PENNSAUKEN, N.J. — While acknowledging that the company is “always thinking about M. and A.,” J&J Snack Foods Corp. is focused on growing its core business, Gerald B. Shreiber, chairman, president and chief executive officer, told analysts during a Nov. 9 conference call to discuss fiscal 2018 results.
A little more than a year ago J&J Snack acquired Labriola Baking Co., a baker of bread and artisan soft pretzels, and nearly two years ago it acquired Hill & Valley Inc., a manufacturer of pre-baked cakes, cookies, pies, muffins and other desserts to retail in-store bakeries.
Since that time, Mr. Shreiber said things have gone quiet on the acquisition front for a couple of reasons.
“We’ve looked at a couple of things in the past quarter to past six months,” he said in response to an analyst’s question about the current M. and A. environment. “And honestly, we rejected them because they weren’t nearly as good a fit as to what was presented, and there were some issues in there.”
Instead, Mr. Shreiber said J&J Snack has shifted its concentration to its base core business, which he described as “very, very good with one or two exceptions.”
“Looking at these other acquisitions that present themselves to us, … we look at these things fairly quickly with the mind toward integration in there,” he said. “And we’re certainly not going to do anything reckless. But there’s always a line of possible acquisitions that have to go through a significant vetting process with (Gerard G. Law, senior vice-president), with (Dennis G. Moore, senior vice-president and chief financial officer) and others in there. But we’ve made acquisitions in the past. Chances are we’ll be making them in the future.”
Net income at J&J Snack Foods in the year ended Sept. 29 totaled $103,596,000, equal to $5.54 per share on the common stock, up 31% from $79,174,000, or $4.23 per share, in fiscal 2017. Fiscal 2018 results benefited from a $20.9 million gain on the re-measurement of deferred tax liabilities and an $8.8 million reduction in income taxes related primarily to the lower corporate tax rate enacted under the Tax Cuts and Jobs Act in December 2017.
Net sales increased nearly 5% to $1,138,265,000 from $1,084,224,000.