J & J Snack Foods(US:JJSF)2025-05-06 11:02Financial Performance - Net sales for the second quarter decreased by 1.0% to $356.1 million compared to the prior year quarter, primarily due to lower sales in the Frozen Beverage and Food Service segments [3]. - Gross profit fell from $108.2 million in the prior year quarter to $95.7 million, with gross margin declining from 30.1% to 26.9% [7]. - Operating income was $6.0 million, a decrease of 66% from $17.9 million in the prior year period [9]. - Net earnings dropped 64% to $4.8 million compared to $13.3 million in the prior year period [9]. - Adjusted EBITDA decreased by 33% to $26.2 million, down from $39.3 million in the prior year quarter [2]. - Net Earnings for Q2 2025 reached $4,824 million, compared to $13,329 million in Q2 2024, reflecting a decrease of approximately 64.2% [33]. - Adjusted EBITDA for the six months ended March 29, 2025, was $51,452 million, down from $69,523 million in the same period last year, a decline of about 26% [33]. - Adjusted Operating Income for Q2 2025 was $8,869 million, compared to $21,827 million in Q2 2024, representing a decrease of approximately 59.5% [33]. - Earnings per Diluted Share for Q2 2025 was $0.25, down from $0.69 in Q2 2024, a decline of about 63.8% [33]. - Adjusted Earnings per Diluted Share for the six months ended March 29, 2025, was $0.68, compared to $1.35 in the same period last year, a decrease of approximately 50.4% [33]. Segment Performance - Food Service segment sales decreased by 1.7% to $226.1 million, with churro sales declining by 18.7% due to the loss of limited-time-offer volumes [11]. - Retail Supermarket segment sales increased by 1.8% to $53.8 million, while Frozen Beverage segment sales decreased by 0.9% to $76.2 million [11]. - Sales of new products and added placements with new customers were approximately $6.5 million in the quarter, driven by churro-related products and new cookie distributions [15]. Cash Flow and Assets - Cash and cash equivalents at the end of the period were $48,514 thousand, a decrease of 33.8% from $73,394 thousand at the beginning of the period [29]. - The company reported a net cash provided by operating activities of $47,472 thousand, down 23% from $61,698 thousand in the same period last year [29]. - Total assets decreased slightly to $1,357,597 thousand from $1,365,101 thousand, a decline of approximately 0.3% [27]. Liabilities and Equity - The company’s total current liabilities increased to $182,192 thousand from $174,073 thousand, an increase of approximately 4.8% [27]. - The company’s retained earnings decreased to $815,323 thousand from $835,753 thousand, a decline of approximately 2.4% [27]. - The company reported a decrease in accounts receivable by $15,794 thousand, compared to a decrease of $20,110 thousand in the same period last year [29]. Capital Expenditures and Costs - Capital expenditures for the six months ended March 29, 2025, totaled $38,530 thousand, an increase of 5.1% compared to $36,626 thousand for the same period in 2024 [31]. - Strategic Business Transformation Costs incurred in Q2 2025 amounted to $2,307 million, while no such costs were reported in Q2 2024 [33]. - Restructuring Costs for the six months ended March 29, 2025, totaled $260 million, with no costs reported in the same period last year [33]. - Non-recurring Legal Expenses for Q2 2025 were $591 million, with no such expenses reported in Q2 2024 [33]. Depreciation and Interest - Depreciation and Amortization for the six months ended March 29, 2025, was $35,510 million, compared to $34,192 million in the same period last year, an increase of approximately 3.9% [33]. - Interest Expense for Q2 2025 was $85 million, down from $429 million in Q2 2024, a decrease of about 80.2% [33]. Market Outlook - North American box office sales are projected to rebound by 30% or more during the fiscal third quarter, following a 10% decline in the second quarter [5]. - The company repurchased approximately 39,000 shares for about $5.0 million, reflecting confidence in long-term business value [6].