(
X
)
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 24, 2011
|
( )
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
|
New Jersey | 22-1935537 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
6000 Central Highway | ||
Pennsauken, New Jersey | 08109 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, no par value | The NASDAQ Global Select Exchange |
Large accelerated filer ( ) | Accelerated filer (X) | ||
Non-accelerated filer ( ) | Smaller reporting company ( ) | ||
(Do not check if a smaller reporting company)
|
Page | ||
PART I
|
||
Item 1
|
Business
|
1 |
Item 1A
|
Risk Factors
|
6
|
Item 1B
|
Unresolved Staff Comments
|
8 |
Item 2
|
Properties
|
9
|
Item 3
|
Legal Proceedings
|
10
|
Item 4
|
[Removed and reserved]
|
10
|
PART II
|
||
Item 5
|
Market For Registrant’s Common Equity, Related
Stockholder Matters And Issuer Purchases Of
Equity Securities
|
11 |
Item 6
|
Selected Financial Data
|
12
|
Item 7
|
Management’s Discussion And Analysis Of
Financial Condition And Results Of Operations
|
13 |
Item 7A
|
Quantitative And Qualitative Disclosures
About Market Risk
|
23 |
Item 8
|
Financial Statements And Supplementary Data
|
24
|
Item 9
|
Changes In And Disagreements With Accountants
On Accounting And Financial Disclosure
|
24 |
Item 9A
|
Controls and Procedures
|
24
|
Item 9B
|
Other Information
|
25
|
PART III
|
||
Item 10
|
Directors, Executive Officers and Corporate
Governance
|
25 |
Item 11
|
Executive Compensation
|
26
|
Item 12
|
Security Ownership Of Certain Beneficial
Owners And Management And Related Stockholder
Matters
|
26 |
Item 13
|
Certain Relationships And Related Transactions,
and Director Independence
|
27 |
Item 14
|
Principal Accountant Fees and Services
|
27
|
PART IV
|
||
Item 15
|
Exhibits, Financial Statement Schedules
|
27
|
Item 1.
|
Business
|
*
|
BARQ’S is a registered trademark of Barq’s Inc.
|
**
|
MINUTE MAID is a registered trademark of the Coca-Cola Company
|
*
|
CINNAPRETZEL is a registered trademark of Cinnabon, Inc.
|
Item 1A.
|
Risk Factors
|
--
|
a classified Board of Directors;
|
--
|
the requirement that our shareholders may only remove
Directors for cause;
|
--
|
limitations on share holdings and voting of certain
persons;
|
--
|
special Director voting rights; and
|
--
|
the ability of the Board of Directors to consider the
interests of various constituencies, including our employees, customers, suppliers, creditors and the local communities in which we operate.
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
[Removed and reserved]
|
Item 5.
|
Market For Registrant’s Common Equity, Related Stockholder Matters And Issuer Purchases Of Equity
Securities
|
Common Stock Market Price
|
||||||||||||
Dividend
|
||||||||||||
High
|
Low
|
Declared
|
||||||||||
Fiscal 2010
|
||||||||||||
First quarter
|
$ | 44.00 | $ | 35.19 | $ | 0.1075 | ||||||
Second quarter
|
44.90 | 36.80 | 0.1075 | |||||||||
Third quarter
|
48.51 | 42.56 | 0.1075 | |||||||||
Fourth quarter
|
45.22 | 37.00 | 0.1075 | |||||||||
Fiscal 2011
|
||||||||||||
First quarter
|
$ | 49.88 | $ | 41.27 | $ | 0.1175 | ||||||
Second quarter
|
50.25 | 41.91 | 0.1175 | |||||||||
Third quarter
|
53.44 | 45.55 | 0.1175 | |||||||||
Fourth quarter
|
55.58 | 43.25 | 0.1175 |
Item 6.
|
Selected Financial Data
|
Fiscal year ended in September
|
||||||||||||||||||||
(In thousands except per share data)
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
Net Sales
|
$ | 744,071 | $ | 696,703 | $ | 653,047 | $ | 629,359 | $ | 568,901 | ||||||||||
Net Earnings
|
$ | 55,063 | $ | 48,409 | $ | 41,312 | $ | 27,908 | $ | 32,112 | ||||||||||
Total Assets
|
$ | 550,816 | $ | 483,994 | $ | 439,827 | $ | 408,408 | $ | 380,288 | ||||||||||
Long-Term Debt
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Capital Lease
|
||||||||||||||||||||
Obligations
|
$ | 801 | $ | 863 | $ | 381 | $ | 474 | $ | 565 | ||||||||||
Stockholders' Equity
|
$ | 432,388 | $ | 380,575 | $ | 342,844 | $ | 316,778 | $ | 295,582 | ||||||||||
Common Share Data
|
||||||||||||||||||||
Earnings Per Diluted
|
||||||||||||||||||||
Share
|
$ | 2.93 | $ | 2.59 | $ | 2.21 | $ | 1.47 | $ | 1.69 | ||||||||||
Earnings Per Basic
|
||||||||||||||||||||
Share
|
$ | 2.95 | $ | 2.61 | $ | 2.23 | $ | 1.49 | $ | 1.72 | ||||||||||
Book Value Per Share
|
$ | 23.09 | $ | 20.58 | $ | 18.51 | $ | 16.90 | $ | 15.80 | ||||||||||
Common Shares Outstanding
|
||||||||||||||||||||
At Year End
|
18,727 | 18,491 | 18,526 | 18,748 | 18,702 | |||||||||||||||
Cash Dividends Declared
|
||||||||||||||||||||
Per Common Share
|
$ | 0.47 | $ | 0.43 | $ | 0.39 | $ | 0.37 | $ | 0.34 |
Item 7.
|
Management’s Discussion And Analysis Of Financial Condition And Results Of Operations
|
.
|
Tangible net worth must initially be more than $294
million.
|
.
|
Total funded indebtedness divided by earnings before
interest expense, income taxes, depreciation and
amortization shall not be greater than 2.25 to 1.
|
Payments Due by Period
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Less
|
||||||||||||||||||||
Than
|
1-3 | 4-5 |
After
|
|||||||||||||||||
Total
|
1 Year
|
Years
|
Years
|
5 Years
|
||||||||||||||||
Long-term debt,
including current
maturities
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Capital lease
obligations
|
801 | 278 | 422 | 65 | 36 | |||||||||||||||
Purchase commitments
|
60,000 | 60,000 | - | - | - | |||||||||||||||
Construction Contracts
|
4,300 | 4,300 | - | - | - | |||||||||||||||
Operating leases
|
49,298 | 8,809 | 12,451 | 7,377 | 20,661 | |||||||||||||||
Total
|
$ | 114,399 | $ | 73,387 | $ | 12,873 | $ | 7,442 | $ | 20,697 |
Item 7A.
|
Quantitative And Qualitative Disclosures About Market Risk
|
Item 8.
|
Financial Statements And Supplementary Data
|
Item 9.
|
Changes In And Disagreements With Accountants OnAccounting And Financial Disclosure
|
Item 9A.
|
Controls And Procedures
|
·
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
|
·
|
Provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of our management and board of directors;
|
·
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate
Governance
|
Item 11.
|
Executive Compensation
|
Name | Age | Position | ||
Gerald B. Shreiber
|
69
|
Chairman of the Board,
President, Chief Executive
Officer and Director
|
||
Dennis G. Moore
|
56
|
Senior Vice President, Chief
Financial Officer, Secretary,
Treasurer and Director
|
||
Robert M. Radano
|
62
|
Senior Vice President,
Sales and Chief Operating
Officer
|
||
Dan Fachner
|
51
|
President of The ICEE Company
Subsidiary
|
||
Gerard G. Law
|
37
|
Senior Vice President and
Assistant to the President
|
||
Robert J. Pape
|
54
|
Senior Vice President,
Sales
|
Item 12.
|
Security Ownership Of Certain Beneficial Owners And
Management And Related Stockholder Matters
|
( a )
|
( b )
|
( c )
|
||||||||||
Plan Category
|
Number of
securities to
be issued upon
exercise of
outstanding
options,
warrants and
rights
|
Weighted-
average
exercise
price of
outstanding
options,
warrants and
rights
|
Number of
Securities
Remaining
available for
future
issuance under
equity
compensation
plans
(excluding
securities
reflected in
column (a) )
|
|||||||||
Equity compensation plans
approved by security holders
|
559,287 | $ | 37.55 | 1,054,000 | ||||||||
Equity compensation plans not
approved by security holders
|
- | - | - | |||||||||
Total
|
559,287 | $ | 37.55 | 1,054,000 |
Item 13.
|
Certain Relationships And Related Transactions, and
Director Independence
|
Item 14.
|
Principal Accounting Fees And Services
|
Item 15.
|
Exhibits, Financial Statement Schedules
|
|
3.1
|
Amended and Restated Certificate of Incorporation filed February 28, 1990 (Incorporated by reference from the Company’s Form 10-Q dated May 4, 1990).
|
|
3.2**
|
Revised Bylaws adopted November 19, 2007.
|
4.3
|
Amended and Restated Loan Agreement dated
December 1, 2006 by and among J & J Snack Foods
Corp. and Certain of its Subsidiaries and
Citizens Bank of Pennsylvania, as Agent
(Incorporated by reference from the Company’s Form 10-K dated December 6, 2006).
|
4.4**
|
First Amendment and Modification to Amended and Restated Loan Agreement.
|
10.2
*
|
J & J Snack Foods Corp. Stock Option Plan (
Incorporated by reference from the Company’s
Definitive Proxy Statement dated December 19,
2002).
|
10.3
*
|
Adoption Agreement for MFS Retirement Services,
Inc. Non-Standardized 401(K) Profit Sharing
Plan and Trust, effective September 1, 2004
(Incorporated by reference from the Company’s Form 10-K dated December 6, 2006).
|
10.4
*
|
J & J Snack Foods Corp. Directors’ and
Consultants’ Deferred Compensation Plan adopted
November 21, 2005 (Incorporated by reference from the Company’s Form 10-K dated December 6, 2006).
|
10.7
|
Lease dated August 29, 1995 between J & J Snack Foods Corp. and 5353 Downey Associated Ltd. for the lease of the Vernon, CA facility (Incorporated by reference from the Company’s Form 10-K dated December 21, 1995).
|
10.8
*
|
J & J Snack Foods Corp. Employee Stock Purchase Plan (Incorporated by reference from the Company’s Form S-8 dated May 16, 1996).
|
10.11
|
Amendment No. 1 to Lease dated August 29, 1995
between J & J Snack Foods Corp. and 5353 Downey Associated Ltd. for the lease of the Vernon, CA facility (Incorporated by reference from the Company’s Form 10-K dated December 18, 2002).
|
10.14
|
Leases and amendments to leases between Liberty Venture I, LP and J & J Snack Foods Corp. for the three buildings located in Bridgeport, New Jersey (Incorporated by reference from the Company’s Form 10-K dated December 8, 2009).
|
10.15
|
Amendment No. 2 to Lease dated August 29, 1995
between J & J Snack Foods Corp. and 5353 Downey Associated Ltd. for the lease of the Vernon, CA facility (Incorporated by reference from the Company's Form 10-K dated December 6, 2010).
|
10.16
|
Amendment to Lease dated January 1, 1996 between Country Home Bakers, LLC and Borck Associates Limited Partnership for the lease of the Atlanta, GA facility (Incorporated by reference from the Company's Form 10-k dated December 6, 2011).
|
14.1
|
Code of Ethics Pursuant to Section 406 of the
Sarbanes-Oxley Act of 2002
(Incorporated by reference from the Company’s 10-Q dated July 20, 2004).
|
21.1
**
|
Subsidiaries of J & J Snack Foods Corp.
|
23.1
**
|
Consent of Independent Registered Public Accounting Firm.
|
31.1
**
|
Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
31.2
**
|
Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
32.1
**
|
Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002.
|
32.2
**
|
Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002.
|
101.1**
|
The following financial information from J&J Snack Foods Corp.'s Form 10-K for the year ended September 24, 2011, formatted in XBRL (eXtensible Business Reporting Language):
|
(i) | Consolidated Statements of Earnings, | |
(ii) | Consolidated Balance Sheets | |
(iii) | Consolidated Statements of Cash Flows and | |
(iv) | Consolidated Statement of Changes in Stockholders' Equity |
*
|
Compensatory Plan
|
**
|
Filed Herewith
|
J & J SNACK FOODS CORP.
|
|||
December 6, 2011
|
By:
|
/s/ Gerald B. Shreiber | |
Gerald B. Shreiber,
Chairman of the Board,
President, Chief Executive
Officer and Director
(Principal Executive Officer)
|
/s/ Gerald B. Shreiber | |||
December 6, 2011 |
Gerald B. Shreiber,
Chairman of the Board,
President, Chief Executive
Officer and Director
(Principal Executive Officer)
|
||
/s/ Dennis G. Moore | |||
December 6, 2011 |
Dennis G. Moore, Senior Vice
President, Chief Financial
Officer and Director
(Principal Financial Officer)
(Principal Accounting Officer)
|
||
/s/ Sidney R. Brown | |||
December 6, 2011 | Sidney R. Brown, Director | ||
/s/ Peter G. Stanley | |||
December 6, 2011 | Peter G. Stanley, Director | ||
/s/ Leonard M. Lodish | |||
December 6, 2011 | Leonard M. Lodish, Director |
Financial Statements:
|
|
Report of Independent Registered Public Accounting
Firm
|
F-2
|
Consolidated Balance Sheets as of September 24, 2011
and September 25, 2010
|
F-3
|
Consolidated Statements of Earnings for fiscal years ended September 24, 2011, September 25, 2010 and September 26, 2009 |
F-4
|
Consolidated Statement of Changes in Stockholders’ Equity
for the fiscal years ended September 24, 2011,
September 25, 2010 and September 26, 2009
|
F-5
|
Consolidated Statements of Cash Flows for fiscal years ended September 24, 2011, September 25, 2010 and September 26, 2009 |
F-6
|
Notes to Consolidated Financial Statements
|
F-7
|
Financial Statement Schedule:
|
|
Schedule II – Valuation and Qualifying Accounts
|
S-1
|
J & J SNACK FOODS CORP. AND SUBSIDIARIES
|
||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS
|
||||||||||||
(in thousands, except per share information)
|
||||||||||||
Fiscal year ended
|
||||||||||||
September 24,
|
September 25,
|
September 26,
|
||||||||||
2011
|
2010
|
2009
|
||||||||||
(52 weeks)
|
(52 weeks)
|
(52 weeks)
|
||||||||||
Net Sales
|
$ | 744,071 | $ | 696,703 | $ | 653,047 | ||||||
Cost of goods sold
(1)
|
514,297 | 468,923 | 444,203 | |||||||||
Gross Profit
|
229,774 | 227,780 | 208,844 | |||||||||
Operating expenses
|
||||||||||||
Marketing
(2)
|
70,637 | 72,103 | 69,493 | |||||||||
Distribution
(3)
|
57,462 | 52,146 | 49,705 | |||||||||
Administrative
(4)
|
24,568 | 24,282 | 22,713 | |||||||||
Other general expense (income)
|
524 | 2,087 | (5 | ) | ||||||||
153,191 | 150,618 | 141,906 | ||||||||||
Operating Income
|
76,583 | 77,162 | 66,938 | |||||||||
Other income (expenses)
|
||||||||||||
Gain on bargain purchase
of a business
|
6,580 | - | - | |||||||||
Investment income
|
1,041 | 1,114 | 1,386 | |||||||||
Interest expense & other
|
(138 | ) | (179 | ) | (115 | ) | ||||||
Earnings before
income taxes
|
84,066 | 78,097 | 68,209 | |||||||||
|
||||||||||||
Income taxes
|
29,003 | 29,688 | 26,897 | |||||||||
NET EARNINGS
|
$ | 55,063 | $ | 48,409 | $ | 41,312 | ||||||
Earnings per diluted share
|
$ | 2.93 | $ | 2.59 | $ | 2.21 | ||||||
Weighted average number
of diluted shares
|
18,789 | 18,703 | 18,713 | |||||||||
|
||||||||||||
Earnings per basic share
|
$ | 2.95 | $ | 2.61 | $ | 2.23 | ||||||
Weighted average number of
basic shares
|
18,672 | 18,528 | 18,516 |
(1)
|
Includes share-based compensation expense of $157 for the year ended September 24, 2011, $182
for the year ended September 25, 2010, and $211 for the year ended September 26, 2009.
|
(2)
|
Includes share-based compensation expense of $347 for the year ended September 24, 2011, $448
for the year ended September 25, 2010, and $729 for the year ended September 26, 2009.
|
(3)
|
Includes share-based compensation expense of $18 for the year ended September 24, 2011, $21
for the year ended September 25, 2010, and $21 for the year ended September 26, 2009.
|
(4)
|
Includes share-based compensation expense of $396 for the year ended September 24, 2011, $597
for the year ended September 25, 2010, and $755 for the year ended September 26, 2009.
|
(in thousands)
|
||||
Balance at September 25, 2010
|
$ | 1,249 | ||
Additions based on tax positions
related to the current year
|
110 | |||
Reductions for tax positions of prior years
|
(386 | ) | ||
Settlements
|
- | |||
Balance at September 24, 2011
|
$ | 973 |
Fiscal Year Ended September 26, 2009
|
||||||||||||
Income
|
Shares
|
Per Share
|
||||||||||
(Numerator)
|
(Denominator)
|
Amount
|
||||||||||
(in thousands, except per share amounts)
|
||||||||||||
Earnings Per Basic Share
|
||||||||||||
Net Income available
to common stockholders
|
$ | 41,312 | 18,516 | $ | 2.23 | |||||||
Effect of Dilutive Securities
|
||||||||||||
Options
|
- | 197 | (0.02 | ) | ||||||||
Earnings Per Diluted Share
|
||||||||||||
Net Income available to
common stockholders plus assumed conversions
|
$ | 41,312 | 18,713 | $ | 2.21 | |||||||
114,236 anti-dilutive shares have been excluded in the computation of
2009 diluted EPS because the options' exercise price is greater than the
average market price of the common stock.
|
Fiscal year ended
|
||||||||||||
September 24,
|
September 25,
|
September 26,
|
||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands, except per share amounts)
|
||||||||||||
Stock options
|
$ | 288 | $ | 592 | $ | 508 | ||||||
Stock purchase plan
|
203 | 184 | 237 | |||||||||
Deferred stock issued
to outside directors
|
46 | 138 | 138 | |||||||||
Restricted stock issued
to an employee
|
- | 28 | 87 | |||||||||
$ | 537 | $ | 942 | $ | 970 | |||||||
Per diluted share
|
$ | 0.03 | $ | 0.05 | $ | 0.05 | ||||||
The above compensation
is net of tax
benefits
|
$ | 381 | $ | 306 | $ | 746 |
California Churros | Other | |||||||
(in thousands) | ||||||||
Working Capital
|
$ | 1,075 | $ | - | ||||
Property, plant & equipment
|
2,373 | 1,135 | ||||||
Trade Names
|
4,024 | - | ||||||
Customer Relationships
|
6,737 | - | ||||||
Covenant not to Compete
|
35 | 50 | ||||||
Goodwill
|
9,756 | - | ||||||
$ | 24,000 | $ | 1,185 |
(in thousands) | ||||
Working Capital
|
$ | 6,955 | ||
Property, plant & equipment
|
11,036 | |||
Trade Names
|
1,325 | |||
Customer Relationships
|
207 | |||
Deferred tax liability
|
(4,137 | ) | ||
Net Assets Acquired
|
15,386 | |||
Purchase Price
|
8,806 | |||
Gain on bargain purchase
|
$ | 6,580 |
Level 1
|
Observable inputs such as quoted prices in active markets for identical assets or liabilities;
|
Level 2
|
Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and
|
Level 3
|
Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.
|
Gross
|
Gross
|
Fair | ||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
US Government Agency Debt
|
$ | 42,000 | $ | 52 | $ | 62 | $ | 41,990 | ||||||||
FDIC Backed Corporate Debt
|
8,015 | 18 | - | 8,033 | ||||||||||||
Certificates of Deposit
|
17,491 | 1 | - | 17,492 | ||||||||||||
$ | 67,506 | $ | 71 | $ | 62 | $ | 67,515 |
Gross
|
Gross
|
Fair | ||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
US Government Agency Debt
|
$ | 8,000 | $ | 53 | $ | - | $ | 8,053 | ||||||||
FDIC Backed Corporate Debt
|
13,107 | 144 | - | 13,251 | ||||||||||||
Certificates of Deposit
|
20,674 | 5 | 20,679 | |||||||||||||
$ | 41,781 | $ | 202 | $ | - | $ | 41,983 |
September 24, 2011 | September 25, 2010 | |||||||||||||||
Fair
|
Fair
|
|||||||||||||||
Amortized
|
Market
|
Amortized
|
Market
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(in thousands) | ||||||||||||||||
Due in one year or less
|
$ | 25,506 | $ | 25,525 | $ | 15,481 | $ | 15,501 | ||||||||
Due after one year through
five years
|
6,000 | 6,014 | 26,300 | 26,482 | ||||||||||||
Due after five years through
ten years
|
36,000 | 35,976 | - | - | ||||||||||||
Total held to maturity
securities
|
$ | 67,506 | $ | 67,515 | $ | 41,781 | $ | 41,983 | ||||||||
Less current portion
|
25,506 | 25,525 | 15,481 | 15,501 | ||||||||||||
Long term held to maturity
securities
|
$ | 42,000 | $ | 41,990 | $ | 26,300 | $ | 26,482 |
September 24,
|
September 25,
|
|||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Finished goods
|
$ | 28,770 | $ | 22,171 | ||||
Raw materials
|
13,160 | 8,702 | ||||||
Packaging materials
|
5,791 | 4,727 | ||||||
Equipment parts and other
|
15,740 | 15,030 | ||||||
$ | 63,461 | $ | 50,630 |
September 24,
|
September 25,
|
Estimated
|
||||||||||
2011
|
2010
|
Useful Lives
|
||||||||||
(in thousands)
|
||||||||||||
Land
|
$ | 2,496 | $ | 2,016 | - | |||||||
Buildings
|
15,766 | 13,266 |
15-39.5 years
|
|||||||||
Plant machinery
and equipment
|
158,408 | 144,697 |
5-20 years
|
|||||||||
Marketing equipment
|
223,490 | 214,545 |
5-7 years
|
|||||||||
Transportation
equipment
|
4,264 | 3,785 |
5 years
|
|||||||||
Office equipment
|
13,650 | 12,690 |
3-5 years
|
|||||||||
Improvements
|
21,054 | 19,590 |
5-20 years
|
|||||||||
Construction in
Progress
|
7,728 | 3,814 | - | |||||||||
$ | 446,856 | $ | 414,403 |
Food
|
Retail
|
Frozen
|
||||||||||||||
Service
|
Supermarkets
|
Beverages
|
Total
|
|||||||||||||
(in thousands) | ||||||||||||||||
Balance at
September 24, 2011
|
$ | 34,130 | $ | - | $ | 35,940 | $ | 70,070 | ||||||||
Balance at
September 25, 2010
|
$ | 34,130 | $ | - | $ | 35,940 | $ | 70,070 |
September 24,
|
September 25,
|
|||||||
2011
|
2010
|
|||||||
(in thousands) | ||||||||
Capital lease obligations, with
interest at 7.6%, payable in
monthly installments of $3,162,
through November 2017
|
$ | 182 | $ | - | ||||
Capital lease obligations, with
interest at 5.8%, payable in
monthly installments of $14,625,
through May 2014
|
432 | 578 | ||||||
Capital lease obligations, with
interest at 2.6%, payable in monthly installments in $8,700, through August 2013
|
187 | 285 | ||||||
801 | 863 | |||||||
Less current portion
|
278 | 244 | ||||||
$ | 523 | $ | 619 |
Fiscal year ended
|
||||||||||||
September 24,
|
September 25,
|
September 26,
|
||||||||||
2011
|
2010
|
2009
|
||||||||||
|
(in thousands) | |||||||||||
Current
|
||||||||||||
U.S. Federal
|
$ | 17,065 | $ | 21,020 | $ | 18,574 | ||||||
Foreign
|
950 | 970 | 706 | |||||||||
State
|
4,871 | 4,484 | 3,744 | |||||||||
22,886 | 26,474 | 23,024 | ||||||||||
Deferred
|
||||||||||||
U.S. Federal
|
$ | 3,988 | $ | 2,692 | $ | 3,106 | ||||||
Foreign
|
409 | (48 | ) | 109 | ||||||||
State
|
1,720 | 570 | 658 | |||||||||
6,117 | 3,214 | 3,873 | ||||||||||
$ | 29,003 | $ | 29,688 | $ | 26,897 |
Fiscal year ended
|
||||||||||||
September 24,
|
September 25,
|
September 26,
|
||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Income taxes at
statutory rates
|
$ | 29,423 | $ | 27,334 | $ | 23,873 | ||||||
Increase (decrease)
in taxes resulting from:
|
||||||||||||
State income taxes,
net of federal income tax benefit
|
3,279 | 3,403 | 2,958 | |||||||||
Domestic production
activities deduction
|
(1,500 | ) | (850 | ) | (400 | ) | ||||||
Gain on bargain purchase
|
(2,303 | ) | - | - | ||||||||
Other, net
|
104 | (199 | ) | 466 | ||||||||
$ | 29,003 | $ | 29,688 | $ | 26,897 |
September 24,
|
September 25,
|
|||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Deferred tax assets
|
||||||||
Vacation accrual
|
$ | 1,390 | $ | 1,334 | ||||
Insurance accrual
|
2,591 | 3,098 | ||||||
Deferred income
|
34 | 60 | ||||||
Allowances
|
2,074 | 1,881 | ||||||
Inventory capitalization
|
653 | 573 | ||||||
Share-based compensation
|
1,301 | 1,209 | ||||||
Unclaimed Property
|
632 | - | ||||||
Other, net
|
19 | 56 | ||||||
8,694 | 8,211 | |||||||
Deferred tax liabilities
|
||||||||
Amortization of goodwill
and other intangible
assets
|
17,418 | 14,885 | ||||||
Depreciation of property
and equipment
|
28,090 | 19,907 | ||||||
Other, net
|
28 | 7 | ||||||
45,536 | 34,799 | |||||||
$ | 36,842 | $ | 26,588 |
Plants and
|
||||||||||||
Offices
|
Equipment
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
2012
|
$ | 5,390 | $ | 3,419 | $ | 8,809 | ||||||
2013
|
4,811 | 2,010 | 6,821 | |||||||||
2014
|
4,407 | 1,223 | 5,630 | |||||||||
2015
|
3,971 | 415 | 4,386 | |||||||||
2016
|
2,911 | 80 | 2,991 | |||||||||
2017 and thereafter
|
20,626 | 35 | 20,661 | |||||||||
$ | 42,116 | $ | 7,182 | $ | 49,298 |
Incentive Stock Options
|
Nonqualified Stock Options
|
|||||||||||||||
Weighted-
|
Weighted-
|
|||||||||||||||
Stock
|
Average
|
Stock
|
Average
|
|||||||||||||
Options
|
Exercise
|
Options
|
Exercise
|
|||||||||||||
Outstanding
|
Price
|
Outstanding
|
Price
|
|||||||||||||
Balance, September 28, 2008
|
613,832 | $ | 24.29 | 397,354 | $ | 18.00 | ||||||||||
Granted
|
4,500 | 32.13 | - | - | ||||||||||||
Exercised
|
(169,388 | ) | 18.73 | (71,000 | ) | 10.70 | ||||||||||
Cancelled
|
(20,000 | ) | 26.79 | (20,000 | ) | 20.02 | ||||||||||
Balance, September 26, 2009
|
428,944 | 26.45 | 306,354 | 19.55 | ||||||||||||
Granted
|
101,330 | 36.77 | 20,000 | 41.75 | ||||||||||||
Exercised
|
(92,760 | ) | 16.40 | (72,354 | ) | 10.12 | ||||||||||
Cancelled
|
(19,505 | ) | 33.47 | (10,000 | ) | 38.81 | ||||||||||
Balance, September 25, 2010
|
418,009 | 30.86 | 244,000 | 23.38 | ||||||||||||
Granted
|
101,200 | 50.93 | 45,315 | 49.57 | ||||||||||||
Exercised
|
(186,039 | ) | 23.52 | (62,000 | ) | 10.30 | ||||||||||
Cancelled
|
(10,050 | ) | 36.77 | - | - | |||||||||||
Balance, September 24, 2011
|
323,120 | $ | 41.18 | 227,315 | $ | 32.17 | ||||||||||
Exercisable Options
|
||||||||||||||||
September 24, 2011
|
126,436 | 142,000 |
Fiscal Year Ended
|
||||||||||||
September 24,
|
September 25,
|
September 26,
|
||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Cash paid for:
|
||||||||||||
Interest
|
$ | 36 | $ | 76 | $ | 14 | ||||||
Income taxes
|
19,594 | 31,379 | 21,345 | |||||||||
Non cash items:
|
||||||||||||
Capital leases
|
$ | 182 | $ | 625 | $ | - |
Fiscal year ended | ||||||||||||
September 24,
|
September 25,
|
September 26,
|
||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Sales to External Customers:
|
||||||||||||
Food Service
|
||||||||||||
Soft pretzels
|
$ | 103,943 | $ | 100,694 | $ | 99,471 | ||||||
Frozen juices and ices
|
49,740 | 47,273 | 50,272 | |||||||||
Churros
|
41,583 | 31,732 | 29,404 | |||||||||
Handhelds
|
8,865 | - | - | |||||||||
Bakery
|
241,288 | 234,032 | 229,371 | |||||||||
Other
|
18,143 | 24,075 | 10,492 | |||||||||
$ | 463,562 | $ | 437,806 | $ | 419,010 | |||||||
Retail Supermarket
|
||||||||||||
Soft pretzels
|
$ | 32,044 | $ | 30,463 | $ | 30,506 | ||||||
Frozen juices and ices
|
51,940 | 48,288 | 37,819 | |||||||||
Handhelds
|
9,424 | - | - | |||||||||
Coupon redemption
|
(3,857 | ) | (3,399 | ) | (3,753 | ) | ||||||
Other
|
1,548 | 767 | 586 | |||||||||
$ | 91,099 | $ | 76,119 | $ | 65,158 | |||||||
Frozen Beverages
|
||||||||||||
Beverages
|
$ | 133,372 | $ | 128,125 | $ | 112,983 | ||||||
Repair and
maintenance service
|
42,608 | 40,410 | 42,013 | |||||||||
Machines sales
|
11,362 | 11,964 | 11,729 | |||||||||
Other
|
2,068 | 2,279 | 2,154 | |||||||||
$ | 189,410 | $ | 182,778 | $ | 168,879 | |||||||
Consolidated Sales
|
$ | 744,071 | $ | 696,703 | $ | 653,047 | ||||||
Depreciation and Amortization:
|
||||||||||||
Food Service
|
$ | 16,994 | $ | 17,252 | $ | 16,563 | ||||||
Retail Supermarket
|
- | - | - | |||||||||
Frozen Beverages
|
13,240 | 12,600 | 11,190 | |||||||||
$ | 30,234 | $ | 29,852 | $ | 27,753 | |||||||
Operating Income:
|
||||||||||||
Food Service
|
$ | 46,171 | $ | 50,220 | $ | 44,960 | ||||||
Retail Supermarket
|
11,830 | 11,281 | 7,442 | |||||||||
Frozen Beverages
|
18,582 | 15,661 | 14,536 | |||||||||
$ | 76,583 | $ | 77,162 | $ | 66,938 | |||||||
Capital Expenditures:
|
||||||||||||
Food Service
|
$ | 14,905 | $ | 18,392 | $ | 14,979 | ||||||
Retail Supermarket
|
- | - | - | |||||||||
Frozen Beverages
|
14,219 | 15,139 | 12,211 | |||||||||
$ | 29,124 | $ | 33,531 | $ | 27,190 | |||||||
Assets:
|
||||||||||||
Food Service
|
$ | 405,927 | $ | 341,285 | $ | 307,814 | ||||||
Retail Supermarket
|
3,579 | 2,731 | 2,731 | |||||||||
Frozen Beverages
|
141,310 | 139,978 | 129,282 | |||||||||
$ | 550,816 | $ | 483,994 | $ | 439,827 |
Fiscal Year Ended September 24, 2011
|
||||||||||||||||
Net Earnings
|
||||||||||||||||
Per
|
||||||||||||||||
Gross
|
Net
|
Diluted
|
||||||||||||||
Net Sales
|
Profit
|
Earnings
|
Share(1)
|
|||||||||||||
(in thousands, except per share information)
|
||||||||||||||||
1st Quarter
|
$ | 155,632 | $ | 46,101 | $ | 7,094 | $ | 0.38 | ||||||||
2nd Quarter
|
162,731 | 49,022 | 8,659 | 0.46 | ||||||||||||
3rd Quarter
|
206,328 | 67,541 | 23,326 | 1.24 | ||||||||||||
4th Quarter
|
219,380 | 67,110 | 15,984 | 0.85 | ||||||||||||
Total
|
$ | 744,071 | $ | 229,774 | $ | 55,063 | $ | 2.93 |
Fiscal Year Ended September 25, 2010
|
||||||||||||||||
Net Earnings
|
||||||||||||||||
Per
|
||||||||||||||||
Gross
|
Net
|
Diluted
|
||||||||||||||
Net Sales
|
Profit
|
Earnings
|
Share(1)
|
|||||||||||||
(in thousands, except per share information)
|
||||||||||||||||
1st Quarter
|
$ | 149,102 | $ | 46,019 | $ | 7,091 | $ | 0.38 | ||||||||
2nd Quarter
|
157,361 | 49,797 | 9,000 | 0.48 | ||||||||||||
3rd Quarter
|
189,729 | 65,031 | 15,861 | 0.85 | ||||||||||||
4th Quarter
|
200,511 | 66,933 | 16,457 | 0.88 | ||||||||||||
Total
|
$ | 696,703 | $ | 227,780 | $ | 48,409 | $ | 2.59 |
(1)
|
Total of quarterly amounts do not necessarily agree to the annual
report amounts due to separate quarterly calculations of weighted average shares outstanding
|
Opening
|
Charged to
|
Closing | |||||||||||||||||
Year
|
Description
|
Balance
|
Expense
|
Deductions
|
Balance | ||||||||||||||
2011
|
Allowance for doubtful accounts
|
$ | 591,000 | $ | 423,000 | $ | 361,000 | (1 | ) | $ | 653,000 | ||||||||
2010
|
Allowance for doubtful accounts
|
$ | 623,000 | $ | 493,000 | $ | 525,000 | (1 | ) | $ | 591,000 | ||||||||
2009
|
Allowance for doubtful accounts
|
$ | 926,000 | $ | 492,000 | $ | 795,000 | (1 | ) | $ | 623,000 | ||||||||
2011
|
Inventory Reserve
|
$ | 4,189,000 | $ | 1,931,000 | $ | 1,505,000 | (2 | ) | $ | 4,615,000 | ||||||||
2010
|
Inventory Reserve
|
$ | 4,209,000 | $ | 1,509,000 | $ | 1,529,000 | (2 | ) | $ | 4,189,000 | ||||||||
2009
|
Inventory Reserve
|
$ | 3,817,000 | $ | 2,036,000 | $ | 1,644,000 | (2 | ) | $ | 4,209,000 | ||||||||
(1) Write-off of uncollectible accounts receivable.
|
|||||||||||||||||||
(2) Disposals of obsolete inventory.
|
Pricing Level
|
Applicable Margin for
ABR Loans
|
Applicable Margin for
LIBOR Loans
|
Applicable Margin for
Letters of Credit
|
Applicable Margin for
Commitment Fee
|
Pricing Level I
|
0.50%
|
0.95%
|
0.95%
|
0.175%
|
Pricing Level II
|
0.50%
|
1.20%
|
1.20%
|
0.175%
|
Pricing Level III
|
0.50%
|
1.45%
|
1.45%
|
0.25%
|
Pricing Level IV
|
0.75%
|
1.70%
|
1.70%
|
0.25%
|
J & J SNACK FOODS CORP.
|
|||
By:
|
|||
Dennis G. Moore, Senior Vice President
|
J & J Snack Foods Investment Corp.
|
The ICEE Company
|
J & J Snack Foods Corp. of California
|
J & J Snack Foods Corp./Mia
|
J & J Snack Foods Corp. of Pennsylvania
|
J & J Snack Foods Sales Corp.
|
J & J Snack Foods Transport Corp.
|
J & J Restaurant Group, L.L.C.
|
Bakers Best Snack Food Corp.
|
Pretzels, Inc.
|
Federal Pretzel Baking Company, L.L.C.
|
Country Home Bakers, L.L.C.
|
ICEE of Hawaii, Inc.
|
DADDY RAY’S, Inc.
|
Hom/Ade Foods, Inc.
|
J & J Snack Foods Handhelds Corp.
|
By:
|
|||
Dennis G. Moore, Senior Vice President
|
CITIZENS BANK OF PENNSYLVANIA
,
as Agent and as a Bank
|
|||
By:
|
|||
Devon L. Starks, Senior Vice President
|
|||
|
|||
Commitment: $25,000,000.00
|
WELLS FARGO BANK, NATIONAL ASSOCIATION
,
as a Bank
|
|||
By:
|
|||
|
|||
Commitment: $25,000,000.00
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|