Coca-Cola Consolidated, Inc. (NASDAQ:COKE) today reported operating
results for the third quarter and first nine months ended
September 27, 2020.
“Our strong third quarter results are a testament to the hard
work of our teammates across our territory and the overall strength
of the Coca-Cola system,” said J. Frank Harrison, III, Chairman and
Chief Executive Officer. “Based on the strength of our
year-to-date results and our outlook for the remainder of the year,
we are moving forward with a number of large capital projects
designed to increase our manufacturing capacity, expand key
warehouses and improve the use of automation and technology within
our business.”
“My family has been a Coca-Cola bottler for over 118 years and
our long-term view of this business enables us to look past the
business volatility and economic uncertainty we are currently
facing,” Mr. Harrison continued. “We are confident that the
operating and reinvestment decisions we are making this year will
strengthen the long-term health of our business by supporting
future growth and making our operations more efficient and
effective.”
Physical case volume increased 3.9% in the third quarter of
2020, as sales of multi-serve packages in larger retail stores
remained strong and single-serve sales began to gradually improve
in small stores and accounts where our products are consumed
on-premise. Sparkling category volume increased 3.6% in the
third quarter of 2020, while Still beverages grew 4.5%. Still
beverage sales are more tied to smaller outlets than our Sparkling
category, and sales of Still products improved as certain
government-imposed restrictions were eased or lifted during the
third quarter. While volume growth was strong for the third
quarter of 2020, sales volume softened in the last two months of
the quarter, as indicated by the monthly volume summary shown
below.
|
Bottle/can physical case volume |
|
|
(in millions) |
|
July |
|
August |
|
September |
|
Third Quarter |
|
|
2020 |
|
30.6 |
|
28.5 |
|
35.0 |
|
94.1 |
|
|
2019 |
|
27.7 |
|
28.6 |
|
34.3 |
|
90.6 |
|
|
Change |
|
2.9 |
|
(0.1) |
|
0.8 |
|
3.5 |
|
|
% Change |
|
10.3% |
|
(0.4)% |
|
2.2% |
|
3.9% |
|
Revenue increased 4.5% in the third quarter of 2020.
Revenue from our bottle/can Sparkling beverages increased 7.0% in
the third quarter of 2020, driven primarily by volume growth and
price realization within this category. Sales of multi-serve
PET packages were especially strong in the quarter as we adjusted
our commercial plans to emphasize PET packages and limit product
assortment in cans as demand for aluminum cans has exceeded supply
this year. Revenue from our Still beverages increased 6.0% in
the third quarter of 2020 as a result of higher sales volume in
small stores and on-premise outlets. Revenue from fountain
syrup, which is primarily sold through restaurants, convenience
stores, amusement parks, and other on-premise outlets, declined
$19.5 million, or 35.2%, during the third quarter of
2020. While the decline in fountain syrup revenue was
significant, we are experiencing gradual improvement within this
revenue stream as compared to the second quarter of 2020, as
traffic continues to increase at our on-premise outlets.
For the first nine months of 2020, revenue increased
$81.1 million, or 2.2%. While sales within our Sparkling
and Still categories grew 5.8% and 3.2% for the first nine months
of 2020, respectively, fountain syrup sales decreased 33.8%.
Gross profit increased $40.2 million, or 9.3%, in the third
quarter of 2020, while gross margin increased 160 basis points
to 35.6%. On an adjusted(b) basis, gross profit increased
$39.0 million, or 9.0%, in the third quarter of 2020.
The improvement in gross profit and gross margin was primarily due
to price realization within our Sparkling category, favorable input
costs, and lower manufacturing costs. Gross profit in the
first nine months of 2020 increased $49.7 million, or 4.0%,
while gross margin increased 60 basis points to 35.1%. On an
adjusted(b) basis, gross profit increased $47.9 million
compared to the first nine months of 2019.
“We made tough decisions in the early days of the pandemic to
adjust both our commercial plan and our operating model.
Demand for our products remained strong in the third quarter as
consumers continued to adapt to changes in local markets and
fluctuations in their daily routines,” said Dave Katz, President
and Chief Operating Officer. “We are staying nimble with our
business plans and adjusting our operating model, as needed.
Our team has done an incredible job working through raw material
supply issues and manufacturing constraints to keep our products
in-stock to support our retail partners and loyal consumers.”
Selling, delivery and administrative (“SD&A”) expenses in
the third quarter of 2020 decreased $9.8 million, or
2.6%. SD&A expenses as a percentage of net sales
decreased 210 basis points in the third quarter of 2020.
Adjusted(b) SD&A expenses in the third quarter of 2020
decreased $7.4 million, or 2.0%. The decrease in
SD&A expenses related to lower labor and benefits costs as a
result of adjustments we made to our operating model earlier in the
year in response to COVID-19-related impacts on our business.
Additionally, we generated favorable results in a number of expense
categories due to the diligent management of our variable operating
expenses. SD&A expenses in the first nine months of 2020
decreased $28.8 million, or 2.6%. SD&A expenses as a
percentage of net sales decreased 140 basis points in the
first nine months of 2020 as compared to the first nine months of
2019.
“Our 2020 margins, profit and cash flow are all exceeding our
initial expectations as we generate strong top-line growth, realize
favorable input costs, and tightly manage our operating
expenses. Lower single-serve sales during the pandemic
resulted in gross profit shortfalls that we have more than offset
by significantly reducing spending in a number of categories during
this unique time,” Mr. Katz continued. “While we are working
to maximize our results in 2020, we recognize it will be difficult
to maintain this low level of spending in the months ahead.
Our operating expenses will increase as businesses, educational
institutions, and entertainment venues reopen and consumer activity
returns to pre-COVID levels, and we expect moderate commodity price
inflation to return in 2021 as well.”
Income from operations in the third quarter of 2020 was
$103.8 million, compared to $53.8 million in the third
quarter of 2019, an increase of 92.9%. Adjusted(b) income
from operations in the third quarter of 2020 was
$105.2 million, an increase of 79.1%. For the first nine
months of 2020, income from operations increased $78.6 million
to $219.8 million. Adjusted(b) income from operations in
the first nine months of 2020 was $223.6 million, an increase
of $66.6 million, or 42.4%, compared to the first nine months
of 2019.
Net income in the third quarter of 2020 was $51.9 million,
compared to $13.0 million in the third quarter of 2019, an
improvement of $38.9 million. Net income in the third
quarter of 2020 was adversely impacted by fair value adjustments to
our acquisition related contingent consideration liability, driven
by changes in 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. Net income
increased $84.6 million for the first nine months of 2020 to
$106.1 million, as compared to the first nine months of
2019.
Cash flows provided by operations for the first nine months of
2020 were $376.4 million, compared to $204.6 million for
the first nine months of 2019. The significant increase in
operating cash flows for the first nine months of 2020 was a result
of our strong operating performance and working capital
improvement, primarily related to lower inventory and the timing of
accounts payable.
(a) |
|
All comparisons are to the corresponding period in the prior year
unless specified otherwise. |
(b) |
|
The discussion of the results for
the third quarter ended September 27, 2020 includes selected
non-GAAP financial information, such as “adjusted” results.
The schedules in this news release reconcile such non-GAAP
financial measures to the most directly comparable GAAP financial
measures. |
(c) |
|
Fountain syrups are dispensed
through equipment that mixes with carbonated or still water,
enabling fountain retailers to sell finished products to consumers
in cups or glasses. |
About Coca-Cola Consolidated, Inc.Coca-Cola
Consolidated is the largest Coca-Cola bottler in the United
States. Our Purpose is to honor God in all we do, serve
others, pursue excellence and grow profitably. For over
118 years, we have been deeply committed to the consumers,
customers and communities we serve and passionate about the broad
portfolio of beverages and services we offer. We make, sell
and distribute beverages of The Coca-Cola Company and
other partner companies in more than 300 brands and flavors
across 14 states and the District of Columbia to over
66 million consumers.
Headquartered in Charlotte, N.C., Coca-Cola 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 Coca-Cola 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 “anticipate,” “believe,” “expect,” “project,” “may,”
“will,” “should,” “could” and similar expressions are intended to
identify those forward-looking statements. These forward-looking
statements reflect the Company’s best judgment based on current
information, and, although we base these statements on
circumstances that we believe to be reasonable when made, there can
be no assurance that future events will not affect the accuracy of
such forward-looking information. As such, the forward-looking
statements are not guarantees of future performance, and actual
results may vary materially from the projected results and
expectations discussed in this news release. Factors that might
cause the Company’s actual results to differ materially from those
anticipated in forward-looking statements include, but are not
limited to: increased costs, disruption of supply or
shortages of raw materials, fuel and other supplies; the reliance
on purchased finished products from external sources; changes in
public and consumer perception and preferences, including concerns
related to obesity, artificial ingredients, product safety and
sustainability and brand reputation; changes in government
regulations related to nonalcoholic beverages, including
regulations related to obesity, public health, artificial
ingredients and product safety and sustainability; technology
failures or cyberattacks on our technology systems or our effective
response to technology failures or cyberattacks on our customers’,
suppliers’ or other third parties’ technology systems; decreases
from historic levels of marketing funding support provided to us by
The Coca‑Cola Company and other beverage companies; material
changes in the performance requirements for marketing funding
support or our inability to meet such requirements; decreases from
historic levels of advertising, marketing and product innovation
spending by The Coca‑Cola Company and other beverage companies, or
advertising campaigns that are negatively perceived by the public;
any failure of the several Coca‑Cola system governance entities of
which we are a participant to function efficiently or on our best
behalf and any failure or delay of ours to receive anticipated
benefits from these governance entities; provisions in our beverage
distribution and manufacturing agreements with The Coca‑Cola
Company that could delay or prevent a change in control of us or a
sale of our Coca‑Cola distribution or manufacturing businesses; the
concentration of our capital stock ownership; unfavorable changes
in the general economy; changes in our top customer relationships
and marketing strategies; lower than expected net pricing of our
products resulting from continued and increased customer and
competitor consolidations and marketplace competition; our
inability to meet requirements under our beverage distribution and
manufacturing agreements; the effect of changes in our level of
debt, borrowing costs and credit ratings on our access to capital
and credit markets, operating flexibility and ability to obtain
additional financing to fund future needs; the failure to attract,
train and retain qualified employees while controlling labor costs,
and other labor issues; the failure to maintain productive
relationships with our employees covered by collective bargaining
agreements, including failing to renegotiate collective bargaining
agreements; changes in accounting standards; our use of estimates
and assumptions; changes in the inputs used to calculate our
acquisition related contingent consideration liability; changes in
tax laws, disagreements with tax authorities or additional tax
liabilities; changes in legal contingencies; natural disasters,
changing weather patterns and unfavorable weather; climate change
or legislative or regulatory responses to such change; and the
COVID-19 pandemic and other pandemic outbreaks in the future. These
and other factors are discussed in the Company’s regulatory filings
with the Securities and Exchange Commission, including those in
“Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K
for the fiscal year ended December 29, 2019 and in “Item 1A. Risk
Factors” of the Company’s Quarterly Report on Form 10-Q for the
quarter ended June 28, 2020. 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 applicable law.
|
FINANCIAL
STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED) |
|
|
|
Third Quarter |
|
First Nine Months |
(in
thousands, except per share data) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net sales |
|
$ |
1,328,484 |
|
$ |
1,271,029 |
|
$ |
3,728,720 |
|
$ |
3,647,600 |
Cost of sales |
|
856,046 |
|
838,805 |
|
2,421,686 |
|
2,390,289 |
Gross profit |
|
472,438 |
|
432,224 |
|
1,307,034 |
|
1,257,311 |
Selling, delivery and
administrative expenses |
|
368,594 |
|
378,378 |
|
1,087,251 |
|
1,116,097 |
Income from operations |
|
103,844 |
|
53,846 |
|
219,783 |
|
141,214 |
Interest expense, net |
|
9,033 |
|
10,965 |
|
27,778 |
|
35,846 |
Other expense, net |
|
21,394 |
|
20,711 |
|
39,826 |
|
67,743 |
Income before income taxes |
|
73,417 |
|
22,170 |
|
152,179 |
|
37,625 |
Income tax expense |
|
18,363 |
|
6,624 |
|
38,911 |
|
10,801 |
Net income |
|
55,054 |
|
15,546 |
|
113,268 |
|
26,824 |
Less: Net income attributable to
noncontrolling interest |
|
3,170 |
|
2,540 |
|
7,153 |
|
5,279 |
Net income attributable
to Coca-Cola Consolidated, Inc. |
|
$ |
51,884 |
|
$ |
13,006 |
|
$ |
106,115 |
|
$ |
21,545 |
|
|
|
|
|
|
|
|
|
Basic net income per
share based on net income attributable to Coca-Cola Consolidated,
Inc.: |
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
5.53 |
|
$ |
1.39 |
|
$ |
11.32 |
|
$ |
2.30 |
Weighted average number of Common
Stock shares outstanding |
|
7,141 |
|
7,141 |
|
7,141 |
|
7,141 |
|
|
|
|
|
|
|
|
|
Class B Common Stock |
|
$ |
5.53 |
|
$ |
1.39 |
|
$ |
11.32 |
|
$ |
2.30 |
Weighted average number of Class
B Common Stock shares outstanding |
|
2,232 |
|
2,232 |
|
2,232 |
|
2,228 |
|
|
|
|
|
|
|
|
|
Diluted net income per
share based on net income attributable to Coca-Cola Consolidated,
Inc.: |
|
|
|
|
|
|
|
|
Common Stock |
|
$ |
5.51 |
|
$ |
1.38 |
|
$ |
11.25 |
|
$ |
2.29 |
Weighted average number of Common
Stock shares outstanding – assuming dilution |
|
9,430 |
|
9,413 |
|
9,430 |
|
9,409 |
|
|
|
|
|
|
|
|
|
Class B Common Stock |
|
$ |
5.51 |
|
$ |
1.38 |
|
$ |
11.24 |
|
$ |
2.28 |
Weighted average number of Class
B Common Stock shares outstanding – assuming dilution |
|
2,289 |
|
2,272 |
|
2,289 |
|
2,268 |
|
FINANCIAL
STATEMENTS CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED) |
|
(in
thousands) |
|
September 27, 2020 |
|
December 29, 2019 |
ASSETS |
|
|
|
|
Current
Assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
164,823 |
|
|
$ |
9,614 |
|
Trade accounts receivable,
net |
|
428,352 |
|
|
419,770 |
|
Accounts receivable,
other |
|
99,085 |
|
|
105,505 |
|
Inventories |
|
207,773 |
|
|
225,926 |
|
Prepaid expenses and other
current assets |
|
69,829 |
|
|
69,461 |
|
Assets held for sale |
|
7,036 |
|
|
— |
|
Total current assets |
|
976,898 |
|
|
830,276 |
|
Property, plant and equipment,
net |
|
979,210 |
|
|
997,403 |
|
Right-of-use assets -
operating leases |
|
135,559 |
|
|
111,376 |
|
Leased property under
financing leases, net |
|
71,281 |
|
|
17,960 |
|
Other assets |
|
111,775 |
|
|
113,269 |
|
Goodwill |
|
165,903 |
|
|
165,903 |
|
Other identifiable intangible
assets, net |
|
872,267 |
|
|
890,739 |
|
Total assets |
|
$ |
3,312,893 |
|
|
$ |
3,126,926 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Current portion of obligations
under operating leases |
|
$ |
18,812 |
|
|
$ |
15,024 |
|
Current portion of obligations
under financing leases |
|
5,814 |
|
|
9,403 |
|
Accounts payable and accrued
expenses |
|
659,364 |
|
|
597,768 |
|
Total current liabilities |
|
683,990 |
|
|
622,195 |
|
Deferred income taxes |
|
131,218 |
|
|
125,130 |
|
Pension and postretirement
benefit obligations and other liabilities |
|
782,792 |
|
|
783,397 |
|
Noncurrent portion of
obligations under operating leases |
|
121,288 |
|
|
97,765 |
|
Noncurrent portion of
obligations under financing leases |
|
71,183 |
|
|
17,403 |
|
Long-term debt |
|
962,867 |
|
|
1,029,920 |
|
Total liabilities |
|
2,753,338 |
|
|
2,675,810 |
|
|
|
|
|
|
Equity: |
|
|
|
|
Stockholders’ equity |
|
448,238 |
|
|
346,952 |
|
Noncontrolling interest |
|
111,317 |
|
|
104,164 |
|
Total liabilities and equity |
|
$ |
3,312,893 |
|
|
$ |
3,126,926 |
|
|
FINANCIAL
STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED) |
|
|
|
First Nine Months |
(in
thousands) |
|
2020 |
|
2019 |
Cash Flows from
Operating Activities: |
|
|
|
|
Net income |
|
$ |
113,268 |
|
|
$ |
26,824 |
|
Depreciation expense,
amortization of intangible assets and deferred proceeds, net |
|
134,489 |
|
|
136,416 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
35,068 |
|
|
62,017 |
|
Deferred income taxes |
|
5,302 |
|
|
5,254 |
|
Stock compensation
expense |
|
— |
|
|
2,045 |
|
Change in assets and
liabilities |
|
74,884 |
|
|
(39,071 |
) |
Other |
|
13,390 |
|
|
11,098 |
|
Net cash provided by
operating activities |
|
$ |
376,401 |
|
|
$ |
204,583 |
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
Additions to property, plant
and equipment |
|
$ |
(110,717 |
) |
|
$ |
(96,747 |
) |
Other |
|
627 |
|
|
(5,339 |
) |
Net cash used in
investing activities |
|
$ |
(110,090 |
) |
|
$ |
(102,086 |
) |
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
Payments on revolving credit
facility, term loan facility and senior notes |
|
$ |
(302,500 |
) |
|
$ |
(508,839 |
) |
Borrowings under revolving
credit facility and proceeds from issuance of senior notes |
|
235,000 |
|
|
431,339 |
|
Payments of acquisition
related contingent consideration |
|
(31,999 |
) |
|
(18,784 |
) |
Cash dividends paid |
|
(7,030 |
) |
|
(7,026 |
) |
Principal payments on
financing obligations |
|
(4,428 |
) |
|
(6,441 |
) |
Debt issuance fees |
|
(145 |
) |
|
(305 |
) |
Net cash used in
financing activities |
|
$ |
(111,102 |
) |
|
$ |
(110,056 |
) |
|
|
|
|
|
Net increase (decrease) in
cash during period |
|
$ |
155,209 |
|
|
$ |
(7,559 |
) |
Cash at beginning of
period |
|
9,614 |
|
|
13,548 |
|
Cash at end of
period |
|
$ |
164,823 |
|
|
$ |
5,989 |
|
|
NON-GAAP
FINANCIAL MEASURES(d) The following tables reconcile reported
results (GAAP) to adjusted results (non-GAAP): |
|
|
|
Third Quarter 2020 |
(in
thousands, except per share data) |
|
Grossprofit |
|
SD&Aexpenses |
|
Incomefromoperations |
|
Incomebeforeincome taxes |
|
Netincome |
|
Basic netincomeper share |
Reported results (GAAP) |
|
$ |
472,438 |
|
|
$ |
368,594 |
|
|
$ |
103,844 |
|
|
$ |
73,417 |
|
|
$ |
51,884 |
|
|
$ |
5.53 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
— |
|
|
— |
|
|
— |
|
|
19,808 |
|
|
14,895 |
|
|
1.59 |
|
Fair value adjustments for
commodity derivative instruments |
|
(1,194 |
) |
|
575 |
|
|
(1,769 |
) |
|
(1,769 |
) |
|
(1,330 |
) |
|
(0.14 |
) |
Supply chain and asset
optimization |
|
3,122 |
|
|
— |
|
|
3,122 |
|
|
3,122 |
|
|
2,348 |
|
|
0.25 |
|
Other tax adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(421 |
) |
|
(0.04 |
) |
Total reconciling
items |
|
$ |
1,928 |
|
|
$ |
575 |
|
|
$ |
1,353 |
|
|
$ |
21,161 |
|
|
$ |
15,492 |
|
|
1.66 |
|
Adjusted results
(non-GAAP) |
|
$ |
474,366 |
|
|
$ |
369,169 |
|
|
$ |
105,197 |
|
|
$ |
94,578 |
|
|
$ |
67,376 |
|
|
$ |
7.19 |
|
|
|
Third Quarter 2019 |
(in
thousands, except per share data) |
|
Grossprofit |
|
SD&Aexpenses |
|
Incomefromoperations |
|
Incomebeforeincome taxes |
|
Netincome |
|
Basic netincomeper 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 derivative instruments |
|
(487 |
) |
|
(74 |
) |
|
(413 |
) |
|
(413 |
) |
|
(311 |
) |
|
(0.04 |
) |
Supply chain and asset
optimization |
|
3,581 |
|
|
— |
|
|
3,581 |
|
|
3,581 |
|
|
2,693 |
|
|
0.29 |
|
Capitalization threshold
change for certain assets |
|
— |
|
|
(1,732 |
) |
|
1,732 |
|
|
1,732 |
|
|
1,302 |
|
|
0.14 |
|
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 |
|
|
|
First Nine Months 2020 |
(in
thousands, except per share data) |
|
Grossprofit |
|
SD&Aexpenses |
|
Incomefromoperations |
|
Incomebeforeincome taxes |
|
Netincome |
|
Basic netincomeper share |
Reported results (GAAP) |
|
$ |
1,307,034 |
|
|
$ |
1,087,251 |
|
|
$ |
219,783 |
|
|
$ |
152,179 |
|
|
$ |
106,115 |
|
|
$ |
11.32 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
— |
|
|
— |
|
|
— |
|
|
35,068 |
|
|
26,371 |
|
|
2.81 |
|
Fair value adjustments for
commodity derivative instruments |
|
(924 |
) |
|
(949 |
) |
|
25 |
|
|
25 |
|
|
19 |
|
|
— |
|
Supply chain and asset
optimization |
|
4,441 |
|
|
601 |
|
|
3,840 |
|
|
3,840 |
|
|
2,888 |
|
|
0.31 |
|
Other tax adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,103 |
) |
|
(0.11 |
) |
Total reconciling
items |
|
3,517 |
|
|
(348 |
) |
|
3,865 |
|
|
38,933 |
|
|
28,175 |
|
|
3.01 |
|
Adjusted results
(non-GAAP) |
|
$ |
1,310,551 |
|
|
$ |
1,086,903 |
|
|
$ |
223,648 |
|
|
$ |
191,112 |
|
|
$ |
134,290 |
|
|
$ |
14.33 |
|
|
|
First Nine Months 2019 |
(in
thousands, except per share data) |
|
Grossprofit |
|
SD&Aexpenses |
|
Incomefromoperations |
|
Incomebeforeincome taxes |
|
Netincome |
|
Basic netincomeper share |
Reported results (GAAP) |
|
$ |
1,257,311 |
|
|
$ |
1,116,097 |
|
|
$ |
141,214 |
|
|
$ |
37,625 |
|
|
$ |
21,545 |
|
|
$ |
2.30 |
|
Fair value adjustment of
acquisition related contingent consideration |
|
— |
|
|
— |
|
|
— |
|
|
62,017 |
|
|
46,637 |
|
|
4.98 |
|
Fair value adjustments for
commodity derivative instruments |
|
482 |
|
|
2,575 |
|
|
(2,093 |
) |
|
(2,093 |
) |
|
(1,574 |
) |
|
(0.17 |
) |
Supply chain and asset
optimization |
|
4,875 |
|
|
— |
|
|
4,875 |
|
|
4,875 |
|
|
3,666 |
|
|
0.39 |
|
Capitalization threshold change
for certain assets |
|
— |
|
|
(6,111 |
) |
|
6,111 |
|
|
6,111 |
|
|
4,595 |
|
|
0.49 |
|
System transformation
expenses |
|
— |
|
|
(6,915 |
) |
|
6,915 |
|
|
6,915 |
|
|
5,200 |
|
|
0.56 |
|
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 |
|
(d) |
|
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States
(“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. 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: |
|
INVESTOR CONTACT: |
Kimberly Kuo |
|
Scott Anthony |
Senior Vice President Public
Affairs, Communications& Communities |
|
Executive Vice President &
Chief Financial Officer |
Kimberly.Kuo@cokeconsolidated.com |
|
Scott.Anthony@cokeconsolidated.com |
(704) 557-4584 |
|
(704) 557-4633 |
|
A PDF accompanying this release is available
at: http://ml.globenewswire.com/Resource/Download/dbe68e8b-a8a5-4eeb-870d-ed0301995670
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