CHARLOTTE, N.C., Oct. 28, 2015 /PRNewswire/ -- Snyder's-Lance, Inc. today reported third quarter net revenue growth of 2% over last year, with earnings of $0.26 per diluted share excluding special items and $0.22 per diluted share including special items.
"We are excited about our announcement made earlier this morning of a definitive agreement to acquire Diamond Foods, Inc. in a deal that is expected to close early in 2016. As we have worked toward the signing of this agreement, we have also reacted to the short term challenges of Q3 and continue to execute our strategic plan," said Carl E. Lee, Jr., President and CEO. "Late July® and Snack Factory® Pretzel Crisps® brought in solid top line performance for our Clearview Division while Snyder's of Hanover® and Lance® continued to drive good year-over-year increases for the quarter. Cape Cod® kettle chips delivered strong sales increases as well. Overall, we delivered year over year growth and gained share in all five core brands in spite of retailer consolidations, a softer back-to-school selling season and significant challenges in the mass merchandiser channel."
Mr. Lee continued, "In today's environment, it is critical to remain competitive on the cost side of the business. We announced on our last earnings call our intention to reach of 10% operating income run rate. We made significant progress toward realizing this goal in Q3 with our 'Drive for 10' initiative, which will be ongoing throughout the year. Led by senior leaders and staffed with some of our most talented cross functional associates, we expect to realize our goals in cost savings and leverage from this program in 2016. With a clear focus on top line growth and cost savings, we look forward to driving more positive near term results and moving forward with increased momentum. I am confident in our ability to deliver positive results as we continue the work to complete the acquisition of Diamond Foods."
Third Quarter Financial Summary
- Net revenue for the third quarter of 2015 was $416.8 million, an increase of 1.8% compared to the third quarter of 2014 net revenue of $409.3 million.
- Net income excluding special items for the third quarter of 2015 was $18.6 million, or $0.26 per diluted share, as compared to net income excluding special items of $16.4 million for the third quarter of 2014, or $0.23 per diluted share.
- Including special items, net income for the third quarter of 2015 was $15.7 million, or $0.22 per diluted share, as compared to net income including special items of $13.7 million for the third quarter of 2014, or $0.19 per diluted share.
- Special items for the third quarter of 2015 included after-tax expenses of $2.9 million primarily associated with an accrual for the expected settlement of certain litigation. Special items for the third quarter of 2014 included after-tax expenses of $2.7 million primarily associated with a deferred tax revaluation which was required as a result of the sale of Private Brands.
First Nine Months Financial Summary
- Net revenue for the first nine months of 2015 was $1.25 billion, an increase of 5.8% compared to the first nine months of 2014 net revenue of $1.18 billion.
- Net income excluding special items for the first nine months of 2015 was $49.7 million, or $0.70 per diluted share, as compared to net income excluding special items of $44.0 million for the first nine months of 2014, or $0.62 per diluted share.
- Including special items, net income for the first nine months of 2015 was $43.6 million, or $0.61 per diluted share, as compared to net income including special items of $32.3 million for the first nine months of 2014, or $0.46 per diluted share.
- Special items for the first nine months of 2015 included after-tax expenses of $6.0 million primarily associated with legal fees and accruals for expected settlements of certain litigation. Special items associated with continuing operations for the first nine months of 2014 included after-tax expenses of $4.8 million for impairment charges, $2.3 million for restructuring charges, $2.0 million in professional fees, $0.6 million for self-funded medical expenses and a $2.1 million deferred tax revaluation. Full report.
