2014

Snyder's-Lance, Inc. Reports Results for First Quarter 2012

CHARLOTTE, N.C., May 8, 2012 /PRNewswire/ -- 

  • Reports net revenues of $393 million, a 1.1% increase over 2011, and up 4.2% excluding impact of the IBO conversion
  • Reports 2012 first quarter earnings per diluted share of $0.21
  • Reports 2012 first quarter earnings per diluted share of $0.17 excluding special items
  • Merger integration on track to be completed mid-year 2012
  • Declares quarterly dividend of $0.16 per share of common stock

Snyder's-Lance, Inc. (Nasdaq-GS: LNCE) today reported results for its first quarter of 2012.  Net revenues for the first quarter ended March 31, 2012 were $393 million, an increase of 1.1% over prior year net revenues of $388 million.  Net revenue growth when adjusting for the impact of the independent business owner ("IBO") route system conversion was 4.2%.  This growth was primarily driven by increased revenues from our branded products.  In the first quarter of 2012, net income excluding special items was $11.4 million, or $0.17 per diluted share, as compared to first quarter 2011 net income excluding special items of $11.8 million, or $0.17 per diluted share.  Net income including special items was $14.2 million for the first quarter of 2012, or $0.21 per diluted share, compared to net income including special items of $10.8 million, or $0.16 per diluted share, for the first quarter of 2011.  Special items for the first quarter of 2012 included after-tax gains of $4.9 million on the sale of routes as well as after-tax expenses of $1.2 million for merger related items and $0.9 million associated with asset transfer expenses due to the closing of the manufacturing facility in Corsicana, TX.  Special items for the first quarter of 2011 included after-tax expenses of $1.0 million associated with the merger of Lance, Inc. and Snyder's of Hanover, Inc. ("Merger").

(Logo:  http://photos.prnewswire.com/prnh/20110411/CL80943LOGO )

Comments from Management

"We were pleased with our results for the first quarter of 2012.  Earnings were in line with our expectations, and we continued to show solid momentum in net sales growth," commented David V. Singer, Chief Executive Officer.  "Our team continues to do an exceptional job of executing on the complex challenges of the Merger integration while delivering solid top line performance.  I'm very pleased with our progress.  Branded products net revenues grew by 6.2% excluding the reduction in net sales associated with converting from a company-owned to an IBO route system.  This growth was driven by our core brands (Snyder's of Hanover pretzels, Lance sandwich crackers and Cape Cod kettle chips), each of which delivered double digit growth in sales in the first quarter." 

Mr. Singer continued, "We expect to meet our commitment of completing the work of integration by the middle of 2012 and to see a widening of margins on a run-rate basis in the back half of the year as synergies are realized.  I'm very proud of what has been accomplished by our associates in the past 16 months, and we will continue our integration efforts while focusing clearly on growing core branded items and widening our profit margins."

Dividend Declared

The Company also announced the declaration of a quarterly cash dividend of $0.16 per share on the Company's common stock.  The dividend is payable on May 31, 2012 to stockholders of record at the close of business on May 23, 2012.

2012 Estimates

The Company believes that its net revenue for the full year 2012 will be flat to 2% down net of IBO impact when compared to 2011, slightly better than previously estimated.  There is no change to the estimates for earnings per diluted share which is expected to increase between 30% and 45% as compared to 2011.  Capital expenditures for 2012 are projected to be between $80 and $85 million as investments are made in plant improvements, quality, capacity and innovation.

Conference Call

Snyder's-Lance, Inc. has scheduled a conference call and presentation with investors at 9:00 am eastern time on Tuesday, May 8, 2012 to discuss financial results.  To participate in the conference call, the dial-in number is (866) 814-7293 for U.S. callers or (702) 696-4943 for international callers.  A continuous telephone replay of the call will be available between 1:00 pm on May 8th and midnight on May 15th. The replay telephone number is (855) 859-2056 for U.S. callers or (404) 537-3406 for international callers.  The replay access code is 73918047.  Investors may also access a web-based replay of the conference call at www.snyderslance.com.

The conference call and accompanying slide presentation will be webcast live through the Investor Relations section of the Company's website, www.snyderslance.com.  In addition, the slide presentation will be available to download and print approximately 30 minutes before the webcast at www.snyderslance.com.

About Snyder's-Lance, Inc.

Snyder's-Lance, Inc., headquartered in Charlotte, NC, manufactures and markets snack foods throughout the United States and internationally.  The Company's products include pretzels, sandwich crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks.  Snyder's-Lance has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio and Ontario, Canada.  Products are sold under the Snyder's of Hanover, Lance, Cape Cod, Krunchers!, Tom's, Archway, Jays, Stella D'oro, O-Ke-Doke and Grande brand names along with a number of private label and third party brands.  Products are distributed nationally through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels.  LNCE-E

 

SNYDER'S-LANCE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)

For the Quarters Ended March 31, 2012 and April 2, 2011

(in thousands, except per share data)




Quarter Ended


March 31,

2012


April 2,

2011





Net revenue

$          392,843


$          388,471

Cost of sales

265,460


247,299

Gross margin

127,383


141,172





Selling, general and administrative

110,703


120,905

Gain on sale of route businesses, net

(9,287)


(89)

Other (income)/expense, net

(89)


128

Income before interest and income taxes

26,056


20,228





Interest expense, net

2,263


2,660

Income before income taxes

23,793


17,568





Income tax expense

9,469


6,525

Net income

14,324


11,043

Net income attributable to noncontrolling interests

111


194

Net income attributable to Snyder's-Lance, Inc.

$            14,213


$           10,849





Basic earnings per share

$                 0.21


$                0.16

Weighted average shares outstanding – basic

67,912


66,732





Diluted earnings per share

$                0.21


$                0.16

Weighted average shares outstanding – diluted

69,053


68,060





Cash dividends declared per share

$                0.16


$                0.16

 

SNYDER'S-LANCE, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

As of March 31, 2012 (Unaudited) and December 31, 2011

(in thousands, except share data)






 March 31,

2012


December 31,

2011

ASSETS








Current assets:




  Cash and cash equivalents

$            22,149


$            20,841

  Accounts receivable, net of allowances of $1,881 and $1,884, respectively

147,871


143,238

  Inventories

102,193


106,261

  Income tax receivable

-


18,119

  Deferred income taxes

18,046


21,042

  Assets held for sale

71,678


57,822

  Prepaid expenses and other current assets

22,506


20,705

Total current assets

384,443


388,028





Noncurrent assets:




  Fixed assets, net of accumulated depreciation of $324,529 and $328,648, respectively

306,725


313,043

  Goodwill

366,199


367,853

  Other intangible assets, net

371,884


376,062

  Other noncurrent assets

20,293


21,804

    Total assets

$      1,449,544


$      1,466,790





LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:




  Accounts payable

$             49,939


$            52,930

  Accrued compensation

25,544


29,248

  Income tax payable

2,435


-

  Other payables and accrued liabilities

56,291


68,712

  Current portion of long-term debt

4,430


4,256

Total current liabilities

138,639


155,146





Noncurrent liabilities:




  Long-term debt

247,256


253,939

  Deferred income taxes

193,139

196,244

  Other noncurrent liabilities

23,777


22,870

Total liabilities

602,811


628,199





Commitments and contingencies

-


-





Stockholders' equity:




  Common stock, 68,074,130 and 67,820,798 shares outstanding, respectively

56,726


56,515

  Preferred stock, no shares outstanding

-


-

  Additional paid-in capital

733,096


730,338

  Retained earnings

38,878


35,539

  Accumulated other comprehensive income

15,442


13,719

Total Snyder's-Lance, Inc. stockholders' equity

844,142


836,111

  Noncontrolling interests

2,591


2,480

Total stockholders' equity

846,733


838,591

    Total liabilities and stockholders' equity

$      1,449,544


$      1,466,790

 

SNYDER'S-LANCE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Quarters Ended March 31, 2012 and April 2, 2011

(in thousands)




Quarter Ended


March 31,

2012


April 2,

2011





Operating activities




Net income

$            14,324


$            11,043

  Adjustments to reconcile net income to cash provided by operating activities:




    Depreciation and amortization

12,867


14,061

    Stock-based compensation expense

1,008


338

    (Gain)/Loss on sale of fixed assets

(259)


41

    Gain on sale of route businesses, net

(9,287)


(89)

    Changes in operating assets and liabilities

1,928


(12,982)

  Net cash provided by operating activities

20,581


12,412





Investing activities




  Purchases of fixed assets

(13,782)


(17,471)

  Purchases of route businesses

(21,712)


(622)

  Proceeds from sale of fixed assets

2,852


521

  Proceeds from sale of route businesses

28,929


676

  Proceeds from sale of investments

-


960

Net cash used in investing activities

(3,713)


(15,936)





Financing activities




  Dividends paid to stockholders

(10,873)


(10,584)

  Dividends paid to noncontrolling interests

-


(182)

  Issuances of common stock

2,282


1,935

  Repurchases of common stock

(322)


-

  Repayments of long-term debt

(610)


-

  Net repayments of existing credit facilities

(5,899)


(9,243)

Net cash used in financing activities

(15,422)


(18,074)





Effect of exchange rate changes on cash

(138)


83





Increase/(Decrease) in cash and cash equivalents

1,308


(21,515)

Cash and cash equivalents at beginning of period

20,841


27,877

Cash and cash equivalents at end of period

$            22,149


$              6,362





Supplemental information:




Cash (received)/paid for income taxes, net of refunds of $12,283 and $2, respectively

$           (11,650)


$                  449

Cash paid for interest

$              1,231


$              1,478

 

SNYDER'S-LANCE, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures (Unaudited)

For the Quarters Ended March 31, 2012 and April 2, 2011

(in thousands, except per share data)






Net of

Tax


Per Diluted

Share

Quarter Ended March 31, 2012




Net income attributable to Snyder's-Lance, Inc.

$            14,213


$               0.21





   Merger Related Items

1,225


0.02

   Corsicana asset transfer expenses

899


0.01

   Gain on the sale of route businesses

(4,942)


(0.07)





Net income attributable to Snyder's-Lance, Inc., excluding special items

$            11,395


$               0.17





Quarter Ended April 2, 2011




Net income attributable to Snyder's-Lance, Inc.

$            10,849


$               0.16





   Merger-related costs

981


0.01





Net income attributable to Snyder's-Lance, Inc., excluding special items

$            11,830


$               0.17

 

SOURCE Snyder's-Lance, Inc.



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http://www.snyderslance.com

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