ORLANDO, Fla., Oct. 30,
2019 /PRNewswire/ -- (NYSE: TUP) Tupperware
Brands Corporation today announced third quarter 2019 operating
results and updated its outlook for full year 2019.
"Sales for the third quarter ended in line with our forecasted
guidance as the challenging trends we've been experiencing in
Brazil, China, and US & Canada persisted as we expected." said
Tricia Stitzel, Chairman and Chief
Executive Officer of Tupperware Brands. "Profitability was
adversely affected by accounting reserves related to our Fuller
Mexico beauty business and adjustments to our tax provision. We are
moving forward with great urgency to prioritize opportunities in
how we go to market, cost structure, and cash flow management to
drive near-term results so we can navigate the current landscape
successfully without sacrificing our long-term objectives for our
business. We remain committed to ensuring Tupperware remains
competitive - both today and for the long term - while delivering
sustainable shareholder value."
Third Quarter Financial & Operational Updates
- Third quarter sales down 14% versus last year and 11% in local
currency+
- Adjusted pre-tax return on sales of 8% versus 13% in the prior
year period
- GAAP diluted E.P.S. $0.16 versus
$0.79 in the prior year period,
current year includes $0.40 in
impairment charges for indefinite-lived intangible assets
- Adjusted* diluted E.P.S. $0.43
versus $0.88 in the prior year
period
- Named new Vice President of Information and Digital Technology
Worldwide to lead the strategic direction of new technology tools
and leverage data
Tupperware Brands Corporation's financial results for the fiscal
2019 third quarter included increased reserves for accounts
receivable and inventory in its Fuller Mexico beauty business as a
result of lower collections and higher sales returns. These
increased reserves negatively impacted Adjusted E.P.S. by
$0.13 versus the previously stated
guidance. Given the trends in the Fuller Mexico beauty business, an
impairment assessment was performed on the recorded goodwill
balance resulting in a pre-tax, non-cash goodwill impairment charge
of the remaining balance of $17.5
million or $0.36 on GAAP
E.P.S.
Additionally, management continues to assess the impacts of the
GILTI and BEAT tax regulations included in the U.S. Tax Cuts
and Jobs Act of 2017 (the "Tax Act"). Upon filing of the 2018
U.S. tax return (filed in October
2019), the Company recognized a non-cash adjustment for the
impact of the Tax Act. This adjustment adversely impacted
E.P.S. by $0.04 versus
the previously stated guidance. The Company will be
reviewing its tax structure to explore options to potentially
minimize these impacts in the future. Inclusive of this
adjustment, the full-year GAAP tax rate is projected to be below
last year at 36.9% vs. 43.6%.
Third Quarter Results: (as compared with last year)
- Third quarter 2019 sales were $418.1
million, down 14% and local currency sales were down
11%
- Europe - Sales $98.9 million, down 12% and local currency sales
down 7%
- Asia Pacific - Sales
$148.8 million, down 12% and local
currency sales down 11%
- North America - Sales
$103.5 million, down 16% and local
currency sales down 15%
- South America - Sales
$66.9 million, down 17% and local
currency sales down 11%
- Net income of $7.8 million or
$0.16 diluted per share compared with
$39.1 million and $0.79 diluted per share last year
- Adjusted Net income of $21.1
million or $0.43 diluted per
share compared with $43.2 million or
$0.88 diluted per share last year,
restated.
2019 Outlook
Based on current business trends and foreign currency rates, the
Company's revised fiscal 2019 full year outlook is provided
below.
Company Level
|
52 Weeks
Ended
|
|
Dec 28,
2019
|
|
Dec 29,
2018
|
|
Low
|
High
|
|
|
|
|
|
|
|
|
|
USD Sales Growth vs
Prior Year
|
(14)
|
%
|
(12)
|
%
|
|
(8)
|
%
|
|
GAAP EPS
|
$1.93
|
|
$1.99
|
|
|
$3.11
|
|
|
GAAP Pre-Tax
ROS
|
8.4
|
%
|
8.5
|
%
|
|
13.3
|
%
|
|
|
|
|
|
|
|
Local
Currency+ Sales Growth vs Prior Year
|
(10)
|
%
|
(8)
|
%
|
|
(5)
|
%
|
(b)
|
EPS Excluding
Items*+
|
$2.77
|
|
$2.83
|
|
|
$4.03
|
|
|
Pre-Tax ROS Excluding
Items*+
|
11.2
|
%
|
11.3
|
%
|
|
13.6
|
%
|
|
|
|
|
|
|
|
FX Impact on EPS
Comparison (a)
|
($0.27)
|
($0.27)
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
Operations, net of Investing
|
$65M
|
$80M
|
|
$97M
|
|
Unallocated
Expenses
|
Low $30M
|
|
|
|
Net Interest
Expense
|
$40M
|
|
|
|
Tax Rate excluding
items
|
32.3%
|
|
24.7
|
%
|
|
GAAP Tax
Rate
|
36.9%
|
|
43.6
|
%
|
|
Impact of Change in
Hedge Accounting
|
$17.3M
|
|
|
|
(a) Impact of changes
in foreign currency vs. prior year is updated monthly
at: Tupperware Brands Foreign Exchange Translation Impact
Update.
|
(b) Includes 1-point
negative impact from 2017 closure of BeautiControl and combination
of Japanese businesses.
|
|
* See Non-GAAP
Financial Measures Reconciliation Schedules.
|
+ 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.
|
Segment Level Guidance
Local currency sales for full year 2019 are expected to be down
8 percent to 10 percent and is reflective of the difficult consumer
trends in key markets.
- Sales - Europe down mid-single
digit; Asia Pacific and
South America down high-single
digit and North America down low
double digit.
- Segment profit return on sales is expected to be 290 basis
points below last year.
Capital Allocation
In line with the ongoing strategic initiatives, the Company
continues to evaluate the best allocation of its capital to
invest cash in the business, pay down debt, and return value to
shareholders.
The Company targets a debt-to-EBITDA ratio, as defined under its
revolving Credit Agreement, of below three times in the near term
with a goal of two times long term.
Third Quarter Earnings Conference Call
Tupperware Brands will conduct a conference call today,
Wednesday, October 30, 2019, 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
ir.tupperwarebrands.com.
About Tupperware Brands Corporation
Through an independent sales force of 3.1 million, Tupperware
Brands Corporation is the leading global marketer of
innovative, premium household, beauty and personal care 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, Fuller
Cosmetics, NaturCare, Nutrimetics and Nuvo brands. The Company's
stock is listed on the New York Stock Exchange (NYSE: TUP).
Safe Harbor Statement
Statements contained in this release that are not historical
fact and use predictive words such as "estimates", "outlook",
"guidance", "expects", "believes", "intends", "target", "plans",
"may", "will", and similar words are forward-looking
statements. These forward-looking statements and related
assumptions involve risks and uncertainties that could cause actual
results and outcomes to differ materially from any forward-looking
statements or views expressed herein. These risks and uncertainties
include, but are not limited to, the following: the success and
timing of growth and transformation initiatives; impairment and
other charges related to purchase accounting goodwill and
restructuring actions; risk of foreign-currency fluctuations and
the currency translation impact on the Company's business
associated with these fluctuations; uncertainties related to the
interpretation of, and regulations under, the recently enacted U.S.
Tax Cuts and Jobs Act of 2017; the Company's future tax-planning
initiatives; any prospective or retrospective increases in duties
on the Company's products; any adverse results of tax audits or
unfavorable changes to tax laws in the Company's various markets;
risk that direct selling laws and regulations in any of the
Company's markets may be modified, interpreted or enforced in a
manner that results in negative changes to the Company's business
models or negatively impacts its revenue, sales force or business,
including through the interruption of recruiting and sales
activities, loss of licenses, imposition of fines, or any other
adverse actions or events; unpredictable economic and political
conditions and events globally; the success of new product
introductions and promotional programs to generate interest among
the Company's sales force and customers and generate selling
activities on a sustained basis; success of business-to-business
selling arrangements and their timing; success of buyers in
obtaining financing or attracting tenants for commercial and
residential developments; the timing and success of closing asset
sales related to re-engineering actions; risks related to
accurately predicting, delivering or maintaining sufficient
quantities of products to support planned initiatives or launch
strategies; governmental approvals of materials for use in food
containers and beauty, personal care, nutritional and nutraceutical
products; continued competitive pressures for products or sales
force in the Company's markets; leadership development and
succession changes; 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 that 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, analyzing trends
across periods and provide a useful measure for predictive
purposes. These results should be considered in addition to, not as
a substitute for, results reported in accordance with GAAP.
The non-GAAP financial measures include comparisons related to
profit and exclude:
- gains from the sale of property, plant and equipment and other
real estate related operations
- insurance settlement gains or significant charges related to
casualty losses caused by significant weather events, fires or
similar circumstances
- exit or disposal cost obligations related to rationalizing
supply chain operations and other re-engineering activities
performed to wind-down or significantly restructure businesses,
including cumulative translation adjustments recognized in income
upon liquidation of operations in a country, asset sales or fixed
asset impairments, inventory obsolescence and other operating
losses incurred in conjunction with such activities
- certain asset retirement obligations
- pension settlements
- significant discrete impacts of new tax laws upon adoption,
including the impact on cumulative deferred taxes from items
previously recorded as cumulative translation adjustments
- amortization of definite-lived intangible assets
- non-cash impairment charges related to the carrying value of
acquired intangible assets and goodwill
- infrequent costs incurred in connection with a change in
capital structure
- the impact from hyper-inflationary economies on net monetary
assets and other balance sheet positions that impact near term
income
While these types of events can and do recur periodically, they
are not part of its primary business operations and 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 as amounts recognized in
any given period are not indicative of amounts that may be
recognized in any particular future period.
Additionally, the Company engages in business-to-business
transactions, in which it sells products to a partner company.
Since the level of these sales is volatile from quarter-to-quarter
and year-to-year, and is largely independent of the activities of
its sales force, the Company at times, in addition to disclosing
reported sales, discloses "core" sales amounts and comparisons,
which excludes amounts sold under business-to-business
transactions. This illustrates sales results and trends directly
associated with activities of its independent sales force. All
financial information disclosed and presented includes
business-to-business transactions unless specifically stated as
"core" sales.
Also, 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. The Company uses results on a local currency basis as
one measure to evaluate performance and generally refers to such
amounts as restated or excluding the impact of foreign
currency.
These core sales and local currency results should be considered
in addition to, not as a substitute for, results reported in
accordance with GAAP. Core sales and 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.
Information included with this release includes references 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
|
THIRD QUARTER 2019
SALES FORCE STATISTICS*
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
|
All
Units
|
Reported
Inc/(Dec)
vs. Q3
'18
%
|
Restated+
Inc/(Dec)
vs. Q3
'18
%
|
|
Active
Sales
Force
|
|
Inc/(Dec)
vs. Q3
'18
%
|
|
Total
Sales
Force
|
|
Inc/(Dec)
vs. Q3
'18
%
|
Europe
|
(12)
|
(7)
|
a
|
101,647
|
|
3
|
|
825,382
|
|
4
|
Asia
Pacific
|
(12)
|
(11)
|
|
143,826
|
|
(15)
|
|
916,477
|
|
(7)
|
North
America
|
(16)
|
(15)
|
|
184,174
|
|
(6)
|
|
759,538
|
|
1
|
South
America
|
(17)
|
(11)
|
|
116,381
|
|
(10)
|
|
567,592
|
|
2
|
Total All
Units
|
(14)
|
(11)
|
|
546,028
|
|
(8)
|
|
3,068,989
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
* Sales force
statistics as collected by the Company and, in some cases, provided
by distributors and sales force. Active Sales Force is defined as
the average number of sellers ordering in each cycle over the
course of the quarter, whereas Total Sales Force is defined as the
number of sales force members of the units at 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
higher active sales force than local currency sales comparison in
Europe was mainly due to timing of business-to-business (B2B) sales
mainly in Tupperware Germany, which do not relate to sales force
statistics.
|
TUPPERWARE BRANDS
CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
(In millions,
except per share data)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
39 Weeks
Ended
|
|
39 Weeks
Ended
|
|
Sep 28,
2019
|
|
Sep 29,
2018
|
|
Sep 28,
2019
|
|
Sep 29,
2018
|
Net sales
|
$
|
418.1
|
|
$
|
485.8
|
|
$
|
1,380.7
|
|
$
|
1,563.8
|
Cost of products
sold
|
141.5
|
|
164.1
|
|
457.3
|
|
516.6
|
Gross
margin
|
276.6
|
|
321.7
|
|
923.4
|
|
1,047.2
|
|
|
|
|
|
|
|
|
Delivery, sales and
administrative expense
|
241.6
|
|
253.0
|
|
752.0
|
|
815.0
|
Re-engineering and
impairment charges
|
7.5
|
|
3.0
|
|
15.9
|
|
12.7
|
Impairment of
goodwill
|
19.7
|
|
—
|
|
19.7
|
|
—
|
Gain on disposal of
assets
|
12.1
|
|
1.5
|
|
11.1
|
|
16.1
|
Operating
income
|
19.9
|
|
67.2
|
|
146.9
|
|
235.6
|
|
|
|
|
|
|
|
|
Interest
income
|
0.6
|
|
0.6
|
|
1.6
|
|
2.0
|
Interest
expense
|
10.4
|
|
11.3
|
|
31.4
|
|
34.3
|
Other
income
|
(3.8)
|
|
(0.6)
|
|
(10.5)
|
|
(0.8)
|
Income before income
taxes
|
13.9
|
|
57.1
|
|
127.6
|
|
204.1
|
Provision for income
taxes
|
6.1
|
|
18.0
|
|
43.5
|
|
65.5
|
Net income
|
$
|
7.8
|
|
$
|
39.1
|
|
$
|
84.1
|
|
$
|
138.6
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
Basic income per
share
|
$
|
0.16
|
|
$
|
0.79
|
|
$
|
1.73
|
|
$
|
2.75
|
Diluted income per
share
|
$
|
0.16
|
|
$
|
0.79
|
|
$
|
1.72
|
|
$
|
2.74
|
TUPPERWARE
BRANDS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
39 Weeks
Ended
|
|
39 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
Sep 28,
2019
|
|
Sep 29,
2018
|
|
%
|
|
%
|
|
Exchange
|
|
Sep 28,
2019
|
|
Sep 29,
2018
|
|
%
|
|
%
|
|
Exchange
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
98.9
|
|
$
|
112.3
|
|
(12)
|
|
(7)
|
|
$
|
(5.8)
|
|
$
|
359.0
|
|
$
|
388.9
|
|
(8)
|
|
—
|
|
$
|
(30.4)
|
Asia
Pacific
|
148.8
|
|
170.0
|
|
(12)
|
|
(11)
|
|
(2.1)
|
|
460.4
|
|
522.2
|
|
(12)
|
|
(9)
|
|
(18.0)
|
North
America
|
103.5
|
|
123.3
|
|
(16)
|
|
(15)
|
|
(2.4)
|
|
347.8
|
|
395.1
|
|
(12)
|
|
(11)
|
|
(4.3)
|
South
America
|
66.9
|
|
80.2
|
|
(17)
|
|
(11)
|
|
(5.0)
|
|
213.5
|
|
257.6
|
|
(17)
|
|
(5)
|
|
(31.7)
|
|
$
|
418.1
|
|
$
|
485.8
|
|
(14)
|
|
(11)
|
|
$
|
(15.3)
|
|
$
|
1,380.7
|
|
$
|
1,563.8
|
|
(12)
|
|
(7)
|
|
$
|
(84.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
profit (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
(0.9)
|
|
$
|
1.0
|
|
+
|
|
+
|
|
$
|
(0.1)
|
|
$
|
29.6
|
|
$
|
28.5
|
|
4
|
|
17
|
|
$
|
(3.2)
|
Asia
Pacific
|
32.7
|
|
43.7
|
|
(25)
|
|
(24)
|
|
(1.0)
|
|
99.9
|
|
127.0
|
|
(21)
|
|
(18)
|
|
(5.3)
|
North
America
|
3.3
|
|
17.6
|
|
(81)
|
|
(81)
|
|
(0.4)
|
|
41.1
|
|
59.3
|
|
(31)
|
|
(30)
|
|
(0.7)
|
South
America
|
11.3
|
|
15.6
|
|
(27)
|
|
(24)
|
|
(0.6)
|
|
33.3
|
|
50.7
|
|
(34)
|
|
(27)
|
|
(5.0)
|
|
46.4
|
|
77.9
|
|
(40)
|
|
(39)
|
|
(2.1)
|
|
203.9
|
|
265.5
|
|
(23)
|
|
(19)
|
|
(14.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(7.6)
|
|
(8.6)
|
|
(11)
|
|
(13)
|
|
(0.2)
|
|
(22.0)
|
|
(32.5)
|
|
(32)
|
|
(35)
|
|
(1.3)
|
Gain on disposal of
assets
|
12.1
|
|
1.5
|
|
+
|
|
+
|
|
—
|
|
11.1
|
|
16.1
|
|
(31)
|
|
(31)
|
|
—
|
Re-engineering and
impairment charges
|
(7.5)
|
|
(3.0)
|
|
+
|
|
+
|
|
—
|
|
(15.9)
|
|
(12.7)
|
|
25
|
|
25
|
|
—
|
Impairment of
goodwill
|
(19.7)
|
|
—
|
|
+
|
|
+
|
|
—
|
|
(19.7)
|
|
—
|
|
+
|
|
+
|
|
—
|
Interest expense,
net
|
(9.8)
|
|
(10.7)
|
|
(8)
|
|
(8)
|
|
—
|
|
(29.8)
|
|
(32.3)
|
|
(8)
|
|
(8)
|
|
—
|
Income before
taxes
|
13.9
|
|
57.1
|
|
(76)
|
|
(75)
|
|
(2.3)
|
|
127.6
|
|
204.1
|
|
(37)
|
|
(32)
|
|
(15.5)
|
Provision for income
taxes
|
6.1
|
|
18.0
|
|
(66)
|
|
(65)
|
|
(0.6)
|
|
43.5
|
|
65.5
|
|
(34)
|
|
(29)
|
|
(4.4)
|
Net income
|
$
|
7.8
|
|
$
|
39.1
|
|
(80)
|
|
(79)
|
|
$
|
(1.7)
|
|
$
|
84.1
|
|
$
|
138.6
|
|
(39)
|
|
(34)
|
|
$
|
(11.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
(diluted)
|
$
|
0.16
|
|
$
|
0.79
|
|
(80)
|
|
(79)
|
|
$
|
(0.03)
|
|
$
|
1.72
|
|
$
|
2.74
|
|
(37)
|
|
(32)
|
|
$
|
(0.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares
|
48.9
|
|
49.4
|
|
|
|
|
|
|
|
48.9
|
|
50.5
|
|
|
|
|
|
|
|
* 2019 actual
compared with 2018 translated at 2019 exchange rates
|
+ Change greater than
±100%
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(UNAUDITED)
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks Ended Sep
28, 2019
|
|
13 Weeks Ended Sep
29, 2018
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Foreign
Exchange
Impact
|
|
Adj's
|
|
Restated*
Excl
Adj's
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
(0.9)
|
|
$
|
0.3
|
f
|
$
|
(0.6)
|
|
$
|
1.0
|
|
$
|
(0.1)
|
|
$
|
0.2
|
b,f
|
$
|
1.1
|
Asia
Pacific
|
32.7
|
|
0.4
|
a
|
33.1
|
|
43.7
|
|
(1.0)
|
|
0.3
|
a
|
43.0
|
North
America
|
3.3
|
|
1.4
|
a,b
|
4.7
|
|
17.6
|
|
(0.4)
|
|
1.7
|
a,b,g
|
18.9
|
South
America
|
11.3
|
|
0.8
|
a,c
|
12.1
|
|
15.6
|
|
(0.6)
|
|
0.9
|
a,c
|
15.9
|
|
46.4
|
|
2.9
|
|
49.3
|
|
77.9
|
|
(2.1)
|
|
3.1
|
|
78.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(7.6)
|
|
—
|
|
(7.6)
|
|
(8.6)
|
|
(0.2)
|
|
—
|
|
(8.8)
|
Gain on disposal of
assets
|
12.1
|
|
(12.1)
|
d
|
—
|
|
1.5
|
|
—
|
|
(1.5)
|
d
|
—
|
Re-engineering and
impairment charges
|
(7.5)
|
|
7.5
|
e
|
—
|
|
(3.0)
|
|
—
|
|
3.0
|
e
|
—
|
Impairment of
goodwill
|
(19.7)
|
|
19.7
|
h
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Interest expense,
net
|
(9.8)
|
|
—
|
|
(9.8)
|
|
(10.7)
|
|
—
|
|
—
|
|
(10.7)
|
Income before
taxes
|
13.9
|
|
18.0
|
|
31.9
|
|
57.1
|
|
(2.3)
|
|
4.6
|
|
59.4
|
Provision for income
taxes
|
6.1
|
|
4.7
|
i
|
10.8
|
|
18.0
|
|
(0.6)
|
|
(1.2)
|
i
|
16.2
|
Net income
|
$
|
7.8
|
|
$
|
13.3
|
|
$
|
21.1
|
|
$
|
39.1
|
|
$
|
(1.7)
|
|
$
|
5.8
|
|
$
|
43.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
(diluted)
|
$
|
0.16
|
|
$
|
0.27
|
|
$
|
0.43
|
|
$
|
0.79
|
|
$
|
(0.03)
|
|
$
|
0.12
|
|
$
|
0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39 Weeks Ended Sep
28, 2019
|
|
39 Weeks Ended Sep
29, 2018
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Foreign
Exchange
Impact
|
|
Adj's
|
|
Restated*
Excl Adj's
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
29.6
|
|
$
|
0.4
|
b,f
|
$
|
30.0
|
|
$
|
28.5
|
|
$
|
(3.2)
|
|
$
|
0.6
|
b,f
|
$
|
25.9
|
Asia
Pacific
|
99.9
|
|
1.2
|
a
|
101.1
|
|
127.0
|
|
(5.3)
|
|
1.3
|
a,b,f
|
123.0
|
North
America
|
41.1
|
|
4.1
|
a,b
|
45.2
|
|
59.3
|
|
(0.7)
|
|
6.1
|
a,b,g
|
64.7
|
South
America
|
33.3
|
|
1.3
|
a,c
|
34.6
|
|
50.7
|
|
(5.0)
|
|
1.5
|
a,c
|
47.2
|
|
203.9
|
|
7.0
|
|
210.9
|
|
265.5
|
|
(14.2)
|
|
9.5
|
|
260.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(22.0)
|
|
0.1
|
b
|
(21.9)
|
|
(32.5)
|
|
(1.3)
|
|
—
|
|
(33.8)
|
Gain on disposal of
assets
|
11.1
|
|
(11.1)
|
d
|
—
|
|
16.1
|
|
—
|
|
(16.1)
|
d
|
—
|
Re-engineering and
impairment charges
|
(15.9)
|
|
15.9
|
e
|
—
|
|
(12.7)
|
|
—
|
|
12.7
|
e
|
—
|
Impairment of
goodwill
|
(19.7)
|
|
19.7
|
h
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Interest expense,
net
|
(29.8)
|
|
—
|
|
(29.8)
|
|
(32.3)
|
|
—
|
|
—
|
|
(32.3)
|
Income before
taxes
|
127.6
|
|
31.6
|
|
159.2
|
|
204.1
|
|
(15.5)
|
|
6.1
|
|
194.7
|
Provision for income
taxes
|
43.5
|
|
3.1
|
i
|
46.6
|
|
65.5
|
|
(4.4)
|
|
(6.3)
|
i
|
54.8
|
Net income
|
$
|
84.1
|
|
$
|
28.5
|
|
$
|
112.6
|
|
$
|
138.6
|
|
$
|
(11.1)
|
|
$
|
12.4
|
|
$
|
139.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
(diluted)
|
$
|
1.72
|
|
$
|
0.58
|
|
$
|
2.30
|
|
$
|
2.74
|
|
$
|
(0.22)
|
|
$
|
0.25
|
|
$
|
2.77
|
|
* 2019 actual
compared with 2018 translated at 2019 exchange rates.
|
|
a Amortization of intangibles of
acquired beauty units.
|
b Pension settlement
costs.
|
c As a
result of devaluations in the Venezuelan bolivar, and beginning
July 1, 2018, Argentine peso, as Venezuela and Argentina are
accounted for as hyperinflationary, the Company had negative
impacts of $0.8 million and $0.4 million in the
third quarters of 2019 and 2018, respectively. These amounts
were related to expense from re-measuring bolivar and peso
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 Loss on disposal of assets in 2019
mainly relate to the write-off of assets in Tupperware France. In
2018, gains on disposal of assets mainly relate to the sale of a
warehouse in Japan and a building owned by BeautiControl. In both
years, the sale of land held near the Orlando, FL headquarters also
resulted in gains.
|
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, and in 2018, the costs
associated with the closure of BeautiControl and the French supply
chain facility.
|
f
Write-off of inventory and bad debt associated with changes in
business model.
|
g BeautiControl wind down costs and
inventory write-off.
|
h
Impairment of goodwill of House of Fuller Mexico an trademarks of
Nutrimetics Australia and France.
|
i 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)
|
39 Weeks
Ended
|
|
39 Weeks
Ended
|
|
September
28, 2019
|
|
September
29, 2018
|
Operating
Activities:
|
|
|
|
Net cash provided by
operating activities
|
$
|
19.5
|
|
$
|
13.6
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(44.0)
|
|
(55.2)
|
Proceeds from
disposal of property, plant & equipment
|
20.4
|
|
36.5
|
Net cash used in
investing activities
|
(23.6)
|
|
(18.7)
|
|
|
|
|
Financing
Activities:
|
|
|
|
Dividend payments to
shareholders
|
(60.5)
|
|
(104.1)
|
Repurchase of common
stock
|
(0.8)
|
|
(101.3)
|
Repayment of
long-term debt and finance lease obligations
|
(1.3)
|
|
(1.6)
|
Net change in
short-term debt
|
46.7
|
|
200.7
|
Debt issuance
costs
|
(2.2)
|
|
—
|
Proceeds from
exercise of stock options
|
—
|
|
0.3
|
Net cash used by
financing activities
|
(18.1)
|
|
(6.0)
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(3.3)
|
|
(13.5)
|
Net change in cash,
cash equivalents and restricted cash
|
(25.5)
|
|
(24.6)
|
Cash, cash
equivalents and restricted cash at beginning of year
|
151.9
|
|
147.2
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
126.4
|
|
$
|
122.6
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
Sep 28,
2019
|
|
Dec 29,
2018
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
122.1
|
|
$
|
149.0
|
Other current
assets
|
465.1
|
|
471.6
|
Total current
assets
|
587.2
|
|
620.6
|
|
|
|
|
Property, plant and
equipment, net
|
269.5
|
|
276.0
|
Other
assets
|
479.2
|
|
412.2
|
Total
assets
|
$
|
1,335.9
|
|
$
|
1,308.8
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Short-term borrowings
and current portion of long-term debt
|
$
|
325.0
|
|
$
|
285.5
|
Accounts payable and
other current liabilities
|
376.9
|
|
473.6
|
Total current
liabilities
|
701.9
|
|
759.1
|
|
|
|
|
Long-term
debt
|
602.4
|
|
603.4
|
Other
liabilities
|
213.9
|
|
181.5
|
Total shareholders'
equity
|
(182.3)
|
|
(235.2)
|
Total liabilities and
shareholders' equity
|
$
|
1,335.9
|
|
$
|
1,308.8
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
October 30,
2019
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Fourth
Quarter
|
(In millions,
except per share data)
|
2018
Actual
|
|
2019
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
72.1
|
|
|
$
|
21.3
|
|
|
$
|
26.5
|
|
|
|
|
|
|
|
Income tax
|
$
|
54.8
|
|
|
$
|
11.1
|
|
|
$
|
13.4
|
|
Effective
Rate
|
76
|
%
|
|
52
|
%
|
|
51
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
17.3
|
|
|
$
|
10.2
|
|
|
$
|
13.1
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(41)
|
%
|
|
(24)
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
(2.6)
|
|
|
(11.0)
|
|
|
(11.0)
|
|
Re-engineering and
pension settlements
|
3.9
|
|
|
27.6
|
|
|
27.6
|
|
Net impact of
Venezuelan and Argentine currency devaluations
|
1.0
|
|
|
—
|
|
|
—
|
|
Acquired intangible
asset amortization
|
1.8
|
|
|
1.8
|
|
|
1.8
|
|
Income
tax(2)
|
43.4
|
|
|
(6.1)
|
|
|
(6.0)
|
|
Net Income
(adjusted)
|
$
|
64.8
|
|
|
$
|
22.5
|
|
|
$
|
25.5
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
(2.1)
|
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2018 restated for currency changes)
|
$
|
62.7
|
|
|
$
|
22.5
|
|
|
$
|
25.5
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(64)
|
%
|
|
(59)
|
%
|
|
|
|
|
|
|
Net income (GAAP) per
common share (diluted)
|
$
|
0.35
|
|
|
$
|
0.21
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(40)
|
%
|
|
(23)
|
%
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
1.33
|
|
|
$
|
0.46
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
1.29
|
|
|
$
|
0.46
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(64)
|
%
|
|
(60)
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
48.8
|
|
|
48.9
|
|
|
48.9
|
|
|
(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, as well as in 2018, a $46.5
million impact from adoption of 2017 tax law in the United
States.
|
(3) Difference between 2019 actual
and 2018 translated at 2019 currency exchange rates.
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
October 30,
2019
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Full
Year
|
|
Full
Year
|
(In millions,
except per share data)
|
2018
Actual
|
|
2019
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
276.2
|
|
|
$
|
148.9
|
|
|
$
|
154.1
|
|
|
|
|
|
|
|
Income tax
|
$
|
120.3
|
|
|
$
|
54.6
|
|
|
$
|
56.9
|
|
Effective
Rate
|
44
|
%
|
|
37
|
%
|
|
37
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
155.9
|
|
|
$
|
94.3
|
|
|
$
|
97.2
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(40)
|
%
|
|
(38)
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
$
|
(18.7)
|
|
|
$
|
(22.1)
|
|
|
$
|
(22.1)
|
|
Purchase accounting
intangibles impairment
|
—
|
|
|
19.7
|
|
|
19.7
|
|
Re-engineering and
pension settlements
|
19.3
|
|
|
43.9
|
|
|
43.9
|
|
Net impact of
Venezuelan and Argentine currency devaluations
|
2.1
|
|
|
1.1
|
|
|
1.1
|
|
Acquired intangible
asset amortization
|
7.6
|
|
|
7.2
|
|
|
7.2
|
|
Income
tax(2)
|
49.6
|
|
|
(8.9)
|
|
|
(8.9)
|
|
Net Income
(adjusted)
|
$
|
215.8
|
|
|
$
|
135.2
|
|
|
$
|
138.1
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
(13.6)
|
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2018 restated for currency changes)
|
$
|
202.2
|
|
|
$
|
135.2
|
|
|
$
|
138.1
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(33)
|
%
|
|
(32)
|
%
|
|
|
|
|
|
|
Net income, (GAAP)
per common share (diluted)
|
$
|
3.11
|
|
|
$
|
1.93
|
|
|
$
|
1.99
|
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
4.30
|
|
|
$
|
2.77
|
|
|
$
|
2.83
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
4.03
|
|
|
$
|
2.77
|
|
|
$
|
2.83
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(31)
|
%
|
|
(30)
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
50.2
|
|
|
48.9
|
|
|
48.9
|
|
|
(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, as well as in 2018, a $46.5
million impact from adoption of 2017 tax law in the United
States.
|
(3) Difference between 2019 actual
and 2018 translated at 2019 currency exchange rates.
|
TUPPERWARE BRANDS
CORPORATION
|
ADJUSTED EBITDA
AND DEBT/ADJUSTED EBITDA*
|
(UNAUDITED)
|
|
|
|
As of and for
the
four quarters ended
|
|
September
28,
2019
|
Adjusted
EBITDA:
|
|
Net income
(loss)
|
$
|
101.4
|
Add:
|
|
Depreciation and
amortization
|
55.4
|
Gross interest
expense
|
43.6
|
Provision for income
taxes
|
98.3
|
Equity
compensation
|
11.3
|
Pre-tax
re-engineering and impairment charges
|
21.0
|
Other non-cash
extraordinary, unusual or non-recurring charges
|
14.9
|
Deduct:
|
|
Cash paid for
re-engineering
|
(39.9)
|
Gains on land sales,
insurance recoveries, etc.
|
(13.7)
|
Total Adjusted
EBITDA
|
$
|
292.3
|
|
|
Consolidated total
debt
|
$
|
927.4
|
Divided by adjusted
EBITDA
|
292.3
|
Debt to Adjusted
EBITDA Ratio
|
3.17
|
* Amounts and
calculations are based on the definitions and provisions of the
Company's $650 million Credit Agreement dated March 29, 2019
("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.
|
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SOURCE Tupperware Brands Corporation