Snyder's-lance (LNCE) 8-K Financial statements and exhibits

EXHIBIT 99.1

LANCE REPORTS EARNINGS OF 13 CENTS PER SHARE IN FIRST QUARTER
 
ON 8% REVENUE GROWTH;
 
BOARD DECLARES REGULAR QUARTERLY DIVIDEND

     CHARLOTTE, NC, April 22, 2004 — Lance, Inc. (Nasdaq: LNCE) today reported first quarter net income of $4.0 million or $0.13 per share, on a diluted basis, on net sales and other operating revenue of $144.1 million for the 13 weeks ended March 27, 2004. For the same period last year, Lance, Inc. incurred a net loss of $3.1 million or $0.10 per share on net sales and other operating revenue of $132.9 million.

     First quarter 2003 results included pre-tax charges of $8.4 million from discontinuing distribution of mini-sandwich crackers through the Company’s route sales system and severance costs of $1.1 million. These charges reduced the prior year’s first quarter earnings by $0.20 per share.

     Net sales and other operating revenue increased 8% in the first quarter from the same quarter a year ago. Non-branded revenues increased 29% on continued private label strength. Branded product revenues declined 2% compared to last year as higher nut sales were more than offset by lower sales of meat snacks, cakes, mini-sandwich crackers and candy.

     During the first quarter, gross margin increased $3.2 million from the prior year quarter. First quarter 2003 gross margin was reduced $2.1 million due to charges for the mini-sandwich cracker discontinuation and severance. Other factors affecting gross margin were higher volume ($3.6 million), increased selling prices ($1.4 million) and improved packaging costs ($1.0 million) which more than offset the impact of unfavorable mix ($2.8 million) and higher commodity costs ($1.8 million).

     Selling, marketing and delivery expenses declined $0.4 million during the first quarter as lower employee benefit and casualty costs ($0.9 million), reduced volume-based commissions ($0.8 million) and decreases in other expenses more than offset increased freight expenses ($0.9 million) and higher incentive costs ($0.7 million). General and administrative expenses decreased $0.4 million from the same quarter last year due mainly to lower severance provisions.

     Other expenses improved $0.4 million from the same quarter last year due mainly to gains on fixed asset dispositions. In the first quarter of 2003, the Company recorded a $6.4 million loss on the impairment of fixed assets for the discontinuation of the mini-sandwich cracker product line.

     “We are off to a solid start in 2004 as non-branded sales performance remained exceptionally strong”, said Paul A. Stroup III, Chairman, President and Chief Executive Officer. “We faced significant commodity cost pressures during the quarter and do not expect near-term relief. However, our company-wide cost control efforts allowed us to keep earnings momentum going. Despite challenges, our route sales system realignment is moving forward and remains our top priority.”

     The Company raised its full year 2004 earnings estimate to a range of $0.70 to $0.80 per share of common stock.

     The Board of Directors declared a regular quarterly cash dividend of $0.16 per share on the Company’s common stock. The dividend is payable on May 20, 2004, to stockholders of record at the close of business on May 10, 2004.

     Lance, Inc. has scheduled a conference call discussion with investors at 9:00 a.m. eastern daylight time on Friday, April 23, 2004 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 noon on April 23rd and running through April 30, 2004 at midnight. The replay telephone number is (800) 642-1687. The international number is (706) 645-9291. The replay access code is 6436901. 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 through April 30, 2004.

     Lance, Inc., manufactures and markets snack foods throughout most of the United States and Canada.

     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, raw material costs, food industry factors, effectiveness of sales and marketing activities and interest rate, foreign exchange rate and credit risks, are discussed in the Company’s 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)

		For the Quarter (13 Weeks) Ended
		March 27, 2004			March 29, 2003
Net sales and other operating revenue		$	144,096		$	132,859
Cost of sales			79,122			71,038
Gross margin			64,974			61,821
Selling, marketing and delivery			50,018			50,436
General and administrative			7,400			7,771
Provisions for employees’ retirement plans			819			1,080
Amortization of intangibles			167			178
Loss on asset impairment			—			6,354
Other (income) expense, net			(200	)		170
Earnings (loss) before interest and income taxes			6,770			(4,168	)
Interest expense, net			763			683
Earnings (loss) before income taxes			6,007			(4,851	)
Income taxes (benefit)			2,024			(1,801	)
Net income (loss)		$	3,983		$	(3,050	)
Earnings (loss) per share:
	Basic	$	0.14		$	(0.10	)
	Diluted	$	0.13		$	(0.10	)
Weighted average shares outstanding:
	Basic		29,186,000			29,099,000
	Diluted		29,754,000			29,147,000

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

	March 27, 2004		December 27, 2003
Assets:
Cash and cash equivalents	$	21,678	$	25,479
Accounts receivable		50,819		42,653
Inventories		23,114		24,269
Prepaid income taxes		1,157		1,907
Deferred income tax benefit		8,204		9,336
Prepaid expenses and other		4,501		3,727
		109,473		107,371
Property plant and equipment, net		160,180		160,677
Goodwill and other intangibles, net		52,403		52,814
Other		3,140		2,785
	$	325,196	$	323,647
Liabilities and Equity:
Current portion of long-term debt	$	5,625	$	5,570
Accounts payable		13,654		12,059
Other current liabilities		36,763		40,431
		56,042		58,060
Long-term debt		37,879		38,168
Other liabilities		44,673		44,819
Stockholders’ equity		186,602		182,600
	$	325,196	$	323,647
Common shares outstanding at end of period		29,483,465		29,156,957

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

	For the 13 Weeks Ended
	March 27, 2004			March 29, 2003
Operating Activities:
Net income	$	3,983		$	(3,050	)
Depreciation and amortization		8,071			7,361
Loss on asset impairment		—			6,354
(Gain) loss on sale of property, net		(221	)		21
Deferred income taxes		380			(5,073	)
Imputed interest on deferred notes		97			77
Changes in operating assets and liabilities		(8,981	)		4,042
Net cash flows provided by operating activities		3,329			9,732
Investing Activities:
Purchases of property and equipment		(7,104	)		(5,946	)
Proceeds from sale of property and equipment		462			24
Net cash used in investing activities		(6,642	)		(5,922	)
Financing Activities:
Dividends paid		(4,672	)		(4,657	)
Issuance of common stock, net		4,202			—
Repayments of debt		—			(30	)
Net cash used in financing activities		(470	)		(4,687	)
Effect of exchange rate changes on cash		(18	)		215
Increase (decrease) in cash and cash equivalents		(3,801	)		(662	)
Cash and cash equivalents at beginning of period		25,479			3,023
Cash and cash equivalents at end of period	$	21,678		$	2,361