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EXHIBIT 99.1
CAUTIONARY STATEMENT UNDER SAFE HARBOR PROVISIONS OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Lance, Inc. (the Company), from time to time, makes "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements, which may be written or oral, reflect expectations of
management of the Company at the time such statements are made. The Company is
filing this cautionary statement to identify certain important factors that
could cause the Company's actual results to differ materially from those in any
forward-looking statements made by or on behalf of the Company.
PRICE COMPETITION AND CONSOLIDATION
The sales of most of the Company's products are subject to intense
competition primarily through discounting and other price cutting techniques by
competitors, many of whom are significantly larger and have greater resources
than the Company. In addition, there is a continuing consolidation by the major
companies in the snack food industry which could increase competition.
RAW MATERIALS
The Company's cost of sales can be adversely impacted by changes in the
cost of raw materials, principally flour, peanuts and peanut butter. While the
Company obtains substantial commitments for the future delivery of certain of
its raw materials and engages in limited hedging to reduce the price risk of
these raw materials, continuing long-term increases in the costs of raw
materials could adversely impact the Company's cost of sales.
SALES GROWTH
The Company's plans for profitable sales growth depend upon the ability
of the Company to develop and execute effective marketing and sales strategies
for its products. Efforts to generate profitable sales growth have resulted in
increases in selling, marketing and delivery costs. There is no assurance that
these investments in sales, marketing and delivery efforts will generate
profitable sales growth.
LEVERAGED BUSINESS
Until April 1999, the Company had funded its needs for capital
expenditures, cash dividends and stock repurchases through cash from operations
and investments. As a result of acquisitions and continuing capital expenditure
requirements, future liquidity needs will be funded through operations and,
possibly, increased borrowings. The effects of a leveraged business could have
an adverse impact upon the Company's financial condition and results of
operations.
There are other important factors not described above that could also
cause actual results to differ materially from those in any forward-looking
statement made by or on behalf of the Company.
