jjsf20221224

jjsf20221224_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the period ended December 24, 2022

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 0-14616

J&J SNACK FOODS CORP.

(Exact name of registrant as specified in its charter)

New Jersey	22-1935537
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

6000 Central Highway, Pennsauken, New Jersey 08109

(Address of principal executive offices)

Telephone (856) 665-9533

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, no par value	JJSF	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer ☒	Accelerated filer ☐

Non-accelerated filer ☐
	Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

As of January 31, 2023 there were 19,229,330 shares of the Registrant’s Common Stock outstanding.

INDEX

		Page Number
Part I.	Financial Information

Item l.	Consolidated Financial Statements

Consolidated Balance Sheets – December 24, 2022 (unaudited) and September 24, 2022		3

Consolidated Statements of Earnings (unaudited) – Three Months Ended December 24, 2022 and December 25, 2021		4

Consolidated Statements of Comprehensive Income (unaudited) – Three Months Ended December 24, 2022 and December 25, 2021		5

Consolidated Statements of Changes In Stockholders’ Equity (unaudited) – Three Months Ended December 24, 2022 and December 25, 2021		6

Consolidated Statements of Cash Flows (unaudited) – Three Months Ended December 24, 2022 and December 25, 2021		7

Notes to the Consolidated Financial Statements (unaudited)		8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	35

Part II.	Other Information

Item 6.	Exhibits	35

PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	December 24,
	2022			September 24,
	(unaudited)			2022
Assets
Current assets
Cash and cash equivalents	$	54,866		$	35,181
Marketable securities held to maturity		2,008			4,011
Accounts receivable, net		187,321			208,178
Inventories		182,642			180,473
Prepaid expenses and other		14,473			16,794
Total current assets		441,310			444,637

Property, plant and equipment, at cost
Land		3,714			3,714
Buildings		34,232			34,232
Plant machinery and equipment		384,749			374,566
Marketing equipment		280,172			274,904
Transportation equipment		12,306			11,685
Office equipment		46,073			45,865
Improvements		49,544			49,331
Construction in progress		80,453			65,753
Total Property, plant and equipment, at cost		891,243			860,050
Less accumulated depreciation and amortization		537,873			524,683
Property, plant and equipment, net		353,370			335,367

Other assets
Goodwill		184,420			184,420
Other intangible assets, net		190,027			191,732
Marketable securities available for sale		4,371			5,708
Operating lease right-of-use assets		50,063			51,137
Other		3,987			3,965
Total other assets		432,868			436,962
Total Assets	$	1,227,548		$	1,216,966

Liabilities and Stockholders' Equity
Current Liabilities
Current finance lease liabilities	$	128		$	124
Accounts payable		91,610			108,146
Accrued insurance liability		16,014			15,678
Accrued liabilities		9,642			9,214
Current operating lease liabilities		13,219			13,524
Accrued compensation expense		16,104			21,700
Dividends payable		13,461			13,453
Total current liabilities		160,178			181,839

Long-term debt		92,000			55,000
Noncurrent finance lease liabilities		303			254
Noncurrent operating lease liabilities		41,883			42,660
Deferred income taxes		69,873			70,407
Other long-term liabilities		3,575			3,637

Stockholders' Equity
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued		-			-
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 19,229,000 and 19,219,000 respectively		96,550			94,026
Accumulated other comprehensive loss		(12,842	)		(13,713	)
Retained Earnings		776,028			782,856
Total stockholders' equity		859,736			863,169
Total Liabilities and Stockholders' Equity	$	1,227,548		$	1,216,966

The accompanying notes are an integral part of these statements.

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(in thousands, except per share amounts)

	Three months ended
	December 24,			December 25,
	2022			2021

Net Sales	$	351,343		$	318,490

Cost of goods sold		260,488			239,115
Gross Profit		90,855			79,375

Operating expenses
Marketing		23,699			20,907
Distribution		42,049			33,315
Administrative		16,391			10,369
Other general (income)		(612	)		(61	)
Total Operating Expenses		81,527			64,530

Operating Income		9,328			14,845

Other income (expense)
Investment income		685			271
Interest expense		(1,049	)		(18	)

Earnings before income taxes		8,964			15,098

Income tax expense		2,331			4,007

NET EARNINGS	$	6,633		$	11,091

Earnings per diluted share	$	0.34		$	0.58

Weighted average number of diluted shares		19,274			19,153

Earnings per basic share	$	0.35		$	0.58

Weighted average number of basic shares		19,222			19,085

The accompanying notes are an integral part of these statements.

J&J SNACK FOODS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)

	Three months ended
	December 24,		December 25,
	2022		2021

Net Earnings	$	6,633	$	11,091

Foreign currency translation adjustments		871		(444	)
Total Other Comprehensive Income (Loss)		871		(444	)

Comprehensive Income	$	7,504	$	10,647

The accompanying notes are an integral part of these statements.

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(in thousands)

					Accumulated
					Other
	Common Stock				Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total

Balance as September 24, 2022		19,219	$	94,026	$	(13,713	)	$	782,856		$	863,169
Issuance of common stock upon exercise of stock options		10		1,285		-			-			1,285
Foreign currency translation adjustment		-		-		871			-			871
Dividends declared		-		-		-			(13,461	)		(13,461	)
Share-based compensation		-		1,239		-			-			1,239
Net earnings		-		-		-			6,633			6,633

Balance at December 24, 2022		19,229	$	96,550	$	(12,842	)	$	776,028		$	859,736

					Accumulated
					Other
	Common Stock				Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total

Balance as September 25, 2021		19,084	$	73,597	$	(13,383	)	$	785,440		$	845,654
Issuance of common stock upon exercise of stock options		5		706		-			-			706
Foreign currency translation adjustment		-		-		(444	)		-			(444	)
Dividends declared		-		-		-			(12,092	)		(12,092	)
Share-based compensation		-		1,083		-			-			1,083
Net earnings		-		-		-			11,091			11,091

Balance at December 25, 2021		19,089	$	75,386	$	(

SEC Form 10-Q filed by J & J Snack Foods Corp.