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Note 9
 9 Months Ended
Jun. 27, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 9

We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Makers.

 

Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income. These segments are described below.

 

Food Service

 

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods. Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

 

Retail Supermarkets

 

The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including PATIO burritos. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

 

Frozen Beverages

 

We sell frozen beverages and related products to the food service industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance service to customers for customers’ owned equipment.

 

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales and operating income are key variables monitored by the Chief Operating Decision Makers and management when determining each segment’s and the company’s financial condition and operating performance. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Due to a change in management and the reporting of our MARYB’s biscuit operations, which had sales and operating income of $25,316,000 and $1,584,000, respectively, in our 2019 fiscal year, we have reclassified the operations from our Food Service segment to our Retail Supermarket segment, which is reflected in both periods reported. Information regarding the operations in these three reportable segments is as follows:

 

  

Three months ended

  

Nine months ended

 
  

June 27,

  

June 29,

  

June 27,

  

June 29,

 
  

2020

  

2019

  

2020

  

2019

 
                 

Sales to External Customers:

                

Food Service

                

Soft pretzels

 $21,384  $55,867  $116,985  $154,670 

Frozen juices and ices

  8,688   13,862   25,222   30,336 

Churros

  7,321   18,888   38,466   49,793 

Handhelds

  7,448   8,550   22,084   25,339 

Bakery

  69,237   90,084   255,016   268,735 

Other

  2,543   6,105   13,628   19,576 

Total Food Service

 $116,621  $193,356  $471,401  $548,449 
                 

Retail Supermarket

                

Soft pretzels

 $12,716  $7,294  $34,874  $28,309 

Frozen juices and ices

  33,322   26,515   59,279   52,179 

Biscuits

  8,151   5,215   21,759   19,437 

Handhelds

  3,257   3,063   9,135   8,110 

Coupon redemption

  (807)  (962)  (2,216)  (2,163)

Other

  863   642   1,668   1,341 

Total Retail Supermarket

 $57,502  $41,767  $124,499  $107,213 
                 

Frozen Beverages

                

Beverages

 $16,456  $56,937  $83,606  $121,976 

Repair and maintenance service

  17,259   22,514   61,524   62,291 

Machines revenue

  6,363   11,810   27,254   33,875 

Other

  362   317   1,218   811 

Total Frozen Beverages

 $40,440  $91,578  $173,602  $218,953 
                 

Consolidated Sales

 $214,563  $326,701  $769,502  $874,615 
                 

Depreciation and Amortization:

                

Food Service

 $7,050  $6,973  $21,208  $19,911 

Retail Supermarket

  468   335   1,156   990 

Frozen Beverages

  5,864   5,015   17,505   15,059 

Total Depreciation and Amortization

 $13,382  $12,323  $39,869  $35,960 
                 

Operating (Loss)Income:

                

Food Service

 $(18,242) $21,030  $7,743  $57,909 

Retail Supermarket

  7,910   3,775   14,464   9,025 

Frozen Beverages

  (9,088)  14,237   (8,942)  18,961 

Total Operating (Loss) Income

 $(19,420) $39,042  $13,265  $85,895 
                 

Capital Expenditures:

                

Food Service

 $7,865  $8,665  $26,599  $23,346 

Retail Supermarket

  390   597   1,625   1,730 

Frozen Beverages

  2,397   6,523   19,413   17,060 

Total Capital Expenditures

 $10,652  $15,785  $47,637  $42,136 
                 

Assets:

                

Food Service

 $729,331  $751,641  $729,331  $751,641 

Retail Supermarket

  33,766   24,825   33,766   24,825 

Frozen Beverages

  294,189   219,224   294,189   219,224 

Total Assets

 $1,057,286  $995,690  $1,057,286  $995,690