Snyder's-Lance Updates Full Year 2011 Guidance; Expects 2011 EPS $0.75-$0.90 vs. $0.95 Est

Snyder's-Lance, Inc. LNCE today announced that, based on current information and market conditions impacting its private brand products, it expects diluted earnings per share for the full year 2011 to be in a range of $0.75 to $0.90, excluding special items. The Company's previous guidance, announced May 5, 2011, estimated full year 2011 EPS to be in the range of $0.85 to $1.00, excluding special items, on a fully diluted basis. The primary driver for the decline in guidance is lower profit margins for the Company's private brand products, resulting primarily from a lag in pricing realization compared to the cost of commodities. The Company also currently estimates that diluted EPS for second quarter ended July 2, 2011 to be in the range of $0.15 to $0.17, excluding special items. Additionally, the Company expects to record a charge for the second quarter 2011 totaling approximately $15 million after taxes, including non-cash expenses related to the impairment of transportation equipment and severance expenses. These charges relate to the conversion of the Company's Direct Store Delivery (DSD) system to an independent operator model, consistent with the integration plan following the merger with Snyder's of Hanover, Inc. The Company expects that second quarter 2011 EPS, including special items, will be a loss in the range of ($0.05) to ($0.07). The Company believes that the gains from the sale of routes in the next few quarters will more than offset the cash and non-cash charges taken in the second quarter 2011. The Company's branded product revenues have been solid, showing year over year increases of about 3.5%. Furthermore, the Company stated that the overall integration of Snyder's-Lance is on track, with significant progress made to date, and is expected to be completed by mid-year 2012 as previously announced. A more thorough review of integration, including details on the conversion of Company owned DSD routes to an independent operator model, will be provided during the Company's next quarterly earnings call in early August 2011. The specific date and time for the next quarterly earnings call will be announced in a separate press release. Non-GAAP Financial Measures and Additional Information