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J+J Snack Foods: Reports Q4-2018 Sales and Earnings

Pennsauken / NJ. (jj) J+J Snack Foods Corporation announced sales and earnings for its fourth quarter and year ended September 29, 2018.

Because last year’s fourth quarter had 14 weeks compared to 13 weeks this year, sales for the fourth quarter (13 weeks) this year decreased 5 percent to USD 300.7 million from USD 316.7 million in last year’s fourth quarter (14 weeks). For the year ended September 29, 2018 (52 weeks), sales increased 5 percent to USD 1.138 billion from USD 1.084 billion last year (53 weeks). Excluding sales from the extra week in 2017, sales increased approximately 3 percent for the fourth quarter and 7 percent for the year. Net earnings decreased 4 percent to USD 23.4 million ( USD 1.24 per diluted share) in this year’s fourth quarter compared to USD 24.3 million ( USD 1.29 per diluted share) last year and for the year earnings increased 31 percent to USD 103.6 million ( USD 5.51 per diluted share) from USD 79.2 million ( USD 4.21 per diluted share).

Operating income decreased 16 percent to USD 31.1 million this year from USD 36.9 million in the year ago fourth quarter. For the year, operating income decreased 6 percent to USD 110.8 million from USD 118.1 million last year.

Net earnings for the current year quarter benefited from a USD 1.7 million, or USD 0.09 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 for the current year quarter were negatively impacted by a USD 1.4 million, or USD 0.07 per diluted share, increase in income taxes because of changes to New Jersey tax regulations enacted in July 2018 requiring the re-measurement of deferred tax liabilities. Excluding the increase in taxes resulting from the change in New Jersey tax regulations, our effective tax rate decreased to 26.3 percent from 35.6 percent in the prior year reflecting the reduction in the federal statutory rate to 21 percent from 35 percent.

Net earnings for the current year 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 8.8 million, or USD 0.47 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 0.06 per diluted share, provision for the one-time repatriation tax required under the new federal tax law and by a USD 1.4 million, or USD 0.07 per diluted share, increase in income taxes because of the changes to New Jersey tax regulations. Excluding the deferred tax gain resulting from changes in federal law, the one-time repatriation tax and the increase in taxes resulting from the change in New Jersey tax regulations , our effective tax rate decreased to 27.8 percent from 35.2 percent in the prior year reflecting the reduction in the federal statutory rate to 21 percent from 35 percent for the last three quarters of fiscal 2018. The one-time repatriation tax is a preliminary estimate.

Gerald B. Shreiber, J+J’s President and Chief Executive Officer, commented, «While we have had good overall sales growth this past year, we were impacted by higher costs and other challenges throughout our businesses. As we have said previously, we are determined to improve our operations and margins going forward.»