Revenue during the quarter surged 41.28 percent to $588.80 million from $416.77 million in the previous year period. Gross margin for the quarter expanded 200 basis points over the previous year period to 36.19 percent. Total expenses were 91.36 percent of quarterly revenues, down from 93.97 percent for the same period last year. This has led to an improvement of 261 basis points in operating margin to 8.64 percent.

Operating income for the quarter was $50.89 million, compared with $25.14 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $81.84 million compared with $47.25 million in the prior year period. At the same time, adjusted EBITDA margin improved 256 basis points in the quarter to 13.90 percent from 11.34 percent in the last year period.

"Growth of our core brands accelerated during the third quarter, and when combined with our cost savings initiatives, operating margin improved 210 basis points reaching 9.1% for the quarter," said Carl E. Lee, Jr., president and chief executive officer. "Our Legacy Snyder’s-Lance brands delivered 2.6% year over year growth, driven by core brand growth of 3.7% led by Snack Factory®, Cape Cod® and Lance®. Despite incremental investments in advertising and consumer promotions, productivity and sales growth delivered the margin expansion we expected. The integration of Diamond Foods is on target with cost and revenue synergies being achieved on schedule. Our early revenue synergies include wins in the club, drug and small format channels, as retailers expand their distribution of our premium brands."

For financial year 2016, Snyder's-Lance, Inc expects revenue to be in the range of $2,290 million to $2,310 million. The company projects diluted earnings per share to be in the range of $1.24 to $1.30.

The company has spent $1,092.49 million cash to meet investing activities during the nine month period as against cash outgo of $32.32 million in the last year period. It has incurred net capital expenditure of $56.30 million on net basis during the nine month period, up 69.85 percent or $23.15 million from year ago period.

Cash flow from financing activities was $926.83 million for the nine month period as against cash outgo of $33.19 million in the last year period.

Cash and cash equivalents stood at $26.81 million as on Oct. 01, 2016, down 58.31 percent or $37.50 million from $64.32 million on Oct. 03, 2015.

Working capital decreases marginally
Snyder's-Lance, Inc has witnessed a decline in the working capital over the last year. It stood at $225.04 million as at Oct. 01, 2016, down 1.61 percent or $3.69 million from $228.73 million on Oct. 03, 2015. Current ratio was at 1.67 as on Oct. 01, 2016, down from 2.54 on Oct. 03, 2015.

Cash conversion cycle (CCC) has decreased to 38 days for the quarter from 49 days for the last year period. Days sales outstanding went down to 28 days for the quarter compared with 31 days for the same period last year.

Days inventory outstanding has decreased to 31 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding went down to 21 days for the quarter from 23 for the same period last year.