Net Sales Revenue of $2.3 billion, Decreased
1.2%, Increased 0.6% in Constant Currency
Lower U.S. GAAP Net Income Driven by
One-Time $328 Million Purchase Price Settlement Gain in 2018
Underlying EBITDA Decreased 0.9%, Increased 0.2% in Constant
Currency
EPS (U.S. GAAP) of $0.70 Decreased 45.3%,
and Underlying EPS (Non-GAAP) of $0.52 Increased 8.3%
Management Reaffirms Increased Dividend
Expectations Remains Committed to Free Cash Flow and Cost Savings
Targets, as well as Further Deleveraging in 2019
___________________________________
Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today
reported results for the 2019 first quarter. Molson Coors president
and chief executive officer Mark Hunter said:
“Our first quarter was solid, delivering on our commitment to
improving top-line performance while also protecting the bottom
line. Even with industry volume pressure in North America and the
shift of Easter from Q1 to Q2, revenue was up on a constant
currency basis, driven by strong and disciplined net sales revenue
per hectoliter growth across our business, ongoing portfolio
premiumization, and improving share trends in our largest
market.”
Mark continued, “While only the first and smallest of our
quarters, I am encouraged by the meaningful growth of net sales
revenue in the U.S., led by the increasingly strong
performance of Miller Lite which held total beer industry share and
an improved performance of Coors Light in our largest and most
profitable market, as well as strong U.S. retailer placements for
our upweighted innovation program. We also saw continuing strong
net sales revenue growth in Europe, our second largest business
unit. Across Molson Coors I am pleased with the continuing
acceleration of our portfolio premiumization efforts alongside our
intensified innovation program, and the growth in our underlying
EBITDA, which, despite higher inflation, grew on a constant
currency basis.”
Consolidated Performance - First Quarter 2019
Three Months Ended ($ in
millions, except per share data) (Unaudited)
March 31, 2019
March 31, 2018
Reported
%Increase(Decrease)
ForeignExchangeImpact($)
ConstantCurrency%
Increase(Decrease)(2)
Net Sales $ 2,303.3 $ 2,331.5 (1.2 )% $ (42.1 ) 0.6 % U.S. GAAP Net
income (loss)(1) $ 151.4 $ 278.1 (45.6 )% Per diluted share $ 0.70
$ 1.28 (45.3 )% Underlying (Non-GAAP) Net income (loss)(2) $ 112.7
$ 104.3 8.1 % Per diluted share $ 0.52 $ 0.48 8.3 % Underlying
EBITDA (Non-GAAP)(2) $ 422.3 $ 426.0 (0.9 )% $ (4.7 ) 0.2 %
(1) Net income
(loss) attributable to MCBC. (2) See Appendix for definitions and
reconciliations of non-GAAP financial measures
Quarterly Highlights (versus First
Quarter 2018 Results)
- Net sales: $2.3 billion,
decreased by 1.2% driven by volume declines and unfavorable foreign
currency movements, partially offset by higher net pricing in all
segments and favorable sales mix in Europe. Net sales increased
0.6% in constant currency driven by higher net pricing in all
segments, partially offset by volume declines.
- Volume: Worldwide brand volume
of 18.2 million hectoliters decreased 4.7% and financial volume of
20.1 million hectoliters decreased 3.4% due to lower volume in all
segments, partially as a result of industry and share declines
particularly in the U.S. and Canada compared to prior year.
- Net sales per hectoliter:
$114.59 on a reported financial-volume basis, increased 2.3% and
net sales per hectoliter on a brand volume basis increased
by 3.7% in constant currency, primarily driven by favorable net
pricing in all segments and favorable sales mix in Europe.
- Cost of goods sold (COGS) per
hectoliter: on a reported basis, increased 4.7% primarily driven by
cost inflation and transportation costs, increased packaging costs
associated with our U.S. bottle furnace rebuild, and volume
deleverage, partially offset by unrealized mark-to-market gains
compared to losses on our commodity positions in the prior year,
cost savings and foreign currency movements. Underlying COGS per
hectoliter increased 5.3% in constant currency primarily driven
by the same factors as U.S. GAAP results with the exception of the
changes in unrealized mark-to-market positions.
- U.S. GAAP net income attributable to
MCBC: decreased 45.6%, primarily driven by the $328 million
cash payment received in January 2018 related to a purchase price
adjustment for our acquisition of the Miller International
business, lower financial volume and higher inflation, partially
offset by unrealized mark-to-market gains compared to losses on our
commodity positions in the prior year, positive net pricing in all
segments, general and administrative spend reductions and cost
savings, as well lower net interest expense.
- Underlying net income: increased
8.1%, driven by positive net pricing in all segments, general and
administrative spend reductions and cost savings, as well as lower
net interest expense, partially offset by lower volume and cost
inflation in all segments.
- Underlying EBITDA: decreased
0.9% on a reported basis and increased 0.2% on a constant-currency
basis, driven by the same factors as underlying net income with the
exception of net interest expense.
- U.S. GAAP cash from operations:
net cash used in operating activities for the first quarter of 2019
was $98.5 million, compared to net cash provided by operating
activities of $315.2 million in the prior year. This decrease was
primarily driven by the $328 million cash payment received in
January 2018 related to a purchase price adjustment for our
acquisition of the Miller International business, as well as
unfavorable timing of working capital, partially offset by lower
interest paid in the first quarter of 2019.
- Underlying free cash flow: cash
use of $270.1 million for the first quarter of 2019, which
represents an increase in cash used of $75.0 million from the prior
year, primarily due to unfavorable timing of working capital,
partially offset by lower cash paid for interest and capital
expenditures.
- Debt: Total debt at the end of
the first quarter 2019 was $10.126 billion, and cash and cash
equivalents totaled $234.4 million, resulting in net debt of $9.892
billion.
Business Review - First Quarter 2019
Net Sales
($ in millions) (Unaudited)
Three Months Ended March 31, 2019
March 31, 2018
Reported%Increase(Decrease)
ForeignExchangeImpact($)
ConstantCurrency
%Increase(Decrease)(1)
United States $ 1,659.2 $ 1,647.8 0.7 % $ — 0.7 % Canada 261.0
283.8 (8.0 )% (13.1 ) (3.4 )% Europe 362.9 374.3 (3.0 )% (27.9 )
4.4 % International 47.9 57.5 (16.7 )% (1.3 ) (14.4 )% Corporate
0.2 0.2 — % — — % Eliminations(2) (27.9 ) (32.1 ) 13.1 % 0.2
12.5 % Consolidated $ 2,303.3 $ 2,331.5 (1.2 )% $
(42.1 ) 0.6 %
(1)
See Appendix for definitions and reconciliations of non-GAAP
financial measures. (2) Reflects intercompany sales that are
eliminated in consolidated totals.
Pretax Income (U.S.
GAAP)
($ in millions)
(Unaudited)
Three Months Ended March 31,
2019 March 31, 2018
Reported%Increase(Decrease)
ForeignExchangeImpact($)
ConstantCurrency
%Increase(Decrease)(1)
United States $ 269.4 $ 261.7 2.9 % $ (0.2 ) 3.0 % Canada 21.8 9.1
139.6 % 0.2 137.4 % Europe (27.5 ) (29.9 ) 8.0 % 0.8 5.4 %
International (0.3 ) 3.7 N/M (0.7 ) N/M Corporate (82.1 ) 112.8
N/M 0.4 N/M Consolidated $ 181.3 $ 357.4
(49.3 )% $ 0.5 (49.4 )%
N/M = Not meaningful
(1) See Appendix for definitions and reconciliations
of non-GAAP financial measures.
Underlying EBITDA
(Non-GAAP)(1)
($ in millions) (Unaudited)
Three Months Ended March 31, 2019
March 31, 2018
Reported%Increase(Decrease)
ForeignExchangeImpact($)
ConstantCurrency
%Increase(Decrease)(1)
United States $ 402.0 $ 388.9 3.4 % $ (0.2 ) 3.4 % Canada 33.8 44.7
(24.4 )% (0.9 ) (22.4
)%
Europe 21.9 24.5 (10.6 )% (3.1 ) 2.0 % International 2.7 7.1 (62.0
)% (0.8 ) (50.7 )% Corporate (38.1 ) (39.2 ) 2.8 % 0.3 2.0 %
Consolidated $ 422.3 $ 426.0 (0.9 )% $ (4.7 ) 0.2 %
(1) See
Appendix for definitions and reconciliations of non-GAAP financial
measures.
Quarterly Segment Highlights
(versus First Quarter 2018 Results)
United States Business
- Volume: U.S. brand volume
decreased 3.8% on a trading-day-adjusted basis for the quarter,
driven by lower volume, partially reflective of industry declines.
Sales-to-wholesalers (STWs) volume, excluding contract brewing,
decreased 2.7% driven by lower brand volume, partially offset by
quarterly timing of wholesaler inventories as we expect brand
volume and STW trends to largely converge on a full year
basis.
- Revenue: Net sales per
hectoliter (brand volume basis) grew 3.7% driven by higher net
pricing.
- COGS per hectoliter increased
5.9%, driven by higher commodity and transportation costs,
increased packaging costs associated with our bottle furnace
rebuild, as well as volume deleverage, partially offset by cost
savings.
- Marketing, general and
administrative (MG&A) expense decreased 4.5% due to lower
employee-related expenses including incremental cost reductions
related to the restructuring initiated in the third quarter of
2018, as well as quarterly timing of innovation spend, partially
offset by higher marketing investment behind our premium light
brands.
- On a U.S. GAAP basis, the U.S.
reported pretax income of $269.4 million, an increase of
2.9%, driven by higher net pricing and lower MG&A expenses,
partially offset by cost inflation and lower volumes.
- U.S. underlying EBITDA increased
3.4% driven by the same factors as U.S. GAAP results.
Canada Business
- Volume: Canada brand volume
decreased 6.0% and financial volume decreased 4.9% in the first
quarter, primarily due to industry declines.
- Revenue: Net sales per
hectoliter (brand volume basis) increased 1.9% in constant
currency, driven by positive net pricing, partially offset by
unfavorable sales mix.
- COGS per hectoliter increased
6.3% in constant currency primarily driven by volume deleverage,
increased distribution costs and cost inflation, partially offset
by cost savings.
- MG&A expense decreased 1.1%
in constant currency primarily driven by timing of employee-related
expenses, partially offset by higher investments to support the
rebranding of our Molson brands and Truss related start-up
costs.
- On a U.S. GAAP basis, Canada
reported pretax income of $21.8 million, an increase of
139.6% from the prior year, driven primarily by an unrealized
mark-to-market gain of approximately $23 million recognized on the
HEXO warrants received in connection with the formation of the
Truss joint venture and timing of general and administrative
expenses, partially offset by gross margin impacts of volume
declines and cost inflation.
- Canada underlying EBITDA
decreased 22.4% in constant currency in the quarter, primarily due
to gross margin impacts of volume declines and cost inflation,
partially offset by timing of general and administrative
expenses.
Europe Business
- Volume: Europe brand volume and
financial volume each decreased 2.3% in the first quarter, as a
result of planned declines in our low-margin value brands as we
have increased our focus on our national champion and premium
portfolios.
- Revenue: Europe net sales per
hectoliter (brand volume basis) increased 8.2% in constant
currency, driven by positive net pricing and favorable sales
mix.
- COGS per hectoliter increased
3.7% in constant currency, primarily due to commodity
inflation.
- MG&A expense increased 9.5%
in constant currency, primarily due to higher brand investments to
support our national champion brands and premiumization
initiatives.
- On a U.S. GAAP basis, Europe
reported a pretax loss of $27.5 million, an improvement of
8.0% from the prior year, driven by favorable margin impacts,
partially offset by increased marketing investments.
- Europe underlying EBITDA
increased 2.0% in constant currency to $21.9 million, driven by the
same factors as U.S. GAAP results.
International Business
- Volume: International brand
volume decreased 6.7%, driven by balancing higher pricing with
lower volume in Mexico and cycling a strong post-hurricane result
in Puerto Rico during the first quarter of 2018, partially offset
by growth in several of our focus markets.
- Revenue: Net sales per
hectoliter (brand volume basis) decreased 8.1% in constant
currency, driven by the shift to local production in Mexico and
unfavorable geographic mix, partially offset by positive net
pricing.
- COGS per hectoliter increased
2.0% in constant currency, driven by unfavorable geographic mix and
inflation.
- MG&A expense increased 11.9%
in constant currency, driven by cycling the $2.0 million of
settlement proceeds related to our Colombia business in the first
quarter of 2018, partially offset by lower marketing investments in
the current year.
- On a U.S. GAAP basis,
International reported a pretax loss of $0.3
million compared to income of $3.7 million in the prior year,
driven by lower volumes in Puerto Rico, cycling the $2.0 million of
settlement proceeds related to our Colombia business in the first
quarter of 2018, unfavorable foreign currency movements and cost
inflation, partially offset by shifting to a more profitable
business model in Mexico and lower marketing expenses.
- International underlying EBITDA
was $2.7 million driven by the same factors as U.S. GAAP
results.
Corporate
- On a U.S. GAAP basis, Corporate
reported a pretax loss of $82.1 million in the first quarter
compared to income of $112.8 million in the prior year, primarily
due to the receipt of a $328 million cash purchase price adjustment
related to our acquisition of the Miller International business in
the first quarter of 2018, partially offset by unrealized
mark-to-market gains compared to losses on commodity positions in
the prior year, lower general and administrative costs and lower
interest expense.
- Corporate underlying EBITDA was
a loss of $38.1 million for the first quarter, an improvement
compared to the prior year, driven primarily by lower general and
administrative expenses.
Worldwide Brand and Financial Volume(1)
(In millions of hectoliters) (Unaudited)
Three Months Ended March 31, 2019
March 31, 2018 % Change Financial
Volume(1) 20.101 20.813 (3.4 )% Contract brewing,
wholesaler and non-beer volume (1.806 ) (1.902 ) (5.0 )% Royalty
volume 0.737 0.716 2.9 % Sales-To-Wholesaler to Sales-To-Retail
adjustment (0.837 ) (0.526 ) 59.1 %
Total Worldwide Brand
Volume(1) 18.195 19.101 (4.7 )%
(1) See Appendix for definitions
and additional discussion regarding Financial and Worldwide Brand
Volume.
Other Results
Effective Income Tax
Rates
Three Months Ended
March 31, 2019 March 31, 2018 U.S. GAAP
effective tax rate 18 % 21 % Underlying effective tax rate 24 % 21
%
- The decrease in our effective tax
rate was primarily driven by a net discrete tax benefit
recognized in the first quarter of 2019, compared to net discrete
tax expense recognized in the first quarter of 2018.
- The increase in our underlying
effective tax rate was primarily driven by an increase in net
underlying discrete tax expense recognized in the first quarter of
2019.
Special and Other Non-Core
Items
The following special and other non-core items have been
excluded from underlying results. See the Appendix for
reconciliations of non-GAAP financial measures.
- During the first quarter of 2019, MCBC
recognized a net special charge of $13.0 million, primarily
driven by accelerated depreciation related to brewery
closures.
- Additionally during the first quarter
of 2019, we recorded other non-core net benefits of $49.4
million primarily driven by unrealized mark-to-market gains on
commodity hedges and our HEXO warrants, as well as the offsetting
impact of integration-related expenses.
2019 Outlook
We currently expect to achieve the following guidance for full
year 2019:
- Underlying free cash
flow: $1.4 billion, plus or minus 10%.
- Capital spending: approximately
$700 million, plus or minus 10%.
- Cost savings: approximately $700
million for the 2017 to 2019 program.
- Consolidated underlying COGS per
hectoliter: mid-single digit increase on a constant currency
basis.
- Underlying corporate MG&A
expense: approximately $180 million, plus or minus 10%.
- Underlying depreciation and
amortization: approximately $850 million, versus $827 million
in 2018, primarily due to planned information systems
implementations in the U.S.
- Consolidated net interest
expense: approximately $300 million, plus or minus 5%.
- International: strong double
digit percentage increase to underlying EBITDA in constant
currency.
- Underlying effective tax rate in
the range of 18% to 22% for 2019, which remains subject to
additional definitive guidance from the U.S. government regarding
the implementation of the 2017 tax reform legislation. Our
preliminary expectation for our long-term effective tax rate (after
2019) is in the range of 20% to 24%.
- Deleverage & Dividend: We
remain committed to maintaining our investment grade debt rating
and we intend to continue to deleverage further in 2019 in
accordance with our plans. Our board's intention remains to
reinstitute a dividend payout-ratio in the range of 20% to 25% of
annual trailing underlying EBITDA for the second half of 2019 and
ongoing thereafter.
Notes
Unless otherwise indicated in this release, all $ amounts are in
U.S. Dollars, and all quarterly comparative results are for the
Company’s first quarter ended March 31, 2019, compared to the
first quarter ended March 31, 2018. Some numbers may not sum
due to rounding.
2019 First Quarter Conference Call
Molson Coors Brewing Company will conduct an earnings conference
call with financial analysts and investors at 11:00 a.m. Eastern
Time today to discuss the Company’s 2019 first quarter results. The
live webcast will be accessible via our website,
www.molsoncoors.com. An online replay of the webcast will be
available until 11:59 p.m. Eastern Time on July 30, 2019. The
Company will post this release and related financial statements on
its website today.
We will also host an online, real-time webcast of our Annual
Meeting of Stockholders on Wednesday, May 22, 2019 at 11:00 a.m.
Eastern Time. The meeting will take place at the Molson Coors
Montreal Brewery. The live webcast will be accessible on the
Investor Relations page of our website. An online replay of the
webcast will be available until 11:59 p.m. Eastern Time on August
31, 2019.
Overview of Molson Coors
Molson Coors has defined brewing greatness for more than two
centuries. As one of the largest global brewers, Molson Coors works
to deliver extraordinary brands that delight the world’s beer
drinkers. From Coors Light, Coors Banquet, Miller Lite, Molson
Canadian, Carling, Staropramen and Sharp’s Doom Bar to
Leinenkugel’s Summer Shandy, Blue Moon Belgian White, Hop Valley,
Creemore Springs and Crispin Cider, Molson Coors offers a beer for
every beer lover.
Molson Coors operates through Molson Coors Canada, MillerCoors
in the U.S., Molson Coors Europe and Molson Coors International.
The company is not only committed to brewing extraordinary beers,
but also running a business focused on respect for its employees,
communities and drinkers, which means corporate responsibility and
accountability right from the start. It has been listed on the Dow
Jones Sustainability North America Index for the past eight years.
To learn more about Molson Coors Brewing Company, visit
molsoncoors.com, ourbeerprint.com or on Twitter through
@MolsonCoors.
About Molson Coors Canada Inc.
Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors
Brewing Company. MCCI Class A and Class B exchangeable
shares offer substantially the same economic and voting rights as
the respective classes of common shares of MCBC, as described in
MCBC’s annual proxy statement and Form 10-K filings with the U.S.
Securities and Exchange Commission. The trustee holder of the
special Class A voting stock and the special Class B
voting stock has the right to cast a number of votes equal to the
number of then outstanding Class A exchangeable shares and
Class B exchangeable shares, respectively.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the U.S. federal securities laws. Generally, the
words “believe,” “expect,” “intend,” “anticipate,” “project,”
“will,” “outlook,” and similar expressions identify forward-looking
statements, which generally are not historic in nature. Statements
that refer to projections of our future financial performance, our
anticipated growth and trends in our businesses, and other
characterizations of future events or circumstances are
forward-looking statements, and include, but are not limited to,
statements under the heading "2019 Outlook," expectations regarding
future dividends, timing and amounts of debt and leverage levels
and cash flow expectations. Although the Company believes that the
assumptions upon which its forward-looking statements are based are
reasonable, it can give no assurance that these assumptions will
prove to be correct. Important factors that could cause actual
results to differ materially from the Company’s historical
experience, and present projections and expectations are disclosed
in the Company’s filings with the Securities and Exchange
Commission (“SEC”). These factors include, among others, the impact
of increased competition resulting from further consolidation of
brewers, competitive pricing and product pressures; health of the
beer industry and our brands in our markets; economic conditions in
our markets; additional impairment charges; our ability to maintain
manufacturer/distribution agreements; changes in our supply chain
system; availability or increase in the cost of packaging
materials; success of our joint ventures; risks relating to
operations in developing and emerging markets; changes in legal and
regulatory requirements, including the regulation of distribution
systems; fluctuations in foreign currency exchange rates; increase
in the cost of commodities used in the business; the impact of
climate change and the availability and quality of water; loss or
closure of a major brewery or other key facility; our ability to
implement our strategic initiatives, including executing and
realizing cost savings; our ability to successfully integrate newly
acquired businesses; our ability to achieve expected tax benefits,
accretion and cost savings relating to our acquisition of
MillerCoors; pension plan and other post-retirement benefit costs;
failure to comply with debt covenants or deterioration in our
credit rating; our ability to maintain good labor relations; our
ability to maintain brand image, reputation and product quality;
and other risks discussed in our filings with the SEC, including
our most recent Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q. All forward-looking statements in this press
release are expressly qualified by such cautionary statements and
by reference to the underlying assumptions. You should not place
undue reliance on forward-looking statements, which speak only as
of the date they are made. We do not undertake to update
forward-looking statements, whether as a result of new information,
future events or otherwise.
APPENDIX
Consolidated Financial Performance
Molson Coors Brewing Company
Three Months Ended March 31, 2019
% Change (In millions, except per share
data)(Unaudited)
U.S. GAAP
Non-GAAPAdjustments(1)
Non-GAAPUnderlying(1)
U.S. GAAP
Non-GAAPUnderlying
Net sales $ 2,303.3 $ — $
2,303.3 (1.2 )% (1.2 )% Net
Sales per HL change 2.3 % 2.3 %
Cost of goods sold $
(1,413.0 ) $ (32.4 ) $ (1,445.4 )
(8.0 )% (0.3
)% Cost of goods sold per HL change (4.7 )% 3.2 %
Gross
profit $ 890.3 $ (32.4 )
$ 857.9 11.9 % (2.7 )%
Marketing, general and administrative expenses $
(655.2 ) $ 7.4 $ (647.8
) (3.8 )% (3.6 )% Special items,
net $ (13.0 ) $ 13.0 $ — N/M — %
Operating income (loss)
$ 222.1 $ (12.0 ) $
210.1 (48.3 )% 0.2 % Interest
income (expense), net $ (73.3 ) $ — $ (73.3 ) (11.9 )% (11.9 )%
Other pension and postretirement benefits (costs), net $ 8.6 $ — $
8.6 (14.0 )% (14.9 )% Other income (expense), net $ 23.9 $ (24.4 )
$ (0.5 ) N/M N/M Income (loss) before income taxes $ 181.3 $ (36.4
) $ 144.9 (49.3 )% 5.3 % Income tax benefit (expense) $ (32.2 ) $
(2.3 ) $ (34.5 ) (57.0 )% 19.4 %
Net income (loss)(2)
$ 151.4 $ (38.7 ) $ 112.7
(45.6 )% 8.1 % Per diluted share
$ 0.70 $ (0.18 ) $
0.52 (45.3 )% 8.3 %
Underlying EBITDA(3) $ 422.3
(0.9 )%
N/M = Not meaningful
(1) Refer to the table "Reconciliation to Nearest
U.S. GAAP Measures" for detailed descriptions and reconciliation of
non-GAAP adjustments and results. (2) Net income (loss)
attributable to MCBC. (3) Underlying EBITDA is earnings before
interest, taxes, depreciation and amortization, a non-GAAP
financial measure.
Worldwide Brand and Financial
Volumes
Worldwide brand volume (or "brand volume" when discussed by
segment) reflects only owned brands sold to unrelated external
customers within our geographic markets (net of returns and
allowances), royalty volume and our proportionate share of equity
investment worldwide brand volume calculated consistently with MCBC
owned volume. Contract brewing and wholesaler volume is included
within financial volume, but is removed from worldwide brand
volume, as this is non-owned volume for which we do not directly
control performance. Our worldwide brand volume definition also
includes an adjustment from Sales-to-Wholesaler (STW) volume to
Sales-to-Retailer (STR) volume. We believe the brand volume metric
is important because, unlike financial volume and STWs, it provides
the closest indication of the performance of our brands in relation
to market and competitor sales trends.
Use of Non-GAAP Measures
In addition to financial measures presented on the basis of
accounting principles generally accepted in the U.S.
("U.S. GAAP"), we also present constant currency, "underlying
COGS" and "underlying COGS per hectoliter" (underlying COGS divided
by reported financial volume), "underlying pretax and net income,"
"underlying income per diluted share," "underlying effective tax
rate," and "underlying free cash flow," which are non-GAAP measures
and should be viewed as supplements to (not substitutes for) our
results of operations presented under U.S. GAAP. We also
present underlying earnings before interest, taxes, depreciation,
and amortization ("underlying EBITDA") as a non-GAAP measure, as
well as underlying EBITDA margin, which is calculated by dividing
underlying EBITDA by U.S. GAAP net sales. Our management uses
underlying income, underlying income per diluted share, underlying
EBITDA (and margin), and underlying effective tax rate as measures
of operating performance, as well as underlying free cash flow in
the measure of cash generated from core operations, to assist in
comparing performance from period to period on a consistent basis;
as a measure for planning and forecasting overall expectations and
for evaluating actual results against such expectations; in
communications with the board of directors, stockholders, analysts
and investors concerning our financial performance; as useful
comparisons to the performance of our competitors; and as metrics
of certain management incentive compensation calculations. We
believe that underlying income, underlying income per diluted
share, underlying EBITDA (and margin), and underlying effective tax
rate performance are used by, and are useful to, investors and
other users of our financial statements in evaluating our operating
performance, as well as underlying free cash flow in evaluating our
generation of cash from core operations, because they provide an
additional tool to evaluate our performance without regard to
special and non-core items, which can vary substantially from
company to company depending upon accounting methods and book value
of assets and capital structure. In addition to the reasons
discussed above, we consider underlying free cash flow an important
measure of our ability to generate cash, grow our business and
enhance shareholder value, driven by core operations and after
adjusting for non-core items. In addition, constant-currency
results exclude the impact of foreign currency movements. For
discussion and analysis of our liquidity, see the consolidated
statements of cash flows and the Liquidity and Capital Resources
section of our Management’s Discussion and Analysis of Financial
Condition and Results of Operations in our latest Form 10-K and
10-Q filings with the SEC.
We have provided reconciliations of all historical non-GAAP
measures to their nearest U.S. GAAP measure and have consistently
applied the adjustments within our reconciliations in arriving at
each non-GAAP measure. These adjustments consist of special items
from our U.S. GAAP financial statements as well as other non-core
items, such as integration related costs, unrealized mark-to-market
gains and losses, and gains and losses on sales of non-operating
assets, included in our U.S. GAAP results that warrant adjustment
to arrive at non-GAAP results. We consider these items to be
necessary adjustments for purposes of evaluating our ongoing
business performance and are often considered non-recurring. Such
adjustments are subjective and involve significant management
judgment.
Our guidance for underlying Corporate MG&A, underlying
depreciation and amortization, underlying free cash flow,
underlying COGS per hectoliter and underlying effective tax rate
are also non-GAAP financial measures that exclude or otherwise have
been adjusted for special items from our U.S. GAAP financial
statements as well as other non-core items, such as integration
related costs, unrealized mark-to-market gains and losses, and
gains and losses on sales of non-operating assets, included in our
U.S. GAAP results that warrant adjustment to arrive at non-GAAP
results. We consider these items to be necessary adjustments for
purposes of evaluating our ongoing business performance and are
often considered non-recurring. Such adjustments are subjective and
involve significant management judgment. We are unable to reconcile
the above described guidance measures to their nearest U.S. GAAP
measures without unreasonable efforts because we are unable to
predict with a reasonable degree of certainty the actual impact of
the special and other non-core items. By their very nature,
special and other non-core items are difficult to anticipate with
precision because they are generally associated with unexpected and
unplanned events that impact our company and its financial
results. Therefore, we are unable to provide a reconciliation
of these measures.
Constant currency is a non-GAAP measure utilized by Molson Coors
management to measure performance, excluding the impact of foreign
currency movements, and is intended to be indicative of results in
local currency. As we operate in various foreign countries where
the local currency may strengthen or weaken significantly versus
the U.S. dollar or other currencies used in operations, we utilize
a constant currency measure as an additional metric to evaluate the
underlying performance of each business without consideration of
foreign currency movements. This information is non-GAAP and should
be viewed as a supplement to (not a substitute for) our reported
results of operations under U.S. GAAP. We calculate the impact of
foreign exchange on net sales, pretax income, non-GAAP underlying
EBITDA and non-GAAP underlying pretax income using the following
steps:
- Multiply our current period local
currency operating results (that also include the impact of the
comparable prior-period currency hedging activities) by the
weighted average foreign exchange rates used to translate the
financial statements in the comparable prior year period. The
result is the current-period operating results in U.S. dollars, as
if foreign exchange rates had not changed from the prior-year
period.
- Subtract the result in step 1 from the
unadjusted current-period reported operating result in U.S. dollars
(U.S. GAAP measure). This difference reflects the impact of foreign
currency translational gains/losses included in the current-period
results.
- Determine the amount of actual
non-operating foreign currency gains/losses as a result of hedging
activities and activities transacted in a currency other than the
functional currency of each legal entity.
- Add the results of steps 2 and 3 above.
This sum equals the total impact of foreign currency translational
gains/losses and realized gains/losses from foreign currency
transactions. This is the value shown in the “Foreign Exchange $
Impact” column within the table above.
Reconciliations to Nearest U.S. GAAP Measures
Underlying EBITDA
($ in millions) (Unaudited)
Three Months Ended
March 31, 2019 March 31, 2018
% change U.S. GAAP:
Net income (loss) attributable
to MCBC $ 151.4 $ 278.1 (45.6 )%
Add: Net income (loss) attributable to noncontrolling interests
(2.3 ) 4.4 N/M U.S. GAAP:
Net income (loss) 149.1
282.5 (47.2 )% Add: Interest expense (income), net 73.3 83.2 (11.9
)% Add: Income tax expense (benefit) 32.2 74.9 (57.0 )% Add:
Depreciation and amortization 212.9 213.7 (0.4 )% Adjustments
included in underlying income(1) (36.4 ) (219.8 ) (83.4 )%
Adjustments to arrive at underlying EBITDA(2) (8.8 ) (8.5 ) 3.5 %
Non-GAAP:
Underlying EBITDA $ 422.3
$ 426.0 (0.9 )%
N/M = Not meaningful
(1) Includes adjustments to non-GAAP underlying
income within the table above related to special and non-core
items. (2) Represents adjustments to remove amounts related to
interest, depreciation and amortization included in the adjustments
to non-GAAP underlying income above, as these items are added back
as adjustments to net income attributable to MCBC.
Underlying Free Cash
Flow
(In millions) (Unaudited)
Three Months Ended March 31, 2019
March 31, 2018 U.S. GAAP:
Net Cash Provided
by (Used In) Operating Activities $ (98.5
) $ 315.2 Less: Additions to properties(1)
(198.0 ) (208.3 ) Add/Less: Cash impact of special items(2) 13.8
(324.8 ) Add: Non-core costs related to acquisition of
businesses(3) 12.6 22.8 Non-GAAP:
Underlying Free
Cash Flow $ (270.1 ) $
(195.1 )
(1)
Included in net cash used in investing activities. (2)
Included in net cash provided by (used in) operating activities.
For the three months ended March 31, 2019, primarily reflects costs
paid for restructuring activities and for the three months ended
March 31, 2018, primarily reflects the settlement payment received
relating to a purchase price adjustment. (3) Included in net cash
provided by (used in) operating activities and reflects integration
costs paid associated with the acquisition of 58% of MillerCoors,
LLC, and the Miller global brand portfolio.
Statements of
Operations -- Molson Coors Brewing Company and Subsidiaries
Condensed Consolidated Statements of
Operations
(In millions, except per share data)
(Unaudited)
Three Months Ended March 31,
2019 March 31, 2018 Financial volume in
hectoliters 20.101 20.813 Sales $ 2,800.1 $ 2,868.0
Excise taxes (496.8 ) (536.5 ) Net sales 2,303.3 2,331.5 Cost of
goods sold (1,413.0 ) (1,535.7 ) Gross profit 890.3 795.8
Marketing, general and administrative expenses (655.2 ) (681.1 )
Special items, net (13.0 ) 314.8 Operating income (loss)
222.1 429.5 Interest income (expense), net (73.3 ) (83.2 ) Other
pension and postretirement benefits (costs), net 8.6 10.0 Other
income (expense), net 23.9 1.1 Income (loss) before
income taxes 181.3 357.4 Income tax benefit (expense) (32.2 ) (74.9
) Net income (loss) 149.1 282.5 Net (income) loss attributable to
noncontrolling interests 2.3 (4.4 ) Net income (loss)
attributable to MCBC $ 151.4 $ 278.1 Basic net
income (loss) attributable to MCBC per share: $ 0.70 $ 1.29 Diluted
net income (loss) attributable to MCBC per share: $ 0.70 $ 1.28
Weighted average shares - basic 216.5 215.8 Weighted average
shares - diluted 216.9 216.6 Dividends per share $ 0.41
$ 0.41
Molson Coors Brewing Company and Subsidiaries
U.S. Results of
Operations
(In millions) (Unaudited)
Three Months Ended March 31, 2019
March 31, 2018 Financial volume in hectoliters(1) 14.187
14.718 Sales(1) $ 1,866.9 $ 1,861.7 Excise taxes
(207.7 ) (213.9 ) Net sales(1) 1,659.2 1,647.8 Cost of goods
sold(1) (1,010.3 ) (990.1 ) Gross profit 648.9 657.7 Marketing,
general and administrative expenses (375.6 ) (393.1 ) Special
items, net(2) (1.4 ) (1.5 ) Operating income 271.9 263.1 Interest
income (expense), net (2.3 ) (1.2 ) Other income (expense), net
(0.2 ) (0.2 ) Income (loss) before income taxes $ 269.4 $ 261.7
Add/(less): Special items, net(2) 1.4 1.5 Integration related
costs(3) — 1.1 Non-GAAP: Underlying pretax income
(loss) $ 270.8 $ 264.3 Add: Interest expense (income), net 2.3 1.2
Add: Depreciation and amortization 129.7 124.8 Adjustments to
arrive at underlying EBITDA(4) (0.8 ) (1.4 ) Non-GAAP: Underlying
EBITDA $ 402.0 $ 388.9
(1)
Includes gross inter-segment sales, purchases, and volumes, which
are eliminated in the consolidated totals. (2) See Part I—Item 1.
Financial Statements, Note 6, "Special Items" of our Form 10-Q for
the three months ended March 31, 2019 (the "Form 10-Q") for
detailed discussion of special items. Special items for the three
months ended March 31, 2019, and March 31, 2018, includes
accelerated depreciation in excess of normal depreciation of $0.8
million and $1.4 million, respectively. These accelerated
depreciation charges are included in our adjustments to arrive at
underlying EBITDA. (3) For the three months ended March 31, 2018,
$1.1 million of integration costs were incurred in cost of goods
sold. (4) Represents adjustments to remove amounts related to
interest, depreciation and amortization included in the adjustments
to non-GAAP underlying income above, as these items are added back
as adjustments to net income attributable to MCBC.
Molson Coors Brewing Company and Subsidiaries
Canada Results of
Operations
(In millions) (Unaudited)
Three Months Ended
March 31, 2019
March 31, 2018
Financial volume in hectoliters(1)
1.624
1.707
Sales(1)
$
340.7
$
374.9 Excise taxes
(79.7 )
(91.1 ) Net sales(1)
261.0
283.8 Cost of goods sold(1)
(180.4 )
(187.4 ) Gross profit
80.6
96.4 Marketing, general and administrative expenses
(76.2 )
(81.0 ) Special items, net(2)
(7.6 )
(5.6 ) Operating income (loss)
(3.2 )
9.8 Other income (expense), net
25.0
(0.7 ) Income (loss) before income taxes
$
21.8
$
9.1 Add/(less): Special items, net(2)
7.6
5.6 Integration related costs(3)
1.7
0.1 Other non-core items(4)
(24.4 )
— Non-GAAP: Underlying pretax income (loss)
$
6.7
$
14.8 Add: Depreciation and amortization
34.7
36.0 Adjustments to arrive at underlying EBITDA(5)
(7.6 )
(6.1 ) Non-GAAP: Underlying EBITDA
$
33.8
$
44.7
(1) Includes gross inter-segment
sales, purchases, and volumes, which are eliminated in the
consolidated totals. (2) See Part I—Item 1. Financial Statements,
Note 6, "Special Items" of the Form 10-Q for detailed discussion of
special items. Special items for the three months ended March 31,
2019, and March 31, 2018, includes accelerated depreciation in
excess of normal depreciation of $7.6 million and $6.1 million,
respectively, related to the planned closure of the Vancouver and
Montreal breweries. These accelerated depreciation charges in
excess of normal depreciation are included in our adjustments to
arrive at underlying EBITDA. (3) For the three months ended March
31, 2019, and March 31, 2018, integration related charges of $1.7
million and $0.1 million, respectively, were incurred in cost of
goods sold. (4) For the three months ended March 31, 2019, a gain
of $22.9 million was recorded in other income (expense), net
related to the unrealized mark-to-market changes of the HEXO
warrants. Separately, a gain of $1.5 million was recorded in other
income (expense), net resulting from a purchase price adjustment
related to the historical sale of Molson Inc.’s ownership interest
in the Montreal Canadiens. (5) Represents adjustments to remove
amounts related to interest, depreciation and amortization included
in the adjustments to non-GAAP underlying income above, as these
items are added back as adjustments to net income attributable to
MCBC.
Molson Coors Brewing Company and Subsidiaries
Europe Results of
Operations
(In millions) (Unaudited)
Three Months Ended
March 31, 2019
March 31, 2018
Financial volume in hectoliters(1)(2)
4.304
4.404
Sales(2) $ 564.1 $ 598.5 Excise taxes
(201.2
)
(224.2
) Net sales(2)
362.9
374.3 Cost of goods sold
(252.1
)
(267.7
) Gross profit
110.8
106.6
Marketing, general and administrative expenses
(132.3
)
(130.4
) Special items, net(3)
(3.3
)
(5.1
) Operating income (loss)
(24.8
)
(28.9
) Interest income (expense), net
(1.3
)
(0.7
) Other income (expense), net
(1.4
)
(0.3
) Income (loss) before income taxes $ (27.5 ) $ (29.9 ) Add/(less):
Special items, net(3)
3.3
5.1
Integration related costs(4)
—
0.2
Non-GAAP: Underlying pretax income (loss) $ (24.2 ) $ (24.6
)
Add: Interest expense (income), net
1.3
0.7
Add: Depreciation and amortization
45.2
49.4
Adjustments to arrive at underlying EBITDA(5)
(0.4
)
(1.0
) Non-GAAP: Underlying EBITDA $ 21.9 $ 24.5
(1) Excludes royalty volume of 0.294 million
hectoliters for the three months ended March 31, 2019, and excludes
royalty volume of 0.306 million hectoliters for the three months
ended March 31, 2018. (2) Includes gross inter-segment sales and
volumes, which are eliminated in the consolidated totals. (3) See
Part I—Item 1. Financial Statements, Note 6, "Special Items" of the
Form 10-Q for detailed discussion of special items. Special items
for the three months ended March 31, 2019 and March 31, 2018,
includes accelerated depreciation in excess of normal depreciation
of $0.4 million and $1.0 million, respectively, related to the
closure of our Burton South brewery in the U.K., which closed in
the first quarter of 2018. These accelerated depreciation charges
in excess of normal depreciation are included in our adjustments to
arrive at underlying EBITDA. (4) For the three months ended March
31, 2018, $0.2 million of integration related costs were incurred
in cost of goods sold. (5) Represents adjustments to remove amounts
related to interest, depreciation and amortization included in the
adjustments to non-GAAP underlying income above, as these items are
added back as adjustments to net income attributable to MCBC.
Molson Coors Brewing Company and Subsidiaries
International Results of
Operations
(In millions) (Unaudited)
Three Months Ended
March 31, 2019
March 31, 2018
Financial volume in hectoliters(1)
0.425
0.520 Sales $ 56.1 $ 64.8 Excise taxes
(8.2 )
(7.3 ) Net sales
47.9
57.5 Cost of goods sold(2)
(31.0 )
(37.8 ) Gross profit
16.9
19.7 Marketing, general and administrative expenses
(16.6 )
(15.1 ) Special items, net(3)
(0.4 )
(1.0 ) Operating income (loss)
(0.1 )
3.6 Other income (expense), net
(0.2 )
0.1 Income (loss) before income taxes $ (0.3 ) $ 3.7
Add/(less): Special items, net(3)
0.4
1.0 Integration related costs(4)
0.1
— Non-GAAP: Underlying pretax income (loss) $ 0.2 $ 4.7 Add:
Depreciation and amortization
2.5
2.4 Non-GAAP: Underlying EBITDA $ 2.7 $ 7.1
(1) Excludes royalty volume of 0.443
million hectoliters for the three months ended March 31, 2019, and
excludes royalty volume of 0.410 million hectoliters for the three
months ended March 31, 2018. (2) Includes gross inter-segment
purchases, which are eliminated in the consolidated totals. (3) See
Part I—Item 1. Financial Statements, Note 6, "Special Items" of the
Form 10-Q for detailed discussion of special items. (4) For the
three months ended March 31, 2019, $0.1 million of integration
costs were incurred in marketing, general & administrative
expenses.
Molson Coors Brewing Company and Subsidiaries
Corporate Results of
Operations
(In millions) (Unaudited)
Three Months Ended
March 31, 2019
March 31, 2018
Financial volume in hectoliters
—
— Sales $ 0.2 $ 0.2 Excise taxes
— — — Net sales
0.2
0.2 Cost of goods sold
32.9
(84.8 ) Gross profit
33.1
(84.6 ) Marketing, general and administrative expenses
(54.5 )
(61.5 ) Special items, net(1)
(0.3 )
328.0 Operating income (loss)
(21.7 )
181.9 Interest expense, net
(69.7 )
(81.3 ) Other pension and postretirement benefits (costs), net
8.6
10.0 Other income (expense), net
0.7
2.2 Income (loss) before income taxes $ (82.1 ) $ 112.8
Add/(less): Special items, net(1)
0.3
(328.0 ) Integration related costs(2)
7.3
8.8 Unrealized mark-to-market (gains) and losses(3)
(34.1 )
84.7 Non-core other pension and postretirement benefits (costs),
net
—
0.1 Non-GAAP: Underlying pretax income (loss) $ (108.6 ) $
(121.6 ) Add: Interest expense (income), net
69.7
81.3 Add: Depreciation and amortization
0.8
1.1 Non-GAAP: Underlying EBITDA $ (38.1 ) $ (39.2 )
(1) See Part I—Item 1. Financial Statements,
Note 6, "Special Items" of the Form 10-Q for detailed discussion of
special items. (2) In connection with the acquisition, for the
three months ended March 31, 2019, and March 31, 2018, we have
recorded $7.3 million and $8.8 million, respectively, of
integration costs within marketing, general & administrative
expenses. (3) The unrealized changes in fair value on our commodity
swaps, which are economic hedges, are recorded as cost of goods
sold within our Corporate business activities. As the exposure we
are managing is realized, we reclassify the gain or loss to the
segment in which the underlying exposure resides, allowing our
segments to realize the economic effects of the derivative without
the resulting unrealized mark-to-market volatility.
Balance Sheet
Condensed Consolidated Balance
Sheets
(In millions, except par value)
(Unaudited)
As of
March 31, 2019
December 31, 2018
Assets Current assets: Cash and cash equivalents $ 234.4 $
1,057.9 Accounts receivable, net
909.5
744.4 Other receivables, net
141.6
126.6 Inventories, net
687.9
591.8 Other current assets, net
364.6
245.6 Total current assets
2,338.0
2,766.3 Properties, net
4,553.3
4,608.3 Goodwill
8,279.4
8,260.8 Other intangibles, net
13,749.6
13,776.4 Other assets
903.3
698.0 Total assets $ 29,823.6 $ 30,109.8
Liabilities and equity Current liabilities: Accounts payable
and other current liabilities $ 2,561.3 $ 2,706.4 Current portion
of long-term debt and short-term borrowings
1,641.1
1,594.5 Total current liabilities
4,202.4
4,300.9 Long-term debt
8,484.8
8,893.8 Pension and postretirement benefits
726.9
726.6 Deferred tax liabilities
2,151.5
2,128.9 Other liabilities
369.9
323.8 Total liabilities
15,935.5
16,374.0 Molson Coors Brewing Company stockholders' equity Capital
stock: Preferred stock, $0.01 par value (authorized: 25.0 shares;
none issued)
—
— Class A common stock, $0.01 par value per share (authorized:
500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares,
respectively)
—
— Class B common stock, $0.01 par value per share (authorized:
500.0 shares; issued: 205.7 shares and 205.4 shares, respectively)
2.0
2.0 Class A exchangeable shares, no par value (issued and
outstanding: 2.8 shares and 2.8 shares, respectively)
103.2
103.2 Class B exchangeable shares, no par value (issued and
outstanding: 14.8 shares and 14.8 shares, respectively)
557.6
557.6 Paid-in capital
6,776.2
6,773.1 Retained earnings
7,862.4
7,692.9 Accumulated other comprehensive income (loss)
(1,182.7 )
(1,150.0 ) Class B common stock held in treasury at cost (9.5
shares and 9.5 shares, respectively)
(471.4 )
(471.4 ) Total Molson Coors Brewing Company stockholders' equity
13,647.3
13,507.4 Noncontrolling interests
240.8
228.4 Total equity
13,888.1
13,735.8 Total liabilities and equity $ 29,823.6 $
30,109.8
Cash Flow Statement
Condensed Consolidated Statements of
Cash Flows
($ in millions) (Unaudited)
Three Months Ended
March 31, 2019
March 31, 2018
Cash flows from operating activities: Net income (loss) including
noncontrolling interests $ 149.1 $ 282.5 Adjustments to reconcile
net income (loss) to net cash provided by (used in) operating
activities: Depreciation and amortization
212.9
213.7 Amortization of debt issuance costs and discounts
3.7
4.1 Share-based compensation
11.4
14.8 (Gain) loss on sale or impairment of properties and other
assets, net
0.5
0.7 Unrealized (gain) loss on foreign currency fluctuations and
derivative instruments, net
(57.2 )
83.5 Income tax (benefit) expense
32.2
74.9 Income tax (paid) received
(8.5 )
(8.9 ) Interest expense, excluding interest amortization
72.1
79.3 Interest paid
(103.1 )
(115.2 ) Change in current assets and liabilities and other
(411.6 )
(314.2 ) Net cash provided by (used in) operating activities
(98.5 )
315.2 Cash flows from investing activities: Additions to
properties
(198.0 )
(208.3 ) Proceeds from sales of properties and other assets
2.4
1.6 Other
1.0
(45.4 ) Net cash provided by (used in) investing activities
(194.6 )
(252.1 ) Cash flows from financing activities: Exercise of stock
options under equity compensation plans
0.6
6.1 Dividends paid
(88.7 )
(88.5 ) Payments on debt and borrowings
(1,067.2 )
(0.8 ) Net proceeds from (payments on) revolving credit facilities
and commercial paper
604.3
(248.7 ) Change in overdraft balances and other
16.2
42.0 Net cash provided by (used in) financing activities
(534.8 )
(289.9 ) Cash and cash equivalents: Net increase (decrease) in cash
and cash equivalents
(827.9 )
(226.8 ) Effect of foreign exchange rate changes on cash and cash
equivalents
4.4
6.1 Balance at beginning of year
1,057.9
418.6 Balance at end of period $ 234.4 $ 197.9
Reconciliations to Nearest U.S. GAAP Measures by Line
Item First Quarter 2019
Three Months Ended March 31,
2019
(In millions) (Unaudited)
Net sales
Cost ofgoods sold((1))
Gross profit
Marketing,general
andadministrativeexpenses((2))
Special items,net((3))
Operatingincome (loss)
Reported (U.S. GAAP) $ 2,303.3 $ (1,413.0 ) $ 890.3 $ (655.2
) $ (13.0 ) $ 222.1 Adjustments to arrive at underlying: Special
items, net Employee-related charges
—
—
—
—
3.7
3.7 Impairments or asset abandonment charges
—
—
—
—
9.0
9.0 Termination fees and other (gains) losses
—
—
—
—
0.3
0.3 Non-Core items Integration related costs
—
1.7
1.7
7.4
—
9.1 Unrealized mark-to-market (gains) losses
—
(34.1 )
(34.1 ) — —
—
(34.1 )
Underlying (Non-GAAP) $ 2,303.3 $ (1,445.4 )
$ 857.9 $ (647.8 ) $ — $ 210.1
First Quarter 2019
Three Months Ended March 31,
2019
(In millions, except per share
data)(Unaudited)
Interestincome(expense),net
Other
pensionandpostretirementbenefits(costs),
net
Otherincome(expense),net((4))
Income(loss)beforeincometaxes
Incometaxbenefit(expense)
Net
income(loss)attributableto MCBC
Net
income(loss)attributable toMCBC
perdiluted share
Reported (U.S. GAAP) $ (73.3 ) $ 8.6 $ 23.9 $ 181.3 $ (32.2
) $ 151.4 $ 0.70 Adjustments to arrive at underlying: Special
items, net Employee-related charges
—
—
—
3.7
—
3.7
0.02 Impairments or asset abandonment charges
—
—
—
9.0
—
9.0
0.04 Termination fees and other (gains) losses
—
—
—
0.3
—
0.3
— Non-Core items Integration related costs
—
—
—
9.1
—
9.1
0.04 Unrealized mark-to-market (gains) losses
—
—
—
(34.1 )
—
(34.1 )
(0.16 ) Other non-core items
—
—
(24.4 )
(24.4 )
—
(24.4 )
(0.11 ) Tax effects on special and non-GAAP items
—
— — — — —
(2.3 )
(2.3 )
(0.01 )
Underlying (Non-GAAP) $ (73.3 ) $ 8.6 $ (0.5
) $ 144.9 $ (34.5 ) $ 112.7 $ 0.52
(1)
Adjustments relate to the following segments: Canada segment
$1.7 million, Corporate segment $(34.1) million. (2) Adjustments
relate to the following segment: International segment $0.1
million, Corporate segment $7.3 million. (3) Adjustments relate to
the following segments: U.S. segment $1.4 million, Canada segment
$7.6 million, Europe segment $3.3 million, International segment
$0.4 million, Corporate segment $0.3 million. (4) Adjustments
relate to the following segment: Canada segment $(24.4) million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190501005380/en/
News MediaEric Gunning,
(303) 927-2448
Investor RelationsMark
Swartzberg, (303) 927-2334
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