SANFILIPPO JOHN B & SON INC [JBSS] Filings

10-Q 1 jbss-20230330.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 0-19681

JOHN B. SANFILIPPO & SON, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware	36-2419677
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1703 North Randall Road Elgin, Illinois	60123-7820
(Address of principal executive offices)	(Zip Code)

(847) 289-1800

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value per share

JBSS

The NASDAQ Stock Market LLC
(NASDAQ Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 28, 2023, 8,958,426 shares of the Registrant’s Common Stock, $0.01 par value per share and 2,597,426 shares of the Registrant’s Class A Common Stock, $0.01 par value per share, were outstanding.

JOHN B. SANFILIPPO & SON, INC.

FORM 10-Q

For the Quarter Ended March 30, 2023

INDEX


	Page
Part I. Financial Information
Item 1. Financial Statements (Unaudited)	3
Consolidated Statements of Comprehensive Income for the Quarter and Thirty-Nine Weeks Ended March 30, 2023 and March 24, 2022	3
Consolidated Balance Sheets as of March 30, 2023, June 30, 2022 and March 24, 2022	4
Consolidated Statements of Stockholders’ Equity for the Quarter and Thirty-Nine Weeks Ended March 30, 2023 and March 24, 2022	6
Consolidated Statements of Cash Flows for the Thirty-Nine Weeks Ended March 30, 2023 and March 24, 2022	7
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3. Quantitative and Qualitative Disclosures About Market Risk	29
Item 4. Controls and Procedures	29
Part II. Other Information
Item 1. Legal Proceedings	29
Item 1A. Risk Factors	29
Item 6. Exhibits	29
Signature	32

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

JOHN B. SANFILIPPO & SON, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(Dollars in thousands, except share and per share amounts)


	For the Quarter Ended						For the Thirty-Nine Weeks Ended
	March 30, 2023			March 24, 2022			March 30, 2023			March 24, 2022
Net sales	$	238,535		$	218,584		$	765,464		$	698,120
Cost of sales		188,767			179,175			608,551			554,678
Gross profit		49,768			39,409			156,913			143,442
Operating expenses:
Selling expenses		18,109			15,584			57,921			56,896
Administrative expenses		9,841			6,401			30,296			25,871
Gain on sale of facility, net		—			—			—			(2,349	)
Total operating expenses		27,950			21,985			88,217			80,418
Income from operations		21,818			17,424			68,696			63,024
Other expense:
Interest expense including $186, $199, $568 and $591 to related parties		552			531			1,828			1,322
Rental and miscellaneous expense, net		371			403			1,084			1,074
Pension expense (excluding service costs)		349			618			1,046			1,855
Total other expense, net		1,272			1,552			3,958			4,251
Income before income taxes		20,546			15,872			64,738			58,773
Income tax expense		4,814			3,995			16,554			14,400
Net income	$	15,732		$	11,877		$	48,184		$	44,373
Other comprehensive income:
Amortization of actuarial loss included in net periodic pension cost		7			363			21			1,091
Income tax expense related to pension adjustments		(2	)		(94	)		(5	)		(284	)
Other comprehensive income, net of tax		5			269			16			807
Comprehensive income	$	15,737		$	12,146		$	48,200		$	45,180
Net income per common share-basic	$	1.36		$	1.03		$	4.16		$	3.85
Net income per common share-diluted	$	1.35		$	1.02		$	4.14		$	3.83

The accompanying unaudited notes are an integral part of these consolidated financial statements.

JOHN B. SANFILIPPO & SON, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except share and per share amounts)


	March 30, 2023		June 30, 2022		March 24, 2022
ASSETS
CURRENT ASSETS:
Cash	$	365	$	415	$	667
Accounts receivable, less allowance for doubtful accounts of $305, $267 and $280		74,534		69,611		68,704
Inventories		190,351		204,855		211,127
Prepaid expenses and other current assets		9,325		8,283		7,653
TOTAL CURRENT ASSETS		274,575		283,164		288,151
PROPERTY, PLANT AND EQUIPMENT:
Land		9,150		9,150		9,150
Buildings		102,840		102,810		102,810
Machinery and equipment		259,289		245,111		230,842
Furniture and leasehold improvements		5,275		5,296		5,296
Vehicles		719		614		614
Construction in progress		8,210		6,471		18,077
		385,483		369,452		366,789
Less: Accumulated depreciation		263,718		252,371		249,358
		121,765		117,081		117,431
Rental investment property, less accumulated depreciation of $14,238, $13,632 and $13,431		14,885		15,491		15,692
TOTAL PROPERTY, PLANT AND EQUIPMENT		136,650		132,572		133,123

Intangible assets, net		7,100		8,065		8,509
Life insurance and other assets		6,029		8,272		6,472
Deferred income taxes		2,374		3,236		5,104
Goodwill		11,750		9,650		9,650
Operating lease right-of-use assets		6,582		2,303		2,570
TOTAL ASSETS	$	445,060	$	447,262	$	453,579

The accompanying unaudited notes are an integral part of these consolidated financial statements.

JOHN B. SANFILIPPO & SON, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except share and per share amounts)


	March 30, 2023			June 30, 2022			March 24, 2022
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving credit facility borrowings	$	27,825		$	40,439		$	65,863
Current maturities of long-term debt, net, including related party debt of $657, $614 and $600		657			3,149			3,961
Accounts payable		42,264			47,720			48,918
Bank overdraft		458			214			1,314
Accrued payroll and related benefits		17,061			18,888			12,646
Other accrued expenses		14,493			12,352			13,113
TOTAL CURRENT LIABILITIES		102,758			122,762			145,815

LONG-TERM LIABILITIES:
Long-term debt, less current maturities, net, including related party debt of $7,276, $7,774 and $7,933		7,276			7,774			7,933
Retirement plan		29,471			28,886			35,935
Long-term operating lease liabilities, net of current portion		4,905			1,076			1,241
Other		8,332			7,943			7,876
TOTAL LONG-TERM LIABILITIES		49,984			45,679			52,985
TOTAL LIABILITIES		152,742			168,441			198,800

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Class A Common Stock, convertible to Common Stock on a per share basis, cumulative voting rights of ten votes per share, $.01 par value; 10,000,000 shares authorized, 2,597,426 shares issued and outstanding		26			26			26
Common Stock, non-cumulative voting rights of one vote per share, $.01 par value; 17,000,000 shares authorized, 9,076,326, 9,047,359 and 9,046,420 shares issued		91			90			90
Capital in excess of par value		131,649			128,800			127,910
Retained earnings		164,220			153,589			136,175
Accumulated other comprehensive loss		(2,464	)		(2,480	)		(8,218	)
Treasury stock, at cost; 117,900 shares of Common Stock		(1,204	)		(1,204	)		(1,204	)
TOTAL STOCKHOLDERS’ EQUITY		292,318			278,821			254,779
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	445,060		$	447,262		$	453,579

The accompanying unaudited notes are an integral part of these consolidated financial statements.

JOHN B. SANFILIPPO & SON, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except share and per share amounts)


															Accumulated
	Class A								Capital in						Other
	Common Stock				Common Stock				Excess of			Retained			Comprehensive			Treasury
	Shares		Amount		Shares		Amount		Par Value			Earnings			Loss			Stock			Total
Balance, June 30, 2022		2,597,426	$	26		9,047,359	$	90	$	128,800		$	153,589		$	(2,480	)	$	(1,204	)	$	278,821
Net income													15,545									15,545
Cash dividends ($2.25 per share)													(25,981	)								(25,981	)
Pension liability amortization, net of income tax expense of $1																6						6
Stock-based compensation expense										772												772
Balance, September 29, 2022		2,597,426	$	26		9,047,359	$	90	$	129,572		$	143,153		$	(2,474	)	$	(1,204	)	$	269,163
Net income													16,907									16,907
Cash dividends ($1.00 per share)													(11,572	)								(11,572	)
Pension liability amortization, net of income tax expense of $2																5						5
Equity award exercises, net of shares withheld for employee taxes						24,709		1		(356	)											(355	)
Stock-based compensation expense										1,515												1,515
Balance, December 29, 2022		2,597,426	$	26		9,072,068	$	91	$	130,731		$	148,488		$	(2,469	)	$	(1,204	)	$	275,663
Net income													15,732									15,732
Pension liability amortization, net of income tax expense of $2																5						5
Equity award exercises, net of shares withheld for employee taxes						4,258		—		(23	)											(23	)
Stock-based compensation expense										941												941
Balance, March 30, 2023		2,597,426	$	26		9,076,326	$	91	$	131,649		$	164,220		$	(2,464	)	$	(1,204	)	$	292,318

Accumulated

SANFILIPPO JOHN B & SON INC [JBSS] Filings
10-Q	[2023-05-02]
10-Q	[2023-02-01]
10-Q	[2022-11-03]
10-K	[2022-08-24]
10-Q	[2022-04-27]
10-Q	[2022-01-27]
10-Q	[2021-10-27]
10-K	[2021-08-18]
10-Q	[2021-04-28]
10-Q	[2021-01-27]
10-Q	[2020-10-28]
10-K	[2020-08-19]
10-Q	[2020-04-30]
10-Q	[2020-01-30]
10-Q	[2019-10-30]
10-K	[2019-08-21]
10-Q	[2019-05-01]
10-Q	[2019-01-30]
10-Q	[2018-11-01]
10-K	[2018-08-22]
10-Q	[2018-05-03]
10-Q	[2018-02-05]
10-Q	[2017-11-02]
10-K	[2017-08-23]
10-Q	[2017-05-03]
10-Q	[2017-02-01]
10-Q	[2016-11-02]
10-K	[2016-08-24]
10-Q	[2016-04-26]
10-Q	[2016-01-28]
10-Q	[2015-10-28]
10-K	[2015-08-21]
10-Q	[2015-04-29]
10-Q	[2015-01-28]
10-Q	[2014-10-29]
10-K	[2014-08-27]
10-Q	[2014-04-30]
10-Q	[2014-01-29]
10-Q	[2013-11-01]
10-K	[2013-08-28]
10-Q	[2013-05-01]
10-Q	[2013-01-31]
10-Q	[2012-10-31]
10-K	[2012-08-30]
10-Q	[2012-05-01]
10-Q	[2012-02-01]

SANFILIPPO JOHN B & SON INC [JBSS] Filings

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