Snyder's-Lance, Inc.
Jul 26, 2007

Lance, Inc. Reports 2007 Second Quarter Net Revenue of $197 Million, Up 5%, and Diluted EPS Increase of 50% to $0.30 from Continuing Operations; Raises Full Year Earnings Estimates

CHARLOTTE, N.C., July 26 /PRNewswire-FirstCall/ -- Lance, Inc. (Nasdaq: LNCE) today reported net revenue from continuing operations for the second quarter ended June 30, 2007 of $197.0 million, an increase of 5% compared with prior year second quarter net revenue from continuing operations of $188.3 million. The Company reported net income from continuing operations for the second quarter of 2007 of $9.3 million, or $0.30 per diluted share, representing a 48% increase from the second quarter of 2006 net income from continuing operations, excluding special items, of $6.3 million, or $0.20 per diluted share. Special items in the second quarter of 2006 were related to employee retention payments supporting the integration of the Tom's acquisition. Including these special items, second quarter 2006 net income from continuing operations was $5.9 million, or $0.19 per diluted share.

Revenue from continuing operations for the six month period ended June, 30, 2007 was $379.5 million, an increase of 3% compared with the same period in the prior year. For the first half of 2007, net income from continuing operations was $15.1 million, or $0.49 per diluted share, compared to net income from continuing operations, excluding special items, of $6.4 million, or $0.21 per diluted share, in the first half of the prior year. Special items in the first half of 2006 were related to employee retention payments supporting the integration of the Tom's acquisition. Including these special items, first half 2006 net income from continuing operations was $5.0 million, or $0.17 per diluted share. The Company reported net income from discontinued vending operations of $0.1 million for the first half of 2007.

Comments from Management

"I am very pleased with our financial results in the first half as we have delivered solid performance against our key initiatives," said David V. Singer, President and Chief Executive Officer. "Second quarter net sales increased 5% over last year, reflecting a 5% increase in branded sales driven by continued strength in our core Lance® and Cape Cod® brands, and 4% growth in our non-branded sales. Our ongoing focus on improving the efficiency of our supply chain and DSD operations continued to flow through to our bottom line with another quarter of expanding profit margins."

Mr. Singer further commented, "While we anticipate that the efficiency improvements we have delivered in the first half will continue to gain momentum, the profit margin in the second half of the year will be impacted by a significant increase in commodity costs, particularly cooking oils and flour. The first half results reflect the impact of a $6.1 million increase in commodity costs compared to the first half of 2006, and we anticipate a greater increase in the second half of the year."

Consistent with its strategic plan to improve overall operational efficiency and profitability while reallocating resources to channels of business with stronger growth and profit potential, Lance continued its previously announced exit of its Company-owned vending business. The Company has reported the net impact of this business as a discontinued operation and reported a second quarter 2007 net loss from discontinued vending business of $0.2 million, or approximately $0.01 per diluted share. The Company believes that the discontinuation of its Company-owned vending business remains on track for completion by the end of the third quarter of 2007.

Revised 2007 Estimates

Based upon the performance in the second quarter and the outlook for the remainder of the year, the Company revised its full year 2007 estimates for earnings per diluted share from continuing operations to a range of $0.86 to $0.92. Previously, the Company had provided a full year earnings per diluted share estimate of $0.84 to $0.90. The Company confirmed its previous net sales estimate of $750 to $775 million for 2007.

Dividend Declared

The Company also announced the declaration of a regular quarterly cash dividend of $0.16 per share on the Company's common stock. The dividend is payable on August 20, 2007 to stockholders of record at the close of business on August 10, 2007.

Conference Call

Lance, Inc. has scheduled a conference call discussion with investors at 5:00 pm eastern time on Thursday, July 26, 2007 to discuss second quarter financial results. To participate in the call, the dial-in numbers are (800) 789-3681 for U.S. callers and (706) 634-1425 for international callers. The access code is "LANCE." A continuous replay of the call will be available beginning at 8:00 pm on July 26 and running through midnight August 3, 2007. The replay telephone number is (800) 642-1687. The international number is (706) 645-9291. The replay access code is 6470731. A web-based replay of the conference call will also be available in the investor relations section of Lance's web site, www.lance.com.

About Lance, Inc.

Lance, Inc., headquartered in Charlotte, NC, manufactures and markets snack foods throughout much of the United States and other parts of North America. The Company's products include sandwich crackers and cookies, restaurant style crackers, potato chips, tortilla chips, cookies, sugar wafers, nuts, candy and other snacks. Lance has manufacturing facilities in North Carolina, Georgia, Florida, Texas, Iowa, Massachusetts and Ontario, Canada. Products are sold under the Lance, Cape Cod and Tom's brand names along with a number of private label and third party brands. The Company's products are distributed through a direct-store-delivery system of approximately 1,500 sales routes, a network of independent distributors and direct shipments to customer locations. Products are distributed widely through grocery stores, convenience stores, mass merchants, food service outlets and other channels.

This news release contains statements which may be forward looking within the meaning of applicable securities laws. The statements may include projections regarding future earnings and results which are based upon the Company's current expectations and assumptions, which are subject to a number of risks and uncertainties. Factors that could cause actual results to differ, including price competition, industry consolidation, changes in consumer preferences, product recalls, safety concerns, natural disasters, catastrophic events, raw material costs, food industry and regulatory factors, risks from large customers, interest rate, foreign exchange rate, and credit risks, acquisition integration and divestitures are discussed in the Company's most recent Form 10-K filed with the Securities and Exchange Commission.

This press release presents measures not derived in accordance with generally accepted accounting principles ("GAAP"). Such measures should not be considered substitutes for any measures derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliation of these non-GAAP measures to the most nearly comparable GAAP measures, if applicable, is presented in the attached pages.


                                 LANCE, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              (in thousands, except share and per-share amounts)
                                 (unaudited)

                                                         Quarter Ended
                                               June 30, 2007     July 1, 2006

    Revenue                                       $197,036         $188,341
    Cost of sales                                  109,435          105,660
    Gross margin                                    87,601           82,681

    Selling, marketing and delivery                 59,864           60,285
    General and administrative                      11,603           11,771
    Other expense, net                                 973              517
    Income from continuing operations
     before interest and taxes                      15,161           10,108

    Interest expense, net                             (615)            (828)
    Income tax expense                              (5,277)          (3,386)
    Net income from continuing operations           $9,269           $5,894

    (Loss)/Income from discontinued operations        (346)             418
    Income tax benefit/(expense)                       129             (153)
    Net (Loss)/Income from discontinued operations    (217)             265
      Net Income                                    $9,052           $6,159

    Basic earnings/(loss) per share:
      From continuing operations                    $ 0.30            $0.19
      From discontinued operations                   (0.01)            0.01
    Basic earnings per share                         $0.29            $0.20
    Weighted average shares outstanding
     - basic                                    30,927,000       30,462,000

    Diluted earnings/(loss) per share:
      From continuing operations                     $0.30            $0.19
      From discontinued operations                   (0.01)            0.01
    Diluted earnings per share                       $0.29            $0.20
    Weighted average shares outstanding
     - diluted                                  31,414,000       30,935,000



                                 LANCE, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              (in thousands, except share and per-share amounts)
                                 (unaudited)

                                                       Six Months Ended
                                               June 30, 2007     July 1, 2006

    Revenue                                       $379,463         $369,086
    Cost of sales                                  212,412          210,526
    Gross margin                                   167,051          158,560

    Selling, marketing and delivery                116,343          125,330
    General and administrative                      24,739           23,229
    Other expense, net                                 884              679
    Income from continuing operations
     before interest and taxes                      25,085            9,322

    Interest expense, net                           (1,219)          (1,497)
    Income tax expense                              (8,725)          (2,855)
    Net income from continuing operations          $15,141           $4,970

    Income from discontinued operations                190              668
    Income tax expense                                 (69)            (244)
    Net income from discontinued operations            121              424
      Net Income                                   $15,262           $5,394

    Basic earnings per share:
      From continuing operations                     $0.49            $0.17
      From discontinued operations                    0.00             0.01
    Basic earnings per share                         $0.49            $0.18
    Weighted average shares outstanding
     - basic                                    30,866,000       30,197,000

    Diluted earnings per share:
      From continuing operations                     $0.49            $0.17
      From discontinued operations                    0.00             0.01
    Diluted earnings per share                       $0.49            $0.18
    Weighted average shares outstanding
     - diluted                                  31,308,000       30,622,000




                                 LANCE, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in thousands)
                                 (unaudited)

                                             June 30, 2007  December 30, 2006
    Assets:
    Cash and cash equivalents                     $6,032             $5,504
    Accounts receivable, net                      71,139             61,690
    Inventories                                   39,302             36,838
    Deferred income tax asset                      8,151              8,811
    Assets held for sale                           3,569              6,552
    Prepaid expenses and other current
     assets                                        8,997              6,298
      Total Current Assets                       137,190            125,693
    Property plant and equipment, net            202,268            193,009
    Goodwill and other intangibles, net           65,660             62,300
    Other assets                                   7,304              4,450
      Total Assets                              $412,422           $385,452

    Liabilities and Equity:
    Accounts payable                             $26,115             18,194
    Other current liabilities                     52,832             53,426
      Total Current Liabilities                   78,947             71,620

    Long-term debt                                50,000             50,000
    Other liabilities                             43,568             41,432
    Stockholders' equity                         239,907            222,400
    Total Liabilities and Stockholders'
     Equity                                     $412,422           $385,452




                                 LANCE, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                                (in thousands)
                                 (unaudited)

                                                       Six Months Ended
                                              June 30, 2007      July 1, 2006

    Operating Activities:
    Net income                                   $15,262             $5,394
    Depreciation and amortization                 14,461             13,388
    Equity-based compensation expense              1,767              1,068
    Loss/(gain) on disposition of
     property, net                                   518                 (4)
    Changes in operating assets and
     liabilities                                  (3,057)           (12,758)
    Net cash flow from operating
     activities                                   28,951              7,088

    Investing Activities:
    Purchases of property and equipment          (22,608)           (27,198)
    Proceeds from sale of property                 3,319              2,762
    Purchase of investment                        (2,090)                 -
    Net cash used in investing activities        (21,379)           (24,436)

    Financing Activities:
    Dividends paid                                (9,900)            (9,677)
    Issuances of common stock                      2,769             17,036
    Net proceeds from revolving credit
     facilities                                        -              7,505
    Net cash (used in)/from financing
     activities                                   (7,131)            14,864

    Effect of exchange rate changes
     on cash                                          87                220

    Increase/(decrease) in cash and
    cash equivalents                                 528             (2,264)
    Cash and cash equivalents at
     beginning of period                           5,504              3,543
    Cash and cash equivalents at end of
     period                                       $6,032             $1,279



                                 LANCE, INC.
                     RECONCILIATION OF NON-GAAP MEASURES
                   (in thousands, except per-share amounts)
                                 (unaudited)


    Second Quarter Ended July 1, 2006
                                                   Net of         Per diluted
                                                    Tax              share

    Net Income from continuing
     operations                                   $5,894             $0.19

      Tom's integration related
      charges                                        370              0.01

    Income from continuing operations,
     excluding special charges                    $6,264             $0.20

    Six Months Ended July 1, 2006
                                                   Net of         Per diluted
                                                    Tax              share

    Net Income from continuing
     operations                                   $4,970             $0.17

    Tom's integration related charges              1,462              0.04

     Income from continuing operations,
      excluding special charges                   $6,432             $0.21


SOURCE Lance, Inc.



CONTACT:
Russell Allen
Director of Planning & IR
+1-704-557-8219
or
Joseph Calabrese
Financial Relations Board
+1-212-827-3772
both for Lance, Inc.