Snyder's-lance (LNCE) 8-K Lance Reports Third Quarter Earnings of 27 Cents Per Share on 7% Revenue Growth; Board Declares Regular Quarterly Dividend

EXHIBIT 99.1

LANCE REPORTS THIRD QUARTER EARNINGS OF 27 CENTS PER SHARE ON 7% REVENUE GROWTH;
BOARD DECLARES REGULAR QUARTERLY DIVIDEND

     CHARLOTTE, NC, OCTOBER 21, 2004 — Lance, Inc. (Nasdaq: LNCE) today reported third quarter net income of $7.9 million or $0.27 per share, on a diluted basis, on net sales and other operating revenue of $154.9 million for the 13 weeks ended September 25, 2004. In the same period last year, net income was $7.6 million or $0.26 per share, on a diluted basis, on net sales and other operating revenue of $145.1 million.

     Net sales and other operating revenue increased $9.8 million, or 7%, in the third quarter from the same quarter a year ago. Non-branded revenue increased $9.1 million, or 18%, on strength in private label product sales and sales to other manufacturers. Branded product revenue increased $0.7 million, or 1%, as growth in sandwich crackers and cookies more than offset declines in cakes, meat snacks, candy and restaurant style crackers.

     During the third quarter, gross margin increased $1.4 million compared to the prior year third quarter as gains from higher volume ($5.4 million) and improved manufacturing efficiencies ($0.8 million) more than offset the impact of unfavorable mix ($2.4 million), increased promotional expense ($1.2 million) and higher net commodity and packaging costs ($1.2 million). Gross margin as a percent of revenue, however, declined 2.1 points due to a higher mix of non-branded product revenue, increased promotional allowances and higher commodity costs.

     Selling, marketing and delivery expenses rose $1.6 million during the third quarter due to volume-related increases in distribution expenses, higher fuel costs and increased incentive compensation expenses.

     General and administrative expenses increased $0.6 million from the third quarter of 2003 due to higher professional fees and incentive compensation expenses. Third quarter provisions for employees’ retirement plans, which are impacted by earnings and compensation levels, increased $0.4 million. Other income increased $0.6 million in the third quarter mainly due to gains on fixed asset disposals.

     The effective tax rate declined to 32.7% in the third quarter from 36.9% in last year’s third quarter due mainly to an increase in the utilization of tax credits and net operating loss carry-backs.

     “This was another positive quarter for us,” said Paul A. Stroup III, Chairman, President and Chief Executive Officer. “I am pleased with our effective plan execution, especially the continued progress in realigning our route sales system and maintaining the excellent momentum in private label sales. We expect a solid finish to 2004 and are encouraged as we look toward 2005.”

     The Company raised its full year 2004 earnings estimate to a range of $0.82 to $0.84 per share of common stock. Its previous estimate was $0.75 to $0.80 per share.

     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 November 19, 2004, to stockholders of record at the close of business on November 10, 2004.

     Lance, Inc. has scheduled a conference call discussion with investors at 9:00 a.m. eastern daylight time on Friday, October 22, 2004 to discuss third 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 October 22nd and running through October 29th at midnight. The replay telephone number is (800) 642-1687. The international number is (706) 645-9291. The replay access code is 307659. 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 October 29, 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
	September 25, 2004			September 27, 2003
Net sales and other operating revenue	$	154,876		$	145,063
Cost of sales		83,358			74,969
Gross margin		71,518			70,094
Selling, marketing and delivery		50,569			48,927
General and administrative		7,653			7,052
Provisions for employees’ retirement plans		1,359			915
Amortization of intangibles		—			195
Other (income)/expense, net		(454	)		155
Earnings before interest and income taxes		12,391			12,850
Interest expense, net		575			766
Earnings before income taxes		11,816			12,084
Income taxes		3,866			4,460
Net income	$	7,950		$	7,624
Earnings per share:
Basic	$	0.27		$	0.26
Diluted	$	0.27		$	0.26
Weighted average shares outstanding:
Basic		29,488,000			29,011,000
Diluted		29,778,000			29,195,000

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

	For the 39 Weeks Ended
	September 25, 2004			September 27, 2003
Net sales and other operating revenue	$	451,024		$	421,760
Cost of sales		243,784			219,788
Gross margin		207,240			201,972
Selling, marketing and delivery		152,087			148,638
General and administrative		22,511			21,235
Provisions for employees’ retirement plans		3,297			3,032
Amortization of intangibles		167			565
Loss on asset impairment		—			6,354
Other (income)/expense, net		(706	)		533
Earnings before interest and income taxes		29,884			21,615
Interest expense, net		1,945			2,298
Earnings before income taxes		27,939			19,317
Income taxes		9,332			6,938
Net income	$	18,607		$	12,379
Earnings per share:
Basic	$	0.63		$	0.43
Diluted	$	0.63		$	0.42
Weighted average shares outstanding:
Basic		29,369,000			29,011,000
Diluted		29,674,000			29,164,000

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

	September 25, 2004		December 27, 2003
Assets:
Cash and cash equivalents	$	30,344	$	25,479
Accounts receivable		52,993		41,877
Inventories		26,426		24,269
Prepaid income taxes		444		1,907
Deferred income tax benefit		5,991		9,336
Prepaid expenses and other		5,608		4,520
		121,806		107,388
Property plant and equipment, net		160,282		160,677
Goodwill and other intangibles, net		53,835		53,134
Other		2,816		2,448
	$	338,739	$	323,647
Liabilities and Equity:
Current portion of long-term debt	$	39,370	$	5,570
Accounts payable		16,130		12,003
Other current liabilities		47,572		40,487
		103,072		58,060
Long-term debt		—		38,168
Other liabilities		41,156		44,819
Stockholders’ equity		194,511		182,600
	$	338,739	$	323,647
Common shares outstanding at end of period		29,589,490		29,156,957

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

	For the 39 Weeks Ended
	September 25, 2004			September 27, 2003
Operating Activities:
Net income	$	18,607		$	12,379
Depreciation and amortization		21,434			21,897
Loss on asset impairment		—			6,354
Gain on sale of property, net		(665	)		(124	)
Deferred income taxes		1,242			(3,688	)
Imputed interest on deferred notes		97			360
Changes in operating assets and liabilities		(2,006	)		3,096
Net cash flows provided by operating activities		38,709			40,274
Investing Activities:
Purchases of property and equipment		(20,574	)		(14,140	)
Proceeds from sale of property and equipment		1,060			651
Net cash used in investing activities		(19,514	)		(13,489	)
Financing Activities:
Dividends paid		(14,125	)		(13,982	)
Issuance of common stock, net		5,438			9
Repayments of debt		(5,648	)		(59	)
Net cash used in financing activities		(14,335	)		(14,032	)
Effect of exchange rate changes on cash		5			713
Increase in cash and cash equivalents		4,865			13,466
Cash and cash equivalents at beginning of period		25,479			3,023
Cash and cash equivalents at end of period	$	30,344		$	16,489