Snyders-Lance, Inc. (LNCE) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $8.68 million, or $ 0.09 a share in the quarter, against a net profit of $7.04 million, or $0.10 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $37 million, or $0.38 a share compared with $22.26 million or $0.31 a share, a year ago. Revenue during the quarter surged 37.03 percent to $556.16 million from $405.86 million in the previous year period. Gross margin for the quarter expanded 180 basis points over the previous year period to 37.77 percent. Total expenses were 92.11 percent of quarterly revenues, down from 95.93 percent for the same period last year. This has led to an improvement of 382 basis points in operating margin to 7.89 percent.
Operating income for the quarter was $43.90 million, compared with $16.53 million in the previous year period.
However, the adjusted operating income for the quarter stood at $68.84 million compared to $38.51 million in the prior year period. At the same time, adjusted operating margin improved 289 basis points in the quarter to 12.38 percent from 9.49 percent in the last year period.
"We are proud of the significant accomplishments the Snyders-Lance team has delivered for our shareholders in 2016," said Carl E. Lee, Jr., president and chief executive officer. "In the fourth quarter alone, we grew our legacy core brands 6.1%, completed the divestiture of the Diamond of California culinary nut business and continued the integration of the remaining Diamond brands.
Snyders-Lance, Inc. forecasts revenue to be in the range of $2,250 million to $2,290 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.32 to $1.42.
Operating cash flow improves significantlySnyders-Lance, Inc. has generated cash of $261.20 million from operating activities during the year, up 78.71 percent or $115.05 million, when compared with the last year. The company has spent $1,116.86 million cash to meet investing activities during the year as against cash outgo of $44.03 million in the last year. It has incurred net capital expenditure of $74.44 million on net basis during the year, up 65.97 percent or $29.59 million from year ago.
Cash flow from financing activities was $853.01 million for the year as against cash outgo of $98.40 million in the last year period.
Cash and cash equivalents stood at $35.41 million as on Dec. 31, 2016, down 9.45 percent or $3.70 million from $39.10 million on Jan. 02, 2016.
Working capital increases sharply
Snyders-Lance, Inc. has recorded an increase in the working capital over the last year. It stood at $296.30 million as at Dec. 31, 2016, up 67.07 percent or $118.95 million from $177.35 million on Jan. 02, 2016. Current ratio was at 2 as on Dec. 31, 2016, down from 2.23 on Jan. 02, 2016.
Cash conversion cycle (CCC) has increased to 37 days for the quarter from 25 days for the last year period. Days sales outstanding went up to 27 days for the quarter compared with 15 days for the same period last year.
Days inventory outstanding has increased to 23 days for the quarter compared with 19 days for the previous year period. At the same time, days payable outstanding went up to 13 days for the quarter from 9 for the same period last year.
Debt increases substantially
Snyders-Lance, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,294.96 million as on Dec. 31, 2016, up 240.03 percent or $914.12 million from $380.84 million on Jan. 02, 2016. Total debt was 33.77 percent of total assets as on Dec. 31, 2016, compared with 20.95 percent on Jan. 02, 2016. Debt to equity ratio was at 0.69 as on Dec. 31, 2016, up from 0.34 as on Jan. 02, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
