Lance Reports Earnings of 18 Cents Per Share in First Quarter; Board Declares Regular Quarterly Dividend

Apr 26, 2001, 01:00 ET from Lance, Inc.

    CHARLOTTE, N.C., April 26 /PRNewswire/ -- Lance, Inc. (Nasdaq:   LNCE) today
 reported first quarter net income of $5.1 million or $0.18 per share, on a
 diluted basis, on net sales and other operating revenues of $145.4 million for
 the 13 weeks ended March 31, 2001.  In the same period last year, net income
 was $5.7 million or $0.20 per share on net sales and other operating revenues
 of $135.6 million for the 13 weeks ended March 25, 2000.
     The 7% revenue increase during the quarter was led by contract
 manufacturing and private label shipments.  The Company's branded sales also
 increased.  Gross margin as a percentage of sales declined 1.9 points mainly
 due to changes in product mix as well as higher energy costs.  Selling,
 general and administrative expenses improved as a percentage of sales by
 1.5 points due to product mix changes and the absence of severance provisions
 recorded in the prior year.  Other income declined $1.3 million due to higher
 gains on asset sales recorded in the same period last year.
     The Company also announced that it is comfortable with full-year 2001
 earnings estimates of approximately $0.80 per share.
     "While our revenue performance was positive, we need to be more effective
 in bringing these gains to the bottom line," said Paul A. Stroup III,
 Chairman, President and Chief Executive Officer.  "Our cost position is
 improving rapidly and we are confident that profit margins will improve during
 the balance of the year."
     The Board of Directors declared a regular quarterly cash dividend of
 16 cents per share on the Company's common stock.  The dividend is payable on
 May 15, 2001, to stockholders of record at the close of business on
 May 7, 2001.
     Lance, Inc., manufactures and markets snack foods throughout most of the
 United States and Canada.
 
     This news release contains statements which may be forward looking within
 the meaning of applicable securities laws.  The statements may include
 projections regarding future earnings and results which are based upon the
 Company's current expectations and assumptions, which are subject to a number
 of risks and uncertainties.  Factors that could cause actual results to
 differ, including price competition, industry consolidation, raw material
 costs, the effectiveness of sales and marketing activities and the operation
 of a leveraged business, are discussed in the Company's most recent Form 10-K
 filed with the Securities and Exchange Commission.
 
                                  LANCE, INC.
                    CONDENSED CONSOLIDATED INCOME STATEMENTS
               (in thousands, except share and per-share amounts)
                                  (unaudited)
 
 
     For the Quarter (13 Weeks) Ended
                                               March 31, 2001  March 25, 2000
     Net sales and other operating revenue         $  145,410     $  135,630
 
     Cost of sales                                     71,391         64,015
     Selling and delivery                              55,558         54,927
     General and administrative                         7,674          6,071
     Provisions for employees' retirement plans         1,036          1,172
     Amortization of goodwill and other intangibles       512            467
                                                      136,171        126,652
     Operating profit                                   9,239          8,978
 
     Other income, net                                     45          1,319
     Interest income (expense), net                    (1,092)        (1,125)
     Income before income taxes                         8,192          9,172
     Income taxes                                       3,083          3,428
     Net income                                    $    5,109     $    5,744
     Net income per share:
      Basic                                        $      .18     $      .20
      Diluted                                      $      .18     $      .20
     Weighted average shares outstanding:
      Basic                                        28,901,000     29,173,000
      Diluted                                      29,029,000     29,197,000
 
 
                                  LANCE, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                      (in thousands, except share amounts)
                                  (unaudited)
 
 
                                              March 31, 2001  December 30, 2000
 
     Assets:
     Cash and cash equivalents                     $    3,277     $    1,224
     Receivables                                       53,204         47,188
     Inventories                                       24,748         23,205
     Deferred income taxes                              5,024          4,161
     Other current assets                               3,835          6,550
                                                       90,088         82,328
     Property, net                                    181,571        179,283
     Goodwill and other intangibles, net               50,277         52,246
     Other                                              3,171          3,216
                                                   $  325,107     $  317,073
 
     Liabilities and Equity:
     Accounts payable                              $   17,959     $   14,718
     Other current liabilities                         28,181         24,678
                                                       46,140         39,396
     Long-term debt                                    65,593         63,536
     Other liabilities                                 38,587         39,548
     Stockholders' equity                             174,787        174,593
                                                   $  325,107     $  317,073
 
     Common shares outstanding at end of period    28,982,172     28,947,222
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X93847465
 
 

SOURCE Lance, Inc.
    CHARLOTTE, N.C., April 26 /PRNewswire/ -- Lance, Inc. (Nasdaq:   LNCE) today
 reported first quarter net income of $5.1 million or $0.18 per share, on a
 diluted basis, on net sales and other operating revenues of $145.4 million for
 the 13 weeks ended March 31, 2001.  In the same period last year, net income
 was $5.7 million or $0.20 per share on net sales and other operating revenues
 of $135.6 million for the 13 weeks ended March 25, 2000.
     The 7% revenue increase during the quarter was led by contract
 manufacturing and private label shipments.  The Company's branded sales also
 increased.  Gross margin as a percentage of sales declined 1.9 points mainly
 due to changes in product mix as well as higher energy costs.  Selling,
 general and administrative expenses improved as a percentage of sales by
 1.5 points due to product mix changes and the absence of severance provisions
 recorded in the prior year.  Other income declined $1.3 million due to higher
 gains on asset sales recorded in the same period last year.
     The Company also announced that it is comfortable with full-year 2001
 earnings estimates of approximately $0.80 per share.
     "While our revenue performance was positive, we need to be more effective
 in bringing these gains to the bottom line," said Paul A. Stroup III,
 Chairman, President and Chief Executive Officer.  "Our cost position is
 improving rapidly and we are confident that profit margins will improve during
 the balance of the year."
     The Board of Directors declared a regular quarterly cash dividend of
 16 cents per share on the Company's common stock.  The dividend is payable on
 May 15, 2001, to stockholders of record at the close of business on
 May 7, 2001.
     Lance, Inc., manufactures and markets snack foods throughout most of the
 United States and Canada.
 
     This news release contains statements which may be forward looking within
 the meaning of applicable securities laws.  The statements may include
 projections regarding future earnings and results which are based upon the
 Company's current expectations and assumptions, which are subject to a number
 of risks and uncertainties.  Factors that could cause actual results to
 differ, including price competition, industry consolidation, raw material
 costs, the effectiveness of sales and marketing activities and the operation
 of a leveraged business, are discussed in the Company's most recent Form 10-K
 filed with the Securities and Exchange Commission.
 
                                  LANCE, INC.
                    CONDENSED CONSOLIDATED INCOME STATEMENTS
               (in thousands, except share and per-share amounts)
                                  (unaudited)
 
 
     For the Quarter (13 Weeks) Ended
                                               March 31, 2001  March 25, 2000
     Net sales and other operating revenue         $  145,410     $  135,630
 
     Cost of sales                                     71,391         64,015
     Selling and delivery                              55,558         54,927
     General and administrative                         7,674          6,071
     Provisions for employees' retirement plans         1,036          1,172
     Amortization of goodwill and other intangibles       512            467
                                                      136,171        126,652
     Operating profit                                   9,239          8,978
 
     Other income, net                                     45          1,319
     Interest income (expense), net                    (1,092)        (1,125)
     Income before income taxes                         8,192          9,172
     Income taxes                                       3,083          3,428
     Net income                                    $    5,109     $    5,744
     Net income per share:
      Basic                                        $      .18     $      .20
      Diluted                                      $      .18     $      .20
     Weighted average shares outstanding:
      Basic                                        28,901,000     29,173,000
      Diluted                                      29,029,000     29,197,000
 
 
                                  LANCE, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                      (in thousands, except share amounts)
                                  (unaudited)
 
 
                                              March 31, 2001  December 30, 2000
 
     Assets:
     Cash and cash equivalents                     $    3,277     $    1,224
     Receivables                                       53,204         47,188
     Inventories                                       24,748         23,205
     Deferred income taxes                              5,024          4,161
     Other current assets                               3,835          6,550
                                                       90,088         82,328
     Property, net                                    181,571        179,283
     Goodwill and other intangibles, net               50,277         52,246
     Other                                              3,171          3,216
                                                   $  325,107     $  317,073
 
     Liabilities and Equity:
     Accounts payable                              $   17,959     $   14,718
     Other current liabilities                         28,181         24,678
                                                       46,140         39,396
     Long-term debt                                    65,593         63,536
     Other liabilities                                 38,587         39,548
     Stockholders' equity                             174,787        174,593
                                                   $  325,107     $  317,073
 
     Common shares outstanding at end of period    28,982,172     28,947,222
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X93847465
 
 SOURCE  Lance, Inc.