Lancaster Colony Reports Third Quarter Sales And Earnings

          Lancaster Colony Reports Third Quarter Sales And Earnings

PR Newswire

COLUMBUS, Ohio, May 1, 2014

COLUMBUS, Ohio, May 1, 2014 /PRNewswire/ --Lancaster Colony Corporation
(Nasdaq: LANC) today reported results for the company's third fiscal quarter
ended March31, 2014. All prior-period financial results of the Glassware and
Candles segment have been reclassified to discontinued operations due to the
sale of effectively all the net operating assets of this segment on January
30, 2014. Highlights of the quarter:

  oNet sales decreased two percent to $242million versus $247million in the
    third quarter last year due to lower sales of frozen retail products, in
    part due to the influence of this year's later Easter. Also impacting net
    sales was somewhat lower pricing to the foodservice channel and the effect
    of adverse winter weather on consumer demand.
  oIncome from continuing operations was $18,900,000 compared with
    $20,733,000 for the corresponding quarter a year ago, primarily reflecting
    lower sales, a less favorable sales mix and a higher effective tax rate.
    Earnings per share from continuing operations were 69 cents compared to 76
    cents a year ago.
  oIncluding the loss from discontinued operations of $29.3 million or $1.07
    per share, which incorporated a pre-tax loss of approximately $44 million
    on the sale of the company's candle manufacturing and marketing
    operations, the reported net loss for the quarter totaled $10.4 million,
    or $.38 per share. In the third quarter a year ago, net income totaled
    $21.8 million, or $.80 per share, inclusive of income from discontinued
    operations of $1.1 million, or $.04 per share.
  oThe company's balance sheet remained strong with no debt outstanding at
    March31, 2014, and $201 million in cash and equivalents.
  oThe quarterly cash dividend was continued at the higher level of $.44 per
    share set last quarter, as Lancaster Colony has increased its regular cash
    dividend each year for 51 consecutive years.

For the nine months ended March31, 2014, net sales were $782million compared
to $769million a year ago. Income from continuing operations totaled
$80,085,000 or $2.93 per share. Net income was $53.7 million or $1.96 per
diluted share. Net of tax, the loss from discontinued operations, including
the loss on sale, totaled $26.4 million, or $.97 per share. Income from
continuing operations in the year ago nine-month period was $78,459,000, or
$2.87 per share. Income from discontinued operations totaled $5.3 million, or
$.19 per diluted share. Net income for the nine months last year totaled
$83.8 million or $3.06 per share.

John B. Gerlach, Jr., chairman and CEO, said, "For the quarter, the benefit
from lower net material costs was more than offset by the impact of lower net
sales and a less-favorable sales mix as the segment's operating income
declined seven percent. Additionally, as influenced by the adverse weather
conditions, we also experienced incremental costs associated with freight and
operational downtime."

Looking ahead, Mr. Gerlach added, "We anticipate comparative results of the
fourth quarter to be bolstered by the shift in Easter's timing, the continued
favorability in material costs and modest benefit from new products being
brought to market in both our retail and foodservice sales channels. However,
we anticipate somewhat higher overall marketing costs and expect our
investment in introductory costs associated with several of the new products
to be significant. We also remain generally cautious regarding consumer
sentiment. Regardless, our debt-free balance sheet allows us to retain a
considerable amount of operating flexibility supportive of long-term future

Conference Call on the Web
The company's third quarter conference call is scheduled for this morning, May
1, at 10:00a.m. ET. You may access the call through a live webcast by using
the link provided on the company's Internet home page at Replays of the webcast will be made available on the
company website.

About the Company
Lancaster Colony Corporation is a manufacturer and marketer of specialty food
products for the retail and foodservice markets.

Forward-Looking Statements
We desire to take advantage of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 (the "PSLRA"). This news release
contains various "forward-looking statements" within the meaning of the PSLRA
and other applicable securities laws. Such statements can be identified by the
use of the forward-looking words "anticipate," "estimate," "project,"
"believe," "intend," "plan," "expect," "hope" or similar words. These
statements discuss future expectations; contain projections regarding future
developments, operations or financial conditions; or state other
forward-looking information. Such statements are based upon assumptions and
assessments made by us in light of our experience and perception of historical
trends, current conditions, expected future developments; and other factors we
believe to be appropriate. These forward-looking statements involve various
important risks, uncertainties and other factors, many of which are beyond our
control, which could cause our actual results to differ materially from those
expressed in the forward-looking statements. Some of the key factors that
could cause actual results to differ materially from those expressed in the
forward-looking statements include:

  othe potential for loss of larger programs or key customer relationships;
  othe effect of consolidation of customers within key market channels;
  othe success and cost of new product development efforts;
  othe lack of market acceptance of new products;
  othe reaction of customers or consumers to the effect of price increases we
    may implement;
  ochanges in demand for our products, which may result from loss of brand
    reputation or customer goodwill;
  othe possible occurrence of product recalls or other defective or
    mislabeled product costs;
  oprice and product competition;
  ofluctuations in the cost and availability of raw materials;
  oadverse changes in energy costs and other factors that may affect costs of
    producing, distributing or transporting our products;
  omaintenance of competitive position with respect to other manufacturers;
  odependence on key personnel;
  ostability of labor relations;
  odependence on contract copackers and limited or exclusive sources for
    certain goods;
  ochanges in estimates in critical accounting judgments;
  othe outcome of any litigation or arbitration; and
  orisks related to other factors described under "Risk Factors" in other
    reports and statements filed by us with the Securities and Exchange
    Commission, including without limitation our Annual Report on Form 10-K
    and Quarterly Reports on Form 10-Q (available at

Forward-looking statements speak only as of the date they are made, and we
undertake no obligation to update such forward-looking statements, except as
required by law. Management believes these forward-looking statements to be
reasonable; however, you should not place undue reliance on statements that
are based on current expectations.



(In thousands except per-share amounts)
                        Three Months Ended             Nine Months Ended
                        March 31,                     March 31,
                        2014            2013           2014          2013
Net sales               $  241,849      $  247,098     $  782,267    $ 768,613
Cost of sales           189,941         193,265        591,565       581,613
Gross margin            51,908          53,833         190,702       187,000
Selling, general &      23,073          23,113         69,251        69,305
administrative expenses
Operating income        28,835          30,720         121,451       117,695
Interest income and     (204)           (15)           (328)         (6)
other – net
Income from continuing
operations before       28,631          30,705         121,123       117,689
income taxes
Taxes based on income   9,731           9,972          41,038        39,230
Income from continuing  18,900          20,733         80,085        78,459
operations, net of tax:
 Income from           325             1,100          3,175         5,313
discontinued operations
 Loss on sale of       (29,601)        —              (29,601)      —
discontinued operations
Total discontinued      (29,276)        1,100          (26,426)      5,313
Net (loss) income       $  (10,376)     $  21,833      $  53,659     $ 83,772
Net income (loss) per
common share:(a)
Continuing operations - $  0.69         $  0.76        $  2.93       $ 2.87
basic and diluted
Discontinued operations $  (1.07)       $  0.04        $  (0.97)     $ 0.20
- basic
Discontinued operations $  (1.07)       $  0.04        $  (0.97)     $ 0.19
- diluted
Net (loss) income -     $  (0.38)       $  0.80        $  1.97       $ 3.06
Net (loss) income -     $  (0.38)       $  0.80        $  1.96       $ 3.06
Cash dividends per      $  0.44         $  0.38        $  1.28       $ 6.12
common share
Weighted average common
shares outstanding:
Basic                   27,261          27,259         27,258        27,244
Diluted                 27,297          27,287         27,303        27,275
(a) Based on the weighted average number of shares outstanding during each
(b) Certain glassware and candles operations have been reflected as
discontinued operations in all periods presented.



(In thousands)
                            Three Months Ended    Nine Months Ended
                            March 31,            March 31,
                            2014       2013       2014       2013
NET SALES - Specialty Foods $ 241,849  $ 247,098  $ 782,267  $ 768,613
 Specialty Foods          $ 31,408   $ 33,648   $ 130,364  $ 126,790
 Corporate expenses       (2,573)    (2,928)    (8,913)    (9,095)
                            $ 28,835   $ 30,720   $ 121,451  $ 117,695



(In thousands)
                                                        March 31,  June 30,
                                                        2014      2013
Current assets:
 Cash and equivalents                                 $ 201,328  $ 123,385
 Receivables – net of allowance for doubtful accounts 61,756     56,337
 Total inventories                                    67,737     67,809
 Deferred income taxes and other current assets       33,312     22,550
 Current assets of discontinued operations            —          55,977
 Total current assets                              364,133    326,058
Net property, plant and equipment                       163,986    168,074
Other assets                                            102,146    103,231
Noncurrent assets of discontinued operations            —          22,601
 Total assets                                   $ 630,265  $ 619,964
Current liabilities:
 Accounts payable                                     $ 40,261   $ 36,459
 Accrued liabilities                                  30,452     32,602
 Current liabilities of discontinued operations       —          8,116
 Total current liabilities                         70,713     77,177
Other noncurrent liabilities and deferred income taxes  41,043     41,565
Shareholders' equity                                    518,509    501,222
 Total liabilities and shareholders' equity     $ 630,265  $ 619,964

SOURCE Lancaster Colony Corporation

Contact: John L. Boylan, Vice President, Treasurer and CFO, or Dale N.
Ganobsik, Director of Investor Relations, Lancaster Colony Corporation,
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