LAN Lancer Cp

Lancer Reports First Quarter Results SAN ANTONIO, April 28 /PRNewswire-FirstCall/ -- Lancer Corporation (AMEX:LAN) announced results of operations for the first quarter ended March 31, 2005. Net sales for the three months ended March 31, 2005 were $31.6 million, up 7% from $29.5 million in the first quarter of 2004. Record first quarter net earnings were $2.6 million in 2005, compared to $0.9 million in 2004. Earnings per diluted share were $0.26 in the first quarter of 2005, up from $0.10 in the same period last year. Sales rose in the North America, Latin America, and Europe regions during the first quarter of 2005. Currency fluctuations had a positive impact of 1% on sales during the quarter. Lancer realized a gain from the sale of assets of $0.3 million in the 2005 period, as well as $0.3 million of costs relating to compliance with the requirements of Section 404 of the Sarbanes-Oxley Act. Christopher D. Hughes, Chief Executive Officer, commented: "Lancer turned in a solid performance in the first quarter, our fifth consecutive quarter of year-over-year earnings growth. We were able to increase sales, and the added volume helped us leverage our manufacturing costs to continue our margin improvement. Additionally, we are pleased with our success in attracting new customers. In the quarters ahead, we will seek to further broaden our customer base, and to continue our internal improvements." 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 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share data) Three Months Ended March 31, March 31, 2005 2004 Net sales $ 31,623 $ 29,507 Cost of sales 21,443 20,906 Gross profit 10,180 8,601 Selling, general and administrative expenses 6,947 7,512 Other operating income (257) (327) Operating income 3,490 1,416 Other income (expense): Interest expense (29) (109) Income from joint ventures 254 153 Other income, net 225 26 450 70 Earnings before income taxes 3,940 1,486 Income tax expense 1,386 541 Net earnings $ 2,554 $ 945 Common Shares Outstanding: Basic 9,463,281 9,367,431 Diluted 9,662,410 9,471,713 Earnings Per Share: Basic $ 0.27 $ 0.10 Diluted $ 0.26 $ 0.10 LANCER CORPORATION CONSOLIDATED BALANCE SHEETS (Amounts in thousands) ASSETS (Unaudited) (Audited) March 31, December 31, 2005 2004 Assets: Cash $ 5,136 $ 5,196 Net current receivables 19,426 18,344 Total inventories 26,008 24,495 Other assets 36,831 37,452 Total assets $ 87,401 $ 85,487 LIABILITIES AND SHAREHOLDERS' EQUITY March 31, December 31, 2005 2004 Liabilities: Accounts payable $ 7,532 $ 7,555 Debt 1,441 1,477 Other liabilities 12,946 13,440 Total liabilities $ 21,919 $ 22,472 Minority interest --- --- Shareholders' equity 65,482 63,015 Total liabilities and shareholders' equity $ 87,401 $ 85,487 DATASOURCE: Lancer Corporation CONTACT: Scott Adams of Lancer Corporation, +1-210-310-7065 Web site: http://www.lancercorp.com/

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