Coca-Cola Bottling Co. Consolidated Reports Second Quarter 2017 Results
August 08 2017 - 4:05PM
Coca‑Cola Bottling Co. Consolidated (NASDAQ:COKE) today reported
operating results for the second quarter ended July 2, 2017
and the first half of fiscal 2017.
Frank Harrison, Chairman and Chief Executive Officer, said, “We
maintained our momentum in the second quarter of 2017 as we
continued the expansion of our distribution territory and
manufacturing capacity while producing solid financial results. I
continue to be impressed with the dedication and passion our
teammates exhibit in extending our Company’s influence and purpose
into the communities, customers and consumers we serve every
day.”
Hank Flint, President and Chief Operating Officer, added, “We
are pleased with our second quarter and first half results.
Significant growth from acquisitions has been complemented with
consistent growth in comparable sales volume and revenue. We
believe our growth will allow us to leverage core capabilities and
improve performance in expansion distribution territories and
manufacturing facilities without sacrificing performance in our
legacy operations. We look forward to completing our multi-year
series of expansion transactions by the end of 2017 and thank our
teammates for their ongoing commitment to growing our Company and
its purpose.”
Second Quarter 2017 Operating Review
|
|
Second Quarter 2017% Change
Compared toSecond Quarter 2016 |
|
|
First Half 2017% Change
Compared toFirst Half 2016 |
|
|
|
Consolidated |
|
Comparable(a) |
|
|
Consolidated |
|
Comparable(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
39.1 |
% |
|
2.8 |
% |
|
|
38.8 |
% |
|
2.3 |
% |
Income from
operations |
|
|
-13.6 |
% |
|
7.1 |
% |
|
|
-9.3 |
% |
|
2.0 |
% |
Net income per share -
basic |
|
|
-59.5 |
% |
|
11.8 |
% |
|
|
-76.7 |
% |
|
9.8 |
% |
Equivalent unit case
volume(b) |
|
|
33.3 |
% |
|
1.3 |
% |
|
|
35.4 |
% |
|
1.9 |
% |
Sparkling |
|
|
29.8 |
% |
|
0.8 |
% |
|
|
32.3 |
% |
|
1.0 |
% |
Still |
|
|
41.2 |
% |
|
2.6 |
% |
|
|
43.1 |
% |
|
4.1 |
% |
(a) The discussion of the second quarter and first half
results includes selected non-GAAP financial information, such as
“comparable” results. See discussion of “Non-GAAP Financial
Measures” for descriptions and reconciliations.(b) Equivalent
unit case volume is defined as 24 8-ounce servings or 192
ounces.
- Consolidated net sales increased $328.9 million, or 39.1%,
to $1.17 billion in the second quarter of 2017, as compared to
$840.4 million in the second quarter of 2016. The increase in
net sales was primarily driven by acquisitions and an increase in
comparable net sales of 2.8%. The increase in comparable net sales
in the second quarter of 2017 was driven by an increase in
comparable equivalent unit case volume of 1.3%. The sparkling
product portfolio and the still product portfolio, which has a
higher sales price per unit than the sparkling portfolio, both
contributed to the increase in comparable net sales.
- Consolidated income from operations decreased
$7.4 million, or 13.6%, to $47.3 million in the second
quarter of 2017 from $54.7 million in the second quarter of
2016. The decrease was primarily driven by a $4.6 million increase
in expansion transaction expenses and $2.8 million of amortization
expense related to the conversion of distribution rights from
indefinite lived intangible assets to long lived intangible assets
in the first quarter of 2017.Comparable income from operations,
which represents the same geographic territories in all periods
presented, increased $3.2 million, or 7.1%, to
$47.5 million in the second quarter of 2017 from
$44.4 million in the second quarter of 2016. The increase was
primarily driven by a $19.1 million increase in comparable net
sales.
- Other expense is primarily comprised of the quarterly
mark-to-market fair value adjustment for the Company’s acquisition
related contingent consideration liability for territories acquired
from Coca‑Cola Refreshments USA, Inc. (“CCR”), a wholly-owned
subsidiary of The Coca‑Cola Company, since May 2014.
These mark-to-market adjustments are non-cash and reflect changes
in underlying assumptions used to calculate the estimated liability
in the acquired territories subject to sub-bottling fees. These
assumptions include long-term interest rates; projected future
operating results; and final settlements of territory values, as
agreed upon with CCR, which generally occur beyond one year from
the individual territory acquisition dates.The mark-to-market
adjustment was $16.2 million in the second quarter of 2017, as
compared to $16.3 million in the second quarter of 2016. The
adjustment in the second quarter of 2017 was primarily a result of
a change in the risk-free interest rate. The adjustment in the
second quarter of 2016 was driven primarily by a change in
projected future operating results of the acquired territories
subject to sub-bottling fees and a change in the risk-free interest
rate.Additionally, Other expense in the second quarter of 2017
included a $9.4 million charge related to net working capital
and other fair value adjustments for the Easton and Salisbury,
Maryland and Richmond and Yorktown, Virginia expansion territories
acquisitions and the Sandston, Virginia expansion facility
acquisition (the “January 2016 Expansion Transactions”). As these
adjustments for the January 2016 Expansion Transactions were made
beyond one year from the acquisition date, the Company recorded
these adjustments through its consolidated condensed statements of
operations. This amount remains payable to
The Coca‑Cola Company.
- Consolidated basic net income per share was $0.68 in the second
quarter of 2017, as compared to consolidated basic net income per
share of $1.68 in the second quarter of 2016. Comparable basic net
income per share was $2.36 in the second quarter of 2017, as
compared to $2.11 in the second quarter of 2016.
- Cash flows provided by operating activities were
$179.0 million in the first half of 2017, which was an
increase of $117.8 million as compared to the first half of
2016. In addition to the cash generated from the newly acquired
expansion territories, the increase was driven by a one-time fee of
$87.1 million received from CCR in the first quarter of 2017
for the conversion of the Company’s and its subsidiaries’ then
existing bottling agreements with The Coca‑Cola Company
or CCR to a new and final form comprehensive beverage agreement.In
the first half of 2017, cash payments by the Company for the
acquired territories and related assets totaled
$235.0 million, which includes $227.8 million for
expansion transactions and $15.6 million for the rights to
market, promote, distribute and sell glacéau products in certain
geographic territories, partially offset by $8.4 million in
proceeds from cold drink equipment acquired in the Expansion
Transactions. Additions to property, plant and equipment during the
first half of 2017 were $79.6 million, which excludes
$161.2 million in property, plant and equipment acquired in
the Company’s expansion transactions completed during the first
half of 2017.The Company expects to be a net user of cash in 2017
as it continues to acquire distribution rights in additional
territories and manufacturing facilities as part of the Company’s
previously announced Coca‑Cola system transformation transactions
with The Coca‑Cola Company.
About Coca‑Cola Bottling Co. Consolidated
Coke Consolidated is the largest independent Coca‑Cola bottler
in the United States. Our Purpose is to honor God, serve others,
pursue excellence and grow profitably. For 115 years, we have been
deeply committed to the consumers, customers and communities we
serve and passionate about the broad portfolio of beverages and
services we offer. We make, sell and distribute beverages of
The Coca‑Cola Company and other partner companies in more
than 300 brands and flavors across 16 states to over 64 million
consumers.
Headquartered in Charlotte, N.C., Coke Consolidated is traded on
the NASDAQ under the symbol COKE. More information about the
company is available at www.cokeconsolidated.com. Follow Coke
Consolidated on Facebook, Twitter, Instagram and LinkedIn.
Cautionary Information Regarding Forward-Looking
Statements
Certain statements contained in this news release are
“forward-looking statements” that involve risks and uncertainties.
The words “believe,” “expect,” “project,” “will,” “should,” “could”
and similar expressions are intended to identify those
forward-looking statements. Factors that might cause Coke
Consolidated’s actual results to differ materially from those
anticipated in forward-looking statements include, but are not
limited to: our inability to integrate the operations and employees
acquired in expansion transactions; lower than expected selling
pricing resulting from increased marketplace competition; changes
in how significant customers market or promote our products;
changes in our top customer relationships; changes in public and
consumer preferences related to nonalcoholic beverages, including
concerns related to obesity and health concerns; unfavorable
changes in the general economy; miscalculation of our need for
infrastructure investment; our inability to meet requirements under
beverage agreements; material changes in the performance
requirements for marketing funding support or our inability to meet
such requirements; decreases from historic levels of marketing
funding support; changes in The Coca‑Cola Company’s and
other beverage companies’ levels of advertising, marketing and
spending on brand innovation; the inability of our aluminum can or
plastic bottle suppliers to meet our purchase requirements; our
inability to offset higher raw material costs with higher selling
prices, increased bottle/can sales volume or reduced expenses;
consolidation of raw material suppliers; incremental risks
resulting from increased purchases of finished goods; sustained
increases in fuel costs or our inability to secure adequate
supplies of fuel; sustained increases in the cost of labor and
employment matters, product liability claims or product recalls;
technology failures or cyberattacks; changes in interest rates; the
impact of debt levels on operating flexibility and access to
capital and credit markets; adverse changes in our credit rating
(whether as a result of our operations or prospects or as a result
of those of The Coca‑Cola Company or other bottlers in
the Coca‑Cola system); changes in legal contingencies; legislative
changes affecting our distribution and packaging; adoption of
significant product labeling or warning requirements; additional
taxes resulting from tax audits; natural disasters and unfavorable
weather; global climate change or legal or regulatory responses to
such change; issues surrounding labor relations with unionized
employees; bottler system disputes; our use of estimates and
assumptions; changes in accounting standards; the impact of
volatility in the financial markets on access to the credit
markets; the impact of acquisitions or dispositions of bottlers by
their franchisors; changes in the inputs used to calculate our
acquisition related contingent consideration liability; and the
concentration of our capital stock ownership. These and other
factors are discussed in the Company’s regulatory filings with the
Securities and Exchange Commission, including those in the
Company’s fiscal 2016 Annual Report on Form 10-K, Item 1A. Risk
Factors. The forward-looking statements contained in this news
release speak only as of this date, and the Company does not assume
any obligation to update them except as required by law.
—Enjoy Coca‑Cola—
Financial Statements
COCA‑COLA BOTTLING CO.
CONSOLIDATED |
CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS |
(Unaudited) |
|
|
|
Second Quarter |
|
|
First Half |
|
(in
thousands, except per share data) |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Net sales |
|
$ |
1,169,291 |
|
|
$ |
840,384 |
|
|
$ |
2,034,993 |
|
|
$ |
1,465,840 |
|
Cost of sales |
|
|
754,113 |
|
|
|
520,677 |
|
|
|
1,287,794 |
|
|
|
902,235 |
|
Gross profit |
|
|
415,178 |
|
|
|
319,707 |
|
|
|
747,199 |
|
|
|
563,605 |
|
Selling, delivery and
administrative expenses |
|
|
367,865 |
|
|
|
264,971 |
|
|
|
686,278 |
|
|
|
496,468 |
|
Income from
operations |
|
|
47,313 |
|
|
|
54,736 |
|
|
|
60,921 |
|
|
|
67,137 |
|
Interest expense,
net |
|
|
10,440 |
|
|
|
9,808 |
|
|
|
19,910 |
|
|
|
19,169 |
|
Other expense, net |
|
|
25,549 |
|
|
|
16,274 |
|
|
|
37,795 |
|
|
|
33,425 |
|
Loss on exchange of
franchise territory |
|
|
- |
|
|
|
692 |
|
|
|
- |
|
|
|
692 |
|
Income before income
taxes |
|
|
11,324 |
|
|
|
27,962 |
|
|
|
3,216 |
|
|
|
13,851 |
|
Income tax expense |
|
|
3,743 |
|
|
|
10,638 |
|
|
|
52 |
|
|
|
5,560 |
|
Net income |
|
|
7,581 |
|
|
|
17,324 |
|
|
|
3,164 |
|
|
|
8,291 |
|
Less: Net
income attributable to noncontrolling interest |
|
|
1,233 |
|
|
|
1,672 |
|
|
|
1,867 |
|
|
|
2,680 |
|
Net income
attributable to Coca-Cola Bottling Co. Consolidated |
|
$ |
6,348 |
|
|
$ |
15,652 |
|
|
$ |
1,297 |
|
|
$ |
5,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income per share based on net income attributable to Coca-Cola
Bottling Co. Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
0.68 |
|
|
$ |
1.68 |
|
|
$ |
0.14 |
|
|
$ |
0.60 |
|
Weighted average number
of Common Stock shares outstanding |
|
|
7,141 |
|
|
|
7,141 |
|
|
|
7,141 |
|
|
|
7,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Common
Stock |
|
$ |
0.68 |
|
|
$ |
1.68 |
|
|
$ |
0.14 |
|
|
$ |
0.60 |
|
Weighted average number
of Class B Common Stock shares outstanding |
|
|
2,193 |
|
|
|
2,172 |
|
|
|
2,185 |
|
|
|
2,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per share based on net income attributable to Coca-Cola
Bottling Co. Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
0.68 |
|
|
$ |
1.67 |
|
|
$ |
0.14 |
|
|
$ |
0.59 |
|
Weighted average number
of Common Stock shares outstanding – assuming dilution |
|
|
9,374 |
|
|
|
9,353 |
|
|
|
9,366 |
|
|
|
9,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Common
Stock |
|
$ |
0.67 |
|
|
$ |
1.67 |
|
|
$ |
0.13 |
|
|
$ |
0.59 |
|
Weighted average number
of Class B Common Stock shares outstanding – assuming dilution |
|
|
2,233 |
|
|
|
2,212 |
|
|
|
2,225 |
|
|
|
2,204 |
|
COCA‑COLA BOTTLING CO.
CONSOLIDATED |
CONSOLIDATED CONDENSED BALANCE
SHEETS |
(Unaudited) |
|
(in
thousands) |
|
July 2, 2017 |
|
|
January 1, 2017 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
43,514 |
|
|
$ |
21,850 |
|
Trade accounts
receivable, net |
|
|
383,434 |
|
|
|
267,213 |
|
Accounts receivable,
other |
|
|
117,115 |
|
|
|
97,361 |
|
Inventories |
|
|
200,441 |
|
|
|
143,553 |
|
Prepaid expenses and
other current assets |
|
|
66,871 |
|
|
|
63,834 |
|
Total current assets |
|
|
811,375 |
|
|
|
593,811 |
|
Property, plant and
equipment, net |
|
|
977,553 |
|
|
|
812,989 |
|
Leased property under
capital leases, net |
|
|
30,689 |
|
|
|
33,552 |
|
Other assets |
|
|
99,587 |
|
|
|
86,091 |
|
Franchise rights |
|
|
- |
|
|
|
533,040 |
|
Goodwill |
|
|
160,427 |
|
|
|
144,586 |
|
Other identifiable
intangible assets, net |
|
|
811,810 |
|
|
|
245,415 |
|
Total assets |
|
$ |
2,891,441 |
|
|
$ |
2,449,484 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
Current portion of
obligations under capital leases |
|
$ |
7,875 |
|
|
$ |
7,527 |
|
Accounts payable and
accrued expenses |
|
|
594,213 |
|
|
|
450,380 |
|
Total current liabilities |
|
|
602,088 |
|
|
|
457,907 |
|
Deferred income
taxes |
|
|
146,649 |
|
|
|
174,854 |
|
Pension, postretirement
and other liabilities |
|
|
658,884 |
|
|
|
505,251 |
|
Long-term debt and
obligations under capital leases |
|
|
1,117,729 |
|
|
|
948,448 |
|
Total liabilities |
|
|
2,525,350 |
|
|
|
2,086,460 |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
278,331 |
|
|
|
277,131 |
|
Noncontrolling
interest |
|
|
87,760 |
|
|
|
85,893 |
|
Total liabilities and equity |
|
$ |
2,891,441 |
|
|
$ |
2,449,484 |
|
COCA‑COLA BOTTLING CO.
CONSOLIDATED |
CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
|
|
First Half |
|
(in
thousands) |
|
2017 |
|
|
2016 |
|
Cash Flows from
Operating Activities: |
|
|
|
|
|
|
|
|
Consolidated net
income |
|
$ |
3,164 |
|
|
$ |
8,291 |
|
Depreciation expense
and amortization of intangible assets and deferred proceeds |
|
|
77,047 |
|
|
|
52,329 |
|
Deferred income
taxes |
|
|
(24,918 |
) |
|
|
(1,476 |
) |
Proceeds from
conversion of Legacy Territories bottling agreements |
|
|
87,066 |
|
|
|
- |
|
Stock compensation
expense |
|
|
4,577 |
|
|
|
2,896 |
|
Fair value adjustment
of acquisition related contingent consideration |
|
|
28,365 |
|
|
|
33,425 |
|
Change in assets and
liabilities (exclusive of acquisition) |
|
|
1,114 |
|
|
|
(37,890 |
) |
Other |
|
|
2,556 |
|
|
|
3,622 |
|
Net cash
provided by operating activities |
|
|
178,971 |
|
|
|
61,197 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
Acquisition of
Expansion Territories, net of cash acquired, glacéau distribution
agreementconsideration and proceeds from cold drink equipment
acquired in Expansion Transactions |
|
|
(234,957 |
) |
|
|
(174,695 |
) |
Additions to property,
plant and equipment (exclusive of acquisition) |
|
|
(79,607 |
) |
|
|
(79,625 |
) |
Other |
|
|
(617 |
) |
|
|
(6,352 |
) |
Net cash used
in investing activities |
|
|
(315,181 |
) |
|
|
(260,672 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
Borrowings under
Revolving Credit Facility, Term Loan Facility and Senior Notes |
|
|
363,000 |
|
|
|
610,000 |
|
Payment on Revolving
Credit Facility and Senior Notes |
|
|
(190,000 |
) |
|
|
(399,757 |
) |
Cash dividends
paid |
|
|
(4,662 |
) |
|
|
(4,652 |
) |
Payment on acquisition
related contingent consideration |
|
|
(6,556 |
) |
|
|
(7,926 |
) |
Principal payments on
capital lease obligations |
|
|
(3,695 |
) |
|
|
(3,488 |
) |
Other |
|
|
(213 |
) |
|
|
(877 |
) |
Net cash
provided by financing activities |
|
|
157,874 |
|
|
|
193,300 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
during the period |
|
|
21,664 |
|
|
|
(6,175 |
) |
Cash at beginning of
period |
|
|
21,850 |
|
|
|
55,498 |
|
Cash at end of
period |
|
$ |
43,514 |
|
|
$ |
49,323 |
|
Non-GAAP Financial Measures
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). However,
management believes that certain non-GAAP financial measures
provide users with additional meaningful financial information that
should be considered when assessing the Company’s ongoing
performance. Further, given the transformation of the Company’s
business through expansion transactions with
The Coca‑Cola Company, the Company believes these
non-GAAP financial measures allow users to better appreciate the
impact of these transactions on the Company’s performance.
Management also uses these non-GAAP financial measures in making
financial, operating and planning decisions and in evaluating the
Company's performance. Non-GAAP financial measures should be viewed
in addition to, and not as an alternative for, the Company's
reported results prepared in accordance with GAAP. The Company’s
non-GAAP financial information does not represent a comprehensive
basis of accounting.
The following tables reconcile reported GAAP results to
comparable results for the second quarter of 2017 and the second
quarter of 2016:
|
|
Second Quarter 2017 |
|
(in
thousands, except per share data) |
|
Netsales |
|
|
Income fromoperations |
|
|
Income beforeincome
taxes |
|
|
Netincome |
|
|
Basic net incomeper
share |
|
Reported
results (GAAP) |
|
$ |
1,169,291 |
|
|
$ |
47,313 |
|
|
$ |
11,324 |
|
|
$ |
6,348 |
|
|
$ |
0.68 |
|
Fair value adjustments
for commodity hedges |
|
|
- |
|
|
|
1,187 |
|
|
|
1,187 |
|
|
|
729 |
|
|
|
0.08 |
|
Amortization of
converted distribution rights |
|
|
- |
|
|
|
2,760 |
|
|
|
2,760 |
|
|
|
1,695 |
|
|
|
0.18 |
|
January 2016 Expansion
Transactions settlement |
|
|
- |
|
|
|
- |
|
|
|
9,442 |
|
|
|
5,797 |
|
|
|
0.62 |
|
2017 & 2016
acquisitions impact |
|
|
(472,649 |
) |
|
|
(15,320 |
) |
|
|
(15,320 |
) |
|
|
(9,406 |
) |
|
|
(1.00 |
) |
Expansion transaction
expenses |
|
|
- |
|
|
|
11,574 |
|
|
|
11,574 |
|
|
|
7,106 |
|
|
|
0.75 |
|
Fair value adjustment
of acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
16,119 |
|
|
|
9,897 |
|
|
|
1.05 |
|
Total
reconciling items |
|
|
(472,649 |
) |
|
|
201 |
|
|
|
25,762 |
|
|
|
15,818 |
|
|
|
1.68 |
|
Comparable
results (non-GAAP) |
|
$ |
696,642 |
|
|
$ |
47,514 |
|
|
$ |
37,086 |
|
|
$ |
22,166 |
|
|
$ |
2.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2016 |
|
(in
thousands, except per share data) |
|
Netsales |
|
|
Income fromoperations |
|
|
Income beforeincome
taxes |
|
|
Netincome |
|
|
Basic net incomeper
share |
|
Reported
results (GAAP) |
|
$ |
840,384 |
|
|
$ |
54,736 |
|
|
$ |
27,962 |
|
|
$ |
15,652 |
|
|
$ |
1.68 |
|
Fair value adjustments
for commodity hedges |
|
|
- |
|
|
|
(2,770 |
) |
|
|
(2,770 |
) |
|
|
(1,704 |
) |
|
|
(0.18 |
) |
2016 acquisitions
impact |
|
|
(162,819 |
) |
|
|
(13,502 |
) |
|
|
(13,502 |
) |
|
|
(8,304 |
) |
|
|
(0.89 |
) |
Expansion transaction
expenses |
|
|
- |
|
|
|
7,005 |
|
|
|
7,005 |
|
|
|
4,308 |
|
|
|
0.46 |
|
Exchange of franchise
territories |
|
|
- |
|
|
|
- |
|
|
|
692 |
|
|
|
426 |
|
|
|
0.05 |
|
Impact of changes in
product supply governance |
|
|
- |
|
|
|
(1,105 |
) |
|
|
(1,105 |
) |
|
|
(680 |
) |
|
|
(0.07 |
) |
Fair value adjustment
of acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
16,274 |
|
|
|
10,009 |
|
|
|
1.06 |
|
Total
reconciling items |
|
|
(162,819 |
) |
|
|
(10,372 |
) |
|
|
6,594 |
|
|
|
4,055 |
|
|
|
0.43 |
|
Comparable
results (non-GAAP) |
|
$ |
677,565 |
|
|
$ |
44,364 |
|
|
$ |
34,556 |
|
|
$ |
19,707 |
|
|
$ |
2.11 |
|
The following tables reconcile reported GAAP results to
comparable results for the first half of 2017 and the first half of
2016:
|
|
First Half 2017 |
|
(in
thousands, except per share data) |
|
Netsales |
|
|
Income fromoperations |
|
|
Income beforeincome
taxes |
|
|
Netincome |
|
|
Basic net incomeper
share |
|
Reported
results (GAAP) |
|
$ |
2,034,993 |
|
|
$ |
60,921 |
|
|
$ |
3,216 |
|
|
$ |
1,297 |
|
|
$ |
0.14 |
|
Fair value adjustments
for commodity hedges |
|
|
- |
|
|
|
860 |
|
|
|
860 |
|
|
|
528 |
|
|
|
0.06 |
|
Amortization of
converted distribution rights |
|
|
- |
|
|
|
2,760 |
|
|
|
2,760 |
|
|
|
1,695 |
|
|
|
0.18 |
|
January 2016 Expansion
Transactions settlement |
|
|
- |
|
|
|
- |
|
|
|
9,442 |
|
|
|
5,797 |
|
|
|
0.62 |
|
2017 & 2016
acquisitions impact |
|
|
(737,555 |
) |
|
|
(19,770 |
) |
|
|
(19,770 |
) |
|
|
(12,138 |
) |
|
|
(1.29 |
) |
Expansion transaction
expenses |
|
|
- |
|
|
|
19,226 |
|
|
|
19,226 |
|
|
|
11,804 |
|
|
|
1.24 |
|
Fair value adjustment
of acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
28,365 |
|
|
|
17,416 |
|
|
|
1.86 |
|
Total
reconciling items |
|
|
(737,555 |
) |
|
|
3,076 |
|
|
|
40,883 |
|
|
|
25,102 |
|
|
|
2.67 |
|
Comparable
results (non-GAAP) |
|
$ |
1,297,438 |
|
|
$ |
63,997 |
|
|
$ |
44,099 |
|
|
$ |
26,399 |
|
|
$ |
2.81 |
|
|
|
First Half 2016 |
|
(in
thousands, except per share data) |
|
Netsales |
|
|
Income fromoperations |
|
|
Income beforeincome
taxes |
|
|
Netincome |
|
|
Basic net incomeper
share |
|
Reported
results (GAAP) |
|
$ |
1,465,840 |
|
|
$ |
67,137 |
|
|
$ |
13,851 |
|
|
$ |
5,611 |
|
|
$ |
0.60 |
|
Fair value adjustments
for commodity hedges |
|
|
- |
|
|
|
(3,810 |
) |
|
|
(3,810 |
) |
|
|
(2,344 |
) |
|
|
(0.25 |
) |
2016 acquisitions
impact |
|
|
(198,130 |
) |
|
|
(14,708 |
) |
|
|
(14,708 |
) |
|
|
(9,046 |
) |
|
|
(0.97 |
) |
Expansion transaction
expenses |
|
|
- |
|
|
|
13,428 |
|
|
|
13,428 |
|
|
|
8,258 |
|
|
|
0.89 |
|
Special charitable
contribution |
|
|
- |
|
|
|
4,000 |
|
|
|
4,000 |
|
|
|
2,460 |
|
|
|
0.26 |
|
Exchange of franchise
territories |
|
|
- |
|
|
|
- |
|
|
|
692 |
|
|
|
426 |
|
|
|
0.05 |
|
Impact of changes in
product supply governance |
|
|
- |
|
|
|
(3,318 |
) |
|
|
(3,318 |
) |
|
|
(2,041 |
) |
|
|
(0.22 |
) |
Fair value adjustment
of acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
33,425 |
|
|
|
20,557 |
|
|
|
2.20 |
|
Total
reconciling items |
|
|
(198,130 |
) |
|
|
(4,408 |
) |
|
|
29,709 |
|
|
|
18,270 |
|
|
|
1.96 |
|
Comparable
results (non-GAAP) |
|
$ |
1,267,710 |
|
|
$ |
62,729 |
|
|
$ |
43,560 |
|
|
$ |
23,881 |
|
|
$ |
2.56 |
|
Media Contact:
Kimberly Kuo
Senior Vice President, Public Affairs,
Communications and Communities
704-557-4584
Investor Contact:
Clifford M. Deal, III
Senior Vice President & CFO
704-557-4633
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