Snyders-Lance Inc Reports Results For First Quarter Of Fiscal 2016

PRESS RELEASE

» Net revenue declined 0.7% excluding Diamond Foods acquisition

» Diluted earnings per share, excluding special items*, increased 47% to $0.25

» Net loss per share of $0.32 including special items

» Adjusted EBITDA* increased 45% to $55.7 million

» Updates 2016 full-year outlook to reflect the acquisition of Diamond Foods

* Descriptions of adjusted EBITDA and diluted earnings per share excluding special items are provided in "Use and Definition of Non-GAAP Measures," and reconciliations are provided in the tables at the end of this release.

Snyder's-Lance, Inc. (Nasdaq-GS: LNCE) today reported financial results for the first quarter of fiscal 2016 ended April 2, 2016. The first quarter financial results include one month of the consolidation of Diamond Foods Inc., following the acquisition which closed on February 29, 2016.

"After successfully renovating Cape Cod and Lance sandwich crackers to fuel top-line and bottom-line growth, we are leveraging our marketing, manufacturing and sales expertise to renovate and energize the pretzel category and our Snyder's of Hanover brand. In addition to growing retail distribution and display support for Snyder's of Hanover, we recently launched our Pretzels Baby integrated marketing and advertising campaign," Lee continued. "The early results are encouraging as we are generating positive social media response from both new and loyal consumers. We are confident that we will continue to build momentum as we move throughout the year, and I'm very proud of the team for their commitment and execution."

Lee continued, "During the first quarter, we closed the Diamond Foods acquisition. We quickly began to execute our integration plan, and we are already benefitting from the combination of these two great companies. The powerful combination gives Snyder's-Lance an enhanced portfolio of brands across key snack food categories with a deeper, stronger combined team ready to unlock new distribution opportunities. We are now better positioned in the growing snack food industry, and we expect to realize significant cost and revenue synergies that will deliver earnings accretion and support further investment behind our brands. I'm very excited about the opportunities that lie ahead, and our ability to create even greater value for our shareholders as we execute our strategic plan."

First-Quarter 2016 Financial Summary

The first quarter of fiscal 2016 financial results include the financial results of Diamond Foods beginning on February 29, 2016. All financial comparisons to the prior year are compared against the legacy Snyder's-Lance results, where the prior year does not include any impact from the Diamond Foods acquisition.

» Net revenue for the first quarter of 2016 was $462.8 million, an increase of 15.0% compared to the first quarter of 2015 net revenue of $402.3 million. Excluding the contribution from Diamond Foods, net revenue for the first quarter of 2016 declined 0.7% compared to the first quarter of 2015 with volume growth of 1.2% offset by planned promotional activities.

» Adjusted EBITDA for the first quarter of 2016 was $55.7 million as compared to adjusted EBITDA of $38.4 million for the first quarter of 2015.

» Net income excluding special items for the first quarter of 2016 was $19.9 million, or $0.25 per diluted share on 80.8 million weighted average diluted shares outstanding. Net income excluding special items was $12.0 million for the first quarter of 2015, or $0.17 per diluted share on 71.0 million weighted average diluted shares outstanding.

» Including special items, the net loss for the first quarter of 2016 was $25.4 million, or $0.32 per share on 80.0 million weighted average shares outstanding. Net income including special items for the first quarter of 2015 was $10.6 million, or $0.15 per diluted share on 71.0 million weighted average diluted shares outstanding.

» Special items for the first quarter of 2016 included after-tax expenses of $45.3 million primarily associated with the acquisition of Diamond Foods. Special items for the first quarter of 2015 included after-tax expenses of $1.3 million primarily associated with severance charges and professional fees.

Fiscal 2016 Outlook

The company has updated its fiscal 2016 outlook to reflect the recent acquisition of Diamond Foods and the company's expectations for the remainder of the year. As a result, the company now expects earnings per diluted share to be in the range of $1.20 to $1.30. The company's fiscal 2016 outlook excludes special items and charges associated with the acquisition of Diamond Foods, and includes an estimated negative impact of $0.10 to $0.12 per diluted share, from purchase accounting adjustments.

Click here to see the Snyder's-Lance Inc.'s full report and income statements.

ABOUT: Snyder's-Lance Inc., headquartered in Charlotte, NC, manufactures and markets snack foods throughout the United States and internationally. Snyder's-Lance's products include pretzels, sandwich crackers, pretzel crackers, potato chips, cookies, tortilla chips, restaurant style crackers, popcorn, nuts and other snacks. Products are sold under the Snyder's of Hanover, Lance, Kettle Brand, Kettle Chips, Cape Cod, Snack Factory Pretzel Crisps, Pop Secret, Emerald, Diamond of California, Late July, Krunchers!, Tom's, Archway, Jays, Stella D'oro, Eatsmart Snacks, O-Ke-Doke, and other brand names along with a number of third party brands. Products are distributed nationally through grocery and mass merchandisers, convenience stores, club stores, foodservice outlets and other channels. Visit snyderslance.com.