Snyder's-Lance, Inc.
Jul 22, 2010

Lance, Inc. Reports Strong Results for Second Quarter 2010

CHARLOTTE, N.C., July 22, 2010 /PRNewswire via COMTEX News Network/ --

Lance, Inc. (Nasdaq: LNCE) today reported net revenue for the second quarter ended June 26, 2010 of $235.4 million, a slight decline from its prior year second quarter net revenue of $236.4 million. The Company's branded product net revenue, which represented about 60% of total net revenue in the 2010 second quarter, increased approximately 1% from the second quarter of 2009. This increase was on top of exceptionally strong revenue in the same quarter last year. Sales of branded products to dollar stores, mass merchandisers and distributors increased compared to the same quarter last year due to the acquisition of Stella D'oro, new product offerings and growth of existing products with new and established customers. These gains were largely offset by volume declines in certain channels, including convenience stores, up-and-down the street customers, and food service establishments, and higher promotional costs compared to last year's second quarter.

The Company's non-branded product net revenue decreased approximately 2% in the 2010 second quarter, where single digit growth from private brands product sales, was more than offset by lower contract manufacturing revenues caused by the elimination of a short term contract.

Lance realized second quarter 2010 net income of $14.4 million excluding special items, or $0.44 per diluted share, as compared to second quarter 2009 net income of $9.5 million, or $0.30 per diluted share. Special items recognized during the second quarter of 2010 consisted of after-tax expenses of $2.1 million associated with severance and other termination costs related to the workforce reduction announced in June. Including the special items identified above, second quarter 2010 net income was $12.3 million, or $0.38 per diluted share.

Net revenue for the six months ended June 26, 2010 totalled $457.0 million, an increase of approximately 1% compared with the same period in the prior year. For the first six months of 2010, net income excluding special items was $15.6 million, or $0.48 per diluted share, compared to net income of $16.0 million, or $0.50 per diluted share, for the first six months of the prior year. The special items recognized during the first six months of 2010 consisted of $2.1 million of after-tax expenses related to the workforce reduction and professional fees in the second quarter, as well as $2.0 million of after-tax expenses associated with an unsuccessful bid for a targeted acquisition in the first quarter.

Comments from Management

"We are very pleased to be reporting such a strong second quarter," commented David V. Singer, President and Chief Executive Officer. "Solid sales, focused expense control and continuing efficiency gains drove these outstanding results, and are a direct result of the focus and teamwork on the part of everyone at Lance. Both our DSD and Supply Chain networks delivered solid performance this quarter, as foundational changes implemented over the past several years continue to pay off. After a disappointing first quarter, I'm very pleased that we are back on track to achieve our goals and deliver results."

Mr. Singer concluded, "Throughout the remainder of this year, we will remain focused on profitably growing our total business, while moving forward to finalize the recently announced merger with Snyder's of Hanover. This merger allows us to create a stronger company that creates value for our shareholders with a broad line of leading snack food brands supported by a strong national DSD system. I am very pleased to have strong forward momentum from our second quarter as we look forward to the merger of these two great companies."

Company 2010 Estimates Updated

The Company narrowed its earnings per diluted share estimate to a range of $1.15 to $1.25, excluding special items. The Company also reaffirmed its previously announced full year 2010 net revenue estimate range of $930 to $950 million. Capital expenditures are expected to be between $35 and $40 million for the year.

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 August 10, 2010 to stockholders of record at the close of business on August 2, 2010.

Conference Call

Lance, Inc. has scheduled a conference call and presentation with investors at 9:00 am eastern time on Thursday, July 22, 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 July 22nd and midnight on July 29th. The replay telephone number is (800) 642-1687 for U.S. callers or (706) 645-9291 for international callers. The replay access code is 88141916. Investors may also access a web-based replay of the conference call at Lance's web site,

The conference call and accompanying slide presentation will be webcast live through the Investor Relations section of Lance Inc.'s website 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.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements which may be forward looking within the meaning of applicable securities laws. The statements relate to the future expectations, plans and prospects related to the proposed merger with Snyder's of Hannover, Inc. and 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. Risks and uncertainties relating to the proposed merger include the risks that: (1) the parties will not obtain the requisite shareholder or regulatory approvals for the transaction; (2) the anticipated benefits of the transaction will not be realized; (3) the parties may not be able to retain key personnel; (4) the conditions to the closing of the proposed merger may not be satisfied or waived; and (5) the outcome of any legal proceedings to the extent initiated against Lance, Inc. or Snyder's of Hanover, Inc. or their respective directors and officers following the announcement of the proposed merger is uncertain. These risks, as well as other risks associated with the merger, will be more fully discussed in the joint proxy statement/prospectus that will be included in the Registration Statement on Form S-4 to be filed by Lance, Inc. with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise publicly any forward-looking statement whether as a result of new information, future developments or otherwise.

Important Information for Investors and Stockholders

This press release discusses the proposed merger between Lance, Inc. and Snyder's of Hanover, Inc. that will become the subject of a registration statement, which will include a joint proxy statement/prospectus, to be filed by Lance, Inc. with the SEC. This press release is not a substitute for the joint proxy statement/prospectus that Lance, Inc. will file with the SEC or any other document that Lance, Inc. may file with the SEC or Lance, Inc. or Snyder's of Hanover, Inc. may send to its stockholders in connection with the proposed merger. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC OR SENT TO SHAREHOLDERS, INCLUDING THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS THAT WILL BE PART OF THE REGISTRATION STATEMENT ON FORM S-4, AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. All documents, when filed, will be available in the case of Lance, Inc., free of charge at the SEC's website ( or by directing a request to Lance, Inc. through Dee Noon, assistant to the CFO, at 704-557-5727 and, in the case of Snyder's of Hanover, Inc. by directing a request to John Bartman, VP of Human Resources, at 717-632-4477 ext 8802

Participants in the Solicitation

Snyder's of Hanover, Inc., Lance, Inc. and their respective directors and executive officers may be deemed under the rules of the SEC to be participants in the solicitation of proxies from the stockholders of Lance, Inc. A list of the names of those directors and executive officers and descriptions of their interests in Lance, Inc. and Snyder's of Hannover, Inc. will be contained in the joint proxy statement/prospectus which will be filed by Lance, Inc. with the SEC. Stockholders may obtain additional information about the interests of the directors and executive officers in the proposed transaction by reading the joint proxy statement/prospectus when it becomes available.

                                      LANCE, INC.
                   (in thousands, except share and per-share amounts)

                                  Quarter Ended        Six Months Ended
                                  -------------        ----------------
                                 June 26,   June 27,   June 26,   June 27,
                                       2010       2009       2010       2009
                                       ----       ----       ----       ----

    Net revenue                    $235,417   $236,355   $457,034   $452,163
    Cost of sales                   138,180    139,630    276,048    271,042
    Gross margin                     97,237     96,725    180,986    181,121
                                     ------     ------    -------    -------

    Selling, general and
     administrative                  77,682     80,473    158,101    153,977
    Other expense, net                  174        547      3,785        608
                                        ---        ---      -----        ---
    Earnings before interest and
     income taxes                    19,381     15,705     19,100     26,536

    Interest expense, net               862        910      1,722      1,722
                                        ---        ---      -----      -----
    Income before income taxes       18,519     14,795     17,378     24,814

    Income tax expense                6,245      5,267      5,874      8,834
                                      -----      -----      -----      -----
    Net income                      $12,274     $9,528    $11,504    $15,980
                                    =======     ======    =======    =======

    Basic earnings per share          $0.38      $0.30      $0.36      $0.51
    Weighted average shares
     outstanding - basic         31,978,000 31,552,000 31,868,000 31,477,000

    Diluted earnings per share        $0.38      $0.30      $0.36      $0.50
    Weighted average shares
     outstanding - diluted       32,502,000 32,293,000 32,370,000 32,163,000

                                      LANCE, INC.
                                    (in thousands)

                                                           June 26,     26,
                                                                 2010     2009
                                                                 ----      ---

    Current assets:
      Cash and cash equivalents                                $7,015   $5,418
      Accounts receivable, net of allowances of $1,274 and
       $972, respectively                                      92,401   87,172
      Inventories                                              56,209   58,037
      Prepaid income taxes                                      3,466      238
      Deferred income taxes                                     5,701    9,790
      Prepaid expenses and other current assets                13,258   18,227
    Total current assets                                      178,050  178,882

    Other assets:
      Fixed assets, net of accumulated depreciation of
       $290,454 and $281,191, respectively                    220,168  225,981
      Goodwill, net                                            91,464   90,909
      Other intangible assets, net                             34,798   35,154
      Other noncurrent assets                                   5,807    5,365
                                                                -----    -----
        Total assets                                         $530,287 $536,291
                                                             ======== ========


    Current liabilities:
      Accounts payable                                        $29,738  $29,777
      Other payables and accrued liabilities                   56,007   66,589
    Total current liabilities                                  85,745   96,366

    Other liabilities:
      Long-term debt                                          116,000  113,000

      Deferred income taxes                                    37,237   35,515
      Other noncurrent liabilities                             14,470   16,723
                                                               ------   ------
    Total liabilities                                         253,452  261,604

    Commitments and contingencies                                   -        -

    Stockholders' equity:
      Common stock, 32,409,886 and 32,093,193 shares
       outstanding, respectively                               27,007   26,743
      Preferred stock, no shares outstanding                        -        -
      Additional paid-in capital                               60,750   60,829
      Retained earnings                                       177,511  176,322
      Accumulated other comprehensive income                   11,567   10,793
                                                               ------   ------
    Total stockholders' equity                                276,835  274,687
                                                              -------  -------
        Total liabilities and stockholders' equity           $530,287 $536,291
                                                             ======== ========

                                  LANCE, INC.
                                 (in thousands)

                                                     Six Months Ended
                                                    June 26,    June 27,
                                                          2010        2009
                                                          ----        ----

    Operating activities
    Net income                                         $11,504     $15,980
      Adjustments to reconcile net income to cash
       provided by operating activities:
        Depreciation and amortization                   19,188      17,162
        Stock-based compensation expense                 3,609       3,512
        Provision for doubtful accounts                    508         952
        Loss on sale of fixed assets                       195         189
        Impairment of long-lived assets                    584           -
        Changes in operating assets and liabilities    (12,675)    (17,487)
                                                       -------     -------
      Net cash provided by operating activities         22,913      20,308
                                                        ------      ------

    Investing activities
      Purchases of fixed assets                        (13,220)    (14,592)
      Proceeds from sale of fixed and intangible
       assets                                              224         462
      Proceeds from sale of assets held for sale         1,843           -
    Net cash used in investing activities              (11,153)    (14,130)
                                                       -------     -------

    Financing activities
      Dividends paid                                   (10,314)    (10,158)
      Issuances of common stock                          1,720       2,158
      Repurchases of common stock and restricted
       stock units                                      (4,668)       (127)
      Net proceeds from existing credit facilities       3,000       5,000
    Net cash used in financing activities              (10,262)     (3,127)
                                                       -------      ------

    Effect of exchange rate changes on cash                 99         150
                                                           ---         ---

    Increase in cash and cash equivalents                1,597       3,201
    Cash and cash equivalents at beginning of
     period                                              5,418         807
                                                         -----         ---
    Cash and cash equivalents at end of period          $7,015      $4,008
                                                        ======      ======

    Supplemental information:
    Cash paid for income taxes, net of refunds of
     $22 and $154, respectively                         $2,885      $3,702
    Cash paid for interest                              $1,689      $1,818

                            LANCE, INC.
             (in thousands, except per-share amounts)

    Quarter Ended June 26, 2010
                                           Net of          Diluted
                                             Tax            Share
                                             ---            -----

    Net Income                               $12,274          $0.38

       Employee termination costs from
        workforce reduction                    2,165           0.06

    Net Income, excluding special
     items                                   $14,439          $0.44

    *  Quarter includes $1,101 adjustment for income tax

    Six Months Ended June 26, 2010
                                           Net of          Diluted
                                             Tax            Share
                                             ---            -----

    Net Income                               $11,504          $0.36

       Employee termination costs from
        workforce reduction                    2,162           0.06
       Unsuccessful bid for targeted
        acquisition                            1,930           0.06

    Net Income, excluding special
     items                                   $15,596          $0.48

    *  Six month period includes $2,034 adjustment for income tax

SOURCE Lance, Inc.

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