Lancaster Colony Corp. (LANC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Lancaster Colony Corp. has a market cap of $1.49 billion; its shares were traded at around $52.76 with a P/E ratio of 12.38 and P/S ratio of 1.42. The dividend yield of Lancaster Colony Corp. stocks is 2.27%.LANC is in the portfolios of Donald Yacktman of Yacktman Asset Management Co., Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
Year-to-date net sales for the period ended March 31, 2010 increased 1% to approximately $808.6 million from the prior year-to-date total of $798.1 million. Gross margin increased to approximately $210.4 million from the prior year-to-date total of $150.5 million. Net income for the nine months ended March 31, 2010 totaled approximately $92.2 million, or $3.27 per diluted share. Net income totaled approximately $60.7 million, or $2.16 per diluted share, in the nine months ended March 31, 2009.
In March 2010, we announced a recall of a limited number of veggie and chip dip food products after being notified by one of our suppliers, Basic Food Flavors, Inc., of a recall of an ingredient used in our products due to potential salmonella contamination. We recorded costs of approximately $0.5 million related to this recall in the three months ended March 31, 2010. We estimate the total costs of the recall will be approximately $1.9 million. We expect reimbursement of certain costs incurred over our deductible from our insurance carrier and thus have recorded a receivable of approximately $1.4 million at March 31, 2010.
Consolidated selling, general and administrative costs of approximately $24.3 million and $69.2 million for the three and nine months ended March 31, 2010, respectively, increased by 21% and 11%, respectively, from the $20.2 million and $62.3 million incurred in the corresponding periods of the prior year. Increased costs in consumer-directed marketing initiatives to support retail sales and increased professional fees within the Specialty Foods segment contributed to the overall increase.
During the three and nine months ended March 31, 2010, we recorded restructuring charges of approximately $0.1 million (less than $0.1 million after taxes) and $2.3 million ($1.5 million after taxes), respectively, including approximately $0.2 million recorded in Cost of Sales for the write-down of inventories. The remaining charges consisted of one-time termination benefits, a pension curtailment charge and other various closing costs. Cash expenditures for the three and nine months ended March 31, 2010 were approximately $0.1 million and $1.8 million, respectively, and were for the one-time termination benefits and other closing costs.
During fiscal 2007, we initiated our plan to close our industrial glass operation located in Lancaster, Ohio. During the nine months ended March 31, 2009, we recorded additional restructuring and impairment charges of approximately $0.8 million ($0.5 million after taxes) within corporate expenses for costs incurred during the period. The total costs associated with this plant closure totaled approximately $5.7 million. This closure was essentially complete at September 30, 2008. We do not currently expect other significant restructuring costs related to this closure.
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Lancaster Colony Corp. has a market cap of $1.49 billion; its shares were traded at around $52.76 with a P/E ratio of 12.38 and P/S ratio of 1.42. The dividend yield of Lancaster Colony Corp. stocks is 2.27%.LANC is in the portfolios of Donald Yacktman of Yacktman Asset Management Co., Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Net sales for the third quarter ended March 31, 2010 increased 2% to approximately $250.3 million from the prior-year total of $246.0 million. This sales growth was driven by a 16% 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 18% to approximately $61.9 million from the prior-year third quarter total of $52.6 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. Net income for the three months ended March 31, 2010 totaled approximately $24.2 million, or $.86 per diluted share. Net income totaled approximately $21.2 million, or $.76 per diluted share, in the third quarter of 2009.Year-to-date net sales for the period ended March 31, 2010 increased 1% to approximately $808.6 million from the prior year-to-date total of $798.1 million. Gross margin increased to approximately $210.4 million from the prior year-to-date total of $150.5 million. Net income for the nine months ended March 31, 2010 totaled approximately $92.2 million, or $3.27 per diluted share. Net income totaled approximately $60.7 million, or $2.16 per diluted share, in the nine months ended March 31, 2009.
In March 2010, we announced a recall of a limited number of veggie and chip dip food products after being notified by one of our suppliers, Basic Food Flavors, Inc., of a recall of an ingredient used in our products due to potential salmonella contamination. We recorded costs of approximately $0.5 million related to this recall in the three months ended March 31, 2010. We estimate the total costs of the recall will be approximately $1.9 million. We expect reimbursement of certain costs incurred over our deductible from our insurance carrier and thus have recorded a receivable of approximately $1.4 million at March 31, 2010.
Consolidated selling, general and administrative costs of approximately $24.3 million and $69.2 million for the three and nine months ended March 31, 2010, respectively, increased by 21% and 11%, respectively, from the $20.2 million and $62.3 million incurred in the corresponding periods of the prior year. Increased costs in consumer-directed marketing initiatives to support retail sales and increased professional fees within the Specialty Foods segment contributed to the overall increase.
During the three and nine months ended March 31, 2010, we recorded restructuring charges of approximately $0.1 million (less than $0.1 million after taxes) and $2.3 million ($1.5 million after taxes), respectively, including approximately $0.2 million recorded in Cost of Sales for the write-down of inventories. The remaining charges consisted of one-time termination benefits, a pension curtailment charge and other various closing costs. Cash expenditures for the three and nine months ended March 31, 2010 were approximately $0.1 million and $1.8 million, respectively, and were for the one-time termination benefits and other closing costs.
During fiscal 2007, we initiated our plan to close our industrial glass operation located in Lancaster, Ohio. During the nine months ended March 31, 2009, we recorded additional restructuring and impairment charges of approximately $0.8 million ($0.5 million after taxes) within corporate expenses for costs incurred during the period. The total costs associated with this plant closure totaled approximately $5.7 million. This closure was essentially complete at September 30, 2008. We do not currently expect other significant restructuring costs related to this closure.
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