J & J Snack Foods(JJSF) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter net sales were $410.2 million, a decrease of 4% compared to the prior year quarter, while full-year net sales increased by 1% to $1,583.2 million[2]. - Fourth quarter operating income was $11.5 million, down 71% year-over-year, and adjusted operating income was $37.7 million, a decrease of 10%[2][8]. - Fourth quarter net earnings were $11.4 million, a decline of 62% from the previous year, with adjusted EBITDA at $57.4 million, down 4%[2][3]. - The gross profit for the fourth quarter was $130.2 million, reflecting a gross margin of 31.7%, slightly down from 31.8% in the prior year[6]. - Net sales for the quarter ended September 27, 2025, were $410,243,000, a decrease of 3.6% compared to $426,756,000 for the same quarter in 2024[25]. - Gross profit for the fiscal year ended September 27, 2025, was $469,882,000, down from $486,125,000 in 2024, reflecting a decline of 3.3%[25]. - Operating income for the quarter was $11,467,000, significantly lower than $39,842,000 in the prior year, representing a decrease of 71.2%[25]. - Net earnings for the fiscal year ended September 27, 2025, were $65,595,000, down 24.2% from $86,551,000 in 2024[25]. - Earnings per diluted share for the quarter were $0.58, compared to $1.52 in the same quarter last year, a decline of 61.8%[25]. - The company reported a total operating income of $84,326,000 for the fiscal year 2025, down from $117,545,000 in 2024, a decrease of 28.3%[25]. - For the quarter ended September 27, 2025, net earnings were $11,381 thousand, a decrease from $29,641 thousand in the same quarter of the previous year, representing a decline of approximately 61.6%[34]. - Adjusted EBITDA for the fiscal year ended September 27, 2025, was $180,857 thousand, down from $200,085 thousand in the previous fiscal year, reflecting a decrease of about 9.6%[34]. - Adjusted operating income for the quarter ended September 27, 2025, was $37,740 thousand, compared to $42,010 thousand in the same quarter of the previous year, indicating a decline of approximately 10.8%[35]. - Earnings per diluted share for the quarter ended September 27, 2025, were $0.58, down from $1.52 in the same quarter of the previous year, a decrease of about 61.8%[36]. - Adjusted earnings per diluted share for the fiscal year ended September 27, 2025, were $4.27, compared to $4.93 in the previous fiscal year, reflecting a decline of approximately 13.4%[37]. Operational Highlights - The company initiated a comprehensive business transformation program expected to generate at least $20 million in annualized operating income once fully implemented[4]. - Frozen Beverage segment sales decreased by 8.3% to $99.6 million, primarily due to lower theater volumes following the success of the Inside Out 2 movie last year[15]. - Retail Supermarket segment sales decreased by 8.1% to $51.4 million, while pretzel sales increased by 3.6% driven by growth in Bavarian varieties[15]. - New product sales and added placements with new customers contributed approximately $7.6 million in the quarter, driven by frozen novelties and churro-related products[15]. - The company incurred plant closure expenses of $24,073,000 during the fiscal year, impacting overall profitability[25]. - Strategic business transformation costs were recorded as $4,848 thousand for the fiscal year ended September 27, 2024, indicating ongoing investment in operational improvements[35]. - Integration costs for the fiscal year ended September 27, 2025, amounted to $427 thousand, reflecting the company's efforts in mergers and acquisitions[35]. Financial Position - The company reported $106 million in cash and no debt, positioning it well for sustainable growth and shareholder value creation[4]. - Total current assets increased to $478,332,000 as of September 27, 2025, from $450,414,000 a year earlier, marking a growth of 6.2%[27]. - Cash and cash equivalents at the end of the period rose to $105,893,000, up from $73,394,000, an increase of 44.4%[29]. - Total liabilities increased to $414,806,000 as of September 27, 2025, compared to $414,073,000 in the previous year, reflecting a slight increase of 0.2%[27]. - Depreciation and amortization expenses for the quarter ended September 27, 2025, were $19,165 thousand, an increase from $18,216 thousand in the same quarter of the previous year, representing a rise of about 5.2%[34]. - The company reported a net gain on the sale or disposal of assets of $171 thousand for the quarter ended September 27, 2025, compared to a gain of $34 thousand in the same quarter of the previous year[34].