J+J Snack Foods: Reports Q3-2018 Sales and Earnings

Pennsauken / NJ. (jj) J+J Snack Foods Corporation announced sales and earnings for the third quarter ended June 30, 2018. Sales increased 4 percent to USD 306.2 million from USD 295.4 million in last year’s third quarter. Net earnings increased 3 percent to USD 26.1 million in the current quarter from USD 25.3 million last year. Earnings per diluted share increased 4 percent to USD 1.39 for the third quarter from USD 1.34 last year. Operating income decreased 8 percent to USD 34.9 million in the current quarter from USD 37.8 million in the year ago quarter.

For the nine months ended June 30, 2018, sales increased 9 percent to USD 837.5 million from USD 767.5 million in last year’s nine months. Net earnings increased 46 percent to USD 80.2 million in the nine months from USD 54.8 million last year. Earnings per diluted share increased 47 percent to USD 4.27 from USD 2.91 last year. Operating income decreased 2 percent to USD 79.6 million this year from USD 81.2 million last year.

Net earnings for the current year quarter benefited from a USD 3.5 million, or USD 0.18 per diluted share, reduction in income taxes related primarily to the lower corporate tax rate enacted under the Tax Cuts and Jobs Act in December 2017. Our effective tax rate in the quarter decreased to 28.1 percent from 35.4 percent last year.

Net earnings for the current year nine months benefited from a USD 20.9 million, or USD 1.11 per diluted share, gain on the re-measurement of deferred tax liabilities and a USD 7.4 million, or USD 0.40 per diluted share, reduction in income taxes related primarily to the lower corporate tax rate enacted under the Tax Cuts and Jobs Act in December 2017. Net earnings were impacted by a USD 1.2 million, or USD .06 per diluted share, provision for the one-time repatriation tax required under the new tax law. Excluding the deferred tax gain and the one-time repatriation tax, our effective tax rate decreased to 28.4 percent from 35.0 percent in the prior year nine months reflecting the reduction in the federal statutory rate to 21 percent from 35 percent for the last three quarters of fiscal 2018. The gain on the re-measurement of deferred tax liabilities and the one-time repatriation tax are preliminary estimates.

Gerald B. Shreiber, J+J’s President and Chief Executive Officer, commented, «While our ICEE business continues to perform well and although we continue to be impacted by higher costs and other challenges throughout our businesses, we are determined to improve our operations and margins going forward».

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