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8-K - FORM 8-K - LANCASTER COLONY CORP | c23609e8vk.htm |
Exhibit 99.1
Lancaster
Colony Corporation
37 West Broad Street
Columbus, Ohio 43215
614/224-7141
37 West Broad Street
Columbus, Ohio 43215
614/224-7141
FOR IMMEDIATE RELEASE
|
SYMBOL: LANC | |
Thursday, October 27, 2011
|
TRADED: Nasdaq |
LANCASTER COLONY REPORTS FIRST QUARTER FISCAL 2012 RESULTS
COLUMBUS, Ohio, Oct. 27 Lancaster Colony Corporation (Nasdaq: LANC) today reported results
for the first quarter fiscal 2012 ended September 30, 2011:
| Net sales reached $275 million, up four percent from first quarter sales of $265 million last year. |
| Specialty Foods net sales of $236.9 million were up over seven percent above the year-ago level, reflecting an increase in both retail and foodservice sales. |
| Glassware and Candles sales declined 16 percent from the year-ago quarter to $37.6 million, reflecting lower unit volume. |
| Net income of $21,258,000, or $.78 per diluted share, decreased from the prior-years $22,767,000, or $.81 per diluted share. Following the recent trend, first quarter results were affected by higher material costs not fully offset by generally higher pricing. |
| Cash dividends were continued at the higher rate set in November 2010. The companys debt-free balance sheet showed $128.3 million in cash and equivalents at September 30, 2011. |
Chairman and CEO John B. Gerlach, Jr. said, Despite increased first quarter consolidated
sales driven by our Specialty Foods segment, operating income was again challenged by substantially
higher material costs.
Specialty Foods sales benefitted from higher pricing and volume improvements in both
foodservice and branded retail lines, notably in frozen breads. Recent product introductions also
contributed to increased retail sales, which improved by approximately four percent. Operating
income of $35.2 million declined seven percent. The segments 14.9 percent operating margin
reflected higher ingredient and packaging costs, which impacted margins by approximately seven
percent of segment net sales. Mitigating this impact was higher pricing amounting to approximately
five percent of net sales.
First quarter candle sales declined due to exiting several lower-margin programs, including
some seasonal candle sales. Segment operating income declined by approximately $0.3 million.
Higher pricing and a better sales mix helped offset the impact of the sales decline and higher wax
costs, which impacted gross margin by approximately $1 million.
Mr. Gerlach said, Although economic challenges facing consumers add to the level of
uncertainty, we anticipate second quarter top-line trends similar to that of the first quarter,
including solid growth in our Specialty Foods segment. Sales of candles will again reflect lower
sales volumes, including the loss of certain lower-margin seasonal volumes. We anticipate that
operating income
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PAGE 2 / LANCASTER COLONY REPORTS FIRST QUARTER FISCAL 2012 RESULTS
will be impacted by the effects of these lower candle volumes as well as higher material costs
still not being fully offset by pricing actions and other initiatives. Provided current market
conditions persist, we expect to see less impact from higher input costs during the second half of
the fiscal year. Regardless, we remain well-positioned to support future growth given the ongoing
strength of our market positions and balance sheet.
Conference Call on the Web
The companys first quarter conference call is scheduled for this morning, October 27, at
10:00 a.m. ET. You may access the call through a live webcast by using the link provided on the
companys Internet home page at www.lancastercolony.com. Replays of the webcast will be made
available on the company website.
About the Company
Lancaster Colony Corporation is a diversified manufacturer and marketer of consumer products
focusing primarily on specialty foods for the retail and foodservice markets.
Forward-Looking Statements
We desire to take advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 (the PSLRA). This news release contains various forward-looking
statements within the meaning of the PSLRA and other applicable securities laws. Such statements
can be identified by the use of the forward-looking words anticipate, estimate, project,
believe, intend, plan, expect, hope or similar words. These statements discuss future
expectations; contain projections regarding future developments, operations or financial
conditions; or state other forward-looking information. Such statements are based upon assumptions
and assessments made by us in light of our experience and perception of historical trends, current
conditions, expected future developments; and other factors we believe to be appropriate. These
forward-looking statements involve various important risks, uncertainties and other factors that
could cause our actual results to differ materially from those expressed in the forward-looking
statements. Actual results may differ as a result of factors over which we have no, or limited,
control. Management believes these forward-looking statements to be reasonable; however, you should
not place undue reliance on such statements that are based on current expectations. For example,
fluctuations in material and freight costs, over which we have limited control, may significantly
influence our financial results. Forward-looking statements speak only as of the date they are
made, and we undertake no obligation to update such forward-looking statements, except as required
by law. More detailed statements regarding significant events that could affect our financial
results are included in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed
with the Securities and Exchange Commission and are available on our website at
www.lancastercolony.com.
# # # #
FOR FURTHER INFORMATION:
|
John B. Gerlach, Jr., Chairman and CEO, or John L. Boylan, Vice President, Treasurer and CFO Lancaster Colony Corporation Phone: 614/224-7141 or Investor Relations Consultants, Inc. Phone: 727/781-5577 or E-mail: lanc@mindspring.com |
MORE. . .
PAGE 3 / LANCASTER COLONY REPORTS FIRST QUARTER FISCAL 2012 RESULTS
LANCASTER COLONY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands except per-share amounts)
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands except per-share amounts)
Three Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Net sales |
$ | 274,516 | $ | 265,051 | ||||
Cost of sales |
219,086 | 206,980 | ||||||
Gross margin |
55,430 | 58,071 | ||||||
Selling, general & administrative expenses |
22,918 | 23,245 | ||||||
Operating income |
32,512 | 34,826 | ||||||
Interest income and other net |
(4 | ) | 16 | |||||
Income before income taxes |
32,508 | 34,842 | ||||||
Taxes based on income |
11,250 | 12,075 | ||||||
Net income |
$ | 21,258 | $ | 22,767 | ||||
Net income per common share:(a) |
||||||||
Net income basic and diluted |
$ | .78 | $ | .81 | ||||
Cash dividends per common share |
$ | .33 | $ | .30 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
27,290 | 28,014 | ||||||
Diluted |
27,314 | 28,037 |
(a) | Based on the weighted average number of shares outstanding during each period. |
MORE...
PAGE 4 / LANCASTER COLONY REPORTS FIRST QUARTER FISCAL 2012 RESULTS
LANCASTER COLONY CORPORATION
BUSINESS SEGMENT INFORMATION (Unaudited)
(In thousands)
BUSINESS SEGMENT INFORMATION (Unaudited)
(In thousands)
Three Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
NET SALES |
||||||||
Specialty Foods |
$ | 236,947 | $ | 220,512 | ||||
Glassware and Candles |
37,569 | 44,539 | ||||||
$ | 274,516 | $ | 265,051 | |||||
OPERATING INCOME (LOSS) |
||||||||
Specialty Foods |
$ | 35,199 | $ | 37,973 | ||||
Glassware and Candles |
(337 | ) | 2 | |||||
Corporate expenses |
(2,350 | ) | (3,149 | ) | ||||
$ | 32,512 | $ | 34,826 | |||||
LANCASTER COLONY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
September 30, | June 30, | |||||||
2011 | 2011 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and equivalents |
$ | 128,264 | $ | 132,266 | ||||
Receivables net of allowance for doubtful accounts |
85,118 | 63,762 | ||||||
Total inventories |
110,248 | 111,885 | ||||||
Deferred income taxes and other current assets |
19,995 | 25,283 | ||||||
Total current assets |
343,625 | 333,196 | ||||||
Net property, plant and equipment |
187,000 | 185,282 | ||||||
Other assets |
103,308 | 103,611 | ||||||
Total assets |
$ | 633,933 | $ | 622,089 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 45,151 | $ | 42,570 | ||||
Accrued liabilities |
35,562 | 33,586 | ||||||
Total current liabilities |
80,713 | 76,156 | ||||||
Other noncurrent liabilities and deferred income taxes |
30,714 | 28,394 | ||||||
Shareholders equity |
522,506 | 517,539 | ||||||
Total liabilities and shareholders equity |
$ | 633,933 | $ | 622,089 | ||||
# # # #