Attached files
| file | filename |
|---|---|
| EX-99.1 - SNYDER'S-LANCE, INC. | c84132_ex99-1.htm |
| 8-K - SNYDER'S-LANCE, INC. | c84132_8k.htm |
Exhibit 99.2
IMMEDIATE RELEASE
February 29, 2016
Snyder’s-Lance Announces Full Year 2015 Results
Charlotte, NC, - February 29, 2016 – Snyder’s-Lance, Inc. (NASDAQ: LNCE) today announced Full Year, 2015 results. Preliminary unaudited results were previously announced in a press release and conference call on January 27, 2016. Given that the final results did not vary from this preliminary release, management will not hold a call to discuss results for full year 2015.
Full Year Financial Summary
| · | Net revenue for the full year 2015 was $1.66 billion, an increase of 2.2% compared to full year 2014 net revenue of $1.62 billion and an increase of 4.1% excluding the impact of the additional 53rd week in 2014. The additional week in 2014 was $30.4 million in net revenue. |
| · | Net income excluding special items for the full year 2015 was $71.9 million, or $1.01 per diluted share, as compared to net income excluding special items of $65.2 million for the full year 2014, or $0.92 per diluted share. |
| · | GAAP net income, which includes special items, for the full year 2015, was $50.7 million, or $0.71 per diluted share, as compared to GAAP net income of $59.3 million for the full year 2014, or $0.84 per diluted share. |
| · | Special items for the full year 2015 included after-tax expenses of $21.3 million primarily associated with legal fees and accruals for expected settlements of certain litigation, impairment charges and transaction-related expenses associated with the Diamond Foods acquisition. Special items for the full year 2014 included an after-tax gain on the revaluation of our prior equity investment in Late July of $9.8 million which was more than offset by after-tax expenses of $15.7 million primarily associated with impairment charges, restructuring charges and professional fees. |
Diamond Foods Acquisition and Estimates for 2016
Earlier today, Snyder’s-Lance also announced the completion of the acquisition of Diamond Foods, Inc., an industry leading snack foods company. Given that the transaction closed today, Snyder’s-Lance cannot provide consolidated estimates for 2016 at this time. Snyder’s-Lance expects to provide full year 2016 estimates of net revenue, EPS and capital spending for the combined company during its first quarter 2016 earnings call, anticipated to be held in early May.
About Snyder’s-Lance, Inc.
Snyder’s-Lance, Inc., headquartered in Charlotte, NC, manufactures and markets snack foods throughout the United States and internationally. Snyder’s-Lance’s products include pretzels, sandwich crackers, pretzel crackers, potato chips, popcorn, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. Snyder’s-Lance has manufacturing facilities in North Carolina, Pennsylvania, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio, California, Oregon, Wisconsin and the United Kingdom. Products are sold under the Snyder’s of Hanover®, Lance®, Cape Cod®, Snack Factory® Pretzel Crisps®, Late July®, Kettle Brand®, KETTLE®, Pop Secret®, Emerald®, Diamond of California®, and other brand names along with a number of third party brands. Products are distributed internationally through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels. LNCE-E
Cautionary Information about Forward Looking Statements
This press release contains statements which may be forward looking within the meaning of applicable securities laws. The statements include projections regarding future revenues, earnings and other 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 or an economic turndown; volatility in the price or availability of inputs, including raw materials, packaging, energy and labor; price competition and industry consolidation; changes in our top retail customer relationships; inability to maintain profitability in the face of a consolidating retail environment; failure to successfully integrate acquisitions or execute divestitures; loss of key personnel; failure to execute and accomplish our strategy; concerns with the safety and quality of certain food products or ingredients; adulterated, misbranded or mislabeled products or product recalls; disruption of our supply chain; inadequacies in, or security breaches of, our information technology systems; improper use of social media; changes in consumer preferences and tastes or inability to innovate or market our products effectively; reliance on distribution through a significant number of independent business owners; protection of our trademarks and other intellectual property rights; impairment in the carrying value of goodwill or other intangible assets; new regulations or legislation; interest rate volatility, and the interests of a few individuals who control a significant portion of our outstanding shares of common stock 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.
SNYDER’S-LANCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
For the Quarters and Years Ended January 2, 2016 and January 3, 2015
| Quarter Ended | Year Ended | |||||||||||||||
| (in thousands, except per share data) | January 2, 2016 | January 3, 2015 | January 2, 2016 | January 3, 2015 | ||||||||||||
| Net revenue | $ | 405,857 | $ | 439,000 | $ | 1,656,399 | $ | 1,620,920 | ||||||||
| Cost of sales | 259,899 | 281,833 | 1,077,110 | 1,042,458 | ||||||||||||
| Gross margin | 145,958 | 157,167 | 579,289 | 578,462 | ||||||||||||
| Selling, general and administrative | 116,408 | 124,497 | 472,236 | 478,532 | ||||||||||||
| Settlements of certain litigation | — | — | 5,675 | — | ||||||||||||
| Impairment charges | 11,997 | 5,544 | 11,997 | 13,047 | ||||||||||||
| (Gain)/loss on sale of route businesses, net | (545 | ) | 329 | (1,913 | ) | (1,109 | ) | |||||||||
| Gain on the revaluation of prior equity investment | — | (16,608 | ) | — | (16,608 | ) | ||||||||||
| Other expense/(income), net | 1,569 | (892 | ) | 838 | (250 | ) | ||||||||||
| Income before interest and income taxes | 16,529 | 44,297 | 90,456 | 104,850 | ||||||||||||
| Interest expense, net | 2,864 | 2,857 | 10,853 | 13,342 | ||||||||||||
| Income before income taxes | 13,665 | 41,440 | 79,603 | 91,508 | ||||||||||||
| Income tax expense | 6,652 | 14,572 | 28,885 | 32,291 | ||||||||||||
| Income from continuing operations | 7,013 | 26,868 | 50,718 | 59,217 | ||||||||||||
| (Loss)/income from discontinued operations, net of income tax | — | (626 | ) | — | 133,316 | |||||||||||
| Net income | 7,013 | 26,242 | 50,718 | 192,533 | ||||||||||||
| Net (loss)/income attributable to noncontrolling interests | (30 | ) | (90 | ) | 33 | (58 | ) | |||||||||
| Net income attributable to Snyder’s-Lance, Inc. | $ | 7,043 | $ | 26,332 | $ | 50,685 | $ | 192,591 | ||||||||
| Amounts attributable to Snyder’s-Lance, Inc.: | ||||||||||||||||
| Continuing operations | $ | 7,043 | $ | 26,958 | $ | 50,685 | $ | 59,275 | ||||||||
| Discontinued operations | — | (626 | ) | — | 133,316 | |||||||||||
| Net income attributable to Snyder’s-Lance, Inc. | $ | 7,043 | $ | 26,332 | $ | 50,685 | $ | 192,591 | ||||||||
| Basic earnings per share: | ||||||||||||||||
| Continuing operations | $ | 0.10 | $ | 0.38 | $ | 0.72 | $ | 0.84 | ||||||||
| Discontinued operations | — | (0.01 | ) | — | 1.90 | |||||||||||
| Total basic earnings per share | $ | 0.10 | $ | 0.37 | $ | 0.72 | $ | 2.74 | ||||||||
| Diluted earnings per share: | ||||||||||||||||
| Continuing operations | $ | 0.10 | $ | 0.38 | $ | 0.71 | $ | 0.84 | ||||||||
| Discontinued operations | — | (0.01 | ) | — | 1.88 | |||||||||||
| Total diluted earnings per share | $ | 0.10 | $ | 0.37 | $ | 0.71 | $ | 2.72 | ||||||||
| Cash dividends declared per share | $ | 0.16 | $ | 0.16 | $ | 0.64 | $ | 0.64 | ||||||||
SNYDER’S-LANCE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
As of January 2, 2016 and January 3, 2015
| (in thousands, except share data) | 2015 | 2014 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 39,105 | $ | 35,373 | ||||
| Restricted cash | 966 | 966 | ||||||
| Accounts receivable, net of allowances of $917 and $1,778, respectively | 131,339 | 126,093 | ||||||
| Inventories | 110,994 | 116,236 | ||||||
| Prepaid income taxes and income taxes receivable | 2,321 | 4,175 | ||||||
| Assets held for sale | 15,678 | 11,007 | ||||||
| Prepaid expenses and other current assets | 21,210 | 22,112 | ||||||
| Total current assets | 321,613 | 315,962 | ||||||
| Noncurrent assets: | ||||||||
| Fixed assets, net | 401,465 | 423,612 | ||||||
| Goodwill | 539,119 | 541,539 | ||||||
| Other intangible assets, net | 528,658 | 545,212 | ||||||
| Other noncurrent assets | 27,403 | 23,874 | ||||||
| Total assets | $ | 1,818,258 | $ | 1,850,199 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 8,541 | $ | 8,561 | ||||
| Accounts payable | 54,207 | 57,407 | ||||||
| Accrued compensation | 26,196 | 33,154 | ||||||
| Accrued casualty insurance claims | 4,262 | 4,320 | ||||||
| Accrued marketing, selling and promotional costs | 18,806 | 15,889 | ||||||
| Other payables and accrued liabilities | 32,248 | 21,595 | ||||||
| Total current liabilities | 144,260 | 140,926 | ||||||
| Noncurrent liabilities: | ||||||||
| Long-term debt | 379,855 | 438,376 | ||||||
| Deferred income taxes, net | 157,591 | 155,404 | ||||||
| Accrued casualty insurance claims | 11,931 | 13,755 | ||||||
| Other noncurrent liabilities | 17,034 | 15,030 | ||||||
| Total liabilities | 710,671 | 763,491 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.83 1/3 par value. 110,000,000 shares authorized; 70,968,054 and 70,406,086 shares outstanding, respectively | 59,138 | 58,669 | ||||||
| Preferred stock, $1.00 par value. Authorized 5,000,000 shares; no shares outstanding | — | — | ||||||
| Additional paid-in capital | 791,428 | 776,930 | ||||||
| Retained earnings | 238,314 | 232,812 | ||||||
| Accumulated other comprehensive loss | (630 | ) | (1,007 | ) | ||||
| Total Snyder’s-Lance, Inc. stockholders’ equity | 1,088,250 | 1,067,404 | ||||||
| Noncontrolling interests | 19,337 | 19,304 | ||||||
| Total stockholders’ equity | 1,107,587 | 1,086,708 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,818,258 | $ | 1,850,199 | ||||
SNYDER’S-LANCE, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
For the Fiscal Years Ended January 2, 2016, January 3, 2015 and December 28, 2013
| (in thousands) | 2015 | 2014 | 2013 | |||||||||
| Operating activities: | ||||||||||||
| Net income | $ | 50,718 | $ | 192,533 | $ | 79,084 | ||||||
| Adjustments to reconcile net income to cash from operating activities: | ||||||||||||
| Depreciation and amortization | 70,379 | 65,164 | 59,631 | |||||||||
| Stock-based compensation expense | 5,616 | 6,529 | 5,944 | |||||||||
| Loss/(gain) on sale of fixed assets, net | 420 | 1,304 | (2,640 | ) | ||||||||
| Gain on sale of Private Brands, excluding transaction costs | — | (229,322 | ) | — | ||||||||
| Gain on the purchase of additional interest in Late July | — | (16,608 | ) | — | ||||||||
| Gain on sale of route businesses, net | (1,913 | ) | (1,109 | ) | (2,590 | ) | ||||||
| Impairment charges | 11,997 | 13,047 | 1,900 | |||||||||
| Derecognition of cumulative translation adjustment | 737 | — | — | |||||||||
| Deferred income taxes | 2,433 | (19,499 | ) | 10,360 | ||||||||
| Provision for doubtful accounts | 1,104 | 1,600 | 1,828 | |||||||||
| Changes in operating assets and liabilities, excluding business acquisitions and disposals: | ||||||||||||
| Accounts receivable | (6,349 | ) | 1,368 | (5,266 | ) | |||||||
| Inventory | 5,242 | (7,131 | ) | 4,461 | ||||||||
| Other current assets | 2,463 | 5,972 | (3,083 | ) | ||||||||
| Accounts payable | (2,468 | ) | 3,135 | 1,893 | ||||||||
| Other accrued liabilities | 6,970 | (149 | ) | (6,960 | ) | |||||||
| Other noncurrent assets | 709 | 3,741 | 1,830 | |||||||||
| Other noncurrent liabilities | (1,904 | ) | (7,550 | ) | (5,656 | ) | ||||||
| Net cash provided by operating activities | 146,154 | 13,025 | 140,736 | |||||||||
| Investing activities: | ||||||||||||
| Purchases of fixed assets | (51,468 | ) | (72,056 | ) | (74,579 | ) | ||||||
| Purchases of route businesses | (22,568 | ) | (21,359 | ) | (29,692 | ) | ||||||
| Proceeds from sale of fixed assets | 1,776 | 2,122 | 9,448 | |||||||||
| Proceeds from sale of route businesses | 27,408 | 22,400 | 30,745 | |||||||||
| Proceeds from sale of investments | 826 | — | 2,298 | |||||||||
| Proceeds from sale of Private Brands | — | 430,017 | — | |||||||||
| Business acquisitions, net of cash acquired | — | (262,323 | ) | (3,131 | ) | |||||||
| Changes in restricted cash | — | 234 | — | |||||||||
| Net cash (used in)/provided by investing activities | (44,026 | ) | 99,035 | (64,911 | ) | |||||||
| Financing activities: | ||||||||||||
| Dividends paid to stockholders | (45,183 | ) | (44,925 | ) | (44,892 | ) | ||||||
| Acquisition of remaining interest in Patriot Snacks Real Estate, LLC | — | (150 | ) | — | ||||||||
| Debt issuance costs | (5,065 | ) | (1,854 | ) | — | |||||||
| Issuances of common stock | 7,862 | 6,816 | 9,776 | |||||||||
| Excess tax benefits from stock-based compensation | 2,326 | 1,051 | 1,500 | |||||||||
| Repurchases of common stock | (836 | ) | (1,331 | ) | (770 | ) | ||||||
| Repayments of long-term debt | (7,500 | ) | (15,374 | ) | (20,508 | ) | ||||||
| Net repayments of existing credit facilities | (50,000 | ) | (35,000 | ) | (16,127 | ) | ||||||
| Net cash used in financing activities | (98,396 | ) | (90,767 | ) | (71,021 | ) | ||||||
| Increase in cash and cash equivalents | 3,732 | 21,293 | 4,804 | |||||||||
| Cash and cash equivalents at beginning of fiscal year | 35,373 | 14,080 | 9,276 | |||||||||
| Cash and cash equivalents at end of fiscal year | $ | 39,105 | $ | 35,373 | $ | 14,080 | ||||||
| Non-cash financing activities: | ||||||||||||
| Acquisition of remaining interest in Michaud Distributors | $ | — | $ | — | $ | 10,150 | ||||||
| Supplemental information: | ||||||||||||
| Cash paid for income taxes, net of refunds of $2,608, $381, and $151, respectively | $ | 23,068 | $ | 160,906 | $ | 39,313 | ||||||
| Cash paid for interest | $ | 11,523 | $ | 13,798 | $ | 15,131 | ||||||
SNYDER’S-LANCE, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures (Unaudited)
For the Years Ended January 2, 2016 and January 3, 2015
| (in thousands, except per share data) | Net of Tax | Per Diluted Share | ||||||
| Year Ended January 2, 2016 | ||||||||
| Net income attributable to Snyder’s-Lance, Inc. | $ | 50,685 | $ | 0.710 | ||||
| Impairment charges | 7,840 | 0.110 | ||||||
| Severance and relocation charges | 1,011 | 0.014 | ||||||
| Settlements and legal fees associated with certain litigation | 4,784 | 0.067 | ||||||
| Professional fees | 305 | 0.004 | ||||||
| Transaction-related expenses | 6,442 | 0.090 | ||||||
| Self-funded medical insurance claim | 546 | 0.008 | ||||||
| Recovery expenses for power outage and flood | 328 | 0.005 | ||||||
| Net income attributable to Snyder’s-Lance, Inc., excluding special items | $ | 71,941 | $ | 1.008 | ||||
| Year Ended January 3, 2015 | ||||||||
| Income from continuing operations | $ | 59,275 | $ | 0.836 | ||||
| Gain on the revaluation of prior equity investment | (9,799 | ) | (0.138 | ) | ||||
| Impairment charges | 8,555 | 0.121 | ||||||
| Restructuring charges | 2,297 | 0.032 | ||||||
| Professional fees | 2,211 | 0.031 | ||||||
| Self-funded medical insurance claim | 564 | 0.008 | ||||||
| Deferred tax revaluation | 2,062 | 0.029 | ||||||
| Income from continuing operations, excluding special items | $ | 65,165 | $ | 0.919 | ||||
SNYDER’S-LANCE, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Net Revenue (Unaudited)
For the Year Ended January 3, 2015
| (in thousands, except per share data) | Net Revenue | |||
| Year Ended January 3, 2015 | ||||
| Net revenue | $ | 1,620,920 | ||
| Estimated 53rd week | (30,400 | ) | ||
| Total net revenue excluding estimated 53rd week | $ | 1,590,520 | ||