Attached files
| file | filename |
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| 8-K - FORM 8-K - LANCASTER COLONY CORP | c21601e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
|
SYMBOL: LANC | |
Thursday, August 18, 2011
|
TRADED: Nasdaq |
LANCASTER COLONY REPORTS FISCAL YEAR AND FOURTH QUARTER RESULTS
COLUMBUS, Ohio, Aug. 18 —Lancaster Colony Corporation (Nasdaq: LANC) today reported results
for the company’s fiscal year ended June 30, 2011, including these highlights:
| • | Net sales increased three percent to $1,090 million versus $1,057 million last year. |
| • | Net income totaled $106.4 million or $3.84 per diluted share, compared to the prior year’s record net income of $115.0 million, or $4.07 per diluted share. Fiscal 2011 results included pretax income of $14.4 million (approximately 34 cents per share after taxes) associated with second and fourth quarter distributions under the Continued Dumping and Subsidy Offset Act (CDSOA). In fiscal 2010, a second quarter pretax CDSOA distribution totaled $0.9 million (approximately two cents per share after taxes). |
| • | The cash dividend was increased for the 48th consecutive year, and shares were repurchased at a cost of approximately $43.1 million. |
| • | The balance sheet remained strong with no debt outstanding and over $132 million in cash and equivalents. |
Fourth Quarter Results
Highlights of the fourth quarter ended June 30, 2011 included the following:
| • | Net sales increased three percent to $256 million versus $248 million in the year ago quarter. |
| • | Specialty Foods net sales totaled a fourth quarter record of $230 million, an increase of six percent above the prior year’s fourth quarter total. Contributing to this improvement were greater foodservice volumes, this year’s later Easter, the success of recently introduced retail products and both retail and foodservice pricing increases. Retail sales were constrained by factors such as challenging economic conditions faced by consumers and higher levels of trade promotions. Higher material and freight costs, along with a less favorable sales mix, contributed to segment operating income declining by 10 percent to $34.2 million from $38.2 million a year ago. |
| • | Glassware and Candles sales of $25.7 million declined due to lower candle sales. The segment’s quarterly operating loss of $1.3 million compared to a loss of less than $0.1 million a year ago. Higher paraffin wax costs and lower sales and production volumes primarily accounted for the decline. |
| • | Fourth quarter net income totaled $29.3 million, or $1.07 per diluted share, versus the year ago net income of $22.8 million, or $.81 per diluted share. The quarter’s results included a pretax CDSOA distribution of $13.4 million (approximately 33 cents per share after taxes). |
MORE. . .
PAGE 2 / LANCASTER COLONY REPORTS FISCAL YEAR AND 4TH QUARTER RESULTS
Fiscal 2011 Commentary
Chairman and CEO John B. Gerlach, Jr. said, “Fiscal 2011 earnings per share were the second
highest in company history, following our record high fiscal 2010. Significantly higher material
costs and continuing economic weakness challenged our comparative results for both the full year
and fourth quarter. Helping support our top-line growth this past year was the introduction of
several new retail non-frozen food products, including our Marzetti® Simply Dressed™ line of
refrigerated salad dressings and Marzetti® Otria™ Greek yogurt-based vegetable dips. Candle sales
benefitted from additional product placement. We were able to implement higher pricing to mitigate,
although not fully offset, materials cost inflation encountered by both operating segments.”
Fiscal 2012 Commentary
Mr. Gerlach added, “Fiscal 2012 sales should continue to benefit from the rollout of new
retail food products and generally higher pricing. New food product emphasis this year is focused
on frozen items. Among products expected to add sales in the first half of fiscal 2012 are New York
Brand® Garlic Knots and Sister Schubert’s® soft pretzel rolls and
mini-baguettes. Many material costs will likely remain markedly above year-ago levels for at least
the first half of fiscal 2012. We also elected not to pursue lower-margin holiday candle sales due
to the lack of acceptable returns at current input costs. Overall results will depend upon sales
volumes, material cost trends and operational improvements.”
He also said, “We remain well-positioned to support future growth given the strength of our
market positions and a solid and flexible balance sheet.”
Conference Call on the Web
The company’s fiscal year and fourth quarter conference call is scheduled for this morning,
August 18, 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.
MORE. . .
PAGE 3 / LANCASTER COLONY REPORTS FISCAL YEAR AND 4TH QUARTER RESULTS
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 lO-K and Quarterly Reports on Form 1O-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 4 / LANCASTER COLONY REPORTS FISCAL YEAR AND 4TH QUARTER 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 | Fiscal Year Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 256,034 | $ | 248,005 | $ | 1,089,946 | $ | 1,056,608 | ||||||||
Cost of sales |
202,454 | 188,080 | 847,517 | 786,276 | ||||||||||||
Gross margin |
53,580 | 59,925 | 242,429 | 270,332 | ||||||||||||
Selling, general & administrative expenses |
22,984 | 24,625 | 95,425 | 93,821 | ||||||||||||
Restructuring and impairment charges |
— | 179 | — | 2,312 | ||||||||||||
Operating income |
30,596 | 35,121 | 147,004 | 174,199 | ||||||||||||
Interest income and other — net |
13,392 | (7 | ) | 14,502 | 939 | |||||||||||
Income before income taxes |
43,988 | 35,114 | 161,506 | 175,138 | ||||||||||||
Taxes based on income |
14,695 | 12,299 | 55,142 | 60,169 | ||||||||||||
Net income |
$ | 29,293 | $ | 22,815 | $ | 106,364 | $ | 114,969 | ||||||||
Net income per common share:(a) |
||||||||||||||||
Net income — basic |
$ | 1.07 | $ | .81 | $ | 3.84 | $ | 4.08 | ||||||||
Net income — diluted |
$ | 1.07 | $ | .81 | $ | 3.84 | $ | 4.07 | ||||||||
Cash dividends per common share |
$ | .33 | $ | .30 | $ | 1.29 | $ | 1.185 | ||||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
27,391 | 28,176 | 27,664 | 28,144 | ||||||||||||
Diluted |
27,413 | 28,205 | 27,689 | 28,174 | ||||||||||||
| (a) | Based on the weighted average number of shares outstanding during each period. |
MORE...
PAGE 5 / LANCASTER COLONY REPORTS FISCAL YEAR AND 4TH QUARTER RESULTS
LANCASTER COLONY CORPORATION
BUSINESS SEGMENT INFORMATION (Unaudited)
(In thousands)
BUSINESS SEGMENT INFORMATION (Unaudited)
(In thousands)
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
NET SALES |
||||||||||||||||
Specialty Foods |
$ | 230,317 | $ | 217,345 | $ | 922,856 | $ | 893,256 | ||||||||
Glassware and Candles |
25,717 | 30,660 | 167,090 | 163,352 | ||||||||||||
| $ | 256,034 | $ | 248,005 | $ | 1,089,946 | $ | 1,056,608 | |||||||||
OPERATING INCOME (LOSS) |
||||||||||||||||
Specialty Foods |
$ | 34,193 | $ | 38,194 | $ | 155,218 | $ | 176,194 | ||||||||
Glassware and Candles |
(1,280 | ) | (40 | ) | 3,764 | 9,445 | ||||||||||
Corporate expenses |
(2,317 | ) | (3,033 | ) | (11,978 | ) | (11,440 | ) | ||||||||
| $ | 30,596 | $ | 35,121 | $ | 147,004 | $ | 174,199 | |||||||||
LANCASTER COLONY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
| June 30, | June 30, | |||||||
| 2011 | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and equivalents |
$ | 132,266 | $ | 100,890 | ||||
Receivables — net of allowance for doubtful accounts |
63,762 | 67,766 | ||||||
Total inventories |
111,885 | 121,509 | ||||||
Deferred income taxes and other current assets |
25,283 | 27,234 | ||||||
Total current assets |
333,196 | 317,399 | ||||||
Net property, plant and equipment |
185,282 | 166,097 | ||||||
Other assets |
103,611 | 102,957 | ||||||
Total assets |
$ | 622,089 | $ | 586,453 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 42,570 | $ | 41,904 | ||||
Accrued liabilities |
33,586 | 36,049 | ||||||
Total current liabilities |
76,156 | 77,953 | ||||||
Other noncurrent liabilities and deferred income taxes |
28,394 | 23,592 | ||||||
Shareholders’ equity |
517,539 | 484,908 | ||||||
Total liabilities and shareholders’ equity |
$ | 622,089 | $ | 586,453 | ||||
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