FOR IMMEDIATE RELEASE

Thursday, January 31, 2013

Net sales increased five percent to $326 million versus $312 million in the second quarter last year.

Net income increased 16 percent to $35,277,000 compared with $30,373,000 for the corresponding quarter a year ago. Net income per diluted share was $1.28 versus $1.11 in the year-ago quarter. Pretax income included approximately $0.3 million (one cent per share after taxes) from a Continued Dumping and Subsidy Offset Act (CDSOA) distribution, while the year ago second quarter results included a pretax CDSOA distribution of approximately $2.7 million (six cents per share after taxes).

Specialty Foods sales increased two percent in the quarter to a record $272.6 million, reflecting higher sales to both retail and foodservice channels. Overall volumes were approximately level with that of a year ago, with retail volumes affected by lower garlic bread shipments. Retail sales growth resulted from higher pricing, the success of recently introduced products and a lower level of trade and consumer promotions. Foodservice sales improved primarily due to higher volume. Segment operating income totaled $50.4 million, up 13 percent from last year’s level, primarily reflecting higher pricing and modestly reduced raw-material costs. The estimated favorable impact from raw-material costs was less than one percent of segment net sales.

Glassware and Candles sales increased 17 percent to $53.5 million, reflecting expanded sales of seasonal products. Benefiting from higher sales and production volumes, segment operating income improved to $5.6 million compared with $1.6 million in the prior year second quarter.

Corporate expenses in the current year’s quarter increased approximately $0.7 million, primarily due to higher costs associated with previously idled held-for-sale real estate.

The company’s balance sheet remained strong with no debt at December 31, 2012 as well as over $92 million in cash and equivalents.

In addition to the December 2012 payment of a special dividend of $5.00 per share, the quarterly cash dividend was increased by six percent to $.38 per share.

the potential for loss of larger programs or key customer relationships;

the effect of consolidation of customers within key market channels;

the success and cost of new product development efforts;

the lack of market acceptance of new products;

the reaction of customers or consumers to the effect of price increases we may implement;

changes in demand for our products, which may result from loss of brand reputation or customer goodwill;

the possible occurrence of product recalls or other defective or mislabeled product costs;

price and product competition;

fluctuations in the cost and availability of raw materials;

adverse changes in energy costs and other factors that may affect costs of producing, distributing or transporting our products;

maintenance of competitive position with respect to other manufacturers, including global sources of production;

dependence on key personnel;

stability of labor relations;

dependence on contract copackers and limited or exclusive sources for certain goods;

changes in estimates in critical accounting judgments;

the outcome of any litigation or arbitration; and

risks related to other factors described under “Risk Factors” in other reports and statements filed by us with the Securities and Exchange Commission, including without limitation our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q (available at www.sec.gov).

Net sales

Cost of sales

Gross margin

Selling, general & administrative expenses

Operating income

Interest income and other – net

Income before income taxes

Taxes based on income

Net income

Net income per common share:(a)

Net income – basic

Net income – diluted

Cash dividends per common share

Weighted average common shares outstanding:

Basic

Diluted

NET SALES

Specialty Foods

Glassware and Candles

OPERATING INCOME

Specialty Foods

Glassware and Candles

Corporate expenses

ASSETS

Current assets:

Cash and equivalents

Receivables – net of allowance for doubtful accounts

Total inventories

Deferred income taxes and other current assets

Total current assets

Net property, plant and equipment

Other assets

Total assets

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

Accrued liabilities

Total current liabilities

Other noncurrent liabilities and deferred income taxes

Shareholders’ equity

Total liabilities and shareholders’ equity