J & J Snack Foods(JJSF)2025-05-08 20:31Financial Performance - Net sales decreased by $3.6 million, or 1.0%, to $356.1 million for the three months ended March 29, 2025, while increasing by $10.7 million, or 1.5%, to $718.7 million for the six months ended March 29, 2025[118][122]. - Gross profit decreased by $12.5 million, or 11.6%, to $95.7 million for the three months ended March 29, 2025, and by $13.2 million, or 6.5%, to $189.6 million for the six months ended March 29, 2025[118][123][124]. - Operating income decreased by $11.9 million, or 66.4%, to $6.0 million for the three months ended March 29, 2025, and by $15.3 million, or 55.6%, to $12.3 million for the six months ended March 29, 2025[118][130][131]. - Net earnings decreased by $8.5 million, or 63.8%, for the three months ended March 29, 2025, and by $10.6 million, or 51.6%, for the six months ended March 29, 2025[130][131]. - Operating expenses decreased by $0.7 million, or 0.7%, to $89.7 million for the three months ended March 29, 2025, while increasing by $2.1 million, or 1.2%, to $177.3 million for the six months ended March 29, 2025[125][126]. - Investment income increased by $0.2 million to $1.7 million for the six months ended March 29, 2025[127]. - Operating income for the Food Service segment decreased by 84.3% to $1.2 million for the three months ended March 29, 2025, down from $7.9 million in the prior year[134]. - Operating income for the Retail Supermarket segment decreased by 45.8% to $2.8 million for the three months ended March 29, 2025[141]. - Operating income for the Food Service segment decreased by 79.1% to $2.9 million for the six months ended March 29, 2025[140]. - Operating income in the Frozen Beverage segment decreased by $2.9 million to $2.0 million in the quarter, primarily due to weak beverage sales and foreign exchange headwinds[148]. - Operating income for the six months ended March 29, 2025, decreased by $1.9 million to $6.2 million, impacted by headwinds in the fiscal second quarter[150]. Sales Performance - Total sales for the three months ended March 29, 2025, were $359.7 million, a decrease of 1.0% compared to $356.1 million in the same period of 2024[134]. - Sales of soft pretzels in the Food Service segment decreased by 7.9% to $50.0 million for the three months ended March 29, 2025[135]. - Retail Supermarket sales increased by 1.8% to $53.8 million for the three months ended March 29, 2025, compared to $52.9 million in the same period of 2024[141]. - Sales of new products in the Food Service segment were approximately $2.8 million for the three months ended March 29, 2025, primarily driven by churros[136]. - Total sales for the six months ended March 29, 2025, were $718.7 million, an increase of 1.5% compared to $708.0 million in the same period of 2024[134]. - Frozen novelties sales in the Retail Supermarket segment increased by 14.7% to $27.1 million for the three months ended March 29, 2025[143]. - Sales of new products in retail supermarkets were approximately $1.5 million for the three months ended March 29, 2025, driven primarily by the launch of Dippin' Dots sundaes[143]. - Frozen Beverages sales to external customers decreased by $0.7 million, or 0.9%, in the three months ended March 29, 2025, with beverage-related sales down 7.1% to $41.5 million[147]. - For the six months ended March 29, 2025, Frozen beverage and related product sales increased by $2.4 million, or 1.6%, while beverage-related sales decreased by 0.5% to $86.2 million[149]. Tax and Compliance - The effective tax rate was 27.2% for both the three and six months ended March 29, 2025, compared to 26.6% in the prior year period[129]. - The company is in compliance with all financial covenants of the Credit Agreement as of March 29, 2025[159]. Investments and Cash Flow - Net cash provided by operating activities was $47.5 million for the six months ended March 29, 2025, compared to $61.7 million in the prior year[152]. - Cash flows from investing activities showed a net cash outflow of $37.9 million, primarily due to purchases of property, plant, and equipment totaling $38.5 million[153]. - The company repurchased 39,061 shares of common stock at an average price of $128.00 per share during the six months ended March 29, 2025[154]. - As of March 29, 2025, the company had $48.5 million in cash and cash equivalents and no long-term debt outstanding[156]. - The amount available under the Amended Credit Agreement was $212.7 million as of March 29, 2025, after accounting for $12.3 million in letters of credit outstanding[160]. Operational Developments - The company opened three regional distribution centers, projected to drive significant cost reductions in warehousing and distribution[119]. - Six new production lines were added, significantly expanding capacity for core products such as pretzels and churros[119]. - The company launched the Hola! Churros brand in fiscal year 2023 and expanded the SuperPretzel brand with Bavarian Sticks[119].