jjsf20220326

jjsf20220326_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 March 26, 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

☐

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

☐

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

☒

At April 29, 2022 there were 19,174,920 shares of the Registrant’s Common Stock outstanding.

INDEX

	Page Number
Part I. Financial Information

Item l. Consolidated Financial Statements

Consolidated Balance Sheets – March 26, 2022 (unaudited) and September 25, 2021	3

Consolidated Statements of Earnings (unaudited) – Three and Six Months Ended March 26, 2022 and March 27, 2021	4

Consolidated Statements of Comprehensive Income (unaudited) – Three and Six Months Ended March 26, 2022 and March 27, 2021	5

Consolidated Statements of Changes In Stockholders’ Equity (unaudited) – Three and Six Months Ended March 26, 2022 and March 27, 2021	6

Consolidated Statements of Cash Flows (unaudited) – Six Months Ended March 26, 2022 and March 27, 2021	7

Notes to the Consolidated Financial Statements (unaudited)	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Item 3. Quantitative and Qualitative Disclosures About Market Risk	30

Item 4. Controls and Procedures	30

Part II. Other Information	31

Item 6. Exhibits	31

J & J SNACK FOODS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

	March 26,
	2022			September 25,
	(unaudited)			2021
Assets
Current assets
Cash and cash equivalents	$	221,017		$	283,192
Marketable securities held to maturity		4,530			7,980
Accounts receivable, net		187,933			162,939
Inventories		158,991			123,160
Prepaid expenses and other		11,805			7,498
Total current assets		584,276			584,769

Property, plant and equipment, at cost
Land		2,494			2,494
Buildings		26,582			26,582
Plant machinery and equipment		340,534			343,716
Marketing equipment		263,494			258,624
Transportation equipment		10,912			10,315
Office equipment		44,641			34,648
Improvements		48,073			45,578
Construction in progress		45,418			35,285
Total Property, plant and equipment, at cost		782,148			757,242
Less accumulated depreciation and amortization		504,249			490,055
Property, plant and equipment, net		277,899			267,187

Other assets
Goodwill		121,833			121,833
Other intangible assets, net		76,599			77,776
Marketable securities held to maturity		-			4,047
Marketable securities available for sale		5,951			10,084
Operating lease right-of-use assets		53,892			54,555
Other		2,878			1,968
Total other assets		261,153			270,263
Total Assets	$	1,123,328		$	1,122,219

Liabilities and Stockholders' Equity
Current Liabilities
Current finance lease liabilities	$	127		$	182
Accounts payable		101,238			96,789
Accrued insurance liability		15,525			16,260
Accrued liabilities		6,456			10,955
Current operating lease liabilities		13,747			13,395
Accrued compensation expense		16,487			17,968
Dividends payable		12,136			12,080
Total current liabilities		165,716			167,629

Noncurrent finance lease liabilities		336			392
Noncurrent operating lease liabilities		45,501			46,557
Deferred income taxes		61,339			61,578
Other long-term liabilities		455			409

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 19,173,000 and 19,084,000 respectively		87,688			73,597
Accumulated other comprehensive loss		(13,281	)		(13,383	)
Retained Earnings		775,574			785,440
Total stockholders' equity		849,981			845,654
Total Liabilities and Stockholders' Equity	$	1,123,328		$	1,122,219

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						Six Months Ended
	March 26,			March 27,			March 26,			March 27,
	2022			2021			2022			2021

Net sales	$	281,513		$	256,178		$	600,003		$	497,175

Cost of goods sold		216,165			195,282			455,280			386,154
Gross profit		65,348			60,896			144,723			111,021

Operating expenses
Marketing		21,036			19,192			41,943			36,493
Distribution		28,349			25,443			61,664			48,332
Administrative		11,719			9,216			22,088			18,656
Other general expense		156			(185	)		95			(268	)
Total operating expenses		61,260			53,666			125,790			103,213

Operating income		4,088			7,230			18,933			7,808

Other income (expense)
Investment income		160			579			431			1,949
Interest expense & other		(57	)		4			(75	)		(11	)

Earnings before income taxes		4,191			7,813			19,289			9,746

Income taxes		920			1,752			4,927			1,907

NET EARNINGS	$	3,271		$	6,061		$	14,362		$	7,839

Earnings per diluted share	$	0.17		$	0.32		$	0.75		$	0.41

Weighted average number of diluted shares		19,206			19,130			19,180			19,081

Earnings per basic share	$	0.17		$	0.32		$	0.75		$	0.41

Weighted average number of basic shares		19,134			19,006			19,110			18,971

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					Six months ended
	March 26,		March 27,			March 26,		March 27,
	2022		2021			2022		2021

Net earnings	$	3,271	$	6,061		$	14,362	$	7,839

Foreign currency translation adjustments		546		(531	)		102		1,748
Total other comprehensive income (loss), net of tax		546		(531	)		102		1,748

Comprehensive income	$	3,817	$	5,530		$	14,464	$	9,587

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 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	$	(13,827	)	$	784,439		$	845,998
Issuance of common stock upon exercise of stock options		76		10,012		-			-			10,012
Issuance of common stock for employee stock purchase plan		8		1,023		-			-			1,023
Foreign currency translation adjustment		-		-		546			-			546
Dividends declared		-		-		-			(12,136	)		(12,136	)
Share-based compensation		-		1,267		-			-			1,267
Net earnings		-		-		-			3,271			3,271

Balance at March 26, 2022		19,173	$	87,688	$	(13,281	)	$	775,574		$	849,981

					Accumulated
					Other
	Common Stock				Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total

Balance as September 26, 2020		18,915	$	49,268	$	(15,587	)	$	775,817		$	809,498
Issuance of common stock upon exercise of stock options		41		4,390		-			-			4,390
Foreign currency translation adjustment		-		-		2,279			-			2,279
Dividends declared		-		-		-			(10,900	)		(10,900	)
Share-based compensation		-		1,244		-			-			1,244
Net earnings		-		-

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