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J & J Snack Foods Announces Down Earnings
PENNSAUKEN, N.J.-(Business Wire)-January 24, 2008 - J & J Snack Foods Corp. (NASDAQ:JJSF) today announced record sales but lower earnings for the first quarter ended December 29, 2007.
Sales increased 15% to $130.9 million from $114.1 million in last year's first quarter. Net earnings decreased 50% to $1.9 million in the current quarter from $3.8 million last year. Earnings per diluted share were $.10 for the first quarter compared to $.20 last year. Operating income decreased 55% to $2.3 million in the current quarter from $5.1 million in the year ago quarter.
Gerald B. Shreiber, J & J's President and Chief Executive Officer, commented, "The unprecedented escalation in commodity costs including both wheat and dairy impacted this quarter. Given the current environment and expected lack of substantial relief, this will continue to pressure earnings in the future. We are committed to managing our business for the long term and maintaining our market share and presence. We are gratified to have grown our sales by 15% during this difficult environment."
J & J Snack Foods Corp.'s principal products include SUPERPRETZEL, PRETZEL FILLERS and other soft pretzels, ICEE, SLUSH PUPPIE and ARCTIC BLAST frozen beverages, LUIGI'S, MAMA TISH'S, SHAPE UPS, MINUTE MAID* and BARQ'S** and CHILL*** frozen juice bars and ices, WHOLE FRUIT sorbet, FRUIT-A-FREEZE frozen fruit bars, MARY B'S biscuits and dumplings, DADDY RAY'S fig and fruit bars, TIO PEPE'S churros, THE FUNNEL CAKE FACTORY funnel cakes, and MRS. GOODCOOKIE, CAMDEN CREEK, COUNTRY HOME and READI-BAKE cookies. J & J has manufacturing facilities in Pennsauken, Bridgeport and Bellmawr, New Jersey; Scranton, Hatfield and Chambersburg, Pennsylvania; Carrollton, Texas; Atlanta, Georgia; Moscow Mills, Missouri; Pensacola, Florida and Vernon and Newport, California.
*MINUTE MAID is a registered trademark of The Coca-Cola Company.
**BARQ'S is a registered trademark of Barq's Inc.
***CHILL is a registered trademark of Wells Dairy, Inc. -0- *T Consolidated Statement of Operations ————————————————————- Three Months Ended ————————————————————- December 29, December 30, 2007 2006 —————————- —————————— (unaudited) (in thousands) Net sales $ 130,898 $114,142 Cost of goods sold 95,511 78,894 —————————- —————————— Gross profit 35,387 35,248 Operating expenses 33,051 30,113 —————————- —————————— Operating income 2,336 5,135 Other income 779 956 —————————- —————————— Earnings before income taxes 3,115 6,091 Income taxes 1,218 2,286 —————————- —————————— Net earnings $ 1,897 $ 3,805 =================== ==================== Earnings per diluted share $ .10 $ .20 Earnings per basic share $ .10 $ .21 Weighted average number of diluted shares 19,076 18,895 Weighted average number of basic shares 18,769 18,539 *T -0- *T Consolidated Balance Sheets ———————————————————— December 29, 2007 September 29, 2007 —————————- —————————— (unaudited) (in thousands) Current assets $157,971 $165,364 Property, plant & equipment, net 94,218 93,222 Goodwill 60,314 60,314 Other intangibles, net 57,141 58,333 Other assets 3,013 3,055 —————————- —————————— Total $372,657 $380,288 =================== ==================== Current liabilities $ 55,399 $ 64,601 Long-term obligations under capital leases 451 474 Deferred income taxes 19,180 19,180 Other long term obligations 2,211 451 Stockholders' equity 295,416 295,582 —————————- —————————— Total $372,657 $380,288 =================== ==================== *T
The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof.
