Snyder's-Lance, Inc. Reports 1.1 Percent Gain In First Quarter Net Revenue

Snyder's-Lance, Inc. reported results for its first quarter of 2012. Net revenues for the first quarter ended March 31, 2012 were $393 million, an increase of 1.1 percent over prior year net revenues of $388 million. Net revenue growth when adjusting for the impact of the independent business owner (IBO) route system conversion was 4.2 percent. This growth was primarily driven by increased revenues from our branded products. In the first quarter of 2012, net income excluding special items was $11.4 million, or $0.17 per diluted share, as compared to first quarter 2011 net income excluding special items of $11.8 million, or $0.17 per diluted share.

Net income including special items was $14.2 million for the first quarter of 2012, or $0.21 per diluted share, compared to net income including special items of $10.8 million, or $0.16 per diluted share, for the first quarter of 2011. Special items for the first quarter of 2012 included after-tax gains of $4.9 million on the sale of routes as well as after-tax expenses of $1.2 million for merger related items and $0.9 million associated with asset transfer expenses due to the closing of the manufacturing facility in Corsicana, Texas. Special items for the first quarter of 2011 included after-tax expenses of $1.0 million associated with the merger of Lance, Inc. and Snyder's of Hanover, Inc.

"We were pleased with our results for the first quarter of 2012. Earnings were in line with our expectations, and we continued to show solid momentum in net sales growth," commented David V. Singer, chief executive officer in a prepared statement. "Our team continues to do an exceptional job of executing on the complex challenges of the merger integration while delivering solid top line performance. I'm very pleased with our progress. Branded products net revenues grew by 6.2 percent excluding the reduction in net sales associated with converting from a company-owned to an IBO route system. This growth was driven by our core brands (Snyder's of Hanover pretzels, Lance sandwich crackers and Cape Cod kettle chips), each of which delivered double digit growth in sales in the first quarter."

Singer continued, "We expect to meet our commitment of completing the work of integration by the middle of 2012 and to see a widening of margins on a run-rate basis in the back half of the year as synergies are realized. I'm very proud of what has been accomplished by our associates in the past 16 months, and we will continue our integration efforts while focusing clearly on growing core branded items and widening our profit margins."