Coca-Cola Enterprises, Inc. CCE (Euronext Paris: CCE) today reported second-quarter 2015 operating income of $275 million or $289 million on a comparable basis. In the quarter, diluted earnings per share were 75 cents on a reported basis or 79 cents on a comparable basis. Currency translation had a negative impact of 18 cents on comparable diluted earnings per share.
In the second-quarter 2015, net sales totaled $1.9 billion, down 17½ percent from the same quarter a year ago. On a currency-neutral basis, net sales declined 2 percent.
"The consumer environment across our territories continues to limit retail value growth, including the nonalcoholic ready-to-drink category," said John F. Brock, chairman and chief executive officer. "We are managing each element of our business to maximize the value of our brands, to sustain high levels of customer service, and to improve our growth outlook.
"We are now into the key summer selling season, and our people are working diligently and effectively to utilize the strengths of our summer marketing campaigns, such as the Rugby World Cup, and our brand and package innovation initiatives to drive value growth.
"These efforts support a business-wide focus on achieving our most important goal: continuing to build shareowner value."
OPERATING REVIEW
Total second-quarter volume declined 1 percent, impacted by the challenging retail environment and strong prior year growth of 3½ percent. Sparkling brands declined 2½ percent. Coca-Cola trademark declined 3 percent, after cycling prior year growth of 4 percent, and as benefits from Coca-Cola Life and low single-digit growth in Coca-Cola Zero partially offset declines in other Coca-Cola brands. Energy brands grew more than 15 percent, driven primarily by Monster. Still brands grew 7 percent, with growth in Capri-Sun and the introduction of smartwater in Great Britain. Volume in both Great Britain and continental Europe declined 1 percent.
Second-quarter net pricing per case declined 1 percent, and cost of sales per case declined 3 percent, creating gross margin improvement. Operating expenses were up 1 percent. These figures are comparable and currency neutral.
"At every level of our company, we are focused on innovation, including building value from newer brands such as Coca-Cola Life, smartwater, and Finley, and expanding distribution of existing brands such as Capri-Sun and Monster," said Hubert Patricot, executive vice president and president, European Group.
"In addition, we continue to roll out our One Brand strategy, which links each of our Coca-Cola trademark products by reinforcing the message of one unified Coca-Cola and highlighting each product's unique consumer proposition. We believe this strategy helps consumers make more informed choices, which ultimately helps us to drive increasing value for our customers and our shareowners."
FULL-YEAR 2015 OUTLOOK
For 2015, CCE continues to expect diluted earnings per share to grow at the upper end of the range of 6 percent to 8 percent on a comparable and currency-neutral basis. Based on recent rates, currency translation would negatively impact full-year 2015 diluted earnings per share by approximately 18 percent.
Net sales and operating income are each expected to achieve slightly positive growth on a comparable and currency-neutral basis.
The company expects 2015 free cash flow in a range of $600 million to $650 million including the expected negative impact of currency translation based on recent rates. Capital expenditures are expected to be approximately $325 million. Weighted average cost of debt is expected to be approximately 3 percent, and the comparable effective tax rate for 2015 is expected to be in a range of 27 percent to 28 percent.
CCE expects to repurchase approximately $600 million of its shares in 2015. Through the end of the second quarter, the company repurchased approximately $500 million of its shares. These plans may be adjusted depending on economic, operating, or other factors, including acquisition opportunities.
CONFERENCE CALL
CCE will host a conference call with investors and analysts today at 10 a.m. EDT. The call can be accessed through the company's website at www.cokecce.com.
ABOUT CCE
Coca-Cola Enterprises, Inc. is the leading Western European marketer, producer, and distributor of nonalcoholic ready-to-drink beverages and one of the world's largest independent Coca-Cola bottlers. CCE is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. CCE operates with a local focus and has 17 manufacturing sites across Europe, where the company manufactures nearly 90 percent of its products in the markets in which they are consumed. Sustainability is core to CCE's business, and the company has been recognized by leading organizations in North America and Europe for its progress in water use reduction, carbon footprint reduction, and recycling initiatives. For more information about CCE, please visit www.cokecce.com and follow the company on Twitter at @cokecce.
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 ("SEC"), including our most recent Form 10-K and other SEC filings.
_____________________
Reconciliations of reported (GAAP) to comparable (non-GAAP) information and other non-GAAP measures used by management in managing the business are detailed on the following pages of this news release.
COCA-COLA ENTERPRISES, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited; in millions, except per share data) |
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Second Quarter | First Six Months | ||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Net sales | $ | 1,928 | $ | 2,333 | $ | 3,559 | $ | 4,203 | |||||||||||
Cost of sales | 1,223 | 1,487 | 2,286 | 2,707 | |||||||||||||||
Gross profit | 705 | 846 | 1,273 | 1,496 | |||||||||||||||
Selling, delivery, and administrative expenses | 430 | 551 | 840 | 1,017 | |||||||||||||||
Operating income | 275 | 295 | 433 | 479 | |||||||||||||||
Interest expense, net | 31 | 30 | 61 | 58 | |||||||||||||||
Other nonoperating (expense) income | (1 | ) | 1 | 1 | — | ||||||||||||||
Income before income taxes | 243 | 266 | 373 | 421 | |||||||||||||||
Income tax expense | 67 | 68 | 101 | 108 | |||||||||||||||
Net income | $ | 176 | $ | 198 | $ | 272 | $ | 313 | |||||||||||
Basic earnings per share | $ | 0.76 | $ | 0.80 | $ | 1.17 | $ | 1.24 | |||||||||||
Diluted earnings per share | $ | 0.75 | $ | 0.78 | $ | 1.15 | $ | 1.22 | |||||||||||
Dividends declared per share | $ | 0.28 | $ | 0.25 | $ | 0.56 | $ | 0.50 | |||||||||||
Basic weighted average shares outstanding | 231 | 249 | 233 | 252 | |||||||||||||||
Diluted weighted average shares outstanding | 235 | 254 | 237 | 257 | |||||||||||||||
COCA-COLA ENTERPRISES, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(Unaudited; in millions) |
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Second Quarter | First Six Months | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Net income | $ | 176 | $ | 198 | $ | 272 | $ | 313 | |||||||||||||
Components of other comprehensive income (loss): | |||||||||||||||||||||
Currency translations | |||||||||||||||||||||
Pretax activity, net | 99 | 13 | (180 | ) | 24 | ||||||||||||||||
Tax effect | — | — | — | — | |||||||||||||||||
Currency translations, net of tax | 99 | 13 | (180 | ) | 24 | ||||||||||||||||
Net investment hedges | |||||||||||||||||||||
Pretax activity, net | (29 | ) | 18 | 123 | 17 | ||||||||||||||||
Tax effect | 10 | (6 | ) | (43 | ) | (6 | ) | ||||||||||||||
Net investment hedges, net of tax | (19 | ) | 12 | 80 | 11 | ||||||||||||||||
Cash flow hedges | |||||||||||||||||||||
Pretax activity, net | (2 | ) | (3 | ) | (4 | ) | (6 | ) | |||||||||||||
Tax effect | — | — | — | 1 | |||||||||||||||||
Cash flow hedges, net of tax | (2 | ) | (3 | ) | (4 | ) | (5 | ) | |||||||||||||
Pension plan adjustments | |||||||||||||||||||||
Pretax activity, net | 7 | 7 | 14 | 13 | |||||||||||||||||
Tax effect | (1 | ) | (2 | ) | (3 | ) | (3 | ) | |||||||||||||
Pension plan adjustments, net of tax | 6 | 5 | 11 | 10 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 84 | 27 | (93 | ) | 40 | ||||||||||||||||
Comprehensive income | $ | 260 | $ | 225 | $ | 179 | $ | 353 | |||||||||||||
COCA-COLA ENTERPRISES, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited; in millions) |
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July 3, 2015 |
December 31, 2014 |
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ASSETS | |||||||||||
Current: | |||||||||||
Cash and cash equivalents | $ | 418 | $ | 223 | |||||||
Trade accounts receivable | 1,637 | 1,514 | |||||||||
Amounts receivable from The Coca-Cola Company | 63 | 67 | |||||||||
Inventories | 411 | 388 | |||||||||
Other current assets | 326 | 268 | |||||||||
Total current assets | 2,855 | 2,460 | |||||||||
Property, plant, and equipment, net | 2,008 | 2,101 | |||||||||
Franchise license intangible assets, net | 3,532 | 3,641 | |||||||||
Goodwill | 94 | 101 | |||||||||
Other noncurrent assets | 217 | 240 | |||||||||
Total assets | $ | 8,706 | $ | 8,543 | |||||||
LIABILITIES | |||||||||||
Current: | |||||||||||
Accounts payable and accrued expenses | $ | 1,931 | $ | 1,872 | |||||||
Amounts payable to The Coca-Cola Company | 116 | 104 | |||||||||
Current portion of debt | 772 | 632 | |||||||||
Total current liabilities | 2,819 | 2,608 | |||||||||
Debt, less current portion | 3,712 | 3,320 | |||||||||
Other noncurrent liabilities | 206 | 207 | |||||||||
Noncurrent deferred income tax liabilities | 956 | 977 | |||||||||
Total liabilities | 7,693 | 7,112 | |||||||||
SHAREOWNERS' EQUITY | |||||||||||
Common stock | 3 | 3 | |||||||||
Additional paid-in capital | 3,996 | 3,958 | |||||||||
Reinvested earnings | 2,133 | 1,991 | |||||||||
Accumulated other comprehensive loss | (807 | ) | (714 | ) | |||||||
Common stock in treasury, at cost | (4,312 | ) | (3,807 | ) | |||||||
Total shareowners' equity | 1,013 | 1,431 | |||||||||
Total liabilities and shareowners' equity | $ | 8,706 | $ | 8,543 | |||||||
COCA-COLA ENTERPRISES, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Unaudited; in millions) |
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First Six Months | |||||||||||
2015 | 2014 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 272 | $ | 313 | |||||||
Adjustments to reconcile net income to net cash derived from operating activities: | |||||||||||
Depreciation and amortization | 138 | 153 | |||||||||
Share-based compensation expense | 16 | 15 | |||||||||
Deferred income tax expense | 12 | 13 | |||||||||
Pension expense less than contributions | (5 | ) | (4 | ) | |||||||
Net changes in assets and liabilities | (72 | ) | (277 | ) | |||||||
Net cash derived from operating activities | 361 | 213 | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Capital asset investments | (183 | ) | (156 | ) | |||||||
Capital asset disposals | — | 26 | |||||||||
Other investing activities, net | (13 | ) | — | ||||||||
Net cash used in investing activities | (196 | ) | (130 | ) | |||||||
Cash Flows from Financing Activities: | |||||||||||
Net change in commercial paper | 143 | 412 | |||||||||
Issuances of debt | 527 | 347 | |||||||||
Payments on debt | (6 | ) | (108 | ) | |||||||
Shares repurchased under share repurchase programs | (507 | ) | (588 | ) | |||||||
Dividend payments on common stock | (130 | ) | (125 | ) | |||||||
Other financing activities, net | 16 | (7 | ) | ||||||||
Net cash derived from (used in) financing activities | 43 | (69 | ) | ||||||||
Net effect of currency exchange rate changes on cash and cash equivalents | (13 | ) | (1 | ) | |||||||
Net Change in Cash and Cash Equivalents | 195 | 13 | |||||||||
Cash and Cash Equivalents at Beginning of Period | 223 | 343 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 418 | $ | 356 | |||||||
COCA-COLA ENTERPRISES, INC. |
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RECONCILIATION OF GAAP TO NON-GAAP (a) |
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(Unaudited; in millions, except per share data which is calculated prior to rounding) |
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Second-Quarter 2015 | ||||||||||||||||||||
Cost of sales |
Selling, |
Operating |
Income tax |
Net income |
Diluted |
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Reported (GAAP) (b) | $1,223 |
$430 |
$275 |
$67 |
$176 | $0.75 | ||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||
Mark-to-market effects (c) | (12 | ) | 2 | 10 | 2 | 8 | 0.03 | |||||||||||||
Restructuring charges (d) | — | (4 | ) | 4 | 1 | 3 | 0.01 | |||||||||||||
Comparable (non-GAAP) | $1,211 |
$428 |
$289 |
$70 |
$187 | $0.79 | ||||||||||||||
Diluted Weighted Average Shares Outstanding | 235 | |||||||||||||||||||
Second-Quarter 2014 | ||||||||||||||||||||
Cost of sales |
Selling, |
Operating |
Income tax |
Net income |
Diluted |
|||||||||||||||
Reported (GAAP) (b) | $1,487 |
$551 |
$295 |
$68 |
$198 | $0.78 | ||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||
Mark-to-market effects (c) | 7 | 1 | (8 | ) | (3 | ) | (5 | ) | (0.02 | ) | ||||||||||
Restructuring charges (d) | — | (54 | ) | 54 | 18 | 36 | 0.14 | |||||||||||||
Comparable (non-GAAP) | $1,494 |
$498 |
$341 |
$83 |
$229 | $0.90 | ||||||||||||||
Diluted Weighted Average Shares Outstanding | 254 | |||||||||||||||||||
___________________________
(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 ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b) As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
(c) Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
(d) Amounts represent nonrecurring restructuring charges.
COCA-COLA ENTERPRISES, INC. |
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RECONCILIATION OF GAAP TO NON-GAAP (a) |
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(Unaudited; in millions, except per share data which is calculated prior to rounding) |
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First Six Months 2015 | ||||||||||||||||||||
Cost of sales |
Selling, |
Operating |
Income tax |
Net income |
Diluted |
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Reported (GAAP) (b) | $2,286 |
$840 |
$433 |
$101 |
$272 | $1.15 | ||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||
Mark-to-market effects (c) | (12 | ) | 4 | 8 | 2 | 6 | 0.02 | |||||||||||||
Restructuring charges (d) | — | (13 | ) | 13 | 3 | 10 | 0.04 | |||||||||||||
Comparable (non-GAAP) | $2,274 |
$831 |
$454 |
$106 |
$288 | $1.21 | ||||||||||||||
Diluted Weighted Average Shares Outstanding | 237 | |||||||||||||||||||
First Six Months 2014 | ||||||||||||||||||||
Cost of sales |
Selling, |
Operating |
Income tax |
Net income |
Diluted |
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Reported (GAAP) (b) | $2,707 |
$1,017 |
$479 |
$108 |
$313 | $1.22 | ||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||
Mark-to-market effects (c) | 6 | — | (6 | ) | (2 | ) | (4 | ) | (0.02 | ) | ||||||||||
Restructuring charges (d) | — | (62 | ) | 62 | 21 | 41 | 0.16 | |||||||||||||
Comparable (non-GAAP) | $2,713 |
$955 |
$535 |
$127 |
$350 | $1.36 | ||||||||||||||
Diluted Weighted Average Shares Outstanding | 257 | |||||||||||||||||||
___________________________
(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 ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b) As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
(c) Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
(d) Amounts represent nonrecurring restructuring charges.
COCA-COLA ENTERPRISES, INC. |
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RECONCILIATION OF GAAP TO NON-GAAP SEGMENT INCOME (a) |
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(Unaudited; in millions) |
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Second-Quarter 2015 | |||||||||||||||
Europe |
Corporate |
Operating income |
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Reported (GAAP) (b) | $ | 324 | $ | (49 | ) | $ | 275 | ||||||||
Items Impacting Comparability: | |||||||||||||||
Mark-to-market effects (c) | — | 10 | 10 | ||||||||||||
Restructuring charges (d) | 4 | — | 4 | ||||||||||||
Comparable (non-GAAP) | $ | 328 | $ | (39 | ) | $ | 289 | ||||||||
Second-Quarter 2014 | |||||||||||||||
Europe |
Corporate |
Operating income |
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Reported (GAAP) (b) | $ | 321 | $ | (26 | ) | $ | 295 | ||||||||
Items Impacting Comparability: | |||||||||||||||
Mark-to-market effects (c) | — | (8 |
) |
|
|
(8 | ) | ||||||||
Restructuring charges (d) | 54 | — | 54 | ||||||||||||
Comparable (non-GAAP) | $ | 375 | $ | (34 | ) | $ | 341 | ||||||||
First Six Months 2015 | |||||||||||||||
Europe | Corporate |
Operating income |
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Reported (GAAP) (b) | $ | 514 | $ | (81 | ) | $ | 433 | ||||||||
Items Impacting Comparability: | |||||||||||||||
Mark-to-Market Effects (c) | — | 8 | 8 | ||||||||||||
Restructuring Charges (d) | 13 | — | 13 | ||||||||||||
Comparable (non-GAAP) | $ | 527 | $ | (73 | ) | $ | 454 | ||||||||
First Six Months 2014 | |||||||||||||||
Europe | Corporate |
Operating income |
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Reported (GAAP) (b) | $ | 545 | $ | (66 |
) |
$ | 479 | ||||||||
Items Impacting Comparability: | |||||||||||||||
Mark-to-Market Effects (c) | — | (6 |
) |
|
|
(6 | ) | ||||||||
Restructuring Charges (d) | 62 | — | 62 | ||||||||||||
Comparable (non-GAAP) | $ | 607 | $ | (72 | ) | $ | 535 | ||||||||
___________________________
(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 ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b) As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
(c) Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
(d) Amounts represent nonrecurring restructuring charges.
COCA-COLA ENTERPRISES, INC. |
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CURRENCY IMPACT ON OPERATING MEASURES (a) |
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(Unaudited; percentages rounded to the nearest 0.5 percent) |
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% Change vs. Prior Year | ||||||||||||||||||||
GAAP (b) |
non-GAAP (c) |
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Second-Quarter 2015 |
Reported |
Currency |
Reported |
Comparable |
Currency |
Comparable |
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Net sales | (17.5 |
)% |
(15.5 | )% | (2.0 | )% | (17.5 | )% | (15.5 | )% | (2.0 | )% | ||||||||
Selling, delivery, and administrative expenses | (22.0 | ) | (14.0 | ) | (8.0 | ) | (14.0 | ) | (15.0 | ) | 1.0 | |||||||||
Operating income | (7.0 | ) | (19.5 | ) | 12.5 | (15.0 | ) | (17.0 | ) | 2.0 | ||||||||||
Diluted earnings per share | (4.0 | ) | (20.0 | ) | 16.0 | (12.0 | ) | (20.0 | ) | 8.0 | ||||||||||
Second-Quarter 2014 |
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Net sales | 8.0 | % | 5.5 | % | 2.5 | % | 8.0 | % | 5.5 | % | 2.5 | % | ||||||||
Selling, delivery, and administrative expenses | 14.5 | 5.0 | 9.5 | 11.5 | 5.5 | 6.0 | ||||||||||||||
Operating income | 8.5 | 7.5 | 1.0 | 8.5 | 6.5 | 2.0 | ||||||||||||||
Diluted earnings per share | 18.0 | 8.0 | 10.0 | 16.5 | 7.0 | 9.5 | ||||||||||||||
First Six Months 2015 |
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Net sales | (15.5 | )% | (16.0 | )% | 0.5 | % | (15.5 | )% | (16.0 | )% | 0.5 | % | ||||||||
Selling, delivery, and administrative expenses | (17.5 | ) | (14.0 | ) | (3.5 | ) | (13.0 | ) | (15.0 | ) | 2.0 | |||||||||
Operating income | (9.5 | ) | (20.0 | ) | 10.5 | (15.0 | ) | (18.0 | ) | 3.0 | ||||||||||
Diluted earnings per share | (6.0 | ) | (20.5 | ) | 14.5 | (11.0 | ) | (21.5 | ) | 10.5 | ||||||||||
First Six Months 2014 |
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Net sales | 5.0 | % | 4.5 | % | 0.5 | % | 5.0 | % | 4.5 | % | 0.5 | % | ||||||||
Selling, delivery, and administrative expenses | 1.5 | 4.0 | (2.5 | ) | 5.5 | 4.5 | 1.0 | |||||||||||||
Operating income | 25.0 | 8.5 | 16.5 | 8.0 | 6.0 | 2.0 | ||||||||||||||
Diluted earnings per share | 40.5 | 10.0 | 30.5 | 17.5 | 7.5 | 10.0 | ||||||||||||||
___________________________
(a) Currency impact is calculated by converting current year results at prior year exchange rates.
(b) Calculated based on CCE's U.S. GAAP Condensed Consolidated Financial Statements.
(c) 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 ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability. See the Reconciliation of GAAP to non-GAAP tables in this release for a list of all items impacting comparability.
COCA-COLA ENTERPRISES, INC. |
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RECONCILIATION OF NON-GAAP MEASURES |
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(Unaudited; in millions, except percentages which are rounded to the nearest 0.5 percent) |
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Second-Quarter | First Six Months | ||||||||||||||||||||
% Change vs. Prior Year | % Change vs. Prior Year | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Net Sales Per Case |
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Change in net sales per case | (16.5 | )% | 4.5 | % | (17.0 | )% | 4.5 | % | |||||||||||||
Impact of excluding post mix, non-trade, and other | — | 1.0 | (0.5 | ) | 0.5 | ||||||||||||||||
Impact of currency exchange rate changes | 15.5 | (5.5 | ) | 16.0 | (4.5 | ) | |||||||||||||||
Currency-Neutral Bottle and Can Net Pricing Per Case (a) | (1.0 | )% | — |
% |
(1.5 | )% | 0.5 | % | |||||||||||||
Cost of Sales Per Case |
|||||||||||||||||||||
Change in cost of sales per case | (17.0 | )% | 2.5 | % | (17.5 | )% | 3.0 | % | |||||||||||||
Impact of excluding post mix, non-trade, and other | (1.5 | ) | 1.5 | (1.0 | ) | 1.0 | |||||||||||||||
Impact of currency exchange rate changes | 15.5 | (5.0 | ) | 16.0 | (4.5 | ) | |||||||||||||||
Currency-Neutral Bottle and Can Cost of Sales Per Case (a) | (3.0 | )% | (1.0 | )% | (2.5 | )% | (0.5 | )% | |||||||||||||
Physical Case Bottle and Can Volume |
|||||||||||||||||||||
Change in volume | (1.0 | )% | 3.5 | % | 2.5 | % | 0.5 | % | |||||||||||||
Impact of selling day shift | — | — | (2.5 | ) | 0.5 | ||||||||||||||||
Comparable Bottle and Can Volume (b) | (1.0 | )% | 3.5 | % | — |
% |
1.0 | % | |||||||||||||
First Six Months | |||||||||||||||||||||
Reconciliation of Free Cash Flow (c) |
2015 | 2014 | |||||||||||||||||||
Net cash derived from operating activities | $ | 361 | $ | 213 | |||||||||||||||||
Less: capital asset investments |
(183 |
) |
(156 | ) | |||||||||||||||||
Add: capital asset disposals | — | 26 | |||||||||||||||||||
Free Cash Flow | $ | 178 | $ | 83 | |||||||||||||||||
July 3, | December 31, | ||||||||||||||||||||
Reconciliation of Net Debt (d) |
2015 | 2014 | |||||||||||||||||||
Current portion of debt | $ | 772 | $ | 632 | |||||||||||||||||
Debt, less current portion | 3,712 | 3,320 | |||||||||||||||||||
Less: cash and cash equivalents |
(418 |
) |
(223 | ) | |||||||||||||||||
Net Debt | $ | 4,066 | $ | 3,729 | |||||||||||||||||
___________________________
(a) 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 more clearly evaluate bottle and can pricing and cost trends in the marketplace. These measures exclude items not directly related to bottle and can pricing or cost and currency exchange rate changes.
(b) The non-GAAP measure "Comparable Bottle and Can Volume" is used to analyze the performance of our business on a constant period basis. There were the same number of selling days in the second quarter of 2015 versus the second quarter of 2014. There were four additional selling days in the first six months of 2015 versus the first six months of 2014.
(c) 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.
(d) The non-GAAP measure "Net Debt" is used to more clearly evaluate our capital structure and leverage.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150730005716/en/
Coca-Cola Enterprises, Inc.
Investor Relations
Thor
Erickson, +1-678-260-3110
or
Media Relations
Fred
Roselli, +1-678-260-3421
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