-- Reports 2013 second quarter net revenue of $439 million, an increase of 9.9% over prior year
-- Reports 2013 second quarter earnings per diluted share of $0.24 excluding special items
-- Reports 2013 second quarter earnings per diluted share of $0.19 including special items
-- Declares quarterly dividend of $0.16 per share of common stock
CHARLOTTE, N.C., Aug. 6, 2013 /PRNewswire/ -- Snyder's-Lance Inc. (Nasdaq-GS: LNCE) today reported results for its second quarter of 2013. Net revenue for the second quarter ended June 29, 2013 was $439 million, an increase of 9.9% compared to prior year net revenue of $399 million. Net income excluding special items in the second quarter of 2013 was $16.9 million, or $0.24 per diluted share, as compared to second quarter 2012 net income excluding special items of $15.0 million, or $0.22 per diluted share. Net income was $13.0 million for the second quarter of 2013, or $0.19 per diluted share, compared to net income of $19.5 million, or $0.28 per diluted share, for the second quarter of 2012. Special items for the second quarter of 2013 included after-tax expenses of $1.2 million for impairment charges and $2.7 million for a substantial self-funded medical expense. Special items for the second quarter of 2012 included after-tax gains of $4.8 million on the sale of route businesses from the merger integration as well as after-tax expenses of $0.5 million for other merger related expenses.
Comments from Management
"We are pleased with our performance in the second quarter of 2013 as Snyder's-Lance continues to execute on the fundamentals of our strategic plan to build a stronger, premium and differentiated snack foods company," commented Carl E. Lee, Jr., President and Chief Executive Officer. "Growing our top line at 10% year over year through a combination of acquired and organic growth demonstrates our team is capable of winning on many fronts. Our plan of emphasizing core brands, while expanding margins for our Private Brands and other products over time, is proving to be a solid path forward for creating shareholder value. As previously discussed, we increased our investment in marketing and advertising during the second quarter to build brand awareness and drive sales in the second half of the year. During the quarter, we stepped up our advertising spending to launch a new television advertising campaign for Snyder's of Hanover® pretzels. We also increased social media promotional activities for the 100-year anniversary of the Lance® brand, a significant milestone for our company. We continued to benefit from our acquisition of Snack Factory® Pretzel Crisps® which posted significant year over year revenue and market share gains. Net revenue for our core branded products was up 22% for the second quarter, largely driven by acquired volume. In addition, all of these core brands posted market share gains for full year 2013. We expect solid sales momentum in the second half of 2013 as our core brand advertising, marketing and promotional efforts begin to influence retail sales."
Mr. Lee continued, "Ongoing consumer and marketing efforts are planned for the third quarter. We firmly believe that our strategic plan remains solid and we have a number of product innovations and initiatives for the remainder of 2013 and beyond to build our brands and expand their distribution. Snyder's-Lance is very excited about the future, and I want to thank our associates and partners for their continued commitment and dedication."
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 onAugust 30, 2013 to stockholders of record at the close of business on August 21, 2013.
The Company has maintained its estimates for the full year 2013. The Company estimates that its net revenue for the full year 2013 will be up 10% to 12% and earnings per diluted share will increase between 22% and 32%, excluding special items, compared to 2012. Capital expenditures for 2013 are projected to be between $78 and $83 million.
Snyder's-Lance, Inc. has scheduled a conference call and presentation with investors at 9:00 am eastern time on Tuesday, August 6, 2013 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 August 6 and midnight on August 13. The replay telephone number is (855) 859-2056 for U.S. callers or (404) 537-3406 for international callers. The replay access code is 21891279. Investors may also access a web-based replay of the conference call at www.snyderslance.com.
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.
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 andOntario, 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®, 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