New book by Larry Connors Click here Improve your trading - See how
-- Net sales increased seven percent to $1,051 million versus $981 million
last year.
-- Income from continuing operations was $89,086,000, compared to
$48,439,000 earned in the preceding fiscal year. Diluted earnings per
share from continuing operations were $3.18 compared to $1.64 a year
ago. Fiscal 2009 results included pretax income of $8.7 million (20
cents per share after taxes) associated with a second quarter
distribution under the Continued Dumping and Subsidy Offset Act (CDSOA).
In fiscal 2008, the pretax CDSOA distribution was $2.5 million (five
cents per share after taxes), and pretax income of approximately $1.7
million (four cents per share after taxes) was also recognized from a
fourth-quarter adjustment of self-insured general liability insurance to
reflect favorable claims development for prior years. Fiscal 2008
results also included a pretax loss on the November 2007 sale of
consumer and floral glass operations totaling $6.4 million (14 cents per
share after taxes) and a pretax noncash pension settlement charge of
$3.0 million (seven cents per share after taxes).
-- Net income totaled $89.1 million or $3.18 per diluted share. Prior year
net income totaled $37.6 million, or $1.28 per diluted share, after a
loss from discontinued operations of $10.8 million, or $.37 per diluted
share, which included a net loss of $13.5 million on the sale of
automotive operations.
-- The cash dividend was increased for the 46th consecutive year, and
496,000 shares were repurchased at a cost of approximately $17 million.
-- The balance sheet remained strong with no debt outstanding compared to
$55 million a year ago. The company's $160 million unsecured
revolving credit facility was unused and fully available.
Fourth Quarter Results
Highlights of the fourth quarter ended June 30, 2009 included the following:
-- Net sales increased seven percent to $253 million versus $237 million in
the year ago quarter.
-- Specialty Foods sales were up seven percent to a record $226.8 million,
as both retail and foodservice sales posted increases. This growth was
mostly generated by higher pricing and stronger retail volumes, which
benefited from new products and a later Easter this year. Segment
operating income more than doubled to a record $46.8 million, reflecting
increased sales, a higher retail sales mix and lower raw-material costs.
-- Glassware and Candles sales increased five percent to $26.6 million
primarily due to higher candle sales to the mass market. The
segment's quarterly operating loss improved to $0.9 million from
$3.5 million a year ago and reflected higher sales, due in part to
higher pricing. Increased input and production costs mitigated the
extent of improvement. Prior-year results included pretax restructuring
costs for idled glass operations of $1.1 million (two cents per share
after taxes).
-- Income from continuing operations totaled $28,401,000. The 2008 fourth
quarter income from continuing operations was $10,516,000 and included
pretax income pertaining to self-insured reserves for general liability
insurance of approximately $1.7 million (four cents per share after
taxes) reflecting more favorable claims experience than originally
projected for prior years. Diluted earnings per share from continuing
operations were $1.01 compared to 37 cents a year ago.
-- Fourth quarter net income totaled $28.4 million, or $1.01 per diluted
share, versus the year ago net loss of $2.6 million, or $.09 per diluted
share, after a loss from discontinued operations of $13.1 million, or
$.46 per diluted share, which included a $13.3 million loss on the sale
of automotive operations.
Chairman and CEO John B. Gerlach, Jr. said, "Similar to the third quarter, we continued to see favorable trends in the fourth quarter that allowed our Specialty Foods segment's operating margin percentages to return closer to historical levels. We were also pleased with the fourth quarter upswing in candle sales, which we believe acknowledges our ability to deliver a high-quality selection of value-priced products."
Fiscal 2009 Commentary
Mr. Gerlach said, "For the year, Specialty Foods drove our improved overall performance, with the segment's improved profitability from higher sales volumes and pricing actions partially offset by an overall increase in material costs. Efforts undertaken during fiscal 2008 and 2007 to exit various automotive and glass manufacturing operations now appear quite timely given the economic challenges that have evolved. Our consolidated financial results have substantially benefited from our heightened focus on the food business."
Fiscal 2010 Commentary
Mr. Gerlach continued, "We enter the new fiscal year optimistic about our prospects for improved consolidated operating margins, despite the challenges of a weaker and less-settled economy. Much of this improvement is expected to be derived from lower material costs anticipated during the first half of the fiscal year. We believe we are well-positioned, both financially and with our customers, to seize opportunities in the ever-evolving market for consumer products."
Conference Call on the Web
The company's fiscal year and fourth quarter conference call is scheduled for this morning, August 20, 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.
About the Company
Lancaster Colony Corporation is a diversified manufacturer and marketer of consumer products focusing primarily on specialty foods for the retail and foodservice markets.
Forward-Looking Statements
We desire to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). This news release contains various "forward-looking statements" within the meaning of the PSLRA and other applicable securities laws. Such statements can be identified by the use of the forward-looking words "anticipate," "estimate," "project," "believe," "intend," "plan," "expect," "hope" or similar words. These statements discuss future expectations; contain projections regarding future developments, operations or financial conditions; or state other forward-looking information. Such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, expected future developments; and other factors we believe to be appropriate. These forward-looking statements involve various important risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed in the forward-looking statements. Actual results may differ as a result of factors over which we have no, or limited, control. 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. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update such forward-looking statements. More detailed statements regarding significant events that could affect our financial results are included in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission and are available on our website at www.lancastercolony.com.
LANCASTER COLONY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands except per-share amounts)
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009 2008 2009 2008
Net sales $ 253,385 $ 236,684 $ 1,051,491 $ 980,915
Cost of sales 188,367 199,459 835,999 823,574
Gross margin 65,018 37,225 215,492 157,341
Selling, general &
administrative expenses 21,905 19,095 84,238 80,751
Restructuring and impairment
charges - 1,071 1,606 1,253
Operating income 43,113 17,059 129,648 75,337
Interest expense (23) (531) (1,217) (3,076)
Interest income and other
- net 10 180 8,575 3,407
Income from continuing
operations before
income taxes 43,100 16,708 137,006 75,668
Taxes based on income 14,699 6,192 47,920 27,229
Income from continuing
operations 28,401 10,516 89,086 48,439
Income from discontinued
operations - 203 - 2,633
Loss on sale of discontinued
operations - (13,293) - (13,452)
Total discontinued operations,
net of tax - (13,090) - (10,819)
Net income (loss) $ 28,401 $ (2,574) $ 89,086 $ 37,620
Net income (loss)per
common share:(a)
Continuing operations -
basic and diluted $ 1.01 $ .37 $ 3.18 $ 1.64
Discontinued operations -
basic and diluted $ - $ (.46) $ - $ (.37)
Net income (loss) -
basic and diluted $ 1.01 $ (.09) $ 3.18 $ 1.28
Cash dividends per common
share $ .285 $ .28 $ 1.135 $ 1.11
Weighted average common
shares outstanding:
Basic 27,990 28,596 28,033 29,494
Diluted 28,028 28,598 28,051 29,499
(a) Based on the weighted average number of shares outstanding during
each period.
LANCASTER COLONY CORPORATION
BUSINESS SEGMENT INFORMATION (Unaudited)
(In thousands)
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009 2008 2009 2008
NET SALES
Specialty Foods $ 226,824 $ 211,319 $ 909,897 $ 808,507
Glassware and Candles 26,561 25,365 141,594 172,408
$ 253,385 $ 236,684 $1,051,491 $ 980,915
OPERATING INCOME (LOSS)
Specialty Foods $ 46,798 $ 22,531 $ 145,848 $ 88,975
Glassware and Candles (875) (3,482) (5,671) (1,887)
Corporate expenses (2,810) (1,990) (10,529) (11,751)
$ 43,113 $ 17,059 $ 129,648 $ 75,337
LANCASTER COLONY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
June 30, June 30,
2009 2008
ASSETS
Current assets:
Cash and equivalents $ 38,484 $ 19,417
Receivables net of allowance for
doubtful accounts 61,152 59,409
Total inventories 102,523 120,303
Deferred income taxes and other
current assets 20,653 34,545
Total current assets 222,812 233,674
Net property, plant and equipment 170,900 179,573
Other assets 104,769 106,931
Total assets $ 498,481 $ 520,178
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 41,180 $ 45,964
Accrued liabilities 33,399 42,785
Total current liabilities 74,579 88,749
Long-term debt - 55,000
Other noncurrent liabilities and
deferred income taxes 21,346 17,211
Shareholders' equity 402,556 359,218
Total liabilities and
shareholders' equity $ 498,481 $ 520,178
SOURCE Lancaster Colony Corporation
http://www.lancastercolony.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.