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 ...

J & J Snack Foods Corp. (NASDAQ:JJSF) Q3 2020 Results Earnings Conference Call July 28, 2020 10:00 AM ET Company Participants Gerald Shreiber - Chairman and Chief Executive Officer Deb Kane - Director of Food Service Safety and Quality Assurance Dennis Moore - Chief Financial Officer Dan Fachner - President Conference Call Participants Jonathan Andersen - William Blair & Company Todd Brooks - CL King & Associates Ashish Mago - Jefferies Operator Welcome to the J & J Snack Foods Third Quarter Earnings Confer ...

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 28, 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 or ...

J&J Snack Foods Corp (NASDAQ:JJSF) Q2 2020 Earnings Conference Call April 28, 2020 10:00 AM ET Company Participants Gerry Shreiber - President and CEO Deb Kane - Director of Food Service Safety and Quality Assurance Dennis Moore - Senior VP, CFO, Treasurer & Director Dan Fachner - President of ICEE company Bob Pape - SVP of Sales Conference Call Participants Rob Dickerson - Jefferies Ryan Bell - Consumer Edge Research Jon Andersen - William Blair & Company Todd Brooks - CL King & Associates Robert Costello ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number: 0-14616 J&J SNACK FOODS CORP. (Exact name of registrant as specified in its charter) or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (Mark One) FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended December 28, 2019 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identif ...

J & J Snack Foods Corp. (NASDAQ:JJSF) Q1 2020 Results Earnings Conference Call January 28, 2020 10:00 AM ET Company Participants Gerald Shreiber - Chief Executive Officer Dan Fachner - President of the ICEE Company Dennis Moore - Chief Financial Officer Robert Radano - Chief Operations Officer Robert Pape - Vice President of Sales Gerard Law - Senior Vice President of Operations Marjorie Shreiber Roshkoff - Legal representative Bo Powell - Sales Manager, food service Conference Call Participants Rob Dickers ...

[Company Overview](index=2&type=section&id=Company%20Overview) J&J Snack Foods Corp. operates in foodservice, frozen beverages, and retail, focusing on snack foods and achieving consistent revenue growth [Company Profile](index=2&type=section&id=Company%20Profile) J&J Snack Foods Corp. operates through three core business groups: foodservice, frozen beverages, and retail, with a growth strategy focused on new product innovation and market expansion - The company's product portfolio includes soft pretzels, frozen beverages, frozen juice treats, desserts, stuffed sandwiches, burritos, churros, and other bakery goods[6](index=6&type=chunk) - Growth is driven by a strategy of developing new products, increasing penetration in existing market channels, and expanding established products into new markets[6](index=6&type=chunk) Financial Highlights (2010-2019) (in thousands) | Indicator | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Net Sales | $1,186,487 | $1,138,265 | $1,084,224 | | Net Earnings | $94,819 | $103,596 | $79,174 | | Total Assets | $1,019,339 | $932,013 | $867,228 | | Stockholders' Equity | $833,751 | $759,091 | $682,322 | | EPS-Diluted | $5.00 | $5.51 | $4.21 | | Dividends/Share | $2.00 | $1.80 | $1.68 | [President's Letter](index=3&type=section&id=President's%20Letter) In fiscal year 2019, J&J Snack Foods Corp. achieved its 48th consecutive year of revenue growth, with sales increasing by 4% to $1.186 billion and operating income rising 6% to $117.0 million FY 2019 Performance Highlights | Metric | FY 2019 | Change | | :--- | :--- | :--- | | Sales | $1.186 Billion | +4% | | Operating Income | $117.0 Million | +6% | - Net earnings and EPS decreased in FY2019 as a result of benefits from the Tax Cuts and Jobs Act in the prior year[10](index=10&type=chunk) - The company's balance sheet remains strong, with over **$343 million** in cash, cash equivalents, and marketable securities at year-end[13](index=13&type=chunk) - Future strategy involves focusing on long-term investments to grow sales, add capabilities, and make operational improvements, while also searching for acquisitions[13](index=13&type=chunk) [Part I](index=5&type=section&id=PART%20I) Part I covers the company's business operations, key risk factors, property holdings, and legal proceedings [Item 1. Business](index=5&type=section&id=Item%201.%20Business) J&J Snack Foods Corp. manufactures and distributes snack foods and frozen beverages to foodservice and retail supermarket industries, operating in three segments with key products including soft pretzels, frozen treats, and bakery goods [Business Segments](index=6&type=section&id=Business%20Segments) The company operates through three business segments: Food Service, Retail Supermarkets, and Frozen Beverages, each focusing on distinct product distribution channels - The company operates in three business segments: Food Service, Retail Supermarkets, and Frozen Beverages[28](index=28&type=chunk) - Key performance variables monitored by management for each segment are sales and operating income, with depreciation, capital spending, and assets reviewed quarterly[29](index=29&type=chunk) [Products](index=6&type=section&id=Products) The company's product portfolio is diverse, with bakery products being the largest contributor to revenue at 32% in FY2019, followed by soft pretzels at 21% and frozen beverages at 15% Product Sales as a Percentage of Total Revenue | Product Category | FY 2019 | FY 2018 | FY 2017 | | :--- | :--- | :--- | :--- | | Bakery Products | 32% | 33% | 32% | | Soft Pretzels | 21% | 21% | 20% | | Frozen Beverages | 15% | 15% | 15% | | Frozen Juice Treats & Desserts | 10% | 10% | 11% | | Churros | 6% | 6% | 6% | | Handheld Products | 4% | 5% | 5% | - The company provides managed service and/or products to approximately **145,000** company-owned and customer-owned frozen beverage dispensers[47](index=47&type=chunk) [Customers](index=7&type=section&id=Customers) The company has a concentrated customer base, with its top ten customers accounting for 43% of sales in fiscal year 2019, and sells to an estimated 85-90% of supermarkets in the United States Customer Concentration | Customer Group | % of Sales (FY 2019) | % of Sales (FY 2018) | % of Sales (FY 2017) | | :--- | :--- | :--- | :--- | | Top 10 Customers | 43% | 43% | 42% | | Largest Customer | 11% | 9.5% | 9.5% | - The company sells its products to an estimated **85-90%** of supermarkets in the United States[53](index=53&type=chunk) [Competition and Other Business Aspects](index=8&type=section&id=Competition%20and%20Other%20Business%20Aspects) The snack food and bakery markets are highly competitive, with J&J facing competition from larger and regional players, and its sales are seasonal with higher demand for frozen products in warmer months - The company's sales are seasonal, as frozen beverage and frozen juice treat sales are generally higher during warmer months[57](index=57&type=chunk) - The snack food and bakery markets are highly competitive, with competition based on product quality, customer service, taste, price, brand awareness, and distribution[62](index=62&type=chunk) - As of September 28, 2019, the company had about **4,600** full and part-time employees and approximately **1,500** workers from staffing agencies, with about **1,200** employees covered by collective bargaining agreements[68](index=68&type=chunk) [Item 1A. Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces several risks, including volatility in raw material and energy costs, customer concentration, intense competition, potential manufacturing disruptions, rising transportation costs, labor shortages, and reliance on key leadership - The company is exposed to market risks from adverse changes in commodity prices for raw materials and energy, which could impact profitability if price increases cannot be passed on to customers[72](index=72&type=chunk) - Significant customer concentration exists, with the top ten customers accounting for **43%** of sales in FY2019, and the loss of one or more of these customers could adversely affect results[78](index=78&type=chunk) - The company's performance is greatly impacted by its founder, President, CEO, and Chairman, Gerald B. Shreiber, who beneficially owns **19%** of common stock and holds enhanced voting rights on the Board of Directors[86](index=86&type=chunk) - The company is in the late stages of a multi-year implementation of a new enterprise resource planning (ERP) system, which carries risks of delays, increased costs, and potential disruption to business operations[93](index=93&type=chunk) [Item 2. Properties](index=12&type=section&id=Item%202.%20Properties) J&J Snack Foods Corp. owns and leases numerous manufacturing, warehouse, and distribution facilities across the United States, Mexico, and Canada, including its corporate headquarters in Pennsauken, NJ - The company's corporate headquarters and primary east coast manufacturing facility for soft pretzels, churros, and funnel cake is an owned **70,000 sq. ft.** building in Pennsauken, New Jersey[98](index=98&type=chunk) - The primary west coast manufacturing facility is a leased **137,000 sq. ft.** building in Vernon, California, producing soft pretzels, churros, and baked goods[100](index=100&type=chunk) - In addition to manufacturing plants, the company leases approximately **160** warehouse and distribution facilities in **44** states, Mexico, and Canada[107](index=107&type=chunk) [Item 3. Legal Proceedings](index=12&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no material pending legal proceedings outside of ordinary routine litigation incidental to its business - The Company has no material pending legal proceedings, other than ordinary routine litigation incidental to the business[108](index=108&type=chunk) [Part II](index=13&type=section&id=PART%20II) Part II details the company's common stock market, selected financial data, management's discussion and analysis, and market risk disclosures [Item 5. Market For Registrant's Common Equity, Related Stockholder Matters And Issuer Purchases Of Equity Securities](index=13&type=section&id=Item%205.%20Market%20For%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20And%20Issuer%20Purchases%20Of%20Equity%20Securities) The company's common stock trades on the NASDAQ Global Select Market under "JJSF", with fiscal 2019 stock prices ranging from $138.40 to $196.84 and quarterly dividends of $0.50 per share Fiscal 2019 Stock Price and Dividend Information | Quarter | High Price | Low Price | Dividend Declared | | :--- | :--- | :--- | :--- | | First | $162.80 | $138.65 | $0.5000 | | Second | $162.84 | $138.40 | $0.5000 | | Third | $167.50 | $150.61 | $0.5000 | | Fourth | $196.84 | $159.63 | $0.5000 | - The company did not purchase any of its common stock in fiscal year 2019, leaving **384,506** shares available for purchase under a plan announced in August 2017[114](index=114&type=chunk) [Item 6. Selected Financial Data](index=14&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year summary of key financial data from fiscal 2015 to 2019, showing net sales growth from **$976.3 million** to **$1.186 billion** and diluted EPS rising from **$3.73** to **$5.00** Five-Year Selected Financial Data (In thousands except per share data) | Indicator | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,186,487 | $1,138,265 | $1,084,224 | $992,781 | $976,256 | | Net Earnings | $94,819 | $103,596 | $79,174 | $75,975 | $70,183 | | Total Assets | $1,019,339 | $932,013 | $867,228 | $790,487 | $739,669 | | Stockholders' Equity | $833,751 | $759,091 | $682,322 | $637,974 | $599,919 | | Earnings Per Diluted Share | $5.00 | $5.51 | $4.21 | $4.05 | $3.73 | | Cash Dividends Declared Per Common Share | $2.00 | $1.80 | $1.68 | $1.56 | $1.44 | [Item 7. Management's Discussion And Analysis Of Financial Condition And Results Of Operations](index=14&type=section&id=Item%207.%20Management's%20Discussion%20And%20Analysis%20Of%20Financial%20Condition%20And%20Results%20Of%20Operations) In fiscal 2019, net sales increased **4%** to **$1.186 billion**, and operating income rose **6%** to **$117.0 million**, while net earnings decreased **8%** to **$94.8 million** due to prior-year tax benefits, with the company maintaining a strong liquidity position and investing in facilities [Critical Accounting Policies](index=14&type=section&id=Critical%20Accounting%20Policies) The company's critical accounting policies involve significant judgments and estimates in revenue recognition, allowance for doubtful receivables, asset impairment testing for goodwill and other intangibles, and insurance reserves - The company adopted the new ASC 606 revenue recognition guidance in fiscal 2019 using a modified retrospective approach, which did not have a material impact on financial results[124](index=124&type=chunk) - Goodwill, totaling **$102.5 million** as of September 28, 2019, is evaluated annually for impairment at the reporting unit level using a discounted cash flow method, with no impairment found in the latest test[140](index=140&type=chunk) - The company self-insures for its medical plan and, up to loss limits, for worker's compensation and automobile liability, with recorded liabilities of **$1.4 million** for medical claims and **$8.7 million** for worker's comp/auto at the end of fiscal 2019[143](index=143&type=chunk)[144](index=144&type=chunk) [Results of Operations: Fiscal 2019 vs. 2018](index=17&type=section&id=Results%20of%20Operations%3A%20Fiscal%202019%20vs.%202018) In fiscal 2019, net sales grew **4%** to **$1.186 billion**, driven by increases in Food Service and Frozen Beverages sales, while net earnings fell **8%** to **$94.8 million** due to prior-year tax benefits FY 2019 vs. FY 2018 Performance (in millions) | Metric | FY 2019 | FY 2018 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,186.5M | $1,138.3M | +4% | | Operating Income | $117.0M | $110.8M | +6% | | Net Earnings | $94.8M | $103.6M | -8% | | Diluted EPS | $5.00 | $5.51 | -9% | - Food Service sales rose **2%** to **$761.6 million**, with churro sales up **7%** and bakery sales up **4%**, while handheld sales declined **19%**[151](index=151&type=chunk) - Frozen Beverages sales increased **13%** to **$305.6 million**, with machine revenue growing significantly from **$28.7 million** in 2018 to **$45.8 million** in 2019[154](index=154&type=chunk) - The decrease in net earnings was primarily due to a **$20.7 million** gain on the remeasurement of deferred tax liabilities in FY2018 following the Tax Cuts and Jobs Act[161](index=161&type=chunk) [Results of Operations: Fiscal 2018 vs. 2017](index=18&type=section&id=Results%20of%20Operations%3A%20Fiscal%202018%20vs.%202017) Fiscal 2018 net sales increased **5%** to **$1.138 billion**, driven by growth across segments, but operating income decreased **6%** to **$110.8 million** due to higher costs, while net earnings surged **31%** to **$103.6 million** due to tax benefits FY 2018 vs. FY 2017 Performance (in millions) | Metric | FY 2018 (52 wks) | FY 2017 (53 wks) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,138.3M | $1,084.2M | +5% | | Operating Income | $110.8M | $118.1M | -6% | | Net Earnings | $103.6M | $79.2M | +31% | | Diluted EPS | $5.51 | $4.21 | +31% | - Operating income in 2018 was negatively impacted by approximately **$5.3 million** in higher distribution costs and **$1.8 million** from the MARY B's biscuits recall[168](index=168&type=chunk) - The significant increase in net earnings was driven by a **$20.7 million** gain on remeasurement of deferred tax liabilities and an **$8.8 million** reduction in income taxes due to the Tax Cuts and Jobs Act[177](index=177&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position strengthened in fiscal 2019, with cash and marketable securities increasing by **$66.7 million** to **$342.7 million**, supported by strong operating cash flow and a $50 million undrawn revolving credit facility Cash Flow Summary (FY 2019 vs. FY 2018) (in millions) | Cash Flow Activity (in millions) | FY 2019 | FY 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $147.5 | $123.4 | | Net cash used in investing activities | ($43.4) | ($73.1) | | Net cash used in financing activities | ($22.8) | ($27.3) | - Cash and marketable securities increased by **$66.7 million** (**24%**) to **$342.7 million** at the end of fiscal 2019[193](index=193&type=chunk) - The company has a **$50 million** revolving credit facility that was undrawn at the end of fiscal 2019 and 2018[188](index=188&type=chunk) Contractual Cash Flow Commitments (in thousands) | Commitment | Total | Less Than 1 Year | 1-3 Years | 4-5 Years | After 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Capital lease obligations | $1,057 | $339 | $505 | $213 | $ - | | Purchase commitments | $100,000 | $97,000 | $3,000 | $ - | $ - | | Operating leases | $79,538 | $14,814 | $23,177 | $15,959 | $25,588 | | **Total** | **$180,595** | **$112,153** | **$26,682** | **$16,172** | **$25,588** | [Item 7A. Quantitative And Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%207A.%20Quantitative%20And%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk stems from commodity price volatility for raw materials, mitigated by forward purchasing contracts, with no significant interest rate or foreign exchange rate risk due to the absence of long-term debt or hedging contracts - The company's primary market risk is from commodity price volatility for its raw materials, mitigated through forward purchasing contracts, generally for **1 to 12 months**[225](index=225&type=chunk) - As of September 28, 2019, the company had no long-term debt obligations, minimizing its exposure to interest rate risk[224](index=224&type=chunk) [Item 9A. Controls and Procedures](index=23&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of September 28, 2019, with an unqualified opinion from Grant Thornton LLP - Management concluded that the company's disclosure controls and procedures were effective as of the fiscal year-end, September 28, 2019[229](index=229&type=chunk) - Based on an assessment using the COSO 2013 framework, management believes the company's internal control over financial reporting was effective as of September 28, 2019[234](index=234&type=chunk) [Part III](index=24&type=section&id=PART%20III) Part III outlines the company's directors, executive officers, corporate governance practices, and security ownership [Item 10. Directors, Executive Officers and Corporate Governance](index=24&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) This section lists the company's executive officers, including founder Gerald B. Shreiber as Chairman, President, and CEO, with further details on directors and governance incorporated by reference from the proxy statement Executive Officers | Name | Age | Position | | :--- | :--- | :--- | | Gerald B. Shreiber | 77 | Chairman of the Board, President, Chief Executive Officer and Director | | Dennis G. Moore | 63 | Senior Vice President, Chief Financial Officer Treasurer and Director | | Robert M. Radano | 70 | Senior Vice President,Sales and Chief Operating Officer | | Dan Fachner | 59 | President of The ICEE Company Subsidiary | | Gerard G. Law | 45 | Senior Vice President and Assistant to the President | | Robert J. Pape | 62 | Senior Vice President Sales | [Item 12. Security Ownership Of Certain Beneficial Owners And Management And Related Stockholder Matters](index=25&type=section&id=Item%2012.%20Security%20Ownership%20Of%20Certain%20Beneficial%20Owners%20And%20Management%20And%20Related%20Stockholder%20Matters) As of September 28, 2019, **802,000** securities were to be issued upon the exercise of outstanding options under equity compensation plans, with a weighted-average exercise price of **$128.25**, and **916,000** additional securities remained available for future issuance Equity Compensation Plan Information (as of September 28, 2019) | Plan Category | Securities to be issued upon exercise | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 802,000 | $128.25 | 916,000 | [Part IV](index=25&type=section&id=PART%20IV) Part IV lists the exhibits and financial statement schedules, including the consolidated financial statements and notes [Item 15. Exhibits, Financial Statement Schedules](index=25&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists the documents filed as part of the Form 10-K report, including consolidated financial statements, schedules, and various exhibits - This section provides a list of all financial statements, schedules, and exhibits filed with the Form 10-K, including governance documents, material contracts, and certifications[254](index=254&type=chunk)[256](index=256&type=chunk) [Financial Statements and Notes](index=27&type=section&id=Financial%20Statements%20and%20Notes) The audited consolidated financial statements for fiscal years 2017-2019 are presented, showing total assets grew to **$1.019 billion** in 2019 from **$932 million** in 2018, with detailed disclosures on accounting policies and segment performance [Consolidated Balance Sheets](index=29&type=section&id=Consolidated%20Balance%20Sheets) As of September 28, 2019, total assets were **$1.019 billion**, driven by a significant increase in cash and cash equivalents to **$192.4 million**, with total liabilities at **$185.6 million** and stockholders' equity at **$833.8 million** Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 28, 2019 | Sep 29, 2018 | | :--- | :--- | :--- | | **Total Current Assets** | **$506,357** | **$382,797** | | Cash and cash equivalents | $192,395 | $111,479 | | **Total Assets** | **$1,019,339** | **$932,013** | | **Total Current Liabilities** | **$121,234** | **$117,899** | | **Total Liabilities** | **$185,618** | **$172,922** | | **Total Stockholders' Equity** | **$833,751** | **$759,091** | [Consolidated Statements of Earnings](index=30&type=section&id=Consolidated%20Statements%20of%20Earnings) For fiscal year 2019, net sales were **$1.186 billion**, with operating income rising to **$117.0 million**, but net earnings decreased to **$94.8 million** or **$5.00** per diluted share, primarily due to differences in income tax provisions Consolidated Statement of Earnings (in thousands, except per share) | Metric | FY 2019 (52 wks) | FY 2018 (52 wks) | FY 2017 (53 wks) | | :--- | :--- | :--- | :--- | | Net Sales | $1,186,487 | $1,138,265 | $1,084,224 | | Gross Profit | $350,401 | $336,286 | $331,023 | | Operating Income | $116,956 | $110,775 | $118,107 | | Net Earnings | $94,819 | $103,596 | $79,174 | | Earnings per diluted share | $5.00 | $5.51 | $4.21 | [Consolidated Statements of Cash Flows](index=32&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For fiscal year 2019, net cash provided by operating activities was **$147.5 million**, with net cash used in investing activities at **$43.4 million** and financing activities at **$22.8 million**, resulting in an **$80.9 million** net increase in cash and cash equivalents Consolidated Statement of Cash Flows (in thousands) | Cash Flow Activity | FY 2019 | FY 2018 | FY 2017 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $147,499 | $123,367 | $125,349 | | Net cash used in investing activities | ($43,363) | ($73,139) | ($135,319) | | Net cash used in financing activities | ($22,826) | ($27,336) | ($42,213) | | Net increase (decrease) in cash | $80,916 | $20,517 | ($49,690) | | Cash at end of year | $192,395 | $111,479 | $90,962 | [Note O – Segment Reporting](index=53&type=section&id=Note%20O%20%E2%80%93%20Segment%20Reporting) In fiscal 2019, the Food Service segment was the largest contributor to sales with **$761.6 million** and operating income at **$78.1 million**, followed by Frozen Beverages and Retail Supermarket segments Segment Performance for Fiscal Year 2019 (in thousands) | Segment | Sales to External Customers | Operating Income | Capital Expenditures | Total Assets | | :--- | :--- | :--- | :--- | :--- | | Food Service | $761,603 | $78,130 | $29,197 | $772,777 | | Retail Supermarket | $119,276 | $8,876 | $1,979 | $22,673 | | Frozen Beverages | $305,608 | $29,950 | $25,952 | $223,889 | | **Total** | **$1,186,487** | **$116,956** | **$57,128** | **$1,019,339** |