Attached files
| file | filename |
|---|---|
| 8-K - ITEM 2.02 4TH QUARTER 09 RESULTS - COCA COLA ENTERPRISES INC | feb1020108k.htm |
EXHIBIT 99
CONTACT: Thor Erickson –
Investor Relations
(770)
989-3110
Laura
Brightwell – Media Relations
(770)
989-3023
FOR IMMEDIATE
RELEASE
COCA-COLA ENTERPRISES
INC.
REPORTS FOURTH-QUARTER AND
FULL-YEAR 2009 RESULTS
|
·
|
Full-year
2009 diluted EPS totaled $1.48, or $1.60 excluding items affecting
comparability; net income totaled $731 million, or $788 million on a
comparable basis.
|
|
·
|
Fourth
quarter EPS was 22 cents on both a reported and comparable
basis.
|
|
·
|
CCE
confirms full-year 2010 guidance of high single-digit comparable, currency
neutral diluted earnings per share growth with continued strong free cash
flow.
|
ATLANTA, February 10, 2010 -- Coca-Cola
Enterprises (NYSE: CCE) today reported full-year 2009 net income of $731
million, or $1.48 per diluted common share. Excluding certain items
that impact comparability, the company achieved net income of $788 million, or
$1.60 per diluted common share. The following table provides a
reconciliation of reported and comparable earnings per diluted common
share:
Page
2 of 15
|
Fourth Quarter
|
Full Year
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Reported
(GAAP)
|
$ | 0.22 | $ | (2.99 | ) | $ | 1.48 | $ | (9.05 | ) | ||||||
|
Net
Mark-to-Market Commodity Hedges
|
(0.03 | ) | - | (0.06 | ) | - | ||||||||||
|
Restructuring
Charges
|
0.01 | 0.09 | 0.15 | 0.17 | ||||||||||||
|
Franchise
Impairment Charge
|
- | 3.12 | - | 10.18 | ||||||||||||
|
Debt
Extinguishment Costs
|
- | - | 0.01 | - | ||||||||||||
|
Net
Tax Items
|
0.02 | - | 0.02 | 0.02 | ||||||||||||
|
Comparable
Diluted Earnings per Common Share (a)
|
$ | 0.22 | $ | 0.22 | $ | 1.60 | $ | 1.32 | ||||||||
|
(a)
This non-GAAP financial information is provided to allow investors
to more clearly evaluate operating performance and business
trends. Management uses this information to review results excluding
items that are not necessarily indicative of ongoing results. The
items listed are based on defined terms and thresholds and represent all
material items management considered for year-over-year
comparability.
|
||||||||||||||||
For full-year
2009, consolidated comparable operating income grew 9 percent. North American
comparable operating income grew $126 million or 13 percent, and in Europe,
operating income grew $63 million, or 7 percent, including a negative currency
impact of $118 million. Full-year revenues were down ½ percent, as
North American revenue declined ½ percent and European revenue declined 1½
percent. Excluding a negative currency impact of 3½ percent, total revenues grew
3 percent. There was a negative currency impact of approximately 15 cents on
comparable EPS results of $1.60.
In the fourth quarter, diluted EPS on a
reported and comparable basis totaled 22 cents. Revenue declined 2½
percent as a favorable currency impact of 3 percent was offset by four fewer
selling days.
“Our 2009 results clearly demonstrate
that we can deliver against our long term objectives even as we manage through
difficult operating and economic conditions,” said John F. Brock, chairman and
chief executive officer. “Our earnings in 2009 were the highest in
our history and up more than 20 percent from a year ago. These
results reflect the hard work and talent of our 70,000 employees, whose efforts
have positioned CCE to deliver another year of earnings growth in
2010.
Page
3 of 15
North
American Results
For full-year 2009, comparable North
American volume declined 5 percent, while net pricing per case grew
6½ percent. Full year cost of sales per case increased 4
percent. In the fourth quarter, North American volume declined 3
percent, while net pricing per case declined ½ percent reflecting the mix impact
of slower sales of still beverages and single-serve packages.
“Though fourth quarter volume results
reflect significant sequential improvement over the third quarter, we continue
to see the impact of weak macroeconomic conditions on our overall results,” Mr.
Brock said. “Key channels, such as on premise, remain soft. We will
continue to execute several key operating and brand initiatives to counter these
conditions. For example, through our price/package architecture effort, we are
offering customers and consumers important package and price point
alternatives.
“We are also strengthening our
marketplace presence through our Right Execution Daily initiative and through
Selling and Merchandising Optimization, which enhances customer service and
reduces costs,” Mr. Brock said. “This work, coupled with the strength
of our Red, Black and Silver Coca-Cola trademark portfolio as well as new brand
activity including vitaminwater Zero, will help us reach our 2010 goals in North
America.”
Page
4 of 15
European Results
A balance of solid volume and pricing
growth enabled Europe to achieve a third consecutive year of profit
growth. For the full year, comparable volume grew 5½ percent, with
continental Europe growth of 5 percent and growth in Great Britain of 6
percent. A key growth factor is the ongoing success of Coca-Cola Zero
and the company’s Red, Black, and Silver initiative. For the year,
Coca-Cola trademark brands grew 7 percent, highlighted by growth for brand
Coca-Cola, diet Coke/Coke light, and Coca-Cola Zero, which increased more than
15 percent. Flavored sparkling drinks grew 3 percent, driven by
Sprite and energy drinks. Still beverages grew 1 percent for the
year, with growth in water and declines for juices.
Comparable net pricing per case
increased 4 percent for the full year on a currency-neutral basis. In
the fourth quarter, European volume increased 6 percent and comparable net
pricing per case grew 3½ percent.
“Europe continues to deliver
outstanding results, with balanced growth and profitability for the third
consecutive year,” Mr. Brock said. “To build on this progress, it is vital that
we continue to focus on core sparkling beverages, improve our overall still
beverage portfolio, strengthen customer service amid a rapidly changing
commercial environment, and further enhance our effectiveness and
efficiency.
“We are committed to maximizing our
operations to seize the attractive growth opportunities in Europe,” Mr. Brock
said.
2010
Outlook
CCE
reaffirmed the guidance delivered in its December conference call with
analysts. For 2010, the company expects operating income will
increase in a mid to high single-digit range, driven by mid single-digit growth
in both Europe and North America. Revenue should increase at a low
single-digit rate, driven by mid single-digit growth in Europe and essentially
flat revenue in North America.
Page
5 of 15
Comparable
earnings per diluted common share will increase at a high single-digit rate,
excluding currency. Though it is too early to accurately evaluate the
2010 currency impact, at current rates, currency would have a negligible impact
to full-year EPS.
The
company also expects strong free cash flow of approximately $800 million, and
capital expenditures of approximately $1 billion. Interest expense is
expected to decline modestly, and the effective tax rate for 2010 is expected to
be approximately 26 percent. Guidance excludes items affecting
comparability and is currency-neutral.
Share
Repurchase Plans Move Forward
CCE
confirmed that it plans to repurchase up to $600 million of its common stock by
the end of 2010 under previously authorized share repurchase
programs. Repurchased shares will be added to treasury stock and made
available for general corporate purposes, including acquisition financing and
the funding of various employee benefit and compensation plans. The company said
its share repurchase plans may be adjusted depending on economic, operating, or
other factors, including acquisition opportunities.
Page 6 of
15
Conference
Call with Investors
CCE will
host a conference call with investors and analysts to discuss the company’s
full-year 2009 results and 2010 outlook live over the Internet today at 10 a.m.
ET. The call can be accessed through our Web site at www.cokecce.com.
Coca-Cola Enterprises Inc. is the
world's largest marketer, distributor, and producer of bottle and can liquid
nonalcoholic refreshment. CCE sells approximately 80 percent of The
Coca-Cola Company's bottle and can volume in North America and is the sole
licensed bottler for products of The Coca-Cola Company in Belgium, continental
France, Great Britain, Luxembourg, Monaco, and the Netherlands. For
more information about our company, please visit our website at www.cokecce.com.
Forward-Looking
Statements
Included
in this news release are forward-looking management comments and other
statements that reflect management’s current outlook for future periods. As
always, these expectations are based on currently available competitive,
financial, and economic data along with our current operating plans and are
subject to risks and uncertainties that could cause actual results to differ
materially from the results contemplated by the forward-looking statements. The
forward-looking statements in this news release should be read in conjunction
with the risks and uncertainties discussed in our filings with the Securities
and Exchange Commission, including our most recent annual report on Form 10-K
and subsequent SEC filings.
Page
7 of 15
|
COCA-COLA
ENTERPRISES INC.
|
||||
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited;
In Millions, Except Per Share Data)
|
||||
|
|
||||
|
Fourth
Quarter
|
||||||||||||
|
2009(a)
|
2008(b)
|
Change
|
||||||||||
|
Net
Operating Revenues
|
$ | 5,117 | $ | 5,237 | (2.5 | )% | ||||||
|
Cost
of Sales
|
3,110 | 3,297 | (5.5 | )% | ||||||||
|
Gross
Profit
|
2,007 | 1,940 | 3.5 | % | ||||||||
|
Selling,
Delivery, and Administrative Expenses
|
1,734 | 1,703 | 2.0 | % | ||||||||
|
Franchise
License Impairment Charge
|
- | 2,346 | ||||||||||
|
Operating
Income (Loss)
|
273 | (2,109 | ) | |||||||||
|
Interest
Expense, Net
|
133 | 153 | ||||||||||
|
Other
Nonoperating Income (Expense), Net
|
3 | (7 | ) | |||||||||
|
Income
(Loss) Before Income Taxes
|
143 | (2,269 | ) | |||||||||
|
Income
Tax Expense (Benefit)
|
33 | (819 | ) | |||||||||
|
Net
Income (Loss)
|
$ | 110 | $ | (1,450 | ) | |||||||
|
Basic
Earnings (Loss) Per Common Share(c)
|
$ | 0.22 | $ | (2.99 | ) | |||||||
|
Diluted
Earnings (Loss) Per Common Share(c)
|
$ | 0.22 | $ | (2.99 | ) | |||||||
|
Basic
Weighted Average Common Shares Outstanding
|
490 | 486 | ||||||||||
|
Diluted
Weighted Average Common Shares Outstanding
|
498 | 486 | ||||||||||
|
(a) Fourth-quarter
2009 net income includes net favorable items totaling $1 million, or $0.00
cents per diluted common share.
|
|
See
page 11 of this earnings release for a list of these
items.
|
|
(b) Fourth-quarter
2008 net loss includes net unfavorable items totaling
$1.6 billion, or $3.21 cents per common
share.
|
|
See
page 11 of this earnings release for a list of these
items.
|
|
(c) Per
share data calculated prior to rounding to
millions.
|
Page
8 of 15
|
COCA-COLA
ENTERPRISES INC.
|
||||
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited;
In Millions, Except Per Share Data)
|
|
Full
Year
|
||||||||||||
|
2009(a)
|
2008(b)
|
Change
|
||||||||||
|
Net
Operating Revenues
|
$ | 21,645 | $ | 21,807 | (0.5 | )% | ||||||
|
Cost
of Sales
|
13,333 | 13,763 | (3.0 | )% | ||||||||
|
Gross
Profit
|
8,312 | 8,044 | 3.5 | % | ||||||||
|
Selling,
Delivery, and Administrative Expenses
|
6,785 | 6,718 | 1.0 | % | ||||||||
|
Franchise
License Impairment Charge
|
- | 7,625 | ||||||||||
|
Operating
Income (Loss)
|
1,527 | (6,299 | ) | |||||||||
|
Interest
Expense, Net
|
574 | 587 | ||||||||||
|
Other
Nonoperating Income (Expense), Net
|
10 | (15 | ) | |||||||||
|
Income
(Loss) Before Income Taxes
|
963 | (6,901 | ) | |||||||||
|
Income
Tax Expense (Benefit)
|
232 | (2,507 | ) | |||||||||
|
Net
Income (Loss)
|
$ | 731 | $ | (4,394 | ) | |||||||
|
Basic
Earnings (Loss) Per Common Share(c)
|
$ | 1.49 | $ | (9.05 | ) | |||||||
|
Diluted
Earnings (Loss) Per Common Share(c)
|
$ | 1.48 | $ | (9.05 | ) | |||||||
|
Basic
Weighted Average Common Shares Outstanding
|
488 | 485 | ||||||||||
|
Diluted
Weighted Average Common Shares Outstanding
|
493 | 485 | ||||||||||
|
(a) Full
year 2009 net income includes net unfavorable items totaling $57 million,
or $0.12 cents per diluted common share.
|
|
See
page 12 of this earnings release for a list of these
items.
|
|
(b) Full
year 2008 net loss includes net unfavorable items totaling $5 billion, or
$10.37 cents per common share.
|
|
See
page 12 of this earnings release for a list of these
items.
|
|
(c) Per
share data calculated prior to rounding to
millions.
|
Page
9 of 15
COCA-COLA
ENTERPRISES INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited; In
Millions)
|
December
31,
|
December
31,
|
|||
|
2009
|
2008
|
|||
|
ASSETS
|
||||
|
Current:
|
||||
|
Cash
and cash equivalents
|
$ 1,036
|
$ 722
|
||
|
Trade
accounts receivable, net
|
2,448
|
2,154
|
||
|
Amounts
receivable from The Coca-Cola Company
|
205
|
154
|
||
|
Inventories
|
874
|
901
|
||
|
Current
deferred income tax assets
|
222
|
244
|
||
|
Prepaid
expenses and other current assets
|
385
|
408
|
||
|
Total
Current Assets
|
5,170
|
4,583
|
||
|
Property,
plant, and equipment, net
|
6,276
|
6,243
|
||
|
Goodwill
|
604
|
604
|
||
|
Franchise
license intangible assets, net
|
3,491
|
3,234
|
||
|
Other
noncurrent assets, net
|
875
|
925
|
||
|
Total
Assets
|
$ 16,416
|
$ 15,589
|
||
|
LIABILITIES
AND EQUITY (DEFICIT)
|
||||
|
Current:
|
||||
|
Accounts
payable and accrued expenses
|
$ 3,273
|
$ 2,907
|
||
|
Amounts
payable to The Coca-Cola Company
|
378
|
339
|
||
|
Deferred
cash receipts from The Coca-Cola Company
|
51
|
46
|
||
|
Current
portion of debt
|
886
|
1,782
|
||
|
Total
Current Liabilities
|
4,588
|
5,074
|
||
|
Debt,
less current portion
|
7,891
|
7,247
|
||
|
Other
long-term obligations
|
1,796
|
2,115
|
||
|
Deferred
cash receipts from The Coca-Cola Company,
|
||||
|
less
current
|
35
|
76
|
||
|
Noncurrent
deferred income tax liabilities
|
1,224
|
1,086
|
||
|
Total
Liabilities
|
15,534
|
15,598
|
||
|
Coca-Cola
Enterprises Shareowners' Equity (Deficit)
|
859
|
(31)
|
||
|
Noncontrolling
Interest
|
23
|
22
|
||
|
Total
Liabilities and Equity (Deficit)
|
$ 16,416
|
$ 15,589
|
Page
10 of 15
COCA-COLA
ENTERPRISES INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited; In
Millions)
|
December
31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Cash Flows From Operating
Activities
|
||||||||
|
Net
income (loss)
|
$ | 731 | $ | (4,394 | ) | |||
|
Adjustments
to reconcile net income (loss) to net cash derived from operating
activities:
|
||||||||
|
Depreciation
and amortization
|
1,043 | 1,050 | ||||||
|
Franchise
license impairment charge
|
- | 7,625 | ||||||
|
Share-based
compensation expense
|
81 | 44 | ||||||
|
Deferred
funding income from The Coca-Cola Company, net of cash
received
|
(36 | ) | (50 | ) | ||||
|
Deferred
income tax expense (benefit)
|
70 | (2,599 | ) | |||||
|
Pension
and other postretirement expense less than contributions
|
(287 | ) | (1 | ) | ||||
|
Changes
in assets and liabilities:
|
||||||||
|
Trade
accounts and other receivables
|
(212 | ) | (118 | ) | ||||
|
Inventories
|
51 | (24 | ) | |||||
|
Prepaid
expenses and other assets
|
22 | (175 | ) | |||||
|
Accounts
payable and accrued expenses
|
312 | 135 | ||||||
|
Other
changes, net
|
5 | 125 | ||||||
|
Net
cash derived from operating activities
|
1,780 | 1,618 | ||||||
|
Cash Flows From Investing
Activities
|
||||||||
|
Capital
asset investments
|
(916 | ) | (981 | ) | ||||
|
Capital
asset disposals
|
8 | 18 | ||||||
|
Acquisition
of distribution rights
|
(80 | ) | - | |||||
|
Other
investing activities
|
(6 | ) | (12 | ) | ||||
|
Net
cash used in investing activities
|
(994 | ) | (975 | ) | ||||
|
Cash Flows From Financing
Activities
|
||||||||
|
Change
in commercial paper, net
|
(174 | ) | (159 | ) | ||||
|
Issuances
of debt
|
1,322 | 1,614 | ||||||
|
Payments
on debt
|
(1,542 | ) | (1,464 | ) | ||||
|
Dividend
payments on common stock
|
(147 | ) | (138 | ) | ||||
|
Exercise
of employee share options
|
59 | 18 | ||||||
|
Other
financing activities
|
- | 3 | ||||||
|
Net
cash used in financing activities
|
(482 | ) | (126 | ) | ||||
|
Net
effect of exchange rate changes on cash and cash
equivalents
|
10 | (18 | ) | |||||
|
Net
Change In Cash and Cash Equivalents
|
314 | 499 | ||||||
|
Cash
and Cash Equivalents at Beginning of Period
|
722 | 223 | ||||||
|
Cash
and Cash Equivalents at End of Period
|
$ | 1,036 | $ | 722 | ||||
Page
11 of 15
|
COCA-COLA
ENTERPRISES INC.
|
|
RECONCILIATION
OF GAAP TO NON-GAAP
|
|
(Unaudited;
In Millions, Except Per Share Data which is calculated prior to
rounding)
|
|
|
Fourth-Quarter
2009
|
|||||||||||||||||||||||
|
Items
Impacting Comparability
|
||||||||||||||||||||||||
|
Reconciliation of Income(a)
|
Reported
(GAAP)
|
Net
Mark-to-
Market
Commodity
Hedges(b)
|
Restructuring
Charges
|
Franchise
Impairment
Charge
|
Net
Tax Items
|
Comparable
(non-GAAP)
|
||||||||||||||||||
|
Net
Operating Revenues
|
$ | 5,117 | $ | - | $ | - | $ | - | $ | - | $ | 5,117 | ||||||||||||
|
Cost
of Sales
|
3,110 | 27 | - | - | - | 3,137 | ||||||||||||||||||
|
Gross
Profit
|
2,007 | (27 | ) | - | - | - | 1,980 | |||||||||||||||||
|
Selling,
Delivery, and Administrative Expenses
|
1,734 | 2 | (19 | ) | - | - | 1,717 | |||||||||||||||||
|
Operating
Income
|
273 | (29 | ) | 19 | - | - | 263 | |||||||||||||||||
|
Interest
Expense, Net
|
133 | - | - | - | - | 133 | ||||||||||||||||||
|
Other
Nonoperating Income, Net
|
3 | - | - | - | - | 3 | ||||||||||||||||||
|
Income
Before Income Taxes
|
143 | (29 | ) | 19 | - | - | 133 | |||||||||||||||||
|
Income
Tax Expense
|
33 | (11 | ) | 13 | - | (11 | ) | 24 | ||||||||||||||||
|
Net
Income
|
$ | 110 | $ | (18 | ) | $ | 6 | $ | - | $ | 11 | $ | 109 | |||||||||||
|
Diluted
Earnings Per Common Share
|
$ | 0.22 | $ | (0.03 | ) | $ | 0.01 | $ | - | $ | 0.02 | $ | 0.22 | |||||||||||
|
Fourth-Quarter
2008
|
||||||||||||||||||||||||
|
Items
Impacting Comparability
|
||||||||||||||||||||||||
|
Reconciliation of Income(a)
|
Reported
(GAAP)
|
Net
Mark-to-
Market
Commodity
Hedges(b)
|
Restructuring
Charges
|
Franchise
Impairment Charge
|
Net
Tax Items
|
Comparable
(non-GAAP)
|
||||||||||||||||||
|
Net
Operating Revenues
|
$ | 5,237 | $ | - | $ | - | $ | - | $ | - | $ | 5,237 | ||||||||||||
|
Cost
of Sales
|
3,297 | - | - | - | - | 3,297 | ||||||||||||||||||
|
Gross
Profit
|
1,940 | - | - | - | - | 1,940 | ||||||||||||||||||
|
Selling,
Delivery, and Administrative Expenses
|
1,703 | - | (66 | ) | - | - | 1,637 | |||||||||||||||||
|
Franchise
Impairment Charge
|
2,346 | - | - | (2,346 | ) | - | - | |||||||||||||||||
|
Operating
(Loss) Income
|
(2,109 | ) | - | 66 | 2,346 | - | 303 | |||||||||||||||||
|
Interest
Expense, Net
|
153 | - | - | - | - | 153 | ||||||||||||||||||
|
Other
Nonoperating Expense, Net
|
(7 | ) | - | - | - | - | (7 | ) | ||||||||||||||||
|
(Loss)
Income Before Income Taxes
|
(2,269 | ) | - | 66 | 2,346 | - | 143 | |||||||||||||||||
|
Income
Tax (Benefit) Expense
|
(819 | ) | - | 20 | 835 | - | 36 | |||||||||||||||||
|
Net
(Loss) Income
|
$ | (1,450 | ) | $ | - | $ | 46 | $ | 1,511 | $ | - | $ | 107 | |||||||||||
|
Diluted
(Loss) Earnings Per Common Share
|
$ | (2.99 | ) | $ | - | $ | 0.09 | $ | 3.12 | $ | - | $ | 0.22 | |||||||||||
|
(a)
|
These
non-GAAP measures are provided to allow investors to more clearly evaluate
our operating performance and business trends. Management uses this
information to review results excluding items that are not necessarily
indicative of our ongoing results. The items listed are based
on defined terms and thresholds and represent all material items
management considered for year-over-year comparability.
|
|
(b)
|
Amounts
represent the net out of period mark-to-market impact of our
non-designated commodity hedges.
|
|
Page
12 of 15
COCA-COLA
ENTERPRISES INC.
|
|
RECONCILIATION
OF GAAP TO NON-GAAP
|
|
(Unaudited;
In Millions, Except Per Share Data which is calculated prior to
rounding)
|
|
Full
Year 2009
|
||||||||||||||||||||||||||||
|
Items
Impacting Comparability
|
||||||||||||||||||||||||||||
|
Reconciliation of Income(a)
|
Reported
(GAAP)
|
Net
Mark-to-
Market
Commodity
Hedges(b)
|
Restructuring
Charges
|
Franchise
Impairment
Charge
|
Debt
Extinguishment
Cost
|
Net
Tax Items
|
Comparable
(non-GAAP)
|
|||||||||||||||||||||
|
Net
Operating Revenues
|
$ | 21,645 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 21,645 | ||||||||||||||
|
Cost
of Sales
|
13,333 | 44 | - | - | - | - | 13,377 | |||||||||||||||||||||
|
Gross
Profit
|
8,312 | (44 | ) | - | - | - | - | 8,268 | ||||||||||||||||||||
|
Selling,
Delivery, and Administrative Expenses
|
6,785 | 2 | (114 | ) | - | - | - | 6,673 | ||||||||||||||||||||
|
Operating
Income
|
1,527 | (46 | ) | 114 | - | - | - | 1,595 | ||||||||||||||||||||
|
Interest
Expense, Net
|
574 | - | - | - | (9 | ) | - | 565 | ||||||||||||||||||||
|
Other
Nonoperating Income, Net
|
10 | - | - | - | - | - | 10 | |||||||||||||||||||||
|
Income
Before Income Taxes
|
963 | (46 | ) | 114 | - | 9 | - | 1,040 | ||||||||||||||||||||
|
Income
Tax Expense
|
232 | (16 | ) | 41 | - | 3 | (8 | ) | 252 | |||||||||||||||||||
|
Net
Income
|
$ | 731 | $ | (30 | ) | $ | 73 | $ | - | $ | 6 | $ | 8 | $ | 788 | |||||||||||||
|
Diluted
Earnings Per Common Share
|
$ | 1.48 | $ | (0.06 | ) | $ | 0.15 | $ | - | $ | 0.01 | $ | 0.02 | $ | 1.60 | |||||||||||||
|
Full
Year 2008
|
||||||||||||||||||||||||||||
|
Items
Impacting Comparability
|
||||||||||||||||||||||||||||
|
Reconciliation of Income(a)
|
Reported
(GAAP)
|
Net
Mark-to-
Market
Commodity
Hedges(b)
|
Restructuring
Charges
|
Franchise
Impairment
Charge
|
Debt
Extinguishment
Cost
|
Net Tax
Items
|
Comparable
(non-GAAP)
|
|||||||||||||||||||||
|
Net
Operating Revenues
|
$ | 21,807 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 21,807 | ||||||||||||||
|
Cost
of Sales
|
13,763 | - | - | - | - | - | 13,763 | |||||||||||||||||||||
|
Gross
Profit
|
8,044 | - | - | - | - | - | 8,044 | |||||||||||||||||||||
|
Selling,
Delivery, and Administrative Expenses
|
6,718 | - | (134 | ) | - | - | - | 6,584 | ||||||||||||||||||||
|
Franchise
Impairment Charge
|
7,625 | - | - | (7,625 | ) | - | - | - | ||||||||||||||||||||
|
Operating
(Loss) Income
|
(6,299 | ) | - | 134 | 7,625 | - | - | 1,460 | ||||||||||||||||||||
|
Interest
Expense, Net
|
587 | - | - | - | - | - | 587 | |||||||||||||||||||||
|
Other
Nonoperating Expense, Net
|
(15 | ) | - | - | - | - | - | (15 | ) | |||||||||||||||||||
|
(Loss)
Income Before Income Taxes
|
(6,901 | ) | - | 134 | 7,625 | - | - | 858 | ||||||||||||||||||||
|
Income
Tax (Benefit) Expense
|
(2,507 | ) | - | 47 | 2,682 | - | (11 | ) | 211 | |||||||||||||||||||
|
Net
(Loss) Income
|
$ | (4,394 | ) | $ | - | $ | 87 | $ | 4,943 | $ | - | $ | 11 | $ | 647 | |||||||||||||
|
Diluted
(Loss) Earnings Per Common Share
|
$ | (9.05 | ) | $ | - | $ | 0.17 | $ | 10.18 | $ | - | $ | 0.02 | $ | 1.32 | |||||||||||||
|
(a)
|
These
non-GAAP measures are provided to allow investors to more clearly evaluate
our operating performance and business trends. Management uses this
information to review results excluding items that are not necessarily
indicative of our ongoing results. The items listed are based
on defined terms and thresholds and represent all material items
management considered for year-over-year comparability.
|
|
(b)
|
Amounts
represent the net out of period mark-to-market impact of our
non-designated commodity hedges.
|
Page
13 of 15
|
COCA-COLA
ENTERPRISES INC.
|
|
RECONCILIATION
OF GAAP TO NON-GAAP
|
|
(Unaudited;
In Millions)
|
|
Fourth-Quarter2009
|
||||||||||||||||||||
|
Reported
(GAAP)
|
Items
Impacting Comparability
|
Comparable
(non-GAAP)
|
||||||||||||||||||
|
Reconciliation
of Segment Income(a)
|
Net
Mark-to-Market Commodity Hedges(b)
|
Restructuring
Charges
|
Franchise
Impairment Charge
|
|||||||||||||||||
|
North
America
|
$ | 201 | $ | - | $ | 9 | $ | - | $ | 210 | ||||||||||
|
Europe
|
165 | - | 3 | - | 168 | |||||||||||||||
|
Corporate
|
(93 | ) | (29 | ) | 7 | - | (115 | ) | ||||||||||||
|
Operating
Income
|
$ | 273 | $ | (29 | ) | $ | 19 | $ | - | $ | 263 | |||||||||
|
Fourth-Quarter
2008
|
||||||||||||||||||||
|
Reported
(GAAP)
|
Items
Impacting Comparability
|
Comparable
(non-GAAP)
|
||||||||||||||||||
|
Reconciliation
of Segment Income(a)
|
Net
Mark-to-
Market
Commodity
Hedges(b)
|
Restructuring
Charges
|
Franchise
Impairment Charge
|
|||||||||||||||||
|
North
America
|
$ | (2,153 | ) | $ | - | $ | 46 | $ | 2,346 | $ | 239 | |||||||||
|
Europe
|
168 | - | 7 | - | 175 | |||||||||||||||
|
Corporate
|
(124 | ) | - | 13 | - | (111 | ) | |||||||||||||
|
Operating
(Loss) Income
|
$ | (2,109 | ) | $ | - | $ | 66 | $ | 2,346 | $ | 303 | |||||||||
|
Fourth
Quarter
|
||||||||
|
Segment Revenue
|
2009
|
2008
|
||||||
|
North
America
|
$ | 3,511 | $ | 3,817 | ||||
|
Europe
|
1,606 | 1,420 | ||||||
|
Net
Operating Revenues
|
$ | 5,117 | $ | 5,237 | ||||
|
(a)
|
These
non-GAAP measures are provided to allow investors to more clearly evaluate
our operating performance and business trends. Management uses this
information to review results excluding items that are not necessarily
indicative of our ongoing results. The items listed are based on defined
terms and thresholds and represent all material items management
considered for year-over-year comparability.
|
|
(b)
|
Amounts
represent the net out of period mark-to-market impact of our
non-designated commodity hedges.
|
Page
14 of 15
|
COCA-COLA
ENTERPRISES INC.
|
|
RECONCILIATION
OF GAAP TO NON-GAAP
|
|
(Unaudited;
In Millions)
|
|
Full
Year 2009
|
||||||||||||||||||||
|
Reported
(GAAP)
|
Items
Impacting Comparability
|
Comparable
(non-GAAP)
|
||||||||||||||||||
|
Reconciliation
of Segment Income(a)
|
Net
Mark-to-
Market
Commodity
Hedges(b)
|
Restructuring
Charges
|
Franchise
Impairment
Charge
|
|||||||||||||||||
|
North
America
|
$ | 1,059 | $ | - | $ | 47 | $ | - | $ | 1,106 | ||||||||||
|
Europe
|
963 | - | 7 | - | 970 | |||||||||||||||
|
Corporate
|
(495 | ) | (46 | ) | 60 | - | (481 | ) | ||||||||||||
|
Operating
Income
|
$ | 1,527 | $ | (46 | ) | $ | 114 | $ | - | $ | 1,595 | |||||||||
|
Full
Year 2008
|
||||||||||||||||||||
|
Reported
(GAAP)
|
Items
Impacting Comparability
|
Comparable
(non-GAAP)
|
||||||||||||||||||
|
Reconciliation
of Segment Income(a)
|
Net
Mark-to-
Market
Commodity
Hedges(b)
|
Restructuring
Charges
|
Franchise
Impairment
Charge
|
|||||||||||||||||
|
North
America
|
$ | (6,721 | ) | $ | - | $ | 76 | $ | 7,625 | $ | 980 | |||||||||
|
Europe
|
891 | - | 16 | - | 907 | |||||||||||||||
|
Corporate
|
(469 | ) | - | 42 | - | (427 | ) | |||||||||||||
|
Operating
(Loss) Income
|
$ | (6,299 | ) | $ | - | $ | 134 | $ | 7,625 | $ | 1,460 | |||||||||
|
Full
Year
|
||||||||
|
Segment Revenue
|
2009
|
2008
|
||||||
|
North
America
|
$ | 15,128 | $ | 15,188 | ||||
|
Europe
|
6,517 | 6,619 | ||||||
|
Net
Operating Revenues
|
$ | 21,645 | $ | 21,807 | ||||
|
(a)
|
These
non-GAAP measures are provided to allow investors to more clearly evaluate
our operating performance and business trends. Management uses
this information to review results excluding items that are not
necessarily indicative of our ongoing results. The items listed
are based on defined terms and thresholds and represent all material items
management considered for year-over-year comparability.
|
|
(b)
|
Amounts
represent the net out of period mark-to-market impact of our
non-designated commodity hedges.
|
Page
15 of 15
|
|
Fourth
Quarter 2009 Change Versus
Fourth
Quarter 2008
|
Full
Year 2009 Change Versus
Full
Year 2008
|
||||||||||||||||||||||
|
|
North
America
|
Europe
|
Consolidated
|
North
America
|
Europe
|
Consolidated
|
||||||||||||||||||
|
Net Revenues Per Case
|
||||||||||||||||||||||||
|
Change
in Net Revenues per Case
|
0.5 | % | 13.5 | % | 4.5 | % | 5.5 | % | (6.0 | )% | 2.0 | % | ||||||||||||
|
Impact
of Excluding Post Mix, Non-Trade,
and Other
|
0.0 | % | (1.5 | )% | 0.0 | % | 0.5 | % | 0.0 | % | 0.5 | % | ||||||||||||
|
Bottle
and Can Net Pricing Per Case(a)
|
0.5 | % | 12.0 | % | 4.5 | % | 6.0 | % | (6.0 | )% | 2.5 | % | ||||||||||||
|
Impact
of Currency Exchange Rate Changes
|
(1.0 | )% | (8.5 | )% | (3.5 | )% | 0.5 | % | 10.0 | % | 4.0 | % | ||||||||||||
|
Currency-Neutral
Bottle and Can
|
||||||||||||||||||||||||
|
Net
Pricing per Case(b)
|
(0.5 | )% | 3.5 | % | 1.0 | % | 6.5 | % | 4.0 | % | 6.5 | % | ||||||||||||
|
Cost of Sales Per Case
|
||||||||||||||||||||||||
|
Change
in Cost of Sales per Case
|
(4.5 | )% | 13.0 | % | 1.0 | % | 2.5 | % | (8.0 | )% | 0.0 | % | ||||||||||||
|
Impact
of Excluding Post Mix, Non-Trade,
and Other
|
0.5 | % | (1.5 | )% | 0.5 | % | 0.5 | % | 0.0 | % | 0.5 | % | ||||||||||||
|
Bottle
and Can Cost of Sales Per Case(c)
|
(4.0 | )% | 11.5 | % | 1.5 | % | 3.0 | % | (8.0 | )% | 0.5 | % | ||||||||||||
|
Impact
of Currency Exchange Rate Changes
|
(1.0 | )% | (8.5 | )% | (3.5 | )% | 1.0 | % | 9.5 | % | 3.5 | % | ||||||||||||
|
Currency-Neutral
Bottle and Can
|
||||||||||||||||||||||||
|
Cost
of Sales per Case(b)
|
(5.0 | )% | 3.0 | % | (2.0 | )% | 4.0 | % | 1.5 | % | 4.0 | % | ||||||||||||
|
Physical Case Bottle and Can
Volume
|
||||||||||||||||||||||||
|
Change
in Volume
|
(8.5 | )% | (0.5 | )% | (6.5 | )% | (5.5 | )% | 5.0 | % | (3.0 | )% | ||||||||||||
|
Impact
of Selling Day Shift
|
5.5 | % | 6.5 | % | 6.0 | % | 0.5 | % | 0.5 | % | 0.5 | % | ||||||||||||
|
Comparable
Bottle and Can Volume(d)
|
(3.0 | )% | 6.0 | % | (0.5 | )% | (5.0 | )% | 5.5 | % | (2.5 | )% | ||||||||||||
|
Full
Year
|
||||||||
|
Reconciliation of Free Cash Flow (e)
|
2009
|
2008
|
||||||
|
Net
Cash From Operating Activities
|
$ | 1,780 | $ | 1,618 | ||||
|
Less:
Capital Asset Investments
|
(916 | ) | (981 | ) | ||||
|
Add:
Capital Asset Disposals
|
8 | 18 | ||||||
|
Free
Cash Flow
|
$ | 872 | $ | 655 | ||||
|
December
31,
|
December
31,
|
|||||||
|
Reconciliation of Net Debt (f)
|
2009 | 2008 | ||||||
|
Current
Portion of Debt
|
$ | 886 | $ | 1,782 | ||||
|
Debt,
Less Current Portion
|
7,891 | 7,247 | ||||||
|
Less:
Cash and Cash Equivalents
|
(1,036 | ) | (722 | ) | ||||
|
Net
Debt
|
$ | 7,741 | $ | 8,307 | ||||
|
(a)
|
The
non-GAAP financial measure "Bottle and Can Net Pricing per Case" is used
to more clearly evaluate bottle and can pricing trends in the
marketplace. The measure excludes the impact of fountain gallon
volume and other items that are not directly associated with bottle and
can pricing in the retail environment. Our bottle and can sales
accounted for approximately 91 percent of our net revenue during
2009.
|
|
(b)
|
The
non-GAAP financial measures "Currency-Neutral Bottle and Can Net Pricing
per Case" and "Currency-Neutral Bottle and Can Cost of Sales per Case" are
used to separate the impact of currency exchange rate changes on our
operations.
|
|
(c)
|
The
non-GAAP financial measure "Bottle and Can Cost of Sales per Case" is used
to more clearly evaluate cost trends for bottle and can
products. The measure excludes the impact of fountain
ingredient costs as well as marketing credits and Jumpstart funding, and
allows investors to gain an understanding of the change in bottle and can
ingredient and packaging costs.
|
|
|
|
|
(d)
|
"Comparable
Bottle and Can Volume" excludes the impact of changes in the number of
selling days between periods. The measure is used to analyze
the performance of our business on a constant period basis. There was one
less selling day for the full year 2009 versus full year 2008. There were
four less selling days in the fourth quarter of 2009 versus the fourth
quarter of 2008.
|
|
(e)
|
The
non-GAAP measure "Free Cash Flow" is provided to focus management and
investors on the cash available for debt reduction, dividend
distributions, share repurchase, and acquisition
opportunities.
|
|
(f)
|
The
non-GAAP measure "Net Debt" is used to more clearly evaluate our capital
structure and leverage.
|