LAN Lancer Cp

Lancer Reports Fourth Quarter Results SAN ANTONIO, March 7 /PRNewswire-FirstCall/ -- Lancer Corporation (AMEX:LAN) announced results of operations for the fourth quarter and year ended December 31, 2004. Net sales for the three months ended December 31, 2004 were $31.8 million, up 18% from sales in the fourth quarter of 2003. Record fourth quarter net earnings of $1.9 million in 2004 compared favorably to a net loss of $1.3 million in the same period of 2003. Earnings per diluted share were $0.20 in the fourth quarter of 2004, versus a loss per share of $0.14 in the fourth quarter of 2003. For the year ended December 31, 2004, net sales were $124.2 million, a 9% increase from sales in 2003. Net earnings in 2004 were $10.1 million, or $1.06 per diluted share, compared to a net loss of $0.8 million, or $0.09 per share in 2003. Currency exchange rate fluctuations had a positive impact on sales of 2% in the fourth quarter, and 3% in the full year. Additionally, Lancer received $7.0 million during the third quarter of 2004 from a settlement relating to a joint development project with a customer. The $7.0 million is included in other income in Lancer's Consolidated Statement of Operations for the twelve months ended December 31, 2004. Christopher D. Hughes, Chief Executive Officer, commented: "We made considerable progress in 2004. Our sales growth reflected improvement in our markets, along with contributions from new products. During 2004, we continued to strengthen our manufacturing results through cost reductions and improved efficiency, which resulted in higher profit margins. Additionally, our financial position is strong. We ended the year with $5.2 million of cash and no borrowings under our bank credit facility." Lancer Corporation is a leading innovator, manufacturer and marketer of beverage dispensing systems serving customers worldwide. Headquartered in San Antonio, Texas, Lancer also maintains facilities in Mexico, Australia, Belgium, New Zealand and the United Kingdom. Lancer is a vertically integrated manufacturer that employs approximately 1,200 people. Lancer designs and manufacturers a complete range of fountain soft drink dispensers, frozen beverage dispensers, dispensing valves, beer dispensing equipment, and an extensive line of beverage dispensing parts and accessories, which are marketed through a network of Company sales representatives and authorized distributors. This press release contains various forward-looking statements and information that are based on management's belief as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements contain certain risks, uncertainty and assumptions. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. LANCER CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share data) Three Months Ended Twelve Months Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2004 2003 2004 2003 Net sales $ 31,781 $ 27,019 $ 124,249 $ 113,500 Cost of sales 22,745 19,786 87,518 84,401 Gross profit 9,036 7,233 36,731 29,099 Selling, general and administrative expenses 6,340 7,617 28,900 28,613 Other operating (income) expenses --- 1,076 127 1,132 Operating income (loss) 2,696 (1,460) 7,704 (646) Other income (expense): Interest income (expense) (42) 97 (499) (329) Income (loss) from joint ventures 283 (158) 1,107 (217) Other income (expense), net (423) (237) 6,819 23 (182) (298) 7,427 (523) Income (loss) from continuing operations before income taxes 2,514 (1,758) 15,131 (1,169) Income tax expense 607 201 5,031 190 Income (loss) from continuing operations 1,907 (1,959) 10,100 (1,359) Discontinued operations Income (loss) from operations of discontinued Brazilian subsidiary --- 36 --- (196) Income tax benefit (expense) --- (740) --- 788 Income (loss) from discontinued operations --- (704) --- 592 Net earnings (loss) $ 1,907 $ (1,255) $ 10,100 $ (767) Common Shares Outstanding: Basic 9,437,441 9,360,903 9,388,444 9,356,082 Diluted 9,577,709 9,360,903 9,503,582 9,356,082 Earnings Per Share: Basic Earnings (loss) from continuing operations $ 0.21 $ (0.21) $ 1.08 $ (0.15) Income from discontinued operations $ --- $ 0.07 $ --- $ 0.06 Net earnings (loss) $ 0.21 $ (0.14) $ 1.08 $ (0.09) Diluted Earnings (loss) from continuing operations $ 0.20 $ (0.21) $ 1.06 $ (0.15) Earnings from discontinued operations $ --- $ 0.07 $ --- $ 0.06 Net earnings (loss) $ 0.20 $ (0.14) $ 1.06 $ (0.09) LANCER CORPORATION CONSOLIDATED BALANCE SHEETS (Amounts in thousands) ASSETS December 31, December 31, 2004 2003 Assets: Cash $ 5,196 $ 1,129 Net current receivables 18,344 16,016 Total inventories 24,495 24,502 Other assets 37,452 40,631 Total assets $ 85,487 $ 82,278 LIABILITIES AND SHAREHOLDERS' EQUITY December 31, December 31, 2004 2003 Liabilities: Accounts payable $ 7,555 $ 6,609 Debt 1,477 11,003 Other liabilities 13,440 12,703 Total liabilities $ 22,472 $ 30,315 Minority interest --- --- Shareholders' equity 63,015 51,963 Total liabilities and shareholders' equity $ 85,487 $ 82,278 DATASOURCE: Lancer Corporation CONTACT: Scott Adams of Lancer Corporation, +1-210-310-7065 Web site: http://www.lancercorp.com/

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