Snyder's-Lance reports Q1 net earnings of US$16.8M, down 15.2% from year-ago period, partly due to after-tax charges of US$1.4M during recent quarter; net revenue up 4.4% to US$437M

Nevin Barich

CHARLOTTE, North Carolina , May 8, 2014 (press release) – - Reports 2014 first quarter net revenue of $437 million, a 4.4% increase over prior year

- Reports 2014 first quarter earnings per diluted share of $0.26 excluding special items

- Reports 2014 first quarter earnings per diluted share of $0.24 including special items

- Declares quarterly dividend of $0.16 per share of common stock

Snyder's-Lance, Inc. (LNCE) today reported results for its first quarter of 2014. Net revenue for the first quarter ended March 29, 2014 was $437 million, an increase of 4.4% compared to prior year net revenue of $419 million. Net income excluding special items in the first quarter of 2014 was $18.2 million, or $0.26 per diluted share, as compared to net income of $19.8 million for the first quarter of 2013, or $0.28 per diluted share. Net income including special items was $16.8 million for the first quarter of 2014, or $0.24 per diluted share, as compared to net income of $19.8 million for the first quarter of 2013, or $0.28 per diluted share. Special items for the first quarter of 2014 included after-tax charges of $1.4 million consisting primarily of an impairment charge and certain acquisition related costs. There were no special items in the first quarter of 2013.

Comments from Management

"Snyder's-Lance is off to a good start in 2014. As we discussed in our last earnings call, we continued developing our core brands with stepped up investments to support the first quarter new products roll out by significantly increasing our spend over last year", commented Carl E. Lee, Jr., President and Chief Executive Officer. "In addition to these marketing initiatives, during the first quarter we introduced a substantial number of innovative new product offerings including Snyder's of Hanover® Sweet and Salty pretzel pieces, Korn Kruncherstm and our successful line of Lance® Bolds sandwich crackers. Snyder's of Hanover pretzels had strong growth, driven by the new products and innovation while we also expanded the distribution of our Cape Cod® kettle-cooked chips in the western regions of the country, helping to increase revenues substantially when compared to the first quarter of 2013. Just as exciting, we once again saw double-digit revenue growth and market share growth compared to the prior year for our Snack Factory® Pretzel Crisps® pretzel crackers and we have put in place robust marketing and development initiatives focused on our Lance® sandwich crackers. We continued to show growth in our Partner brand and Other product categories due to increased distribution."

"I'm proud of how our team continues to drive our business, making Snyder's-Lance a stronger company every day. As announced earlier this week, we have two important transactions in process as we look to acquire Baptista's Bakery and sell our Private Brands to Shearer's Foods. These two events are important steps along our overall strategic plan and are significant advancements in our drive to focus on branded products and on-trend product innovation. Credit for our success goes to our associates who are dedicated and hard working. I want to say "Thanks" for a good start to 2014, and look forward to the balance of 2014 with enthusiasm."

Dividend Declared

The Company also announced the declaration of a quarterly cash dividend of $0.16 per share on the Company's common stock. The dividend is payable on May 30, 2014 to stockholders of record at the close of business on May 22, 2014.

Estimates provided for 2014

The Company estimates remain unchanged with net revenue for the full year 2014 expected to be up 3% to 5% organically when compared to 2013. Earnings per diluted share are expected to increase between 10% and 16% compared to 2013 earnings per diluted share, excluding special items. Capital expenditures for 2014 are projected to be between $70 and $75 million as investments are made in plant improvements, quality, capacity and innovation. Once the pending transactions are closed, we will provide updated estimates for 2014.

Conference Call

Management will conduct a conference call and live webcast at 9:00 am eastern time on Thursday, May 8, 2014 to review the Company's first quarter results as well as the recently announced agreement to sell Private Brands to Shearer's Foods and the recently announced agreement to acquire Baptista's Bakery. The conference call and accompanying slide presentation will be webcast live through the Investor Relations section of the Company's website, www.snyderslance.com. In addition, the slide presentation will be available to download and print approximately 30 minutes before the webcast at www.snyderslance.com. To participate in the conference call, the dial-in number is (844) 830-1960 for U.S. callers or (315) 625-6883 for international callers. A continuous telephone replay of the call will be available between 3:00pm on May 8 and midnight on May 15. The replay telephone number is (855) 859-2056 for U.S. callers or (404) 537-3406 for international callers. The replay access code is 35042167. Investors may also access a web-based replay of the conference call at www.snyderslance.com.

About Snyder's-Lance, Inc.

Snyder's-Lance, Inc., headquartered in Charlotte, NC, manufactures and markets snack foods throughout the United States and internationally. The Company's products include pretzels, sandwich crackers, pretzel crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. Snyder's-Lance has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Florida, Ohio and Ontario, Canada. Products are sold under the Snyder's of Hanover®, Lance®, Cape Cod®, Snack Factory® Pretzel Crisps®, Krunchers!®, Tom's®, Archway®, Jays®, Stella D'oro®, Eatsmart™, O-Ke-Doke®, Quitos™ and Padrinos® brand names along with a number of third party brands. Products are distributed nationally through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels. LNCE-E

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