EX-99.1 2 a5129829ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 Profits Increase as J & J Snack Foods Corp. Announces Record Quarter PENNSAUKEN, N.J.--(BUSINESS WIRE)--April 21, 2006--J & J Snack Foods Corp. (NASDAQ:JJSF) today announced record sales and earnings for its second quarter and six months ended March 25, 2006. Sales for the second quarter increased 13% to $112.0 million from $99.4 million in last year's second quarter. Net earnings increased 9% to $4.1 million from $3.8 million last year. Earnings per diluted share were $.22 for the March quarter compared to $.20 last year. Operating income increased 5% to $6.0 million this year from $5.7 million in the year ago period. Operating income in this year's quarter was impacted by $357,000 of share-based compensation expense (expensing of stock options) and net earnings were impacted by $250,000, or $.013 per diluted share. Excluding the impact of share-based compensation expense recognized this year and not last year, operating income increased 12% and net earnings increased 16%. For the six months ended March 25, 2006, sales increased 11% to $220.7 million from $197.9 million in last year's first half. Net earnings increased 14% to $7.1 million in the six months from $6.3 million last year. Earnings per diluted share were $.38 for the six months compared to $.34 last year. Operating income increased 9% to $10.2 million from $9.3 million in the year ago period. Operating income in this year's six months was impacted by $617,000 of share-based compensation expense (expensing of stock options) and net earnings were impacted by $422,000, or $.023 per diluted share. Excluding the impact of share-based compensation expense recognized this year and not last year, operating income increased 16% and net earnings increased 21%. Gerald B. Shreiber, J & J's President and Chief Executive Officer, commented, "We are reasonably pleased with our financial performance given the escalating increase in our raw materials, packaging and energy costs. Improvements in our food service and ICEE business contributed to our increased earnings." 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. ***CHILL is a registered trademark of Wells Dairy, Inc. Consolidated Statement of Operations ----------------------------------------------- Three Months Ended Six Months Ended ----------------------- ----------------------- March 25, March 26, March 25, March 26, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- (in thousands) Net sales $ 112,044 $ 99,350 $ 220,615 $ 197,871 Cost of goods sold 76,818 67,154 152,272 135,679 ----------- ----------- ----------- ----------- Gross profit 35,226 32,196 68,343 62,192 Operating expenses 29,232 26,503 58,152 52,845 ----------- ----------- ----------- ----------- Operating income 5,994 5,693 10,191 9,347 Other income 725 358 1,399 656 ----------- ----------- ----------- ----------- Earnings before income taxes 6,719 6,051 11,590 10,003 Income taxes 2,582 2,261 4,443 3,731 ----------- ----------- ----------- ----------- Net earnings $ 4,137 $ 3,790 $ 7,147 $ 6,272 =========== =========== =========== =========== Earnings per diluted share $ .22 $ .20 $ .38 $ .34 Earnings per basic share $ .23 $ .21 $ .39 $ .35 Weighted average number of diluted shares 18,811 18,581 18,754 18,526 Weighted average number of basic shares 18,383 18,165 18,356 18,114 Consolidated Balance Sheets ---------------------------- March 25, September 24, 2006 2005 ------------- ------------- (in thousands) Current assets $ 159,962 $ 154,233 Property, plant & equipment, net 88,640 89,045 Goodwill, net 54,122 53,622 Other intangibles, net 8,314 7,043 Other assets 2,161 1,981 ------------- ------------- Total $ 313,199 $ 305,924 ============= ============= Current liabilities 53,701 52,902 Deferred income taxes 17,987 17,987 Other long term obligations 743 273 Stockholders' equity 240,768 234,762 ------------- ------------- Total $ 313,199 $ 305,924 ============= ============= 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 Moore, CFO, 856-665-9533