(Source: Business Wire)
Coca-Cola Enterprises (NYSE: CCE) today reported third-quarter 2009 net
income of $247 million, or 50 cents per diluted common share. Excluding
items affecting comparability, third-quarter 2009 net income was $254
million or 51 cents per diluted share, 12 percent above results for the
same quarter a year ago.
The following table reconciles reported and comparable earnings per
common share:
Third Quarter First Nine Months
2009 2008 2009 2008
Reported (GAAP) $ 0.50 $ 0.44 $ 1.26 $ (6.07 )
Net Mark-to-Market Commodity Hedges (0.03 ) - (0.03 ) -
Restructuring Charges 0.04 0.01 0.14 0.08
Franchise Impairment Charge - - - 7.07
Debt Extinguishment - - 0.01 -
Net Tax Items - 0.01 - 0.02
Comparable Diluted Earnings per Common Share(a) $ 0.51 $ 0.46 $ 1.38 $ 1.10
((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.
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Consolidated comparable third quarter operating income grew 5 percent.
North American comparable operating income grew $23 million or 9 percent
and, in Europe, operating income grew $46 million, or 17 percent,
including a negative currency impact of approximately $31 million. In
the quarter, total revenues were down 3 percent, as North American
revenue declined 4 percent and European revenue fell 1 percent.
Excluding a negative currency impact of 3 percent, total revenues were
flat. Comparable EPS results of 51 cents include a negative currency
impact of approximately 4 cents.
"Year to date, we have achieved strong profit growth through successful
execution of brand and marketplace initiatives and efficiency and
effectiveness programs," said John F. Brock, chairman and chief
executive officer. "Going forward, we continue to develop solid business
plans for 2010 that will enable us to increase the efficiency and
synergy of our system and deliver consistent, balanced growth."
Consolidated third quarter results include a decline of 6½ percent in
comparable physical case bottle and can volume. Net pricing per case
increased 7½ percent, and cost of sales per case increased 3½ percent.
Pages 10 through 14 of this release provide a reconciliation of reported
and comparable operating results.
NORTH AMERICAN RESULTS
In North America, increased operating profitability reflects the
benefits of price/package architecture, efficiency initiatives, and
year-over-year declines in some commodity prices. Third-quarter volume
declined 10 percent, impacted by the Olympic-related promotional volume
growth hurdle created in the same quarter a year ago and the shift of 4th
of July holiday volume into the second quarter. Pricing per case grew 7½
percent and cost of sales per case increased 3½ percent.
"Profitability in North America remained in-line with our expectations
despite a challenging economic, consumer and operating environment," Mr.
Brock said. "Our earlier actions to drive improved effectiveness and
efficiency and to enhance margins through price/package architecture
initiatives continue to improve profitability.
"We see ongoing growth opportunities in North America created by the
strength of our brands and portfolio," Mr. Brock said. "Long-term
success requires even greater efficiency and supply chain synergy,
sustained strong cost control, and even stronger marketplace execution.
We are working closely with The Coca-Cola Company to enhance our current
strategies and take the steps necessary to achieve these objectives."
EUROPEAN RESULTS
Europe again achieved strong volume and pricing growth in the quarter.
Third quarter volume grew 4 percent, driven primarily by 4½ percent
growth in the Coca-Cola trademark brands. Coca-Cola Zero grew more than
15 percent, and brand Coca-Cola grew 4½ percent. In addition, water grew
approximately 25 percent reflecting the benefits of the addition of
Abbey Well in Great Britain and double-digit growth for Chaudfontaine on
the Continent. European net pricing per case was up 4½ percent and cost
of sales per case was flat.
"Our European leadership team has continued to manage successfully
through current economic challenges, producing another quarter of
excellent operating and profit improvement," Mr. Brock said. "We
benefited from our ongoing efficiency and cost control initiatives and
from the growth of our core sparkling brands, which remain a key element
of the sustained growth in European profitability.
"To meet the challenge of sustaining our pattern of growth in Europe, we
will remain focused on growing our core brands even as we expand our
presence in other key categories with the addition of Monster and
vitaminwater," Mr. Brock said. "We also will begin distributing Ocean
Spray juice drinks in Great Britain and France early next year,
enhancing our portfolio of still brands that already includes Oasis,
Fanta Still, and Capri-Sun."
FULL-YEAR 2009 OUTLOOK
Management now expects full-year comparable 2009 earnings per diluted
common share to be in the range of $1.54 to $1.57. This range includes
an expected negative currency impact of 16 cents per share and excludes
nonrecurring items. Excluding the impact of currency, revenue is
expected to increase in a low to mid single-digit range and decline
slightly on a reported basis. The company also expects strong free cash
flow of approximately $800 million and capital expenditures of
approximately $900 million.
Free cash flow will continue to be used for debt reduction, although the
company is evaluating methods for returning additional cash to
shareowners. The effective tax rate for 2009 is expected to be
approximately 25 percent.
CONFERENCE CALL
CCE will host a conference call with investors and analysts today at 10
a.m. ET. The call can be accessed through our website 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.
COCA-COLA ENTERPRISES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; In Millions, Except Per Share Data)
Third Quarter
2009(a) 2008(b) Change
Net Operating Revenues $ 5,569 $ 5,743 (3.0 ) %
Cost of Sales 3,404 3,627 (6.0 ) %
Gross Profit 2,165 2,116 2.5 %
Selling, Delivery, and Administrative Expenses 1,701 1,686 1.0 %
Operating Income 464 430
Interest Expense, Net 140 144
Other Nonoperating Income (Expense), Net 2 (11 )
Income Before Income Taxes 326 275
Income Tax Expense 79 61
Net Income $ 247 $ 214
Basic Earnings Per Common Share(c) $ 0.50 $ 0.44
Diluted Earnings Per Common Share(c) $ 0.50 $ 0.44
Basic Weighted Average Common Shares Outstanding 488 485
Diluted Weighted Average Common Shares Outstanding 496 488
(a) Third-quarter 2009 net income includes net unfavorable items totaling $7 million, or $0.01 cent per diluted common share.
See page 10 of this earnings release for a list of these items.
(b) Third-quarter 2008 net income includes net unfavorable items totaling $12 million, or $0.02 cents per diluted common share.
See page 10 of this earnings release for a list of these items.
(c) Per share data calculated prior to rounding to millions.
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COCA-COLA ENTERPRISES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; In Millions, Except Per Share Data)
First Nine Months
2009(a) 2008(b) Change
Net Operating Revenues $ 16,528 $ 16,570 (0.5 ) %
Cost of Sales 10,223 10,466 (2.5 ) %
Gross Profit 6,305 6,104 3.5 %
Selling, Delivery, and Administrative Expenses 5,051 5,015 0.5 %
Franchise Impairment Charge - 5,279
Operating Income (Loss) 1,254 (4,190 )
Interest Expense, Net 441 434
Other Nonoperating Income (Expense), Net 7 (8 )
Income (Loss) Before Income Taxes 820 (4,632 )
Income Tax Expense (Benefit) 199 (1,688 )
Net Income (Loss) $ 621 $ (2,944 )
Basic Earnings (Loss) Per Common Share(c) $ 1.27 $ (6.07 )
Diluted Earnings (Loss) Per Common Share(c) $ 1.26 $ (6.07 )
Basic Weighted Average Common Shares Outstanding 488 485
Diluted Weighted Average Common Shares Outstanding 491 485
(a) First nine months of 2009 net income includes net unfavorable items totaling $58 million, or $0.12 cents per diluted common share.
See page 11 of this earnings release for a list of these items.
(b) First nine months of 2008 net loss includes net unfavorable items totaling $3.5 billion, or $7.17 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.
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COCA-COLA ENTERPRISES INC.
