LANCASTER COLONY CORP - FORM 8-K - EX-99.2 - January 30, 2014

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8-K - FORM 8-K - LANCASTER COLONY CORPcandle-litesale8xk.htm
EX-2.1 - EX-2.1 - LANCASTER COLONY CORPcandle-litexassetpurchasea.htm
EX-99.1 - EX-99.1 - LANCASTER COLONY CORPcandlelitesalerelease.htm


 
 
 
 
Exhibit 99.2


UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

On January 30, 2014, Lancaster Colony Corporation announced that it had sold effectively all of the net operating assets of its candle manufacturing and marketing operations to an affiliate of Centre Lane Partners, LLC, a New York private investment firm for approximately $28 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 pro forma financial position and results of operations derived from the audited financial statements for the periods ended June 30, 2013, 2012 and 2011 and the unaudited financial statement for the period ended September 30, 2013. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2013, gives effect to the disposal transaction as if it occurred on September 30, 2013. The unaudited pro forma condensed consolidated statements of income for the three months ended September 30, 2013 and the years ended June 30, 2013, 2012 and 2011 give effect to the disposal transaction as if it occurred on July 1, 2013, 2012, 2011 and 2010, respectively.
The unaudited pro forma condensed consolidated financial statements described above should be read in conjunction with the historical financial statements and notes thereto. 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 footnotes 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
Includes an adjustment of $27 million for the proceeds from the sale.
c
Includes an adjustment of approximately $18.6 million for 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 $25 million plus an initial working capital adjustment of approximately $3 million, less approximately $1.3 in estimated transaction related closing costs, net of tax, at an appropriate effective tax rate. The loss calculated for this presentation is based on the September 30, 2013 value of the net assets sold and will not correspond to the ultimate loss on the sale, which is expected to approximate $43 to $45 million, pretax, pending post-closing adjustments.








Lancaster Colony Corporation
 
 
 
 
 
Unaudited Pro Forma Condensed Consolidated Balance Sheet
 
 
 
 
As of September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
In Thousands
 
 
 
 
 
 
Historical Balance Sheet
 
Pro Forma Adjustments
 
Pro Forma Balance Sheet
Cash
$
133,075

 
$
26,684

a,b
$
159,759

Net Accounts Receivable
82,890

 
(28,173
)
a
54,717

Total Inventories
113,047

 
(38,618
)
a
74,429

Deferred Income Taxes and Other Current Assets
18,360

 
11,979

a,c
30,339

    Total Current Assets
347,372

 
(28,128
)
 
319,244

Total Net Property
186,997

 
(21,274
)
a
165,723

Goodwill
89,840

 
—

 
89,840

Other Assets
14,271

 
(1,210
)
a
13,061

    Total Assets
$
638,480

 
$
(50,612
)
 
$
587,868

 
 
 
 
 
 
Accounts Payable
$
41,772

 
$
(4,751
)
a
$
37,021

Accrued Liabilities
41,789

 
(8,558
)
a,c
33,231

    Total Current Liabilities
83,561

 
(13,309
)
 
70,252

Long Term Debt
—

 
—

 
—

Deferred Income Taxes and Other
 
 
 
 
 
      Noncurrent Liabilities
42,053

 
—

 
42,053

 
 
 
 
 
 
Common Stock
103,282

 
—

 
103,282

Ending Retained Earnings
1,153,087

 
(37,303
)
d
1,115,784

Accumulated Other Comprehensive Loss
(8,324
)
 
—

 
(8,324
)
Treasury Stock
(735,179
)
 
—

 
(735,179
)
Total Shareholders' Equity
512,866

 
(37,303
)
 
475,563

    Total Liabilities and Shareholders' Equity
$
638,480

 
$
(50,612
)
 
$
587,868

 
 
 
 
 
 
See accompanying notes to pro forma condensed consolidated financial statements.
 
 
 
 
 
 
 
 





Lancaster Colony Corporation
 
 
 
 
 
Unaudited Pro Forma Condensed Consolidated Statement of Income
 
 
 
For the Three Months Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
In thousands, except per share amounts
 
 
 
 
 
 
Historical Statement of Income
 
Pro Forma Adjustments
 
Pro Forma Statement of Income
Net Sales
$
285,856

 
$
(37,719
)
a
$
248,137

Cost of Sales
224,218

 
(33,252
)
 a
190,966

   Gross Margin
61,638

 
(4,467
)
 
57,171

Selling, General and Administrative Expenses
24,038

 
(3,298
)
 a
20,740

    Operating Income
37,600

 
(1,169
)
 
36,431

Other Income
(48
)
 
10

 a
(38
)
    Income Before Income Taxes
37,552

 
(1,159
)
 
36,393

Income Taxes
12,751

 
(410
)
 a
12,341

    Income From Continuing Operations
$
24,801

 
$
(749
)
 
$
24,052

 
 
 
 
 
 
Net Income Per Common Share from
 
 
 
 
 
  Continuing Operations:
 
 
 
 
 
Basic and Diluted
$
0.91

 
 
 
$
0.88

 
 
 
 
 
 
Weighted Average Common Shares Outstanding:
 
 
 
 
 
Basic
27,268

 
 
 
27,268

Diluted
27,312

 
 
 
27,312

 
 
 
 
 
 
See accompanying notes to pro forma condensed consolidated financial statements.
 
 
 
 
 
 
 
 





Lancaster Colony Corporation
 
 
 
 
 
Unaudited Pro Forma Condensed Consolidated Statement of Income
 
 
 
For the Twelve Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
In thousands, except per share amounts
 
 
 
 
 
 
Historical Statement of Income
 
Pro Forma Adjustments
 
Pro Forma Statement of Income
Net Sales
$
1,165,909

 
$
(152,106
)
a
$
1,013,803

Cost of Sales
898,800

 
(129,704
)
 a
769,096

   Gross Margin
267,109

 
(22,402
)
 
244,707

Selling, General and Administrative Expenses
105,203

 
(14,419
)
 a
90,784

    Operating Income
161,906

 
(7,983
)
 
153,923

Other Income
77

 
(182
)
 a
(105
)
    Income Before Income Taxes
161,983

 
(8,165
)
 
153,818

Income Taxes
52,734

 
(2,776
)
 a
49,958

    Income From Continuing Operations
$
109,249

 
$
(5,389
)
 
$
103,860

 
 
 
 
 
 
Net Income Per Common Share from
 
 
 
 
 
  Continuing Operations:
 
 
 
 
 
Basic
$
4.00

 
 
 
$
3.80

Diluted
$
3.99

 
 
 
$
3.79

 
 
 
 
 
 
Weighted Average Common Shares Outstanding:
 
 
 
 
 
Basic
27,252

 
 
 
27,252

Diluted
27,285

 
 
 
27,285

 
 
 
 
 
 
See accompanying notes to pro forma condensed consolidated financial statements.
 
 
 
 
 
 
 
 





Lancaster Colony Corporation
 
 
 
 
 
Unaudited Pro Forma Condensed Consolidated Statement of Income
 
 
 
For the Twelve Months Ended June 30, 2012
 
 
 
 
 
 
 
 
 
 
 
In thousands, except per share amounts
 
 
 
 
 
 
Historical Statement of Income
 
Pro Forma Adjustments
 
Pro Forma Statement of Income
Net Sales
$
1,131,359

 
$
(142,422
)
a
$
988,937

Cost of Sales
891,248

 
(125,739
)
 a
765,509

   Gross Margin
240,111

 
(16,683
)
 
223,428

Selling, General and Administrative Expenses
96,824

 
(14,578
)
 a
82,246

    Operating Income
143,287

 
(2,105
)
 
141,182

Other Income
2,744

 
(2,710
)
 a
34

    Income Before Income Taxes
146,031

 
(4,815
)
 
141,216

Income Taxes
50,223

 
(1,356
)
 a
48,867

    Income From Continuing Operations
$
95,808

 
$
(3,459
)
 
$
92,349

 
 
 
 
 
 
Net Income Per Common Share from
 
 
 
 
 
  Continuing Operations:
 
 
 
 
 
Basic and Diluted
$
3.51

 
 
 
$
3.38

 
 
 
 
 
 
Weighted Average Common Shares Outstanding:
 
 
 
 
 
Basic
27,233

 
 
 
27,233

Diluted
27,265

 
 
 
27,265

 
 
 
 
 
 
See accompanying notes to pro forma condensed consolidated financial statements.
 
 
 
 
 
 
 
 





Lancaster Colony Corporation
 
 
 
 
 
Unaudited Pro Forma Condensed Consolidated Statement of Income
 
 
 
For the Twelve Months Ended June 30, 2011
 
 
 
 
 
 
 
 
 
 
 
In thousands, except per share amounts
 
 
 
 
 
 
Historical Statement of Income
 
Pro Forma Adjustments
 
Pro Forma Statement of Income
Net Sales
$
1,089,946

 
$
(167,090
)
a
$
922,856

Cost of Sales
847,517

 
(148,446
)
 a
699,071

   Gross Margin
242,429

 
(18,644
)
 
223,785

Selling, General and Administrative Expenses
95,425

 
(14,880
)
 a
80,545

    Operating Income
147,004

 
(3,764
)
 
143,240

Other Income
14,502

 
(14,454
)
 a
48

    Income Before Income Taxes
161,506

 
(18,218
)
 
143,288

Income Taxes
55,142

 
(6,234
)
 a
48,908

    Income From Continuing Operations
$
106,364

 
$
(11,984
)
 
$
94,380

 
 
 
 
 
 
Net Income Per Common Share from
 
 
 
 
 
  Continuing Operations:
 
 
 
 
 
Basic
$
3.84

 
 
 
$
3.41

Diluted
$
3.84

 
 
 
$
3.40

 
 
 
 
 
 
Weighted Average Common Shares Outstanding:
 
 
 
 
 
Basic
27,664

 
 
 
27,664

Diluted
27,689

 
 
 
27,689

 
 
 
 
 
 
See accompanying notes to pro forma condensed consolidated financial statements.
 
 



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