J+J Snack Foods: Sales down 19 percent in Q4-2020

Pennsauken / NJ. (jj) J+J Snack Foods Corporation announced sales and earnings for its fourth quarter and year ended September 26, 2020. Sales for the fourth quarter this year decreased 19 percent to USD 252.5 million from USD 311.9 million in last year’s fourth quarter. For the year ended September 26, 2020, sales decreased 14 percent to USD 1.022 billion from USD 1.186 billion last year. Net earnings decreased to USD 6.6 million (USD 0.35 per diluted share) in this year’s fourth quarter compared to USD 26.1 million (USD 1.36 per diluted share) last year and for the year earnings decreased 81 percent to USD 18.3 (USD 0.96 per diluted share) from USD 94.8 million (USD 5.00 per diluted share). Net earnings for the quarter and year benefited from an adjustment to income tax expense related to state deferred taxes.

Operating income was USD 3.9 million in the fourth quarter, down from USD 31.1 million in last year’s quarter. For the year, operating income decreased 85 percent to USD 17.2 million from USD 117.0 million last year.

The Company also said that it has had sequential improvement from its third quarter operations in which sales were down 34 percent from the year ago third quarter and in which it had an operating loss of USD 19.4 million as parts of the economy that impact its operations continued to open up through the fourth quarter. Approximately 2/3 of the Company’s sales are to venues and locations that have shut down or sharply curtailed their foodservice operations during Covid-19 so the Company anticipates Covid-19 will continue to have a negative impact on its business. As the Company has USD 278 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, «Our business continues to recover from the pandemic that has affected our world. We experienced sustained growth in the Retail side of our business as well as improved sales as we closed the quarter in both Food Service and ICEE. The Company has also enjoyed some new business sales growth that will extend into this coming year. We feel a sense of recovery as we close our 2020 year and like our future growth opportunities but we continue to face the uncertainty that all of us face from prolonged Covid-19 impacts.»