Note 10

6 Months Ended

Jun. 23, 2012

Segment Reporting Disclosure [Text Block]

Note 10          We principally sell our products to the food service and retail supermarket industries.  Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements.  We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Makers.

We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments.  Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income (loss). These segments are described below.

Food Service

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods.  Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure andtheme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions.  Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

Retail Supermarkets

The primary products sold by the retail supermarket segment are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars, WHOLE FRUIT Sorbet, ICEE Squeeze-Up Tubes, dough enrobed handheld products and TIO PEPE’S Churros.  Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

We sell frozen beverages and related products to the food service industry primarily under the names ICEE, SLUSH PUPPIE, PARROT ICE and ARCTIC BLAST in the United States, Mexico and Canada.  We also provide repair and maintenance service to customers for customers’ owned equipment.

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports 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. Information regarding the operations in these three reportable segments is as follows:

	Three months ended						Nine months ended
	June 23, 2012			June 25, 2011			June 23, 2012			June 25, 2011
	(in thousands)
	(unaudited)
Sales to External Customers:
Food Service
Soft pretzels	$	29,579		$	26,686		$	82,592		$	76,342
Frozen juices and ices		19,680			17,176			39,106			35,904
Churros		12,330			11,004			34,263			31,258
Handhelds		7,249			2,835			21,242			2,835
Bakery		66,754			58,080			191,938			173,209
Other		2,872			5,598			6,716			14,929
	$	138,464		$	121,379		$	375,857		$	334,477
Retail Supermarket
Soft pretzels	$	7,635		$	7,524		$	24,242		$	23,972
Frozen juices and ices		17,629			17,943			34,204			33,419
Handhelds		5,193			2,807			16,861			2,807
Coupon redemption		(857	)		(940	)		(2,183	)		(2,264	)
Other		255			506			999			1,216
	$	29,855		$	27,840		$	74,123		$	59,150
Frozen Beverages
Beverages	$	41,238		$	41,260		$	91,616		$	89,789
Repair and maintenance service		12,386			11,078			35,875			30,831
Machines sales		3,711			4,071			9,646			8,812
Other		681			700			1,458			1,632
	$	58,016		$	57,109		$	138,595		$	131,064
Consolidated Sales	$	226,335		$	206,328		$	588,575		$	524,691
Depreciation and Amortization:
Food Service	$	4,342		$	4,197		$	12,746		$	12,700
Retail Supermarket		5			-			15			-
Frozen Beverages		3,452			3,324			10,143			9,962
	$	7,799		$	7,521		$	22,904		$	22,662
Operating Income:
Food Service	$	15,203		$	13,875		$	35,205		$	36,795
Retail Supermarket		4,115			3,545			7,597			7,677
Frozen Beverages		10,573			9,641			11,825			7,516
	$	29,891		$	27,061		$	54,627		$	51,988
Capital Expenditures:
Food Service	$	6,315		$	5,130		$	19,207		$	10,357
Retail Supermarket		-			-			-			-
Frozen Beverages		2,691			4,322			10,870			9,712
	$	9,006		$	9,452		$	30,077		$	20,069
Assets:
Food Service	$	441,785		$	389,042		$	441,785		$	389,042
Retail Supermarket		4,285			3,587			4,285			3,587
Frozen Beverages		147,389			145,317			147,389			145,317
	$	593,459		$	537,946		$	593,459		$	537,946