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J & J Snack Foods Corp. announced record sales and earnings for its third quarter and nine months ended June 30, 2007.
Sales for the third quarter increased 16 percent to $162.5 million from $140.1 million in last year's third quarter. Net earnings increased 16 percent to $12.5 million from $10.8 million last year. Earnings per diluted share were $.66 for the June quarter compared to $.57 last year. Operating income increased 12 percent to $18.8 million this year from $16.7 million in the year ago period.
For the nine months ended June 30, 2007, sales increased 13 percent to $406.7 million from $360.7 million in last year's nine months. Net earnings increased 21 percent to $21.6 million in the nine months from $17.9 million last year. Earnings per diluted share were $1.14 for the nine months compared to $.95 last year. Operating income increased 19 percent to $32.1 million from $26.9 million in the year ago period.
Operating expenses in last year's quarter and nine months include an impairment charge of $1.2 million for the write-down of robotic packaging equipment. Excluding the write-down of this equipment in last year's quarter, operating income increased $865,000, or 5 percent, for the quarter and $4.0 million, or 14 percent, for the nine months.
Operating expenses were reduced by $896,000 of other general income in this year's quarter compared to $71,000 in the year ago period. Excluding the write-down of the robotic packaging equipment in last year's quarter and the increase in other general income this year, operating income was essentially unchanged for the quarter and up $3.2 million, or 11 percent, for the nine months.
Gerald B. Shreiber, J & J's President and Chief Executive Officer, commented; "Although we benefited from positive results from both of our recently acquired companies, Hom/Ade Foods and Daddy Ray's, and a strong showing by our ICEE and Slush Puppie business, our quarter's results were impacted by continuing escalating costs of commodities including flour and dairy products."
Editor's Insight: J & J Snack Foods makes several good products for vending, some of which have national name brand recognition. The portfolio includes products for ambient snack machines, cold food snacks and frozen desserts. The portfolio includes products for ambient snack machines, cold food snacks and frozen desserts. To date, J & J Snack Foods has had a marginal presence in the vending trade. The company has much to gain by expanding this presence. 07-30-07 by Elliot Maras
