jjsf20210327

jjsf20210327_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 27, 2021

☐ 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

At April 23, 2021 there were 19,035,968 shares of the Registrant’s Common Stock outstanding.

INDEX

	Page
	Number
Part I. Financial Information

Item l. Consolidated Financial Statements

Consolidated Balance Sheets – March 27,2021 (unaudited) and September 26, 2020	3

Consolidated Statements of Earnings (unaudited) – Three and six months Ended March 27, 2021 and March 28, 2020	4

Consolidated Statements of Comprehensive Income (unaudited) – Three and six months Ended March 27, 2021 and March 28, 2020	5

Consolidated Statements of Changes In Stockholders’ Equity (unaudited) – Three and six months Ended March 27, 2021 and March 28, 2020	6

Consolidated Statements of Cash Flows (unaudited) – Six Months Ended March 27, 2021 and March 28, 2020	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

Item 6. Exhibits	31

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	March 27,
	2021			September 26,
	(unaudited)			2020
Assets
Current assets
Cash and cash equivalents	$	238,386		$	195,809
Marketable securities held to maturity		21,379			51,151
Accounts receivable, net		137,683			126,587
Inventories		115,590			108,923
Prepaid expenses and other		17,231			17,087
Total current assets		530,269			499,557

Property, plant and equipment, at cost
Land		2,494			2,494
Buildings		26,582			26,582
Plant machinery and equipment		337,763			330,168
Marketing equipment		248,461			250,914
Transportation equipment		9,942			9,966
Office equipment		34,186			33,878
Improvements		44,797			43,264
Construction in progress		23,484			19,995
Total Property, plant and equipment, at cost		727,709			717,261
Less accumulated depreciation and amortization		472,012			455,645
Property, plant and equipment, net		255,697			261,616

Other assets
Goodwill		121,833			121,833
Other intangible assets, net		80,305			81,622
Marketable securities held to maturity		7,580			16,927
Marketable securities available for sale		12,518			13,976
Operating lease right-of-use assets		53,994			58,110
Other		2,719			2,912
Total other assets		278,949			295,380
Total Assets	$	1,064,915		$	1,056,553

Liabilities and Stockholders' Equity
Current Liabilities
Current finance lease liabilities	$	288		$	349
Accounts payable		83,460			73,135
Accrued insurance liability		14,136			13,039
Accrued liabilities		7,272			7,420
Current operating lease liabilities		12,978			13,173
Accrued compensation expense		14,120			16,134
Dividends payable		10,943			10,876
Total current liabilities		143,197			134,126

Noncurrent finance lease liabilities		256			368
Noncurrent operating lease liabilities		43,609			47,688
Deferred income taxes		64,449			64,413
Other long-term liabilities		404			460

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 19,034,000 and 18,915,000 respectively		65,026			49,268
Accumulated other comprehensive loss		(13,839	)		(15,587	)
Retained Earnings		761,813			775,817
Total stockholders' equity		813,000			809,498
Total Liabilities and Stockholders' Equity	$	1,064,915		$	1,056,553

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 27,			March 28,			March 27,			March 28,
	2021			2020			2021			2020

Net Sales	$	256,178		$	272,042		$	497,175		$	554,939

Cost of goods sold		195,282			202,599			386,154			407,635
Gross Profit		60,896			69,443			111,021			147,304

Operating expenses
Marketing		19,192			23,848			36,493			46,580
Distribution		25,443			24,834			48,332			48,376
Administrative		9,216			10,174			18,656			19,792
Other general (income) expense		(185	)		(395	)		(268	)		(129	)
Total Operating Expenses		53,666			58,461			103,213			114,619

Operating Income		7,230			10,982			7,808			32,685

Other (expense)income
Investment(loss)income		579			(413	)		1,949			1,373
Interest (expense) & other		4			(27	)		(11	)		(53	)

Earnings before income taxes		7,813			10,542			9,746			34,005

Income taxes		1,752			3,233			1,907			9,637

NET EARNINGS	$	6,061		$	7,309		$	7,839		$	24,368

Earnings per diluted share	$	0.32		$	0.38		$	0.41		$	1.28

Weighted average number of diluted shares		19,130			19,014			19,081			19,079

Earnings per basic share	$	0.32		$	0.39		$	0.41		$	1.29

Weighted average number of basic shares		19,006			18,921			18,971			18,910

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)

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