SNYDERS-LANCE CHARLOTTE, N.C., May 8, 2015 /PRNewswire/ -- Snyder's-Lance, Inc. (Nasdaq-GS: LNCE) today reported first quarter net revenue growth of 8% over last year, with earnings of $0.17 per diluted share excluding special items.
http://photos.prnewswire.com/prnvar/20150410/197788LOGO
"We are pleased with our good start to the year with healthy top line growth and earnings that met our expectations. Our 'better for you' and premium products are working well, delivering solid sales and financial results," said Carl E. Lee, Jr., President and CEO. "With a balanced portfolio of great snacks, we have momentum that helped us to outpace our categories with an 8% overall top line growth compared to last year. This year is off to a great start and we continue to invest in advertising and retail execution to reach more consumer households and leverage our innovative new products to drive category growth. New products such as our Cape Cod® Dipping Shells, Snyder's of Hanover(®) Poppers and Lance® Quick Starts are gaining wide acceptance as we gain new users and expand snacking day parts. Lance(®) Gluten Free Sandwich Crackers, which were introduced at Natural Products Expo West with great acceptance, are an example of how our innovation is working and creating a lot of excitement with consumers. Our Clearview Foods(TM) division, which includes Snack Factory(®) Pretzel Crisps(®), EatSmart((TM) )and Late July(®) Organic Snacks, has received an exceptional reception from retailers and continues to grow at a healthy rate. We also saw good top line strength widely across the balance of our portfolio, led by Cape Cod® Kettle Chips which posted very strong growth again this quarter."
Mr. Lee continued, "From an earnings point of view, our results are slightly ahead of our expectations even with a higher investment in marketing and advertising for the quarter. Comparisons year over year are skewed by the difference in the tax rate for last year providing a $0.02 per diluted share advantage to last year. It's a great time to be a part of the Snyder's-Lance team, and I'm very grateful to all our associates for their leadership and passion to win."
First Quarter Financial Summary
-- Net revenue for the first quarter of 2015 was $402 million, an increase
of 7.9% compared to first quarter of 2014 net revenue of $373 million.
-- Net income excluding special items for the first quarter of 2015 was
$12.0 million, or $0.17 per diluted share, as compared to net income
excluding special items of $11.9 million for first quarter of 2014, or
$0.17 per diluted share.
-- Including special items, net income for the first quarter of 2015 was
$10.6 million, or $0.15 per diluted share, as compared to net income
including special items of $10.5 million for the first quarter of 2014,
or $0.15 per diluted share.
-- Special items for the first quarter of 2015 included after-tax expenses
of $1.3 million primarily associated severance charges and professional
fees. Special items for the first quarter of 2014 included after-tax
expenses of $1.4 million primarily associated with impairment charges
and certain acquisition related costs.
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 29, 2015 to stockholders of record at the close of business on May 21, 2015.
Estimates for 2015
Management updated Company estimates for 2015, with net revenue for the full year now expected to be in the range of $1.69 to $1.72 billion, from the previous estimate of $1.68 to $1.72 billion. The earnings per diluted share estimates range has been adjusted to $1.11 to $1.19, from the previous estimate of $1.09 to $1.19. Capital expenditures for 2015 are now projected to be between $60 and $62 million, from the previous estimate of $60 to $65 million.
Conference Call
Management will conduct a conference call and live webcast at 9:00 am eastern time on Friday, May 8, to review the Company's first quarter 2015 results. 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 at www.snyderslance.com to download and print approximately 30 minutes before the webcast. To participate in the conference call, the dial-in number is (844) 830-1960 for U.S. callers or (315) 625-6883 for international callers. The conference ID is 25419324. A continuous telephone replay of the call will be available between 12:00pm on May 8 and midnight on May 15. The replay telephone number is (855) 859-2056 for U.S. callers or (404) 537-3406 for international callers. The replay access code is 25419324. Investors may also access a web-based replay of the conference call 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. Snyder's-Lance's products include pretzels, sandwich crackers, pretzel crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. Snyder's-Lance has manufacturing facilities in North Carolina, Pennsylvania, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio and Wisconsin. Products are sold under the Snyder's of Hanover®, Lance®, Cape Cod®, Snack Factory® Pretzel Crisps®, Late July®, Krunchers!®, Tom's®, Archway®, Jays®, Stella D'oro®, Eatsmart(TM), O-Ke-Doke®, and other brand names along with a number of third party brands. Products are distributed nationally through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels. LNCE-E
Cautionary Information about Forward Looking Statements
This press release contains statements which may be forward looking within the meaning of applicable securities laws. The statements include projections regarding future revenues, earnings and other 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 or an economic turndown; volatility in the price or availability of inputs, including raw materials, packaging, energy and labor; price competition and industry consolidation; changes in our top retail customer relationships; inability to maintain profitability in the face of a consolidating retail environment; failure to successfully integrate acquisitions or execute divestitures; loss of key personnel; failure to execute and accomplish our strategy; concerns with the safety and quality of certain food products or ingredients; adulterated, misbranded or mislabeled products or product recalls; disruption of our supply chain; inadequacies in, or security breaches of, our information technology systems; improper use of social media; changes in consumer preferences and tastes or inability to innovate or market our products effectively; reliance on distribution through a significant number of independent business owners; protection of our trademarks and other intellectual property rights; impairment in the carrying value of goodwill or other intangible assets; new regulations or legislation; interest rate volatility, and the interests of a few individuals who control a significant portion of our outstanding shares of common stock 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.
SNYDER'S-LANCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
For the Quarters Ended April 4, 2015 and March 29, 2014
Quarter Ended
-------------
(in thousands, except per share data) April 4, March 29,
2015 2014
--- ---- ----
Net revenue $402,341 $373,016
Cost of sales 262,979 239,830
------- -------
Gross margin 139,362 133,186
Selling, general and administrative 121,924 116,064
Impairment charges - 1,000
Gain on sale of route businesses, net (793) (1,163)
Other (income)/expense, net (736) 80
---- ---
Income before interest and income
taxes 18,967 17,205
Interest expense, net 2,467 3,390
----- -----
Income before income taxes 16,500 13,815
Income tax expense 5,918 3,326
----- -----
Income from continuing operations 10,582 10,489
Income from discontinued operations,
net of income tax - 6,322
--- -----
Net income 10,582 16,811
Net loss attributable to
noncontrolling interests (54) (5)
Net income attributable to Snyder's-
Lance, Inc. $10,636 $16,816
======= =======
Amounts attributable to Snyder's-
Lance, Inc.:
Continuing operations $10,636 $10,494
Discontinued operations - 6,322
Net income $10,636 $16,816
======= =======
Basic earnings per share:
Continuing operations $0.15 $0.15
Discontinued operations - 0.09
Total basic earnings per share $0.15 $0.24
===== =====
Diluted earnings per share:
Continuing operations $0.15 $0.15
Discontinued operations - 0.09
Total diluted earnings per share $0.15 $0.24
===== =====
Cash dividends declared per share $0.16 $0.16
SNYDER'S-LANCE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
As of April 4, 2015 and January 3, 2015
(in thousands, except
share data) April 4, January 3,
2015 2015
--- ---- ----
ASSETS
------
Current assets:
Cash and cash
equivalents $12,389 $35,373
Restricted cash 966 966
Accounts receivable,
net of allowances of
$1,757 and $1,778,
respectively 134,220 126,093
Inventories 123,517 116,236
Prepaid income taxes 9,806 4,175
Deferred income taxes 14,076 13,189
Assets held for sale 12,279 11,007
Prepaid expenses and
other current assets 20,493 22,112
------ ------
Total current assets 327,746 329,151
Noncurrent assets:
Fixed assets, net 421,319 423,612
Goodwill 540,726 541,539
Other intangible
assets, net 541,671 545,212
Other noncurrent
assets 24,016 23,874
Total assets $1,855,478 $1,863,388
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
--------------------
Current liabilities:
Current portion of
long-term debt $8,541 $8,561
Accounts payable 58,048 57,407
Accrued compensation 25,203 32,774
Accrued casualty
insurance claims 4,096 4,320
Accrued selling and
promotional costs 12,100 13,141
Other payables and
accrued liabilities 24,376 24,723
------ ------
Total current
liabilities 132,364 140,926
Noncurrent
liabilities:
Long-term debt 436,261 438,376
Deferred income taxes 169,479 168,593
Accrued casualty
insurance claims 13,629 13,755
Other noncurrent
liabilities 15,870 15,030
------ ------
Total liabilities 767,603 776,680
Commitments and
contingencies
Stockholders' equity:
Common stock, $0.83
1/3 par value.
Authorized
110,000,000 shares;
70,587,344 and
70,406,086 shares
outstanding,
respectively 58,820 58,669
Preferred stock, $1.00
par value. Authorized
5,000,000 shares; no
shares outstanding - -
Additional paid-in
capital 779,916 776,930
Retained earnings 232,184 232,812
Accumulated other
comprehensive loss (2,295) (1,007)
------ ------
Total Snyder's-Lance,
Inc. stockholders'
equity 1,068,625 1,067,404
Noncontrolling
interests 19,250 19,304
------ ------
Total stockholders'
equity 1,087,875 1,086,708
Total liabilities and
stockholders' equity $1,855,478 $1,863,388
========== ==========
SNYDER'S-LANCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Quarters Ended April 4, 2015 and March 29, 2014
Quarter Ended
-------------
(in thousands) April 4, March 29,
2015 2014
--- ---- ----
Operating activities:
Net income $10,582 $16,811
Adjustments to reconcile net
income to cash from operating
activities:
Depreciation and amortization 17,413 14,654
Stock-based compensation expense 1,350 1,514
Loss on sale of fixed assets, net 12 136
Gain on sale of route businesses,
net (793) (1,163)
Gain on sale of investments (436) -
Impairment charges - 1,000
Deferred income taxes 524 154
Provision for doubtful accounts 236 363
Changes in operating assets and
liabilities (28,903) (7,870)
Net cash (used in)/provided by
operating activities (15) 25,599
--- ------
Investing activities:
Purchases of fixed assets (13,495) (17,242)
Purchases of route businesses (6,731) (4,393)
Proceeds from sale of fixed
assets 302 165
Proceeds from sale of route
businesses 7,870 6,364
Proceeds from sale of investments 436 -
--- ---
Net cash used in investing
activities (11,618) (15,106)
------- -------
Financing activities:
Dividends paid to stockholders (11,264) (11,202)
Issuances of common stock 2,589 2,481
Repurchases of common stock (801) (1,152)
Repayments of long-term debt (1,875) (4,062)
Net repayments of existing credit
facilities - (5,000)
Net cash used in financing
activities (11,351) (18,935)
------- -------
Decrease in cash and cash
equivalents (22,984) (8,442)
Cash and cash equivalents at
beginning of period 35,373 14,080
Cash and cash equivalents at end
of period $12,389 $5,638
======= ======
Supplemental information:
Cash paid for income taxes, net
of refunds of $425 and $--,
respectively $10,412 $3,795
Cash paid for interest $1,246 $2,126
SNYDER'S-LANCE, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures (Unaudited)
For the Quarters Ended April 4, 2015 and March 29, 2014
(in thousands, except
per share data) Net of Per
Diluted
Tax
Share
--- -----
Quarter Ended April 4,
2015
----------------------
Net income attributable
to Snyder's-Lance,
Inc. $10,636 $0.149
Severance charges 511 0.007
Legal fees -"All
Natural" litigation 582 0.008
Professional fees 228 0.004
---
Net income attributable
to Snyder's-Lance,
Inc., excluding special
items $11,957 $0.168
======= ======
Quarter Ended March, 29,
2014
------------------------
Income from continuing
operations $10,494 $0.148
Impairment charges 631 0.009
Self-funded medical
insurance claim 564 0.008
Professional fees 214 0.003
---
Income from continuing
operations, excluding
special items $11,903 $0.168
======= ======
Logo- http://photos.prnewswire.com/prnh/20150410/197788LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/snyders-lance-inc-reports-results-for-first-quarter-2015-300080117.html
SOURCE Snyder's-Lance, Inc.
