EX-99 3 a4509792ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Record Sales & Earnings Reported by J & J Snack Foods PENNSAUKEN, N.J.--(BUSINESS WIRE)--Nov. 5, 2003--J & J Snack Foods Corp. (NASDAQ:JJSF) today reported record sales and earnings for its 2003 fiscal year. Sales for the fiscal year ended September 27, 2003 increased 3% to $364.6 million from $353.2 million in the fiscal year ended September 28, 2002. Net earnings increased 10% to $19.9 million in fiscal 2003 from $18.1 million in fiscal 2002. On a per diluted share basis, earnings increased 11% to $2.20 from $1.99. Operating income increased 9% to $30.8 million this year from $28.3 million in the year ago period. For the fourth quarter ended September 27, 2003, sales increased 3% to $103.4 million from $100.1 million in the fourth quarter ended September 28, 2002. Net earnings increased 6% to $7.9 million in the current year quarter from $7.4 million. Earnings per diluted share were $.88 this year compared to $.81 last year. Operating income increased 6% to $12.3 million from $11.5 million in the year ago period. Gerald B. Shreiber, J & J's President and Chief Executive Officer, commented, "Strong performances from our food service group, led by continued growth of our core and new soft pretzel products, aided the quarter and the year. Although we were impacted by poor weather conditions during the spring and summer, we were able to partially offset through expanded sales channels and new product offerings. Our company continues to strengthen its (product) leadership positions and anticipates continued positive performances through all of its major business groups. Our financial position remains strong and we are seeking growth opportunities through new product offerings and possible acquisitions." J & J Snack Foods Corp.'s principal products include SUPERPRETZEL, PRETZEL FILLERS and other soft pretzels, ICEE and ARCTIC BLAST frozen beverages, LUIGI'S, MAMA TISH'S, SHAPE UPS, MINUTE MAID(1) and BARQ'S(2) frozen juice bars and ices, TIO PEPE'S churros, THE FUNNEL CAKE FACTORY funnel cakes, and MRS. GOODCOOKIE and CAMDEN CREEK cookies. J & J has manufacturing facilities in Pennsauken, Bridgeport and Bellmawr, New Jersey; Scranton and Hatfield, Pennsylvania; Carrollton, Texas and Vernon (Los Angeles), California. (1) MINUTE MAID is a registered trademark of The Coca-Cola Company. (2) BARQ'S is a registered trademark of Barq's Inc. Consolidated Statement of Operations ------------------------------------ Three Months Ended Year Ended ------------------ ---------- Sept. 27, Sept. 28, Sept. 27, Sept. 28, 2003 2002 2003 2002 --------- --------- --------- --------- (in thousands) Net sales $103,386 $100,050 $364,567 $353,187 Cost of goods sold 65,865 64,223 239,722 233,730 -------- -------- -------- -------- Gross profit 37,521 35,827 124,845 119,457 Operating expenses 25,264 24,288 93,998 91,191 -------- -------- -------- -------- Operating income 12,257 11,539 30,847 28,266 Other income (deductions) 75 49 249 (253) -------- -------- -------- -------- Earnings before income taxes 12,332 11,588 31,096 28,013 Income taxes 4,440 4,151 11,194 9,900 -------- -------- -------- -------- Net earnings $ 7,892 $ 7,437 $ 19,902 $ 18,113 ======== ======== ======== ======== Earnings per diluted share $ .88 $ .81 $ 2.20 $ 1.99 Earnings per basic share $ .92 $ .84 $ 2.26 $ 2.07 Weighted average number of diluted shares 8,963 9,185 9,051 9,093 Weighted average number of basic shares 8,606 8,889 8,800 8,770 Consolidated Balance Sheets --------------------------- September 27, 2003 September 28, 2002 ------------------ ------------------ (in thousands) Current assets $ 100,405 $ 75,367 Property, plant & equipment, net 87,115 94,410 Goodwill 45,850 45,850 Other intangibles, net 1,231 1,539 Other assets 2,082 2,870 ------------ ------------ Total $ 236,683 $ 220,036 ============ ============ Current liabilities $ 40,058 $ 40,244 Deferred income taxes 13,374 10,806 Other long term obligations 687 277 Stockholders' equity 182,564 168,709 ------------ ------------ Total $ 236,683 $ 220,036 ============ ============ Consolidated Statements of Cash Flows ----------------------------- September 27, September 28, 2003 2002 ------------- ------------- (in thousands) Operating activities: Net earnings $ 19,902 $ 18,113 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization of fixed assets 24,234 30,252 Amortization of intangibles and deferred costs 729 734 (Gains) losses from disposals and write-downs of property & equipment (389) 255 Increase (decrease) in deferred income taxes 2,568 1,578 Changes in assets and liabilities, net of effects from purchase of companies: Increase in accounts receivable (285) (1,068) Increase in inventories (829) (207) Increase (decrease) in prepaid expenses and other (276) 125 Increase in accounts payable and accrued liabilities 711 1,301 -------- -------- Net cash provided by operating activities 46,365 51,083 -------- -------- Investing activities: Purchases of property, plant and equipment (19,292) (20,479) Proceeds from investments held to maturity 400 840 Proceeds from disposal of property and equipment 2,534 167 Other (144) (16) -------- -------- Net cash used in investing activities (16,502) (19,488) -------- -------- Financing activities: Proceeds from borrowings - 24,000 Proceeds from issuance of common stock 2,238 3,195 Payments to repurchase common stock (8,565) - Payments of long-term debt - (52,069) -------- -------- Net cash used in financing activities (6,327) (24,874) -------- -------- Net increase in cash & cash equivalents 23,536 6,721 Cash and cash equivalents at beginning of year 14,158 7,437 -------- -------- Cash and cash equivalents at end of year $ 37,694 $ 14,158 ======== ======== Segment Reporting ----------------- Fiscal Year End --------------- September 27, 2003 September 28, 2002 ------------------ ------------------ (in thousands) Sales to external customers: Food Service $ 200,528 $ 185,219 Retail Supermarket 39,702 41,366 The Restaurant Group 9,755 10,724 Frozen Beverages 114,582 115,878 ----------------- ----------------- $ 364,567 $ 353,187 ================= ================= Depreciation and Amortization: Food Service $ 13,098 $ 13,547 Retail Supermarket - - The Restaurant Group 558 682 Frozen Beverages 11,307 16,757 ----------------- ----------------- $ 24,963 $ 30,986 ================= ================= Operating Income (Loss): Food Service $ 17,804 $ 17,382 Retail Supermarket 2,144 1,936 The Restaurant Group (975) (915) Frozen Beverages 11,874 9,863 ----------------- ----------------- $ 30,847 $ 28,266 ================= ================= Capital Expenditures: Food Service $ 9,929 $ 11,418 Retail Supermarket - - The Restaurant Group 61 159 Frozen Beverages 9,302 8,902 ----------------- ----------------- $ 19,292 $ 20,479 ================= ================= Assets: Food Service $ 151,000 $ 129,702 Retail Supermarket - - The Restaurant Group 2,192 2,921 Frozen Beverages 83,491 87,413 ----------------- ----------------- $ 236,683 $ 220,036 ================= ================= 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. CONTACT: J & J Snack Foods Corp. Dennis G. Moore, 856-665-9533