Charlotte / NC. (li) Snyder´s-Lance Inc. reported results for its second quarter of 2013. Net revenue for the second quarter ended June 29, 2013 was 439 million USD, an increase of 9,9 percent compared to prior year net revenue of 399 million USD. Net income excluding special items in the second quarter of 2013 was 16,9 million USD or 0,24 USD per diluted share, as compared to second quarter 2012 net income excluding special items of 15,0 million USD or 0,22 USD per diluted share. Net income was 13,0 million USD for the second quarter of 2013 or 0,19 USD per diluted share, compared to net income of 19,5 million USD or 0,28 USD per diluted share, for the second quarter of 2012. Special items for the second quarter of 2013 included after-tax expenses of 1,2 million USD for impairment charges and 2,7 million USD for a substantial self-funded medical expense. Special items for the second quarter of 2012 included after-tax gains of 4,8 million USD on the sale of route businesses from the merger integration as well as after-tax expenses of 0,5 million USD for other merger related expenses.
Comments from Management
«We are pleased with our performance in the second quarter of 2013 as Snyder´s-Lance continues to execute on the fundamentals of our strategic plan to build a stronger, premium and differentiated snack foods company», commented Carl E. Lee, Jr., President and Chief Executive Officer. «Growing our top line at ten percent year over year through a combination of acquired and organic growth demonstrates our team is capable of winning on many fronts. Our plan of emphasizing core brands, while expanding margins for our Private Brands and other products over time, is proving to be a solid path forward for creating shareholder value. As previously discussed, we increased our investment in marketing and advertising during the second quarter to build brand awareness and drive sales in the second half of the year. During the quarter, we stepped up our advertising spending to launch a new television advertising campaign for Snyder´s of Hanover pretzels. We also increased social media promotional activities for the 100-year anniversary of the Lance brand, a significant milestone for our company. We continued to benefit from our acquisition of Snack Factory Pretzel Crisps which posted significant year over year revenue and market share gains. Net revenue for our core branded products was up 22 percent for the second quarter, largely driven by acquired volume. In addition, all of these core brands posted market share gains for full year 2013. We expect solid sales momentum in the second half of 2013 as our core brand advertising, marketing and promotional efforts begin to influence retail sales».
Lee continued, «Ongoing consumer and marketing efforts are planned for the third quarter. We firmly believe that our strategic plan remains solid and we have a number of product innovations and initiatives for the remainder of 2013 and beyond to build our brands and expand their distribution. Snyder´s-Lance is very excited about the future and I want to thank our associates and partners for their continued commitment and dedication».
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 August 30, 2013 to stockholders of record at the close of business on August 21, 2013.
The Company has maintained its estimates for the full year 2013. The Company estimates that its net revenue for the full year 2013 will be up ten percent to twelve percent and earnings per diluted share will increase between 22 percent and 32 percent, excluding special items, compared to 2012. Capital expenditures for 2013 are projected to be between 78 and 83 million USD.