Snyder's-Lance, Inc.
Apr 27, 2007

Lance, Inc. Reports Strong 2007 First Quarter Results Driven by Solid Revenue and Improved Cost Performance; Raises 2007 Earnings Estimate

CHARLOTTE, N.C., APRIL 27 /PRNewswire-FirstCall/ -- Lance, Inc. (Nasdaq: LNCE) today reported net revenue from continuing operations for the first quarter ended March 31, 2007 of $182.4 million, an increase of 1% compared with prior year first quarter net revenue from continuing operations of $180.7 million. The Company reported net income from continuing operations of $5.9 million, or $0.19 per diluted share, compared to net income from continuing operations excluding special items of $0.2 million, or $0.01 per diluted share, in the prior year first quarter. Special items in the first quarter of 2006 were related to employee retention payments supporting the integration of the Tom's acquisition. Including these special items, first quarter 2006 reported results were a net loss of $0.9 million, or $0.03 per diluted share.

The Company reported first quarter 2007 net income from discontinued vending operations of $0.3 million, or approximately $0.01 per diluted share. The Company believes that the previously announced discontinuation of its Company-owned vending operations is on track for completion by the end of the third quarter.

Comments from Management

"We are very pleased with our first quarter operating performance," said David V. Singer, President and Chief Executive Officer. "Our first quarter net sales were in line with our projections, as we continued to drive solid growth in our core branded product lines and experienced a 5% year-to-year growth in our private label business. As expected, our overall branded business declined by 1% during the first quarter due to the decision to eliminate various unprofitable customers and product lines, which was consistent with our overall Tom's integration strategy. Our profit margins widened significantly during the quarter compared to the first quarter of 2006, reflecting a more profitable mix of revenues and more efficient operations driven by the integration of the Tom's business, improvements in our supply chain and increased efficiencies in our DSD operation. It should also be noted that revisions to our strategy around key marketing initiatives resulted in a delay in our first quarter media spending. This delay in spending resulted in a benefit of approximately $0.03 in diluted earnings per share for the first quarter compared to our original plan; however, we anticipate spending in line with our original plan for the full year."

Mr. Singer further commented, "In the coming quarters we anticipate a continuation of solid cost performance versus last year as we continue to drive improvements through our key initiatives across our DSD system and supply chain. However, our near-term outlook is tempered by the increased cost of grain-based commodities, particularly cooking oils and flour. As we move forward through the remainder of the year, we will continue to execute on our key initiatives and look for ways to mitigate the rising cost of commodities."

Revised 2007 Estimates

Based upon the performance in the first quarter, the Company revised its full year 2007 estimates for earnings per diluted share to a range of $0.84 to $0.90. Previously, the Company had provided a full year earnings per diluted share estimate of $0.80 to $0.88. 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 May 18, 2007 to stockholders of record at the close of business on May 10, 2007.

Conference Call

Lance, Inc. has scheduled a conference call discussion with investors at 9:00 a.m. eastern time on Friday, April 27, 2007 to discuss first 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 12:00 p.m. on April 27 and running through midnight May 4, 2007. The replay telephone number is (800) 642-1687. The international number is (706) 645-9291. The replay access code is 5716105. 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/(LOSS)
              (in thousands, except share and per-share amounts)
                                 (unaudited)


                                                     Fiscal Quarter Ended
                                             March 31, 2007      April 1, 2006

    Revenue                                     $182,426            $180,745
    Cost of sales                                102,976             104,866
    Gross margin                                  79,450              75,879

    Selling, marketing and delivery               56,479              65,045
    General and administrative                    13,137              11,458
    Other (income)/expense, net                      (90)                162
    Earnings/(losses) before interest and
     taxes                                         9,924                (786)

    Interest expense, net                           (604)               (669)
    Income tax (expense)/benefit                  (3,448)                531
    Net income/(loss) from continuing
     operations                                   $5,872               $(924)

    Income from discontinued operations              537                 250
    Income tax expense                              (199)                (91)
    Net Income from discontinued operations          338                 159
         Net Income/(loss)                        $6,210               $(765)

    Basic earnings/(loss) per share:
         From continuing operations                $0.19              $(0.03)
         From discontinued operations               0.01                0.00
    Basic earnings/(loss) per share                $0.20              $(0.03)
    Weighted average shares outstanding -
     basic                                    30,805,000          29,933,000

    Diluted earnings/(loss) per share:
         From continuing operations                $0.19              $(0.03)
         From discontinued operations               0.01                0.00
    Diluted earnings/(loss) per share              $0.20              $(0.03)
    Weighted average shares outstanding -
     diluted                                  31,131,000          30,362,000



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

                                                 March 31,        December 30,
                                                   2007               2006
    Assets:
    Cash and cash equivalents                     $3,246              $5,504
    Accounts receivable, net                      65,235              61,690
    Inventories                                   37,329              36,838
    Deferred income tax asset                      8,748               8,811
    Assets held for sale                           5,259               6,552
    Prepaid expenses and other current assets      7,641               6,298
       Total Current Assets                      127,458             125,693
    Property plant and equipment, net            193,661             193,009
    Goodwill and other intangibles, net           62,617              62,300
    Other assets                                   4,663               4,450
       Total Assets                             $388,399            $385,452

    Liabilities and Equity:
    Accounts payable                             $19,644              18,194
    Other current liabilities                     50,428              55,254
        Total Current Liabilities                 70,072              73,448

    Long-term debt                                50,000              50,000
    Other liabilities                             41,071              39,604
    Stockholders' equity                         227,256             222,400
    Total Liabilities and Stockholders'
     Equity                                     $388,399            $385,452



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


                                                       Fiscal Quarter Ended
                                                   March 31,          April 1,
                                                     2007               2006
    Operating Activities:
    Net income/(loss)                               $6,210             $(765)
    Depreciation and amortization                    6,981             6,650
    Stock-based compensation expense                   876               660
    (Gain)/loss on sale of property, net              (140)              110
    Changes in operating assets and liabilities     (5,916)          (10,724)
    Net cash flow from/(used in)
     operating activities                            8,011            (4,069)

    Investing Activities:
    Purchases of property and equipment             (7,073)           (9,855)
    Proceeds from sale of property                     802             1,383
    Net cash used in investing activities           (6,271)           (8,472)

    Financing Activities:
    Dividends paid                                  (4,935)           (4,789)
    Issuance of common stock                           829             7,125
    Net proceeds from revolving credit
     facilities                                          -             9,506
    Net cash (used in)/from financing activities    (4,106)           11,842

    Effect of exchange rate changes on cash            108                83

    Decrease in cash and cash equivalents           (2,258)             (616)
    Cash and cash equivalents at
     beginning of period                             5,504             3,543
    Cash and cash equivalents at end of
     period                                         $3,246            $2,927



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


    Fiscal Quarter Ended April 1, 2006
                                                         Net of    Per diluted
                                                           Tax         share

    Loss from continuing operations                       $(924)      $(0.03)

      Tom's integration related charges                   1,091         0.04

    Income from continuing operations, excluding
     special charges                                       $167        $0.01

SOURCE  Lance, Inc.
    -0-                             04/27/2007
    /CONTACT:  Russell Allen Director of Planning & IR, Lance, Inc.,
+1-704-557-8219, or Joseph Calabrese, Financial Relations Board, for Lance,
Inc., +1-212-827-3772/
    /Web site:  http://www.lancesnacks.com /
    (LNCE)

CO:  Lance, Inc.
ST:  North Carolina
IN:  FOD REA
SU:  ERN CCA ERP DIV

DB-WB
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6555 04/27/2007 07:00 EDT http://www.prnewswire.com