Lancaster Colony Corp. (LANC, Financial) filed Quarterly Report for the period ended 2009-12-31.
Lancaster Colony Corp. has a market cap of $1.53 billion; its shares were traded at around $54.29 with a P/E ratio of 13.1 and P/S ratio of 1.5. The dividend yield of Lancaster Colony Corp. stocks is 2.1%.LANC is in the portfolios of Donald Yacktman of Yacktman Asset Management Co., Chuck Royce of ROYCE & ASSOCIATES, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC.
Year-to-date net sales for the period ended December 31, 2009 increased 1% to approximately $558.3 million from the prior year-to-date total of $552.1 million. Gross margin increased to approximately $148.5 million from the prior year-to-date total of $97.8 million. Net income for the six months ended December 31, 2009 totaled approximately $67.9 million, or $2.41 per diluted share. Net income totaled approximately $39.5 million in the six months ended December 31, 2008, or $1.40 per diluted share.
Consolidated selling, general and administrative costs of approximately $24.4 million and $44.9 million for the three and six months ended December 31, 2009 increased by 11% and 6%, respectively, from the $21.9 million and $42.2 million incurred for the three and six months ended December 31, 2008. The higher sales in 2010 contributed to the overall increase as did greater investment in brand marketing initiatives within the Specialty Foods segment.
During the three and six months ended December 31, 2009, we recorded restructuring charges of approximately $1.3 million ($0.9 million after taxes) and $2.2 million ($1.5 million after taxes), respectively, including approximately $0.1 million and $0.2 million recorded in Cost of Sales for the write-down of inventories during the three and six months ended December 31, 2009, respectively. The remaining charges consisted of one-time termination benefits, a pension curtailment charge and other various closing costs. Cash expenditures for the three and six months ended December 31, 2009 were approximately $1.7 million and were for the one-time termination benefits and other closing costs.
As impacted by the factors discussed above, income before income taxes for the three months ended December 31, 2009 increased by approximately $16.1 million to $60.1 million from the prior-year total of $44.0 million. Income before income taxes for the six months ended December 31, 2009 and 2008 was approximately $102.5 million and $61.4 million, respectively. Our effective tax rate of 33.7% for the six months ended December 31, 2009 decreased from the prior-year rate of 35.7%. This decrease reflected, in part, a favorable resolution of certain previously-reserved state and local tax matters in 2010, as further discussed in Note 9 to the consolidated financial statements.
Second quarter net income for 2010 of approximately $39.5 million increased from the preceding years net income for the quarter of $28.5 million, as influenced by the factors noted above. Year-to-date net income of approximately $67.9 million was higher than the prior year-to-date total of $39.5 million. Net income per share for the second quarter of 2010 totaled $1.40 per basic and diluted share, as compared to $1.02 per basic and diluted share recorded in the prior year. Year-to-date net income per share was $2.41 per basic and diluted share, as compared to $1.40 per basic and diluted share for the prior-year period.
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Lancaster Colony Corp. has a market cap of $1.53 billion; its shares were traded at around $54.29 with a P/E ratio of 13.1 and P/S ratio of 1.5. The dividend yield of Lancaster Colony Corp. stocks is 2.1%.LANC is in the portfolios of Donald Yacktman of Yacktman Asset Management Co., Chuck Royce of ROYCE & ASSOCIATES, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Net sales for the second quarter ended December 31, 2009 increased 6% to approximately $304.1 million from the prior-year total of $288.2 million. This sales growth was driven by a 42% increase in sales of the Glassware and Candles segment, as partially offset by a slight decrease in sales of the Specialty Foods segment. Gross margin increased 46% to approximately $84.8 million from the prior-year second quarter total of $58.2 million. Lower raw-material costs, a more favorable sales mix in the Specialty Foods segment and the benefits of higher candle sales contributed to the higher gross margins. Other income for the current-year second quarter totaled approximately $0.9 million compared to $7.8 million in the prior-year comparative period. These figures included Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) receipts totaling approximately $0.9 million in the second quarter of 2010 and approximately $8.7 million in the corresponding period of 2009. Net income for the three months ended December 31, 2009 totaled approximately $39.5 million, or $1.40 per diluted share. Net income totaled approximately $28.5 million in the second quarter of 2009, or $1.02 per diluted share.Year-to-date net sales for the period ended December 31, 2009 increased 1% to approximately $558.3 million from the prior year-to-date total of $552.1 million. Gross margin increased to approximately $148.5 million from the prior year-to-date total of $97.8 million. Net income for the six months ended December 31, 2009 totaled approximately $67.9 million, or $2.41 per diluted share. Net income totaled approximately $39.5 million in the six months ended December 31, 2008, or $1.40 per diluted share.
Consolidated selling, general and administrative costs of approximately $24.4 million and $44.9 million for the three and six months ended December 31, 2009 increased by 11% and 6%, respectively, from the $21.9 million and $42.2 million incurred for the three and six months ended December 31, 2008. The higher sales in 2010 contributed to the overall increase as did greater investment in brand marketing initiatives within the Specialty Foods segment.
During the three and six months ended December 31, 2009, we recorded restructuring charges of approximately $1.3 million ($0.9 million after taxes) and $2.2 million ($1.5 million after taxes), respectively, including approximately $0.1 million and $0.2 million recorded in Cost of Sales for the write-down of inventories during the three and six months ended December 31, 2009, respectively. The remaining charges consisted of one-time termination benefits, a pension curtailment charge and other various closing costs. Cash expenditures for the three and six months ended December 31, 2009 were approximately $1.7 million and were for the one-time termination benefits and other closing costs.
As impacted by the factors discussed above, income before income taxes for the three months ended December 31, 2009 increased by approximately $16.1 million to $60.1 million from the prior-year total of $44.0 million. Income before income taxes for the six months ended December 31, 2009 and 2008 was approximately $102.5 million and $61.4 million, respectively. Our effective tax rate of 33.7% for the six months ended December 31, 2009 decreased from the prior-year rate of 35.7%. This decrease reflected, in part, a favorable resolution of certain previously-reserved state and local tax matters in 2010, as further discussed in Note 9 to the consolidated financial statements.
Second quarter net income for 2010 of approximately $39.5 million increased from the preceding years net income for the quarter of $28.5 million, as influenced by the factors noted above. Year-to-date net income of approximately $67.9 million was higher than the prior year-to-date total of $39.5 million. Net income per share for the second quarter of 2010 totaled $1.40 per basic and diluted share, as compared to $1.02 per basic and diluted share recorded in the prior year. Year-to-date net income per share was $2.41 per basic and diluted share, as compared to $1.40 per basic and diluted share for the prior-year period.
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