Le Lézard
Classified in: Business, Covid-19 virus
Subjects: ERN, CCA, ERP

Lancaster Colony Reports Fourth Quarter and Fiscal Year Results


WESTERVILLE, Ohio, Aug. 27, 2020 /PRNewswire/ -- Lancaster Colony Corporation (Nasdaq: LANC) today reported results for the fourth quarter and fiscal year ended June 30, 2020.  Highlights are as follows:

Fourth Quarter Results

Fiscal Year Results

Fiscal 2020 Commentary

CEO David A. Ciesinski stated, "I would first of all like to thank the entire Lancaster Colony team for the tremendous effort they have put forth and the resilience they have shown through this most challenging and unprecedented time as we confront the impacts of the COVID-19 pandemic.  From the front-line workers at our plants and distribution centers to the leaders throughout our business, I am extremely proud of the way we have collectively pulled together to meet the shifting demands of our Retail and Foodservice customers while staying true to our top priority, the health, safety and welfare of our team members."

"We were very pleased to finish the fiscal year with record sales in the Retail segment, positive momentum in the Foodservice segment and record gross profit.  Despite all the challenges imposed by the impacts of COVID-19, our supply chain team navigated through the shifts in demand with safe operations and continued to deliver cost savings as we completed the fiscal year."

Fiscal 2021 Outlook

Mr. Ciesinski continued, "Looking ahead to fiscal 2021, Retail sales will continue to benefit from the growth in shelf-stable dressings and sauces sold under license agreements, including sales gains for Chick-fil-A® sauces beyond the successful pilot test, expanded distribution of Buffalo Wild Wings® sauces in single bottles and added growth in the dollar and value channels for Olive Garden® dressings.  We also anticipate sales for both our Retail and Foodservice segments will continue to be impacted by the shifts in consumer demand resulting from the COVID-19 pandemic, the extent to which is unpredictable and contingent upon the future spread or control of COVID-19 and the resulting effects on consumer behavior."

"Based on our current assessment, following a year in which overall commodity costs were notably favorable, we anticipate a rise in commodity costs for fiscal 2021.  The cost savings programs currently underway or planned for implementation by our supply chain team, in addition to favorable net price realization, will help to offset increased commodity costs in the coming year.  We will also continue to make the necessary investments to help protect the health and safety of all our team members and follow the guidelines of government health authorities in response to the COVID-19 pandemic."

Conference Call on the Web

The company's fourth quarter and fiscal year-end conference call is scheduled for this morning, August 27, 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 and could be amplified by the COVID-19 pandemic, 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 
June 30,


Fiscal Year Ended 
June 30,


2020


2019


2020


2019

Net sales

$

320,854



$

323,670



$

1,334,388



$

1,307,787


Cost of sales

231,777



245,460



976,352



981,589


Gross profit

89,077



78,210



358,036



326,198


Selling, general & administrative expenses

48,836



39,909



180,945



149,811


Change in contingent consideration

65



(6,663)



257



(16,180)


Restructuring and impairment charges

?



1,643



886



1,643


Operating income

40,176



43,321



175,948



190,924


Other, net

98



936



3,129



4,618


Income before income taxes

40,274



44,257



179,077



195,542


Taxes based on income

9,889



11,247



42,094



44,993


Net income

$

30,385



$

33,010



$

136,983



$

150,549










Net income per common share: (a)








Basic

$

1.10



$

1.20



$

4.98



$

5.48


Diluted

$

1.10



$

1.20



$

4.97



$

5.46










Cash dividends per common share

$

0.70



$

0.65



$

2.75



$

2.55










Weighted average common shares outstanding:








Basic

27,449



27,444



27,448



27,438


Diluted

27,478



27,520



27,496



27,537




(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 
June 30,


Fiscal Year Ended 
June 30,


2020


2019


2020


2019

NET SALES








Retail

$

192,426



$

154,533



$

714,127



$

656,621


Foodservice

128,428



169,137



620,261



651,166


Total Net Sales

$

320,854



$

323,670



$

1,334,388



$

1,307,787










OPERATING INCOME








Retail

$

38,761



$

32,278



$

142,822



$

135,093


Foodservice

10,090



18,438



66,480



73,828


Restructuring and Impairment Charges

?



(1,643)



(886)



(1,643)


Corporate Expenses

(8,675)



(5,752)



(32,468)



(16,354)


Total Operating Income

$

40,176



$

43,321



$

175,948



$

190,924


 

LANCASTER COLONY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)



June 30,
2020


June 30,
2019

ASSETS




Current assets:




Cash and equivalents

$

198,273



$

196,288


Receivables

86,604



75,691


Inventories

85,048



86,072


Other current assets

15,687



10,518


Total current assets

385,612



368,569


Net property, plant and equipment

293,288



247,044


Other assets

314,453



289,786


Total assets

$

993,353



$

905,399


LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

71,433



$

76,670


Accrued liabilities

54,826



43,036


Total current liabilities

126,259



119,706


Noncurrent liabilities and deferred income taxes

83,794



58,820


Shareholders' equity

783,300



726,873


Total liabilities and shareholders' equity

$

993,353



$

905,399


 

SOURCE Lancaster Colony Corporation


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