XNAS:JJSF J&J Snack Foods Corp Quarterly Report 10-Q Filing - 6/23/2012

Effective Date 6/23/2012

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

X      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the period ended June 23, 2012
or


Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number:                0-14616

J & J SNACK FOODS CORP.
(Exact name of registrant as specified in its charter)
 
New Jersey 22-1935537
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
 
6000 Central Highway, Pennsauken, NJ 08109
(Address of principal executive offices)

Telephone (856) 665-9533

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 X           Yes    No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
 X           Yes    No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):
 
  Large Accelerated filer (X)     Accelerated filer ( )
       
  Non-accelerated filer (  )     Smaller reporting company (  ) 
  (Do not check if a smaller reporting company)    
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes   X            No
 
As July 16, 2012, there were 18,917,074 shares of the Registrant’s Common Stock outstanding.

 
 

 
 
INDEX
 
 
     
Page
Number
       
Part I.  
Financial Information
 
       
Item l.
Consolidated Financial Statements
 
     
  Consolidated Balance Sheets – June 23, 2012 (unaudited) and September 24, 2011  3
     
  Consolidated Statements of Earnings (unaudited)  – Three and Nine Months Ended June 23, 2012 and June 25, 2011  5
     
  Consolidated Statements of Cash Flows (unaudited)  – Nine Months Ended June 23, 2012 and June 25, 2011  6
     
  Notes to the Consolidated Financial Statements (unaudited)  7
       
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
22
       
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
27
       
Item 4. 
Controls and Procedures
27
       
Part II.   Other Information  
       
Item 6. Exhibits 28

 
 

 
 
I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
J & J SNACK FOODS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
 
   
June 23,
2012
   
September 24,
2011
 
   
(Unaudited)
       
ASSETS            
             
Current assets
           
Cash and cash equivalents
  $ 109,481     $ 87,479  
Marketable securities held to maturity
    15,454       25,506  
Accounts receivable, net
    84,016       75,000  
Inventories, net
    72,783       63,461  
Prepaid expenses and other
    3,226       4,196  
Deferred income taxes
    3,664       4,208  
      288,624       259,850  
                 
Property, plant and equipment, at cost
               
Land
    2,496       2,496  
Buildings
    24,821       15,766  
Plant machinery and equipment
    165,408       158,408  
Marketing equipment
    229,708       223,490  
Transportation equipment
    4,480       4,264  
Office equipment
    14,701       13,650  
Improvements
    22,437       21,054  
Construction in progress
    7,233       7,728  
 
    471,284       446,856  
Less accumulated depreciation and amortization
    335,669       322,206  
                 
      135,615       124,650  
                 
Other assets
               
Goodwill
    76,899       70,070  
Other intangible assets, net
    49,586       52,005  
Marketable securities held to maturity
    39,479       42,000  
Other
    3,256       2,241  
      169,220       166,316  
    $ 593,459     $ 550,816  
 
See accompanying notes to the consolidated financial statements
 
 
3

 
 
J & J SNACK FOODS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
 
 
 
June 23,
2012
   
September 24,
2011
 
   
(Unaudited)
       
LIABILITIES AND STOCKHOLDERS' EQUITY
           
             
Current liabilities
           
Current obligations under capital leases
  $ 291     $ 278  
Accounts payable
    65,455       55,918  
Accrued liabilities
    8,483       4,593  
Accrued compensation expense
    10,833       12,859  
Dividends payable
    2,457       2,200  
      87,519       75,848  
                 
Long-term obligations under capital leases
    301       523  
Deferred income taxes
    41,024       41,050  
Other long-term liabilities
    928       1,007  
      42,253       42,580  
                 
Stockholders' equity
               
Capital stock
               
Preferred, $1 par value; authorized, 10,000 shares; none issued
    -       -  
Common, no par value; authorized 50,000 shares; issued and outstanding, 18,902 and 18,727 shares, respectively
    49,189       45,017  
Accumulated other comprehensive loss
    (4,019 )     (3,914 )
Retained earnings
    418,517       391,285  
      463,687       432,388  
    $ 593,459     $ 550,816  
 
See accompanying notes to the consolidated financial statements
 
 
4

 
 
J & J SNACK FOODS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
 
 
 
Three months ended
   
Nine months ended
 
   
June 23,
2012
   
June 25,
2011
   
June 23,
2012
   
June 25,
2011
 
                         
Net Sales
  $ 226,335     $ 206,328     $ 588,575     $ 524,691  
                                 
Cost of goods sold(1)
    153,828       138,787       415,675       362,027  
Gross Profit
    72,507       67,541       172,900       162,664  
                                 
Operating expenses
                               
Marketing (2)
    19,892       18,462       54,955       51,404  
Distribution (3)
    16,034       15,133       44,465       40,805  
Administrative (4)
    6,873       6,355       19,158       17,890  
Other general (income) expense
    (183 )     530       (305 )     577  
      42,616       40,480       118,273       110,676  
                                 
Operating Income
    29,891       27,061       54,627       51,988  
                                 
Other income (expense)
                               
Gain on bargain purchase of a business
    -       6,580       -       6,580  
Investment income
    397       251       1,132       694  
Interest expense & other
    11       (34 )     (32 )     (106 )
                                 
Earnings before income taxes
    30,299       33,858       55,727       59,156  
 
                               
Income taxes
    11,627       10,532       21,147       20,077  
                                 
NET EARNINGS
  $ 18,672     $ 23,326     $ 34,580     $ 39,079  
                                 
Earnings per diluted share
  $ 0.99     $ 1.24     $ 1.83     $ 2.08  
                                 
Weighted average number of diluted shares
    18,947       18,829       18,917       18,766  
 
                               
Earnings per basic share
  $ 0.99     $ 1.25     $ 1.83     $ 2.10  
                                 
Weighted average number of basic shares
    18,886       18,700       18,850       18,639  
 
(1)
Includes share-based compensation expense of $75 and $198 for the three months and nine months ended June 23,2012, respectively and $31 and $112 for the three and nine months ended June 25, 2011, respectively.
(2)
Includes share-based compensation expense of $113 and $297 for the three months and nine months ended June 23,2012, respectively and $67 and $246 for the three and nine months ended June 25, 2011, respectively.
(3)
Includes share-based compensation expense of $8 and $20 for the three months and nine months ended June 23,2012, respectively and $3 and $13 for the three and nine months ended June 25, 2011, respectively.
(4)
Includes share-based compensation expense of $154 and $404 for the three months and nine months ended June 23,2012, respectively and $60 and $301 for the three and nine months ended June 25, 2011, respectively.
 
See accompanying notes to the consolidated financial statements
 
 
5

 
 
J&J Snack Foods Corp. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (in thousands)
 
   
Nine months ended
 
   
June 23,
2012
   
June 25,
2011
 
Operating activities:
           
Net earnings
  $ 34,580     $ 39,079  
Adjustments to reconcile net earnings to net cash provided by operating activities:
               
Depreciation of property, plant and equipment
    19,332       18,649  
Amortization of intangibles and deferred costs
    3,572       4,013  
Share-based compensation
    919       672  
Gain on bargain purchase of a business
    -       (6,580 )
Deferred income taxes
    (122 )     (57 )
Other
    (155 )     19  
Changes in assets and liabilities net of effects from purchase of companies
               
Increase in accounts receivable
    (8,207 )     (11,890 )
Increase in inventories
    (9,785 )     (9,144 )
Decrease in prepaid expenses
    969       3,382  
Increase in accounts payable and accrued liabilities
    11,388       13,137  
Net cash provided by operating activities
    52,491       51,280  
Investing activities:
               
Payments for purchases of companies, net of cash acquired
    (7,900 )     (8,806 )
Purchases of property, plant and equipment
    (30,077 )     (20,069 )
Purchases of marketable securities
    (68,450 )     (41,293 )
Proceeds from redemption of marketable securities
    81,023       27,547  
Proceeds from disposal of property and equipment
    645       303  
Other
    (962 )     (584 )
Net cash used in investing activities
    (25,721 )     (42,902 )
Financing activities:
               
Proceeds from issuance of stock
    2,568       2,869  
Payments on capitalized lease obligations
    (210 )     (182 )
Payment of cash dividend
    (7,092 )     (6,347 )
Net cash used in financing activities
    (4,734 )     (3,660 )
Effect of exchange rate on cash and cash equivalents
    (34 )     260  
Net increase in cash and cash equivalents
    22,002       4,978  
Cash and cash equivalents at beginning of period
    87,479       74,665  
Cash and cash equivalents at end of period
  $ 109,481     $ 79,643  
 
See accompanying notes to the consolidated financial statements.
 
 
6

 

J & J SNACK FOODS CORP. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 1            In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position and the results of operations and cash flows.  Certain prior year amounts have been reclassified to conform to the current period presentation.  These reclassifications had no effect on reported net earnings.
 
The results of operations for the three months and nine months ended June 23, 2012 and June 25, 2011 are not necessarily indicative of results for the full year.  Sales of our frozen beverages and frozen juice bars and ices are generally higher in the third and fourth quarters due to warmer weather.
 
While we believe that the disclosures presented are adequate to make the information not misleading, it is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 24, 2011.
 
Note 2             We recognize revenue from our products when the products are shipped to our customers. Repair and maintenance equipment service revenue is recorded when it is performed provided the customer terms are that the customer is to be charged on a time and material basis or on a straight-line basis over the term of the contract when the customer has signed a service contract. Revenue is recognized only where persuasive evidence of an arrangement exists, our price is fixed or estimable and collectability is reasonably assured.  We record offsets to revenue for allowances, end-user pricing adjustments, trade spending, coupon redemption costs and returned product.  Customers generally do not have the right to return product unless it is damaged or defective.   We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors.  The allowance for doubtful receivables was $651,000 and $653,000 at June 23, 2012 and September 24, 2011, respectively.
 
 
7

 
 
Note 3            Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter.  Licenses and rights, customer relationships and non compete agreements arising from acquisitions are amortized by the straight-line method over periods ranging from 3 to 20 years. Depreciation expense was $6,620,000 and $6,287,000 for the three months ended June 23, 2012 and June 25, 2011, respectively, and for the nine months ended June 23, 2012 and June 25, 2011 was $19,332,000 and $18,649,000, respectively.

Note 4            Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period.  Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows:
 
   
Three Months Ended June 23, 2012
 
   
Income
(Numerator)
   
Shares
(Denominator)
   
Per Share
Amount
 
                   
   
(in thousands, except per share amounts)
 
Basic EPS
                 
Net Earnings available to common stockholders
  $ 18,672       18,886     $ 0.99  
                         
Effect of Dilutive Securities
                       
Options
    -       61       -  
                         
Diluted EPS
                       
Net Earnings available to common stockholders plus assumed conversions
  $ 18,672       18,947     $ 0.99  
 
500 anti-dilutive shares have been excluded from the computation of diluted EPS because the options’ exercise price is greater than the average market price of the common stock.
 
 
8

 
 
   
Nine Months Ended June 23, 2012
 
   
Income
(Numerator)
   
Shares
(Denominator)
   
Per Share
Amount
 
                   
   
(in thousands, except per share amounts)
 
Basic EPS
                 
Net Earnings available to common stockholders
  $ 34,580       18,850     $ 1.83  
                         
Effect of Dilutive Securities
                       
Options
    -       67       -  
                         
Diluted EPS
                       
Net Earnings available to common stockholders plus assumed conversions
  $ 34,580       18,917     $ 1.83  
 
500 anti-dilutive shares have been excluded from the computation of diluted EPS because the options’ exercise price is greater than the average market price of the common stock.
 
   
Three Months Ended June 25, 2011
 
   
Income
(Numerator)
   
Shares
(Denominator)
   
Per Share
Amount
 
                   
   
(in thousands, except per share amounts)
 
Basic EPS
                 
Net Earnings available to common stockholders
  $ 23,326       18,700     $ 1.25  
                         
Effect of Dilutive Securities
                       
Options
    -       129       (0.01 )
                         
Diluted EPS
                       
Net Earnings available to common stockholders plus assumed conversions
  $ 23,326       18,829     $ 1.24  
 
 
9

 
 
   
Nine Months Ended June 25, 2011
 
   
Income
(Numerator)
   
Shares
(Denominator)
 
Per Share
Amount
 
                   
   
(in thousands, except per share amounts)
 
Basic EPS
                 
Net Earnings available to common stockholders
  $ 39,079       18,639     $ 2.10  
                         
Effect of Dilutive Securities
                       
Options
    -       127       (0.02 )
                         
Diluted EPS
                       
Net Earnings available to common stockholders plus assumed conversions
  $ 39,079       18,766     $ 2.08  
 
Note 5           Our calculation of comprehensive income is as follows:
 
   
Three months ended
   
Nine months ended
 
   
June 23,
2012
   
June 25,
2011
   
June 23,
2012
   
June 25,
2011
 
   
(in thousands)
 
                         
Net Earnings
  $ 18,672     $ 23,326     $ 34,580     $ 39,079  
Foreign currency translation adjustment
    (880 )     29       (105 )     510  
Comprehensive income
  $ 17,792     $ 23,355     $ 34,475     $ 39,589  
 
 
10

 
 
Note 6           At June 23, 2012, the Company has three stock-based employee compensation plans.  Share-based compensation was recognized as follows:
 
   
Three months ended
   
Nine months ended
 
   
June 23,
2012
   
June 25,
2011
   
June 23,
2012
   
June 25,
2011
 
   
(in thousands, except per share amounts)
 
                         
                         
Stock Options
  $ 191     $ 40     $ 484     $ 140  
Stock purchase plan
    112       37       214       169  
Deferred stock issued to outside directors
    -       -       -       46  
    $ 303     $ 77     $ 698     $ 355  
                                 
                                 
Per diluted share
  $ 0.02     $ -     $ 0.04     $ 0.02  
                                 
The above compensation is net of tax benefits
  $ 47     $ 84     $ 221     $ 317  
 
The Company anticipates that share-based compensation will not exceed $1,000,000 net of tax benefits, or approximately $.05 per share for the fiscal year ending September 29, 2012.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2012 first nine months: expected volatility of 28%; risk-free interest rate of 1.03%; dividend rate of 1.0% and expected lives ranging between 5 and 10 years.

During the 2012 nine month period, the Company granted 2,000 stock options.  The weighted-average grant date fair value of these options was $11.97. The Company did not grant any options in the 2011 nine-month period.

Expected volatility is based on the historical volatility of the price of our common shares over the past 52 months for 5 year options and 10 years for 10 year options.  We use historical information to estimate expected life and forfeitures within the valuation model.  The expected term of awards represents the period of time that options granted are expected to be outstanding.  The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.  Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures.

 
11

 
 
Note 7            We account for our income taxes under the liability method.  Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse.  Deferred tax expense is the result of changes in deferred tax assets and liabilities.
 
Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not to be overturned by taxing authorities (“uncertain tax positions”).  We have not recognized a tax benefit in our financial statements for these uncertain tax positions.  
 
The total amount of gross unrecognized tax benefits is $917,000 and $973,000 on June 23, 2012 and September 24, 2011, respectively, all of which would impact our effective tax rate over time, if recognized.  We recognize interest and penalties related to income tax matters as a part of the provision for income taxes.  As of June 23, 2012 and September 24, 2011, respectively, the Company has $332,000 and $335,000 of accrued interest and penalties.

In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax with virtually all open for examination for three to four years.
 
Note 8            In January 2010, the FASB issued guidance that amends existing disclosure requirements of fair value measurements adding required disclosures about items transferring into and out of Levels 1 and 2 in the fair value hierarchy; adding separate disclosures about purchases, sales, issuances, and settlements relative to Level 3 measurements; and clarifying, among other things, the existing fair value disclosures about the level of disaggregation. This guidance was effective for our fiscal year beginning September 26, 2010, except for the requirement to provide Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which was effective for our fiscal year beginning September 25, 2011. Since this standard impacts disclosure requirements only, its adoption has not had any impact on the Company’s consolidated results of operations or financial condition.

In December 2010, the FASB issued guidance which requires that if a company presents comparative financial statements to include business combinations, the company should disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. This guidance also expands the supplemental pro forma adjustments to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. This guidance is effective for our fiscal year beginning September 25, 2011. The adoption of this guidance has not had a material impact on the Company’s financial position, results of operations or cash flows.
 
 
12

 
 
In May 2011, the FASB issued guidance which amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. This guidance results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements. This guidance was effective for our second quarter of fiscal year 2012, and its adoption did not have a material impact on our financial statements.

In June 2011, the FASB issued guidance which gives us the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both options, we are required to present each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The amendments in this guidance do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income.  This guidance will be effective for our fiscal year 2013 and is not expected to have a material impact on our financial statements.

In December 2010, the FASB issued guidance related to goodwill impairment testing for reporting entities with a zero or negative carrying amount.  Under the amended guidance, we must consider whether it is more likely than not that a goodwill impairment exists for reporting units with a zero or negative carrying amount.  If it is more likely than not that a goodwill impairment exists, the second step of the goodwill impairment test must be performed to measure the amount of the goodwill impairment loss, if any.   This guidance is effective for our fiscal year 2012 and has not had a material impact on our financial statements.

 
13

 
 
Note 9            Inventories consist of the following:
   
June 23,
2012
   
September 24,
2011
 
   
(unaudited)
       
   
(in thousands)
 
             
Finished goods
  $ 35,747     $ 28,770  
Raw Materials
    14,912       13,160  
Packaging materials
    6,183       5,791  
Equipment parts & other
    15,941       15,740  
    $ 72,783     $ 63,461  
                 
The above inventories are net of reserves
  $ 4,023     $ 4,615  
 
Note 10          We principally sell our products to the food service and retail supermarket industries.  Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements.  We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Makers.
 
We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments.  Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income (loss). These segments are described below.

Food Service

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods.  Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions.  Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

 
14

 
 
Retail Supermarkets

The primary products sold by the retail supermarket segment are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars, WHOLE FRUIT Sorbet, ICEE Squeeze-Up Tubes, dough enrobed handheld products and TIO PEPE’S Churros.  Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.


Frozen Beverages

We sell frozen beverages and related products to the food service industry primarily under the names ICEE, SLUSH PUPPIE, PARROT ICE and ARCTIC BLAST in the United States, Mexico and Canada.  We also provide repair and maintenance service to customers for customers’ owned equipment.

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment.  In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

 
15

 

   
Three months ended
   
Nine months ended
 
   
June 23,
2012
   
June 25,
2011
   
June 23,
2012
   
June 25,
2011
 
   
(in thousands)
 
   
(unaudited)
 
Sales to External Customers:
                       
Food Service
                       
Soft pretzels
  $ 29,579     $ 26,686     $ 82,592     $ 76,342  
Frozen juices and ices
    19,680       17,176       39,106       35,904  
Churros
    12,330       11,004       34,263       31,258  
Handhelds
    7,249       2,835       21,242       2,835  
Bakery
    66,754       58,080       191,938       173,209  
Other
    2,872       5,598       6,716       14,929  
    $ 138,464     $ 121,379     $ 375,857     $ 334,477  
                                 
Retail Supermarket
                               
Soft pretzels
  $ 7,635     $ 7,524     $ 24,242     $ 23,972  
Frozen juices and ices
    17,629       17,943       34,204       33,419  
Handhelds
    5,193       2,807       16,861       2,807  
Coupon redemption
    (857 )     (940 )     (2,183 )     (2,264 )
Other
    255       506       999       1,216  
    $ 29,855     $ 27,840     $ 74,123     $ 59,150  
                                 
Frozen Beverages
                               
Beverages
  $ 41,238     $ 41,260     $ 91,616     $ 89,789  
Repair and maintenance service
    12,386       11,078       35,875       30,831  
Machines sales
    3,711       4,071       9,646       8,812  
Other
    681       700       1,458       1,632  
    $ 58,016     $ 57,109     $ 138,595     $ 131,064  
                                 
Consolidated Sales
  $ 226,335     $ 206,328     $ 588,575     $ 524,691  
                                 
Depreciation and Amortization:
                         
Food Service
  $ 4,342     $ 4,197     $ 12,746     $ 12,700  
Retail Supermarket
    5       -       15       -  
Frozen Beverages
    3,452       3,324       10,143       9,962  
    $ 7,799     $ 7,521     $ 22,904     $ 22,662  
                                 
Operating Income:
                               
Food Service
  $ 15,203     $ 13,875     $ 35,205     $ 36,795  
Retail Supermarket
    4,115       3,545       7,597       7,677  
Frozen Beverages
    10,573       9,641       11,825       7,516  
    $ 29,891     $ 27,061     $ 54,627     $ 51,988  
                                 
Capital Expenditures:
                               
Food Service
  $ 6,315     $ 5,130     $ 19,207     $ 10,357  
Retail Supermarket
    -       -       -       -  
Frozen Beverages
    2,691       4,322       10,870       9,712  
    $ 9,006     $ 9,452     $ 30,077     $ 20,069  
                                 
Assets:
                               
Food Service
  $ 441,785     $ 389,042     $ 441,785     $ 389,042  
Retail Supermarket
    4,285       3,587       4,285       3,587  
Frozen Beverages
    147,389       145,317       147,389       145,317  
    $ 593,459     $ 537,946     $ 593,459     $ 537,946  
 
 
16

 
 
Note 11          Our three reporting units, which are also reportable segments, are Food Service, Retail Supermarkets and Frozen Beverages.
 
The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverage segments as of June 23, 2012 and September 24, 2011 are as follows:
 
   
June 23, 2012
   
September 24,2011
 
   
Gross
Carrying
Amount
   
Accumulated
Amortization
   
Gross
Carrying
Amount
   
Accumulated
Amortization
 
   
(in thousands)
 
                         
FOOD SERVICE
                       
Indefinite lived intangible assets
                       
Trade Names
  $ 12,880       -     $ 12,880     $ -  
                                 
Amortized intangible assets
                               
Non compete agreements
    545       449       470       425  
Customer relationships
    40,187       21,680       40,024       18,993  
License and rights
    3,606       2,495       3,606       2,425  
    $ 57,218     $ 24,624     $ 56,980     $ 21,843  
                                 
RETAIL SUPERMARKETS
                               
Indefinite lived intangible assets
                               
Trade Names
  $ 4,006       -     $ 3,380     $ -  
                                 
Amortized Intangible Assets
                               
Customer relationships
    279       23       207       8  
    $ 4,285     $ 23     $ 3,587     $ 8  
                                 
                                 
FROZEN BEVERAGES
                               
Indefinite lived intangible assets
                               
Trade Names
  $ 9,315       -     $ 9,315     $ -  
                                 
Amortized intangible assets
                               
Non compete agreements
    198       198       198       189  
Customer relationships
    6,478       4,038       6,478       3,540  
Licenses and rights
    1,601       626       1,601       574  
    $ 17,592     $ 4,862     $ 17,592     $ 4,303  
                                 
CONSOLIDATED
  $ 79,095     $ 29,509     $ 78,159     $ 26,154  
 
 
17

 

Amortized intangible assets are being amortized by the straight-line method over periods ranging from 3 to 20 years and amortization expense is reflected throughout operating expenses. Intangible assets of $198,000 were acquired in the retail supermarkets segments in the three months ended June 23, 2012 in the Kim & Scott’s acquisition and a total of $698,000 was acquired in the nine months ended June 23, 2012.  Intangible assets of $238,000 were acquired in the food service segment in the three and nine months ended June 23, 2012, in the Kim & Scott’s acquisition. Aggregate amortization expense of intangible assets for the three months ended June 23, 2012 and June 25, 2011 was $1,109,000 and $1,127,000, respectively and for the nine months ended June 23, 2012 and June 25, 2011 was $3,355,000 and $3,676,000, respectively.

Estimated amortization expense for the next five fiscal years is approximately $4,500,000 in 2012 and 2013, $4,400,000 in 2014 and 2015 and $4,200,000 in 2016. The weighted average amortization period of the intangible assets is 10.1 years.

Goodwill

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:                                                                              
 
   
Food
Service
   
Retail
Supermarket
   
Frozen
Beverages
    Total  
    (in thousands)  
Balance at June 23, 2012
  $ 39,115     $ 1,844     $ 35,940     $ 76,899  

Goodwill of $6,829,000 was acquired in the Kim & Scott’s acquisition in the three months ended June 23, 2012, which was allocated $4,985,000 to the food service segment and $1,844,000 to the retail supermarkets segment.
 
Note 12          We have classified our investment securities as marketable securities held to maturity.  The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value:
 
Level 1                Observable input such as quoted prices in active markets for identical assets or liabilities;
 
 
18

 
 
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.

We have concluded that the carrying value of certificates of deposit placed through the Certificate of Deposit Account Registry Service equals fair market value.  Other marketable securities held to maturity values are derived solely from level 1 inputs.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at June 23, 2012 are summarized as follows:

   
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Market
Value
 
    (in thousands)  
US Government Agency Debt
  $ 53,479     $ 117     $ 38     $ 53,558  
Certificate of Deposit
    1,454       -       -       1,454  
    $ 54,933     $ 117     $ 38     $ 55,012  
 
All of the certificates of deposit are within the FDIC limits for insurance coverage. Included in the certificates of deposit are $1.2 million pledged as collateral to a municipal sewer district.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 24, 2011 are summarized as follows:
 
   
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Market
Value
 
   
(in thousands)
 
US Government Agency Debt
  $ 42,000     $ 52     $ 62     $ 41,990  
FDIC Backed Corporate Debt
    8,015       18       -       8,033  
Certificate of Deposit
    17,491       1       -       17,492  
    $ 67,506     $ 71     $ 62     $ 67,515  
 
All of the certificates of deposit are within the FDIC limits for insurance coverage.
 
 
19

 
 
The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at June 23, 2012 and September 24, 2011 are summarized as follows:
 
   
June 23, 2012
   
September 24, 2011
 
   
(in thousands)
 
   
Amortized
Cost
   
Fair
Market
Value
   
Amortized
Cost
   
Fair
Market
Value
 
                         
Due in one year or less
  $ 15,454     $ 15,454     $ 25,506     $ 25,525  
Due after one year through five years
    -       -       6,000       6,014  
Due after 5 years through 10 years
    39,479       39,558       36,000       35,976  
Due after 10 years through 15 years
    -       -       -       -  
Total held to maturity securities
  $ 54,933     $ 55,012     $ 67,506     $ 67,515  
Less current portion
    15,454       15,454       25,506       25,525  
Long term held to maturity securities
  $ 39,479     $ 39,558     $ 42,000     $ 41,990  
 
Proceeds from the redemption and sale of marketable securities were $21,000,000 and $81,023,000 in the three months and nine months ended June 23, 2012, respectively; and $2,022,000 and $27,547,000 in the three and nine months ended June 25, 2011, respectively, with no gain or loss recorded.  We use the specific identification method to determine the cost of securities sold.

Note 13                  In February 2010, we acquired the assets of Parrot Ice, a manufacturer and distributor of a premium brand frozen beverage sold primarily in convenience stores.  Revenues from Parrot Ice were approximately $1.5 million for our 2010 fiscal year.

On June 10, 2010 we acquired the assets of California Churros, Inc., a manufacturer and seller of a premium brand churro.  Revenues from CALIFORNIA CHURROS were approximately $2.5 million for our 2010 fiscal year.
 
In May 2011, we acquired the frozen handheld business of ConAgra Foods.  This business had sales of approximately $50 million over the prior twelve months to food service and retail supermarket customers and sales of $18.3 million in our 2011 fiscal year from the acquisition date.

In June 2012, we acquired the assets of Kim & Scott’s Gourmet Pretzels, Inc., a manufacturer and seller of a premium brand soft pretzel.  This business had sales of approximately $8 million over the prior twelve months to food service and retail supermarket customers.

 
20

 
 
These acquisitions were and will be accounted for under the purchase method of accounting, and their operations are and will be included in the consolidated financial statements from their respective acquisition dates.

 
The purchase price allocation for the handhelds acquisition is as follows:

   
(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  
 
The purchase price allocation resulted in the recognition of a gain on bargain purchase of approximately $6,580,000 which is included in other income in the consolidated statement of earnings for the three and nine months ended June 25, 2011.  The gain on bargain purchase resulted from the fair value of the identifiable net assets acquired exceeding the purchase price.

Acquisition costs of $464,000 and $534,000 for the handhelds acquisition are included in other general expense in the consolidated statements of earnings for the three and nine months ended June 25, 2011, respectively.

The preliminary purchase price allocation for the Kim and Scott’s acquisition is as follows:

   
(in thousands)
 
       
Working Capital
  $ (89 )
Property, plant & equipment
    724  
Trade Names
    126  
Customer Relationships
    235  
Non Compete Agreement
    75  
Goodwill
    6,829  
         
         
Purchase Price
  $ 7,900  
 
 
21

 
 
Acquisition costs of $133,000 for the Kim & Scott’s acquisition are included in other general expense in the consolidated statements of earnings for the three and nine months ended June 23, 2012, respectively.

The goodwill and intangible assets acquired in the business combinations are recorded at fair value.  To measure fair value for such assets, we use techniques including discounted expected future cash flows (Level 3 input).


Item 2.           Management’s Discussion and Analysis of Financial Condition and Results of Operations

Liquidity and Capital Resources

Our current cash and cash equivalents balances and cash expected to be provided by future operations are our primary sources of liquidity.  We believe that these sources, along with our borrowing capacity, are sufficient to fund future growth and expansion.  See Note 12 to these financial statements for a discussion of our investment securities.

The Company’s Board of Directors declared a regular quarterly cash dividend of $.13 per share of its common stock payable on
July 5, 2012, to shareholders of record as of the close of business on June 15, 2012.

In the year ended September 25, 2010, we purchased and retired 203,507 shares of our common stock at a cost of $7,768,000 under a million share buyback authorization approved by the Company’s Board of Directors in February 2008 leaving 210,772 as the number of shares that may yet be purchased under the share buyback authorization.

We completed a building expansion of our St. Louis, Missouri, bakery and a line expansion at our Carrollton, Texas, facility during the March 2012 quarter at a combined cost of approximately $12 million.  Over time, we expect to generate an additional $50 - $60 million of net sales as a result of these expansions.
 
 
22

 
 
In the three months ended June 23, 2012 and June 25, 2011, fluctuations in the valuation of the Mexican and Canadian currencies and the resulting translation of the net assets of our Mexican and Canadian subsidiaries caused an increase of $880,000 in accumulated other comprehensive loss in the 2012 third quarter and a decrease of $29,000 in accumulated other comprehensive loss in the 2011 third quarter. In the nine months period, fluctuations in the valuation of the Mexican and Canadian currencies and the resulting translation of the net assets of our Mexican and Canadian subsidiaries caused an increase of $105,000 in accumulated other comprehensive loss in the 2012 nine month period and a decrease of $510,000 in accumulated other comprehensive loss in the 2011 nine month period.
 
Our general-purpose bank credit line which expires in December 2016 provides for up to a $50,000,000 revolving credit facility.  The agreement contains restrictive covenants and requires commitment fees in accordance with standard banking practice. There were no outstanding balances under this facility at June 23, 2012.


Results of Operations

Net sales increased $20,007,000 or 10% for the three months to $226,335,000 and $63,884,000 or 12% to $588,575,000 for the nine months ended June 23, 2012 compared to the three and nine months ended June 25, 2011.

Excluding sales resulting from the acquisitions of the frozen handheld business of ConAgra Foods in May 2011 and Kim & Scott’s Gourmet Pretzels in June 2012 in the twelve months post acquisitions, sales increased 6% for the three months and 6% for the nine months.
 
 
 
FOOD SERVICE

Sales to food service customers increased $17,085,000 or 14% in the third quarter to $138,464,000 and increased $41,380,000 or 12% for the nine months.  Excluding handheld and Kim & Scott’s sales in the twelve months post acquisitions, food service sales increased 10% for the quarter and increased 7% for nine months.  Soft pretzel sales to the food service market increased 11% to $29,579,000 in the third quarter and increased 8% to $82,592,000 in the nine months due to increased sales to restaurant chains, warehouse club stores and throughout our customer base. Increased sales to one customer accounted for approximately 75% and 28% of the pretzels sales increase in the third quarter and year to date, respectively. Frozen juices and ices sales increased 15% to $19,680,000 in the three months and 9% to $39,106,000 in the nine months resulting from increased sales to warehouse club stores and throughout our customer base.  Churro sales to food service customers increased 12% to $12,330,000 in the third quarter and were up 10% to $34,263,000 in the nine months with sales increasing generally throughout our customer base, with sales to international customers accounting for 85% of the increase in the third quarter and just under half of the increase in the nine months.
 
 
23

 
 
Sales of bakery products increased $8,674,000 or 15% in the third quarter to $66,754,000 and increased $18,729,000 or 11% for the nine months as sales increases were spread throughout our customer base. Handheld sales to food service customers were $7,249,000 in the third quarter and $21,242,000 in the nine months.

Funnel cake product sales decreased by $2,609,000 or 51% to $2,544,000 in the quarter and by $7,938,000 or 58% to $5,671,000 in the nine months as lower sales to two customers accounted for all of the decrease in the third quarter and lower sales to three customers accounted for all of the decrease in the nine months.
 
Sales of new products in the first twelve months since their introduction were approximately $5.4 million in this quarter and $10.5 million in the nine months. Price increases accounted for approximately $4.2 million of sales in the June quarter and $12.3 million in the nine months and net volume increases, including new product sales as defined above and sales resulting from the acquisition of the handheld business, accounted for approximately $12.9 million of sales in the June quarter and $29.1 million of sales in the nine months.

Operating income in our Food Service segment increased from $13,875,000 to $15,203,000 in the quarter and decreased from $36,795,000 to $35,205,000 for the nine months. Operating income for the quarter benefited from increased sales volume and price increases which offset higher ingredient and packaging costs of about $1 million and the negative impact of the sharp decline in funnel cake product sales.  Additionally, operating income in the quarter benefitted from other general income this year of $99,000 compared to other general expense of $515,000, primarily acquisition costs,last year.  For the nine months, the decrease in operating income resulted from higher ingredient and packaging costs of about $9 million, the sharp decline in funnel cake product sales and a management and sales meeting expense of about $550,000, which were partially offset by price increases.



RETAIL SUPERMARKETS

Sales of products to retail supermarkets increased $2,015,000 or 7% to $29,855,000 in the third quarter and were up 25% to $74,123,000 in the nine months. Excluding handheld sales in the twelve months post acquisition, sales decreased 2% for the third quarter and increased 1% for the nine months. Soft pretzel sales for the third quarter were up 1% to $7,635,000 and were up 1% to $24,242,000 for the nine months on flat unit volume for the quarter and a decrease of 2% for the nine months.  Sales of frozen juices and ices decreased $314,000 or 2% to $17,629,000 in the third quarter and were up 2% to $34,204,000 in the nine months on a unit volume decrease of 2% in this quarter and an increase of 1% for the nine months.  Sales increases in excess of volume changes were due to pricing and mix changes. Coupon redemption costs, a reduction of sales, decreased 9% or about $83,000 for the quarter and decreased $81,000 or 4% for the nine months. Handheld sales to retail supermarket customers were $5,193,000 in the quarter and $16,861,000 for the nine months.
 
 
24

 

 
Sales of new products in the first twelve months since their introduction were approximately $2.2 million in the third quarter and $5.2 million in the nine months. Price increases accounted for approximately $1.0 million of sales in the quarter and $3.0 million in the nine months and net volume increases, including new product sales as defined above and handheld sales and net of increased coupon costs, accounted for approximately $1.0 million of sales in this quarter and $12.0 million of sales in the nine months. Operating income in our Retail Supermarkets segment increased from $3,545,000 to $4,115,000 in the quarter primarily because of operating income generated by handheld sales.  Operating income decreased from $7,677,000 to $7,597,000 in the nine months primarily as a result of higher trade spending for the introduction of new products and higher products costs related to ingredient and packaging cost increases.

 
 
FROZEN BEVERAGES

Frozen beverage and related product sales increased 2% to $58,016,000 in the third quarter and increased $7,531,000 or 6% to $138,595,000 in the nine month period.  Beverage related sales alone were essentially unchanged in the third quarter and were up 2% to $91,616,000 in the nine months.   Gallon sales were down 5% for the three months and 2% for the nine months as we had double digit sales decline at several of our larger customers during the quarter. Service revenue increased 12% to $12,386,000 in the third quarter and 16% to $35,875,000 for the nine months with about 75% of the increase coming from three new service customers.

Sales of beverage machines, which tend to fluctuate from year to year while following no specific trend, were $360,000 lower this year than last in the three month period and $834,000 higher in the nine months. The approximate number of company owned frozen beverage dispensers was 42,000 and 39,900 at June 23, 2012 and September 24, 2011, respectively.  Operating income in our Frozen Beverage segment increased $932,000 to $10,573,000 in the third quarter and to $11,825,000 from $7,516,000 in the nine months as a result of increased sales as discussed above and controlled expenses. Higher gasoline costs of approximately $80,000 and $572,000 impacted the June quarter and nine months, respectively.
 
 
25

 
 
CONSOLIDATED

Gross profit as a percentage of sales decreased to 32.04% in the three month period from 32.73% last year and decreased to 29.38% in the nine month period from 31.00% a year ago.  Higher ingredient and packaging costs compared to last year of approximately $1.5 million for the quarter and $10 million for the nine months and the lower gross margin percentage of handhelds sales­­­ through the anniversary of the acquisition date were primarily responsible for the decreased gross profit percentage. Without this handhelds impact, gross profit as a percentage of sales would have been about 32.6% in the quarter and 30.5% in the nine months.  Ingredient and packaging costs can be extremely volatile and may be significantly different from what we are presently expecting and therefore we cannot project the impact of ingredient and packaging costs on our business going forward; however, there has been a very significant increase in the market cost of ingredient and packaging over the past 24 months. We anticipate these continuing market cost increases may result in higher costs to the company over the remaining three months of our fiscal year 2012.  Although we have implemented price increases to defray the impact of a portion or all of these cost increases, the impact of these higher costs and increased costs in operational areas may result in lower net earnings over the remaining three months of our fiscal year 2012 compared to our fiscal year 2011.

Total operating expenses increased $2,136,000 in the third quarter but as a percentage of sales decreased from 20% percent to 19%.  For the nine months, operating expenses increased $7,597,000, but as a percentage of sales decreased from 21% to 20% of sales.  The drops in percentages were generally because of increased sales.  Additionally, other general income of $183,000 in this year’s quarter compared to other general expense of $530,000, primarily acquisition costs, in last year’s quarter.   Marketing expenses were 9% of sales in both years’ quarter and decreased about 1/2 of one percent in the nine months, from 10% of sales to 9% of sales.  Distribution expenses were 7% of sales in both years’ quarter and 8% of sales in both years’ nine months.  Administrative expenses were 3% of sales in all periods.

Operating income increased $2,830,000 or 10% to 29,891,000 in the third quarter and increased $2,639,000 or 5% to $54,627,000 in the nine months as a result of the aforementioned items.  Additionally, for the nine months of this year operating income was impacted by approximately $800,000 of costs of a management and sales meeting held in October, which historically has been held every five years.

Gain on the bargain purchase of a business of $6,580,000 in last year’s quarter resulted from the fair value of the identifiable assets acquired in the handhelds acquisition exceeding the purchase price.

Investment income increased by $146,000 and $438,000 in the third quarter and nine months, respectively, due primarily to increased investments of marketable securities.
 
 
26

 
 
The effective income tax rate has been estimated at 38%     and 31% for the quarter this year and last year, respectively, and at 38% and at 34% for the nine months this year and last year, respectively. Adjusting out the effect of last year’s gain on bargain purchase of a business, the effective income tax rate was estimated at 39% and 38% for the quarter and nine months of last year, respectively.  We are estimating an effective income tax rate of between 37 1/2% and 38 1/2% for the year.

Net earnings decreased $4,654,000 or 20% in the current three month period to $18,672,000 and decreased 12% to $34,580,000 for the nine months this year from $39,079,000 last year as a result of the aforementioned items.  Without the benefit of last year’s gain on bargain purchase of a business, net earnings were $18,672,000 in this year’s quarter compared to $16,746,000 last year and were $34,580,000 for the nine months compared to $32,499,000 last year.
 
There are many factors which can impact our net earnings from year to year and in the long run, among which are the supply and cost of raw materials and labor, insurance costs, factors impacting sales as noted above, the continuing consolidation of our customers, our ability to manage our manufacturing, marketing and distribution activities, our ability to make and integrate acquisitions and changes in tax laws and interest rates.


Item 3.            Quantitative and Qualitative Disclosures About Market Risk

There has been no material change in the Company’s  assessment of its sensitivity to market risk since its presentation set forth, in item 7a. “Quantitative and Qualitative Disclosures About Market Risk,” in its 2011 annual report on Form 10-K filed with the SEC.

Item 4.           Controls and Procedures

The Chief Executive Officer and the Chief Financial Officer of the Company (its principal executive officer and principal financial officer, respectively) have concluded, based on their evaluation as of June 23, 2012, that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports filed or submitted by it under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
 
 
27

 
 
There has been no change in the Company’s internal control over financial reporting during the quarter ended June 23, 2012, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
 
 PART II.  OTHER INFORMATION


Item 6.            Exhibits

Exhibit No.
 
31.1 &
Certification Pursuant to Section 302 of
31.2  
the Sarbanes-Oxley Act of 2002
     
     
99.5
& Certification Pursuant to the 18 U.S.C.
99.6
  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 Quarterly Report on Form 10-Q for the quarter ended June 23, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Earnings, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows and (iv) the Notes to the Consolidated Financial Statements
 
 
28

 
 
SIGNATURES

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
     J & J SNACK FOODS CORP.  
       
       
       
Dated: July 23, 2012
 
/s/ Gerald B. Shreiber  
   
Gerald B. Shreiber
 
   
Chairman of the Board,
 
   
President, Chief Executive
 
   
Officer and Director
 
   
(Principal Executive Officer)
 
 
 

Dated: July 23, 2012
 
/s/ Dennis G. Moore  
   
Dennis G. Moore, Senior Vice
 
   
President, Chief Financial
 
   
Officer and Director
 
   
(Principal Financial Officer)
 
   
(Principal Accounting Officer)
 


29

XNAS:JJSF J&J Snack Foods Corp Quarterly Report 10-Q Filling

J&J Snack Foods Corp XNAS:JJSF Stock - Get Quarterly Report SEC Filing of J&J Snack Foods Corp XNAS:JJSF stocks, including company profile, shares outstanding, strategy, business segments, operations, officers, consolidated financial statements, financial notes and ownership information.

XNAS:JJSF J&J Snack Foods Corp Quarterly Report 10-Q Filing - 6/23/2012
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