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Lancaster Colony Reports First Quarter Sales And Earnings

November 4, 2019

WESTERVILLE, Ohio, Nov. 4, 2019 /PRNewswire/ -- Lancaster Colony Corporation (Nasdaq: LANC) today reported results for the company’s fiscal first quarter ended September 30, 2019. Highlights for the quarter are as follows:

CEO David A. Ciesinski commented, “We were pleased to see the uptick in Retail sales growth and continued strength in Foodservice sales resulting in a record level of consolidated net sales for our fiscal first quarter. The increased sales combined with our supply chain team’s ongoing lean six sigma program and other initiatives helped drive our consolidated gross margin up nearly 170 basis points to 27.3%.”

“Looking ahead to our fiscal second quarter, historically our biggest sales quarter of the year, we will remain focused on our core strategic initiatives to grow our base business, pursue and achieve supply chain cost savings, and continue to integrate our recent acquisitions. Our ERP initiative, Project Ascent, is also progressing as planned with our internal team fully assembled and working with our system integrator. We will pursue a ‘fit-to-standard’ approach for the design and installation of an SAP software solution with the initial deployment planned to commence in the first half of fiscal 2021.”

Conference Call on the Web

The company’s first quarter conference call is scheduled for this morning, November 4, at 10:00 a.m. ET. You may access a live webcast of the call through a link on the company’s Internet home page at www.lancastercolony.com. A replay of the webcast will also be made available on the company website.

About the Company

Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels.

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, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in the forward-looking statements. Some of the key factors that could cause actual results to differ materially from those expressed in the forward-looking statements include:

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update such forward-looking statements, except as required by law. Management believes these forward-looking statements to be reasonable; however, you should not place undue reliance on statements that are based on current expectations.

LANCASTER COLONY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(In thousands except per-share amounts)



Three Months Ended
September 30,


2019


2018

Net sales

$

337,054



$

316,654


Cost of sales

244,946



235,455


Gross profit

92,108



81,199


Selling, general & administrative expenses

39,455



32,079


Change in contingent consideration

63




Restructuring and impairment charges

886




Operating income

51,704



49,120


Other, net

1,427



1,314


Income before income taxes

53,131



50,434


Taxes based on income

12,386



11,406


Net income

$

40,745



$

39,028






Net income per common share: (a)




Basic and diluted

$

1.48



$

1.42






Cash dividends per common share

$

0.65



$

0.60






Weighted average common shares outstanding:




Basic

27,442



27,424


Diluted

27,517



27,514




(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
September 30,


2019


2018

NET SALES




Retail

$

166,077



$

162,748


Foodservice

170,977



153,906


Total Net Sales

$

337,054



$

316,654






OPERATING INCOME




Retail

$

35,435



$

33,948


Foodservice

23,789



18,861


Restructuring and Impairment Charges

(886)




Corporate Expenses

(6,634)



(3,689)


Total Operating Income

$

51,704



$

49,120


LANCASTER COLONY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)



September 30,
2019


June 30,
2019

ASSETS




Current assets:




Cash and equivalents

$

173,461



$

196,288


Receivables

91,554



75,691


Inventories

94,425



86,072


Other current assets

9,211



10,518


Total current assets

368,651



368,569


Net property, plant and equipment

280,859



247,044


Other assets

312,831



289,786


Total assets

$

962,341



$

905,399



LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

84,497



$

76,670


Accrued liabilities

52,076



43,036


Total current liabilities

136,573



119,706


Noncurrent liabilities and deferred income taxes

76,103



58,820


Shareholders' equity

749,665



726,873


Total liabilities and shareholders' equity

$

962,341



$

905,399


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SOURCE Lancaster Colony Corporation