Charlotte / NC. (sli) Snyder’s-Lance Inc. reported third quarter net revenue growth of two percent over last year, with earnings of 0.26 USD per diluted share excluding special items and 0.22 USD per diluted share including special items.
«We are excited about our announcement made earlier this morning of a definitive agreement to acquire Diamond Foods Inc. in a deal that is expected to close early in 2016. As we have worked toward the signing of this agreement, we have also reacted to the short term challenges of Q3 and continue to execute our strategic plan», said Carl E. Lee, Jr., President and CEO. ««Late July» and «Snack Factory» «Pretzel Crisps» brought in solid top line performance for our Clearview Division while «Snyder’s of Hanover» and «Lance» continued to drive good year-over-year increases for the quarter. «Cape Cod» kettle chips delivered strong sales increases as well. Overall, we delivered year over year growth and gained share in all five core brands in spite of retailer consolidations, a softer back-to-school selling season and significant challenges in the mass merchandiser channel».
Lee continued, «In today’s environment, it is critical to remain competitive on the cost side of the business. We announced on our last earnings call our intention to reach of ten percent operating income run rate. We made significant progress toward realizing this goal in Q3 with our ‘Drive for 10’ initiative, which will be ongoing throughout the year. Led by senior leaders and staffed with some of our most talented cross functional associates, we expect to realize our goals in cost savings and leverage from this program in 2016. With a clear focus on top line growth and cost savings, we look forward to driving more positive near term results and moving forward with increased momentum. I am confident in our ability to deliver positive results as we continue the work to complete the acquisition of Diamond Foods».
Third Quarter Financial Summary
- Net revenue for the third quarter of 2015 was 416.8 million USD, an increase of 1.8 percent compared to the third quarter of 2014 net revenue of 409.3 million USD.
- Net income excluding special items for the third quarter of 2015 was 18.6 million USD, or 0.26 USD per diluted share, as compared to net income excluding special items of 16.4 million USD for the third quarter of 2014, or 0.23 USD per diluted share.
- Including special items, net income for the third quarter of 2015 was 15.7 million USD, or 0.22 USD per diluted share, as compared to net income including special items of 13.7 million USD for the third quarter of 2014, or 0.19 USD per diluted share.
- Special items for the third quarter of 2015 included after-tax expenses of 2.9 million USD primarily associated with an accrual for the expected settlement of certain litigation. Special items for the third quarter of 2014 included after-tax expenses of 2.7 million USD primarily associated with a deferred tax revaluation which was required as a result of the sale of Private Brands.
First Nine Months Financial Summary
- Net revenue for the first nine months of 2015 was 1.25 billion USD, an increase of 5.8 percent compared to the first nine months of 2014 net revenue of 1.18 billion USD.
- Net income excluding special items for the first nine months of 2015 was 49.7 million USD, or 0.70 USD per diluted share, as compared to net income excluding special items of 44.0 million USD for the first nine months of 2014, or 0.62 USD per diluted share.
- Including special items, net income for the first nine months of 2015 was 43.6 million USD, or 0.61 USD per diluted share, as compared to net income including special items of 32.3 million USD for the first nine months of 2014, or 0.46 USD per diluted share.
- Special items for the first nine months of 2015 included after-tax expenses of 6.0 million USD primarily associated with legal fees and accruals for expected settlements of certain litigation. Special items associated with continuing operations for the first nine months of 2014 included after-tax expenses of 4.8 million USD for impairment charges, 2.3 million USD for restructuring charges, 2.0 million USD in professional fees, 0.6 million USD for self-funded medical expenses and a 2.1 million USD deferred tax revaluation.
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 November 27, 2015 to stockholders of record at the close of business on November 20, 2015.
Estimates for 2015 and 2016
The estimates for 2015 reflect the results of the third quarter, with net revenue for the full year expected to be in the range of 1.68 USD to 1.70 billion USD. The earnings per diluted share estimates are a range of 1.07 USD to 1.12 USD with capital expenditures for 2015 projected to be 56 to 58 million USD.
For 2016, net revenue growth is estimated to be between three to five percent. Earnings per diluted share are estimated to be 1.35 USD to 1.42 USD, resulting from increased revenue and our Drive for ten initiatives. Capital expenditures are projected to be 50 to 55 million USD for the full year.