JJSF J and J Snack Foods Corporation

J&J Snack Foods Corp. (JJSF), a food processing company,reported strong fiscal first-quarter 2013 (ending Dec 29, 2012) financial results. Both the earnings as well as revenue surpassed the Zacks Consensus Estimate by a huge margin.

The company reported first quarter earnings per share of 54 cents, 22.7% higher than the Zacks Consensus Estimate of 44 cents. The quarterly earnings improved 86.2% from the year-ago earnings of 29 cents a share,

Revenue

Revenue increased 10.8% year over year to $191.4 million in the reported quarter. It also surpassed the Zacks Consensus Estimate of $185.0 million by 3.5%, due to improvement in foodservice and frozen beverage businesses.

Sales in the Food Service segment increased 15.1% year over year to $130.2 million, led by improvement in soft pretzels, churros and bakery product sales.

Sales in the Retail Supermarkets segment remained almost flat year over year at $20.7 million in the reported quarter, led by soft pretzel and handhelds sales.

Frozen Beveragessegment revenue increase d 4.5% year-over year increase to $40.5 million, boosted by beverages as well as machine sales.

Costs/Margin

During the reported quarter, cost of goods sold edged up 8.7% from the year-ago quarter to settle at $137.3 million. Gross profit margin inched up 141 basis points from the year-ago quarter, to 28.3%, led by higher volume in the foodservice business.

Total operating expenses for 1Q13 came in at $39.1 million, an increase of 3.0% year over year. However, the operating profit margin dropped by 4 basis points to 4.86%. 

Balance Sheet/Cash Flow Statement

J&J’s cash and cash equivalents at the end of first quarter were approximately $80.2 million, representing a decrease of 48.0% from the previous quarter. Total debt decreased 19.0% sequentially to $281 million as of Dec 29, 2012.

Total capital expenditure incurred for the quarter amounted to $7.5 million against $8.9 million in the year-ago quarter. Net operating cash flow experienced a decline of 16.5%, to settle at $17.3 million.

The company is a manufacturer of nutritional snack foods and frozen beverages. The stock currently bears a Zacks Rank #3 (Hold). Other stocks worth a look in the industry are ConAgra Foods Inc. (CAG), H. J. Heinz Company (HNZ) and Campbell Soup Co. (CPB); each holding a Zacks Rank #2 (Buy).

 
CONAGRA FOODS (CAG): Free Stock Analysis Report
 
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J&J SNACK FOODS (JJSF): Free Stock Analysis Report
 
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