J & J Snack Foods Corp. (NASDAQ:JJSF) Q1 2022 Earnings Conference Call February 1, 2022 10:00 AM ET Company Participants Norberto Aja - Investor Relations Dan Fachner - Chief Executive Officer Ken Plunk - Chief Financial Officer Lynwood Mallard - Chief Marketing Officer Conference Call Participants Rob Dickerson - Jefferies Todd Brooks - CL King & Associates Ryan Bell - Consumer Edge Research Robert Costello - Asset Management Inc. Disclaimer*: This transcript is designed to be used alongside the freely ava ...

K.COI Y R S E 0 A A N N U A L R E P O R T 2 Traded Ticker "JJSF" on Nasdaq Selling in national and international markets foodservi frozen reta Three core business groups Preparing for future innovation and success Our growing portfolio of product include soft pretzels, frozen beverages, frozen juice treats and desserts, stuffed sandwiches, churros, fruit pies, funnel cakes, cookies and bakery goods, and other snack foods and drinks. Consumers can enjoy these tasty products in a variety of settings where peo ...

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].