Snyder's-Lance Reports Results for Second Quarter 2011

CHARLOTTE, N.C., Aug. 9, 2011 /PRNewswire/ -- Snyder's-Lance, Inc. (Nasdaq-GS: LNCE) today reported results for its second quarter of 2011.  The Company previously issued an announcement on July 22, 2011, which provided preliminary second quarter earnings and new estimates for the year.  This release confirms the earlier release relative to second quarter 2011 earnings and estimates for the year.  

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Net revenue for the second quarter ended July 2, 2011, was $413 million, an increase of 75% over prior year net revenue of $235 million that was reported by Lance, Inc. ("Lance") prior to the merger with Snyder's of Hanover, Inc. ("Merger") completed on December 6, 2010. This growth was primarily a result of incremental net revenue resulting from the Merger. In the second quarter of 2011, the Company realized net income excluding special items of $11.1 million, or $0.16 per diluted share, as compared to second quarter 2010 net income excluding special items of $14.6 million, or $0.44 per diluted share that was reported the Company prior to the Merger.  A net loss of ($3.8) million, including special items, was reported for the second quarter of 2011 compared to net income of $12.4 million, including special items, for the second quarter of 2010.  Special items for the second quarter of 2011 were $14.9 million after taxes, including severance charges and non-cash expenses of $6.5 million after taxes related to the impairment of transportation equipment.  These charges primarily relate to the conversion of the Company's Direct Store Delivery ("DSD") system to an independent operator model, consistent with the integration plan following the Merger. Special items for the second quarter of 2010 included after-tax expenses of $2.2 million associated with a workforce reduction.

Comments from Management

"Although our second quarter profitability was disappointing, our company remains strong and on track to complete the integration plans laid out following the Merger which created Snyder's-Lance," commented David V. Singer, Chief Executive Officer.  "With the exception of our private brands products, the Company's sales and profitability are in line with our expectations.  Net sales of our branded products increased by 3.5% compared to last year with solid growth in pretzels, sandwich crackers, and kettle chips.  Our DSD integration efforts remain on track to be completed by mid-year 2012. So far, commitments from our employees and other sources to purchase the routes we have offered for sale have exceeded our internal expectations, which supports our confidence in meeting our integration and DSD synergy targets.  As we work through our remaining DSD markets, we expect to continue this level of success, which will ultimately position Snyder's-Lance to deliver accelerated growth and better profit margins in our branded products.  Also, while our private brands products have been pressured as pricing has lagged rising commodity costs, we expect to gain margin with price increases that become effective during the third quarter of 2011. Everyone at Snyder's-Lance is working hard each and every day to complete our integration while handling the many aspects of managing our day to day business.  I'm very proud of our progress and the team that is making it happen.  I look forward to continuing a successful integration and to regaining our private brands margins as we build toward a bright future."

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 August 23, 2011 to stockholders of record at the close of business on August 15, 2011.

Estimates for 2011

Overall, we expect that 2011 performance will continue to be difficult to predict as a number of variables may impact earnings and revenue in the short term while we continue the integration.  As previously announced on July 22, 2011, full year 2011 earnings per share (EPS), excluding special items, are expected to be in a range of $0.75 to $0.90 on a fully diluted basis.  Additionally, we estimate that net revenue will be between $1.59 billion and $1.63 billion for the full year 2011, and expect capital expenditures to be in a $60 million to $70 million range for the year.  

Conference Call

Snyder's-Lance, Inc. has scheduled a conference call and presentation with investors at 9:00 am eastern time on Tuesday, August 9th, 2011 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 August 9th and midnight on August 16th.  The replay telephone number is (855) 859-2056 for U.S. callers or (404) 537-3406 for international callers.  The replay access code is 87051683.  Investors may also access a web-based replay of the conference call at Snyder's-Lance's web site, www.lanceinc.com.

The conference call and accompanying slide presentation will be webcast live through the Investor Relations section of Snyder's-Lance, Inc.'s website, www.lanceinc.com. In addition, the slide presentation will be available to download and print approximately 30 minutes before the webcast at Snyder's-Lance's Investor Relations home page.

About Snyder's-Lance, Inc.

Snyder's-Lance, Inc., headquartered in Charlotte, North Carolina, manufactures, markets and distributes 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, Inc. has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Texas, Florida, Ohio, and Ontario, Canada. Products are sold under brand names including Snyder's of Hanover, Lance, Cape Cod, Tom's, Jays,  Krunchers!, Grande, Archway, O-Ke-Doke, and Stella D'oro along with a number of private label and third party brands. Products are distributed widely through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels.

Cautionary Information about Forward Looking Statements

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 include: general economic conditions; increases in cost or availability of ingredients, packaging, energy and employees; price competition and industry consolidation; loss of major customers or changes in product offerings with significant customers; business disruption from merger integration and conversion of our distribution network to independent operators, including failure to realize anticipated synergies in a timely manner or the loss of key personnel; failure to maintain proper and effective internal controls; ability to execute strategic initiatives; product recalls and concerns surrounding the quality or safety of products and ingredients; disruptions to our supply chain or information technology systems; changes in consumer preferences; inability to maintain existing markets or expand to other geographic markets; potential threats to trademarks and other proprietary intellectual rights; food industry and regulatory factors; interest rate and foreign exchange rate risks; and the interests of significant stockholders may conflict with those of other stockholders, which have been discussed in greater detail in our most recent Form 10-K and other reports filed with the Securities and Exchange Commission.

SOURCE Snyder's-Lance, Inc.