Snyder's-Lance Reports $439 Million Net Revenue For Second Quarter 2013

Snyder's-Lance, Inc. 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 percent 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.

"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, in a prepared statement. "Growing our top line at 10 percent 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 percent 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."

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."

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