-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HlMkwnuB2CKdzcWK3xDplJzvaPg1Rk9rSng7F1wcOw0sP+VCrGZvmFPgCr7isKSr UAfaAMojZoTmGWae6lutnw== 0001157523-05-009758.txt : 20051107 0001157523-05-009758.hdr.sgml : 20051107 20051107095136 ACCESSION NUMBER: 0001157523-05-009758 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051107 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051107 DATE AS OF CHANGE: 20051107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: J&J SNACK FOODS CORP CENTRAL INDEX KEY: 0000785956 STANDARD INDUSTRIAL CLASSIFICATION: COOKIES & CRACKERS [2052] IRS NUMBER: 221935537 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14616 FILM NUMBER: 051182270 BUSINESS ADDRESS: STREET 1: 6000 CENTRAL HGWY CITY: PENNSAUKEN STATE: NJ ZIP: 08109 BUSINESS PHONE: 6096659533 MAIL ADDRESS: STREET 1: 6000 CENTRAL HIGHWAY CITY: PENNSAUKEN STATE: NJ ZIP: 08109 8-K 1 a5013489.txt J&J SNACK FOODS CORP. 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): November 7, 2005 ------------------------------------------------------------------ J & J SNACK FOODS CORP. ----------------------- (Exact name of registrant as specified in its charter) New Jersey 0-14616 22-1935537 - -------------------------------------------------------------------------------- (State or Other (Commission (I.R.S. Employer Jurisdiction of Organization) File Number) Identification No.) 6000 Central Highway, Pennsauken, NJ 08109 ------------------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (856) 665-9533 N/A --- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneouusly satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ( ) Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ( ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ( ) Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2(b)) ( ) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 1 ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITIONS On November 7, 2005, J & J Snack Foods Corp. issued a press release regarding its earnings for the fourth quarter of fiscal 2005 and for the year ended 2005. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Exhibit Number Description of Document 99.1 Press Release dated November 7, 2005 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. J & J SNACK FOODS CORP. By: /s/ Gerald B. Shreiber --- --- ------------------ Gerald B. Shreiber President /s/ Dennis G. Moore --- --------------- Dennis G. Moore Chief Financial Officer Date: November 7, 2005 3 EXHIBIT INDEX Exhibit Number Description 99.1 Press Release dated November 7, 2005 4 EX-99.1 2 a5013489ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Record Sales & Earnings Reported by J & J Snack Foods PENNSAUKEN, N.J.--(BUSINESS WIRE)--Nov. 7, 2005--J & J Snack Foods Corp. (NASDAQ:JJSF) today reported record sales and earnings for its 2005 fiscal year. Sales for the fiscal year ended September 24, 2005 increased 10% to $457.1 million from $416.6 million in the fiscal year ended September 25, 2004. Net earnings increased 15% to $26.0 million in fiscal 2005 from $22.7 million in fiscal 2004. On a per diluted share basis, earnings increased 13% to $2.80 from $2.48. Operating income increased 14% to $40.2 million this year from $35.2 million in the year ago period. For the fourth quarter ended September 24, 2005, sales increased 6% to $129.8 million from $122.5 million in the fourth quarter ended September 25, 2004. Net earnings increased 12% to $9.9 million in the current year quarter from $8.8 million. Earnings per diluted share were $1.06 this year compared to $.96 last year. Operating income increased 12% to $15.4 million from $13.7 million in the year ago period. Gerald B. Shreiber, J & J's President and Chief Executive Officer, commented, "In achieving our record year we benefited from solid sales in our 4th quarter and continued strong performance in our food service group. We also benefited from warm weather aiding our ICEE and frozen dessert product line sales. Our Company once again delivered consistent growth results despite the challenges impacting our product and distribution costs. Our management team and staff continue to perform in an exemplary fashion." 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* and BARQ'S** and CHILL frozen juice bars and ices, 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 and Vernon, (Los Angeles) California. * MINUTE MAID is a registered trademark of The Coca-Cola Company. ** BARQ'S is a registered trademark of Barq's Inc. Consolidated Statements of Operations -------------------------------------- Three Months Ended Fiscal Year Ended ------------------ ------------------ Sept. 24, Sept. 25, Sept. 24, Sept. 25, 2005 2004 2005 2004 ---- ---- ---- ---- (in thousands) Net sales $129,789 $122,477 $457,112 $416,588 Cost of goods sold 83,209 79,902 302,065 276,379 -------- -------- -------- -------- Gross profit 46,580 42,575 155,047 140,209 Operating expenses 31,215 28,856 114,798 105,017 -------- -------- -------- -------- Operating income 15,365 13,719 40,249 35,192 Other income & expense, net 513 188 1,553 453 -------- -------- -------- -------- Earnings before income taxes 15,878 13,907 41,802 35,645 Income taxes 5,986 5,069 15,759 12,935 -------- -------- -------- -------- Net earnings $ 9,892 $ 8,838 $ 26,043 $ 22,710 ======== ======== ======== ======== Earnings per diluted share $1.06 $.96 $2.80 $2.48 Earnings per basic share $1.08 $.98 $2.86 $2.55 Weighted average number of diluted shares 9,349 9,206 9,300 9,143 Weighted average number of basic shares 9,154 9,015 9,097 8,909 Consolidated Balance Sheets --------------------------- September 24, September 25, 2005 2004 ---- ---- (in thousands) Cash & cash equivalents $ 15,795 $ 19,600 Marketable securities available for sale 54,225 36,500 Other current assets 84,213 82,312 Property, plant & equipment, net 89,045 89,474 Goodwill 53,622 46,477 Other intangibles, net 7,043 1,804 Other assets 1,981 1,257 -------- -------- Total $305,924 $277,424 ======== ======== Current liabilities $ 52,902 $ 47,646 Deferred income taxes 17,987 19,153 Other long term obligations 273 529 Stockholders' equity 234,762 210,096 -------- -------- Total $305,924 $277,424 ======== ======== Consolidated Statements of Cash Flows ------------------------------------- Fiscal Year Ended ----------------- September 24, September 25, 2005 2004 ---- ---- (in thousands) Operating activities: Net earnings $26,043 $22,710 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization of fixed assets 23,215 23,170 Amortization of intangibles and deferred costs 1,047 898 Losses (gains) from disposals and write-downs of property & equipment 150 (33) (Decrease) increase in deferred income taxes (174) 2,394 Changes in assets and liabilities, net of effects from purchase of companies: Decrease (increase) in accounts receivable 1,048 (6,887) Increase in inventories (3,465) (2,423) Decrease in prepaid expenses and other 139 83 Increase in accounts payable and accrued liabilities 4,641 7,232 --------- --------- Net cash provided by operating activities 52,644 47,144 --------- --------- Investing activities: Purchases of property, plant and equipment (21,632) (21,644) Payments for purchase of companies (16,088) (12,668) Proceeds from investments held to maturity - 275 Purchase of available for sale securities (31,725) (45,500) Proceeds from sales of available for sale securities 14,000 9,000 Proceeds from disposal of property & equipment 819 1,628 Other (807) (35) --------- --------- Net cash used in investing activities (55,433) (68,944) --------- --------- Financing activities: Proceeds from issuance of common stock 2,241 3,810 Payments of cash dividend (3,400) - --------- --------- Net cash (used in) provided by financing activities (1,159) 3,810 Effect of exchange rate on cash and cash equivalents 143 (104) --------- --------- Net decrease in cash & cash equivalents (3,805) (18,094) Cash and cash equivalents at beginning of year 19,600 37,694 --------- --------- Cash and cash equivalents at end of year $15,795 $19,600 ========= ========= Segment Reporting ----------------- Fiscal Year End --------------- September 24, September 25, 2005 2004 ---- ---- (in thousands) Sales to external customers: Food Service $280,123 $250,523 Retail Supermarket 42,347 38,843 The Restaurant Group 5,409 7,623 Frozen Beverages 129,233 119,599 -------- -------- $457,112 $416,588 ======== ======== Depreciation and Amortization: Food Service $ 13,715 $ 13,504 Retail Supermarket - - The Restaurant Group 209 422 Frozen Beverages 10,338 10,142 -------- -------- $ 24,262 $ 24,068 ======== ======== Operating Income (Loss): Food Service $ 26,401 $ 21,266 Retail Supermarket 2,918 2,701 The Restaurant Group (314) (988) Frozen Beverages 11,244 12,213 -------- -------- $ 40,249 $ 35,192 ======== ======== Capital Expenditures: Food Service $ 9,832 $ 9,294 Retail Supermarket - - The Restaurant Group 45 22 Frozen Beverages 11,755 12,328 -------- -------- $ 21,632 $ 21,644 ======== ======== Assets: Food Service $209,734 $183,740 Retail Supermarket - - The Restaurant Group 1,010 1,461 Frozen Beverages 95,180 92,223 -------- -------- $305,924 $277,424 ======== ======== RESULTS OF OPERATIONS Fiscal 2005 (52 weeks) Compared to Fiscal 2004 (52 weeks) Net sales increased $40,524,000 or 10% to $457,112,000 in fiscal 2005 from $416,588,000 in fiscal 2004. Adjusting for sales related to the acquisitions of Country Home Bakers in 2004 and Snackworks, LLC in 2005, sales increased approximately 5%, or $22,000,000. We have four reportable segments, as disclosed in the notes to the consolidated financial statements: Food Service, Retail Supermarkets, The Restaurant Group and Frozen Beverages. The Chief Operating Decision Maker for Food Service, Retail Supermarkets and The Restaurant Group and the Chief Operating Decision Maker for Frozen Beverages monthly review and evaluate operating income and sales in order to assess performance and allocate resources to each individual segment. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Food Service Sales to food service customers increased $29,600,000 or 12% to $280,123,000 in fiscal 2005. Excluding Country Home Bakers and Snackworks acquisitions' related sales, sales increased $11,230,000, or 4%. Soft pretzel sales to the food service market increased $6,585,000, or 8%, to $87,308,000 for the 2005 year due primarily to the acquisition of Snackworks, LLC. Excluding Snackworks sales, pretzel sales increased $695,000, or less than 1%. Although there were increases and decreases in sales spread among many of our customers, two customers by themselves had increased sales of about $3,000,000. Sales of bakery products increased $16,048,000, or 14%, for the year. Excluding sales related to the acquisition of Country Home Bakers, sales of bakery products increased $3,568,000 or 3%. The increased sales were primarily to our private label and industrial business customers. Churro sales increased 12% to $14,777,000 with three customers accounting for more than one-half of the increased sales. Frozen juice bar and ices sales increased $2,682,000 or 7% to $39,693,000 for the year with sales to school food service customers accounting for virtually all of the increase. Sales of our funnel cake products increased $2,996,000 due to sales to one customer. The changes in sales throughout the food service segment were from a combination of volume changes and price increases. Retail Supermarkets Sales of products to retail supermarkets increased $3,504,000 or 9% to $42,347,000 in fiscal 2005. Total soft pretzel sales to retail supermarkets were $21,839,000, an increase of 19% from fiscal 2004. Approximately one-half of the increase was due to the expansion of PRETZELFILS to additional markets with the balance coming primarily from increased sales of our flagship SUPERPRETZEL brand in existing markets. Sales of frozen juice bars and ices increased $1,166,000 or 5% to $23,588,000 in 2005 from $22,422,000 in 2004 due to an extremely strong fourth quarter during which sales of LUIGI'S Real Italian Ice increased by approximately 50%. Coupon costs, a reduction of sales, were up $876,000, or 29%, for the year. The Restaurant Group Sales of our Restaurant Group, which operates BAVARIAN PRETZEL BAKERY and PRETZEL GOURMET retail stores in the Mid-Atlantic region, declined by 29%, primarily due to closings or licensings of 11 stores. At September 24, 2005, we had 19 stores open. Frozen Beverages Frozen beverage and related product sales increased $9,634,000 or 8% to $129,233,000 in fiscal 2005. Beverage sales alone were up 2% for the year with sales increases and decreases spread among our customer base. Service revenue increased $6,130,000, or 34%, to $24,238,000 for the year as we continue to emphasize growing this part of our business. Increased service revenue to one customer accounted for over 40% of the increase with no other customer accounting for more than 10% of the increase. Machine sales increased $2,568,000 to $13,257,000 for the year. Sales to two customers accounted for all of the machine sales increase. Consolidated Other than as commented upon above by segment, there are no material specific reasons for the reported sales increases or decreases. Sales levels can be impacted by the appeal of our products to our customers and consumers and their changing tastes, competitive and pricing pressures, sales execution, marketing programs, seasonal weather, customer stability and general economic conditions. Gross profit as a percent of sales, although at 34% of sales for both 2005 and 2004, increased .26 of a percentage point primarily because of price increases and efficiencies related to higher volume and a significant improvement in the gross profit of our restaurant group business. Total operating expenses increased $9,781,000 to $114,798,000 in fiscal 2005 but as a percentage of sales were essentially the same in both 2005 and 2004. Marketing expenses were 13% of sales in both fiscals 2005 and 2004, although they dropped about 6/10 of one percent of sales. The decrease in marketing expense as a percent of sales was the result of controlled spending and higher sales throughout all our business. Distribution expenses increased about 6/10 of one percent of sales to 9% of sales from 8% of sales in 2004. Distribution expenses increased as a percent of sales because of higher fuel and outside carrier costs. Administrative expenses were 4% in both years even though we incurred approximately $400,000 of external costs related to compliance with Sarbanes-Oxley. Other general expense of $430,000 in 2005 was an increase of $401,000 from 2004 which increase resulted primarily from costs relating to Hurricane Katrina. Operating income increased $5,057,000 or 14% to $40,249,000 in fiscal 2005 as a result of the aforementioned items. Operating income was impacted by approximately $700,000 of higher insurance costs compared to a year ago due to increased claims under our liability policies. Manufacturing plant utilities costs were higher by about $1,000,000 for the year compared to last year with about two-thirds of the increase coming in the second half of the year. We expect that higher utilities costs will have a significant impact on our 2006 operating results. Although commodity costs did not increase as they have in recent years, our expectations are increases will be significant in fiscal year 2006. Investment income increased by $1,123,000 to $1,689,000 due to an increase in the general level of interest rates and higher investable balances of cash and marketable securities. Interest expense and other increased $26,000 to $136,000 in 2005. The effective income tax rate increased to 38% in fiscal year 2005 from 36% in 2004 due to estimated increases in state tax payments and an increase in the rate applied to deferred tax liabilities. Net earnings increased $3,333,000 or 15% in fiscal 2005 to $26,043,000 or $2.80 per fully diluted share as a result of the aforementioned items. There are many factors which can impact our net earnings from year to year and in the long run, among which are the supply and cost of raw materials and labor, insurance costs, factors impacting sales as noted above, the continuing consolidation of our customers, our ability to manage our manufacturing, marketing and distribution activities, our ability to make and integrate acquisitions and changes in tax laws and interest rates. 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., Pennsauken Dennis G. Moore, 856-665-9533 -----END PRIVACY-ENHANCED MESSAGE-----