J & J Snack Foods(JJSF) - 2025 Q1 - Quarterly Results

Financial Performance - J & J Snack Foods reported a 4.1% increase in net sales to $362.6 million for Q1 2025, up from $348.3 million in Q1 2024[3] - Gross profit margin decreased to 25.9% in Q1 2025 from 27.2% in Q1 2024, reflecting a less favorable sales mix and input cost inflation[9] - Operating income fell by 35.6% to $6.2 million in Q1 2025, compared to $9.7 million in the prior year[3] - Net earnings decreased by 29.4% to $5.1 million in Q1 2025, down from $7.3 million in Q1 2024[3] - Adjusted EBITDA for the three months ended December 28, 2024, was $25,254,000, down 16.4% from $30,178,000 in the prior year[37] - Total operating income for the three months ended December 28, 2024, was $6,239,000, a decrease of 35.3% from $9,683,000 in the same period of 2023[37] Segment Performance - Food Services segment sales increased by 4.5% to $238.9 million in Q1 2025, driven by strong sales in soft pretzels and frozen novelties[16] - Retail Supermarket segment sales rose by 2.2% to $44.7 million in Q1 2025, with new product placements contributing approximately $2.3 million[16] - Frozen Beverage segment sales grew by 4.0% to $79.0 million, with beverage sales increasing by 6.4% driven by volume growth in the theater channel[16] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $73,562,000, compared to $50,020,000 at the end of the same period in 2023, representing a year-over-year increase of 47.1%[33] - The company reported a decrease in accounts receivable by $24,987,000, indicating improved cash flow management[33] - Total current assets decreased to $427,538,000 as of December 28, 2024, from $450,414,000 as of September 28, 2024, reflecting a decline of 5.1%[31] - The total assets as of December 28, 2024, were $1,346,787,000, an increase from $1,292,557,000 in the same period of the previous year, reflecting a growth of 4.2%[35] Shareholder Actions - The company announced a new $50 million stock repurchase authorization, effective for two years, reflecting confidence in long-term value[6] Expenses and Capital Expenditures - Total operating expenses were $87.7 million, representing 24.2% of sales, slightly down from 24.4% in Q1 2024[10] - Capital expenditures for the three months ended December 28, 2024, totaled $19,065,000, slightly down from $19,930,000 in the prior year[35] Retained Earnings - The company’s retained earnings decreased to $825,703,000 as of December 28, 2024, down from $835,753,000 as of September 28, 2024[31] Future Outlook - The company is implementing additional pricing actions in Q2 2025 to mitigate input cost inflation and improve profitability[5]