JJSF J and J Snack Foods Corporation

J & J Snack Foods Corp. (NASDAQ:JJSF) today announced record sales but lower earnings for its third quarter and nine months ended June 28, 2008. Sales for the third quarter increased 9% to $176.8 million from $162.5 million in last year's third quarter. Net earnings decreased 13% to $10.8 million from $12.5 million last year. Earnings per diluted share were $.57 for the June quarter compared to $.66 last year. Operating income decreased 7% to $17.4 million this year from $18.8 million in the year ago period. For the nine months ended June 28, 2008, sales increased 11% to $452.0 million from $406.7 million in last year's nine months. Net earnings decreased 23% to $16.7 million in the nine months from $21.6 million last year. Earnings per diluted share were $ .88 for the nine months compared to $1.14 last year. Operating income decreased 21% to $25.5 million from $32.1 million in the year ago period. Gerald B. Shreiber, J & J�s President and Chief Executive Officer, commented; �Despite overall sales growth of over 9 percent and significantly improved operating income from our retail supermarket segment, our overall earnings declined. Although pricing initiatives helped to counter soaring input costs, particularly wheat and dairy based ingredients, our profits for the quarter were negatively impacted by the higher costs.� 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, DADDYRAY�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 � Nine Months Ended June 28, � June 30, June 28, � June 30, 2008 2007 2008 2007 (in thousands) � Net sales $176,839 $162,510 $451,966 $406,692 Cost of goods sold 121,087 106,852 320,427 273,379 Gross profit 55,752 55,658 131,539 133,313 Operating expenses 38,298 36,852 106,069 101,177 Operating income 17,454 18,806 25,470 32,136 Other income 532 451 1,969 1,914 Earnings before income taxes 17,986 19,257 27,439 34,050 Income taxes 7,166 6,760 10,724 12,415 Net earnings $ 10,820 $ 12,497 $ 16,715 $ 21,635 � Earnings per diluted share $ .57 $ .66 $ .88 $1.14 Earnings per basic share $ .58 $ .67 $ .89 $1.16 Weighted average number of diluted shares 18,981 19,055 19,013 18,988 Weighted average number of basic shares 18,762 18,677 18,772 18,606 � � Consolidated Balance Sheets June 28, 2008 � September 29, 2007 (in thousands) � Current assets, excluding auction market preferred stock $153,281 $124,164 Property, plant & equipment, net 94,426 93,222 Goodwill 60,314 60,314 Other intangibles, net 54,766 58,333 Auction market preferred stock 35,200 41,200 Other 3,074 3,055 Total $401,061 $380,288 � Current liabilities 74,262 64,601 Long-term obligations under capital leases 404 474 Deferred income taxes 19,180 19,180 Other long term obligations 1,908 451 Stockholders' equity 305,307 295,582 Total $401,061 $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.