Snyder S Lance Inc : Snyder's-Lance, Inc. Reports Results for First Quarter 2012
05/08/2012| 06:05am US/Eastern
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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").
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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, April 2,
2012 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, December 31,
2012 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, April 2,
2012 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 Per Diluted
Tax 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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