Snyders Lance, Inc. (LNCE) swung to a net profit for the quarter ended Apr. 01, 2017. The company has made a net profit of $11.16 million, or $ 0.11 a share in the quarter, against a net loss of $25.43 million, or $0.32 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $13.19 million, or $0.13 a share compared with $20.79 million or $0.26 a share, a year ago. Revenue during the quarter grew 18.67 percent to $531.50 million from $447.87 million in the previous year period. Gross margin for the quarter expanded 281 basis points over the previous year period to 34.76 percent. Operating margin for the quarter period stood at positive 4.50 percent as compared to a negative 6.10 percent for the previous year period.
Operating income for the quarter was $23.93 million, compared with an operating loss of $27.31 million in the previous year period.
However, the adjusted operating income for the quarter stood at $28.01 million compared to $36.10 million in the prior year period. At the same time, adjusted operating margin contracted 279 basis points in the quarter to 5.27 percent from 8.06 percent in the last year period.
"As we noted in the announcement of our preliminary first quarter results, our Company faced difficult challenges during the quarter that impacted our financial results," said Brian J. Driscoll, Interim chief executive officer of Snyder's Lance. "We are moving aggressively to take action. Our organization has already begun to coalesce around a set of priorities and actions designed to unlock substantial profitability across the Company while sharply expanding our gross margins, over time. We expect these actions to significantly improve our financial performance and deliver long-term sustainable value for our shareholders."
For fiscal year 2017, Snyders Lance, Inc. forecasts revenue to be in the range of $2,200 million to $2,250 million. It expects diluted earnings per share to be in the range of $1.05 to $1.20 for the same period.
Operating cash flow improves marginally
Snyders Lance, Inc. has generated cash of $30.64 million from operating activities during the quarter, up 3.92 percent or $1.16 million, when compared with the last year period. Cash flow from investing activities was $107.25 million for the quarter as against cash outgo of $1,032.11 million in the last year period. It has incurred capital expenditure of $13.25 million on net basis during the quarter, up 10.90 percent or $1.30 million from year ago period.
The company has spent $153.55 million cash to carry out financing activities during the quarter as against cash inflow of $1,003.38 million in the last year period.
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