Snyder's-Lance, Inc. Reports Results for Full Year 2012

           Snyder's-Lance, Inc. Reports Results for Full Year 2012

-- Grows earnings per diluted share more than 51% vs. prior year, 35%
excluding special items

-- Reports 2012 full year earnings per diluted share of $0.95 excluding
special items

-- Reports 2012 full year earnings per diluted share of $0.85 including
special items

-- Completes merger integration work and Snack Factory acquisition during 2012

-- Positive outlook in 2013 for Net Revenue and Earnings per Share

PR Newswire

CHARLOTTE, N.C., Feb. 12, 2013

CHARLOTTE, N.C., Feb. 12, 2013 /PRNewswire/ -- Snyder's-Lance, Inc. (Nasdaq:
LNCE) today reported results for its fiscal year 2012.  Net revenues for the
year ended December 29, 2012, were $1.62 billion, a decrease of 1.0% from
prior year net revenues of $1.64 billion. Net revenue, when adjusted for the
impact of the independent business owner ("IBO") route system conversion,
increased 2.2% year over year. The Company realized full year net income of
$66.1 million, excluding special items, or $0.95 per diluted share, as
compared to full year 2011 net income of $47.8 million, excluding special
items, or $0.70 per diluted share.  Net income, including special items, was
$59.1 million, or $0.85 per diluted share, for the full year 2012 compared to
$38.3 million, or $0.56 per diluted share, for 2011.

(Logo: http://photos.prnewswire.com/prnh/20110411/CL80943LOGO)

Special items for 2012 were $7.0 million, after tax expense, and included
approximately $2.6 million in severance costs and professional fees related to
merger and integration activities, approximately $6.6 million in asset
impairment charges, approximately $4.9 million in charges related to
consolidation activities, and approximately $1.2 million in expenses
associated with the acquisition of Snack Factory. Special items for 2012 also
included gains on the sale of route businesses of approximately $8.3 million,
net of the incremental taxes incurred on these gains. Special items, after tax
expense, for 2011 included approximately $12.8 million of severance and
professional fee expenses associated with merger and other integration
efforts, approximately $6.5 million related to the impairment of
transportation equipment, and approximately $1.7 million of impairment charges
related to the closing of a manufacturing facility in Corsicana, TX. Special
items for 2011 also included after-tax gains on the sale of route businesses
of approximately $5.0 million and approximately $6.5 million related to a
change in vacation plan.  

Fourth quarter 2012 net revenues were $420 million including sales of Pretzel
Crisps^®, an increase of 1.9% compared to prior year fourth quarter net
revenues of $412 million. Fourth quarter 2012 net income was $20.4 million,
excluding special items, which was 44.4% above the $14.1 million of net
income, excluding special items for the prior year. Net income including
special items was $7.8 million for the fourth quarter 2012 compared to a
fourth quarter 2011 net income including special items of $22.4 million. 

Comments from Management
"This was an important and successful year for Snyder's-Lance," commented
David V. Singer, Chief Executive Officer.  "During 2012, we grew our earnings
more than 35%, excluding special items, and grew our sales by 2.2% when the
impact of our IBO conversion is excluded.  We completed our merger
integration, while we also rolled out and began to implement our strategic
plan.  In line with this plan, we delivered strong growth in our core branded
items of Snyder's of Hanover^®, Lance^® and Cape Cod^®, and we acquired Snack
Factory^® and the fast growing Pretzel Crisps^® brand.  In 2012, we also
invested in capacity and innovation capabilities while we improved margins on
our non-branded items by discontinuing sales to certain customers who did not
accept price increases. In the coming year, we'll continue to build on this
solid foundation as we drive for results that grow our top line and expand our
margins through innovation and continued strong execution in the marketplace. 
Our new R&D center will open in 2013, and it will support aggressive
innovation goals for our future." 

Mr. Singer continued, "As we recently announced, I have elected to retire from
my role as CEO following our annual shareholders meeting on May 3, 2013. Carl
E. Lee, Jr. our President and COO, will take on the title of CEO at that
time.  Our plans for 2013 and beyond look very bright, and with Carl's
exceptional leadership, I am confident in our ability to grow the Company and
drive shareholder value as we expand our reach to new consumers and markets."

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
March 6, 2013 to stockholders of record at the close of business on February
27, 2013.

Estimates provided for 2013
The Company estimates that its net revenue for the full year 2013 will be up
10% to 12% when compared to 2012.  Estimates for earnings per diluted share
show an increase between 22% and 32% compared to 2012 earnings per diluted
share, excluding special items.  Capital expenditures for 2013 are projected
to be between $78 and $83 million as investments are made in plant
improvements, quality, capacity and innovation.

Conference Call
Management will conduct a conference call and live webcast at 9:00 am eastern
time on Tuesday, February 12, 2013 to review the Company's full year 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
to download and print approximately 30 minutes before the webcast at
www.snyderslance.com. 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 February 12 and midnight on February 19. The replay telephone
number is (855) 859-2056 for U.S. callers or (404) 537-3406 for international
callers.  The replay access code is 93605983.  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. The Company'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,
Iowa, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio and Ontario,
Canada. Products are sold under the Snyder's of Hanover^®, Lance^®, Cape
Cod^®, Pretzel Crisps^®, Krunchers!^®, Tom's^®, Archway^®, Jays^®, Stella
D'oro^®, Eatsmart^®, O-Ke-Doke^®, Grande^® and Padrinos^® 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

Cautionary Note Regarding Forward-Looking Statements
This press release includes statements about future economic performance,
finances, expectations, plans and prospects of Snyder's-Lance, that constitute
forward-looking statements for purposes of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.    Some forward-looking
statements may be identified by use of terms such as "believe," "anticipate,"
"intend," "expect," "project," "plan," "may," "should," "could," "will,"
"estimate," "predict," "potential," "continue," and similar words.  Such
forward-looking statements are subject to certain risks, uncertainties and
other important factors that could cause actual results to differ materially
from those expressed in or suggested by such statements.

For further information regarding cautionary statements and factors affecting
future results, please refer to the risk factors in the Company's most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed subsequent
to the Annual Report.  Readers are cautioned not to unduly rely on forward
looking statements, which speak only as of the date made. The Company
undertakes no obligation to update or revise publicly any forward-looking
statement whether as a result of new information, future developments or
otherwise.

 

 

SNYDER'S-LANCE, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
(in thousands, except per share data)
                        Quarter Ended              Fiscal Year Ended
                        December 29,  December     December 29,   December 31,
                        2012          31, 2011     2012           2011
Net revenue             $             $            $              $        
                         419,826         412,127    1,618,634     1,635,036
Cost of sales           277,209       268,012      1,079,777      1,065,107
Gross margin            142,617       144,115      538,857        569,929
Selling, general and    115,733       110,412      440,597        495,267
administrative
Impairment charges      11,655        2,585        11,862         12,704
Gain on sale of route   (739)         (5,652)      (22,335)       (9,440)
businesses, net
Other (income)/expense, (283)         1,381        (407)          993
net
Income before interest  16,251        35,389       109,140        70,405
and income taxes
Interest expense, net   3,229         2,496        9,487          10,560
Income before income    13,022        32,893       99,653         59,845
taxes
Income tax expense      5,212         10,274       40,143         21,104
Net income              7,810         22,619       59,510         38,741
Net income attributable
to noncontrolling       28            192          425            483
interests
Net revenue             $             $            $              $          
attributable to              7,782         22,427   59,085           38,258
Snyder's-Lance, Inc.
Basic earnings per      $             $            $              $          
share                           0.11                   0.86             0.57
                                      0.33
Weighted average shares 68,725        67,798       68,382         67,400
outstanding – basic
Diluted earnings per    $             $            $              $          
share                          0.11          0.33      0.85             0.56
Weighted average shares 69,586        68,882       69,215         68,478
outstanding – diluted
Cash dividends declared $             $            $              $          
per share                       0.16                   0.64             0.64
                                      0.16

 

 

SNYDER'S-LANCE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
As of December 29, 2012 and December 31, 2011
(in thousands, except share data)
                                                    2012          2011
ASSETS
Current assets:
Cash and cash equivalents                           $ 9,276       $ 20,841
Accounts receivable, net of allowances of $2,159    141,862       143,238
and $1,884, respectively
Inventories                                         118,256       106,261
Income tax receivable                               —             18,119
Deferred income taxes                               11,625        21,042
Assets held for sale                                11,038        57,822
Prepaid expenses and other current assets           28,676        20,705
Total current assets                                320,733       388,028
Noncurrent assets:
Fixed assets, net                                   331,385       313,043
Goodwill                                            540,389       367,853
Other intangible assets, net                        531,735       376,062
Other noncurrent assets                             22,490        21,804
Total assets                                        $ 1,746,732   $ 1,466,790
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt                   $ 20,462      $ 4,256
Accounts payable                                    52,753        52,930
Accrued compensation                                31,037        29,248
Accrued profit-sharing and retirement plans         354           9,249
Accrual for casualty insurance claims               4,779         6,957
Accrued selling and promotional costs               16,240        21,465
Income tax payable                                  1,263         —
Other payables and accrued liabilities              27,735        31,041
Total current liabilities                           154,623       155,146
Noncurrent liabilities:
Long-term debt                                      514,587       253,939
Deferred income taxes                               176,037       196,244
Accrual for casualty insurance claims               9,759         7,724
Other noncurrent liabilities                        19,551        15,146
Total liabilities                                   874,557       628,199
Commitments and contingencies                       —             —
Stockholders' equity:
Common stock, $0.83 1/3 par value. Authorized
75,000,000 shares;
                                                    57,384        56,515
68,863,974 and 67,820,798 shares outstanding,
respectively
Preferred stock, $1.00 par value. Authorized        —             —
5,000,000 shares; no shares outstanding
Additional paid-in capital                          746,155       730,338
Retained earnings                                   50,847        35,539
Accumulated other comprehensive income              15,118        13,719
Total Snyder's-Lance, Inc. stockholders' equity     869,504       836,111
Noncontrolling interests                            2,671         2,480
Total stockholders' equity                          872,175       838,591
Total liabilities and stockholders' equity          $ 1,746,732   $ 1,466,790

 

 

SNYDER'S-LANCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Fiscal Years Ended December 29, 2012 and December 31, 2011
(in thousands)
                                                        2012        2011
Operating activities:
Net income                                              $  59,510   $ 38,741
Adjustments to reconcile net income to cash from
operating activities:
Depreciation and amortization                           53,764      55,337
Stock-based compensation expense                        4,693       2,535
Loss on sale of fixed assets, net                       597         1,851
Gain on sale of route businesses                        (22,335)    (9,440)
Impairment charges                                      11,862      12,704
Change in vacation plan                                 —           (9,916)
Deferred income taxes                                   (15,279)    6,026
Provision for doubtful accounts                         1,479       402
Changes in operating assets and liabilities, excluding  (1,523)     13,288
business acquisitions
Net cash provided by operating activities               92,768      111,528
Investing activities:
Purchases of fixed assets                               (80,304)    (57,726)
Purchases of route businesses                           (28,523)    (31,418)
Proceeds from sale of fixed assets                      9,324       4,351
Proceeds from sale of route businesses                  93,896      42,294
Proceeds from sale of investments                       1,444       960
Proceeds from federal grant for solar farm              —           4,212
Business acquisitions, net of cash acquired             (344,181)   (15,394)
Net cash used in investing activities                   (348,344)   (52,721)
Financing activities:
Dividends paid to stockholders                          (43,777)    (42,918)
Dividends paid to noncontrolling interests              (234)       (281)
Acquisition of remaining interest in Melisi Snacks,     —           (3,500
Inc.
Debt issuance costs                                     (2,028)     —
Issuances of common stock                               9,710       8,142
Excess tax benefits from stock-based compensation       2,618       49
Repurchases of common stock                             (335)       —
Repayments of long-term debt                            (2,476)     (62,309)
Proceeds from long-term debt                            325,211     —
Net (repayments)/proceeds from existing credit          (44,841)    35,098
facilities
Net cash provided by/(used in) financing activities     243,848     (65,719)
Effect of exchange rate changes on cash                 163         (124)
Decrease in cash and cash equivalents                   (11,565)    (7,036)
Cash and cash equivalents at beginning of fiscal year   20,841      27,877
Cash and cash equivalents at end of fiscal year         $  9,276    $ 20,841
Supplemental information:
Cash paid for income taxes, net of refunds of $12,591,  $  33,554   $ 2,364
$7,375 and $23, respectively
Cash paid for interest                                  $  10,533   $ 11,341

 

SNYDER'S-LANCE, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
(Unaudited)
(in thousands, except per share data)
                                            Net of
                                                             Per Diluted Share
                                            Tax
Quarter Ended December 29, 2012
Net income attributable to Snyder's-Lance,  $                $              
Inc.                                         7,782           0.11
   Merger-related items                     1,149            0.02
   Snack Factory acquisition costs          876              0.01
   Manufacturing consolidation activities   3,238            0.04
   Trademark impairment                     4,966            0.07
   Disposal costs and fixed asset           1,896            0.03
impairments
   Gain on sale of route businesses         (411)            0.00
   Incremental income tax associated with
non-deductible goodwill                     897              0.01

    on the sale of route businesses
Net income attributable to Snyder's-Lance,  $                $              
Inc., excluding special items                20,393          0.29
Quarter Ended December 31, 2011
Net income attributable to Snyder's-Lance,  $                $              
Inc.                                         22,427          0.33
   Costs related to closing the Corsicana,  1,690            0.02
TX manufacturing facility
   Change in vacation policy                (6,445)          (0.09)
   Gain on sale of route businesses         (4,618)          (0.07)
   Other merger-related costs – severance   1,065            0.01
and professional fees
Net income attributable to Snyder's-Lance,  $                $              
Inc., excluding special items                14,119          0.20
Year Ended December 29, 2012
Net income attributable to Snyder's-Lance,  $                $              
Inc.                                         59,085          0.85
   Merger-related items                     2,589            0.04
   Snack Factory acquisition costs          1,163            0.02
   Manufacturing consolidation activities   4,921            0.07
   Trademark impairment                     4,966            0.07
   Disposal costs and fixed asset           1,621            0.03
impairments
   Gain on sale of route businesses         (13,869)         (0.21)
   Incremental income tax associated with
non-deductible goodwill                     5,604            0.08

    on the sale of route businesses
Net income attributable to Snyder's-Lance,  $                $              
Inc., excluding special items                66,080          0.95
Year Ended December 31, 2011
Net income attributable to Snyder's-Lance,  $                $              
Inc.                                         38,258          0.56
   Impairment of route trucks               6,481            0.09
   Costs related to closing the Corsicana,  1,690            0.02
TX manufacturing facility
   Change in vacation policy                (6,445)          (0.09)
   Gain on sale of route businesses         (4,975)          (0.07)
   Other merger-related costs – severance   12,764           0.19
and professional fees
Net income attributable to Snyder's-Lance,  $                $              
Inc., excluding special items                47,773          0.70

 

 

 

SOURCE Snyder's-Lance, Inc.

Website: http://www.snyderslance.com
Contact: Mark Carter, VP Strategic Initiatives and Investor Relations,
+1-704-557-8386, or Joe Calabrese, Financial Relations Board, +1-212-827-3772