Snyder's-lance (LNCE) 8-K Lance Reports Earnings of 22 Cents Per Share In Second Quarter; Board Declares Regular Quarterly Dividend

EXHIBIT 99.1

LANCE REPORTS EARNINGS OF 22 CENTS PER SHARE IN SECOND QUARTER;
BOARD DECLARES REGULAR QUARTERLY DIVIDEND

     CHARLOTTE, NC, JULY 22, 2004 — Lance, Inc. (Nasdaq: LNCE) today reported second quarter net income of $6.7 million or $0.22 per share, on a diluted basis, on net sales and other operating revenue of $152.1 million for the 13 weeks ended June 26, 2004. In the same period last year, net income was $7.8 million or $0.27 per share, on a diluted basis, on net sales and other operating revenue of $143.6 million.

     Net sales and other operating revenue increased $8.4 million, or 6%, in the second quarter from the same quarter a year ago. Non-branded revenue increased $7.8 million, or 15%, reflecting strong growth in private label products and sales to other manufacturers. Branded product revenue increased $0.6 million compared to last year, as growth in sandwich crackers, nuts and salty snacks more than offset declines in meat snacks, cakes, restaurant style crackers and candy.

     During the second quarter, gross margin increased $0.8 million compared to the prior year quarter, as gains from increased volume ($3.7 million) and improved manufacturing efficiencies ($1.0 million) more than offset net unfavorable commodity and packaging costs ($2.1 million) and unfavorable mix ($1.6 million). Gross margin as a percent of revenue, however, declined 2.2 points due to increased commodity costs and a higher mix of non-branded product revenue.

     Selling, marketing and delivery expenses increased $2.2 million during the second quarter due to increased incentive compensation ($0.8 million), freight charges ($0.7 million) and advertising expenses ($0.7 million).

     General and administrative expenses increased $1.2 million from the prior year due to higher incentive compensation provisions. The increase reflects the improvement in the full-year financial outlook.

     “Revenue performance was encouraging during the quarter”, said Paul A. Stroup III, Chairman, President and Chief Executive Officer. “Non-branded sales growth remained strong and we were pleased with the stability of branded sales while continuing the route sales system realignments. Intense commodity cost pressures continued in the quarter, but we stayed with our plan of increasing marketing spending and strengthening our route sales system.”

     The Company’s full year 2004 earnings estimate is a range of $0.75 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 August 20, 2004, to stockholders of record at the close of business on August 10, 2004.

     Lance, Inc. has scheduled a conference call discussion with investors at 9:00 a.m. eastern daylight time on Friday, July 23, 2004 to discuss second 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 July 23rd and running through July 30th at midnight. The replay telephone number is (800) 642-1687. The international number is (706) 645-9291. The replay access code is 8320515. 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 July 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-Q filed with the Securities and Exchange Commission.

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

		For the Quarter (13 Weeks) Ended
		June 26, 2004			June 28, 2003
Net sales and other operating revenue		$	152,064		$	143,647
Cost of sales			81,176			73,593
Gross margin			70,888			70,054
Selling, marketing and delivery			51,254			49,023
General and administrative			7,861			6,666
Provisions for employees’ retirement plans			1,113			1,031
Amortization of intangibles			—			192
Other (income)/expense, net			(52	)		209
Earnings before interest and income taxes			10,712			12,933
Interest expense, net			596			849
Earnings before income taxes			10,116			12,084
Income taxes			3,442			4,280
Net income		$	6,674		$	7,804
Earnings per share:
	Basic	$	0.23		$	0.27
	Diluted	$	0.22		$	0.27
Weighted average shares outstanding:
	Basic		29,432,000			29,134,000
	Diluted		29,751,000			29,208,000

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

		For the 26 Weeks Ended
		June 26, 2004			June 28, 2003
Net sales and other operating revenue		$	296,160		$	276,506
Cost of sales			160,298			144,633
Gross margin			135,862			131,873
Selling, marketing and delivery			101,272			99,459
General and administrative			15,261			14,437
Provisions for employees’ retirement plans			1,932			2,111
Amortization of intangibles			167			370
Loss on asset impairment			—			6,354
Other (income)/expense, net			(252	)		379
Earnings before interest and income taxes			17,482			8,763
Interest expense, net			1,359			1,532
Earnings before income taxes			16,123			7,231
Income taxes			5,466			2,479
Net income		$	10,657		$	4,752
Earnings per share:
	Basic	$	0.36		$	0.16
	Diluted	$	0.36		$	0.16
Weighted average shares outstanding:
	Basic		29,309,000			29,116,000
	Diluted		29,636,000			29,254,000

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

	June 26, 2004		December 27, 2003
Assets:
Cash and cash equivalents	$	21,817	$	25,479
Accounts receivable		51,141		42,653
Inventories		26,771		24,269
Prepaid income taxes		667		1,907
Deferred income tax benefit		8,275		9,336
Prepaid expenses and other		4,508		3,727
		113,179		107,371
Property plant and equipment, net		159,686		160,677
Goodwill and other intangibles, net		51,694		52,814
Other		2,915		2,785
	$	327,474	$	323,647
Liabilities and Equity:
Current portion of long-term debt	$	—	$	5,570
Accounts payable		15,341		12,059
Other current liabilities		42,891		40,431
		58,232		58,060
Long-term debt		37,037		38,168
Other liabilities		42,653		44,819
Stockholders’ equity		189,552		182,600
	$	327,474	$	323,647
Common shares outstanding at end of period		29,540,526		29,156,957

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

	For the 26 Weeks Ended
	June 26, 2004			June 28, 2003
Operating Activities:
Net income	$	10,657		$	4,752
Depreciation and amortization		15,074			14,838
Loss on asset impairment		—			6,354
Gain on sale of property, net		(326	)		(167	)
Deferred income taxes		(831	)		(5,369	)
Imputed interest on deferred notes		97			162
Changes in operating assets and liabilities		(4,492	)		2,077
Net cash flows provided by operating activities		20,179			22,647
Investing Activities:
Purchases of property and equipment		(14,426	)		(10,716	)
Proceeds from sale of property and equipment		620			439
Net cash used in investing activities		(13,806	)		(10,277	)
Financing Activities:
Dividends paid		(9,393	)		(9,316	)
Issuance of common stock, net		4,926			—
Repayments of debt		(5,648	)		(55	)
Net cash used in financing activities		(10,115	)		(9,371	)
Effect of exchange rate changes on cash		80			595
Increase (decrease) in cash and cash equivalents		(3,662	)		3,594
Cash and cash equivalents at beginning of period		25,479			3,023
Cash and cash equivalents at end of period	$	21,817		$	6,617