Snyder's-Lance, Inc. Reports Results for First Quarter 2011

CHARLOTTE, N.C., May 5, 2011 /PRNewswire/ --

• Net revenue of $388 million, a 75% increase over 2010
• Reports 2011 first quarter earnings per diluted share of $0.17 excluding special items
• Reports 2011 first quarter earnings per diluted share of $0.16 including special items
• Declares quarterly dividend of $0.16 per share on common stock
• Comparisons made in this release to prior year relate to the prior year reported results for Lance, Inc. only

Snyder's-Lance, Inc. (Nasdaq-GS: LNCE) today reported results for its first quarter of 2011.  Financial results include the first full quarter of operations following the merger with Snyder's of Hanover, Inc.("Merger"), which was completed on December 6, 2010.

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Net revenues for the first quarter ended April 2, 2011, were $388 million, an increase of 75% over prior year net revenues of $222 million that were reported by Lance, Inc. ("Lance")prior to the Merger. This growth was primarily a result of the incremental revenue resulting from the Merger and was supported by solid growth across our core products. In the first quarter of 2011, we realized net income excluding special items of $11.8 million, or $0.17 per diluted share, as compared to first quarter 2010 net income excluding special items of $1.2 million, or $0.04 per diluted share that was reported by Lance prior to the Merger. Net income including special items was $10.8 million for the first quarter of 2011 compared to a net loss of $0.7 million for the first quarter of 2010.  Special items for the first quarter of 2011 included after-tax expenses of $1.0 million related to the Merger.  The special items for the first quarter of 2010 included after-tax expenses of $1.9 million associated with merger and acquisition activity.

Comments from Management

"We continue to be very excited about the Merger which has created Snyder's-Lance," commented David V. Singer, Chief Executive Officer.  "Our first quarter results were strong, and I am extremely proud of everyone at Snyder's-Lance for delivering these great results while making real progress toward integration. Our branded products showed solid growth for the first quarter, and we anticipate good performance for the balance of 2011.  We have started to execute our integration plan, including the transition of company owned routes to independent operators as outlined in our recent press release.  Most major organizational decisions have been announced, and we are now focused on serving our customers, continuing to plan and execute our integration plans, and working to realize the synergies and cost savings anticipated from the Merger.  As previously discussed, we expect to complete the vast majority of our integration by mid-2012, and are committed to delivering solid financial results while completing this work. We have a number of demanding months ahead, but I am confident in our team to drive day-to-day results while completing this important effort."

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 24, 2011 to stockholders of record at the close of business on May 16, 2011.

Guidance Provided for 2011

As previously discussed, we anticipate delivering a portion of our anticipated cost and revenue synergies in the latter half of 2011, but most of our integration plan will not be completed until mid-2012.  When synergies are fully realized, the benefits from integration and sales growth are expected to deliver 2.5% to 3.0% improvements in operating profit margins off our 2010 base.

Overall, we expect that 2011 performance will continue to be difficult to predict as a number of variables may impact earnings and revenue in the short term while we continue the integration. However, we are estimating full year 2011 earnings per share (EPS)to be in a range of $0.85 to $1.00 on a fully diluted basis.  Additionally, we estimate that net revenue will be between $1.59 and $1.65 billion for the full year 2011, and estimate capital expenditures to be in a $60 million to $70 million range for the year.  

Conference Call

Snyder's-Lance, Inc. has scheduled a conference call and presentation with investors at 9:00 am eastern time on Thursday, May 5, 2011 to discuss financial results.  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 May 5th and midnight on May 12th.  The replay telephone number is (800) 642-1687 for U.S. callers or (706) 645-9291 for international callers.  The replay access code is 60735608.  Investors may also access a web-based replay of the conference call at Snyder's-Lance's web site, www.lanceinc.com.

The conference call and accompanying slide presentation will be webcast live through the Investor Relations section of Snyder's-Lance, Inc.'s website www.lanceinc.com. In addition, the slide presentation will be available to download and print approximately 30 minutes before the webcast at Snyder's-Lance's Investor Relations home page.

About Snyder's-Lance, Inc.

Snyder's-Lance, Inc., headquartered in Charlotte, North Carolina, manufactures, markets and distributes snack foods throughout the United States and internationally. The company's products include pretzels, sandwich crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. Snyder's-Lance, Inc. has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Texas, Florida, Ohio, and Ontario, Canada. Products are sold under brand names including Snyder's of Hanover, Lance, Cape Cod, Tom's, Jays, Krunchers!, Grande, Archway, O-Ke-Doke, and Stella D'oro along with a number of private label and third party brands. Products are distributed widely through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels.

This news release contains statements which may be forward looking within the meaning of applicable securities laws. The statements may include projections regarding future earnings and 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; increases in cost or availability of ingredients, packaging, energy and employees; price competition and industry consolidation; loss of major customers or changes in product offerings with significant customers; business disruption from merger integration and conversion of our distribution network to independent operators, including failure to realize anticipated synergies in a timely manner or the loss of key personnel; failure to maintain proper and effective internal controls; ability to execute strategic initiatives; product recalls and concerns surrounding the quality or safety of products and ingredients; disruptions to our supply chain or information technology systems; changes in consumer preferences; inability to maintain existing markets or expand to other geographic markets; potential threats to trademarks and other proprietary intellectual rights; food industry and regulatory factors; interest rate and foreign exchange rate risks; and the interests of significant stockholders 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.

SOURCE Snyder's-Lance, Inc.