EX-99.1 3 l32046aexv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
     On June 11, 2008, Lancaster Colony Corporation (the “Company”) sold effectively all the operating assets of its automotive accessory operations located in Des Moines, Iowa to certain members of the local management group for approximately $27.5 million in cash, subject to customary post-closing adjustments. For future financial presentation purposes, the operating results of the sold operations will be presented as discontinued operations.
     The unaudited pro forma condensed consolidated financial statements present the Company’s pro forma financial position and results of operations derived from the audited financial statements of the Company. The unaudited pro forma condensed consolidated balance sheet as of March 31, 2008, gives effect to the disposal transaction as if it occurred on March 31, 2008. The unaudited pro forma condensed consolidated statements of income for the nine months ended March 31, 2008 and the years ended June 30, 2007, 2006 and 2005 give effect to the disposal transaction as if it occurred on July 1, 2007, 2006, 2005, and 2004, respectively.
     The unaudited pro forma condensed consolidated financial statements described above should be read in conjunction with the historical financial statements and notes thereto of the Company. The unaudited pro forma financial information is not necessarily indicative of the financial position or results of operations that may have actually occurred if the disposition transaction had been consummated on the dates indicated or of the financial position or operating results that may be obtained in the future. The actual adjustments to be made to the financial statements may differ from the amounts presented herein. Assumptions underlying the pro forma adjustments are described in the following notes to the pro forma condensed consolidated financial statements and should be read in conjunction with the unaudited pro forma condensed consolidated financial statements:
     
 
a   These adjustments remove the sold operations’ financial results from the historical financial results.
 
b   This adjustment treats the proceeds on the sale as a reduction of the debt outstanding.
 
c   This adjustment of approximately $9.3 million reflects the tax impact of the loss on the sale.
 
d   This adjustment reflects the loss on the sale, as calculated using the gross sale price of approximately $35.2 million less an initial working capital adjustment of approximately $7.7 million, net of tax, at an appropriate effective tax rate. The loss calculated for this presentation is based on the March 31, 2008 value of the net assets sold and will not correspond to the ultimate loss on the sale, which is expected to approximate $20 to $22 million, pretax, pending post-closing adjustments.
 
e   This adjustment reflects a reduction in interest expense, which would result from applying the net proceeds on the sale to pay down debt. For the nine-months ended March 31, 2008 the adjustment was approximately $1,043,000, or calculated as $27.5 million at an average interest rate of 5.06% for 270 days out of 360. For the year ended June 30, 2007 the adjustment was approximately $57,000 or calculated as $27.5 million at an average interest rate of 7.39% for approximately 11 days out of 360.
 
f   This adjustment reflects the tax effect of the net increase in earnings for the reduction in interest expense.

 

 

Lancaster Colony Corporation
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of March 31, 2008
                                 
    Historical     Pro Forma             Pro Forma  
In Thousands   Balance Sheet     Adjustments             Balance Sheet  
Cash
   $ 12,252     $ (1 )     a     $ 12,251  
Net Accounts Receivable
     89,831       (26,481 )     a       63,350  
Total Inventories
     130,191       (24,169 )     a       106,022  
Deferred Income Taxes and Other Current Assets
     31,255       (606 )     a       30,649  
 
                          
Total Current Assets
     263,529       (51,257 )             212,272  
Total Net Property
     193,991       (11,520 )     a       182,471  
Goodwill
     89,590       —               89,590  
Other Assets
     19,803       (192 )     a       19,611  
 
                          
Total Assets
   $ 566,913     $ (62,969 )           $ 503,944  
 
                          
 
                                
Accounts Payable
   $ 46,463     $ (6,229 )     a     $ 40,234  
Accrued Liabilities
     42,312       (11,680 )     a,c       30,632  
 
                          
Total Current Liabilities
     88,775       (17,909 )             70,866  
Long Term Debt
     77,500       (27,500 )     b       50,000  
Deferred Income Taxes and Other Noncurrent Liabilities
     16,966       —               16,966  
 
                                
Common Stock
     82,482       —               82,482  
Ending Retained Earnings
     951,792       (17,560 )     d       934,232  
Accumulated Other Comprehensive Loss
     (4,278 )     —               (4,278 )
Treasury Stock
     (646,324 )     —               (646,324 )
 
                          
Total Shareholders’ Equity
     383,672       (17,560 )             366,112  
 
                          
Total Liabilities and Shareholders’ Equity
   $ 566,913     $ (62,969 )           $ 503,944  
 
                          
See accompanying notes to pro forma condensed consolidated financial statements.

 

 

Lancaster Colony Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Income
For the Nine Months Ended March 31, 2008
                                 
    Historical     Pro Forma             Pro Forma  
In thousands, except per share amounts   Statement of Income     Adjustments             Statement of Income  
Net Sales
   $ 861,458     $ (117,227 )     a     $ 744,231  
Cost of Sales
     728,467       (104,340 )     a       624,127  
 
                          
Gross Margin
     132,991       (12,887 )             120,104  
Selling, General and Administrative Expenses
     70,635       (8,979 )     a       61,656  
Restructuring and Impairment Charge
     182       —               182  
 
                          
Operating Income
     62,174       (3,908 )             58,266  
 
                                
Other Income
     695       1,030       a,e       1,725  
 
                                
 
                          
Income Before Income Taxes
     62,869       (2,878 )             59,991  
 
                                
Income Taxes
     22,516       (1,101 )     a,f       21,415  
 
                                
 
                          
Income From Continuing Operations
   $ 40,353     $ (1,777 )           $ 38,576  
 
                          
 
                                
Net Income Per Common Share from Continuing Operations:
                                
Basic and Diluted
   $ 1.35                     $ 1.29  
 
                                
Weighted Average Common Shares Outstanding:
                                
Basic
     29,794                       29,794  
Diluted
     29,799                       29,799  
See accompanying notes to pro forma condensed consolidated financial statements.

 

 

Lancaster Colony Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Income
For the Year Ended June 30, 2007
                                 
    Historical     Pro Forma             Pro Forma  
In thousands, except per share amounts   Statement of Income     Adjustments             Statement of Income  
Net Sales
   $ 1,091,162     $ (145,348 )     a     $ 945,814  
Cost of Sales
     897,602       (133,969 )     a       763,633  
 
                          
Gross Margin
     193,560       (11,379 )             182,181  
Selling, General and Administrative Expenses
     90,979       (11,110 )     a       79,869  
Restructuring and Impairment Charge
     2,126       —               2,126  
 
                          
Operating Income
     100,455       (269 )             100,186  
 
                                
Other Income
     1,548       (137 )     a,e       1,411  
 
 
                          
Income Before Income Taxes
     102,003       (406 )             101,597  
 
                                
Income Taxes
     37,322       (98 )     a,f       37,224  
 
 
                          
Income From Continuing Operations
   $ 64,681     $ (308 )           $ 64,373  
 
                          
 
                                
Net Income Per Common Share from Continuing Operations:
                                
Basic and Diluted
   $ 2.05                     $ 2.04  
 
                                
Weighted Average Common Shares Outstanding:
                                
Basic
     31,576                       31,576  
Diluted
     31,603                       31,603  
See accompanying notes to pro forma condensed consolidated financial statements.

 

 

Lancaster Colony Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Income
For the Year Ended June 30, 2006
                                 
    Historical     Pro Forma             Pro Forma  
In thousands, except per share amounts   Statement of Income     Adjustments             Statement of Income  
Net Sales
   $ 1,073,585     $ (149,006 )     a     $ 924,579  
Cost of Sales
     868,124       (133,378 )     a       734,746  
 
                          
Gross Margin
     205,461       (15,628 )             189,833  
Selling, General and Administrative Expenses
     90,053       (11,361 )     a       78,692  
 
                          
Operating Income
     115,408       (4,267 )             111,141  
 
                                
Other Income
     15,266       (13 )     a       15,253  
 
 
                          
Income Before Income Taxes
     130,674       (4,280 )             126,394  
 
                                
Income Taxes
     46,253       (1,534 )     a       44,719  
 
 
                          
Income From Continuing Operations
   $ 84,421     $ (2,746 )           $ 81,675  
 
                          
 
                                
Net Income Per Common Share from Continuing Operations:
                                
Basic and Diluted
   $ 2.52                     $ 2.44  
 
                                
Weighted Average Common Shares Outstanding:
                                
Basic
     33,471                       33,471  
Diluted
     33,502                       33,502  
See accompanying notes to pro forma condensed consolidated financial statements.

 

 

Lancaster Colony Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Income
For the Year Ended June 30, 2005
                                 
    Historical     Pro Forma             Pro Forma  
In thousands, except per share amounts   Statement of Income     Adjustments             Statement of Income  
Net Sales
   $ 1,028,328     $ (120,983 )     a     $ 907,345  
Cost of Sales
     823,737       (107,189 )     a       716,548  
 
                          
Gross Margin
     204,591       (13,794 )             190,797  
Selling, General and Administrative Expenses
     89,484       (11,225 )     a       78,259  
Restructuring and Impairment Charge
     935       —               935  
 
                          
Operating Income
     114,172       (2,569 )             111,603  
 
                                
Other Income
     30,047       51       a       30,098  
 
 
                          
Income Before Income Taxes
     144,219       (2,518 )             141,701  
 
                                
Income Taxes
     53,445       (965 )     a       52,480  
 
 
                          
Income From Continuing Operations
   $ 90,774     $ (1,553 )           $ 89,221  
 
                          
 
                                
Net Income Per Common Share from Continuing Operations:
                                
Basic
   $ 2.60                     $ 2.56  
Diluted
   $ 2.60                     $ 2.55  
 
                                
Weighted Average Common Shares Outstanding:
                                
Basic
     34,868                       34,868  
Diluted
     34,925                       34,925  
See accompanying notes to pro forma condensed consolidated financial statements.