Coca‑Cola Consolidated, Inc. (NASDAQ:COKE) today reported operating
results for the second quarter and first half ended June 30,
2019.
“We are very pleased with our second quarter performance as well
as the solid results we generated in the first half of this year,”
said Frank Harrison, Chairman and CEO of Coca-Cola Consolidated.
“We are making excellent progress in leveraging the scale of our
business, improving our margins and driving consistent marketplace
execution across our expanded territories.”
Revenue grew 4.4% in the second quarter of 2019 and 4.0% in the
first half of 2019, driven primarily by increased pricing and
changes in our product mix. Revenue on our bottle/can Sparkling
beverages increased 5.4% in the second quarter as our Sparkling
brands continued to perform well at higher price points throughout
our territories. Revenue on our Still beverages grew 7.2% in the
second quarter, driven primarily by growth in our Sports Drinks and
Energy categories. We began distribution of Reign, a
fitness-focused energy beverage, in the second quarter, which drove
growth in our Energy drinks compared to the second quarter of 2018.
In addition, 2019 is our first full year of distributing BodyArmor
products, which also helped generate overall higher net sales in
our Still beverage category.
“Our strong revenue performance reflects our commitment to
margin improvement, the strength of our brands and the passion of
our teammates,” said Dave Katz, President and COO. “Importantly,
our Sparkling portfolio is performing very well in the marketplace,
enabling us to grow our value share in this category. We continue
to work closely with our brand partners to drive excitement and
higher levels of growth for our Still products as we respond to
increasing consumer demand for drinks with unique flavors and
functional benefits.”
Gross margin increased 100 basis points in the second
quarter of 2019 to 34.2%. On an adjusted(a) basis, gross margin
increased 150 basis points over second quarter 2018. Gross
margin for the first half of 2019 increased 130 basis points
on both an actual and an adjusted(a) basis. This improvement is
primarily the result of pricing actions that started in the second
half of 2018 to overcome significantly higher input costs. Reduced
transportation costs also contributed to higher second quarter 2019
margins as we continue to optimize our supply chain.
Selling, delivery and administrative (“SD&A”) expenses in
second quarter 2019 decreased $16.5 million, or 4.3%, versus
second quarter 2018, largely driven by a decrease in costs from our
system transformation initiative. System transformation expenses
related to our information technology system conversion were
$2.2 million in Q2 2019, versus $9.8 million in
Q2 2018. On an adjusted(a) basis, our second quarter 2019
SD&A expenses decreased $6.0 million, or 1.6%, versus the
same prior year period. Our adjusted(a) SD&A as a percent of
sales improved 180 basis points in Q2 2019 versus
Q2 2018 (28.6% versus 30.4%, respectively). Our second quarter
2019 expenses also reflect the benefit of the operating structure
changes we completed in 2018.
Income from operations in Q2 2019 and the first half of
2019 was $67.2 million and $87.4 million, respectively.
Adjusted(a) income from operations was $77.5 million in
Q2 2019, an increase of $43.5 million from Q2 2018.
Adjusted(a) income from operations was $98.3 million in the
first half of 2019, an increase of $67.8 million from the
first half of 2018.
Net income in Q2 2019 was $15.4 million compared to a
net loss of $3.9 million in Q2 2018, an improvement of
$19.3 million. For the first half of 2019, net income
increased $26.7 million compared to the first half of 2018.
Net income for Q2 2019 and the first half of 2019 was
adversely impacted by other expense of $31.2 million and
$47.0 million, respectively. Other expense for these periods
was primarily comprised of fair value adjustments to the
acquisition related contingent consideration liability, driven by
changes in the discount rate and future cash flow projections.
Capital spending for the first half of 2019 was
$57.6 million. We continue to anticipate capital spending in
fiscal 2019 will be in the range of $150 million to
$180 million as we remain focused on making prudent, long-term
investments to support the growth of the Company. Cash flows
provided by operations for the first half of 2019 were
$88.6 million, compared to $57.2 million in the first
half of 2018. Improved cash generation is a key management focus
area for 2019 as we strive to improve our profitability, reduce our
financial leverage and further strengthen our balance sheet.
(a) The discussion of the results for the
second quarter and first half ended June 30, 2019 includes
selected non-GAAP financial information, such as “adjusted”
results. The schedules in this press release reconcile such
non-GAAP financial measures to the most directly comparable GAAP
financial measures.
About Coca‑Cola Consolidated, Inc.
Coke Consolidated is the largest Coca-Cola bottler in the United
States. Our Purpose is to honor God, serve others, pursue
excellence and grow profitably. For 117 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 deliver beverages of
The Coca‑Cola Company and other partner companies in more
than 300 brands and flavors to 66 million consumers in territories
spanning 14 states and the District of Columbia. Headquartered
in Charlotte, N.C., Coke Consolidated is traded on the NASDAQ
Global Select Market 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 system transformation 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 2018 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.
FINANCIAL
STATEMENTSCONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS(UNAUDITED) |
|
|
Second Quarter |
|
|
First Half |
|
(in
thousands, except per share data) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net sales(b) |
|
$ |
1,273,659 |
|
|
$ |
1,220,003 |
|
|
$ |
2,376,571 |
|
|
$ |
2,284,760 |
|
Cost of sales |
|
|
837,880 |
|
|
|
815,295 |
|
|
|
1,551,484 |
|
|
|
1,522,411 |
|
Gross profit(b) |
|
|
435,779 |
|
|
|
404,708 |
|
|
|
825,087 |
|
|
|
762,349 |
|
Selling, delivery and
administrative expenses(b) |
|
|
368,565 |
|
|
|
385,029 |
|
|
|
737,719 |
|
|
|
761,667 |
|
Income from operations |
|
|
67,214 |
|
|
|
19,679 |
|
|
|
87,368 |
|
|
|
682 |
|
Interest expense, net |
|
|
11,995 |
|
|
|
12,744 |
|
|
|
24,881 |
|
|
|
24,790 |
|
Other expense, net |
|
|
31,181 |
|
|
|
9,818 |
|
|
|
47,032 |
|
|
|
5,308 |
|
Income (loss) before income
taxes |
|
|
24,038 |
|
|
|
(2,883 |
) |
|
|
15,455 |
|
|
|
(29,416 |
) |
Income tax expense
(benefit) |
|
|
7,182 |
|
|
|
(135 |
) |
|
|
4,177 |
|
|
|
(13,106 |
) |
Net income (loss) |
|
|
16,856 |
|
|
|
(2,748 |
) |
|
|
11,278 |
|
|
|
(16,310 |
) |
Less: Net income attributable to noncontrolling interest |
|
|
1,486 |
|
|
|
1,185 |
|
|
|
2,739 |
|
|
|
1,808 |
|
Net income (loss)
attributable to Coca-Cola Consolidated, Inc. |
|
$ |
15,370 |
|
|
$ |
(3,933 |
) |
|
$ |
8,539 |
|
|
$ |
(18,118 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share based on net loss attributable to Coca-Cola
Consolidated, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
1.64 |
|
|
$ |
(0.42 |
) |
|
$ |
0.91 |
|
|
$ |
(1.94 |
) |
Weighted average number of
Common Stock shares outstanding |
|
|
7,141 |
|
|
|
7,141 |
|
|
|
7,141 |
|
|
|
7,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Common Stock |
|
$ |
1.64 |
|
|
$ |
(0.42 |
) |
|
$ |
0.91 |
|
|
$ |
(1.94 |
) |
Weighted average number of
Class B Common Stock shares outstanding |
|
|
2,232 |
|
|
|
2,213 |
|
|
|
2,225 |
|
|
|
2,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share based on net loss attributable to Coca-Cola
Consolidated, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
1.64 |
|
|
$ |
(0.42 |
) |
|
$ |
0.91 |
|
|
$ |
(1.94 |
) |
Weighted average number of
Common Stock shares outstanding – assuming dilution |
|
|
9,421 |
|
|
|
9,354 |
|
|
|
9,415 |
|
|
|
9,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Common Stock |
|
$ |
1.63 |
|
|
$ |
(0.42 |
) |
|
$ |
0.90 |
|
|
$ |
(1.94 |
) |
Weighted average number of Class
B Common Stock shares outstanding – assuming dilution |
|
|
2,280 |
|
|
|
2,213 |
|
|
|
2,274 |
|
|
|
2,206 |
|
(b) Consideration paid to customers under
certain contractual arrangements for exclusive distribution rights
and sponsorship privileges was presented as SD&A expense in the
second quarter and first half of 2018. The Company has revised the
presentation of the consideration paid to a reduction of net sales
for the second quarter and first half of 2018, which it believes is
consistent with the presentation used by other companies in the
beverage industry.
FINANCIAL STATEMENTSCONSOLIDATED CONDENSED
BALANCE SHEETS(UNAUDITED) |
(in thousands) |
|
June 30, 2019 |
|
|
December 30, 2018 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,692 |
|
|
$ |
13,548 |
|
Trade accounts receivable,
net |
|
|
448,123 |
|
|
|
427,749 |
|
Accounts receivable,
other |
|
|
106,880 |
|
|
|
75,408 |
|
Inventories |
|
|
230,898 |
|
|
|
210,033 |
|
Prepaid expenses and other
current assets |
|
|
72,327 |
|
|
|
70,680 |
|
Total current assets |
|
|
863,920 |
|
|
|
797,418 |
|
Property, plant and equipment,
net |
|
|
962,402 |
|
|
|
990,532 |
|
Right of use assets -
operating leases |
|
|
102,151 |
|
|
|
- |
|
Leased property under
financing or capital leases, net |
|
|
20,944 |
|
|
|
23,720 |
|
Other assets |
|
|
113,033 |
|
|
|
115,490 |
|
Goodwill |
|
|
165,903 |
|
|
|
165,903 |
|
Other identifiable intangible
assets, net |
|
|
903,800 |
|
|
|
916,865 |
|
Total assets |
|
$ |
3,132,153 |
|
|
$ |
3,009,928 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
Current portion of obligations
under operating leases |
|
$ |
14,771 |
|
|
$ |
- |
|
Current portion of obligations
under financing or capital leases |
|
|
9,019 |
|
|
|
8,617 |
|
Accounts payable and accrued
expenses |
|
|
578,162 |
|
|
|
593,120 |
|
Total current liabilities |
|
|
601,952 |
|
|
|
601,737 |
|
Deferred income taxes |
|
|
131,498 |
|
|
|
127,174 |
|
Pension and postretirement
benefit obligations and other liabilities |
|
|
728,856 |
|
|
|
694,817 |
|
Noncurrent portion of
obligations under operating leases |
|
|
87,804 |
|
|
|
- |
|
Noncurrent portion of
obligations under financing or capital leases |
|
|
22,182 |
|
|
|
26,631 |
|
Long-term debt |
|
|
1,092,152 |
|
|
|
1,104,403 |
|
Total liabilities |
|
|
2,664,444 |
|
|
|
2,554,762 |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
367,991 |
|
|
|
358,187 |
|
Noncontrolling interest |
|
|
99,718 |
|
|
|
96,979 |
|
Total liabilities and equity |
|
$ |
3,132,153 |
|
|
$ |
3,009,928 |
|
FINANCIAL STATEMENTSCONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS(UNAUDITED) |
|
|
First Half |
|
(in
thousands) |
|
2019 |
|
|
2018 |
|
Cash Flows from
Operating Activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
11,278 |
|
|
$ |
(16,310 |
) |
Depreciation expense,
amortization of intangible assets and deferred proceeds, net |
|
|
90,828 |
|
|
|
93,907 |
|
Deferred income taxes |
|
|
4,324 |
|
|
|
(16,286 |
) |
Stock compensation
expense |
|
|
2,045 |
|
|
|
1,728 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
43,268 |
|
|
|
3,957 |
|
Change in assets and
liabilities |
|
|
(69,543 |
) |
|
|
(14,790 |
) |
Other |
|
|
6,386 |
|
|
|
5,036 |
|
Net cash provided by
operating activities |
|
$ |
88,586 |
|
|
$ |
57,242 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant
and equipment (exclusive of acquisitions) |
|
$ |
(57,581 |
) |
|
$ |
(85,279 |
) |
Acquisition of distribution
territories and regional manufacturing facilities related investing
activities |
|
|
- |
|
|
|
8,495 |
|
Other |
|
|
(4,317 |
) |
|
|
1,027 |
|
Net cash used in
investing activities |
|
$ |
(61,898 |
) |
|
$ |
(75,757 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
Borrowings under revolving
credit facility and proceeds from issuance of senior notes |
|
$ |
306,339 |
|
|
$ |
340,000 |
|
Payments on revolving credit
facility, term loan facility and senior notes |
|
|
(318,839 |
) |
|
|
(297,000 |
) |
Cash dividends paid |
|
|
(4,682 |
) |
|
|
(4,671 |
) |
Payments of acquisition
related contingent consideration |
|
|
(12,836 |
) |
|
|
(11,263 |
) |
Principal payments on
financing or capital lease obligations |
|
|
(4,261 |
) |
|
|
(4,194 |
) |
Debt issuance fees |
|
|
(265 |
) |
|
|
(1,535 |
) |
Net cash provided by
(used in) financing activities |
|
$ |
(34,544 |
) |
|
$ |
21,337 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash during period |
|
$ |
(7,856 |
) |
|
$ |
2,822 |
|
Cash at beginning of
period |
|
|
13,548 |
|
|
|
16,902 |
|
Cash at end of
period |
|
$ |
5,692 |
|
|
$ |
19,724 |
|
NON-GAAP FINANCIAL MEASURES(c)The
following tables reconcile reported GAAP results to adjusted
results (non-GAAP): |
|
|
Second Quarter 2019 |
|
(in
thousands, except per share data) |
|
Grossprofit |
|
|
SD&Aexpenses |
|
|
Income from operations |
|
|
Income beforeincome taxes |
|
|
Net income |
|
|
Basic net income per
share |
|
Reported results (GAAP) |
|
$ |
435,779 |
|
|
$ |
368,565 |
|
|
$ |
67,214 |
|
|
$ |
24,038 |
|
|
$ |
15,370 |
|
|
$ |
1.64 |
|
System transformation
expenses |
|
|
- |
|
|
|
(2,185 |
) |
|
|
2,185 |
|
|
|
2,185 |
|
|
|
1,643 |
|
|
|
0.18 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
29,222 |
|
|
|
21,975 |
|
|
|
2.34 |
|
Fair value adjustments for
commodity hedges |
|
|
4,874 |
|
|
|
(66 |
) |
|
|
4,940 |
|
|
|
4,940 |
|
|
|
3,715 |
|
|
|
0.40 |
|
Capitalization threshold
change for certain assets |
|
|
- |
|
|
|
(1,903 |
) |
|
|
1,903 |
|
|
|
1,903 |
|
|
|
1,431 |
|
|
|
0.15 |
|
Memphis-area manufacturing
plants consolidation |
|
|
1,294 |
|
|
|
- |
|
|
|
1,294 |
|
|
|
1,294 |
|
|
|
973 |
|
|
|
0.10 |
|
Other tax adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,815 |
) |
|
|
(0.30 |
) |
Total reconciling
items |
|
|
6,168 |
|
|
|
(4,154 |
) |
|
|
10,322 |
|
|
|
39,544 |
|
|
|
26,922 |
|
|
|
2.87 |
|
Adjusted results
(non-GAAP) |
|
$ |
441,947 |
|
|
$ |
364,411 |
|
|
$ |
77,536 |
|
|
$ |
63,582 |
|
|
$ |
42,292 |
|
|
$ |
4.51 |
|
|
|
Second Quarter 2018 |
|
(in
thousands, except per share data) |
|
Grossprofit |
|
|
SD&Aexpenses |
|
|
Income fromoperations |
|
|
Income (loss) beforeincome
taxes |
|
|
Net income (loss) |
|
|
Basic net income
(loss) per share |
|
Reported results (GAAP) |
|
$ |
404,708 |
|
|
$ |
385,029 |
|
|
$ |
19,679 |
|
|
$ |
(2,883 |
) |
|
$ |
(3,933 |
) |
|
$ |
(0.42 |
) |
System transformation
expenses |
|
|
28 |
|
|
|
(9,843 |
) |
|
|
9,871 |
|
|
|
9,871 |
|
|
|
7,423 |
|
|
|
0.79 |
|
Workforce optimization
expenses |
|
|
- |
|
|
|
(4,810 |
) |
|
|
4,810 |
|
|
|
4,810 |
|
|
|
3,617 |
|
|
|
0.39 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,143 |
|
|
|
6,876 |
|
|
|
0.74 |
|
Fair value adjustments for
commodity hedges |
|
|
(249 |
) |
|
|
48 |
|
|
|
(297 |
) |
|
|
(297 |
) |
|
|
(223 |
) |
|
|
(0.03 |
) |
Other tax adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,455 |
) |
|
|
(0.36 |
) |
Total reconciling
items |
|
|
(221 |
) |
|
|
(14,605 |
) |
|
|
14,384 |
|
|
|
23,527 |
|
|
|
14,238 |
|
|
|
1.53 |
|
Adjusted results
(non-GAAP) |
|
$ |
404,487 |
|
|
$ |
370,424 |
|
|
$ |
34,063 |
|
|
$ |
20,644 |
|
|
$ |
10,305 |
|
|
$ |
1.11 |
|
|
|
First Half 2019 |
|
(in
thousands, except per share data) |
|
Grossprofit |
|
|
SD&Aexpenses |
|
|
Income from operations |
|
|
Income beforeincome taxes |
|
|
Net income |
|
|
Basic net income per
share |
|
Reported results (GAAP) |
|
$ |
825,087 |
|
|
$ |
737,719 |
|
|
$ |
87,368 |
|
|
$ |
15,455 |
|
|
$ |
8,539 |
|
|
$ |
0.91 |
|
System transformation
expenses |
|
|
- |
|
|
|
(6,915 |
) |
|
|
6,915 |
|
|
|
6,915 |
|
|
|
5,200 |
|
|
|
0.56 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
43,268 |
|
|
|
32,538 |
|
|
|
3.47 |
|
Fair value adjustments for
commodity hedges |
|
|
969 |
|
|
|
2,649 |
|
|
|
(1,680 |
) |
|
|
(1,680 |
) |
|
|
(1,263 |
) |
|
|
(0.13 |
) |
Capitalization threshold
change for certain assets |
|
|
- |
|
|
|
(4,379 |
) |
|
|
4,379 |
|
|
|
4,379 |
|
|
|
3,293 |
|
|
|
0.35 |
|
Memphis-area manufacturing
plants consolidation |
|
|
1,294 |
|
|
|
- |
|
|
|
1,294 |
|
|
|
1,294 |
|
|
|
973 |
|
|
|
0.10 |
|
Other tax adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,660 |
) |
|
|
(0.39 |
) |
Total reconciling
items |
|
|
2,263 |
|
|
|
(8,645 |
) |
|
|
10,908 |
|
|
|
54,176 |
|
|
|
37,081 |
|
|
|
3.96 |
|
Adjusted results
(non-GAAP) |
|
$ |
827,350 |
|
|
$ |
729,074 |
|
|
$ |
98,276 |
|
|
$ |
69,631 |
|
|
$ |
45,620 |
|
|
$ |
4.87 |
|
|
|
First Half 2018 |
|
(in
thousands, except per share data) |
|
Grossprofit |
|
|
SD&Aexpenses |
|
|
Income fromoperations |
|
|
Income (loss) beforeincome
taxes |
|
|
Net income (loss) |
|
|
Basic net income
(loss) per share |
|
Reported results (GAAP) |
|
$ |
762,349 |
|
|
$ |
761,667 |
|
|
$ |
682 |
|
|
$ |
(29,416 |
) |
|
$ |
(18,118 |
) |
|
$ |
(1.94 |
) |
System transformation
expenses |
|
|
227 |
|
|
|
(22,094 |
) |
|
|
22,321 |
|
|
|
22,321 |
|
|
|
16,785 |
|
|
|
1.79 |
|
Workforce optimization
expenses |
|
|
- |
|
|
|
(4,810 |
) |
|
|
4,810 |
|
|
|
4,810 |
|
|
|
3,617 |
|
|
|
0.39 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,957 |
|
|
|
2,976 |
|
|
|
0.32 |
|
Fair value adjustments for
commodity hedges |
|
|
2,516 |
|
|
|
(154 |
) |
|
|
2,670 |
|
|
|
2,670 |
|
|
|
2,008 |
|
|
|
0.21 |
|
Other tax adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,798 |
) |
|
|
(0.61 |
) |
Total reconciling
items |
|
|
2,743 |
|
|
|
(27,058 |
) |
|
|
29,801 |
|
|
|
33,758 |
|
|
|
19,588 |
|
|
|
2.10 |
|
Adjusted results
(non-GAAP) |
|
$ |
765,092 |
|
|
$ |
734,609 |
|
|
$ |
30,483 |
|
|
$ |
4,342 |
|
|
$ |
1,470 |
|
|
$ |
0.16 |
|
(c) 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 system transformation transactions
with The Coca‑Cola Company and the conversion of its
information technology systems, 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.
|
|
MEDIA
CONTACT:Kimberly KuoSenior Vice President Public Affairs,
Communications & CommunitiesKimberly.Kuo@ccbcc.com(704)
557-4584 |
|
INVESTOR
CONTACT:Scott AnthonyExecutive Vice President &Chief
Financial Officer Scott.Anthony@ccbcc.com (704) 557-4633 |
|
A PDF accompanying this announcement is available at
http://ml.globenewswire.com/Resource/Download/c81ecbc3-0f8c-4d85-a33a-8a0dcf34db84
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