Attached files
| file | filename |
|---|---|
| 8-K - 8-K - LANCASTER COLONY CORP | d341026d8k.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | SYMBOL: LANC | |
| Thursday, April 26, 2012 | TRADED: Nasdaq |
LANCASTER COLONY REPORTS THIRD QUARTER SALES AND EARNINGS
COLUMBUS, Ohio, Apr. 26 — Lancaster Colony Corporation (Nasdaq: LANC) today reported results for the company’s third fiscal quarter ended March 31, 2012. Highlights of the quarter:
| • | Net sales increased seven percent to $271 million versus $253 million in the third quarter last year, reflecting strong sales growth in the Specialty Foods segment. |
| • | Net income totaled $18,222,000 compared with $19,441,000 for the corresponding quarter a year ago, primarily reflecting higher costs experienced within the Specialty Foods segment. Third quarter net income per diluted share totaled $.67 compared to $.71 a year ago. |
| • | Specialty Foods sales increased nine percent to a third quarter record of $237 million on higher volume and pricing. Both retail and foodservice sales volumes improved, with this year’s earlier Easter helping retail sales. Pricing contributed approximately half the quarter’s increase in sales. The segment’s operating income totaled $29.6 million compared to $31.7 million in the third quarter last year. Increased material, freight and marketing costs were only partially offset by improved pricing. |
| • | Glassware and Candles sales declined four percent to $34 million on lower candle volume. However, the segment’s operating income increased to $1.0 million from $0.7 million in the third quarter last year. Modest pricing improvement and a better sales mix helped offset lower sales. |
| • | The company’s balance sheet remained strong with no debt outstanding at March 31, 2012, and $168 million in cash and equivalents. |
| • | The quarterly cash dividend was continued at the higher level of $.36 per share set last quarter. |
For the nine months ended March 31, 2012, net sales were $857 million compared to $834 million a year ago. Net income was $69,853,000, or $2.56 per diluted share. Net income for the nine months last year totaled $77,071,000, or $2.77 per diluted share. Current year-to-date net income included pretax income of $2.7 million (six cents per share after taxes) from a second-quarter distribution received under the Continued Dumping and Subsidy Offset Act (CDSOA). In the prior year, net income included a pretax CDSOA distribution of $1.0 million (two cents per share after taxes).
John B. Gerlach, Jr., chairman and CEO, said, “We were pleased with the improvement in Specialty Foods sales, given the widely reported challenges faced by consumers. Our quarterly results were affected by the timing of certain marketing expenditures, as well as higher material and freight costs.”
MORE. . .
PAGE 2 / LANCASTER COLONY REPORTS THIRD QUARTER SALES AND EARNINGS
Looking ahead, Mr. Gerlach added, “We anticipate that retail food sales during our fiscal fourth quarter will be affected by the earlier Easter timing and continued economic pressures on consumers. Our Specialty Foods segment should benefit from ongoing success with recent retail product introductions, somewhat higher average pricing, lower marketing costs and less unfavorable commodity cost comparisons. In a seasonally slower fourth quarter, our Glassware and Candles segment will likely experience a continuation of third quarter trends. We believe that throughout fiscal 2012 we have maintained a solid base upon which to build further growth in fiscal 2013.”
Conference Call on the Web
The company’s third quarter conference call is scheduled for this morning, April 26, at 10:00 a.m. ET. You may access the call through a live webcast by using the link provided on the company’s 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 THIRD QUARTER SALES AND EARNINGS
LANCASTER COLONY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands except per-share amounts)
| Three Months Ended March 31, |
Nine Months Ended March 31, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net sales |
$ | 271,098 | $ | 252,623 | $ | 857,400 | $ | 833,912 | ||||||||
| Cost of sales |
217,296 | 200,089 | 678,309 | 645,063 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross margin |
53,802 | 52,534 | 179,091 | 188,849 | ||||||||||||
| Selling, general & administrative expenses |
25,848 | 23,060 | 74,915 | 72,441 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
27,954 | 29,474 | 104,176 | 116,408 | ||||||||||||
| Interest income and other – net |
39 | 54 | 2,774 | 1,110 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
27,993 | 29,528 | 106,950 | 117,518 | ||||||||||||
| Taxes based on income |
9,771 | 10,087 | 37,097 | 40,447 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 18,222 | $ | 19,441 | $ | 69,853 | $ | 77,071 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income per common share:(a) |
||||||||||||||||
| Net income – basic and diluted |
$ | .67 | $ | .71 | $ | 2.56 | $ | 2.77 | ||||||||
| Cash dividends per common share |
$ | .36 | $ | .33 | $ | 1.05 | $ | .96 | ||||||||
| Weighted average common shares outstanding: |
||||||||||||||||
| Basic |
27,216 | 27,494 | 27,237 | 27,755 | ||||||||||||
| Diluted |
27,251 | 27,520 | 27,268 | 27,781 | ||||||||||||
| (a) | Based on the weighted average number of shares outstanding during each period. |
MORE…
PAGE 4 / LANCASTER COLONY REPORTS THIRD QUARTER SALES AND EARNINGS
LANCASTER COLONY CORPORATION
BUSINESS SEGMENT INFORMATION (Unaudited)
(In thousands)
| Three Months Ended March 31, |
Nine Months Ended March 31, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| NET SALES |
||||||||||||||||
| Specialty Foods |
$ | 237,432 | $ | 217,436 | $ | 740,604 | $ | 692,539 | ||||||||
| Glassware and Candles |
33,666 | 35,187 | 116,796 | 141,373 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 271,098 | $ | 252,623 | $ | 857,400 | $ | 833,912 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING INCOME |
||||||||||||||||
| Specialty Foods |
$ | 29,561 | $ | 31,664 | $ | 109,510 | $ | 121,025 | ||||||||
| Glassware and Candles |
973 | 676 | 2,272 | 5,044 | ||||||||||||
| Corporate expenses |
(2,580 | ) | (2,866 | ) | (7,606 | ) | (9,661 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 27,954 | $ | 29,474 | $ | 104,176 | $ | 116,408 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
LANCASTER COLONY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
| March 31, 2012 |
June 30, 2011 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and equivalents |
$ | 167,960 | $ | 132,266 | ||||
| Receivables – net of allowance for doubtful accounts |
86,495 | 63,762 | ||||||
| Total inventories |
100,284 | 111,885 | ||||||
| Deferred income taxes and other current assets |
24,021 | 25,283 | ||||||
|
|
|
|
|
|||||
| Total current assets |
378,760 | 333,196 | ||||||
| Net property, plant and equipment |
184,017 | 185,282 | ||||||
| Other assets |
103,297 | 103,611 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 666,074 | $ | 622,089 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 43,489 | $ | 42,570 | ||||
| Accrued liabilities |
37,360 | 33,586 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
80,849 | 76,156 | ||||||
| Other noncurrent liabilities and deferred income taxes |
32,695 | 28,394 | ||||||
| Shareholders’ equity |
552,530 | 517,539 | ||||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
$ | 666,074 | $ | 622,089 | ||||
|
|
|
|
|
|||||
# # # #