Sales and Profitability Sequentially Improve
ORLANDO,
Fla., Aug. 3, 2022 /PRNewswire/ -- Tupperware
Brands Corporation (NYSE: TUP), a leading global consumer products
company, today reported operating results for the second quarter
ended June 25, 2022.
Second Quarter 2022 Financial Summary
- Net sales were $340.4 million, a
decrease of 18% year over year (or 14% on a constant currency
basis), compared to $416.6 million in
the prior year period
- Gross profit was $220.7 million,
or 64.9% of net sales, compared to $285.9
million in the prior year period
- Income from continuing operations was $4.5 million, compared to $31.9 million in the prior year period
- Diluted earnings per share from continuing operations was
$0.09, compared to $0.60 in the prior year period
- Adjusted diluted earnings per share (non-GAAP) from continuing
operations was $0.41, compared to
$0.90 in the period year period
- Adjusted EBITDA (non-GAAP, per debt covenant)1 from
continuing operations was $38.1
million, compared to $92.1
million in the prior year period
- Consolidated Net Leverage Ratio (non-GAAP) of 3.13, following
paydown of over $100 million of
debt
"While we are not pleased with our current performance and level
of profitability, I am encouraged by sequential improvement in
profit in the second quarter, reflecting the many bold actions we
continue to take, and I see promising signs that our strategies are
working," said Miguel Fernandez,
President and Chief Executive Officer of Tupperware Brands.
"Lockdowns in China and shifts in
consumer behavior in Europe
significantly impacted our year over year performance in the second
quarter, as did inflationary pressures and unfavorable foreign
exchange rate fluctuations. During the quarter, we continued to
address the operating factors within our control, specifically
technology, operations, service levels, and ongoing implementation
of global direct selling practices. While we are beginning to see
encouraging trends in certain markets as a result of these efforts,
more work remains to optimize our operations and supply chain. We
nevertheless remain on track to further penetrate retail channels
later this year, which we believe will be a milestone in our
omnichannel evolution, and provide a needed catalyst for long-term
growth. We acknowledge the challenging journey ahead of us to
transform this business, and are confident we are executing against
a strategy that will ultimately enable our business to become as
big as our iconic Tupperware brand."
"Our second quarter performance reflects our improving ability
to respond to high inflation and supply chain challenges," said
Mariela Matute, Chief Financial
Officer of Tupperware Brands. "Pricing actions and improving
service levels in the second half of the quarter helped to mitigate
margin erosion, with full favorable impact expected to be realized
over the balance of the year. While our performance is trending in
the right direction, we also acknowledge the potential for
near-term volatility as we continue to address internal challenges
and navigate external headwinds, which we expect to continue for
the remainder of the year. We continue to evolve our planning
processes and resources, with the goal to generate efficiencies and
right-size our cost structure. Following our $75 million accelerated share repurchase last
quarter, our capital allocation priorities have shifted toward the
paydown of debt, which we successfully reduced by over $100 million in the second quarter. We also sold
our House of Fuller and Nutrimetics beauty businesses, in May and
July, respectively, consistent with our plan to focus on our core
Tupperware business. We will continue to look for ways to
strengthen our financial foundation in order to position our
company for long-term, profitable growth."
1 "Adjusted EBITDA (non-GAAP, per debt
covenant)" is calculated the same way as the non-GAAP measure "Debt
covenant EBITDA" that the Company disclosed in its prior earnings
releases.
Note: All figures reflect results from continuing operations
only. A reconciliation of non-GAAP measures to comparable GAAP
measures can be found in the tables included in this
release.
Second Quarter 2022 Operating Results
Total net sales were $340.4
million, a decrease of 18% (or 14% on a constant currency
basis) compared to the prior year period. The decrease was driven
primarily by lower overall sales force activity, lockdowns in
China, and lower consumer
sentiment in Europe, partially
offset by strength in South
America, driven by recruitment and retention efforts. For
detailed performance by region, please refer to the segment tables
in the appended exhibit.
Gross profit was $220.7 million,
as compared to $285.9 million for the
prior year period. Gross margin was 64.9%, as compared to
68.4% for the prior year period. The decrease was driven by lower
volumes, higher resin and logistics costs, and country and product
mix, partially offset by pricing actions.
Income from continuing operations was $4.5 million, as compared to $31.9 million for the prior year period. Diluted
earnings per share from continuing operations was $0.09, as compared to $0.60 for the prior year period. Adjusted diluted
earnings per share from continuing operations (non-GAAP) was
$0.41, as compared to $0.90 for the prior year period. The decrease was
driven by lower volumes, and higher resin and logistics costs,
partially offset by lower promotional expense and lower interest
expense.
Non-Core Assets
As previously announced, due to the sale or pending sale of
certain key brands of the Company's beauty business, the Company
has determined that these dispositions represent a strategic shift
that will have a major effect on its results of operations. As
such, the results of these beauty businesses are presented as
discontinued operations, including all comparative prior period
information, in the Company's financial statements. Certain costs
previously allocated to the beauty business for segment reporting
purposes do not qualify for classification within discontinued
operations and have been reallocated to continuing operations.
During the second quarter of 2022, the Company completed the sale
of its House of Fuller Mexico business and entered into a
definitive agreement to sell its Nutrimetics business, which sale
was completed on July 1, 2022. The
Company is still exploring options for its Nuvo business.
Credit Facility Amendment
Subsequent to the second quarter, the Company entered into an
amendment to its existing secured credit facility, dated
November 23, 2021. The amendment has
an effective date of August 1, 2022,
and amends certain provisions under the credit agreement to, among
other things, (i) replace LIBOR with SOFR as the reference interest
rate for the applicable loans under the facility, with a 0.00% SOFR
floor and 10 basis point credit spread adjustments across all
tenors; (ii) allow for a temporary higher maximum consolidated net
leverage ratio of 4.5x in the third quarter of 2022 and 4.25x in
the fourth quarter of 2022 and first quarter of 2023
(cumulatively, the "Covenant Adjustment Period"), with a
reversion to the existing maximum consolidated net leverage ratio
of 3.75x in the second quarter of 2023 and thereafter; (iii)
introduce two additional pricing levels that are 25 basis points,
for consolidated net leverage ratios of 3.0x to 3.5x, and 50 basis
points, for consolidated net leverage ratios of 3.5x and higher,
above the original pricing levels, with a reversion to the
original pricing levels following achievement of a consolidated net
leverage ratio of 2.75x or less for two consecutive quarters
following the Covenant Adjustment Period and (iv) restrict the
Company's ability to incur incremental facilities under the Credit
Agreement, incur certain debt, incur certain liens, make certain
investments and restricted payments, consummate certain internal
reorganizations and rely on certain reinvestment exceptions to the
mandatory prepayment provisions during the Covenant Adjustment
Period. Additional information can be found in the Form 8-K filed
with this press release.
Earnings Conference Call
The Company will host its second quarter 2022 earnings
conference call today, August 3,
2022, at 8:30 a.m. ET. A link
to the live webcast can be found under the Events and Presentations
section of the Company's Investor Relations page on the Company's
website at https://ir.tupperwarebrands.com. A webcast replay will
be made available in the same section of the Company's Investor
Relations website later today.
About Tupperware Brands Corporation
Tupperware Brands Corporation (NYSE: TUP) is a leading global
consumer products company that designs innovative, functional and
environmentally responsible products that people love and trust.
Founded in 1946, Tupperware's signature container created the
modern food storage category that revolutionized the way the world
stores, serves and prepares food. Today, this iconic brand has more
than 8,500 functional design and utility patents for
solution-oriented kitchen and home products. With a purpose to
nurture a better future, Tupperware products are an alternative to
single-use items. The Company distributes its products into nearly
70 countries primarily through independent representatives around
the world. For more information, visit Tupperwarebrands.com or
follow Tupperware on Facebook, Instagram, LinkedIn and Twitter.
Forward-Looking Statements
Statements contained in this release that are not historical
fact and use predictive words such as "estimates", "outlook",
"guidance", "expect", "believe", "intend", "designed", "target",
"plans", "may", "will", "we are confident" 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 continuing effects of the novel coronavirus (COVID-19)
pandemic; the successful execution of the Company's Turnaround
Plan; the effects of inflation on the Company's business; the sale
of the Company's Nuvo business; the impact of the Russia-Ukraine conflict on the Company's business;
the Company's ability to ship product to customers on a timely
basis, including because of delays caused by its supply chain; the
Company's ability to sustain the same level of growth in net sales
and net income that we recorded in the prior quarters; the success
of the Company's efforts to improve its profitability and liquidity
position and any capital structure actions that it may take the
Company's ability to comply with its financial covenants under its
credit agreement; cyberattacks and ransomware demands that could
cause the Company to not be able to operate its systems and/or
access or control its data, including private data; risks related
to the ongoing SEC inquiry; the success and timing of growth and
turnaround initiatives; leadership development and succession
changes; impairment and other charges related to purchase
accounting goodwill and restructuring actions; the risk of
foreign-currency fluctuations and currency translation impacts on
the Company's business associated with these fluctuations; the
Company's ability to engage in hedging transactions (including,
without limitation, forwards and swaps) with financial institutions
to mitigate risks relating to foreign-currency fluctuations and/or
interest rate fluctuations and the possibility that such hedging
transactions, even if entered into, are unsuccessful; the risk of
changes in cash flow resulting from changes in foreign exchange
rates and hedge settlements; uncertainties related to the
interpretation of, and regulations under, changes in the U.S. tax
law and tax laws and regulations in other countries; 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; risks related to litigation against the Company, including
pending securities class action lawsuits filed against the Company
and certain of its current and former officers and directors; 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
the Company's products; continued competitive pressures for
products or sales force in the Company's markets; 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 available at
https://ir.tupperwarebrands.com/financial-information/foreign-exchange-impact.
Other than updating for changes in foreign currency exchange rates,
the Company does not intend to update forward-looking
information.
Non-GAAP Financial Measures
The Company utilizes non-GAAP financial measures in this
release, specifically, Adjusted Diluted Earnings Per Share from
continuing operations ("Adjusted Diluted Earnings Per Share"),
Adjusted EBITDA (non-GAAP, per debt covenant), and Consolidated Net
Leverage Ratio, each of which are provided to assist readers'
understanding of the Company's results of operations. The Company
believes Adjusted Diluted Earnings Per Share is useful as it is
used by management in their capital allocation decision process and
in discussions with investors, analysts, and other interested
parties. This measure is based on a continuing operations basis.
Adjusted EBITDA (non-GAAP, per debt covenant) and Consolidated Net
Leverage Ratio are useful as they reflect the Company's liquidity
as required under its credit facility. These measures are based on
a consolidated basis with the results of both continuing operations
and discontinued operations included. These amounts exclude certain
items that at times materially impact the comparability of the
Company's results of operations. The adjusted information is
intended to be indicative of the Company's primary operations, and
to assist readers in evaluating performance and analyzing trends
across periods by providing what the Company believes is a useful
measure for predictive purposes. These results should be considered
in addition to, not as a substitute for, results reported in
accordance with GAAP.
The non-GAAP financial measures include comparisons related to
profit that exclude:
- gains from the sale of property, plant and equipment and other
real estate related operations
- insurance settlement gains or significant charges related to
casualty losses caused by significant weather events, fires or
similar circumstances
- exit or disposal cost obligations related to rationalizing
supply chain operations and other re-engineering activities
performed to wind-down or significantly restructure businesses,
including cumulative translation adjustments recognized in income
upon liquidation of operations in a country, asset sales or fixed
asset impairments, inventory obsolescence and other operating
losses incurred in conjunction with such activities
- certain asset retirement obligations
- pension settlements
- significant discrete impacts of new tax laws upon adoption,
including the impact on cumulative deferred taxes from items
previously recorded as cumulative translation adjustments
- amortization of definite-lived intangible assets
- non-cash impairment charges related to the carrying value of
acquired intangible assets and goodwill
- infrequent costs incurred in connection with a change in
capital structure
- the impact from hyper-inflationary economies on net monetary
assets and other balance sheet positions that impact near term
income
- non-recurring costs associated with the turnaround plan
While these types of events can and do recur periodically, they
are not part of the Company's primary business operations and are
excluded from indicated financial information due to their
distinction from ongoing business operations, inherent volatility
and impact on the comparability of earnings across periods, as
amounts recognized in any given period are not indicative of
amounts that may be recognized in any particular future period.
Additionally, the Company engages in business to business
transactions, in which it sells products to a partner company.
Since the level of these sales is volatile from quarter-to-quarter
and year-to-year, and is largely independent of the activities of
its sales force, the Company at times, in addition to disclosing
reported sales, discloses "core" sales amounts and comparisons,
which excludes amounts sold under business to business
transactions. This illustrates sales results and trends directly
associated with activities of its independent sales force. All
financial information disclosed and presented includes business to
business transactions unless specifically stated as "core" sales or
otherwise indicated.
Also, as the impact of changes in exchange rates is an important
factor in understanding period-to-period comparisons. The Company
believes the presentation of results on a constant 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 constant
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 constant 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 constant 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
constant 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 Diluted Earnings Per Share, and covenants under our credit
agreement with Wells Fargo Bank, N.A.: Net Consolidated Leverage
Ratio and Adjusted EBITDA (non-GAAP, per debt covenant). The
Company uses Adjusted Diluted Earnings Per Share as this measure is
used in its capital allocation decision process and in discussions
with investors, analysts and other interested parties, while
management believes Net Consolidated Leverage Ratio and Adjusted
EBITDA (non-GAAP, per debt covenant) are useful to investors as
they are used by management to assess the Company's liquidity. The
Company's calculation of its Net Consolidated Leverage Ratio and
Adjusted EBITDA (non-GAAP, per debt covenant) is in accordance with
its credit agreement, and such calculations, as well as the
Company's calculation of Adjusted Diluted Earnings Per Share, 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.
Investors: Alexis Callahan,
alexiscallahan@tupperware.com, (321) 588-5129
Media: Cameron Klaus,
cameronklaus@tupperware.com, (407) 371-9784
Summary Financial
Statements
|
|
TUPPERWARE BRANDS
CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
13 weeks
ended
|
|
26 weeks
ended
|
(In millions, except
per share amounts)
|
June 25,
2022
|
|
June 26,
2021
|
|
June 25,
2022
|
|
June 26,
2021
|
Net sales
|
$
340.4
|
|
$
416.6
|
|
$
688.5
|
|
$
830.5
|
Cost of products
sold
|
119.7
|
|
130.7
|
|
245.8
|
|
251.0
|
Gross
profit
|
220.7
|
|
285.9
|
|
442.7
|
|
579.5
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
186.9
|
|
208.8
|
|
390.3
|
|
430.0
|
Re-engineering
charges
|
7.0
|
|
4.7
|
|
8.5
|
|
7.8
|
Loss (Gain) on disposal
of assets
|
2.0
|
|
0.4
|
|
1.6
|
|
(7.3)
|
Operating
income
|
24.8
|
|
72.0
|
|
42.3
|
|
149.0
|
|
|
|
|
|
|
|
|
Loss on debt
extinguishment
|
—
|
|
6.0
|
|
—
|
|
8.1
|
Interest
expense
|
6.0
|
|
9.7
|
|
10.6
|
|
21.5
|
Interest
income
|
(1.2)
|
|
(0.3)
|
|
(1.9)
|
|
(0.6)
|
Other expense (income),
net
|
0.7
|
|
0.9
|
|
5.0
|
|
(0.4)
|
Income from continuing
operations before income taxes
|
19.3
|
|
55.7
|
|
28.6
|
|
120.4
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
14.8
|
|
23.8
|
|
21.6
|
|
44.5
|
Income from continuing
operations
|
4.5
|
|
31.9
|
|
7.0
|
|
75.9
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
(Loss) income from
operations of discontinued operations before income
taxes
|
(5.9)
|
|
3.4
|
|
(5.5)
|
|
3.8
|
Gain (loss) on held for
sale assets and dispositions
|
1.4
|
|
—
|
|
(1.2)
|
|
1.0
|
Benefit for income
taxes
|
(1.2)
|
|
(0.3)
|
|
(0.8)
|
|
(0.2)
|
(Loss) gain on
discontinued operations
|
(3.3)
|
|
3.7
|
|
(5.9)
|
|
5.0
|
|
|
|
|
|
|
|
|
Net income
|
$
1.2
|
|
$
35.6
|
|
$
1.1
|
|
$
80.9
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic earnings from
continuing operations - per share
|
$
0.10
|
|
$
0.64
|
|
$
0.15
|
|
$
1.53
|
Basic (loss) earnings
from discontinued operations per share
|
(0.07)
|
|
0.07
|
|
(0.13)
|
|
0.10
|
Basic earnings per
share - Total
|
$
0.03
|
|
$
0.71
|
|
$
0.02
|
|
$
1.63
|
|
|
|
|
|
|
|
|
Diluted earnings from
continuing operations - per share
|
$
0.09
|
|
$
0.60
|
|
$
0.14
|
|
$
1.43
|
Diluted (loss) earnings
from discontinued operations - per
|
(0.07)
|
|
0.07
|
|
(0.12)
|
|
0.10
|
Diluted earnings per
share - Total
|
$
0.02
|
|
$
0.67
|
|
$
0.02
|
|
$
1.53
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
|
Basic weighted-average
shares
|
45.5
|
|
49.8
|
|
46.7
|
|
49.6
|
Diluted
weighted-average shares
|
48.3
|
|
53.1
|
|
49.8
|
|
53.0
|
TUPPERWARE BRANDS
CORPORATION
|
CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
As of
|
(In millions, except
share amounts)
|
June 25,
2022
|
|
December 25,
2021
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
118.8
|
|
$
267.2
|
Other current
assets
|
396.2
|
|
381.0
|
Total current
assets
|
515.0
|
|
648.2
|
|
|
|
|
Property, plant and
equipment, net
|
153.2
|
|
160.9
|
Other assets
|
437.7
|
|
446.3
|
Total
assets
|
$ 1,105.9
|
|
$ 1,255.4
|
|
|
|
|
Liabilities And
Shareholders' Equity
|
|
|
|
Current debt and
finance lease obligations
|
$
12.4
|
|
$
8.9
|
Other current
liabilities
|
375.3
|
|
547.0
|
Total current
liabilities
|
387.7
|
|
555.9
|
|
|
|
|
Long-term debt and
finance lease obligations
|
688.2
|
|
700.5
|
Other
liabilities
|
189.1
|
|
206.1
|
Total
liabilities
|
1,265.0
|
|
1,462.5
|
|
|
|
|
Total shareholders'
equity (deficit)
|
(159.1)
|
|
(207.1)
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 1,105.9
|
|
$ 1,255.4
|
TUPPERWARE BRANDS
CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
26 weeks
ended
|
(In
millions)
|
June 25,
2022
|
|
June 26,
2021
|
Operating
Activities
|
|
|
|
Net cash (used in)
provided by operating activities
|
$
(58.9)
|
|
$
3.7
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(15.6)
|
|
(17.3)
|
Net proceeds from
divestiture
|
—
|
|
2.4
|
Proceeds from disposal
of assets
|
1.2
|
|
10.7
|
Net cash used in
investing activities
|
(14.4)
|
|
(4.2)
|
Financing
Activities
|
|
|
|
Term loan
repayment
|
(2.4)
|
|
(101.2)
|
Borrowings on revolver
facility
|
146.0
|
|
—
|
Repayment of revolver
facility
|
(139.2)
|
|
—
|
Net increase in
short-term debt
|
—
|
|
49.6
|
Debt issuance costs
payment
|
—
|
|
(1.0)
|
Finance lease
repayments
|
(0.7)
|
|
(0.7)
|
Common stock
repurchase
|
(75.0)
|
|
—
|
Cash payments of
employee withholding tax for stock awards
|
(1.9)
|
|
(2.9)
|
Proceeds from exercise
of stock options
|
—
|
|
0.5
|
Net cash used in
financing activities
|
(73.2)
|
|
(55.7)
|
Discontinued
Operations
|
|
|
|
Cash used in operating
activities
|
(3.4)
|
|
(2.3)
|
Cash provided by
investing activities
|
6.7
|
|
28.1
|
Cash provided by
discontinued operations
|
3.3
|
|
25.8
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(3.9)
|
|
(5.4)
|
Net change in cash,
cash equivalents and restricted cash
|
(147.1)
|
|
(35.8)
|
Cash, cash equivalents
and restricted cash at beginning of year
|
273.8
|
|
150.5
|
Cash, cash equivalents
and restricted cash at end of period
|
$
126.7
|
|
$
114.7
|
Segment Information
The Company manufactures and distributes a broad portfolio of
products, primarily through independent direct sales force members.
Certain operating segments have been aggregated based upon
consistency of economic substance, geography, products, production
process, class of customers and distribution method.
|
|
|
|
|
|
|
|
|
|
|
Change excluding the
foreign
exchange impact
|
|
Percent of total
|
(In
millions)
|
13 weeks
ended
|
|
Change
|
|
Foreign
exchange
impact
|
|
|
13 weeks
ended
|
Jun 25,
2022
|
|
Jun 26,
2021
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
Jun 25,
2022
|
|
Jun 26,
2021
|
Asia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
90.8
|
|
$ 114.6
|
|
$
(23.8)
|
|
(21) %
|
|
$
(6.1)
|
|
$
(17.7)
|
|
(16) %
|
|
27 %
|
|
28 %
|
Segment
profit
|
$
11.9
|
|
$
26.4
|
|
$
(14.5)
|
|
(55) %
|
|
$
(0.3)
|
|
$
(14.2)
|
|
(55) %
|
|
24 %
|
|
30 %
|
Segment profit as
percent of net sales
|
13.1 %
|
|
23.0 %
|
|
N/A
|
|
(9.9) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
70.9
|
|
$ 113.7
|
|
$
(42.8)
|
|
(38) %
|
|
$
(12.7)
|
|
$
(30.2)
|
|
(30) %
|
|
21 %
|
|
27 %
|
Segment
profit
|
$
4.9
|
|
$
19.6
|
|
$
(14.7)
|
|
(75) %
|
|
$
(1.5)
|
|
$
(13.2)
|
|
(73) %
|
|
10 %
|
|
22 %
|
Segment profit as
percent of net sales
|
6.9 %
|
|
17.2 %
|
|
N/A
|
|
(10.3) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 104.3
|
|
$ 122.2
|
|
$
(17.9)
|
|
(15) %
|
|
$
(0.9)
|
|
$
(17.0)
|
|
(14) %
|
|
31 %
|
|
29 %
|
Segment
profit
|
$
16.7
|
|
$
19.9
|
|
$
(3.2)
|
|
(16) %
|
|
$
—
|
|
$
(3.2)
|
|
(16) %
|
|
33 %
|
|
23 %
|
Segment profit as
percent of net sales
|
16.0 %
|
|
16.3 %
|
|
N/A
|
|
(0.3) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
74.4
|
|
$
66.1
|
|
$
8.3
|
|
13 %
|
|
$
0.4
|
|
$
7.9
|
|
12 %
|
|
22 %
|
|
16 %
|
Segment
profit
|
$
16.9
|
|
$
22.2
|
|
$
(5.3)
|
|
(24) %
|
|
$
0.7
|
|
$
(6.0)
|
|
(26) %
|
|
34 %
|
|
25 %
|
Segment profit as
percent of net sales
|
22.7 %
|
|
33.6 %
|
|
N/A
|
|
(10.9) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
sales
|
$ 340.4
|
|
$ 416.6
|
|
$
(76.2)
|
|
(18) %
|
|
$
(19.3)
|
|
$
(57.0)
|
|
(14) %
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________
|
N/A - not
applicable
|
+ - change greater than
±100%
|
|
|
|
|
|
|
|
|
|
|
|
Change excluding the
foreign
exchange impact
|
|
Percent of total
|
(In
millions)
|
26 weeks
ended
|
|
Change
|
|
|
|
|
26 weeks
ended
|
Jun 25,
2022
|
|
Jun 26,
2021
|
|
Amount
|
|
Percent
|
Foreign
exchange
impact
|
|
Amount
|
|
Percent
|
Jun 25,
2022
|
|
Jun 26,
2021
|
Asia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
188.5
|
|
$
230.9
|
|
$
(42.4)
|
|
(18) %
|
|
$
(8.4)
|
|
$
(34.0)
|
|
(15) %
|
|
27 %
|
|
28 %
|
Segment
profit
|
$
24.2
|
|
$
55.2
|
|
$
(31.0)
|
|
(56) %
|
|
$0.4
|
|
$
(31.4)
|
|
(57) %
|
|
28 %
|
|
31 %
|
Segment profit as
percent of net sales
|
12.8 %
|
|
23.9 %
|
|
N/A
|
|
(11.1) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
161.8
|
|
$
235.5
|
|
$
(73.8)
|
|
(31) %
|
|
$
(22.8)
|
|
$
(50.9)
|
|
(24) %
|
|
24 %
|
|
28 %
|
Segment
profit
|
$
12.3
|
|
$
52.9
|
|
$
(40.6)
|
|
(77) %
|
|
$
(3.9)
|
|
$
(36.6)
|
|
(75) %
|
|
14 %
|
|
29 %
|
Segment profit as
percent of net sales
|
7.6 %
|
|
22.5 %
|
|
N/A
|
|
(14.9) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
206.1
|
|
$
239.9
|
|
$
(33.8)
|
|
(14) %
|
|
$
(0.9)
|
|
$
(32.9)
|
|
(14) %
|
|
30 %
|
|
29 %
|
Segment
profit
|
$
26.6
|
|
$
38.8
|
|
$
(12.2)
|
|
(31) %
|
|
$0.0
|
|
$
(12.2)
|
|
(32) %
|
|
30 %
|
|
21 %
|
Segment profit as
percent of net sales
|
12.9 %
|
|
16.2 %
|
|
N/A
|
|
(3.3) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
132.1
|
|
$
124.2
|
|
$
7.9
|
|
6 %
|
|
$
1.0
|
|
$
6.8
|
|
5 %
|
|
19 %
|
|
15 %
|
Segment
profit
|
$
24.6
|
|
$
33.9
|
|
$
(9.3)
|
|
(27) %
|
|
$
1.1
|
|
$
(10.4)
|
|
(30) %
|
|
28 %
|
|
19 %
|
Segment profit as
percent of net sales
|
18.6 %
|
|
27.3 %
|
|
N/A
|
|
(8.7) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
sales
|
$
688.5
|
|
$
830.5
|
|
$
(142.1)
|
|
(17) %
|
|
$
(31.1)
|
|
$
(111.0)
|
|
(14) %
|
|
N/A
|
|
N/A
|
____________________
|
N/A - not
applicable
|
+ - change greater than
±100%
|
|
Sales Force Statistics
Sales force statistics shown below are 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. Constant
currency changes, or changes excluding foreign exchange impact, are
measured by comparing current year results with those of the prior
year, translated at the current year's foreign exchange rates.
|
Net
Sales
|
|
Active Sales
Force
|
|
Second Quarter
2022
versus
Second Quarter
2021
|
|
13 weeks
ended
|
|
|
June 25,
2022
|
|
June 26,
2021
|
|
|
Segments
|
Change
%
|
|
Change
excluding foreign
exchange impact
%
|
|
Count
|
|
Count
|
|
Change
%
|
Asia Pacific
|
(21) %
|
|
(16) %
|
|
46,101
|
|
57,366
|
|
(20) %
|
Europe
|
(38) %
|
|
(30) %
|
|
70,986
|
|
89,703
|
|
(21) %
|
North
America
|
(15) %
|
|
(14) %
|
|
65,974
|
|
67,962
|
|
(3) %
|
South
America
|
13 %
|
|
12 %
|
|
149,082
|
|
137,687
|
|
8 %
|
Total
|
(18) %
|
|
(14) %
|
|
332,143
|
|
352,718
|
|
(6) %
|
GAAP to Non-GAAP
Financial Measures Reconciliation
|
|
|
13 weeks
ended
|
|
26 weeks
ended
|
(In millions, except
per share amounts)
|
June 25,
2022
|
|
June 26,
2021
|
|
June 25,
2022
|
|
June 26,
2021
|
Income from continuing
operations
|
$
4.5
|
|
$
31.9
|
|
$
7.0
|
|
$
75.9
|
|
|
|
|
|
|
|
|
Re-engineering
charges
|
7.0
|
|
4.7
|
|
8.5
|
|
7.8
|
Loss on debt
extinguishment
|
—
|
|
6.0
|
|
—
|
|
8.1
|
(Gain) on disposal of
assets
|
2.0
|
|
0.4
|
|
1.6
|
|
(7.3)
|
Exit and Other
Costs
|
1.4
|
|
1.7
|
|
2.6
|
|
2.7
|
Consulting
|
1.8
|
|
1.5
|
|
1.8
|
|
1.1
|
Foreign currency
hyperinflation
|
4.6
|
|
1.3
|
|
6.4
|
|
1.7
|
Adjustments before
income taxes
|
16.8
|
|
15.6
|
|
20.9
|
|
14.1
|
Provision for income
taxes
|
1.7
|
|
—
|
|
2.0
|
|
—
|
Net
adjustments
|
$
15.1
|
|
$
15.6
|
|
$
18.9
|
|
$
14.1
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
19.6
|
|
$
47.5
|
|
25.9
|
|
90.0
|
|
|
|
|
|
|
|
|
Basic weighted-average
shares
|
45.5
|
|
49.8
|
|
46.7
|
|
49.6
|
Diluted
weighted-average shares
|
48.3
|
|
53.1
|
|
49.8
|
|
53.0
|
|
|
|
|
|
|
|
|
Adjusted basic earnings
per share from continuing operations
|
$
0.43
|
|
$
0.95
|
|
$
0.55
|
|
$
1.81
|
Adjusted diluted
earnings per share from continuing operations
|
$
0.41
|
|
$
0.90
|
|
$
0.52
|
|
$
1.70
|
Net Income to
Adjusted EBITDA (non-GAAP, per debt covenant) Reconciliation and
Consolidated Net Leverage Ratio (1)
|
|
|
52 weeks
ended
|
|
13 weeks
ended
|
|
13 weeks
ended
|
(In
millions)
|
June 25,
2022
|
|
June 25,
2022
|
|
|
June 26,
2021
|
Income from continuing
operations
|
$
86.8
|
|
$
4.5
|
|
|
$
31.8
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
Interest
expense
|
24.3
|
|
6.0
|
|
|
9.7
|
Provision for income
taxes
|
19.6
|
|
14.8
|
|
|
24.0
|
Depreciation and
amortization
|
39.8
|
|
9.0
|
|
|
9.8
|
Adjusted EBITDA -
from continuing operations
|
$
170.5
|
|
$
34.3
|
|
|
75.3
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash impairment
charges or asset write-offs
|
8.1
|
|
—
|
|
|
—
|
Other adjustments per
Credit Agreement
|
20.0
|
|
7.5
|
|
|
8.1
|
Other non-cash
extraordinary, unusual or non-recurring losses
|
36.0
|
|
3.7
|
|
|
12.0
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
Cash paid for
re-engineering charges
|
(13.9)
|
|
(4.4)
|
|
|
(8.1)
|
Extraordinary, unusual
or non-recurring (gains) losses
|
(23.5)
|
|
2.0
|
|
|
0.5
|
|
|
|
|
|
|
|
Adjusted EBITDA -
discontinued operations
|
$
(140.3)
|
|
$
(3.6)
|
|
|
$
4.3
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
Gain (loss) on disposal
of assets
|
(135.7)
|
|
1.4
|
|
|
$
—
|
Total Adjusted
EBITDA (non-GAAP, per debt covenant)
|
$
192.6
|
|
$
38.1
|
|
|
$
92.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
debt
|
$
702.2
|
|
|
|
|
|
Unrestricted cash and
cash equivalents
|
(100.0)
|
|
|
|
|
|
Consolidated total debt
less unrestricted cash and cash equivalents
|
$
602.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Leverage Ratio
|
3.13
|
|
|
|
|
|
|
(1)
|
Amounts and
calculations are based on the definitions and provisions of the
Company's Credit Agreement dated November 23, 2021 and, where
applicable, are based on the trailing four quarter amounts.
"Consolidated Net Leverage Ratio" is calculated as defined in the
Credit Agreement.
|
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SOURCE Tupperware Brands Corporation