Snyder’s-Lance: Reports Results for Q2/2015

Charlotte / NC. (sli) Snyder’s-Lance Inc. reported second quarter net revenue growth of eight percent over last year, with earnings of 0.27 USD per diluted share excluding special items and 0.24 USD per diluted share including special items.

«Our team delivered solid results for the second quarter, continuing our positive momentum for 2015. Our balanced portfolio of «better for you» and premium products are winning with consumers looking for snacks that taste great and provide fuel for their busy day», said Carl E. Lee, Jr., President and CEO. «During the second quarter, core brand sales were led by «Cape Cod» Kettle Chips which grew at double digits. «Snyder’s of Hanover» pretzels gained significant market share during the quarter thanks to innovative new products and our new advertising campaign, «Discover the Pretzelbilities», «Snack Factory», «Pretzel Crisps» and «Late July» both delivered strong top line performance and market share gains driven by the Clearview Division team. «Lance» sandwich crackers gained market share over the latest 26 weeks, led by our balanced distribution strategy of leveraging DSD and Direct Sales to improve retail execution and reach new customers. During the second quarter, we secured new distribution for «Lance» driving incremental growth for this renovated brand. Expense control across the company has been a focus all year contributing to operating margin expansion for the quarter. In addition, we accomplished two significant system implementations that came online flawlessly in the second quarter, showing once again our excellence in this area. Overall, we had a good quarter and I am very proud of our team for their commitment to winning».

Lee continued, «Snyder’s-Lance is perfectly positioned for success as consumers and retailers continue to reshape the snacking industry. As a nimble mid-size company, we are able to respond quickly to emerging trends with our balanced portfolio and balanced distribution strategies. While the commitment to innovation and the growth of our brands is stronger than ever, we are just as determined to continue our focus on cost reductions. We have balanced our execution over the past few years to invest in manufacturing capacity, brands, systems, R+D, sales teams and productivity while increasing our margins. With most of the renovation and investment in infrastructure behind us, we are spending even more time on expanding margins and driving shareholder value. We are enthusiastic about the future as we build on our momentum».

Second Quarter Financial Summary

• Net revenue for the second quarter of 2015 was 431.4 million USD, an increase of 8.0 percent compared to second quarter of 2014 net revenue of 399.6 million USD.
• Net income excluding special items for the second quarter of 2015 was 19.1 million USD, or 0.27 USD per diluted share, as compared to net income excluding special items of 15.8 million USD for the second quarter of 2014, or 0.22 USD per diluted share.
• Including special items, net income for the second quarter of 2015 was 17.3 million USD, or 0.24 USD per diluted share, as compared to net income including special items of 8.2 million USD for the second quarter of 2014, or 0.11 USD per diluted share.
• Special items for the second quarter of 2015 included after-tax expenses of 1.8 million USD primarily associated with legal fees and an accrual for the likely settlement of certain litigation involving industry wide packaging claims. Special items for the second quarter of 2014 included after-tax expenses of 7.6 million USD primarily associated with restructuring and impairment charges as well as certain transaction related expenses.

First Six Months Financial Summary

• Net revenue for the first six months of 2015 was 833.8 million USD, an increase of 7.9 percent compared to the first six months of 2014 net revenue of 772.6 million USD.
• Net income excluding special items for the first six months of 2015 was 31.1 million USD, or 0.44 USD per diluted share, as compared to net income excluding special items of 27.7 million USD for the first six months of 2014, or 0.39 USD per diluted share.
• Including special items, net income for the first six months of 2015 was 28.0 million USD, or 0.39 USD per diluted share, as compared to net income including special items of 18.6 million USD for the first six months of 2014, or 0.26 USD per diluted share.
• Special items for the first six months of 2015 included after-tax expenses of 3.1 million USD primarily associated with legal fees and an accrual for the likely settlement of certain litigation involving industry wide packaging claims. Special items for the first six months of 2014 included after-tax expenses of 9.1 million USD primarily associated with restructuring and impairment charges as well as certain transaction related expenses.

Dividend Declared

The Company also announced the declaration of a quarterly cash dividend of 0.16 USD per share on the Company’s common stock. The dividend is payable on August 31, 2015 to stockholders of record at the close of business on August 25, 2015.

Estimates for 2015

Management has not changed estimates for 2015, with net revenue for the full year expected to be in the range of 1.69 to 1.72 billion USD. The earnings per diluted share estimates range remains at 1.11 USD to 1.19 USD, with capital expenditures for 2015 projected to be between 60 and 62 million USD.

Imgage Source: Lititz Springs Pretzel Company / Library of U.S. Congress / fsa 8d10196 (Digital ID)