Snyder's-lance (LNCE) 8-K Lance Reports Third Quarter Earnings of 27 Cents Per Share

EXHIBIT 99.1

CONTACTS:

Russell G. Allen, Director – Planning & IR (704) 557-8219

Dave Perzinski — Treasurer (704) 556-5789

FOR IMMEDIATE RELEASE

LANCE REPORTS THIRD QUARTER EARNINGS OF 27 CENTS PER SHARE

ON 11% REVENUE GROWTH;

BOARD DECLARES REGULAR QUARTERLY DIVIDEND

     CHARLOTTE, NC, OCTOBER 20, 2005 — Lance, Inc. (Nasdaq: LNCE) today reported third quarter net income of $8.0 million or $0.27 per share, on a diluted basis, on net sales and other operating revenue of $171.9 million for the 13 weeks ended September 24, 2005. In the same period last year, net income was $8.0 million or $0.27 per share, on a diluted basis, on net sales and other operating revenue of $154.9 million.

     Net sales and other operating revenue increased $17.1 million, or 11%, in the third quarter from the same quarter a year ago. Branded product revenue increased $7.4 million, or 8%, compared to the prior year quarter on continued strength in sandwich cracker and salty snack sales. Non-branded product revenue increased $9.7 million, or 16%, on strength in private label product sales and sales to other manufacturers.

     During the third quarter, gross margin increased $4.4 million compared to the prior year quarter. Higher volume ($4.9 million) and improved pricing and promotions ($3.2 million) more than offset the impact of increased manufacturing costs ($3.3 million) and unfavorable product mix ($0.4 million). The manufacturing costs increase included a non-recurring $0.9 million charge for the termination of a guarantee obligation with a supplier. Gross margin as a percent of revenue declined 2.0 points primarily due to higher manufacturing costs, the termination of the guarantee obligation and changes in product mix offset by favorable pricing and promotions.

     Selling, marketing and delivery expenses increased $4.2 million during the third quarter. Delivery expenses were up $2.2 million due to higher fuel costs and increased volume. Insurance, marketing and other selling costs increased a total of $2.0 million.

     General and administrative expenses remained even with the prior year quarter. Interest expense decreased $0.2 million compared to the prior year quarter mainly due to lower debt levels.

     “We were pleased to see sales momentum remain strong during the quarter,” said David Singer, President and Chief Executive Officer. “Branded product sales continued to respond favorably to our selling efforts and stepped-up marketing initiatives. Additionally, our private label products recorded another quarter of double-digit revenue growth.”

     “I am particularly pleased with the recently announced acquisition of the assets of Tom’s Foods Inc.” Singer said. “This transaction developed quickly, and although we are continuing to develop our plans, we are confident that the combination of increased sales and operating synergies will make us a stronger business and create value for our stockholders. We are currently assessing the financial impact of this acquisition and are therefore temporarily suspending earnings estimates. We do anticipate that transition costs associated with this acquisition will dilute earnings in the fourth quarter of this year.”

     On October 18, 2005 Lance announced that it was the successful bidder for the assets of Tom’s Foods, Inc. subject to U.S. Bankruptcy Court approval of the sale. The Bankruptcy Court has now approved the sale and the closing is expected on Friday, October 21, 2005.

     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 18, 2005 to stockholders of record at the close of business on November 10, 2005.

     Lance, Inc. has scheduled a conference call discussion with investors at 9:00 a.m. eastern time on Friday, October 21, 2005 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 p.m. on October 21st and running through October 28th at midnight. The replay telephone number is (800) 642-1687. The international number is (706) 645-9291. The replay access code is 9792985. 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 28, 2005.

     Lance, Inc. manufactures and markets snack foods throughout most of the United States and other parts of North America.

     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 Forms 10-Q and 10-K 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 24, 2005			September 25, 2004
Net sales and other operating revenue	$	171,927		$	154,876
Cost of sales		95,991			83,358
Gross margin		75,936			71,518
Selling, marketing and delivery		54,782			50,569
General and administrative		7,688			7,653
Provisions for employees’ retirement plans		1,311			1,359
Other, net		(306	)		(454	)
Earnings before interest and income taxes		12,461			12,391
Interest expense, net		358			575
Earnings before income taxes		12,103			11,816
Income taxes		4,079			3,866
Net income	$	8,024		$	7,950
Earnings per share:
Basic	$	0.27		$	0.27
Diluted	$	0.27		$	0.27
Weighted average shares outstanding:
Basic		29,944,000			29,488,000
Diluted		30,242,000			29,778,000

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

	For the 39 Weeks Ended
	September 24, 2005			September 25, 2004
Net sales and other operating revenue	$	485,499		$	451,029
Cost of sales		265,161			243,789
Gross margin		220,338			207,240
Selling, marketing and delivery		162,119			152,087
General and administrative		27,015			22,512
Provisions for employees’ retirement plans		4,133			3,296
Amortization of intangibles		—			167
Other, net		(356	)		(705	)
Earnings before interest and income taxes		27,427			29,883
Interest expense, net		1,452			1,944
Earnings before income taxes		25,975			27,939
Income taxes		9,045			9,332
Net income	$	16,930		$	18,607
Earnings per share:
Basic	$	0.57		$	0.63
Diluted	$	0.56		$	0.63
Weighted average shares outstanding:
Basic		29,826,000			29,369,000
Diluted		30,112,000			29,674,000

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

	September 24, 2005		December 25, 2004		September 25, 2004
Assets:
Cash and cash equivalents	$	4,042	$	41,466	$	30,344
Accounts receivable		59,837		46,438		52,993
Inventories		28,936		23,804		26,426
Refundable income taxes		—		454		444
Deferred income tax benefit		6,905		6,243		5,991
Prepaid expenses and other		5,382		3,836		5,608
		105,102		122,241		121,806
Property plant and equipment, net		166,358		161,716		160,282
Goodwill and other intangibles, net		56,487		54,865		53,835
Other		3,596		2,918		2,816
	$	331,543	$	341,740	$	338,739
Liabilities and Equity:
Current portion of long-term debt	$	—	$	40,650	$	39,370
Accounts payable		19,212		16,346		16,130
Other current liabilities		53,010		44,961		47,572
		72,222		101,957		103,072
Long-term debt		16,000		—
Other liabilities		38,436		41,068		41,156
Stockholders’ equity		204,885		198,715		194,511
	$	331,543	$	341,740	$	338,739
Common shares outstanding at end of period		29,826,701		29,747,596		29,589,490

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

	For the 39 Weeks Ended
	September 24, 2005			September 25, 2004
Operating Activities:
Net income	$	16,930		$	18,607
Depreciation and amortization		20,154			21,434
Gain on sale of property, net		(415	)		(665	)
Deferred income taxes		(3,549	)		1,242
Imputed interest on deferred notes		—			97
Changes in operating assets and liabilities		(6,666	)		(2,006	)
Net cash flows provided by operating activities		26,454			38,709
Investing Activities:
Purchases of property and equipment		(20,518	)		(20,574	)
Acquisition of business, net of cash		(4,829	)		—
Proceeds from sale of property and equipment		1,244			1,060
Net cash used in investing activities		(24,103	)		(19,514	)
Financing Activities:
Dividends paid		(14,293	)		(14,125	)
Issuance of common stock, net		3,870			5,438
Repayments of debt		(41,237	)		(5,648	)
Proceeds from debt		16,000			—
Purchase of common stock		(3,888	)		—
Net cash used in financing activities		(39,548	)		(14,335	)
Effect of exchange rate changes on cash		(227	)		5
Increase/(decrease) in cash and cash equivalents		(37,424	)		4,865
Cash and cash equivalents at beginning of period		41,466			25,479
Cash and cash equivalents at end of period	$	4,042		$	30,344