ORLANDO, Fla., April 25,
2017 /PRNewswire/ -- (NYSE: TUP) Tupperware Brands
Corporation today announced first quarter 2017 operating
results.
Rick Goings, Chairman and CEO,
commented, "Local currency sales grew 6% in the first quarter,
beating the high-end of our sales guidance by 3 points, driven by
9% growth in our emerging market businesses, most significantly in
Brazil, China, Tupperware Mexico and Tupperware South
Africa. Adjusted earnings per share was 7
cents above the high-end of our range, including a
2 cent benefit from foreign exchange
rates versus our February guidance."
Goings continued, "Solid execution of direct selling
fundamentals, along with innovative digital strategies across the
portfolio, allowed more of our businesses to leverage our strong
aspirational brand and provide an earnings opportunity that builds
confidence in the 3.2 million women of our global sales force. With
double digit sales force size advantages and the wind at our backs
in several key businesses, we expect the momentum to continue in
2017, and have raised our sales and earnings per share outlooks
accordingly."
First Quarter Executive Summary
- First quarter 2017 net sales were $554.8
million, up 6% in dollars and local currency. Emerging
markets**, accounting for 66% of sales, achieved a 9% increase in
dollars and local currency. The most significant contributions to
the first quarter growth in local currency were in Brazil, China, Tupperware Mexico and Tupperware South
Africa, partially offset by Indonesia. Established markets were down 1% in
dollars and local currency, most significantly in France, net of a significant increase by
Tupperware United States and Canada. There was an estimated 1 percentage
point benefit on the year-over-year sales comparison of the whole
Company from net favorable time shifts.
- GAAP net income and diluted earnings per share were
$47.4 million and $0.93, versus $43.4
million and $0.86 in the prior
year, respectively. Adjusted, diluted earnings per share of
$1.01 was 7
cents above the high-end of the February guidance range,
reflecting higher than expected sales, particularly in China which had a good contribution margin to
profit, lower costs from restructuring actions taken to improve the
value chain in Beauticontrol, and a timing benefit from unallocated
corporate costs. Versus the February guidance, there was a
2 cent benefit from stronger foreign
exchange rates on the diluted earnings per share comparison, while
there was no impact versus 2016.
- Total sales force of 3.2 million was up 5% versus the prior
year, a 4-point sequential improvement from the end of 2016, and
average active sellers were down 1%, a 7-point improvement from the
fourth quarter.
First Quarter Business Highlights
Europe: Segment sales were
down 3% in dollars and 2% in local currency.
- Emerging markets in Europe
were up 4% in dollars and 1% in local currency, mainly from a
significant increase in Tupperware South Africa, up 60% in dollars
(35% in local currency), partially offset by Turkey, down 37% in dollars (21% in local
currency).
- Established markets were down 6% in dollars and 4% in local
currency, primarily in France,
which was down 18% in dollars (16% in local currency).
Asia Pacific: China leads the way with significant
double-digit increase. Segment sales up 3% in dollars and 4% in
local currency.
- Emerging Markets in Asia
Pacific were up 4% in dollars and 6% in local currency, led
by 39% more members and continued leveraging of the product
portfolio and digital technologies in China, up 31% in dollars (38% in local
currency), along with solid performances in Malaysia/Singapore and Philippines, each up 1% in dollars and 7% in
local currency. These were partially offset by Indonesia, down 9% in dollars (10% in local
currency).
- Segment's total sales force was 1% higher year-over-year, net
of a negative 8 percentage point impact due to implementing
requirements under government direct selling guidelines in
India.
Tupperware North America: Both Mexico and United States and Canada leveraged strong fundamentals, growing
segment sales up 10% in dollars and up 14% in local
currency.
- Tupperware United States and Canada sales were up 15% in dollars (14% in
local currency).
- Tupperware Mexico sales were up 4% in dollars (15% in local
currency), which was a double-digit sequential improvement in local
currency versus the fourth quarter of 2016 that was impacted by
challenging externals following the U.S. presidential election and
a more difficult comparison.
Beauty North America:
Segment sales down 19% in dollars and 13% in local
currency.
- Beauticontrol sales down 23%, mainly in connection with a
smaller sales force.
- Fuller Mexico sales were down
18% in dollars and 9% in local currency, reflecting a smaller sales
force size, although at down 3% in total sellers, there was a
sequential improvement from the fourth quarter of 2016.
South America: Brazil continues to drive segment sales growth
of 42% in dollars and 27% in local currency.
- Brazil was up 52% in dollars
and 24% in local currency, reflecting higher volume from a 23%
advantage in total sellers in connection with strong sales force
additions and onboarding, as well as effective merchandising and
marketing campaigns.
- Sales in Argentina were up 23%
in dollars and 33% in local currency in connection with price
increases related to the high inflation environment.
- Segment's sales force size was up 17%, and it had 12% more
active sellers.
2017 Outlook
Based on current business trends and foreign currency rates, the
Company's second quarter and fiscal 2017 full year outlook is
provided below.
Company Level
|
13 Weeks
Ended
|
|
13 Weeks
|
|
52 Weeks
Ended
|
|
53 Weeks
|
|
July 1,
2017
|
|
Ended
|
|
Dec 30,
2017
|
|
Ended
|
|
Low
|
High
|
|
June 25,
2016
|
|
Low
|
High
|
|
Dec 31,
2016
|
|
|
|
|
|
|
|
|
|
|
USD Sales Growth vs
Prior Year
|
2
|
%
|
4
|
%
|
|
(4)%
|
|
|
3
|
%
|
5
|
%
|
|
(3)%
|
|
GAAP EPS
|
$1.07
|
|
$1.12
|
|
|
$1.03
|
|
|
$4.35
|
|
$4.45
|
|
|
$4.41
|
|
GAAP Pre-Tax
ROS
|
12.9
|
%
|
13.2
|
%
|
|
12.4
|
%
|
|
13.2
|
%
|
13.3
|
%
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Local
Currency+ Sales Growth vs
Prior Year
|
2
|
%
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
4
|
%
|
|
2
|
%
|
EPS Excluding
Items*
|
$1.17
|
|
$1.22
|
|
|
$1.16
|
|
|
$4.67
|
|
$4.77
|
|
|
$4.39
|
|
Pre-Tax ROS Excluding
Items*
|
14.0
|
%
|
14.3
|
%
|
|
13.8
|
%
|
|
14.0
|
%
|
14.1
|
%
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
|
FX Impact on EPS
Comparison (a)
|
$0.02
|
|
$0.02
|
|
|
|
|
$0.08
|
|
$0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Impact of changes
in foreign currency versus prior year is updated monthly and posted
at: Tupperware Brands Foreign Exchange Translation Impact
Update.
|
|
|
Full Year 2017
- Fiscal year 2017 includes 52 weeks, while 2016 had 53 weeks.
The Company estimates this will have a negative 1 percentage point
impact on the year-over-year sales comparison in 2017 versus
2016.
- Tax rate estimated at 26.1% on a U.S. GAAP basis and 25.5%
excluding items.
- Excludes land sales that may occur.
Segment Level
- For the full year, sales are expected to be down low-single
digits in dollars (down 1 to 3% in local currency) in Europe, about even in dollars and in local
currency in Asia Pacific, up high
single digits in dollars (up 8 to 10% in local currency) in
Tupperware North America, down low double digits in dollars (down
10 to 11% in local currency) in Beauty North America and to
increase in South America by mid
to high twenties in dollars (18 to 20% in local currency).
- Segment profit return on sales, excluding items, is expected to
be about even in dollars and decrease about ½ point in local
currency in Europe, to increase
slightly in dollars and local currency in Asia Pacific, to increase about ½ point in
dollars and local currency in Tupperware North America, to increase
about 1 point in dollars and local currency in Beauty North
America, and to be about even in dollars and local currency in
South America.
* See Non-GAAP Financial Measures Reconciliation Schedules.
** The Company classifies Established Market Units as those
operating in Western Europe,
including Scandinavia, the United
States, Canada,
Australia and Japan and its remaining units as Emerging
Market Units.
+ Local currency changes are measured by comparing
current year results with those of the prior year translated at the
current year's foreign exchange rates.
First Quarter Earnings Conference Call
Tupperware Brands will conduct a conference call today, Tuesday,
April 25, 2017, at 8:30 am Eastern
time. The conference call will be webcast and accessible,
along with a copy of this news release and slides presented during
the conference call, on www.tupperwarebrands.com.
Tupperware Brands Corporation, through an independent
sales force of 3.2 million, is the leading global marketer of
innovative, premium products across multiple brands utilizing
social selling. Product brands and categories include
design-centric preparation, storage and serving solutions for the
kitchen and home through the Tupperware brand and beauty and
personal care products through the Avroy Shlain, Beauticontrol,
Fuller Cosmetics, NaturCare, Nutrimetics, and Nuvo brands.
The Company's stock is listed on the New York Stock Exchange
(NYSE: TUP). Statements contained in this release, which are not
historical fact and use predictive words such as "outlook",
"guidance", "expects" or "target" are forward-looking
statements. These statements involve risks and uncertainties
that include recruiting and activity of the Company's independent
sales forces relating to governmental actions and otherwise, the
success of new product introductions and promotional programs,
governmental approvals of materials for use in food containers and
beauty, personal care nutraceutical products, the success of buyers
in obtaining financing or attracting tenants for commercial and
residential developments, the effects of economic and political
conditions generally and foreign exchange risk in particular and
other risks detailed in the Company's periodic reports as filed in
accordance with the Securities Exchange Act of 1934, as
amended.
The Company updates each month the impact of changes in foreign
exchange rates versus the prior year, posting it on Tupperware
Brands Foreign Exchange Translation Impact Update. Other than
updating for changes in foreign currency exchange rates, the
Company does not intend to update forward-looking information,
except through its quarterly earnings releases, unless it expects
diluted earnings per share for the current quarter, excluding items
impacting comparability and changes versus its guidance of the
impact of changes in foreign exchange rates, to be significantly
below its previous guidance.
Non-GAAP Financial Measures
The Company has utilized non-GAAP financial measures in this
release, which are provided to assist readers' understanding of the
Company's results of operations. These amounts exclude certain
items which at times materially impact the comparability of the
Company's results of operations. The adjusted information is
intended to be indicative of the Company's primary operations, and
to assist readers in evaluating performance and analyzing trends
across periods. These results should be considered in addition to,
not as a substitute for, results reported in accordance with
GAAP.
The non-GAAP financial measures exclude gains from the sale of
property, plant and equipment and insurance settlements related to
casualty losses, other income in connection with real estate
related operations, inventory obsolescence in conjunction with
decisions to exit or significantly restructure businesses, certain
asset retirement obligations, re-engineering and fixed asset
impairment charges and pension settlements. While the Company
is engaged in a multi-year program to sell land adjacent to its
Orlando, Florida headquarters, and
also disposes of other excess land and facilities periodically,
these activities are not part of its primary business
operations. Additionally, amounts recognized in any given
period are not indicative of amounts that may be recognized in any
particular future period. For this reason, these
amounts are excluded as indicated. The Company excludes
significant charges related to casualty losses caused by
significant weather events, fires or similar circumstances. It also
excludes any related gains resulting from the settlement of
associated insurance claims. While these types of events can and do
recur periodically, they are excluded from indicated financial
information due to their distinction from ongoing business
operations, inherent volatility and impact on the comparability of
earnings across periods. The Company periodically records exit
costs accounted for using the applicable accounting guidance for
exit or disposal cost obligations and other amounts related to
rationalizing its supply chain operations and other restructuring
activities, including upon liquidation of operations in a country,
the recognition in income of amounts previously recorded in equity
as a cumulative translation adjustment. Also, the Company excludes
pension settlements, as well as the impact of changes in tax law on
cumulative deferred taxes from items previously recorded as
cumulative translation adjustments. The Company believes these
amounts are similarly volatile and impact the comparability of
earnings across periods. Therefore, they are also excluded from
indicated financial information to provide what the Company
believes represents a useful measure for analysis and predictive
purposes.
The Company believes that excluding from reported financial
information costs incurred in connection with a significant change
in its capital structure that is of a nature that would be expected
to recur sporadically, also provides a useful measure for analysis
and predictive purposes. The Venezuelan government over the last
several years has severely restricted the ability to translate
bolivars into U.S. dollars. Due to volatility in changes in the
mandated exchange rates, the Company's non-GAAP measures exclude
for analysis and predictive purposes, the impact from devaluations
on the bolivar denominated net monetary assets and other balance
sheet positions that impact near term income, since they appear in
the income statement at the exchange rate at which they were
originally translated rather than the exchange rate at which
current operating activity is being translated.
The Company has also elected to present financial measures
excluding the impact of amortizing the purchase accounting carrying
value of certain definite-lived intangible assets, primarily the
value of its Fuller trade name recorded in connection with the
Company's December 2005 acquisition
of the direct selling businesses of Sara Lee Corporation. The
amortization expense related to these assets will continue for
several years. Similarly, in connection with its evaluation
of the carrying value of acquired intangible assets and goodwill,
the Company has periodically recognized impairment charges.
The Company believes that these types of non-cash charges will not
be representative in any single reporting period of amounts
recorded in prior reporting periods or expected to be recorded in
future reporting periods. Therefore, they are excluded from
indicated financial information to also provide a useful measure
for analysis and predictive purposes.
As the impact of changes in exchange rates is an important
factor in understanding period-to-period comparisons, the Company
believes the presentation of results on a local currency basis, in
addition to reported results, helps improve readers' ability to
understand the Company's operating results and evaluate performance
in comparison with prior periods. The Company presents local
currency information that compares results between periods as if
current period exchange rates had been the exchange rates in the
prior period arising from the translation impact on sales and
earnings from currency devaluations. The Company uses results on a
local currency basis as one measure to evaluate performance. The
Company generally refers to such amounts as calculated on a local
currency basis, as restated or excluding the impact of foreign
currency. These results should be considered in addition to, not as
a substitute for, results reported in accordance with GAAP. Results
on a local currency basis may not be comparable to similarly titled
measures used by other companies and are not measures of
performance presented in accordance with GAAP.
In information included with this release, the Company has
referred to Adjusted EBITDA and a Debt/Adjusted EBITDA ratio, which
are non-GAAP financial measures used in the Company's credit
agreement. The Company uses these measures in its capital
allocation decision process and in discussions with investors,
analysts and other interested parties, and therefore believes it is
useful to disclose this amount and ratio. The Company's calculation
of these measures is in accordance with its credit agreement, and
is set forth in the reconciliation from GAAP amounts in an
attachment to this release; however, the reader is cautioned that
other companies define these measures in different ways, and
consequently they may not be comparable with similarly labeled
amounts disclosed by others.
TUPPERWARE
BRANDS CORPORATION
|
FIRST QUARTER 2017
SALES FORCE STATISTICS*
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
All
Units
|
Reported
Inc/(Dec)
vs. Q1
'16
%
|
Restated+
Inc/(Dec)
vs. Q1
'16
%
|
|
Active
Sales
Force
|
Inc/(Dec)
vs. Q1
'16
%
|
|
Total
Sales
Force
|
Inc/(Dec)
vs. Q1
'16
%
|
Europe
|
(3)
|
(2)
|
|
100,497
|
—
|
b
|
786,821
|
5
|
Asia
Pacific
|
3
|
4
|
c
|
217,966
|
(3)
|
|
1,075,641
|
1
|
TW North
America
|
10
|
14
|
d
|
56,404
|
14
|
d
|
433,315
|
11
|
Beauty North
America
|
(19)
|
(13)
|
|
181,672
|
(9)
|
|
382,775
|
(6)
|
South
America
|
42
|
27
|
e
|
124,493
|
12
|
|
507,544
|
17
|
Total All
Units
|
6
|
6
|
a
|
681,032
|
(1)
|
|
3,186,096
|
5
|
|
|
|
|
|
|
|
|
|
Emerging Market
Units
|
|
|
|
|
|
|
|
|
Europe
|
4
|
1
|
|
65,959
|
2
|
b
|
590,097
|
8
|
Asia
Pacific
|
4
|
6
|
c
|
191,266
|
(3)
|
|
964,333
|
2
|
TW North
America
|
5
|
14
|
|
41,930
|
13
|
|
323,957
|
11
|
Beauty North
America
|
(18)
|
(9)
|
|
163,967
|
(8)
|
|
331,326
|
(3)
|
South
America
|
42
|
27
|
e
|
124,493
|
12
|
|
507,544
|
17
|
Total Emerging Market
Units
|
9
|
9
|
|
587,615
|
—
|
|
2,717,257
|
6
|
|
|
|
|
|
|
|
|
|
Established Market
Units
|
|
|
|
|
|
|
|
|
Europe
|
(6)
|
(4)
|
|
34,538
|
(5)
|
b
|
196,724
|
(3)
|
Asia
Pacific
|
(2)
|
(5)
|
|
26,700
|
(5)
|
|
111,308
|
(5)
|
TW North
America
|
15
|
14
|
|
14,474
|
19
|
d
|
109,358
|
8
|
Beauty North
America
|
(23)
|
(23)
|
|
17,705
|
(22)
|
|
51,449
|
(20)
|
South
America
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
Total Established
Market Units
|
(1)
|
(1)
|
|
93,417
|
(6)
|
|
468,839
|
(3)
|
|
|
|
|
|
|
|
|
|
* Sales force
statistics as collected by the Company and, in some cases, provided
by distributors and sales force. The Company classifies Established
Market Units as those operating in Western Europe, including
Scandinavia, the United States, Canada, Australia and Japan, and
its remaining units as Emerging Market Units. Active Sales Force is
defined as the average number of people ordering in each cycle over
the course of the quarter, and Total Sales Force is defined as the
number of sales force members of the units as of the end of the
quarter.
+ Local
currency, or restated, changes are measured by comparing current
year results with those of the prior year, translated at the
current year's foreign exchange rates.
Notes
a The overall better local currency than active sales
force comparison reflects 4pp related to unit mix and 3pp connected
with improvement in productivity.
b The worse active than total sales force comparison in
Europe came significantly from net additions in Tupperware Russia,
Italy and South Africa which lead to a larger total sales
force advantage, but at lower activity rates.
c The higher sales than active seller comparison in Asia
Pacific emerging markets resulted from a continued mix shift toward
China that operates under the outlet model and India from the
second half 2016 change to the manager override commission to be
based on sales rather than active sellers that has led to larger
and fewer orders.
d The significant increase in active vs. total sellers
in the Tupperware North America established markets reflected the
strategy to engage the sales force in the time period that the
United States business was lapping a change in its sales force
compensation plan that was followed by a one-year transition
plan. This led to a higher activity rate, but at lower order
sizes.
e The higher sales than active seller increase in South
America reflected a shift to Brazil which had a larger than average
order size and inflation related price increases throughout the
segment.
|
TUPPERWARE
BRANDS CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
(In millions,
except per share data)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
Apr 1,
2017
|
|
Mar 26,
2016
|
Net sales
|
$
|
554.8
|
|
|
$
|
525.7
|
|
Cost of products
sold
|
177.7
|
|
|
166.0
|
|
Gross
margin
|
377.1
|
|
|
359.7
|
|
|
|
|
|
Delivery, sales and
administrative expense
|
299.1
|
|
|
288.7
|
|
Re-engineering and
impairment charges
|
2.3
|
|
|
1.1
|
|
Gains on disposal of
assets
|
0.1
|
|
|
0.1
|
|
Operating
income
|
75.8
|
|
|
70.0
|
|
|
|
|
|
Interest
income
|
0.5
|
|
|
0.7
|
|
Interest
expense
|
11.6
|
|
|
12.1
|
|
Other (income)
expense, net
|
0.5
|
|
|
0.4
|
|
Income before income
taxes
|
64.2
|
|
|
58.2
|
|
Provision for income
taxes
|
16.8
|
|
|
14.8
|
|
Net income
|
$
|
47.4
|
|
|
$
|
43.4
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
Basic earnings per
share
|
$
|
0.94
|
|
|
$
|
0.86
|
|
Diluted earnings per
share
|
$
|
0.93
|
|
|
$
|
0.86
|
|
TUPPERWARE
BRANDS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
Apr 1,
2017
|
|
Mar 26,
2016
|
|
%
|
|
%
|
|
Exchange
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
Net
Sales:
|
|
|
|
|
|
|
|
|
|
Europea
|
$
|
149.5
|
|
|
$
|
153.9
|
|
|
(3)
|
|
|
(2)
|
|
|
$
|
(1.2)
|
|
Asia
Pacifica
|
177.3
|
|
|
171.6
|
|
|
3
|
|
|
4
|
|
|
(1.8)
|
|
TW North
America
|
91.8
|
|
|
83.2
|
|
|
10
|
|
|
14
|
|
|
(3.0)
|
|
Beauty North
America
|
39.5
|
|
|
48.9
|
|
|
(19)
|
|
|
(13)
|
|
|
(3.4)
|
|
South
America
|
96.7
|
|
|
68.1
|
|
|
42
|
|
|
27
|
|
|
8.3
|
|
|
$
|
554.8
|
|
|
$
|
525.7
|
|
|
6
|
|
|
6
|
|
|
$
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
|
Segment
profit (loss):
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
19.9
|
|
|
$
|
25.2
|
|
|
(21)
|
|
|
(23)
|
|
|
$
|
0.7
|
|
Asia
Pacific
|
40.0
|
|
|
36.9
|
|
|
8
|
|
|
10
|
|
|
(0.6)
|
|
TW North
America
|
16.4
|
|
|
14.6
|
|
|
12
|
|
|
21
|
|
|
(1.1)
|
|
Beauty North
America
|
(0.6)
|
|
|
(1.7)
|
|
|
66
|
|
|
71
|
|
|
(0.3)
|
|
South
America
|
18.2
|
|
|
13.0
|
|
|
40
|
|
|
25
|
|
|
1.6
|
|
|
93.9
|
|
|
88.0
|
|
|
7
|
|
|
6
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(16.4)
|
|
|
(17.4)
|
|
|
(6)
|
|
|
(5)
|
|
|
—
|
|
Gains on disposal of
assets
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Re-engineering and
impairment charges
|
(2.3)
|
|
|
(1.1)
|
|
|
+
|
|
|
+
|
|
|
—
|
|
Interest expense,
net
|
(11.1)
|
|
|
(11.4)
|
|
|
(3)
|
|
|
(3)
|
|
|
—
|
|
Income before
taxes
|
64.2
|
|
|
58.2
|
|
|
10
|
|
|
10
|
|
|
0.3
|
|
Provision for income
taxes
|
16.8
|
|
|
14.8
|
|
|
13
|
|
|
13
|
|
|
0.1
|
|
Net income
|
$
|
47.4
|
|
|
$
|
43.4
|
|
|
9
|
|
|
9
|
|
|
$
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share (diluted)
|
$
|
0.93
|
|
|
$
|
0.86
|
|
|
8
|
|
|
8
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares
|
51.0
|
|
|
50.6
|
|
|
|
|
|
|
|
|
|
|
|
* 2017 actual
compared with 2016 translated at 2017 exchange rates
+ Greater
than 100% increase
|
|
|
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(UNAUDITED)
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks Ended Apr
01, 2017
|
|
13 Weeks Ended Mar
26, 2016
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Foreign
Exchange
Impact
|
|
Adj's
|
|
Restated*
Excl
Adj's
|
Segment
profit (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
19.9
|
|
|
$
|
0.7
|
|
b
|
$
|
20.6
|
|
|
$
|
25.2
|
|
|
$
|
0.7
|
|
|
|
|
$
|
25.9
|
|
Asia
Pacific
|
40.0
|
|
|
0.4
|
|
a
|
40.4
|
|
|
36.9
|
|
|
(0.6)
|
|
|
0.5
|
|
a
|
36.8
|
|
TW North
America
|
16.4
|
|
|
0.1
|
|
b
|
16.5
|
|
|
14.6
|
|
|
(1.1)
|
|
|
|
|
13.5
|
|
Beauty North
America
|
(0.6)
|
|
|
1.3
|
|
a
|
0.7
|
|
|
(1.7)
|
|
|
(0.3)
|
|
|
1.4
|
|
a
|
(0.6)
|
|
South
America
|
18.2
|
|
|
0.4
|
|
a,c
|
18.6
|
|
|
13.0
|
|
|
1.6
|
|
|
0.3
|
|
a,c
|
14.9
|
|
|
93.9
|
|
|
2.9
|
|
|
96.8
|
|
|
88.0
|
|
|
0.3
|
|
|
2.2
|
|
|
90.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(16.4)
|
|
|
—
|
|
|
(16.4)
|
|
|
(17.4)
|
|
|
—
|
|
|
—
|
|
|
(17.4)
|
|
Gains on disposal of
assets
|
0.1
|
|
|
(0.1)
|
|
d
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.1)
|
|
d
|
—
|
|
Re-engineering and
impairment charges
|
(2.3)
|
|
|
2.3
|
|
e
|
—
|
|
|
(1.1)
|
|
|
—
|
|
|
1.1
|
|
e
|
—
|
|
Interest expense,
net
|
(11.1)
|
|
|
—
|
|
|
(11.1)
|
|
|
(11.4)
|
|
|
—
|
|
|
—
|
|
|
(11.4)
|
|
Income before
taxes
|
64.2
|
|
|
5.1
|
|
|
69.3
|
|
|
58.2
|
|
|
0.3
|
|
|
3.2
|
|
|
61.7
|
|
Provision for income
taxes
|
16.8
|
|
|
0.8
|
|
f
|
17.6
|
|
|
14.8
|
|
|
0.1
|
|
|
0.7
|
|
f
|
15.6
|
|
Net income
|
$
|
47.4
|
|
|
$
|
4.3
|
|
|
$
|
51.7
|
|
|
$
|
43.4
|
|
|
$
|
0.2
|
|
|
$
|
2.5
|
|
|
$
|
46.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share (diluted)
|
$
|
0.93
|
|
|
$
|
0.08
|
|
|
$
|
1.01
|
|
|
$
|
0.86
|
|
|
$
|
—
|
|
|
$
|
0.05
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 2017 actual
compared with 2016 translated at 2017 exchange rates.
a Amortization of intangibles of acquired beauty
units.
b Pension settlement costs.
c As a result of devaluations in the Venezuelan bolivar,
the Company had negative impacts of $0.2 million in the first
quarter of both 2017 and 2016. These amounts related to expense
from re-measuring bolivar denominated net monetary assets at the
lower exchange rates at the times of devaluations, along with the
impact of recording in income amounts on the balance sheet when the
devaluations occurred, primarily inventory, at the exchange rates
at the time the amounts were made or purchased, rather than the
exchange rates in use when they were included in income.
d Gains on disposal of assets in 2017 relates to an
insurance settlement and in 2016 to land held near the Orlando, FL
headquarters.
e In both years, re-engineering and impairment charges
were primarily related to severance costs incurred for headcount
reduction in several of the Company's operations in connection with
changes in its management and organizational structures.
f Provision for income taxes represents the net tax
impact of adjusted amounts.
See note regarding non-GAAP financial measures in the attached
press release.
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
April 1,
2017
|
|
March 26,
2016
|
Operating
Activities:
|
|
|
|
Net cash used in
operating activities
|
$
|
(17.6)
|
|
|
$
|
(7.5)
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(16.0)
|
|
|
(9.4)
|
|
Proceeds from
disposal of property, plant & equipment
|
0.3
|
|
|
0.4
|
|
Net cash used in
investing activities
|
(15.7)
|
|
|
(9.0)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Dividend payments to
shareholders
|
(34.7)
|
|
|
(35.0)
|
|
Repurchase of common
stock
|
(0.5)
|
|
|
(0.8)
|
|
Repayment of
long-term debt and capital lease obligations
|
(0.4)
|
|
|
(0.4)
|
|
Net change in
short-term debt
|
67.6
|
|
|
66.7
|
|
Proceeds from
exercise of stock options
|
2.1
|
|
|
—
|
|
Net cash provided by
financing activities
|
34.1
|
|
|
30.5
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
4.4
|
|
|
4.8
|
|
Net change in cash
and cash equivalents
|
5.2
|
|
|
18.8
|
|
Cash and cash
equivalents at beginning of year
|
93.2
|
|
|
79.8
|
|
Cash and cash
equivalents at end of period
|
$
|
98.4
|
|
|
$
|
98.6
|
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
Apr 1,
2017
|
|
Dec 31,
2016
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
98.4
|
|
|
$
|
93.2
|
|
Other current
assets
|
504.3
|
|
|
452.1
|
|
Total current
assets
|
602.7
|
|
|
545.3
|
|
|
|
|
|
Property, plant and
equipment, net
|
269.1
|
|
|
259.8
|
|
Other
assets
|
805.8
|
|
|
782.7
|
|
Total
assets
|
$
|
1,677.6
|
|
|
$
|
1,587.8
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Short-term borrowings
and current portion of long-term debt
|
$
|
176.8
|
|
|
$
|
105.9
|
|
Accounts payable and
other current liabilities
|
408.3
|
|
|
441.7
|
|
Total current
liabilities
|
585.1
|
|
|
547.6
|
|
|
|
|
|
Long-term
debt
|
605.9
|
|
|
606.0
|
|
Other
liabilities
|
218.9
|
|
|
221.4
|
|
Total shareholders'
equity
|
267.7
|
|
|
212.8
|
|
Total liabilities and
shareholders' equity
|
$
|
1,677.6
|
|
|
$
|
1,587.8
|
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
April 25,
2017
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Second
Quarter
|
(In millions,
except per share data)
|
2016
Actual
|
|
2017
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
70.2
|
|
|
$
|
74.0
|
|
|
$
|
77.4
|
|
|
|
|
|
|
|
Income tax
|
$
|
17.8
|
|
|
$
|
19.4
|
|
|
$
|
20.3
|
|
Effective
Rate
|
25
|
%
|
|
26
|
%
|
|
26
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
52.4
|
|
|
$
|
54.6
|
|
|
$
|
57.1
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
4
|
%
|
|
9
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
(0.8)
|
|
|
—
|
|
|
—
|
|
Re-engineering,
impairments and pension settlements
|
2.7
|
|
|
4.4
|
|
|
4.4
|
|
Net impact of
Venezuelan bolivar devaluations
|
3.6
|
|
|
—
|
|
|
—
|
|
Acquired intangible
asset amortization
|
2.0
|
|
|
2.0
|
|
|
2.0
|
|
Income
tax(2)
|
(1.2)
|
|
|
(1.2)
|
|
|
(1.2)
|
|
Net Income
(adjusted)
|
$
|
58.7
|
|
|
$
|
59.8
|
|
|
$
|
62.3
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
0.8
|
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2016 restated for currency changes)
|
$
|
59.5
|
|
|
$
|
59.8
|
|
|
$
|
62.3
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
1
|
%
|
|
5
|
%
|
|
|
|
|
|
|
Net income (GAAP) per
common share (diluted)
|
$
|
1.03
|
|
|
$
|
1.07
|
|
|
$
|
1.12
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
4
|
%
|
|
9
|
%
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
1.16
|
|
|
$
|
1.17
|
|
|
$
|
1.22
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
1.18
|
|
|
$
|
1.17
|
|
|
$
|
1.22
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(1)%
|
|
|
3
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
50.7
|
|
|
51.1
|
|
|
51.1
|
|
|
(1) Refer
to Non-GAAP Financial Measures section of attached release for
description of the general nature of adjustment items
(2) Represents income tax impact of adjustments on an
item-by-item basis
(3) Difference between 2016 actual and 2016 translated
at current currency exchange rates
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
April 25,
2017
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Full
Year
|
|
Full
Year
|
(In millions,
except per share data)
|
2016
Actual
|
|
2017
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
301.3
|
|
|
$
|
300.3
|
|
|
$
|
307.2
|
|
|
|
|
|
|
|
Income tax
|
$
|
77.7
|
|
|
$
|
78.3
|
|
|
$
|
80.0
|
|
Effective
Rate
|
26
|
%
|
|
26
|
%
|
|
26
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
223.6
|
|
|
$
|
222.0
|
|
|
$
|
227.2
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(1)%
|
|
|
2
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
$
|
(27.3)
|
|
|
$
|
(0.1)
|
|
|
$
|
(0.1)
|
|
Re-engineering,
impairments and pension settlements
|
11.0
|
|
|
11.8
|
|
|
11.8
|
|
Net impact of
Venezuelan bolivar devaluations
|
4.3
|
|
|
0.2
|
|
|
0.2
|
|
Acquired intangible
asset amortization
|
7.6
|
|
|
7.7
|
|
|
7.7
|
|
Income
tax(2)
|
3.3
|
|
|
(3.3)
|
|
|
(3.3)
|
|
Net Income
(adjusted)
|
$
|
222.5
|
|
|
$
|
238.3
|
|
|
$
|
243.5
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
4.2
|
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2016 restated for currency changes)
|
$
|
226.7
|
|
|
$
|
238.3
|
|
|
$
|
243.5
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
5
|
%
|
|
7
|
%
|
|
|
|
|
|
|
Net income (GAAP) per
common share (diluted)
|
$
|
4.41
|
|
|
$
|
4.35
|
|
|
$
|
4.45
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(1)%
|
|
|
1
|
%
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
4.39
|
|
|
$
|
4.67
|
|
|
$
|
4.77
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
4.47
|
|
|
$
|
4.67
|
|
|
$
|
4.77
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
4
|
%
|
|
7
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
50.7
|
|
|
51.1
|
|
|
51.1
|
|
|
|
|
|
|
|
|
|
|
(1) Refer
to Non-GAAP Financial Measures section of attached release for
description of the general nature of adjustment items
(2) Represents income tax impact of adjustments on an
item-by-item basis, and in 2016 the benefit of a change in tax law
related to an amount previously recorded in equity
(3) Difference between 2016 actual and 2016 translated
at current currency exchange rates
|
TUPPERWARE BRANDS
CORPORATION
|
ADJUSTED EBITDA
AND DEBT/ADJUSTED EBITDA*
|
(UNAUDITED)
|
|
|
|
As of and for
the
four quarters ended
|
|
April 1,
2017
|
Adjusted
EBITDA:
|
|
Net income
|
$
|
227.6
|
|
Add:
|
|
Depreciation and
amortization
|
57.2
|
|
Gross interest
expense
|
48.3
|
|
Provision for income
taxes
|
79.7
|
|
Equity
compensation
|
20.9
|
|
Deduct:
|
|
Gains on land sales,
insurance recoveries, etc.
|
(27.3)
|
|
Total Adjusted
EBITDA
|
$
|
406.4
|
|
|
|
Consolidated total
debt
|
$
|
782.7
|
|
Divided by adjusted
EBITDA
|
406.4
|
|
Debt to Adjusted
EBITDA Ratio
|
1.93
|
|
|
|
|
* Amounts and
calculations are based on the definitions and provisions of the
Company's $600 million Credit Agreement dated September 11, 2013,
as amended and restated ("Credit Agreement") and, where applicable,
are based on the trailing four quarter amounts. "Adjusted EBITDA"
is calculated as defined for "Consolidated EBITDA" in the Credit
Agreement.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tupperware-brands-reports-first-quarter-2017-sales-and-eps-above-high-end-of-guidance-raises-full-year-sales-and-earnings-outlook-300444610.html
SOURCE Tupperware Brands Corporation