J+J Snack Foods: Sales down 34% in Q3-2020

Pennsauken / NJ. (jj) J+J Snack Foods Corporation announced sales and earnings for the third quarter ended June 27, 2020. Sales decreased 34 percent to USD 214.6 million from USD 326.7 million in last year’s third quarter. A net loss of USD 12.6 million in this year’s quarter compared to net earnings of USD 30.9 million in last year’s quarter. Net loss per diluted share was USD .67 for the third quarter this year and net earnings per diluted share were USD 1.63 last year. Operating loss of USD 19.4 in the current quarter compared to operating income of USD 39.0 million in the year ago quarter.

For the nine months ended June 27, 2020, sales decreased 12 percent to USD 769.5 million from USD 874.6 million in last year’s nine months. Net earnings decreased to USD 11.7 million in the nine months from USD 68.8 million last year. Earnings per diluted share decreased to USD .62 from USD 3.64 last year. Operating income decreased 85 percent to USD 13.2 million this year from USD 85.9 million last year.

Operating loss for the third quarter this year and operating income for the nine months include the impact of plant shutdown impairment costs of USD 5.1 million.

The Company also said that sales for the last 5 weeks of the third quarter (its fiscal June) improved to being down approximately 24 percent from a year ago as parts of the economy that impact its operations began to open up. Approximately 2/3 of the Company’s sales are to venues and locations that have shut down or sharply curtailed their foodservice operations so the Company anticipates covid-19 will continue to have a negative impact on its business. As the Company has USD 270 million of cash and marketable securities on its balance sheet, up from USD 267 million at March 28, 2020, it does not expect to have any liquidity issues, nor does it anticipate a material amount of its assets would be impaired.

Dan Fachner, J+J’s President, commented, «Although we had an operating loss this quarter, we progressed nicely with each month improving from the prior month. Our Retail division was strong as that end of the business continues to outperform the previous year. Much of the Foodservice locations are slow to open but we continue to see improvement during our current quarter. We are monitoring and making necessary adjustments to operations and expenses both for the short term and for the longer term.»

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