J&J Snack Foods Corp. (NASDAQ:JJSF) Q4 2019 Earnings Conference Call Transcript

Nov 08, 2019 • 10:00 am ET

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J&J Snack Foods Corp. (NASDAQ:JJSF) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. And welcome to the J&J Snack Foods' Fourth Quarter Earnings Conference Call. My name is Cheryl and I will be your operator for today's call. [Operator Instructions]. Later we will conduct a question-and-answer session. [Operator Instructions]. I will now turn the call over to Dennis Moore. Sir, you may begin.

Executive
Gerald B Shreiber

This is Gerry Shreiber. Dennis Moore is here, but he's across the room giving Radano a kiss. But I can begin whenever you're ready. Cheryl?

Operator
Operator

Yes, I'm here sir.

Executive
Gerald B Shreiber

Good. Okay. This is Gerry Shreiber and I'm ready when you say go.

Operator
Operator

Okay. You're in the main conference sir, you can begin.

Executive
Gerald B Shreiber

Right. Good morning everyone and welcome to our fourth quarter conference. I am Gerry Shreiber and I will lead the discussion and then we'll turn it over to the people who are attending with me and they are in order; Bob Radano, who is our COO, Dennis Moore, our CFO; Bob Pape, our Senior Vice President of Sales; Jerry Law, Senior Vice President; Marjorie Roshkoff Shreiber who is our Head of Legal; and Bo Powell, who is our Sales Manager for our food service.

I will now begin the call with the following obligatory statements. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ from those projected in the forward-looking statements.

You are cautioned not to place undue reliance on these forward-looking statements which reflect management's analysis only as of this date. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof. Results of operations net sales increased 4% for the quarter and increased 4% for the year. Operating income in our fourth quarter was $31.1 million for both years and increased 6% to $117.0 million for the year.

Food service, sales to food service customers increased about 1% for the quarter. Sales of soft pretzels were down 4% and we had increased sales of funnel cake, up 6%, churros up 7%, frozen novelties up 3% and bakery products up 4%, handheld sales were down.

For the year, food service sales were up 2% with increased sales of soft pretzels, bakery products, funnel cake, frozen juice bars and churros. Handheld sales were down 19% for the year. Retail supermarkets which include grocery, sales of products to retail supermarket were up less than 1% for the quarter and down 1% for the year.

Soft pretzel sales were down 4% for the quarter and a 0.5% for the year. Excuse me a minute while I -- [Technical Issues] Sales of frozen juice bars and Italian ices were up 4% in the quarter and down 1% for the year.

Handheld sales were down 24% for the quarter and down 12% for the year. ICEE and frozen beverages which include Arctic Blast and slush puppie. Frozen beverage and related products sales were up 13% in the quarter and 13% for the year. Beverage related sales alone were up