ORLANDO, Fla., March 12,
2020 /PRNewswire/ -- (NYSE: TUP) Tupperware Brands
Corporation (the "Company") will file its Annual Report on Form
10-K today for the fiscal year ended December 28, 2019.
- Fiscal year 2019 results in line with preliminary results
released on February 24, 2020.
-
- Full year sales down 13% versus last year and 9% in local
currency
- GAAP diluted E.P.S. $0.25 versus
$3.11 in the prior year
- Operating cash flow net of investing was $60 million
- Company in compliance with Credit Agreement financial covenants
as of December 28, 2019 (see attached
calculation). Prospective leverage ratio relief secured
through Credit Agreement amendment, as previously disclosed on
February 28, 2020.
- Fuller Mexico accounting
investigation closed; concluded issues isolated to local business
and did not materially impact the Company's financial results or
overall internal controls assessment.
- Both Chief Executive Officer and Executive Vice Chairman
appointments announced today (see separate press release).
"I am confident that the amendment to the Credit Agreement will
provide flexibility for the Company to invest in and transform the
business," said Chris O'Leary,
Tupperware Brands' Interim Chief Executive Officer. "As we
look at 2020 and beyond, we are excited about the new leadership
for Tupperware Brands and are optimistic about the meaningful
impact we believe they will have on achieving future growth and in
turn delivering long-term value to the shareholders."
Regarding the COVID-19 pandemic, O'Leary continued, "The
Company's top priority is to protect its employees and their
families, the sales force and consumers, and its operations from
any adverse impacts. The Company is taking precautionary measures
as directed by health authorities and the local government.
While it is not possible at this time to estimate the full impact
COVID-19 could have on the Company's business, our outlook provided
on February 24, 2020, reflects our
best estimate given what we know at this time."
About Tupperware Brands Corporation
Through an independent sales force of 2.9 million, Tupperware
Brands Corporation is a manufacturer and 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 "confident", "optimistic",
"believe", "will", "could", "outlook", "estimate" 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
succession and integration; 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.
Non-GAAP Financial Measures
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
|
FOURTH QUARTER
2019 SALES FORCE STATISTICS*
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
All
Units
|
Reported
Inc/(Dec)
vs. Q4
'18
%
|
Restated+
Inc/(Dec)
vs. Q4
'18
%
|
|
Active
Sales
Force
|
Inc/(Dec)
vs. Q4
'18
%
|
|
Total
Sales
Force
|
Inc/(Dec)
vs. Q4
'18
%
|
Europe
|
(15)
|
(13)
|
a
|
96,459
|
(1)
|
|
771,060
|
5
|
Asia
Pacific
|
(19)
|
(19)
|
|
130,886
|
(22)
|
|
892,419
|
(10)
|
North
America
|
(12)
|
(14)
|
|
174,344
|
(7)
|
|
703,888
|
(5)
|
South
America
|
(27)
|
(19)
|
|
115,058
|
(16)
|
|
543,812
|
(5)
|
Total All
Units
|
(18)
|
(16)
|
|
516,747
|
(12)
|
|
2,911,179
|
(4)
|
|
|
|
|
|
|
|
|
|
* 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 business-to-business (B2B) sales mainly in
Tupperware France, 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
|
|
52 Weeks
Ended
|
|
52 Weeks
Ended
|
|
Dec 28,
2019
|
|
Dec
29,
2018
|
|
Dec
28,
2019
|
|
Dec
29,
2018
|
Net sales
|
$
|
417.2
|
|
$
|
505.9
|
|
$
|
1,797.9
|
|
$
|
2,069.7
|
Cost of products
sold
|
153.5
|
|
175.6
|
|
610.8
|
|
692.2
|
Gross
margin
|
263.7
|
|
330.3
|
|
1,187.1
|
|
1,377.5
|
|
|
|
|
|
|
|
|
Delivery, sales and
administrative expense
|
247.4
|
|
245.5
|
|
999.4
|
|
1,060.5
|
Re-engineering
charges
|
18.8
|
|
3.2
|
|
34.7
|
|
15.9
|
Impairment of
goodwill and intangible assets
|
20.3
|
|
—
|
|
40.0
|
|
—
|
Gain on disposal of
assets
|
1.8
|
|
2.6
|
|
12.9
|
|
18.7
|
Operating
income
|
(21.0)
|
|
84.2
|
|
125.9
|
|
319.8
|
|
|
|
|
|
|
|
|
Interest
income
|
0.6
|
|
0.8
|
|
2.2
|
|
2.8
|
Interest
expense
|
10.1
|
|
12.2
|
|
41.5
|
|
46.5
|
Other
income
|
(6.3)
|
|
0.7
|
|
(16.8)
|
|
(0.1)
|
Income before income
taxes
|
(24.2)
|
|
72.1
|
|
103.4
|
|
276.2
|
Provision for income
taxes
|
47.5
|
|
54.8
|
|
91.0
|
|
120.3
|
Net income
|
$
|
(71.7)
|
|
$
|
17.3
|
|
$
|
12.4
|
|
$
|
155.9
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
Basic income per
share
|
$
|
(1.47)
|
|
$
|
0.36
|
|
$
|
0.26
|
|
$
|
3.12
|
Diluted income per
share
|
$
|
(1.47)
|
|
$
|
0.35
|
|
$
|
0.25
|
|
$
|
3.11
|
TUPPERWARE
BRANDS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
52 Weeks
Ended
|
|
52 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
Dec 28,
2019
|
|
Dec
29,
2018
|
|
%
|
|
%
|
|
Exchange
|
|
Dec 28,
2019
|
|
Dec
29,
2018
|
|
%
|
|
%
|
|
Exchange
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
116.2
|
|
$
|
136.7
|
|
(15)
|
|
(13)
|
|
$
|
(2.5)
|
|
$
|
475.2
|
|
$
|
525.6
|
|
(10)
|
|
(4)
|
|
$
|
(32.9)
|
Asia
Pacific
|
130.1
|
|
159.8
|
|
(19)
|
|
(19)
|
|
0.5
|
|
590.5
|
|
682.0
|
|
(13)
|
|
(11)
|
|
(17.5)
|
North
America
|
105.7
|
|
120.0
|
|
(12)
|
|
(14)
|
|
3.4
|
|
453.5
|
|
515.1
|
|
(12)
|
|
(12)
|
|
(0.9)
|
South
America
|
65.2
|
|
89.4
|
|
(27)
|
|
(19)
|
|
(8.6)
|
|
278.7
|
|
347.0
|
|
(20)
|
|
(9)
|
|
(40.3)
|
|
$
|
417.2
|
|
$
|
505.9
|
|
(18)
|
|
(16)
|
|
$
|
(7.2)
|
|
$
|
1,797.9
|
|
$
|
2,069.7
|
|
(13)
|
|
(9)
|
|
$
|
(91.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
profit (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
8.4
|
|
$
|
17.8
|
|
(52)
|
|
(52)
|
|
$
|
(0.3)
|
|
$
|
38.0
|
|
$
|
46.3
|
|
(18)
|
|
(11)
|
|
$
|
(3.5)
|
Asia
Pacific
|
24.4
|
|
45.5
|
|
(46)
|
|
(46)
|
|
(0.2)
|
|
124.3
|
|
172.5
|
|
(28)
|
|
(26)
|
|
(5.5)
|
North
America
|
(0.9)
|
|
17.0
|
|
—
|
|
—
|
|
0.7
|
|
40.2
|
|
76.3
|
|
(47)
|
|
(47)
|
|
—
|
South
America
|
10.5
|
|
17.6
|
|
(41)
|
|
(34)
|
|
(1.6)
|
|
43.8
|
|
68.3
|
|
(36)
|
|
(29)
|
|
(6.8)
|
|
42.4
|
|
97.9
|
|
(57)
|
|
(56)
|
|
(1.4)
|
|
246.3
|
|
363.4
|
|
(32)
|
|
(29)
|
|
(15.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(19.8)
|
|
(13.8)
|
|
42
|
|
41
|
|
(0.1)
|
|
(41.8)
|
|
(46.3)
|
|
(10)
|
|
(12)
|
|
(1.4)
|
Gain on disposal of
assets
|
1.8
|
|
2.6
|
|
(31)
|
|
(31)
|
|
—
|
|
12.9
|
|
18.7
|
|
(31)
|
|
(31)
|
|
—
|
Re-engineering
charges
|
(18.8)
|
|
(3.2)
|
|
+
|
|
+
|
|
—
|
|
(34.7)
|
|
(15.9)
|
|
+
|
|
+
|
|
—
|
Impairment of
goodwill and intangible assets
|
(20.3)
|
|
—
|
|
+
|
|
+
|
|
—
|
|
(40.0)
|
|
—
|
|
+
|
|
+
|
|
—
|
Interest expense,
net
|
(9.5)
|
|
(11.4)
|
|
(18)
|
|
(18)
|
|
—
|
|
(39.3)
|
|
(43.7)
|
|
(10)
|
|
(10)
|
|
—
|
Income before
taxes
|
(24.2)
|
|
72.1
|
|
—
|
|
—
|
|
(1.5)
|
|
103.4
|
|
276.2
|
|
(63)
|
|
(60)
|
|
(17.2)
|
Provision for income
taxes
|
47.5
|
|
54.8
|
|
(13)
|
|
(13)
|
|
(0.2)
|
|
91.0
|
|
120.3
|
|
(24)
|
|
(22)
|
|
(4.2)
|
Net income
(loss)
|
$
|
(71.7)
|
|
$
|
17.3
|
|
—
|
|
—
|
|
$
|
(1.3)
|
|
$
|
12.4
|
|
$
|
155.9
|
|
(92)
|
|
(91)
|
|
$
|
(13.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
(diluted)
|
$
|
(1.47)
|
|
$
|
0.35
|
|
—
|
|
—
|
|
$
|
(0.02)
|
|
$
|
0.25
|
|
$
|
3.11
|
|
(92)
|
|
(91)
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares
|
48.9
|
|
48.8
|
|
|
|
|
|
|
|
49.0
|
|
50.2
|
|
|
|
|
|
|
|
* 2019 actual
compared with 2018 translated at 2019 exchange rates
|
|
+ Change greater than
±100%
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
52 Weeks
Ended
|
|
52 Weeks
Ended
|
|
December
28,
2019
|
|
December 29,
2018
|
Operating
Activities:
|
|
|
|
Net cash provided by
operating activities
|
$
|
87.4
|
|
$
|
132.0
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(61.0)
|
|
(75.4)
|
Proceeds from
disposal of property, plant & equipment
|
34.0
|
|
40.7
|
Net cash used in
investing activities
|
(27.0)
|
|
(34.7)
|
|
|
|
|
Financing
Activities:
|
|
|
|
Dividend payments to
shareholders
|
(74.3)
|
|
(137.8)
|
Repurchase of common
stock
|
(0.9)
|
|
(101.7)
|
Repayment of
long-term debt and finance lease obligations
|
(1.6)
|
|
(1.9)
|
Net change in
short-term debt
|
(6.2)
|
|
162.1
|
Debt issuance
costs
|
(2.3)
|
|
—
|
Proceeds from
exercise of stock options
|
—
|
|
0.3
|
Net cash used by
financing activities
|
(85.3)
|
|
(79.0)
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(0.9)
|
|
(13.6)
|
Net change in cash,
cash equivalents and restricted cash
|
(25.8)
|
|
4.7
|
Cash, cash
equivalents and restricted cash at beginning of year
|
151.9
|
|
147.2
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
126.1
|
|
$
|
151.9
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
Dec
28,
2019
|
|
Dec 29,
2018
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
123.2
|
|
$
|
149.0
|
Other current
assets
|
415.3
|
|
471.6
|
Total current
assets
|
538.5
|
|
620.6
|
|
|
|
|
Property, plant and
equipment, net
|
267.5
|
|
276.0
|
Other
assets
|
456.4
|
|
412.2
|
Total
assets
|
$
|
1,262.4
|
|
$
|
1,308.8
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Short-term borrowings
and current portion of long-term debt
|
$
|
273.2
|
|
$
|
285.5
|
Accounts payable and
other current liabilities
|
415.7
|
|
473.6
|
Total current
liabilities
|
688.9
|
|
759.1
|
|
|
|
|
Long-term
debt
|
602.2
|
|
603.4
|
Other
liabilities
|
248.3
|
|
181.5
|
Total shareholders'
equity
|
(277.0)
|
|
(235.2)
|
Total liabilities and
shareholders' equity
|
$
|
1,262.4
|
|
$
|
1,308.8
|
TUPPERWARE BRANDS
CORPORATION
|
ADJUSTED EBITDA
AND DEBT/ADJUSTED EBITDA*
|
(UNAUDITED)
|
|
|
|
As of and for
the
four quarters ended
|
|
December
28, 2019
|
Adjusted
EBITDA:
|
|
Net income
(loss)
|
$
|
12.4
|
Add:
|
|
Depreciation and
amortization
|
55.2
|
Gross interest
expense
|
41.5
|
Provision for income
taxes
|
91.0
|
Equity
compensation
|
10.4
|
Pre-tax
re-engineering and impairment charges
|
40.0
|
Other non-cash
extraordinary, unusual or non-recurring charges
|
44.9
|
Deduct:
|
|
Cash paid for
re-engineering
|
(40.1)
|
Gains on land sales,
insurance recoveries, etc.
|
(12.9)
|
Total Adjusted
EBITDA
|
$
|
242.4
|
|
|
Consolidated total
debt
|
$
|
875.4
|
Divided by adjusted
EBITDA
|
242.4
|
Debt to Adjusted
EBITDA Ratio
|
3.61
|
|
* Amounts and
calculations are based on the definitions and provisions of the
Company's $650 million Credit Agreement dated March 29, 2019, as
amended ("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