Coca‑Cola Consolidated, Inc. (NASDAQ:COKE) today reported operating
results for the third quarter and first nine months ended
September 29, 2019.
“We are very pleased with the strength of our top line
performance and ability to translate this growth into improved
operating results and strong free cash flow,” said Frank Harrison,
Chairman and CEO of Coca‑Cola Consolidated. “Our teammates continue
to execute with excellence, helping our customers grow their
businesses and satisfy consumers throughout our territories. We
continue to identify opportunities to drive value in our business
as we look to finish 2019 strong and start 2020 with solid
momentum.”
Revenue grew 5.6% in the third quarter of 2019, driven primarily
by a 4.6% increase in volume, with strong performance in both
Sparkling and Still categories. We cycled pricing initiatives that
were implemented in the third quarter of 2018, thereby reducing the
contribution from pricing as compared to the revenue growth in the
first half of 2019. Revenue from our bottle/can Sparkling beverages
increased 6.1% in the third quarter of 2019 as our Sparkling brands
continue to demonstrate strength across our markets. Revenue from
our Still beverages grew 9.4% in the third quarter of 2019, driven
primarily by growth in our Sports Drinks category related to the
introduction of BodyArmor products into our portfolio in the fourth
quarter of 2018. Revenue grew 4.6% in the first nine months of 2019
through a combination of increased pricing, a continued product mix
shift to higher revenue products and a 1.8% increase in physical
case volume.
“Our strong results this quarter are a testament to the
excellent execution by all of our teammates as well as the high
level of collaboration and innovation from our brand partners,”
said Dave Katz, President and Chief Operating Officer. “We have
made great strides in evolving our product portfolio to respond to
the changing tastes of our consumers and we are excited about the
growth prospects of upcoming brand and package offerings.”
“We also continue to make significant reinvestments in our
business as we evolve our operating model to accommodate future
growth and portfolio expansion,” Mr. Katz continued. “The
consolidation of our two manufacturing facilities in the Memphis
region and the successful opening of our new, automated
distribution facility in Erlanger, KY are two examples of our
commitment to drive efficiency and reinvest for long-term
growth.”
Gross margin declined 30 basis points in the third quarter
of 2019 to 34.0%. On an adjusted(a) basis, gross margin declined
10 basis points versus the third quarter of 2018. The slight
decline in gross margin can be attributed to the continued shift in
product mix from Sparkling beverages to Still products, as well as
certain costs incurred to optimize our manufacturing operations.
Gross margin for the first nine months of 2019 increased
80 basis points on both an actual and an adjusted(a) basis.
This improvement is primarily the result of successful pricing
actions executed in the second half of 2018 to overcome rising
input costs.
Selling, delivery and administrative (“SD&A”) expenses in
the third quarter of 2019 increased $10.1 million, or 2.7%,
versus the third quarter of 2018, largely driven by increased
payroll and other benefits expenses. SD&A expenses as a
percentage of net sales improved 80 basis points in the third
quarter of 2019 versus the third quarter of 2018, due primarily to
a $10.3 million reduction in expenses related to our system
transformation work, which concluded in the second quarter of 2019.
Adjusted(a) SD&A expenses in the third quarter of 2019
increased $18.8 million, or 5.2%, versus the third quarter of
2018, reflecting wage inflation and labor expense related to our
higher volume. Our adjusted(a) SD&A expenses as a percentage of
net sales improved 10 basis points in the third quarter of
2019 versus the third quarter of 2018 (29.6% versus 29.7%,
respectively).
Income from operations in the third quarter and the first nine
months of 2019 was $53.8 million and $141.2 million,
respectively. Adjusted(a) income from operations was
$58.7 million in the third quarter of 2019, an increase of
$3.5 million from the third quarter of 2018. Adjusted(a)
income from operations was $157.0 million in the first nine
months of 2019, an increase of $71.2 million from the same
period last year.
Net income in the third quarter of 2019 was $13.0 million,
compared to $25.2 million in the third quarter of 2018, a
decline of $12.2 million. For the first nine months of 2019,
net income increased $14.5 million compared to the first nine
months of 2018. Net income for the third quarter and the first nine
months of 2019 was adversely impacted by fair value adjustments to
our acquisition related contingent consideration liability, driven
by changes in the discount rate and future cash flow projections.
Fair value adjustments to this liability are non-cash in nature and
a routine part of our quarterly financial closing process.
Capital spending for the first nine months of 2019 was
$96.7 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 future growth. Cash flows provided by
operations for the first nine months of 2019 were
$204.6 million, compared to $26.0 million in the same
period of 2018. Improved cash generation continues to be a key
management focus area 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
third quarter and first nine months ended September 29, 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)
|
|
Third Quarter |
|
|
First Nine Months |
|
(in
thousands, except per share data) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net sales(b) |
|
$ |
1,271,029 |
|
|
$ |
1,204,033 |
|
|
$ |
3,647,600 |
|
|
$ |
3,488,793 |
|
Cost of sales |
|
|
838,805 |
|
|
|
791,317 |
|
|
|
2,390,289 |
|
|
|
2,313,728 |
|
Gross profit(b) |
|
|
432,224 |
|
|
|
412,716 |
|
|
|
1,257,311 |
|
|
|
1,175,065 |
|
Selling, delivery and
administrative expenses(b) |
|
|
378,378 |
|
|
|
368,312 |
|
|
|
1,116,097 |
|
|
|
1,129,979 |
|
Income from operations |
|
|
53,846 |
|
|
|
44,404 |
|
|
|
141,214 |
|
|
|
45,086 |
|
Interest expense, net |
|
|
10,965 |
|
|
|
12,827 |
|
|
|
35,846 |
|
|
|
37,617 |
|
Other income (expense),
net |
|
|
(20,711 |
) |
|
|
1,696 |
|
|
|
(67,743 |
) |
|
|
(3,612 |
) |
Gain on exchange
transactions |
|
|
- |
|
|
|
10,170 |
|
|
|
- |
|
|
|
10,170 |
|
Income before income
taxes |
|
|
22,170 |
|
|
|
43,443 |
|
|
|
37,625 |
|
|
|
14,027 |
|
Income tax expense |
|
|
6,624 |
|
|
|
16,493 |
|
|
|
10,801 |
|
|
|
3,387 |
|
Net income |
|
|
15,546 |
|
|
|
26,950 |
|
|
|
26,824 |
|
|
|
10,640 |
|
Less: Net income attributable to noncontrolling interest |
|
|
2,540 |
|
|
|
1,786 |
|
|
|
5,279 |
|
|
|
3,594 |
|
Net income
attributable to Coca-Cola Consolidated, Inc. |
|
$ |
13,006 |
|
|
$ |
25,164 |
|
|
$ |
21,545 |
|
|
$ |
7,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share based on net loss attributable to Coca-Cola Consolidated,
Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
1.39 |
|
|
$ |
2.69 |
|
|
$ |
2.30 |
|
|
$ |
0.75 |
|
Weighted average number of
Common Stock shares outstanding |
|
|
7,141 |
|
|
|
7,141 |
|
|
|
7,141 |
|
|
|
7,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Common Stock |
|
$ |
1.39 |
|
|
$ |
2.69 |
|
|
$ |
2.30 |
|
|
$ |
0.75 |
|
Weighted average number of
Class B Common Stock shares outstanding |
|
|
2,232 |
|
|
|
2,213 |
|
|
|
2,228 |
|
|
|
2,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share based on net loss attributable to Coca-Cola Consolidated,
Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
1.38 |
|
|
$ |
2.69 |
|
|
$ |
2.29 |
|
|
$ |
0.75 |
|
Weighted average number of
Common Stock shares outstanding – assuming dilution |
|
|
9,413 |
|
|
|
9,405 |
|
|
|
9,409 |
|
|
|
9,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Common Stock |
|
$ |
1.38 |
|
|
$ |
2.68 |
|
|
$ |
2.28 |
|
|
$ |
0.74 |
|
Weighted average number of Class
B Common Stock shares outstanding – assuming dilution |
|
|
2,272 |
|
|
|
2,264 |
|
|
|
2,268 |
|
|
|
2,259 |
|
(b) Consideration paid to customers under
certain contractual arrangements for exclusive distribution rights
and sponsorship privileges was presented as SD&A expense in the
third quarter and first nine months of 2018. The Company has
revised the presentation of the consideration paid to a reduction
of net sales for the third quarter and first nine months 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) |
|
September 29, 2019 |
|
|
December 30, 2018 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,989 |
|
|
$ |
13,548 |
|
Trade accounts receivable,
net |
|
|
435,218 |
|
|
|
427,749 |
|
Accounts receivable,
other |
|
|
100,538 |
|
|
|
75,408 |
|
Inventories |
|
|
231,752 |
|
|
|
210,033 |
|
Prepaid expenses and other
current assets |
|
|
78,397 |
|
|
|
70,680 |
|
Total current assets |
|
|
851,894 |
|
|
|
797,418 |
|
Property, plant and equipment,
net |
|
|
957,197 |
|
|
|
990,532 |
|
Right of use assets -
operating leases |
|
|
115,981 |
|
|
|
- |
|
Leased property under
financing or capital leases, net |
|
|
19,452 |
|
|
|
23,720 |
|
Other assets |
|
|
111,021 |
|
|
|
115,490 |
|
Goodwill |
|
|
165,903 |
|
|
|
165,903 |
|
Other identifiable intangible
assets, net |
|
|
897,270 |
|
|
|
916,865 |
|
Total assets |
|
$ |
3,118,718 |
|
|
$ |
3,009,928 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
Current portion of obligations
under operating leases |
|
$ |
14,929 |
|
|
$ |
- |
|
Current portion of obligations
under financing or capital leases |
|
|
9,209 |
|
|
|
8,617 |
|
Accounts payable and accrued
expenses |
|
|
589,035 |
|
|
|
593,120 |
|
Total current liabilities |
|
|
613,173 |
|
|
|
601,737 |
|
Deferred income taxes |
|
|
132,428 |
|
|
|
127,174 |
|
Pension and postretirement
benefit obligations and other liabilities |
|
|
742,971 |
|
|
|
694,817 |
|
Noncurrent portion of
obligations under operating leases |
|
|
101,884 |
|
|
|
- |
|
Noncurrent portion of
obligations under financing or capital leases |
|
|
19,812 |
|
|
|
26,631 |
|
Long-term debt |
|
|
1,027,343 |
|
|
|
1,104,403 |
|
Total liabilities |
|
|
2,637,611 |
|
|
|
2,554,762 |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
378,849 |
|
|
|
358,187 |
|
Noncontrolling interest |
|
|
102,258 |
|
|
|
96,979 |
|
Total liabilities and equity |
|
$ |
3,118,718 |
|
|
$ |
3,009,928 |
|
FINANCIAL STATEMENTSCONSOLIDATED
CONDENSED STATEMENTS OF CASH
FLOWS(UNAUDITED)
|
|
First Nine Months |
|
(in
thousands) |
|
2019 |
|
|
2018 |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
26,824 |
|
|
$ |
10,640 |
|
Depreciation expense,
amortization of intangible assets and deferred proceeds, net |
|
|
136,416 |
|
|
|
140,496 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
62,017 |
|
|
|
1,584 |
|
Deferred income taxes |
|
|
5,254 |
|
|
|
9,903 |
|
Stock compensation
expense |
|
|
2,045 |
|
|
|
4,494 |
|
Change in assets and
liabilities |
|
|
(39,071 |
) |
|
|
(138,459 |
) |
Gain on exchange
transactions |
|
|
- |
|
|
|
(10,170 |
) |
Other |
|
|
11,098 |
|
|
|
7,542 |
|
Net cash provided by
operating activities |
|
$ |
204,583 |
|
|
$ |
26,030 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant
and equipment (exclusive of acquisitions) |
|
$ |
(96,747 |
) |
|
$ |
(113,104 |
) |
Acquisition of distribution
territories and regional manufacturing plants related investing
activities |
|
|
- |
|
|
|
5,600 |
|
Other |
|
|
(5,339 |
) |
|
|
1,457 |
|
Net cash used in
investing activities |
|
$ |
(102,086 |
) |
|
$ |
(106,047 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
Payments on revolving credit
facility, term loan facility and senior notes |
|
$ |
(508,839 |
) |
|
$ |
(329,500 |
) |
Borrowings under revolving
credit facility and proceeds from issuance of senior notes |
|
|
431,339 |
|
|
|
435,000 |
|
Payments of acquisition
related contingent consideration |
|
|
(18,784 |
) |
|
|
(18,312 |
) |
Cash dividends paid |
|
|
(7,026 |
) |
|
|
(7,014 |
) |
Principal payments on
financing or capital lease obligations |
|
|
(6,441 |
) |
|
|
(6,191 |
) |
Debt issuance fees |
|
|
(305 |
) |
|
|
(1,531 |
) |
Net cash provided by
(used in) financing activities |
|
$ |
(110,056 |
) |
|
$ |
72,452 |
|
|
|
|
|
|
|
|
|
|
Net decrease in cash during
period |
|
$ |
(7,559 |
) |
|
$ |
(7,565 |
) |
Cash at beginning of
period |
|
|
13,548 |
|
|
|
16,902 |
|
Cash at end of
period |
|
$ |
5,989 |
|
|
$ |
9,337 |
|
NON-GAAP FINANCIAL MEASURES(c)The
following tables reconcile reported GAAP results to adjusted
results (non-GAAP):
|
|
Third 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) |
|
$ |
432,224 |
|
|
$ |
378,378 |
|
|
$ |
53,846 |
|
|
$ |
22,170 |
|
|
$ |
13,006 |
|
|
$ |
1.39 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
18,749 |
|
|
|
14,099 |
|
|
|
1.51 |
|
Fair value adjustments for
commodity hedges |
|
|
(487 |
) |
|
|
(74 |
) |
|
|
(413 |
) |
|
|
(413 |
) |
|
|
(311 |
) |
|
|
(0.04 |
) |
Capitalization threshold
change for certain assets |
|
|
- |
|
|
|
(1,732 |
) |
|
|
1,732 |
|
|
|
1,732 |
|
|
|
1,302 |
|
|
|
0.14 |
|
Supply chain optimization and
consolidation |
|
|
3,581 |
|
|
|
- |
|
|
|
3,581 |
|
|
|
3,581 |
|
|
|
2,693 |
|
|
|
0.29 |
|
Other tax adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,482 |
|
|
|
0.15 |
|
Total reconciling
items |
|
|
3,094 |
|
|
|
(1,806 |
) |
|
|
4,900 |
|
|
|
23,649 |
|
|
|
19,265 |
|
|
|
2.05 |
|
Adjusted results
(non-GAAP) |
|
$ |
435,318 |
|
|
$ |
376,572 |
|
|
$ |
58,746 |
|
|
$ |
45,819 |
|
|
$ |
32,271 |
|
|
$ |
3.44 |
|
|
|
Third Quarter 2018 |
|
(in
thousands, except per share data) |
|
Grossprofit |
|
|
SD&Aexpenses |
|
|
Income fromoperations |
|
|
Income beforeincome taxes |
|
|
Net income |
|
|
Basic net income per
share |
|
Reported results
(GAAP) |
|
$ |
412,716 |
|
|
$ |
368,312 |
|
|
$ |
44,404 |
|
|
$ |
43,443 |
|
|
$ |
25,164 |
|
|
$ |
2.69 |
|
System transformation
expenses |
|
|
112 |
|
|
|
(10,305 |
) |
|
|
10,417 |
|
|
|
10,417 |
|
|
|
7,834 |
|
|
|
0.84 |
|
Gain on exchange
transactions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(10,170 |
) |
|
|
(7,648 |
) |
|
|
(0.82 |
) |
Fair value adjustment of
acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,373 |
) |
|
|
(1,785 |
) |
|
|
(0.19 |
) |
Fair value adjustments for
commodity hedges |
|
|
260 |
|
|
|
(209 |
) |
|
|
469 |
|
|
|
469 |
|
|
|
353 |
|
|
|
0.04 |
|
Other tax adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,918 |
|
|
|
0.41 |
|
Total reconciling
items |
|
|
372 |
|
|
|
(10,514 |
) |
|
|
10,886 |
|
|
|
(1,657 |
) |
|
|
2,672 |
|
|
|
0.28 |
|
Adjusted results
(non-GAAP) |
|
$ |
413,088 |
|
|
$ |
357,798 |
|
|
$ |
55,290 |
|
|
$ |
41,786 |
|
|
$ |
27,836 |
|
|
$ |
2.97 |
|
|
|
First Nine Months 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) |
|
$ |
1,257,311 |
|
|
$ |
1,116,097 |
|
|
$ |
141,214 |
|
|
$ |
37,625 |
|
|
$ |
21,545 |
|
|
$ |
2.30 |
|
System transformation
expenses |
|
|
- |
|
|
|
(6,915 |
) |
|
|
6,915 |
|
|
|
6,915 |
|
|
|
5,200 |
|
|
|
0.56 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
62,017 |
|
|
|
46,637 |
|
|
|
4.98 |
|
Fair value adjustments for
commodity hedges |
|
|
482 |
|
|
|
2,575 |
|
|
|
(2,093 |
) |
|
|
(2,093 |
) |
|
|
(1,574 |
) |
|
|
(0.17 |
) |
Capitalization threshold
change for certain assets |
|
|
- |
|
|
|
(6,111 |
) |
|
|
6,111 |
|
|
|
6,111 |
|
|
|
4,595 |
|
|
|
0.49 |
|
Supply chain optimization and
consolidation |
|
|
4,875 |
|
|
|
- |
|
|
|
4,875 |
|
|
|
4,875 |
|
|
|
3,666 |
|
|
|
0.39 |
|
Other tax adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,178 |
) |
|
|
(0.24 |
) |
Total reconciling
items |
|
|
5,357 |
|
|
|
(10,451 |
) |
|
|
15,808 |
|
|
|
77,825 |
|
|
|
56,346 |
|
|
|
6.01 |
|
Adjusted results
(non-GAAP) |
|
$ |
1,262,668 |
|
|
$ |
1,105,646 |
|
|
$ |
157,022 |
|
|
$ |
115,450 |
|
|
$ |
77,891 |
|
|
$ |
8.31 |
|
|
|
First Nine Months 2018 |
|
(in
thousands, except per share data) |
|
Grossprofit |
|
|
SD&Aexpenses |
|
|
Income fromoperations |
|
|
Income beforeincome taxes |
|
|
Net income |
|
|
Basic net income per
share |
|
Reported results
(GAAP) |
|
$ |
1,175,065 |
|
|
$ |
1,129,979 |
|
|
$ |
45,086 |
|
|
$ |
14,027 |
|
|
$ |
7,046 |
|
|
$ |
0.75 |
|
System transformation
expenses |
|
|
339 |
|
|
|
(32,399 |
) |
|
|
32,738 |
|
|
|
32,738 |
|
|
|
24,619 |
|
|
|
2.63 |
|
Gain on exchange
transactions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(10,170 |
) |
|
|
(7,648 |
) |
|
|
(0.82 |
) |
Workforce optimization
expenses |
|
|
- |
|
|
|
(4,810 |
) |
|
|
4,810 |
|
|
|
4,810 |
|
|
|
3,617 |
|
|
|
0.39 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,584 |
|
|
|
1,191 |
|
|
|
0.13 |
|
Fair value adjustments for
commodity hedges |
|
|
2,776 |
|
|
|
(363 |
) |
|
|
3,139 |
|
|
|
3,139 |
|
|
|
2,361 |
|
|
|
0.25 |
|
Other tax adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,880 |
) |
|
|
(0.20 |
) |
Total reconciling
items |
|
|
3,115 |
|
|
|
(37,572 |
) |
|
|
40,687 |
|
|
|
32,101 |
|
|
|
22,260 |
|
|
|
2.38 |
|
Adjusted results
(non-GAAP) |
|
$ |
1,178,180 |
|
|
$ |
1,092,407 |
|
|
$ |
85,773 |
|
|
$ |
46,128 |
|
|
$ |
29,306 |
|
|
$ |
3.13 |
|
(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 OfficerScott.Anthony@ccbcc.com(704) 557-4633 |
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