J&J Snack Foods Corp. (NASDAQ:JJSF) Q4 2017 Earnings Conference Call Transcript

Nov 10, 2017 • 10:00 am ET

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J&J Snack Foods Corp. (NASDAQ:JJSF) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the J & J Snack Foods' Fourth Quarter Earnings Conference Call. My name is Sylvia and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.

(Operator Instructions)

Please note that this conference is being recorded.

I will now turn the call over to Gerry Shreiber. Mr. Shreiber, you may begin.

Executive
Gerry Shreiber

Thank you, Sylvia and welcome to the J&J quarterly conference call.

(Forward-Looking Cautionary Statements)

Results of operations, net sales increased 21% for the quarter and 9% for the year. Let me just repeat that for emphasis. Net sales increased 21% for the quarter and 9% for the year. This year's fourth quarter had 14 weeks compared to 13 weeks last year and the year had 53 weeks compared to 52 last year. This is a normal one-time every seven-year event when the extra week heads in. The additional week added about 9% to sales for the quarter and 2% for the year.

Excluding sales from the extra week, in 2017 sales increased approximately 12% for the fourth quarter and 7% for the year. Excluding sales from Hill & Valley, acquired in January 2017, and an ICEE distributor located in the Southeast acquired in June 2017, and Labriola Bakery, which was acquired in August 2017, sales increased approximately 6% for the quarter and 3% for the year.

Our EBITDA that's earnings before interest, taxes, depreciation and amortization for the past 12 months was a $164.8 million, once again establishing a new record.

Food service, without the extra week and without Hill & Valley and Labriola sales were up 11% for the quarter and 5% for the year. Sales to food service customers increased 30% for the quarter and our sales increase of 19% without Hill & Valley and Labriola was due to increased sales of soft pretzels, which were up double-digits; handhelds, which were up 81%; churros up 16%; bakery products up 20%; frozen juice bars and ices up 15%; and funnel cake up 33%. We had an exciting year in food service.

For the year food service sales were up 13% and without Hill & Valley and Labriola were up 7% with increase sales of soft pretzel up 5%; churros up 10%; handhelds up 35%; bakery products and funnel cake up 7% and 4% respectively. Sales of frozen juice bars and ices were down 4% for the year.

Retail grocery and supermarkets, sales of products to retail supermarkets were up 4% for the quarter and 1% for the year. Soft pretzel sales were up 23% for the quarter and 5% for the year, and sales of frozen juice bars and Italian ices were flat in the quarter and up 3% for the year. Handheld sales were up 7% for the quarter.

Frozen beverages which includes ICEE, Arctic Blast and Slush Puppie. Frozen beverage and related products sales were up 8% in the quarter and 4% for the year, 6% and 3% respectively without