Note 9

9 Months Ended

Jun. 29, 2013

Segment Reporting Disclosure [Text Block]

Segment Reporting Disclosure [Text Block]

Note 9            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 and theme 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 and PARROT ICE 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 29, 2013			June 23, 2012			June 29, 2013			June 23, 2012
	(unaudited)
				(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	36,136		$	29,579		$	104,067		$	82,592
Frozen juices and ices		16,468			19,680			34,117			39,106
Churros		14,774			12,330			42,648			34,263
Handhelds		6,806			7,249			20,058			21,242
Bakery		68,099			66,754			203,488			191,938
Other		2,939			2,872			6,424			6,716
	$	145,222		$	138,464		$	410,802		$	375,857
Retail Supermarket
Soft pretzels	$	8,576		$	7,635		$	27,200		$	24,242
Frozen juices and ices		18,226			17,629			33,694			34,204
Handhelds		4,995			5,193			16,425			16,861
Coupon redemption		(954	)		(857	)		(2,497	)		(2,183	)
Other		237			255			514			999
	$	31,080		$	29,855		$	75,336		$	74,123
Frozen Beverages
Beverages	$	40,996		$	41,238		$	91,476		$	91,616
Repair and maintenance service		13,833			12,386			38,385			35,875
Machines sales		5,035			3,711			12,028			9,646
Other		870			681			1,743			1,458
	$	60,734		$	58,016		$	143,632		$	138,595
Consolidated Sales	$	237,036		$	226,335		$	629,770		$	588,575
Depreciation and Amortization:
Food Service	$	4,943		$	4,342		$	14,169		$	12,746
Retail Supermarket		9			5			24			15
Frozen Beverages		3,671			3,452			10,682			10,143
	$	8,623		$	7,799		$	24,875		$	22,904
Operating Income:
Food Service	$	18,822		$	15,203		$	46,782		$	35,205
Retail Supermarket		2,883			4,115			6,857			7,597
Frozen Beverages		10,679			10,573			12,965			11,825
	$	32,384		$	29,891		$	66,604		$	54,627
Capital Expenditures:
Food Service	$	4,798		$	6,315		$	14,740		$	19,207
Retail Supermarket		-			-			-			-
Frozen Beverages		6,599			2,691			12,214			10,870
	$	11,397		$	9,006		$	26,954		$	30,077
Assets:
Food Service	$	478,203		$	441,785		$	478,203		$	441,785
Retail Supermarket		6,074			4,285			6,074			4,285
Frozen Beverages		155,360			147,389			155,360			147,389
	$	639,637		$	593,459		$	639,637		$	593,459