By a News Reporter-Staff News Editor at Investment Weekly News -- Snyder's-Lance, Inc. (NASDAQ: LNCE) announced that a meeting date has been set for shareholders to vote on approving the recently announced acquisition of Diamond Foods, Inc. (NASDAQ: DMND) ("Diamond Foods" or "Diamond"). This announcement signals completion of customary reviews of the transaction by the FTC and SEC. A meeting date of February 26, 2016 is set for the vote of the stockholders of Diamond and Snyder's-Lance, with full details regarding time, location and how to vote shares included in the prospectus/joint proxy statement included in the company's S-4 filing which is available online and is being mailed to all stockholders of Snyder's-Lance and Diamond. Closing is expected to occur shortly thereafter. The Company reaffirmed estimated annualized synergies from cost savings of $75 million, with approximately $10 million to be re-invested in the company's growth plans. In addition, revenue synergies are expected to be a good source of growth in the future.
The Company also announced that preliminary unaudited net sales for the full year are estimated to be $1.66 billion, an increase of 4% compared to prior year when adjusted for the 53(rd) week in 2014, which accounted for approximately $30 million in net revenue. Fourth quarter 2015 unaudited net revenue is anticipated to be lower than expected given several factors which contributed to estimated net sales of $406 million vs. approximately $430 million, the lower end of the company's guidance. The lower net revenue is expected to result in earnings per share for full year 2015 of $1.00 to $1.02, excluding special items, on a fully diluted basis. For full year 2015, GAAP earnings per share, which include special items, is expected to be $0.70 to $0.72 on a fully diluted basis. Special items for 2015 primarily include asset impairments related to restructuring, Diamond-related transaction expenses and certain litigation-related fees and expected settlements.
Despite challenges of the most recent quarter and a tougher retailing environment across the industry, Snyder's-Lance delivered a number of positive results for full year 2015, including;
-- Top line growth of around 4% for the full year 2015 when adjusted for
the 53(rd) week in 2014, driven by core brands growth of over 6.5%
-- Expanded operating margins for the full year, accelerating in the fourth
quarter to an estimated 200 bps improvement over prior year
-- The launch of a company wide "Drive For 10" cost savings initiative,
which along with other cost focused efforts helped to drive improved Q4
margins, and will continue into 2016
-- All five core brands (Snyder's of Hanover®, Lance®, Cape Cod®, Snack
Factory® Pretzel Crisps® and Late July®) gained market share for the
Keywords for this news article include: Finance, Snyder's-Lance Inc.
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