PENNSAUKEN, N.J., April 30, 2018 -- J & J Snack Foods Corp. announced sales and earnings for the second quarter ended March 31, 2018.
Sales increased 8% to $266.1 million from $246.5 million in last year’s second quarter. Net earnings increased 12% to $17.8 million in the current quarter from $16.0 million last year. Earnings per diluted share increased 12% to $.95 for the second quarter from $.85 last year. Operating income decreased 2% to $23.5 million in the current quarter from $24.1 million in the year ago quarter.
For the six months ended March 31, 2018, sales increased 13% to $531.3 million from $472.1 million in last year’s first half. Net earnings increased 83% to $54.1 million in the six months from $29.5 million last year. Earnings per diluted share increased 83% to $2.88 from $1.57 last year. Operating income increased 3% to $44.8 million this year from $43.4 million last year.
Net earnings for the current year quarter benefited from a $1.9 million, or $0.10 per diluted share, reduction in income taxes related primarily to the lower corporate tax rate enacted under the Tax Cuts and Jobs Act in December 2017. Our effective tax rate in the quarter decreased to 28.7% from 35.4% last year.
Net earnings for the current year six months benefited from a $20.9 million, or $1.11 per diluted share, gain on the re-measurement of deferred tax liabilities and a $3.9 million, or $0.21 per diluted share, reduction in income taxes related primarily to the lower corporate tax rate enacted under the Tax Cuts and Jobs Act in December 2017. Net earnings were impacted by a $1.2 million, or $.06 per diluted share, provision for the one-time repatriation tax required under the new tax law. Excluding the deferred tax gain and the one-time repatriation tax, our effective tax rate decreased to 28.6% from 34.8% in the prior year six months reflecting the reduction in the federal statutory rate to 21% from 35% for the last three quarters of fiscal 2018. The gain on the re-measurement of deferred tax liabilities and the one-time repatriation tax are preliminary estimates.
Gerald B. Shreiber, J & J’s President and Chief Executive Officer, commented, “While we are pleased with our overall sales increase, we remain focused on improving our margins, particularly in our food service business.”
J&J Snack Foods Corp. is a leader and innovator in the snack food industry, providing nutritional and affordable branded niche snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SUPERPRETZEL, BAVARIAN BAKERY and other soft pretzels, ICEE and SLUSH PUPPIE frozen beverages, LUIGI’S, MINUTE MAID* frozen juice bars and ices, WHOLE FRUIT sorbet and frozen fruit bars, MARY B’S biscuits and dumplings, DADDY RAY’S fig and fruit bars, TIO PEPE’S and CALIFORNIA CHURROS, PATIO Burritos and other handheld sandwiches, THE FUNNEL CAKE FACTORY funnel cakes, and several bakery brands within COUNTRY HOME BAKERS and HILL & VALLEY. For more information, please visit http://www.jjsnack.com.
