CHARLOTTE, N.C., July 22, 2011 /PRNewswire/ -- Snyder's-Lance, Inc. (Nasdaq-GS: LNCE) today
announced that, based on current information and market conditions
impacting its private brand products, it expects diluted earnings
per share (EPS) for the full year 2011 to be in a range of
$0.75 to $0.90, excluding special
items. The Company's previous guidance, announced May 5, 2011, estimated full year 2011 EPS to be
in the range of $0.85 to $1.00,
excluding special items, on a fully diluted basis. The
primary driver for the decline in guidance is lower profit margins
for the Company's private brand products, resulting primarily from
a lag in pricing realization compared to the cost of commodities.
The Company also currently estimates that diluted EPS for second
quarter ended July 2, 2011 to be in
the range of $0.15 to $0.17,
excluding special items. Additionally, the Company expects to
record a charge for the second quarter 2011 totaling approximately
$15 million after taxes, including
non-cash expenses related to the impairment of transportation
equipment and severance expenses. These charges relate to the
conversion of the Company's Direct Store Delivery (DSD) system to
an independent operator model, consistent with the integration plan
following the merger with Snyder's
of Hanover, Inc. The Company
expects that second quarter 2011 EPS, including special items, will
be a loss in the range of ($0.05) to
($0.07). The Company believes that the gains from the
sale of routes in the next few quarters will more than offset the
cash and non-cash charges taken in the second quarter 2011.
The Company's branded product revenues have been solid, showing
year over year increases of about 3.5%. Furthermore, the Company
stated that the overall integration of Snyder's-Lance is on track, with significant
progress made to date, and is expected to be completed by mid-year
2012 as previously announced. A more thorough review of
integration, including details on the conversion of Company owned
DSD routes to an independent operator model, will be provided
during the Company's next quarterly earnings call in early
August 2011. The specific date
and time for the next quarterly earnings call will be announced in
a separate press release.
Non-GAAP Financial Measures and Additional
Information
The non-GAAP financial measures presented herein and discussed
below do not comply with accounting principles generally accepted
in the United States, or GAAP,
because they are adjusted to exclude certain cash and non-cash
expenses that would otherwise be included in the most
directly comparable GAAP measure in the statement of earnings.
These non-GAAP financial measures, which are not necessarily
comparable to similarly titled captions of other companies due to
potential inconsistencies in the methods of calculation, should not
be considered an alternative to, or more meaningful than, related
measures determined in accordance with GAAP. These non-GAAP
measures supplement other metrics used by management to internally
evaluate its businesses and facilitate the comparison of operations
over time.
About Snyder's-Lance,
Inc.
Snyder's-Lance, Inc.,
headquartered in Charlotte, North
Carolina, manufactures, markets and distributes snack foods
throughout the United States and
internationally. The company's products include pretzels, sandwich
crackers, potato chips, cookies, tortilla chips, restaurant style
crackers, nuts and other snacks. Snyder's-Lance, Inc. has manufacturing
facilities in North Carolina,
Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Texas, Florida, Ohio, and Ontario,
Canada. Products are sold under brand names including
Snyder's of Hanover, Lance, Cape
Cod, Tom's, Jays, Krunchers!, Grande, Archway,
O-Ke-Doke, and Stella D'oro along with a number of private label
and third party brands. Products are distributed widely through
grocery and mass merchandisers, convenience stores, club stores,
food service outlets and other channels.
This news release contains statements which may be forward
looking within the meaning of applicable securities laws. The
statements may include projections regarding future earnings and
results which are based upon the company's current expectations and
assumptions, which are subject to a number of risks and
uncertainties. Factors that could cause actual results to differ
include: general economic conditions; increases in cost or
availability of ingredients, packaging, energy and employees; price
competition and industry consolidation; loss of major customers or
changes in product offerings with significant customers; business
disruption from merger integration and conversion of our
distribution network to independent operators, including failure to
realize anticipated synergies in a timely manner or the loss of key
personnel; failure to maintain proper and effective internal
controls; ability to execute strategic initiatives; product recalls
and concerns surrounding the quality or safety of products and
ingredients; disruptions to our supply chain or information
technology systems; changes in consumer preferences; inability to
maintain existing markets or expand to other geographic markets;
potential threats to trademarks and other proprietary intellectual
rights; food industry and regulatory factors; interest rate and
foreign exchange rate risks; and the interests of significant
stockholders may conflict with those of other stockholders, which
have been discussed in greater detail in our most recent Form 10-K
and other reports filed with the Securities and Exchange
Commission.
SOURCE Snyder's-Lance, Inc.