MARZETTI CO 10-K

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock trades on The NASDAQ Global Select Market under the symbol LANC. The number of shareholders of record as of August 3, 2020 was approximately 740 . This is not the actual number of beneficial owners of our common stock, as shares are held in “street name” by brokers and others on behalf of individual owners. We have increased our regular cash dividends for 57 consecutive years. Future dividends will depend on our earnings, financial condition and other factors. The information regarding compensation plans under which equity securities are authorized for issuance is incorporated by reference to the information contained in our definitive proxy statement for our November 2020 Annual Meeting of Shareholders to be filed with the SEC pursuant to Regulation 14A promulgated under the Exchange Act. Issuer Purchases of Equity Securities In November 2010, our Board of Directors approved a share repurchase authorization of 2,000,000 common shares, of which 1,315,911 common shares remained authorized for future repurchases at June 30, 2020 . This share repurchase authorization does not have a stated expiration date. In the fourth quarter, we made the following repurchases of our common stock: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Maximum Number of Shares that May Yet be Purchased Under the Plans April 1-30, 2020 (1) 71 $ 135.49 71 1,316,316 May 1-31, 2020 (1) 85 $ 142.81 85 1,316,231 June 1-30, 2020 (1) 320 $ 154.99 320 1,315,911 Total 476 $ 149.91 476 1,315,911 (1) Represents shares that were repurchased in satisfaction of tax withholding obligations arising from the vesting of restricted stock granted to employees under the Lancaster Colony Corporation 2015 Omnibus Incentive Plan. 15 Table of Contents PERFORMANCE GRAPH COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL SHAREHOLDER RETURN OF LANCASTER COLONY CORPORATION, THE S&P MIDCAP 400 INDEX AND THE DOW JONES U.S. FOOD PRODUCERS INDEX The graph set forth below compares the five-year cumulative total return from investing $100 on June 30, 2015 in each of our Common Stock, the S&P Midcap 400 Index and the Dow Jones U.S. Food Producers Index. The total return calculation assumes that all dividends are reinvested, including any special dividends. Cumulative Total Return (Dollars) 6/15 6/16 6/17 6/18 6/19 6/20 Lancaster Colony Corporation 100.00 149.33 145.84 167.76 183.02 194.29 S&P Midcap 400 100.00 101.33 120.14 136.37 138.22 128.97 Dow Jones U.S. Food Producers 100.00 118.86 114.07 111.75 115.91 118.63 There can be no assurance that our stock performance will continue into the future with the same or similar trends depicted in the above graph. 16 Table of Contents Item 6. Selected Financial Data LANCASTER COLONY CORPORATION AND SUBSIDIARIES FIVE YEAR FINANCIAL SUMMARY Years Ended June 30, (Thousands Except Per Share Figures) 2020 2019 2018 2017 2016 Operations Net Sales $ 1,334,388 $ 1,307,787 $ 1,222,925 $ 1,201,842 $ 1,191,109 Gross Profit (1) $ 358,036 $ 326,198 $ 303,506 $ 318,780 $ 299,633 Percent of Net Sales 26.8 % 24.9 % 24.8 % 26.5 % 25.2 % Change in Contingent Consideration $ 257 $ (16,180 ) $ 2,052 $ 1,156 $ — Multiemployer Pension Settlement and Related Costs $ — $ — $ — $ 17,635 $ — Income Before Income Taxes $ 179,077 $ 195,542 $ 174,203 $ 175,516 $ 184,633 Percent of Net Sales 13.4 % 15.0 % 14.2 % 14.6 % 15.5 % Taxes Based on Income (2) $ 42,094 $ 44,993 $ 38,889 $ 60,202 $ 62,869 Net Income (2) $ 136,983 $ 150,549 $ 135,314 $ 115,314 $ 121,764 Percent of Net Sales 10.3 % 11.5 % 11.1 % 9.6 % 10.2 % Diluted Net Income Per Common Share (2) $ 4.97 $ 5.46 $ 4.92 $ 4.20 $ 4.44 Cash Dividends Per Common Share - Regular $ 2.75 $ 2.55 $ 2.35 $ 2.15 $ 1.96 Cash Dividends Per Common Share - Special $ — $ — $ — $ — $ 5.00 Financial Position Total Assets (3) $ 993,353 $ 905,399 $ 804,491 $ 716,405 $ 634,732 Property, Plant and Equipment-Net (4) $ 293,288 $ 247,044 $ 190,813 $ 180,671 $ 169,595 Payments for Property Additions (5) $ 82,642 $ 70,880 $ 31,025 $ 27,005 $ 16,671 Depreciation and Amortization $ 37,963 $ 31,848 $ 26,896 $ 24,906 $ 24,147 Long-Term Debt $ — $ — $ — $ — $ — Shareholders’ Equity (2) $ 783,300 $ 726,873 $ 652,282 $ 575,977 $ 513,598 Per Common Share $ 28.46 $ 26.44 $ 23.73 $ 20.98 $ 18.73 Weighted Average Common Shares Outstanding-Diluted (2) 27,496 27,537 27,459 27,440 27,373 (1) Certain prior-year amounts were reclassified in 2019 to reflect the impact of the adoption of new accounting guidance for the presentation of net periodic pension cost and net periodic postretirement benefit cost. This adoption resulted in changes in classification on the income statement such that net periodic pension cost and net periodic postretirement benefit cost are reported outside of income from operations for all periods presented. (2) In 2018, we adopted new accounting guidance for stock-based compensation, including the following provisions that were applied on a prospective basis: (a) the inclusion of the tax consequences related to stock-based compensation within the computation of income tax expense versus equity and (b) assumed proceeds used in the calculation of weighted average shares no longer include the amount of excess tax benefits. (3) In 2020, we adopted new accounting guidance for leases that requires lessees to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months. This guidance was applied on a prospective basis. (4) Amounts for 2020 and 2019 include finance lease right-of-use assets of $2.3 million and $2.1 million , respectively. The related lease liabilities were $2.2 million and $2.0 million , respectively. (5) Amounts for 2019 and 2017 exclude property obtained in acquisitions ( $4.8 million in the 2019 acquisition of Omni Baking Company; $1.9 million in the 2019 acquisition of Bantam Bagels; and $5.1 million in the 2017 acquisition of Angelic Bakehouse). 17 Table of Contents