ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
Title of Each Class |
Trading Symbol |
Name of Each Exchange on Which Registered | ||
(NASDAQ Global Select Market) |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
• | References herein to fiscal 2022 are to the fiscal year ending June 30, 2022. |
• | References herein to fiscal 2021, fiscal 2020 and fiscal 2019 are to the fiscal years ended June 24, 2021, June 25, 2020 and June 27, 2019, respectively. |
Location |
Square Footage |
Type of Interest |
Description of Principal Use |
Date Company Constructed, Acquired or First Occupied |
||||||||
Bainbridge, Georgia |
300,000 | Owned and Leased |
Peanut shelling, purchasing, processing, packaging, warehousing and distribution | 1987 | ||||||||
Garysburg, North Carolina (1) |
160,000 | Owned | Formerly used for peanut shelling, purchasing, warehousing and distribution | 1994 | ||||||||
Selma, Texas (2) |
300,000 | Leased | Pecan shelling, processing, bulk packaging, warehousing and distribution | 1992 | ||||||||
Gustine, California |
215,000 | Owned | Walnut shelling, processing, packaging, warehousing and distribution | 1993 | ||||||||
Elgin, Illinois (3) (Elgin Office Building) |
400,000 | Owned | Rental property | 2005 | ||||||||
Elgin, Illinois (Elgin Warehouse Building) |
1,001,000 | Owned | Processing, packaging, warehousing, distribution and corporate offices |
2005 |
(1) | After the fire that occurred at our Garysburg facility during fiscal 2020, the Company considered strategic alternatives for the facility and decided to cease all operations permanently at the end of fiscal 2021. As of June 24, 2021, the facility and its related assets have been reclassified as held for sale on the Consolidated Balance Sheets. See Note 19 — “Garysburg, North Carolina Facility” to the Consolidated Financial Statements. |
(2) | The sale and lease back of the Selma properties to related party partnerships was consummated in fiscal 2007. See Note 7 —“Long-Term Debt” to the Consolidated Financial Statements. |
(3) | The Elgin Office Building (part of the Elgin Site) was acquired in April 2005. Approximately 70% of the Elgin Office Building is currently vacant. Approximately 29% of the rentable area has not been built-out. The vacant portion of the office building may be leased to third parties; however, there can be no assurance that we will be able to lease the unoccupied space. Further capital expenditures will likely be necessary to fully lease the remaining space. |
* | $100 invested on July 1, 2016 in stock or June 30, 2016 in index, including reinvestment of dividends. |
• | On July 10, 2019 our Board of Directors declared an annual and special cash dividend of $0.60 and $2.40, respectively, that was paid to holders of Common Stock and Class A Stock on August 20, 2019. |
• | On October 29, 2019 our Board of Directors declared a special cash dividend of $2.00 that was paid to holders of Common Stock and Class A Stock on December 10, 2019. |
• | On April 29, 2020 our Board of Directors declared a special cash dividend of $1.00 that was paid to holders of Common Stock and Class A Stock on June 17, 2020. |
• | On July 9, 2020 our Board of Directors declared an annual and special cash dividend of $0.65 and $1.85, respectively, that was paid to holders of Common Stock and Class A Stock on August 21, 2020. |
• | On January 27, 2021 our Board of Directors declared a special cash dividend of $2.50 that was paid to holders of Common Stock and Class A Stock on March 16, 2021. |
• | Subsequent to the end of fiscal 2021, the Board of Directors declared an annual and special cash dividend of $0.70 and $2.30 per share, respectively, that will be paid to holders of our Common Stock and Class A Stock on August 25, 2021. |
Plan Category |
(a) Number of securities to be issued upon exercise of options, warrants and rights |
(b) Weighted average exercise price of outstanding options, warrants and rights |
(c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in Column (a)) |
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Equity compensation plans approved by stockholders — stock options |
— | — | 645,841 | |||||||||
Equity compensation plans approved by stockholders — restricted stock units |
159,846 | — | 645,841 | |||||||||
Equity compensation plans not approved by stockholders |
— | — | — |
Year Ended |
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June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
June 28, 2018 |
June 29, 2017 |
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Net sales |
$ | 858,482 | $ | 880,092 | $ | 876,201 | $ | 888,931 | $ | 846,635 | ||||||||||
Cost of sales |
673,495 | 704,317 | 717,931 | 750,032 | 704,712 | |||||||||||||||
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|
|
|
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Gross profit |
184,987 | 175,775 | 158,270 | 138,899 | 141,923 | |||||||||||||||
Selling and administrative expenses |
99,809 | 97,228 | 99,746 | 82,710 | 81,446 | |||||||||||||||
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|
|
|
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Income from operations |
85,178 | 78,547 | 58,524 | 56,189 | 60,477 | |||||||||||||||
Interest expense |
1,441 | 2,005 | 3,060 | 3,463 | 2,910 | |||||||||||||||
Rental and miscellaneous expense, net |
1,399 | 1,565 | 1,089 | 1,406 | 1,296 | |||||||||||||||
Other expense |
2,519 | 2,266 | 1,947 | 1,970 | 2,133 | |||||||||||||||
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|
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|
|
|
|
|
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Income before income taxes |
79,819 | 72,711 | 52,428 | 49,350 | 54,138 | |||||||||||||||
Income tax expense |
20,078 | 18,601 | 12,962 | 16,850 | 18,013 | |||||||||||||||
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|
|
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|
|
|
|
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Net income |
$ | 59,741 | $ | 54,110 | $ | 39,466 | $ | 32,500 | $ | 36,125 | ||||||||||
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Basic earnings per common share |
$ | 5.19 | $ | 4.72 | $ | 3.45 | $ | 2.86 | $ | 3.19 | ||||||||||
Diluted earnings per common share |
$ | 5.17 | $ | 4.69 | $ | 3.43 | $ | 2.84 | $ | 3.17 | ||||||||||
Cash dividends declared per share |
$ | 5.00 | $ | 6.00 | $ | 2.55 | $ | 2.50 | $ | 5.00 |
June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
June 28, 2018 |
June 29, 2017 |
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Working capital |
$ | 124,963 | $ | 126,703 | $ | 141,434 | $ | 130,689 | $ | 143,504 | ||||||||||
Total assets |
398,455 | 407,457 | 391,304 | 415,853 | 398,059 | |||||||||||||||
Long-term debt, less current maturities |
10,855 | 14,730 | 20,381 | 27,356 | 25,211 | |||||||||||||||
Total debt |
23,383 | 47,023 | 27,719 | 65,803 | 58,085 | |||||||||||||||
Stockholders’ equity |
242,494 | 238,238 | 254,555 | 243,002 | 235,468 |
• | References herein to fiscal 2021, fiscal 2020 and fiscal 2019 are to the fiscal years for the 52 weeks ended June 24, 2021, June 25, 2020 and June 27, 2019, respectively. |
• | References herein to fiscal 2022 are to the fiscal year for the 53 weeks ending June 30, 2022. |
• | Almonds, pecans and walnuts require a minimum of approximately 200, 250 and 700 chilling hours, respectively, during the winter to allow for an adequate amount of dormancy time so the tress can rest. |
• | Peanuts require adequate rainfall or access to water for irrigation for the period starting about 7 weeks after planting and ending about 15 weeks after planting. |
• | Cashews require a minimum of approximately 2,000 hours of sunlight per year. Sunlight is especially critical during the flowering period. |
• | Almonds require bees for pollination. For bees to pollinate effectively during the bloom period, temperatures cannot be less than about 55 degrees Fahrenheit, winds cannot exceed about 15 MPH, and there must be little or no rainfall during that period. |
• | Cranberries require adequate snow and ice coverage during the winter to protect vines from freezing. |
• | Raisins require hot days (about 93 – 100 degrees Fahrenheit) and cool nights (about 55 – 65 degrees Fahrenheit) during the growing season for optimum quality and sugar levels. |
• | Our net sales for fiscal 2021 decreased $21.6 million, or 2.5%, to $858.5 million compared to fiscal 2020. |
• | Gross profit increased $9.2 million, and our gross profit margin, as a percentage of net sales, increased to 21.5% in fiscal 2021 from 20.0% in fiscal 2020. |
• | Total operating expenses for fiscal 2021 increased $2.6 million, or 2.7%, to $99.8 million. Operating expenses, as a percentage of net sales, increased to 11.6% compared to 11.0% of net sales in fiscal 2020. |
• | Diluted earnings per share increased approximately 10.2% compared to last fiscal year. |
• | Our strong financial position allowed us to pay cash dividends of $57.5 million during fiscal 2021. |
• | The total value of inventories on hand at the end of fiscal 2021 decreased $24.1 million, or 14.0%, in comparison to the total value of inventories on hand at the end of fiscal 2020. |
Percentage of Net Sales |
Percentage Change |
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Fiscal 2021 |
Fiscal 2020 |
Fiscal 2019 |
Fiscal 2021 vs. 2020 |
Fiscal 2020 vs. 2019 |
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Net sales |
100.0 | % | 100.0 | % | 100.0 | % | (2.5 | )% | 0.4 | % | ||||||||||
Gross profit |
21.5 | 20.0 | 18.1 | 5.2 | 11.1 | |||||||||||||||
Selling expenses |
7.3 | 6.7 | 7.1 | 6.3 | (4.0 | ) | ||||||||||||||
Administrative expenses |
4.3 | 4.3 | 4.3 | (3.0 | ) | (0.2 | ) |
Product Type |
Fiscal 2021 |
Fiscal 2020 |
||||||
Peanuts |
19.3 | % | 18.2 | % | ||||
Pecans |
10.0 | 10.3 | ||||||
Cashews & Mixed Nuts |
23.3 | 23.2 | ||||||
Walnuts |
6.2 | 7.2 | ||||||
Almonds |
10.8 | 14.7 | ||||||
Trail & Snack Mixes |
24.7 | 21.1 | ||||||
Other |
5.7 | 5.3 | ||||||
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|
|
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Total |
100.0 | % | 100.0 | % | ||||
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|
|
|
Distribution Channel |
Fiscal 2021 |
Fiscal 2021 Percent of Total |
Fiscal 2020 |
Fiscal 2020 Percent of Total |
$ Change |
Fiscal 2021 to Fiscal 2020 Percent Change |
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Consumer (1 ) |
$ | 686,049 | 79.9 | % | $ | 673,989 | 76.6 | % | $ | 12,060 | 1.8 | % | ||||||||||||
Commercial Ingredients |
92,911 | 10.8 | 118,464 | 13.5 | (25,553 | ) | (21.6 | ) | ||||||||||||||||
Contract Packaging |
79,522 | 9.3 | 87,639 | 9.9 | (8,117 | ) | (9.3 | ) | ||||||||||||||||
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Total |
$ | 858,482 | 100.0 | % | $ | 880,092 | 100.0 | % | $ | (21,610 | ) | (2.5 | )% | |||||||||||
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(1) | Sales of branded products were approximately 24% and 27% of total consumer channel sales during fiscal 2021 and 2020, respectively. Fisher Orchard Valley Harvest |
June 24, 2021 |
June 25, 2020 |
2021 to 2020 $ Change |
||||||||||
Operating activities |
$ | 104,697 | $ | 63,613 | $ | 41,084 | ||||||
Investing activities |
(22,950 | ) | (14,049 | ) | (8,901 | ) | ||||||
Financing activities |
(82,610 | ) | (49,620 | ) | (32,990 | ) | ||||||
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|
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Total change in cash |
$ | (863 | ) | $ | (56 | ) | $ | (807 | ) | |||
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|
Total |
Less Than 1 Year |
1-3 Years |
3-5 Years |
More Than 5 Years |
||||||||||||||||
Long-term debt obligations (1) |
$ | 19,831 | $ | 4,793 | $ | 5,312 | $ | 2,727 | $ | 6,999 | ||||||||||
Minimum operating lease commitments |
3,739 | 1,545 | 1,865 | 325 | 4 | |||||||||||||||
Revolving credit facility borrowings |
8,653 | 8,653 | — | — | — | |||||||||||||||
Purchase obligations (2) |
240,492 | 240,492 | — | — | — | |||||||||||||||
Retirement plans (3) |
35,628 | 709 | 1,465 | 2,775 | 30,679 | |||||||||||||||
Other |
284 | 94 | 98 | 52 | 40 | |||||||||||||||
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|
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Total contractual cash obligations |
$ | 308,627 | $ | 256,286 | $ | 8,740 | $ | 5,879 | $ | 37,722 | ||||||||||
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(1) | See Note 7 — “Long-Term Debt” of the Notes to Consolidated Financial Statements for further detail on the Company’s long-term debt obligations. |
(2) | The purchase obligations primarily represent inventory purchase commitments; however, these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity. |
(3) | Represents projected retirement obligations. See Note 13 — “Employee Benefit Plans” and Note 14 — “Retirement Plan” of the Notes to Consolidated Financial Statements for further details. |
/s/ PricewaterhouseCoopers LLP |
June 24, 2021 |
June 25, 2020 |
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ASSETS |
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CURRENT ASSETS: |
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Cash |
$ | $ | ||||||
Accounts receivable, less allowance for doubtful accounts of $ |
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Inventories |
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Prepaid expenses and other current assets |
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Assets held for sale |
— | |||||||
TOTAL CURRENT ASSETS |
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PROPERTY, PLANT AND EQUIPMENT: |
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Land |
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Buildings |
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Machinery and equipment |
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Furniture and leasehold improvements |
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Vehicles |
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Construction in progress |
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Less: Accumulated depreciation |
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Rental investment property, less accumulated depreciation of $ |
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TOTAL PROPERTY, PLANT AND EQUIPMENT |
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OTHER LONG TERM ASSETS: |
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Intangible assets, net |
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Cash surrender value of officers’ life insurance and other assets |
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Deferred income taxes |
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Goodwill |
||||||||
Operating lease right-of-use |
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TOTAL ASSETS |
$ | $ | ||||||
June 24, 2021 |
June 25, 2020 |
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LIABILITIES & STOCKHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Revolving credit facility borrowings |
$ | $ | ||||||
Current maturities of long-term debt, including related party debt of $ |
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Accounts payable |
||||||||
Bank overdraft |
||||||||
Accrued payroll and related benefits |
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Other accrued expenses |
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TOTAL CURRENT LIABILITIES |
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LONG-TERM LIABILITIES: |
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Long-term debt, less current maturities, including related party debt of $ |
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Retirement plan |
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Long-term operating lease liabilities, net of current portion |
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Other |
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TOTAL LONG-TERM LIABILITIES |
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TOTAL LIABILITIES |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS’ EQUITY: |
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Class A Common Stock, convertible to Common Stock on a per share basis, cumulative voting rights of ten votes per share, $ p ar value; |
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Common Stock, non-cumulative voting rights of one vote per share, $ |
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Capital in excess of par value |
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Retained earnings |
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Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Treasury stock, at cost; |
( |
) | ( |
) | ||||
TOTAL STOCKHOLDERS’ EQUITY |
||||||||
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
$ | $ | ||||||
Year Ended June 24, 2021 |
Year Ended June 25, 2020 |
Year Ended June 27, 2019 |
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Net sales |
$ | $ | $ | |||||||||
Cost of sales |
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Gross profit |
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Operating expenses: |
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Selling expenses |
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Administrative expenses |
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Total operating expenses |
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Income from operations |
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Other expense: |
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Interest expense including $ |
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Rental and miscellaneous expense, net |
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Other expense |
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Total other expense, net |
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Income before income taxes |
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Income tax expense |
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Net income |
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Other comprehensive loss, net of tax: |
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Amortization of prior service cost and actuarial loss included in net periodic pension cost |
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Net actuarial loss arising during the period |
( |
) | ( |
) | ( |
) | ||||||
Other comprehensive loss, net of tax |
( |
) | ( |
) | ( |
) | ||||||
Comprehensive income |
$ | $ | $ | |||||||||
Net income per common share — basic |
$ | $ | $ | |||||||||
Net income per common share — diluted |
$ | $ | $ | |||||||||
Cash dividends declared per share |
$ | $ | $ | |||||||||
Weighted average shares outstanding — basic |
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Weighted average shares outstanding — diluted |
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Class A Common Stock |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Treasury Stock |
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Shares |
Amount |
Shares |
Amount |
Total |
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Balance, June 28, 2018 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||||
Net income |
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Cash dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $ |
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Pension liability adjustment, net of income tax benefit of $ |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Equity award exercises, net of shares withheld for employee taxes |
— | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Stock-based compensation expense |
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Balance, June 27, 2019 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||||||
Cash dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $ |
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Pension liability adjustment, net of income tax benefit of $ |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Equity award exercises, net of shares withheld for employee taxes |
— | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Impact of adopting ASU 2018-02 |
( |
) | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
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Balance, June 25, 2020 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||||||
Cash dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Pension liability amortization, net of income tax expense of $ |
||||||||||||||||||||||||||||||||||||
Pension liability adjustment, net of income tax benefit of $ |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Equity award exercises, net of shares withheld for employee taxes |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense |
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Balance, June 24, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||||||
Year Ended June 24, 2021 |
Year Ended June 25, 2020 |
Year Ended June 29, 2019 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
Net income |
$ | $ | $ | |||||||||
Depreciation and amortization |
||||||||||||
Gain on disposition of properties, net |
( |
) | ( |
) | ( |
) | ||||||
Deferred income tax expense (benefit) |
( |
) | ||||||||||
Stock-based compensation expense |
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Change in assets and liabilities: |
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Accounts receivable, net |
( |
) | ||||||||||
Inventories |
( |
) | ||||||||||
Prepaid expenses and other current assets |
( |
) | ( |
) | ( |
) | ||||||
Accounts payable |
( |
) | ( |
) | ||||||||
Accrued expenses |
( |
) | ||||||||||
Income taxes receivable/payable |
( |
) | ||||||||||
Other long-term liabilities |
( |
) | ( |
) | ||||||||
Other long-term assets |
( |
) | ||||||||||
Other, net |
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Net cash provided by operating activities |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||
Purchases of property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from insurance recoveries |
||||||||||||
Other, net |
( |
) | ( |
) | ||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
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Net short-term (repayments) borrowings |
( |
) | ( |
) | ||||||||
Debt issue costs |
— | ( |
) | — | ||||||||
Principal payments on long-term debt |
( |
) | ( |
) | ( |
) | ||||||
(Decrease) increase in bank overdraft |
( |
) | ( |
) | ||||||||
Dividends paid |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from the exercise of stock options |
— | — | ||||||||||
Taxes paid related to net share settlement of equity awards |
( |
) | ( |
) | ( |
) | ||||||
Net cash used in financing activities |
( |
) | ( |
) | ( |
) | ||||||
NET (DECREASE) INCREASE IN CASH |
( |
) | ( |
) | ||||||||
Cash, beginning of period |
||||||||||||
Cash, end of period |
$ | $ | $ | |||||||||
Supplemental disclosures of cash flow information: |
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Interest paid |
$ | $ | $ | |||||||||
Income taxes paid, excluding refunds of $ |
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Supplemental disclosure of non-cash activities: |
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Right-of-use No. 2016-02 transition |
— | — |
Year Ended June 24, 2021 |
Year Ended June 25, 2020 |
Year Ended June 27, 2019 |
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Depreciation expense |
$ | $ | $ | |||||||||
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|
Classification |
Estimated Useful Lives |
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Buildings |
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Machinery and equipment |
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Furniture and leasehold improvements |
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Vehicles |
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Computers and software |
Level 1- | Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. |
Level 2- | Observable inputs other than quoted prices in active markets. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. |
Level 3- | Unobservable inputs for which there is little or no market data available. |
June 24, 2021 |
June 25, 2020 |
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Carrying value of long-term debt: |
$ | $ | ||||||
Fair value of long-term debt: |
Year ended June 24, 2021 |
Year ended June 25, 2020 |
Year ended June 27, 2019 |
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Marketing and advertising expense |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Year ended June 24, 2021 |
Year ended June 25, 2020 |
Year ended June 27, 2019 |
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Shipping and handling costs |
$ | $ | $ | |||||||||
Year ended June 24, 2021 |
Year ended June 25, 2020 |
Year ended June 27, 2019 |
||||||||||
Research and development expense |
$ | $ | $ | |||||||||
Year ended June 24, 2021 |
Year ended June 25, 2020 |
Year ended June 27, 2019 |
||||||||||
Weighted average number of shares outstanding — basic |
||||||||||||
Effect of dilutive securities: |
||||||||||||
Stock options and restricted stock units |
||||||||||||
Weighted average number of shares outstanding — diluted |
||||||||||||
Year ended June 24, 2021 |
Year ended June 25, 2020 |
Year ended June 27, 2019 |
||||||||||
Weighted average number of anti-dilutive shares: |
||||||||||||
Weighted average exercise price per share: |
$ |
$ |
$ |
• | branded products under our own proprietary brands to retailers on a national basis; |
• | private label products to retailers, such as supermarkets, mass merchandisers, and specialty retailers, for resale under the retailers’ own or controlled labels; |
• | private label and branded products to the foodservice industry, including foodservice distributors and national restaurant operators; |
• | branded products under co-pack agreements to other major branded companies for their distribution; and |
• | products to our industrial customer base for repackaging in portion control packages and for use as ingredients by other food manufacturers. |
For the Year Ended |
||||||||
Distribution Channel |
June 24, 2021 |
June 25, 2020 |
||||||
Consumer |
$ | $ | ||||||
Commercial Ingredients |
||||||||
Contract Packaging |
||||||||
Total |
$ | $ | ||||||
June 24, 2021 |
June 25, 2020 |
Affected Line Item in Consolidated Balance Sheet | ||||||||
Assets |
||||||||||
Operating lease right-of-use |
$ | $ | Operating lease right-of-use | |||||||
Total lease right-of-use |
$ | $ | ||||||||
Liabilities |
||||||||||
Current: |
||||||||||
Operating leases |
$ | $ | Other accrued expenses | |||||||
Noncurrent: |
||||||||||
Operating leases |
Long-term operating lease liabilities | |||||||||
Total lease liabilities |
$ | $ | ||||||||
For the Year Ended June 24, 2021 |
For the Year Ended June 25, 2020 |
|||||||
Operating lease costs (a) |
$ | $ | ||||||
Variable lease costs (b) |
||||||||
Total Lease Cost |
$ | $ | ||||||
(a) |
Includes short-term leases which are immaterial. |
(b) |
Variable lease costs consist of sales tax. |
For the Year Ended June 24, 2021 |
For the Year Ended June 25, 2020 |
|||||||
Operating cash flows information: |
||||||||
Cash paid for amounts included in measurements for lease liabilities |
$ | $ | ||||||
Non-cash activity: |
||||||||
Right-of-use |
$ | $ |
June 24, 2021 |
June 25, 2020 |
|||||||
Weighted Average Remaining Lease Term (in years) |
||||||||
Weighted Average Discount Rate |
% | % |
Fiscal year ending |
||||
June 30, 2022 |
$ | |||
June 29, 2023 |
||||
June 27, 2024 |
||||
June 26, 2025 |
||||
June 25, 2026 |
||||
Thereafter |
||||
Total lease payments |
||||
Less imputed interest |
( |
) | ||
Present value of operating lease liabilities |
$ | |||
For the Year Ended June 24, 2021 |
For the Year Ended June 25, 2020 |
|||||||
Lease income related to lease payments |
$ | $ |
Fiscal year ending |
||||
June 30, 2022 |
$ | |||
June 29, 2023 |
||||
June 27, 2024 |
||||
June 26, 2025 |
||||
June 25, 2026 |
||||
Thereafter |
||||
$ | |
|||
June 24, 2021 |
June 25, 2020 |
|||||||
Raw material and supplies |
$ | $ | ||||||
Work-in-process |
||||||||
$ | $ | |||||||
June 24, 2021 |
June 25, 2020 |
|||||||
Customer relationships |
$ | $ | ||||||
Non-compete agreements |
||||||||
Brand names |
||||||||
Total intangible assets, gross |
||||||||
Less accumulated amortization: |
||||||||
Customer relationships |
( |
) | ( |
) | ||||
Non-compete agreements |
( |
) | ( |
) | ||||
Brand names |
( |
) | ( |
) | ||||
Total accumulated amortization |
( |
) | ( |
) | ||||
Net intangible assets |
$ | $ | ||||||
Year ended June 24, 2021 |
Year ended June 25, 2020 |
Year ended June 27, 2019 |
||||||||||
Amortization of intangible assets |
$ | $ | $ | |||||||||
Fiscal year ending |
||||
June 30, 2022 |
||||
June 29, 2023 |
||||
June 27, 2024 |
||||
June 26, 2025 |
||||
June 25, 2026 |
Gross goodwill balance at June 28, 2019 |
$ | |
||
Accumulated impairment losses |
( |
) | ||
Net balance at June 28, 2019 |
||||
Fiscal 2020 and 2021 activity |
||||
Balance at June 24, 2021 |
$ | |||
June 24, 2021 |
June 25, 2020 |
|||||||
Mortgage Facility (“Tranche A”), collateralized by real property, due in monthly installments of $ |
$ | $ | ||||||
Mortgage Facility (“Tranche B”), collateralized by real property, due in monthly installments of $ |
||||||||
Squirrel Brand Seller-Financed Note (“Promissory Note”), unsecured, due in monthly principal installments of $ |
||||||||
Selma, Texas facility financing obligation to related parties, due in monthly installments of $ |
||||||||
Unamortized debt issuance costs |
( |
) | ( |
) | ||||
Less: Current maturities, net of unamortized debt issuance costs |
( |
) | ( |
) | ||||
Total long-term debt, net of unamortized debt issuance costs |
$ | $ | ||||||
June 30, 2022 |
||||
June 29, 2023 |
||||
June 27, 2024 |
||||
June 26, 2025 |
||||
June 25, 2026 |
||||
Thereafter |
||||
$ | ||||
For the Year Ended: |
||||||||||||
June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
||||||||||
Current: |
||||||||||||
Federal |
$ |
$ |
$ |
|||||||||
State |
||||||||||||
Total current expense |
||||||||||||
Deferred: |
||||||||||||
Deferred federal |
||||||||||||
Deferred state |
( |
) |
( |
) |
( |
) | ||||||
Total deferred expense (benefit) |
( |
) | ||||||||||
Total income tax expense |
$ |
$ |
$ |
|||||||||
June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
||||||||||
Federal statutory income tax rate |
% |
% |
% | |||||||||
State income taxes, net of federal benefit |
||||||||||||
Section 162(m) limitation |
||||||||||||
Research and development tax credit |
( |
) |
( |
) |
( |
) | ||||||
Windfall tax benefits |
( |
) |
( |
) |
( |
) | ||||||
Uncertain tax positions |
||||||||||||
Other |
( |
) |
( |
) | ||||||||
Effective tax rate |
% |
% |
% | |||||||||
June 24, 2021 |
June 25, 2020 |
|||||||
Deferred tax assets (liabilities): |
||||||||
Accounts receivable |
$ | $ | ||||||
Employee compensation |
||||||||
Inventory |
||||||||
Depreciation and amortization |
( |
) | ( |
) | ||||
Capitalized leases |
||||||||
Goodwill and intangible assets |
||||||||
Retirement plan |
||||||||
Workers’ compensation |
||||||||
Share based compensation |
||||||||
Other |
||||||||
Net deferred tax asset |
||||||||
June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
||||||||||
Beginning balance |
$ | $ | $ | |||||||||
Gross increases — tax positions in prior year |
— | |||||||||||
Gross decreases — tax positions in prior year |
— | ( |
) | ( |
) | |||||||
Settlements |
— | — | — | |||||||||
Gross increases — tax positions in current year |
||||||||||||
Lapse of statute of limitations |
( |
) | ( |
) | — | |||||||
Ending balance |
$ | $ | $ | |||||||||
June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
||||||||||
Unrecognized tax benefits that would affect annual effective tax rate |
$ | $ | $ |
Restricted Stock Units |
Shares |
Weighted- Average Grant-Date Fair Value |
||||||
Outstanding at June 25, 2020 |
$ | |||||||
Granted |
||||||||
Vested (a) |
( |
) | ||||||
Forfeited |
( |
) | ||||||
Outstanding at June 24, 2021 |
$ | |||||||
(a) | The number of RSUs vested includes shares that were withheld on behalf of employees to satisfy statutory tax withholding requirements. |
Year ended June 24, 2021 |
Year ended June 25, 2020 |
Year ended June 27, 2019 |
||||||||||
Compensation cost charged to earnings |
$ | $ | $ | |||||||||
Income tax benefit recognized |
Declaration Date |
Record Date |
Dividend Per Share (a) |
Total Amount |
Payment Date | ||||||||
$ | $ | |||||||||||
$ | $ | |||||||||||
$ | $ | |||||||||||
$ | $ | |||||||||||
$ | $ |
(a) | The dividends declared on July 10, 2019 and July 9, 2020 include both the annual and special dividend declared on such date. |
Year ended June 24, 2021 |
Year ended June 25, 2020 |
Year ended June 27, 2019 |
||||||||||
401(k) plan expense |
$ | $ | $ |
June 24, 2021 |
June 25, 2020 |
|||||||
Change in projected benefit obligation |
||||||||
Projected benefit obligation at beginning of year |
$ | $ | ||||||
Service cost |
||||||||
Interest cost |
||||||||
Actuarial loss |
||||||||
Benefits paid |
( |
) | ( |
) | ||||
Projected benefit obligation at end of year |
$ | $ | ||||||
June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
||||||||||
Actuarial Loss |
||||||||||||
Change in assumed pay increases |
$ |
$ |
$ |
|||||||||
Change in discount rate |
( |
) |
||||||||||
Change in mortality assumptions |
( |
) |
( |
) |
( |
) | ||||||
Other |
||||||||||||
Actuarial loss |
$ |
$ |
$ |
|||||||||
June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
||||||||||
Service cost |
$ |
$ |
$ |
|||||||||
Interest cost |
||||||||||||
Recognized loss amortization |
||||||||||||
Prior service cost amortization |
||||||||||||
Net periodic pension cost |
$ |
$ |
$ |
|||||||||
June 24, 2021 |
June 25, 2020 | |||
Discount rate |
||||
Average rate of compensation increases |
||||
Bonus payment |
of base, paid 4 of 5 years |
of base, paid 4 of 5 years |
June 24, 2021 |
June 25, 2020 |
June 27, 2019 | ||||
Discount rate |
||||||
Rate of compensation increases |
||||||
Mortality |
white collar with MP- 2019 scale |
white collar with MP- 2018 scale |
white collar with MP- 2017 scale | |||
Bonus payment |
base, paid 4 of 5 years |
ofbase, paid 4 of 5 years |
ofbase, paid 4 of 5 years | of
Fiscal year |
||||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 — 2031 |
June 24, 2021 |
June 25, 2020 |
|||||||
Unrecognized net loss |
$ | ( |
) | $ | ( |
) | ||
Unrecognized prior service cost |
— | ( |
) | |||||
Tax effect |
||||||||
Net amount unrecognized |
$ | ( |
) | $ | ( |
) | ||
Changes to AOCL (a) |
Year Ended June 24, 2021 |
Year Ended June 25, 2020 |
||||||
Balance at beginning of period |
$ | ( |
) | $ | ( |
) | ||
Other comprehensive loss before reclassifications |
( |
) | ( |
) | ||||
Amounts reclassified from accumulated other comprehensive loss |
||||||||
Tax effect |
||||||||
Net current-period other comprehensive loss |
( |
) | ( |
) | ||||
Impact of adopting ASU 2018-02 |
— | ( |
) | |||||
Balance at end of period |
$ | ( |
) | $ | ( |
) | ||
(a) | Amounts in parenthesis indicate debits/expense. |
Reclassifications from AOCL to earnings (b) |
Year Ended June 24, 2021 |
Year Ended June 25, 2020 |
Affected line item in the Consolidated Statements of Comprehensive Income |
|||||||||
Amortization of defined benefit pension items: |
||||||||||||
Unrecognized prior service cost |
$ | ( |
) | $ | ( |
) | Other expense | |||||
Unrecognized net loss |
( |
) | ( |
) | Other expense | |||||||
Total before tax |
( |
) | ( |
) | ||||||||
Tax effect |
Income tax expense | |||||||||||
Amortization of defined pension items, net of tax |
$ | ( |
) | $ | ( |
) | ||||||
(b) | Amounts in parenthesis indicate debits to expense. See Note 14 — “Retirement Plan” above for additional details. |
Product Type |
June 24, 2021 |
June 25, 2020 |
June 27, 2019 |
|||||||||
Peanuts |
% | % | % | |||||||||
Pecans |
||||||||||||
Cashews & Mixed Nuts |
||||||||||||
Walnuts |
||||||||||||
Almonds |
||||||||||||
Trail & Snack Mixes |
||||||||||||
Other |
||||||||||||
% | % | % | ||||||||||
Description |
Balance at Beginning of Period |
Additions |
Deductions |
Balance at End of Period |
||||||||||||
June 24, 2021 |
||||||||||||||||
Allowance for doubtful accounts |
$ | $ | $ | ( |
) | $ | ||||||||||
Reserve for cash discounts |
( |
) | ||||||||||||||
Reserve for customer deductions |
( |
) | ||||||||||||||
Total |
$ | $ | $ | ( |
) | $ | ||||||||||
June 25, 2020 |
||||||||||||||||
Allowance for doubtful accounts |
$ | $ | $ | ( |
) | $ | ||||||||||
Reserve for cash discounts |
( |
) | ||||||||||||||
Reserve for customer deductions |
( |
) | ||||||||||||||
Total |
$ | $ | $ | ( |
) | $ | ||||||||||
June 27, 2019 |
||||||||||||||||
Allowance for doubtful accounts |
$ | $ | $ | ( |
) | $ | ||||||||||
Reserve for cash discounts |
( |
) | ||||||||||||||
Reserve for customer deductions |
( |
) | ||||||||||||||
Deferred tax asset valuation allowance |
— | ( |
) | — | ||||||||||||
Total |
$ | $ | $ | ( |
) | $ | ||||||||||
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||||||
Year Ended June 24, 2021: |
||||||||||||||||
Net sales |
$ |
$ |
$ |
$ |
||||||||||||
Gross profit |
||||||||||||||||
Income from operations |
||||||||||||||||
Net income |
||||||||||||||||
Basic earnings per common share |
$ |
$ |
$ |
$ |
||||||||||||
Diluted earnings per common share |
$ |
$ |
$ |
$ |
||||||||||||
Cash dividends declared per common share |
$ |
$ |
$ |
$ |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||||||
Year Ended June 25, 2020: |
||||||||||||||||
Net sales |
$ |
$ |
$ |
$ |
* | |||||||||||
Gross profit |
||||||||||||||||
Income from operations |
||||||||||||||||
Net income |
||||||||||||||||
Basic earnings per common share |
$ |
$ |
$ |
$ |
||||||||||||
Diluted earnings per common share |
$ |
$ |
$ |
$ |
||||||||||||
Cash dividends declared per common share |
$ |
$ |
$ |
$ |
* | The decrease in net sales was primarily attributable to a COVID-19 pandemic. |
* | Indicates a management contract or compensatory plan or arrangement. |
JOHN B. SANFILIPPO & SON, INC. | ||||||
Date: August 18, 2021 | By: | /s/ Jeffrey T. Sanfilippo | ||||
Jeffrey T. Sanfilippo | ||||||
Chief Executive Officer |
Name |
Title |
Date | ||
/s/ Jeffrey T. Sanfilippo Jeffrey T. Sanfilippo |
Chief Executive Officer and Director (Principal Executive Officer) |
August 18, 2021 | ||
/s/ Michael J. Valentine Michael J. Valentine |
Chief Financial Officer, Group President, Secretary and Director (Principal Financial Officer) |
August 18, 2021 | ||
/s/ Frank S. Pellegrino Frank S. Pellegrino |
Executive Vice President, Finance and Administration and Treasurer (Principal Accounting Officer) |
August 18, 2021 | ||
/s/ Mathias A. Valentine Mathias A. Valentine |
Director | August 18, 2021 | ||
/s/ Jim R. Edgar Jim R. Edgar |
Director | August 18, 2021 | ||
/s/ Pamela Forbes Lieberman Pamela Forbes Lieberman |
Director | August 18, 2021 | ||
/s/ Jasper B. Sanfilippo, Jr. Jasper B. Sanfilippo, Jr. |
Director | August 18, 2021 | ||
/s/ Ellen C. Taaffe Ellen C. Taaffe |
Director | August 18, 2021 | ||
/s/ James J. Sanfilippo James J. Sanfilippo |
Director | August 18, 2021 | ||
/s/ John E. Sanfilippo John E. Sanfilippo |
Director | August 18, 2021 | ||
/s/ Lisa A. Sanfilippo Lisa A. Sanfilippo |
Director | August 18, 2021 |