven by strong demand and operating leverage[128](index=128&type=chunk)[129](index=129&type=chunk) - Consolidated gross profit margin decreased to **28.7%** in Q3 from **29.7%** YoY due to inflation. Operating expenses as a percentage of sales increased from **17.9%** to **23.1%**, driven by higher distribution costs and **$3.1 million** in M&A expenses[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there has been no material change in its assessment of sensitivity to market risk since the disclosures made in its 2021 annual report on Form 10-K - There has been no material change in the Company's assessment of its sensitivity to market risk since its 2021 annual report on Form 10-K[139](index=139&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's CEO and CFO concluded that disclosure controls and procedures were effective as of June 25, 2022, and the assessment of internal control over financial reporting excluded the recently acquired Dippin' Dots business, an omission permitted by SEC guidance for up to one year post-acquisition - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of the end of the period[139](index=139&type=chunk) - The company excluded the recently acquired Dippin' Dots from its interim evaluation of internal controls over financial reporting, as permitted by SEC guidance[140](index=140&type=chunk) Part II. Other Information [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which include CEO and CFO certifications as required by the Sarbanes-Oxley Act of 2002, and financial statements formatted in inline XBRL - The report includes certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[143](index=143&type=chunk)[144](index=144&type=chunk) - Financial information is provided in inline XBRL (eXtensible Business Reporting Language) format as required[145](index=145&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended March 26, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 0-14616 J&J SNACK FOODS CORP. (Exact name of registrant as specified in its charter) New Jersey 22-1935537 (State or other jurisdiction of (I.R.S. Employer incorporation or or ...