JJSF J and J Snack Foods Corporation

J & J Snack Foods Corp. (NASDAQ:JJSF) today announced record sales but lower earnings for its second quarter and six months ended March 29, 2008. Sales increased 11% to $144.2 million from $130.0 million in last year's second quarter. Net earnings decreased 25% to $4.0 million from $5.3 million last year. Earnings per diluted share were $.21 for the March quarter compared to $.28 last year. Operating income decreased 31% to $5.7 million this year from $8.2 million in the year ago period. For the six months ended March 29, 2008, sales increased 13% to $275.1 million from $244.2 million in last year�s first half. Net earnings decreased 35% to $5.9 million in the six months from $9.1 million last year. Earnings per diluted share were $.31 for the six months compared to $.48 last year. Operating income decreased 40% to $8.0 million from $13.3 million in the year ago period. Gerald B. Shreiber, J & J�s President and Chief Executive Officer, commented, �Although our overall sales increased, we continue to be impacted by escalating input costs, particularly commodities such as flour and dairy products.� J & J Snack Foods Corp.�s principal products include SUPERPRETZEL, PRETZEL FILLERS and other soft pretzels, ICEE, SLUSH PUPPIE and ARCTIC BLAST frozen beverages, LUIGI�S, MAMA TISH�S, SHAPE UPS, MINUTE MAID* and BARQ�S** and CHILL*** frozen juice bars and ices, WHOLE FRUIT sorbet, FRUIT-A-FREEZE frozen fruit bars, MARY B�S biscuits and dumplings, DADDY RAY�S fig and fruit bars, TIO PEPE�S churros, THE FUNNEL CAKE FACTORY funnel cakes, and MRS. GOODCOOKIE, CAMDEN CREEK, COUNTRY HOME and READI-BAKE cookies. J & J has manufacturing facilities in Pennsauken, Bridgeport and Bellmawr, New Jersey; Scranton, Hatfield and Chambersburg, Pennsylvania; Carrollton, Texas; Atlanta, Georgia; Moscow Mills, Missouri; Pensacola, Florida and Vernon and Newport, California. *MINUTE MAID is a registered trademark of The Coca-Cola Company. **BARQ�S is a registered trademark of Barq�s Inc. ***CHILL is a registered trademark of Wells Dairy, Inc. � Consolidated Statement of Operations Three Months Ended � Six Months Ended March 29, � March 31, March 29, � March 31, 2008 2007 2008 2007 (in thousands) � Net sales $ 144,229 $ 130,040 $ 275,127 $ 244,182 Cost of goods sold � 103,829 � 87,633 � 199,340 � 166,527 Gross profit 40,400 42,407 75,787 77,655 Operating expenses � 34,720 � 34,212 � 67,771 � 64,325 Operating income 5,680 8,195 8,016 13,330 Other income � 658 � 507 � 1,437 � 1,463 Earnings before income taxes 6,338 8,702 9,453 14,793 Income taxes � 2,340 � 3,369 � 3,558 � 5,655 Net earnings $ 3,998 $ 5,333 $ 5,895 $ 9,138 � Earnings per diluted share $ .21 $ .28 $ .31 $ .48 Earnings per basic share $ .21 $ .29 $ .31 $ .49 Weighted average number of diluted shares 18,982 19,014 19,029 18,954 Weighted average number of basic shares 18,785 18,601 18,777 18,570 � Consolidated Balance Sheets March 29, 2008 � September 29, 2007 (in thousands) � Current assets, excluding auction market preferred stock $ 126,462 $ 124,164 Property, plant & equipment, net � 93,957 93,222 Goodwill 60,314 60,314 Other intangibles, net 55,949 58,333 Auction market preferred stock 45,200 41,200 Other � 3,118 � 3,055 Total $ 385,000 $ 380,288 � Current liabilities $ 66,424 $ 64,601 Long-term obligations under capital leases 428 474 Deferred income taxes 19,180 19,180 Other long-term liabilities 1,950 451 Stockholders' equity � 297,018 � 295,582 Total $ 385,000 $ 380,288 The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management�s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof.