J&J Snack Foods Corp. (NASDAQ:JJSF) Q4 2021 Results Conference Call November 16, 2021 10:00 AM ET Company Participants Norberto Aja - IR Dan Fachner - CEO Ken Plunk - CFO Conference Call Participants Ryan Bell - Consumer Edge Research Operator Welcome to the J&J Snack Foods Fourth Quarter Earnings Conference Call. My name is James, and I’ll be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions ...

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 June 26, 2021 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 org ...

J&J Snack Foods Corp. (NASDAQ:JJSF) Q3 2021 Earnings Conference Call July 27, 2021 10:00 AM ET Company Participants Daniel Fachner - President and CEO Conference Call Participants Ryan Bell - Consumer Edge Research Robert Costello - Asset Management Inc. Operator Welcome to the J&J Snack Foods' Third Quarter Earnings Call. My name is Danielle and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator In ...

Part I [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%20l.%20Consolidated%20Financial%20Statements) Presents J&J Snack Foods Corp.'s unaudited consolidated financial statements for the period ended March 27, 2021, detailing balance sheets, earnings, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | March 27, 2021 | September 26, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $530,269 | $499,557 | | **Total Assets** | **$1,064,915** | **$1,056,553** | | **Total Current Liabilities** | $143,197 | $134,126 | | **Total Stockholders' Equity** | $813,000 | $809,498 | | **Total Liabilities and Stockholders' Equity** | **$1,064,915** | **$1,056,553** | [Consolidated Statements of Earnings](index=6&type=section&id=Consolidated%20Statements%20of%20Earnings) Statements of Earnings Highlights (in thousands, except per share amounts) | Metric | Three Months Ended Mar 27, 2021 | Three Months Ended Mar 28, 2020 | Six Months Ended Mar 27, 2021 | Six Months Ended Mar 28, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $256,178 | $272,042 | $497,175 | $554,939 | | **Gross Profit** | $60,896 | $69,443 | $111,021 | $147,304 | | **Operating Income** | $7,230 | $10,982 | $7,808 | $32,685 | | **Net Earnings** | $6,061 | $7,309 | $7,839 | $24,368 | | **Earnings per diluted share** | $0.32 | $0.38 | $0.41 | $1.28 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended (in thousands) | Cash Flow Activity | March 27, 2021 | March 28, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,781 | $42,270 | | Net cash provided by (used in) investing activities | $23,788 | $(67,557) | | Net cash used in financing activities | $(8,367) | $(23,154) | | **Net increase (decrease) in cash** | **$42,577** | **$(49,426)** | | **Cash and cash equivalents at end of period** | **$238,386** | **$142,969** | [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) - The company's sales are negatively impacted by COVID-19, affecting approximately two-thirds of sales to venues that have shut down or curtailed operations, with capacity improving towards the end of the second quarter[26](index=26&type=chunk) - The company adopted ASU 2016-13 regarding credit loss measurement in Q1 FY2021, which did not materially impact consolidated financial statements[50](index=50&type=chunk) Depreciation Expense (in thousands) | Period | Depreciation Expense | | :--- | :--- | | Three months ended Mar 27, 2021 | $11,984 | | Three months ended Mar 28, 2020 | $12,923 | | Six months ended Mar 27, 2021 | $24,253 | | Six months ended Mar 28, 2020 | $24,810 | Earnings Per Share (EPS) | Period | Basic EPS | Diluted EPS | | :--- | :--- | :--- | | Three Months Ended Mar 27, 2021 | $0.32 | $0.32 | | Six Months Ended Mar 27, 2021 | $0.41 | $0.41 | | Three Months Ended Mar 28, 2020 | $0.39 | $0.38 | | Six Months Ended Mar 28, 2020 | $1.29 | $1.28 | - The effective tax rate for the six months ended March 27, 2021, was **20%**, down from 28% in the prior year, primarily due to an **$866,000** tax benefit from share-based compensation[50](index=50&type=chunk) - In fiscal year 2020, the company acquired assets of ICEE Distributors LLC and BAMA ICEE for a total purchase price of **$57.2 million**[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, liquidity, and operations, highlighting COVID-19's impact on sales and operating income, offset by Retail Supermarkets' growth [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary sources of liquidity, including cash balances, investments, and future cash from operations, are considered sufficient for future growth[91](index=91&type=chunk) - A quarterly cash dividend of **$0.575 per share** was declared, payable on April 13, 2021[92](index=92&type=chunk) - The company has a **$50 million** revolving credit facility expiring in November 2021, with no outstanding balance as of March 27, 2021[96](index=96&type=chunk) - No shares were repurchased in the six months ended March 27, 2021, with **318,858 shares** remaining authorized for repurchase[93](index=93&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Consolidated Sales Performance | Period | Net Sales | Change YoY | | :--- | :--- | :--- | | Q2 FY2021 | $256,178,000 | -6% | | Six Months FY2021 | $497,175,000 | -10% | Segment Sales Performance (Q2 FY2021 vs Q2 FY2020) | Segment | Q2 FY2021 Sales | Change YoY | | :--- | :--- | :--- | | Food Service | $169,324,000 | -1% | | Retail Supermarkets | $43,906,000 | +17% | | Frozen Beverages | $42,948,000 | -32% | Segment Operating Income (Loss) Performance (Q2 FY2021 vs Q2 FY2020, in thousands) | Segment | Q2 FY2021 Operating Income | Q2 FY2020 Operating Income | Change YoY | | :--- | :--- | :--- | | Food Service | $6,055 | $7,951 | -24% | | Retail Supermarkets | $6,364 | $4,337 | +47% | | Frozen Beverages | $(5,189) | $(1,306) | Increased Loss | - Consolidated gross profit margin decreased to **23.8%** in Q2 2021 from 25.5% in Q2 2020, due to COVID-19 sales pressure creating margin leverage challenges from lower production volumes[111](index=111&type=chunk) - Consolidated operating income decreased by **34%** to **$7.2 million** in Q2 and by **76%** to **$7.8 million** in the six-month period[114](index=114&type=chunk) - Net earnings decreased by **17%** to **$6.1 million** in Q2 and by **68%** to **$7.8 million** in the six-month period[116](index=116&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material change in the company's market risk assessment since its 2020 annual report - There has been no material change in the Company's assessment of its sensitivity to market risk since its 2020 annual report on Form 10-K[119](index=119&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective, with no material changes to internal financial controls - The CEO and CFO concluded that the Company's disclosure controls and procedures are effective as of March 27, 2021[119](index=119&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[120](index=120&type=chunk) Part II [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) Lists exhibits filed, including Sarbanes-Oxley Act certifications and iXBRL financial data - Lists exhibits filed with the report, including Sarbanes-Oxley Act certifications (Sections 302 and 906) and financial data in iXBRL format[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)

J & J Snack Foods Corp. (NASDAQ:JJSF) Q2 2021 Earnings Conference Call April 27, 2020 10:00 AM ET Company Participants Daniel Fachner - President Gerry Shreiber - Founder, Chairman and CEO Ken Plunk - Senior Vice President and CFO Marjorie Roshkoff - Vice President and General Counsel Bob Radano - COO Bob Pape - Senior Vice President of Sales Conference Call Participants Ryan Bell - Consumer Edge Research Jon Andersen - William Blair & Company Todd Brooks - CL King & Associates Rob Dickerson - Jefferies R ...

[Part I. Financial Information](index=2&type=section&id=Part%20I.%20Financial%20Information) This part presents the company's unaudited financial statements, management's analysis, and disclosures on market risk and internal controls [Item 1. Consolidated Financial Statements](index=2&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2021 include balance sheets, earnings, and cash flow statements [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$1.052 billion**, with increased cash and stable stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 26, 2020 (unaudited) | Sep 26, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$1,051,843** | **$1,056,553** | | Cash and cash equivalents | $228,335 | $195,809 | | Total current assets | $508,655 | $499,557 | | Property, plant and equipment, net | $259,214 | $261,616 | | Goodwill | $121,833 | $121,833 | | **Total Liabilities** | **$243,554** | **$247,055** | | Total current liabilities | $132,691 | $134,126 | | **Total Stockholders' Equity** | **$808,289** | **$809,498** | [Consolidated Statements of Earnings](index=3&type=section&id=Consolidated%20Statements%20of%20Earnings) Q1 2021 performance declined significantly, with net sales falling 15% and net earnings decreasing by 90% Consolidated Earnings Summary (in thousands, except per share amounts) | Metric | Three months ended Dec 26, 2020 | Three months ended Dec 28, 2019 | | :--- | :--- | :--- | | Net Sales | $240,997 | $282,897 | | Gross Profit | $50,125 | $77,861 | | Operating Income | $578 | $21,703 | | Net Earnings | $1,778 | $17,059 | | Earnings per diluted share | $0.09 | $0.89 | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased, but a net cash increase of **$32.5 million** was driven by investing activities Cash Flow Summary (in thousands) | Activity | Three months ended Dec 26, 2020 | Three months ended Dec 28, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $21,304 | $33,569 | | Net cash provided by (used in) investing activities | $17,367 | $(46,857) | | Net cash used in financing activities | $(6,572) | $(9,065) | | **Net increase (decrease) in cash** | **$32,526** | **$(22,068)** | | Cash and cash equivalents at end of period | $228,335 | $170,327 | [Notes to the Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Details the significant negative impact of COVID-19 on sales and outlines key accounting policies - The company states that approximately **two-thirds of its sales** are to venues and locations that have been shut down or have sharply curtailed operations due to COVID-19, resulting in a negative impact on the business[21](index=21&type=chunk) - Revenue is primarily recognized at a point-in-time when product control is transferred to the customer, which is generally upon delivery, installation, or pickup[24](index=24&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes a 15% sales decrease and 97% operating income drop to COVID-19's impact on key segments Overall Performance Summary (Q1 FY21) | Metric | Amount | Change vs. Q1 FY20 | | :--- | :--- | :--- | | Net Sales | $240,997,000 | -15% | | Operating Income | $578,000 | -97% | [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, declared a quarterly dividend, and has an undrawn credit facility - The Board of Directors declared a quarterly cash dividend of **$0.575 per share**[78](index=78&type=chunk) - The company has a **$50 million revolving credit facility**, with no outstanding balance at the end of the quarter[81](index=81&type=chunk) - No shares were repurchased in the quarter; **318,858 shares remain authorized** for purchase[79](index=79&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Pandemic impact led to sales declines in Food Service and Frozen Beverages but growth in Retail Supermarkets Segment Sales Performance (Q1 FY21 vs Q1 FY20) | Segment | Q1 FY21 Sales (in thousands) | Change vs. Q1 FY20 | | :--- | :--- | :--- | | Food Service | $160,425 | -13% | | Retail Supermarkets | $39,094 | +33% | | Frozen Beverages | $41,478 | -41% | - Gross profit as a percentage of sales decreased to **20.8% from 27.5%** in the prior year, attributed to COVID-19 sales pressure creating margin leverage challenges[89](index=89&type=chunk) - Net earnings decreased **90% to $1.8 million**, with an effective tax rate of 8% for the quarter[91](index=91&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material change in its market risk sensitivity since the 2020 annual report - There has been **no material change** in the Company's assessment of its sensitivity to market risk since its 2020 annual report on Form 10-K[92](index=92&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** as of December 26, 2020[92](index=92&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[93](index=93&type=chunk) [Part II. Other Information](index=20&type=section&id=Part%20II.%20Other%20Information) This part lists the exhibits filed with the Form 10-Q, including required certifications and iXBRL data [Item 6. Exhibits](index=20&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the report, including Sarbanes-Oxley certifications and iXBRL financial data - Exhibits filed include **CEO and CFO certifications** under Sarbanes-Oxley Sections 302 and 906[94](index=94&type=chunk) - The report includes financial statements and notes formatted in **iXBRL** as Exhibit 101.1[94](index=94&type=chunk)

Financial Data and Key Metrics Changes - Net sales for the quarter were $241 million, a decrease of 15% compared to the previous year, primarily impacted by COVID-19 [7][17] - Operating income was $578,000, down by $21.1 million due to declining sales affecting production efficiency and expense leverage [8][16] - Net earnings for the quarter were $1.8 million, down from $17.1 million last year [17] Business Segment Data and Key Metrics Changes - Food Service sales decreased by 30% for the quarter, showing an improving trend compared to a 21% decline in Q4 2020 [10] - Retail business saw a 33% increase in sales, driven by the SUPERPRETZEL brand, which grew by 41% [13] - Frozen Beverage sales were down 41%, with beverage-related sales declining by 55% due to reduced traffic in theaters and amusement parks [14][15] Market Data and Key Metrics Changes - The Food Service segment, which represents about 70% of total sales, was significantly impacted by cancellations in sports and leisure activities [9] - The retail grocery business performed well, with sales increases across various product lines, including frozen juices and biscuits [13] - The Frozen Beverage segment incurred an operating loss of $10.3 million due to ongoing COVID-19 restrictions [15] Company Strategy and Development Direction - The company is focusing on strategic capital investments and driving innovation and efficiencies despite the challenges posed by COVID-19 [24][25] - Management is exploring new sales channels outside of traditional venues like theaters, particularly in fast casual and QSR segments [40][92] - The company is actively looking for acquisition opportunities to enhance long-term growth [17][65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in gradual sales improvements as venues reopen and consumer traffic increases [34][54] - The company anticipates returning to last year's sales levels over the next year, contingent on the recovery from COVID-19 [53] - There is a focus on managing costs effectively while navigating the ongoing challenges posed by the pandemic [56][63] Other Important Information - The company declared a cash dividend of $0.575 per share, which was paid on January 12, 2021 [18] - Capital spending for the quarter was $9.7 million, consistent with prior year estimates [18] - The company is monitoring commodity prices closely and evaluating pricing strategies in response to inflationary pressures [110][112] Q&A Session Summary Question: Sales cadence and improvement expectations - Management noted that sales improved in October and November but faced challenges during the holiday season due to COVID spikes [33][34] Question: Performance improvement quarter-to-date - Food Service was approximately 13% below last year, an improvement from Q4's 21% decline [51][52] Question: Capital allocation and M&A strategy - The company is actively evaluating capital allocation and looking for acquisition opportunities, particularly in retail [64][67] Question: Dividend policy and potential increases - Management indicated that discussions about increasing the dividend will continue as the business recovers from COVID [100][106] Question: Commodity pricing and pricing strategies - The company is closely monitoring commodity prices and is prepared to adjust pricing strategies as necessary [110][112]

Revenue Breakdown - Soft pretzel sales accounted for 20% of the Company's revenue in fiscal year 2020, up from 21% in 2019 and 2018 [29]. - Frozen juice treats and desserts represented 12% of the Company's revenue in fiscal year 2020, an increase from 10% in both 2019 and 2018 [32]. - Churro sales were 5% of the Company's sales in fiscal year 2020, down from 6% in 2019 and 2018 [35]. - Bakery products sales amounted to 35% of the Company's sales in fiscal year 2020, compared to 32% in 2019 and 33% in 2018 [37]. - Frozen beverage sales constituted 10% of the Company's revenue in fiscal year 2020, a decrease from 15% in both 2019 and 2018 [39]. Customer and Market Information - The Company's top ten customers accounted for 43% of sales during fiscal years 2020, 2019, and 2018, with the largest customer contributing 13% in 2020 [45]. - The Company sells products to approximately 85-90% of supermarkets in the United States [49]. - Approximately two-thirds of the Company's sales are to venues that have shut down or curtailed foodservice operations due to COVID-19 [67]. - The Company competes with larger manufacturers and distributors, which may exert downward pressure on prices and market share [75]. Financial Performance - Net sales for the fiscal year ended September 26, 2020, were $1,022,038, a decrease of 13.8% compared to $1,186,487 in 2019 [116]. - Net earnings for the fiscal year ended September 26, 2020, were $18,305, down 80.7% from $94,819 in 2019 [116]. - Earnings per diluted share for the fiscal year ended September 26, 2020, were $0.96, a decline of 80.8% from $5.00 in 2019 [116]. - Cash dividends declared per common share increased to $2.30 in 2020 from $2.00 in 2019, representing a 15% increase [116]. - Operating income decreased by $99,762,000 or 85% to $17,194,000 in fiscal year 2020 [160]. Operational Changes and Challenges - The Company has about 4,100 full and part-time employees and approximately 1,000 staffing agency workers as of September 26, 2020 [63]. - The Company is in the late stages of implementing a new enterprise resource planning (ERP) system, which may face difficulties and require significant resources [86][88]. - The allowance for doubtful receivables increased to $1,388,000 in 2020 from $572,000 in 2019, reflecting the impact of COVID-19 on collectability [134]. - The Company anticipates COVID-19 will continue to have a negative impact on its business [146]. Acquisitions and Growth - Hill & Valley Inc. was acquired for approximately $31 million, contributing $35.77 million in sales and $653,000 in operating income for the fiscal year 2017 [182]. - An ICEE distributor in Georgia and Tennessee was acquired for about $11 million, generating $1.69 million in sales and $395,000 in operating income for the fiscal year 2017 [183]. - ICEE Distributors LLC was acquired for about $45 million, with sales of $11.4 million and operating income of $3.6 million for the year ended September 26, 2020 [185]. - BAMA ICEE was acquired for approximately $12 million, contributing $1.7 million in sales and $630,000 in operating income for the year ended September 26, 2020 [186]. Asset and Liability Management - Total assets increased to $1,056,553 in 2020 from $1,019,339 in 2019, reflecting a growth of 3.3% [116]. - The company has $278 million of cash and marketable securities on its balance sheet, up from $267 million at March 28, 2020 [146]. - Total recorded liability for all years' claims incurred but not yet paid was $12,800,000 at September 26, 2020 [141]. - Goodwill increased to $121.83 million from $102.51 million in 2019, with $19.32 million acquired in the frozen beverage segment [201].

J&J Snack Foods Corp. (NASDAQ:JJSF) Q4 2020 Earnings Conference Call November 6, 2020 10:00 AM ET Company Participants Gerry Shreiber – Chief Executive Officer and Founder Dan Fachner – President Dennis Moore – Senior Vice President Bob Pape – Senior Vice President of Sales Conference Call Participants Jon Andersen – William Blair & Company Todd Brooks – CL King & Associates Ryan Bell – Consumer Edge Research Operator Hello, and welcome to the J&J Snack Foods Fourth Quarter Earnings Conference Call. My name ...

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 June 27, 2020 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 org ...