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Lancaster Colony Corp. Reports Operating Results (10-Q)

February 08, 2013 | About:
10qk

10qk

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Lancaster Colony Corp. (LANC) filed Quarterly Report for the period ended 2012-12-31.

Lancaster Colony Corporation has a market cap of $1.98 billion; its shares were traded at around $72.67 with a P/E ratio of 18.6567 and P/S ratio of 1.7044. The dividend yield of Lancaster Colony Corporation stocks is 2.01%. Lancaster Colony Corporation had an annual average earning growth of 4.4% over the past 10 years.

Highlight of Business Operations:

Net sales for the three months ended December 31, 2012 increased 5% to approximately $326.2 million from the prior-year total of $311.8 million. This sales increase reflects higher sales in both operating segments. The Specialty Foods segments increase reflects higher retail and foodservice sales. The increase in sales of the Glassware and Candles segment primarily reflects higher seasonal sales. The second quarter gross margin increased 17% to approximately $81.7 million from the prior-year total of $69.9 million. The higher level of net sales and comparatively lower material costs contributed to the improved gross margin. Other income for the current-year second quarter totaled approximately $0.3 million compared to $2.7 million in the prior-year comparative period. These figures included Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) receipts totaling approximately $0.3 million in the second quarter of 2013 and approximately $2.7 million in the corresponding period of 2012. Net income for the three months ended December 31, 2012 totaled approximately $35.3 million, or $1.28 per diluted share. Net income totaled approximately $30.4 million in the second quarter of the prior year, or $1.11 per diluted share.

Year-to-date net sales for the period ended December 31, 2012 increased 5% to approximately $617.1 million from the prior-year total of $586.3 million. Gross margin increased 18% to approximately $147.4 million from the prior year-to-date total of $125.3 million. Net income for the six months ended December 31, 2012 totaled approximately $61.9 million, or $2.26 per diluted share. Net income totaled approximately $51.6 million in the six months ended December 31, 2011, or $1.89 per diluted share.

As a percentage of sales, our consolidated gross margin for the three and six months ended December 31, 2012 was 25.0% and 23.9%, respectively, as compared to 22.4% and 21.4% achieved in the prior-year comparative periods.

Consolidated selling, general and administrative costs totaled approximately $29.0 million and $54.2 million for the three and six months ended December 31, 2012, respectively, compared to the $26.1 million and $49.1 million incurred for the three and six months ended December 31, 2011. These increases were influenced by higher sales, greater personnel costs and increased costs associated with previously idled held-for-sale real estate.

Cash used in financing activities for the six months ended December 31, 2012 of approximately $156.3 million increased from the prior-year total of $26.9 million. This increase was due to higher dividend payments, including the $5.00 per share special dividend that was paid in December 2012, as partially offset by a lower level of share repurchases in the current year. The special dividend payment, which totaled in excess of $136 million, led to the decline in retained earnings since June 30, 2012 and also resulted in the decrease of Corporate assets, from that presented in the business segment information disclosed in our 2012 Annual Report on Form 10-K.

Read the The complete Report

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