Snyder's-Lance, Inc.
May 5, 2010

Lance, Inc. Reports Results for First Quarter 2010

CHARLOTTE, N.C., May 5, 2010 /PRNewswire via COMTEX News Network/ --

Lance, Inc. (Nasdaq-GS: LNCE) today reported net revenues for the first quarter ended March 27, 2010 of $221.6 million, an increase of 3% over the prior year first quarter net revenues of $215.8 million.

The Company's branded product net sales, which represented about 57% of total revenue in the 2010 first quarter, decreased approximately 1% from the first quarter of 2009. Net revenue was negatively impacted by increased promotional pricing during the first quarter of 2010. Sales of branded products to grocery stores, dollar stores, mass merchandisers and distributors increased compared to the same quarter of last year due to the acquisition of Stella D'oro, new product offerings and growth of existing products with new and established customers. These increases were more than offset by double-digit revenue declines from certain channels, including convenience stores, up-and-down the street customers, and food service establishments, largely reflecting the impact of lower consumer spending in these channels.

The Company's non-branded product net sales increased approximately 7% in the 2010 first quarter. Growth in this category was well below recent trends, reflecting increased promotional activity from branded competitors, resulting in lower volume than the Company's expectations.

Lance realized first quarter 2010 net income of $1.2 million excluding special items, or $0.04 per diluted share, as compared to first quarter 2009 net income of $6.5 million, or $0.20 per diluted share. The special items recognized during the first quarter of 2010 consisted of after-tax expenses of $1.9 million associated with an unsuccessful bid for a targeted acquisition. Including the special items identified above, first quarter 2010 net loss was $0.8 million, or a loss per diluted share of $0.02.

Comments from Management

"We are disappointed that our first quarter revenue, profit margin and EPS were well below our expectations," commented David V. Singer, President and Chief Executive Officer. "Our non-branded sales were impacted by more aggressive promotional pricing by branded competitors. Our branded sales suffered from less effective promotions in an increasingly competitive environment. Because we expected higher sales in the first quarter, we committed additional costs to support future growth. The combination of higher costs, softer than planned volume, and less productive promotions lowered our profit margin significantly in the quarter. Since this margin squeeze occurred in our seasonally weakest quarter, our EPS suffered significantly. We are taking steps to reduce our operating costs, making changes to our promotional approach to improve productivity, and taking actions to support our volume growth. We believe these measures will drive a rebound in our profit margin, especially as we move into our seasonally stronger quarters."

Company 2010 Estimates Updated

Based on its assessment of the current operating and competitive environment, the Company revised its net revenue estimate for the full year 2010 to a range of $930 and $950 million, and its earnings per diluted share to a range of $1.10 and $1.25, excluding special items. The Company also revised its full year estimate of capital expenditures to a range of $35 to $40 million. Prior estimates, which were previously announced on February 10, 2010, reflected full year net revenue between approximately $965 and $990 million and earnings per diluted share between approximately $1.41 and $1.53, excluding special items. The Company's previous estimate of capital expenditures was a range of $40 to $45 million.

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 25, 2010 to stockholders of record at the close of business on May 17, 2010.

Conference Call

Lance, Inc. has scheduled a conference call and presentation with investors at 9:00 am eastern time on Wednesday, May 5, 2010 to discuss financial results. To participate in the conference call, the dial-in number is (800) 789-3681 for U.S. callers or (702) 696-4943 for international callers. A continuous telephone replay of the call will be available between 1:00 pm on May 5th and midnight on May 12th. The replay telephone number is (800) 642-1687 for U.S. callers or (706) 645-9291 for international callers. The replay access code is 70129099. Investors may also access a web-based replay of the conference call at Lance's web site, www.lanceinc.com.

The conference call and accompanying slide presentation will be webcast live through the Investor Relations section of Lance Inc.'s website www.lanceinc.com. In addition, the slide presentation will be available to download and print approximately 30 minutes before the webcast at Lance's Investor Relations home page.

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, sandwich cookies, potato chips, crackers, cookies, other snacks, sugar wafers, nuts, restaurant style crackers and candy. Lance has manufacturing facilities in North Carolina, Iowa, Georgia, Massachusetts, Texas, Florida, Ohio and Ontario, Canada. Products are sold under the Lance, Cape Cod, Tom's, Archway, and Stella D'oro 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, a network of independent distributors and direct shipments to customer locations. Products are distributed widely through grocery and mass merchant stores, convenience stores, club stores, 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 include general economic conditions, increases in cost or availability of ingredients, packaging, energy and employees, price competition and industry consolidation, risks from large customers, ability to execute strategic initiatives, product recalls or safety concerns, disruptions of our supply chain or information technology systems, changes in consumer preferences, food industry and regulatory factors, and interest rate and foreign exchange rate risks, as well as those that have been discussed in our most recent Form 10-K filed with the Securities and Exchange Commission.


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

                                                        Quarter Ended
                                                        -------------
                                                         March       March
                                                           27,         28,
                                                            2010        2009
                                                            ----        ----

     Net revenue                                        $221,617    $215,809
     Cost of sales                                       137,868     131,413
     Gross margin                                         83,749      84,396
                                                           -----       -----

     Selling, general and administrative                  80,420      73,505
     Other expense, net                                    3,610          61
                                                            ----          --
     (Loss)/earnings before interest and income taxes       (281)     10,830

     Interest expense, net                                   860         812
                                                              --          --
     (Loss)/income before income taxes                    (1,141)     10,018

     Income tax (benefit)/expense                           (371)      3,566
                                                            ----        ----
     Net (loss)/income                                     $(770)     $6,452
                                                           =====      ======

     Basic earnings per share                             $(0.02)      $0.21
     Weighted average shares outstanding - basic      31,758,000  31,403,000

     Diluted earnings per share                           $(0.02)      $0.20
     Weighted average shares outstanding - diluted    31,758,000  32,064,000



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

                                                    March 27,  December 26,
                                                          2010         2009
                                                           ---         ----
                            ASSETS
                            ------

     Current assets:
       Cash and cash equivalents                        $5,826       $5,418
       Accounts receivable, net of allowances of
        $1,123 and $972, respectively                   87,858       87,172
       Inventories                                      53,346       58,037
       Prepaid income taxes                              7,733          238
       Deferred income taxes                             5,181        9,790
       Prepaid expenses and other current assets        17,023       18,227
     Total current assets                              176,967      178,882

     Other assets:
       Fixed assets, net of accumulated
        depreciation of $284,633 and $281,191,
        respectively                                   224,463      225,981
       Goodwill, net                                    91,797       90,909
       Other intangible assets, net                     34,976       35,154
       Other noncurrent assets                           5,700        5,365
                                                          ----         ----
         Total assets                                 $533,903     $536,291
                                                      ========     ========

             LIABILITIES AND STOCKHOLDERS' EQUITY
             ------------------------------------

     Current liabilities:
       Accounts payable                                $29,286      $29,777
       Other payables and accrued liabilities           51,901       66,589
     Total current liabilities                          81,187       96,366

     Other liabilities:
       Long-term debt                                  128,000      113,000

       Deferred income taxes                            36,896       35,515
       Other noncurrent liabilities                     16,392       16,723
                                                         -----        -----
     Total liabilities                                 262,475      261,604

     Commitments and contingencies                           -            -

     Stockholders' equity:
       Common stock, 32,160,055 and 32,093,193
        shares outstanding, respectively                26,799       26,743
       Preferred stock, no shares outstanding                -            -
       Additional paid-in capital                       62,039       60,829
       Retained earnings                               170,417      176,322
       Accumulated other comprehensive income           12,173       10,793
                                                         -----        -----
     Total stockholders' equity                        271,428      274,687
                                                        ------       ------
         Total liabilities and stockholders' equity   $533,903     $536,291
                                                      ========     ========



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

                                                           Quarter Ended
                                                           -------------
                                                     March 27,      March 28,
                                                          2010           2009
                                                          ----           ----

     Operating activities
     Net (loss)/income                                   $(770)        $6,452
       Adjustments to reconcile net income to cash
        from operating activities:
         Depreciation and amortization                   9,596          8,501
         Stock-based compensation expense                1,821          1,575
         Loss on sale of fixed assets                       54             54
         Impairment of long-lived assets                   584              -
         Changes in operating assets and liabilities   (12,819)       (20,458)
                                                       -------        -------
       Net cash used in operating activities            (1,534)        (3,876)
                                                        ------         ------

     Investing activities
       Purchases of fixed assets                        (7,605)        (5,238)
       Proceeds from sale of fixed assets                   61            206
     Net cash used in investing activities              (7,544)        (5,032)
                                                        ------         ------

     Financing activities
       Dividends paid                                   (5,134)        (5,049)
       Issuances of common stock                           748          1,734
       Repurchases of common stock                      (1,261)          (127)
       Net proceeds from existing credit facilities     15,000         14,000
     Net cash provided by financing activities           9,353         10,558
                                                          ----          -----

     Effect of exchange rate changes on cash               133             (8)
                                                            --             --

     Increase in cash and cash equivalents                 408          1,642
     Cash and cash equivalents at beginning of
      period                                             5,418            807
                                                         -----            ---
     Cash and cash equivalents at end of period         $5,826         $2,449
                                                        ======         ======

     Supplemental information:
     Cash paid for income taxes, net of refunds of
      $12 and $115, respectively                          $842           $608
     Cash paid for interest                               $831           $856



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

    Quarter Ended March 27, 2010
    ----------------------------
                                                           Per
                                           Net of       Diluted
                                           ------         Share
                                             Tax          -----
                                             ---

    Net Loss                                 $(770)       $(0.02)

       Unsuccessful bid for targeted
        acquisition*                         1,930          0.06


    Net Income, excluding special items     $1,160         $0.04


    *  Includes $930 adjustment for income tax


SOURCE Lance, Inc.

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