Snyder’s-Lance: Reports Results for Full Year 2014

Charlotte / NC. (li) Snyder´s-Lance Inc. reported full year earnings of 1.09 USD, excluding special items and revenue growth of 7.4 percent over last year, 5.5 percent excluding the impact of the 53rd week. The Company also reported fourth quarter earnings of 0.30 USD excluding special items, and growth of 6.9 percent over last year excluding the 53rd week, reflecting a strong finish to the year.

«We are pleased with our performance for the fourth quarter and the past year, delivering solid financial growth as we executed a strategic shift in our business and operations. This past year was transformative for our company and we consider it a new day for Snyder´s-Lance», said Carl E. Lee, Jr., President and CEO. «These changes included the sale of Private Brands, acquiring Baptista´s Bakery, increasing our ownership interest to 80 percent of «Late July» Organic Snacks and the forming of «Clearview Foods», a new division dedicated to emerging trends. These moves have positioned Snyder´s-Lance as a branded company with exceptional innovation capabilities and a meaningful presence in «better for you», organic and non-GMO snacking. Our industry is going through an exciting time, as it responds to a shift in consumers´ expectations across snacking categories. These consumer changes favor a decisive, nimble and aggressive mid-sized company like ours with the scale to compete».

Lee went on to say, «For the fourth quarter of 2014, we gained significant market share in salty snacks as investments in advertising and retail execution drove category and brand growth. We saw improvements in our Lance brand during the fourth quarter as our renovation of our product offerings, positioning and packaging began to roll out to our retailers. These efforts, along with the continued solid performance of our new product innovation and partner brands helped drive a top line increase of 6.9 percent excluding the extra week, giving us good momentum heading into 2015. A growing portion of our revenue comes from «better for you» snacks and that will expand further with the launch of new products in 2015».

Lee continued, «We are moving into 2015, well positioned in growing categories with differentiated brands. I look forward to all we will accomplish as our business continues to evolve and grow in this coming year. We are proud of our associates for their leadership, service and passion as we go the extra mile to serve our consumers and retailers».

Full Year Financial Summary

The following comments regarding net revenue and net income information for the full year and fourth quarter of both 2014 and 2013 includes continuing and discontinued operations for the first six months of the year but excludes discontinued operations for the last six months of the year.

  • Net revenue for the full year 2014 was 1.75 billion USD; an increase of 7.4 percent compared to full year 2013 net revenue of 1.63 billion USD and an increase of 5.5 percent, excluding the impact of additional 53rd week in 2014.
  • Net income excluding special items for the full year 2014 was 77.0 million USD, or 1.09 USD per diluted share, as compared to net income excluding special items of 68.8 million USD for full year 2013, or 0.98 USD per diluted share when adjusted to exclude discontinued operations for the last six months of 2013.
  • Net income reported for the year ended January 03, 2015 was 192.6 million USD, or 2.72 USD per diluted share, as compared to net income including special items and discontinued operations of 78.7 million USD for the full year 2013, or 1.12 USD per diluted share.
  • Net income from discontinued operations for the full year 2014 included the recognition of an after-tax gain on the sale of Private Brands of 121.5 million USD, or 1.71 USD per diluted share.
  • Beginning in the first quarter of 2015, our comparisons to 2014 financial information will only include our continuing operations. Net revenue from continuing operations for full year 2014 was 1.62 billion USD. This represents a 7.7 percent increase over 2013 for continuing operations. Net income from continuing operations, excluding special items, was 65.2 million USD for full year 2014, or 0.92 USD per diluted share. Net income from continuing operations, including special items, was 59.3 million USD for full year 2014, or 0.84 USD per diluted share.
  • Special items associated with continuing operations for full year 2014 included an after-tax gain on the revaluation of our prior equity investment in Late July of 9.8 million USD which was more than offset by after-tax expenses of 15.7 million USD primarily associated with impairment charges, restructuring charges and professional fees. Special items associated with continuing operations for full year 2013 included after-tax expenses of 4.4 million USD.

Fourth Quarter Financial Summary

  • Net revenue for the fourth quarter ended January 03, 2015 was 439 million USD, an increase of 14.8 percent compared to prior year net revenue of 382 million USD from continuing operations and an increase of 6.9 percent, excluding the impact of the additional 53rd week in 2014.
  • Net income from continuing operations excluding special items in the fourth quarter of 2014 was 21.1 million USD, or 0.30 USD per diluted share, as compared to net income from continuing operations excluding special items of 15.4 million USD for the fourth quarter of 2013, or 0.22 USD per diluted share.
  • Net income from continuing operations including special items was 27.0 million USD for the fourth quarter of 2014, or 0.38 USD per diluted share, as compared to net income from continuing operations including special items of 15.2 million USD for the fourth quarter of 2013, or 0.22 USD per diluted share.
  • Special items associated with continuing operations for the fourth quarter of 2014 included an after-tax gain on the revaluation of our prior equity investment in Late July of 9.8 million USD offset by after-tax expenses of 4.0 million USD primarily associated with impairment charges.
  • A reconciliation of full year and quarter net revenue and net income to full year and quarter non-GAAP net revenue and net income can be found in attached schedules.

Dividend Declared

The Company also announced the declaration of a quarterly cash dividend of 0.16 USD per share on the Company´s common stock. The dividend is payable on March 6, 2015 to stockholders of record at the close of business on February 25, 2015.

Estimates provided for 2015

The Company estimates net revenue for the full year 2015 to be in the range of 1.68 USD to 1.72 billion USD. Earnings per diluted share excluding special items are expected to be between 1.09 USD and 1.19 USD. Capital expenditures for 2014 are projected to be between 60 and 65 million USD.