Snyder’s-Lance income up sharply in year

by Staff
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CHARLOTTE, N.C. — Income at Snyder’s-Lance, Inc. was up sharply during 2011 as the company moved away from merger costs that created the company in December 2010.

Net income at Snyder’s-Lance in the year ended Dec. 31, 2011, was $38,258,000, equal to 57c per share on the common stock, which compared with $2,512,000, or 7c per share, during fiscal 2010. Revenue for the year was $1,635,036,000, up 67% from $979,835,000 during the previous year.

“The year 2011 was transformational for Snyder's-Lance, and I’m very pleased with our progress,” said David V. Singer, chief executive officer. “Our team has done an exceptional job of executing on the complex challenges of merger integration while continuing to deliver solid top-line performance. Our branded products net sales grew by 4.7% on a proforma basis excluding the reduction in net sales that is associated with converting from company-owned to an independent operator route system.

“Our largest and most profitable brands and product lines (Snyder’s of Hanover pretzels, Lance sandwich crackers and Cape Cod kettle chips) delivered near double-digit growth in net sales in 2011, on a proforma basis. For the full year 2011, we also reduced our net debt by $20 million on solid net cash flows, and expect to see expect to see net cash flows improve in 2012 as we complete the sale of company owned routes to independent business operators in our direct-store delivery network.

“Although our margins were pressured in 2011, primarily in private brand products, I’m very proud of what has been accomplished by our associates, and look forward to completing the work of integration by mid-year 2012 and then focusing even more sharply on growing our profit margins.”

For the fourth quarter ended Dec. 31, the company had income of $22,427,000, or 33c per share, which compared with a loss of $19,393,000 during the same quarter of the previous year. Revenue for the quarter was $412,127,000, up 44% from $285,118,000.

“We recently completed the development of our strategic plan, which clarifies our priorities and focus, and sets aggressive goals for the next several years,” Mr. Singer said. “We will focus most of our resources on growing our core brands and product lines. These core brands represent the categories where we have the best market position, profit margins and growth prospects. These will be the primary focus of our resources and deliver the majority of our internal growth in the next few years. At the same time, we will focus on improving the margins on our allied brands and private brands products. As we move through 2012, we believe this focus and the completion of our integration work will deliver wider profit margins and position the company for long-term profitable growth. We anticipate driving growth in our existing product portfolio through excellent marketing programs and expanded distribution. We also anticipate growth from the internal development of new and existing product lines as well as through strategic acquisitions.”

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