How Did Snyder’s-Lance Perform in 4Q15 and 2015?
Yesterday’s Consumer Pops and Drops: LKQ, CPB, LNCE, VGR, and ATR
Price movement of Snyder’s-Lance
Snyder’s-Lance (LNCE) has a market cap of $2.3 billion. LNCE rose by 1.1% to close at $32.71 per share on February 29, 2016. Its price movements on weekly, monthly, and YTD (year-to-date) bases are 6.9%, 6.7%, and -4.1%, respectively.
Currently, LNCE is trading 8.2% above its 20-day moving average, 0.65% below its 50-day moving average, and 1.9% below its 200-day moving average.
The iShares Russell 2000 Value ETF (IWN) invests 0.17% of its holdings in LNCE. The ETF tracks an index of US small-cap value stocks. The YTD price movement of IWN was -5.8% as of February 26, 2016. The iShares Russell 2000 ETF (IWM) invests 0.08% of its holdings in LNCE. The ETF tracks a market-cap-weighted index of US small-cap stocks.
The market caps of Snyder’s-Lance’s competitors are as follows:
Mondelēz International (MDLZ) – $63.6 billion
J&J Snack Foods (JJSF) – $2.1 billion
Snyder’s-Lance acquires Diamond Foods
Snyder’s-Lance has completed the acquisition of Diamond Foods. It has acquired all outstanding shares of Diamond Foods in a cash and stock merger transaction. Diamond Foods stockholders receive 0.78 Snyder’s-Lance shares and $12.50 in cash per share of Diamond Foods.
This acquisition will create an international snack food company with a diversified product portfolio. It affirmed annualized synergies from cost savings of $75 million, with ~$10 million to be reinvested in the company’s growth plans.
Performance of Snyder’s-Lance in 4Q15 and 2015
Snyder’s-Lance reported fiscal 4Q15 net revenue of $405.9 million, a fall of 7.5% from the $439.0 million of fiscal 4Q14. It reported the sale of route businesses of $545.0 million in fiscal 4Q15, compared with -$329.0 million in fiscal 4Q14.
Its net income and EPS (earnings per share) fell to $7.0 million and $0.10, respectively, in fiscal 4Q15, compared with $26.3 million and $0.37, respectively, in fiscal 4Q14.
Fiscal 2015 results
In fiscal 2015, LNCE reported net revenues of $1.7 billion, a rise of 2.2% YoY (year-over-year). It reported settlements of litigations of $5.7 million in fiscal 2015. Its net income and EPS fell to $50.7 million and $0.71, respectively, in fiscal 2015, compared with $192.6 million and $2.72, respectively, in fiscal 2014.
Meanwhile, its cash and cash equivalents rose by 10.6% and its inventories fell by 4.5% in fiscal 2015. Its current ratio and debt-to-equity ratio fell to 2.22x and 0.64x, respectively, in fiscal 2015, compared with $2.24x and 0.70x, respectively, in fiscal 2014.
The PE (price-to-earnings) and PBV (price-to-book value) ratios of Snyder’s-Lance were 33.0x and 2.1x, respectively, as of February 29, 2016. Continue to the next part of this series for a look at Vector Group.
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