J & J Snack Foods Corp. (NASDAQ:JJSF) yesterday reported record sales for the 29th consecutive year and lower earnings compared to its previous year.

Sales for the fiscal year ended September 30, 2000 (53 weeks) increased 11% to $321,112,000 from $288,439,000 in the fiscal year ended September 25, 1999 (52 weeks). Net earnings decreased 30% to $9,968,000 in fiscal 2000 from $14,264,000 in fiscal 1999. Operating income decreased 25% to $18,812,000 from $24,963,000 a year ago. On a per diluted share basis, earnings decreased 27% to $1.10 based on 9,063,000 shares this year from $1.50 on 9,530,000 shares last year.

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During the fourth quarter, the Company established reserves for its trade receivables from certain movie theatre chains and wrote down property held for sale to its net realizable value. Without the impact of reserving for the trade receivables from movie theatre chains and the writedown of property held for sale, operating income would have decreased 20% for the year to $19,865,000 from 1999 and net earnings in 2000 would have been $11,158,000, or $1.23 per diluted share.

For the fourth quarter ended September 30, 2000 (14 weeks), sales increased 17% to $97,342,000 from $82,888,000 in the fourth quarter ended September 25, 1999 (13 weeks). Net earnings decreased 48% to $3,552,000 in the current year quarter from $6,799,000 in last year’s comparable period. Operating income decreased 38% to $7,073,000 from $11,419,000 in the year ago period. Earnings per diluted share were $.41 based on 8,652,000 shares this year compared to $.72 based on 9,454,000 shares a year ago.

Without the impact of reserving for trade receivables from movie theatre chains and the writedown of property held for sale, operating income would have decreased 29% to $8,126,000 from 1999 and net earnings in the fourth quarter 2000 would have been $4,742,000, or $.55 per diluted share.

J & J’s EBITDA (net earnings before income taxes, interest expense, depreciation and amortization) was $49.0 Million or $5.40 per diluted share for the year.

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Gerald B. Shreiber, J & J’s President and Chief Executive Officer, commented, “By all measures, fiscal year 2000 was disappointing. Although our sales grew by over 10%, earnings dropped due to a combination of unrelated factors, including declines in our core foodservice product sales, disappointing ICEE beverage sales and manufacturing problems related to the startup of our Minute Maid®(1) brand licensed products.

We feel the progress made at our frozen dessert plant which manufactures the Minute Maid product and improvements in our foodservice and ICEE beverage businesses will result in improved profitability for fiscal year 2001.”

J & J Snack Foods Corp.’s principal products include SUPERPRETZEL soft pretzels, ICEE and ARCTIC BLAST frozen beverages, LUIGI’S, MAMA TISH’S, SHAPE-UPS, Minute Maid®(1) and Hi-C®(1) frozen juice bars and ices, TIO PEPE’S churros and MRS. GOODCOOKIE and CAMDEN CREEK cookies. J & J has manufacturing facilities in Pennsauken, New Jersey; Scranton and Hatfield, Pennsylvania; Carrollton, Texas and Vernon (Los Angeles), California. 

                Three Months Ended                 Year Ended
             ---------------------------   ---------------------------
               Sept. 30,     Sept. 25,        Sept. 30,    Sept. 25,
                 2000          1999             2000          1999
              (14 weeks)     (13 weeks)      (53 weeks)   (52 weeks)
             ---------------------------   ---------------------------
 Net Sales    $97,342,000    $82,888,000   $321,112,000   $288,439,000
 Net
  Earnings      3,552,000      6,799,000      9,968,000     14,264,000
 Earnings
  Per
  Diluted
  Share              $.41           $.72          $1.10          $1.50
 Weighted
  Average
  Number
  of
  Diluted
  Shares        8,652,000      9,454,000      9,063,000      9,530,000
 Earnings
  Per Basic
  Share              $.42           $.76          $1.13          $1.58
 Weighted
  Average
  Number
  of Basic
  Shares        8,530,000      8,985,000      8,819,000      9,025,000

The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof.

(1) Minute Maid and Hi-C are registered trademarks of The Coca-Cola