Lancaster Colony Reports Fiscal Year And Fourth Quarter Results

The following excerpt is from the company's SEC filing.

COLUMBUS, Ohio, Aug. 22 –Lancaster Colony Corporation (Nasdaq: LANC) today reported these highlights for the company’s fiscal year ended June 30, 2013:

  •   Net income increased 14 percent to $109.2 million or $3.99 per diluted share, compared to the prior-year’s net income of $95.8 million, or $3.51 per diluted share. Pretax income associated with second quarter distributions under the Continued Dumping and Subsidy Offset Act amounted to $0.3 million (approximately one cent per share after taxes) in fiscal 2013 and $2.7 million (approximately six cents per share after taxes) in fiscal 2012.

  •   The quarterly cash dividend was increased for the 50th consecutive year. A $5 per share special dividend was also paid this past December.

  •   Specialty Foods net sales totaled $245.2 million, off one percent from the prior-year’s record fourth quarter total, reflecting slightly lower volumes and higher levels of coupon redemption costs. The prior-year’s fourth quarter retail volumes benefited from an unusually strong level of new product introduction not repeated in this year’s fourth quarter. Segment operating income declined seven percent to $38.9 million from $42.0 million a year ago primarily due to increased investments in consumer-driven marketing and promotional costs. In 2012, these costs were more skewed to earlier in the fiscal year. The prior-year’s fourth quarter income also included approximately $1 million in vendor recoveries associated with a fiscal 2010 product recall. The impact of material cost and pricing between quarters was not significant.

  •   In its seasonally weakest quarter, Glassware and Candles sales of $24.1 million declined six percent from year-ago levels. The segment’s operating income of $0.2 million compared to an operating loss of $0.2 million in 2012. The quarter’s results reflected an improved sales mix, but also a loss on sale of approximately $0.4 million from exiting certain product lines, including glass drinkware, sold into commercial channels.

  •   Fourth quarter net income totaled $25.5 million, or $.93 per diluted share, versus the year-ago net income of $26.0 million, or $.95 per diluted share. Quarterly income taxes for 2013 included the after-tax benefit of approximately $0.7 million from the release of reserves associated with uncertain tax positions.

Chairman and CEO John B. Gerlach, Jr. said, “While our fourth quarter results reflected challenging comparisons to a strong year-ago quarter, we were pleased with the year’s solid growth in sales and net income. Both of our operating segments achieved full-year improvements in net sales and operating income with recent product introductions helping to push Specialty Foods net sales over the $1 billion mark for the first time. Specialty Foods results also reflected modest improvement in both pricing and material costs.”

Mr. Gerlach added, “We are optimistic about fiscal 2014 as driven by anticipated growth in Specialty Foods. This improvement is expected through added volumes from several newer retail and foodservice programs, as well as through further market expansion of certain key product lines. We also foresee the potential for modestly favorable material cost comparisons as we move later into the fiscal year. Glassware and Candles sales and operating income are expected to be challenged by weaker customer demand and lower production levels. We believe our strong and flexible balance sheet supports our future growth potential, including appropriate food-related business investments and acquisitions.”

The company’s fiscal year and fourth quarter conference call is scheduled for this morning, August 22, at 10:00 a.m. ET. You may access the call through a live webcast by using the link provided on the company’s Internet home page at www.lancastercolony.com. Replays of the webcast will be made available on the company website.

Lancaster Colony Corporation is a diversified manufacturer and marketer of consumer products focusing primarily on specialty foods for the retail and foodservice markets.

  •   risks related to other factors described under “Risk Factors” in other reports and statements filed by us with the Securities and Exchange Commission, including without limitation our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q (available at www.sec.gov).

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update such forward-looking statements, except as required by law. Management believes these forward-looking statements to be reasonable; however, you should not place undue reliance on such statements that are based on current expectations.

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.

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