Molson Coors Reports Higher Net Sales and Lower Underlying After-Tax Income for the Fourth Quarter 2012
For Full Year, Molson Coors Reports Higher Net Sales and
Underlying After-Tax Income and $865 Million of Underlying Free Cash
Flow Generated
Molson Coors Brewing Company (NYSE: TAP)(TSX: TPX) today reported a 15.3
percent increase in fourth quarter worldwide beer volume and 9.9 percent
higher net sales in the fourth quarter of 2012 due to the addition of
Molson Coors Central Europe (MCCE) operations in 2012. Underlying
after-tax income declined 28.4 percent for the fourth quarter 2012,
driven by a higher underlying effective tax rate and the impact of
cycling strong quarterly results the year before. Net income from
continuing operations attributable to MCBC (a U.S. GAAP earnings
measure) decreased 65.1 percent due to the factors mentioned above, as
well as higher special charges and the impact of a 50 percent increase
in the Serbian statutory corporate income tax rate in the quarter.
Underlying after-tax income in 2012 increased 1.3 percent to $710.5
million, or $3.91 per diluted share, due to the addition of MCCE
operations on June 15, 2012. Full-year income from continuing operations
decreased 34.5 percent to $441.5 million due to costs associated with
the acquisition of MCCE. Underlying free cash flow increased to $864.7
million from $618.4 million a year ago, driven by an increase in
operating cash flow primarily due to the addition of Central Europe and
improvements in working capital.
Molson Coors president and chief executive officer Peter Swinburn said,
“In the fourth quarter, our worldwide volume and net sales increased due
to the addition of our Central Europe business, while underlying
after-tax income declined 28 percent, driven by a higher tax rate this
year and cycling strong quarterly results the year before, including an
additional week in our fiscal 2011 and some other one-time factors that
did not repeat.”
Swinburn added, “For the full year 2012, the biggest news was the
acquisition of our Central Europe business, which we expect to
strengthen our company, enhance our growth profile and increase
shareholder value in the years ahead. We have begun implementing plans
to capture synergies, leverage best practices and pay down debt related
to this new business. This acquisition helped our worldwide volume grow
by 14 percent, net sales by more than 11 percent, and underlying
earnings per share by 4 percent. Also, Molson Coors generated $865
million of underlying free cash flow, up nearly 40 percent from 2011.”
Foreign Exchange
The Company’s fourth quarter results include the impact of favorable
foreign currency movements from the British Pound and Canadian Dollar,
which increased underlying pretax income by approximately $5 million.
For the full year, foreign currency movements from the British Pound and
Canadian Dollar decreased underlying pretax income by approximately $9
million.
Effective Income Tax Rates
The Company’s fourth quarter effective income tax rate was 54 percent on
a reported basis and 18 percent on an underlying basis. The increase in
the quarterly reported rate was primarily due to an increase in the
Serbian statutory corporate income tax rate from 10 percent to 15
percent, effective January 1, 2013. As a result of differences between
the book and tax bases of intangible assets purchased in the Central
Europe acquisition, we increased our deferred tax liability by $38.3
million because of this tax rate change.
The Company’s full year 2012 effective tax rate was 26 percent on a
reported basis and 18 percent on an underlying basis. The Company
estimates that its underlying effective tax rate will be in the range of
16 percent to 20 percent for full year 2013, assuming no further changes
in tax laws.
Debt
Total debt at the end of the fourth quarter was $4.668 billion, and cash
and cash equivalents totaled $624 million, resulting in net debt of
$4.044 billion.
Fourth Quarter Business Segment Results
The following are the Company’s fourth quarter 2012 results by business
segment:
Canada Business
Canada underlying pretax income decreased 22.2 percent to $101.0 million
in the quarter. In local currency, underlying pretax income decreased 25
percent, driven by the impact of lower volume, a mix shift toward
higher-cost products, and higher pension expense, along with cycling an
extra week and approximately $10 million of positive one-time
adjustments in 2011. The 53rd week in fiscal 2011 provided an
estimated $12 million of underlying pre-tax profit in Canada in the
fourth quarter. A 3 percent increase in the Canadian dollar versus the
U.S. dollar drove an approximate $3 million positive impact in the
quarter.
Sales-to-retail (STRs) decreased 13 percent in the fourth quarter
primarily due to a weak Canadian market and cycling the 53rd
week in 2011. Excluding the 140,000 hectoliter impact of the 53rd
week, STRs declined 7 percent, driven partially by a more than 20
percent increase in Quebec beer excise tax rates in November and the
National Hockey League lockout, which ended in January. Our Canada
market share declined approximately one share point from a year ago on
an estimated industry volume decline of 5 percent, excluding the 53rd
week. Fourth quarter total sales volume in Canada for Molson Coors
decreased nearly 12 percent.
Net sales per hectoliter increased nearly 2 percent in local currency
driven by continued positive pricing.
Cost of goods sold (COGS) per hectoliter increased approximately 13
percent in local currency, driven by fixed-cost deleverage from lower
volumes, input inflation, higher pension expense, a mix shift toward
higher-cost packages and brands, and the impact of cycling positive
accounting and employee-related adjustments from 2011 that did not
repeat in 2012, partially offset by strong cost savings.
Marketing general and administrative (MG&A) expense decreased nearly 17
percent in local currency, resulting from lower marketing and sales
investments, partially related to fewer NHL opportunities, along with
the benefit of general and administrative savings initiatives.
United States Business (MillerCoors)(2)
Molson Coors underlying U.S. segment pretax income decreased 5.4 percent
to $80.9 million in the quarter.
MillerCoors Operating and Financial Highlights
MillerCoors underlying net income for the quarter, excluding special
items, decreased 4.2 percent to $185.8 million, driven by increased
marketing investment.
MillerCoors domestic STRs declined 1.1 percent, on a
trading-day-adjusted basis. Domestic sales-to-wholesalers (STWs)
decreased 1.3 percent.
Domestic net revenue per hectoliter, which excludes contract brewing and
company-owned-distributor sales, grew 2.9 percent primarily due to
strong net pricing and favorable mix. Total company net revenue per
hectoliter, including contract brewing and company-owned distributor
sales, increased by 2.9 percent. Third-party contract brewing volumes
were down 0.4 percent.
COGS per hectoliter increased 1.6 percent driven by commodity inflation
and packaging innovation, partially offset by cost savings.
MG&A expense increased 6.4 percent, driven primarily by increased
marketing investments.
Depreciation and amortization expenses for MillerCoors in the fourth
quarter were $70.3 million, and additions to tangible and intangible
assets totaled $178.5 million.
Central Europe Business – Pro Forma (3)
Central Europe underlying pretax income decreased 12.2 percent to $12.9
million in the quarter. In local currency, underlying pretax income
decreased 5 percent, driven primarily by the volume impact of
year-on-year destocking of distributor inventories in Serbia and
Romania. Unfavorable foreign currency movements reduced earnings
approximately $1 million versus the pro forma quarter a year earlier.
Central Europe sales volume decreased 5 percent driven almost
exclusively by the inventory destocking and a focus on maintaining price
growth in all markets. Overall regional market share declined slightly
in the fourth quarter as the company decided not to participate in the
low-margin value segment in Romania and maintained margins in Hungary.
Net sales per hectoliter increased 2 percent in local currency due to
strong revenue management driving positive net pricing, along with
value-enhancing innovations.
COGS per hectoliter increased nearly 4 percent in local currency, driven
by input cost inflation, particularly grains.
MG&A expenses decreased approximately 1 percent in local currency, due
to ongoing focus on overhead cost management.
United Kingdom Business
U.K. underlying pretax income decreased 35.1 percent to $22.6 million in
the quarter, due to lower volume and higher input inflation and pension
expense, partly offset by positive brand and channel mix, the benefit of
cost saving initiatives and lower marketing expense. These results
reflect no significant impact from foreign currency movements.
U.K. STRs decreased 19 percent due to a weak U.K. market, a strong
fourth quarter performance in 2011 and cycling the 53rd week
in 2011. Excluding the 165,000 hectoliter impact of the 53rd
week, STRs declined approximately 14 percent.
Net sales per hectoliter increased 14 percent in local currency, driven
by favorable brand mix, higher on-premise pricing, and mix shift toward
factored (non-owned) products, partially offset by lower off-premise
pricing.
COGS per hectoliter increased nearly 22 percent in local currency,
driven by brand mix, input inflation, fixed-cost deleverage from lower
volumes, and mix shift toward factored products, partially offset by
cost savings initiatives.
MG&A expenses decreased 16 percent in local currency, due to cost saving
initiatives and cycling higher marketing expense and the 53rd
week in the fourth quarter of 2011.
International Business (4)
The International segment posted underlying pretax income of $0.3
million in the fourth quarter, up from a $7.5 million loss a year ago
due to improved performance in Japan, the inclusion of Central Europe
global export and license business results, overhead cost reductions,
and the elimination of losses in our China joint venture, which was
deconsolidated in the third quarter. The Central Europe global export
and license business contributed underlying pretax income of $2.7
million in the fourth quarter.
International STRs increased 45 percent due to the addition of the
Central Europe global export and license business. Net sales per
hectoliter increased nearly 8 percent, driven by mix shift to higher
revenue-per-hectoliter geographies and brands. Cost of goods per
hectoliter decreased nearly 14 percent due to brand mix and the addition
of Central Europe export volume. International MG&A expense decreased 17
percent.
Corporate
Underlying Corporate pretax expenses totaled $63.8 million for the
fourth quarter. This $11.5 million increase was due to $20.1 million of
higher net interest expense related to financing our Central Europe
acquisition this year, partially offset by lower employee compensation
and project expense. Foreign currency movements favorably impacted
Corporate underlying pre-tax results by approximately $2 million in the
quarter.
Special and Other Non-Core Items
The following special and other non-core items have been excluded from
underlying pretax earnings.
During the quarter, Molson Coors special items resulted in a $22.8
million pretax charge driven by $19.7 million of restructuring charges
in Canada, the U.K., Central Europe, International and Corporate, and
$2.8 million of other employee-related charges.
Other non-core items resulted in a $3.9 million pretax gain, which was
due to a $3.6 million unrealized mark-to-market gain primarily related
to fair value and foreign exchange adjustments to our EUR 500 million
convertible note, along with a $4.9 million net gain driven by the sale
of water-rights . These non-core gains were partially offset by $4.6
million of MCCE acquisition and integration related costs. In addition,
the Company recognized a $38.3 million non-core charge for the tax
effect of a Serbia statutory corporate income tax rate increase.
During the quarter, MillerCoors reported a $15.4 million write-off of
information systems assets related to the Business Transformation
project. This equates to $6.5 million at Molson Coors’ 42 percent
economic ownership share.
2012 Fourth Quarter and Year-End Earnings
Conference Call
Molson Coors Brewing Company will conduct an earnings conference call
with financial analysts and investors at 11:00 a.m. Eastern Time today
to discuss the Company’s 2012 fourth quarter and full year results. The
Company will provide a live webcast of the earnings call.
The Company will also host an online, real-time webcast of an Investor
Relations Follow-up Session with financial analysts and institutional
investors at 2:00 p.m. Eastern Time. Both webcasts will be accessible
via the Company’s website, www.molsoncoors.com.
Online replays of the webcasts will be available until 11:59 p.m.
Eastern Time on May 7, 2013. The Company will post this release and
related financial statements on its website today.
Footnotes:
(1) The Company calculates non-GAAP underlying after-tax
income and underlying free cash flow by excluding special and other
non-core items from the nearest U.S. GAAP performance measures, which
are net income from continuing operations attributable to MCBC and net
cash provided by operating activities, respectively. For further details
regarding these adjustments, please see the section “Special and Other
Non-Core Items,” along with tables for reconciliations to the nearest
U.S. GAAP measures. Unless otherwise indicated, all $ amounts are in
U.S. Dollars and all quarterly comparative results are for the Company’s
fiscal fourth quarter ended December 29, 2012, compared to the fiscal
fourth quarter ended December 31, 2011. Additionally, all per-hectoliter
calculations exclude contract brewing and non-owned factored beverage
volume in the denominator but include the financial impact of these
sales in the numerator, unless otherwise indicated.
(2) MillerCoors, a U.S. joint venture of Molson Coors Brewing
Company and SABMiller plc, was launched on July 1, 2008. Molson Coors
has a 42 percent economic interest in MillerCoors, which is accounted
for using the equity method. Molson Coors’ interest in MillerCoors
results, along with certain adjustments under U.S. GAAP, is reflected in
“Equity Income in MillerCoors.” This release includes reconciliation
from MillerCoors Net Income to Molson Coors Brewing Company Equity
Income in MillerCoors and Non-GAAP U.S. Segment Underlying Pretax Income
(see Table 6).
(3) Unless otherwise indicated, all $ amounts are in U.S.
Dollars, and quarterly comparative results are for MCCE’s actual fiscal
fourth quarter ended December 31, 2012, compared to the pro forma fiscal
fourth quarter ended December 31, 2011. The pro forma statements of
operations include adjustments directly attributable to the acquisition
of StarBev. Pro forma amounts include the results of operations for
Central Europe, excluding the Central Europe global export and license
business, for the periods indicated on each statement. These amounts
also include pro forma adjustments as if MCCE had been acquired on
December 26, 2010, the first day of our 2011 fiscal year, including the
effects of on-going acquisition accounting impacts and eliminating
operating costs and expenses directly related to the transaction, but do
not include adjustments for costs related to integration activities
following the completion of the Acquisition, cost savings or synergies
that have been or may be achieved by the combined businesses. Pro forma
amounts are not necessarily indicative of what the results would have
been had we operated the businesses since December 26, 2010, and do not
purport to be indicative of future operating results.
(4) Beginning July 1, 2012, our Central Europe export and
license business (“Central Europe export”), is reported in our MCI
segment. For periods prior to this date, this business was included with
the Central Europe business, which we acquired on June 15, 2012.
Overview of Molson Coors
Molson Coors Brewing Company is one of the world’s largest brewers. The
Company’s operating segments include Canada, the United States, Central
Europe, the United Kingdom, and Molson Coors International (MCI). The
Company has a diverse portfolio of owned and partner brands, including
signature brands Coors Light, Molson Canadian, Staropramen and Carling.
Molson Coors is listed as the beverage industry sector leader on the
2012/2013 Dow Jones Sustainability World Index (W1SGITRD), the most
recognized global benchmark of sustainability among global corporations.
For more information on Molson Coors Brewing Company, visit the
company’s web site, www.molsoncoors.com.
Forward-Looking Statements
This press release includes estimates or projections that constitute
“forward-looking statements” within the meaning of the U.S. federal
securities laws. Generally, the words “believe,” expect,”
intend,” anticipate,” “project,” “will,” and similar expressions
identify forward-looking statements, which generally are not historic in
nature. Although the Company believes that the assumptions upon
which its forward-looking statements are based are reasonable, it can
give no assurance that these assumptions will prove to be correct.
Important factors that could cause actual results to differ materially
from the Company’s historical experience, and present projections and
expectations are disclosed in the Company’s filings with the Securities
and Exchange Commission (“SEC”). These factors include, among
others, our ability to successfully integrate StarBev, retain key
employees and achieve planned cost synergies; pension plan costs;
availability or increase in the cost of packaging materials; our ability
to maintain manufacturer/distribution agreements; impact of competitive
pricing and product pressures; our ability to implement our strategic
initiatives, including executing and realizing cost savings; changes in
legal and regulatory requirements, including the regulation of
distribution systems; increase in the cost of commodities used in the
business; our ability to maintain brand image, reputation and product
quality; our ability to maintain good labor relations; changes in our
supply chain system; additional impairment charges; the impact of
climate change and the availability and quality of water; the ability of
MillerCoors to integrate operations and technologies; lack of
full-control over the operations of MillerCoors; the ability of
MillerCoors to maintain good relationships with its distributors; and
other risks discussed in our filings with the SEC, including our Annual
Report on Form 10-K for the year-ended December 31, 2011, which are
available from the SEC. All forward-looking statements in this
press release are expressly qualified by such cautionary statements and
by reference to the underlying assumptions. You should not place undue
reliance on forward-looking statements, which speak only as of the date
they are made. We do not undertake to update forward-looking
statements, whether as a result of new information, future events or
otherwise.
Reconciliations to Nearest U.S. GAAP Measure
|
Molson Coors Brewing Company
|
|
|
|
|
|
|
|
|
Table 1: 2012 Fourth Quarter Underlying After-Tax
Income
|
|
|
|
|
|
|
|
|
(After-Tax Income From Continuing Operations, Excluding Special
and Other Non-Core Items)
|
|
|
($ In Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
4th Q
|
|
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
|
U.S. GAAP: Income from
continuing operations attributable to MCBC, net of tax:
|
|
|
|
60.1
|
|
|
|
|
172.4
|
|
|
|
Per diluted share:
|
|
|
$
|
0.33
|
|
|
|
$
|
0.95
|
|
|
|
Add back/(less):
|
|
|
|
|
|
|
|
|
Pretax special items - net
|
|
|
|
22.8
|
|
|
|
|
1.2
|
|
|
|
Proportionate share of MillerCoors special items - net(1) |
|
|
|
6.5
|
|
|
|
|
-
|
|
|
|
Acquisition and integration costs(2) |
|
|
|
4.6
|
|
|
|
|
-
|
|
|
|
Unrealized mark-to-market (gains) and losses(3) |
|
|
|
(3.6
|
)
|
|
|
|
1.6
|
|
|
|
Other non-core items(4) |
|
|
|
(4.9
|
)
|
|
|
|
5.8
|
|
|
|
Tax effect of Serbia statutory tax rate increase(5) |
|
|
|
38.3
|
|
|
|
|
-
|
|
|
|
Tax effects related to special and other non-core items
|
|
|
|
2.3
|
|
|
|
|
(5.0
|
)
|
|
|
Non-GAAP: Underlying
after-tax income:
|
|
|
|
126.1
|
|
|
|
|
176.0
|
|
|
|
Per diluted share:
|
|
|
$
|
0.69
|
|
|
|
$
|
0.97
|
|
|
|
Notes:
|
|
|
(1) Included in Equity Income in MillerCoors, but
excluded from non-GAAP underlying pretax income
|
|
(2) Included in Marketing, General and Administrative
Expenses
|
|
|
(3) $0.3 million gain for Q4 2012 and $1.6 million loss
for Q4 2011 included in Cost of Goods Sold. $18.0 million loss for
Q4 2012 included in Other Income (Expense), net and $21.3 million
gain for Q4 2012 included in Interest Expense
|
|
(4) Included in Other Income (Expense), net
|
|
|
(5) Included in Income Tax Benefit (Expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2: 2012 Fourth Quarter Underlying Pretax
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Pretax Income From Continuing Operations, Excluding Special and
Other Non-Core Items)
|
|
|
|
|
|
|
|
|
($ In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
|
Total
|
|
|
|
|
|
Canada
|
|
|
U.S.
|
|
|
U.K.
|
|
|
Central
Europe
|
|
|
MCI
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
U.S. GAAP: 2012 4th Q
Income (loss) from continuing operations before income taxes
|
|
|
$
|
92.2
|
|
|
|
$
|
74.4
|
|
|
|
$
|
13.5
|
|
|
|
$
|
9.8
|
|
|
$
|
(1.8
|
)
|
|
|
$
|
(59.6
|
)
|
|
|
$
|
128.5
|
|
|
|
Add back/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax special items - net
|
|
|
|
8.8
|
|
|
|
|
-
|
|
|
|
|
9.1
|
|
|
|
|
1.9
|
|
|
|
2.1
|
|
|
|
|
0.9
|
|
|
|
|
22.8
|
|
|
|
Proportionate share of MillerCoors pretax special items - net(1) |
|
|
|
-
|
|
|
|
|
6.5
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
6.5
|
|
|
|
Acquisition and integration costs(2) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1.2
|
|
|
|
-
|
|
|
|
|
3.4
|
|
|
|
|
4.6
|
|
|
|
Unrealized mark-to-market (gains) and losses(3) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(3.6
|
)
|
|
|
|
(3.6
|
)
|
|
|
Other non-core items(4) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(4.9
|
)
|
|
|
|
(4.9
|
)
|
|
|
Non-GAAP: 2012 4th Q
underlying pretax income (loss)
|
|
|
$
|
101.0
|
|
|
|
$
|
80.9
|
|
|
|
$
|
22.6
|
|
|
|
$
|
12.9
|
|
|
$
|
0.3
|
|
|
|
$
|
(63.8
|
)
|
|
|
$
|
153.9
|
|
|
|
Percent change 2012 4th Q vs. 2011 4th Q underlying pretax income
(loss)
|
|
|
|
(22.2
|
%)
|
|
|
|
(5.4
|
%)
|
|
|
|
(35.1
|
%)
|
|
|
|
N/A
|
|
|
|
104.0
|
%
|
|
|
|
(22.0
|
%)
|
|
|
|
(19.2
|
%)
|
|
|
U.S. GAAP: 2011 4th Q
Income (loss) from continuing operations before income taxes
|
|
|
$
|
128.9
|
|
|
|
$
|
85.5
|
|
|
|
$
|
34.9
|
|
|
|
$
|
-
|
|
|
$
|
(7.8
|
)
|
|
|
$
|
(59.7
|
)
|
|
|
$
|
181.8
|
|
|
|
Add back/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax special items - net
|
|
|
|
1.0
|
|
|
|
|
-
|
|
|
|
|
(0.1
|
)
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
|
-
|
|
|
|
|
1.2
|
|
|
|
Unrealized mark-to-market (gains) and losses(3) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1.6
|
|
|
|
|
1.6
|
|
|
|
Other non-core items(4) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
5.8
|
|
|
|
|
5.8
|
|
|
|
Non-GAAP: 2011 4th Q
underlying pretax income (loss)
|
|
|
$
|
129.9
|
|
|
|
$
|
85.5
|
|
|
|
$
|
34.8
|
|
|
|
$
|
-
|
|
|
$
|
(7.5
|
)
|
|
|
$
|
(52.3
|
)
|
|
|
$
|
190.4
|
|
|
|
Notes:
|
|
|
(1) Included in Equity Income in MillerCoors, but
excluded from non-GAAP underlying pretax income
|
|
(2) Included in Marketing, General and Administrative
Expenses
|
|
(3) $0.3 million gain for Q4 2012 and $1.6 million loss
for Q4 2011 included in Cost of Goods Sold. $18.0 million loss for
Q4 2012 included in Other Income (Expense), net and $21.3 million
gain for Q4 2012 included in Interest Expense
|
|
(4) Included in Other Income (Expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3: Underlying Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Net Income Attributable to MillerCoors, Excluding Special Items)
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
December 31, 2012
|
|
|
December 31, 2011
|
|
|
December 31, 2012
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP - Net income attributable to MillerCoors:
|
|
|
$
|
170.4
|
|
|
$
|
194.0
|
|
|
$
|
1,190.9
|
|
|
$
|
1,003.8
|
|
|
|
Add back: Special items, net
|
|
|
|
15.4
|
|
|
|
-
|
|
|
|
31.8
|
|
|
|
113.4
|
|
|
|
Less: Tax effect of adjustments to arrive at underlying
after-tax income
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.4
|
)
|
|
|
Non-GAAP - Underlying net income:
|
|
|
$
|
185.8
|
|
|
$
|
194.0
|
|
|
$
|
1,222.7
|
|
|
$
|
1,116.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company
|
|
|
|
|
|
|
|
Table 4: 2012 Full Year Underlying After-Tax Income
|
|
|
|
|
|
|
|
(After-Tax Income From Continuing Operations, Excluding Special
and Other Non-Core Items)
|
|
|
|
|
($ In Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 Full Year
|
|
|
2011 Full Year
|
|
U.S. GAAP: Income from
continuing operations attributable to MCBC, net of tax:
|
|
|
|
441.5
|
|
|
|
|
674.0
|
|
|
Per diluted share:
|
|
|
$
|
2.43
|
|
|
|
$
|
3.62
|
|
|
Add back/(less):
|
|
|
|
|
|
|
|
Pretax special items - net
|
|
|
|
81.4
|
|
|
|
|
12.3
|
|
|
Proportionate share of MillerCoors special items - net(1) |
|
|
|
13.4
|
|
|
|
|
47.4
|
|
|
Acquisition and integration costs(2) |
|
|
|
170.5
|
|
|
|
|
-
|
|
|
Unrealized mark-to-market (gains) and losses(3) |
|
|
|
12.8
|
|
|
|
|
4.6
|
|
|
Basis amortization related to the Sparks brand impairment(1) |
|
|
|
-
|
|
|
|
|
(25.2
|
)
|
|
Other non-core items(4) |
|
|
|
(5.0
|
)
|
|
|
|
7.6
|
|
|
Tax effect of Serbia statutory tax rate increase(5) |
|
|
|
38.3
|
|
|
|
|
-
|
|
|
Noncontrolling interest effect on special items
|
|
|
|
(5.1
|
)
|
|
|
|
-
|
|
|
Tax effects related to special and other non-core items
|
|
|
|
(37.3
|
)
|
|
|
|
(19.2
|
)
|
|
Non-GAAP: Underlying
after-tax income:
|
|
|
|
710.5
|
|
|
|
|
701.5
|
|
|
Per diluted share:
|
|
|
$
|
3.91
|
|
|
|
$
|
3.76
|
|
|
Notes:
|
|
|
(1) Included in Equity Income in MillerCoors, but
excluded from non-GAAP underlying pretax income
|
|
(2) $8.6 million included in Cost of Goods Sold, $40.2
million included in Marketing, General and Administrative Expenses,
$50.8 million included in Interest Expense and $70.9 million
included in Other Income (Expense), net
|
|
(3) $3.0 million gain for full year 2012 and $4.6
million loss for full year 2011 included in Cost of Goods Sold.
$23.8 million loss for full year 2012 included in Other Income
(Expense), net and $8.0 million gain for full year 2012 included
in Interest Expense
|
|
(4) $0.3 million gain for full year 2012 and $1.1
million loss for full year 2011 included in Cost of Goods Sold,
$0.1 million loss for full year 2012 and $1.4 million gain for
full year 2011 included in Marketing, General, and Administrative
Expense, and $4.8 million gain for full year 2012 and $5.1 million
loss for full year 2011 included in Other Income (Expense), net
|
|
(5) Included in Income Tax Benefit (Expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5: 2012 Full Year Underlying Pretax Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Pretax Income From Continuing Operations, Excluding Special and
Other Non-Core Items)
|
|
|
|
|
|
($ In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
|
Total
|
|
|
|
|
|
Canada
|
|
|
U.S.
|
|
|
U.K.
|
|
|
Central
Europe
|
|
|
MCI
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
U.S. GAAP: 2012 Full
Year Income (loss) from continuing operations before income taxes
|
|
|
$
|
423.0
|
|
|
|
$
|
510.9
|
|
|
|
$
|
38.8
|
|
|
|
$
|
97.4
|
|
|
$
|
(72.1
|
)
|
|
|
$
|
(405.9
|
)
|
|
|
$
|
592.1
|
|
|
|
Add back/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax special items - net
|
|
|
|
13.7
|
|
|
|
|
-
|
|
|
|
|
21.5
|
|
|
|
|
2.0
|
|
|
|
42.2
|
|
|
|
|
2.0
|
|
|
|
|
81.4
|
|
|
|
Proportionate share of MillerCoors pretax special items - net(1) |
|
|
|
-
|
|
|
|
|
13.4
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
13.4
|
|
|
|
Acquisition and integration costs(2) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
13.0
|
|
|
|
-
|
|
|
|
|
157.5
|
|
|
|
|
170.5
|
|
|
|
Unrealized mark-to-market (gains) and losses(3) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
12.8
|
|
|
|
|
12.8
|
|
|
|
Other non-core items(4) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.7
|
)
|
|
|
|
-
|
|
|
|
0.5
|
|
|
|
|
(4.8
|
)
|
|
|
|
(5.0
|
)
|
|
|
Non-GAAP: 2012 Full
Year underlying pretax income (loss)
|
|
|
$
|
436.7
|
|
|
|
$
|
524.3
|
|
|
|
$
|
59.6
|
|
|
|
$
|
112.4
|
|
|
$
|
(29.4
|
)
|
|
|
$
|
(238.4
|
)
|
|
|
$
|
865.2
|
|
|
|
Percent change 2012 vs. 2011 Full Year underlying pretax income
(loss)
|
|
|
|
(10.2
|
%)
|
|
|
|
9.2
|
%
|
|
|
|
(41.3
|
%)
|
|
|
|
N/A
|
|
|
|
9.0
|
%
|
|
|
|
(10.9
|
%)
|
|
|
|
5.4
|
%
|
|
|
U.S. GAAP: 2011 Full
Year Income (loss) from continuing operations before income taxes
|
|
|
$
|
474.9
|
|
|
|
$
|
457.9
|
|
|
|
$
|
99.3
|
|
|
|
$
|
-
|
|
|
$
|
(33.3
|
)
|
|
|
$
|
(224.6
|
)
|
|
|
$
|
774.2
|
|
|
|
Add back/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax special items - net
|
|
|
|
11.6
|
|
|
|
|
-
|
|
|
|
|
(0.3
|
)
|
|
|
|
-
|
|
|
|
1.0
|
|
|
|
|
-
|
|
|
|
|
12.3
|
|
|
|
Proportionate share of MillerCoors pretax special items - net(1) |
|
|
|
-
|
|
|
|
|
47.4
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
47.4
|
|
|
|
Basis amortization related to the Sparks brand impairment(1) |
|
|
|
-
|
|
|
|
|
(25.2
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(25.2
|
)
|
|
|
Unrealized mark-to-market (gains) and losses(3) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
4.6
|
|
|
|
|
4.6
|
|
|
|
Other non-core items(4) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2.5
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
5.1
|
|
|
|
|
7.6
|
|
|
|
Non-GAAP: 2011 Full
Year underlying pretax income (loss)
|
|
|
$
|
486.5
|
|
|
|
$
|
480.1
|
|
|
|
$
|
101.5
|
|
|
|
$
|
-
|
|
|
$
|
(32.3
|
)
|
|
|
$
|
(214.9
|
)
|
|
|
$
|
820.9
|
|
|
|
Notes:
|
|
|
(1) Included in Equity Income in MillerCoors, but
excluded from non-GAAP underlying pretax income
|
|
(2) $8.6 million included in Cost of Goods Sold, $40.2
million included in Marketing, General and Administrative Expenses,
$50.8 million included in Interest Expense and $70.9 million
included in Other Income (Expense), net
|
|
(3) $3.0 million gain for full year 2012 and $4.6
million loss for full year 2011 included in Cost of Goods Sold.
$23.8 million loss for full year 2012 included in Other Income
(Expense), net and $8.0 million gain for full year 2012 included
in Interest Expense
|
|
(4) $0.3 million gain for full year 2012 and $1.1
million loss for full year 2011 included in Cost of Goods Sold,
$0.1 million loss for full year 2012 and $1.4 million gain for
full year 2011 included in Marketing, General, and Administrative
Expense, and $4.8 million gain for full year 2012 and $5.1 million
loss for full year 2011 included in Other Income (Expense), net
|
|
|
Pretax and after-tax underlying income and underlying free cash flow
should be viewed as supplements to, not substitutes for, our results of
operations and cash flow presented on the basis of accounting principles
generally accepted in the United States. Our management uses underlying
income and underlying free cash flow as measures of operating
performance to assist in comparing performance from period to period on
a consistent basis; as measures for planning and forecasting overall
expectations and for evaluating actual results against such
expectations; and in communications with the board of directors,
stockholders, analysts and investors concerning our financial
performance. We believe that underlying income and underlying free cash
flow performance are used by and are useful to investors and other users
of our financial statements in evaluating our operating and cash
performance because they provide them with additional tools to evaluate
our performance without regard to special and other non-core items,
which can vary substantially from company to company depending
upon accounting methods and book value of assets and capital structure.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6: Reconciliation of Net Income Attributable
to MillerCoors to MCBC U.S. Segment Underlying Pretax Income
(Excluding Special Items)
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
|
Fourteen Weeks Ended
|
|
|
Fifty-Two Weeks Ended
|
|
|
Fifty-Three Weeks Ended
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
|
Net Income Attributable to MillerCoors
|
|
|
$
|
170.4
|
|
|
|
$
|
194.0
|
|
|
|
$
|
1,190.9
|
|
|
|
$
|
1,003.8
|
|
|
|
|
Multiply: MCBC economic interest % in MillerCoors
|
|
|
|
42
|
%
|
|
|
|
42
|
%
|
|
|
|
42
|
%
|
|
|
|
42
|
%
|
|
|
|
MCBC proportionate share of MillerCoors net income
|
|
|
$
|
71.6
|
|
|
|
$
|
81.5
|
|
|
|
$
|
500.2
|
|
|
|
$
|
421.6
|
|
|
|
|
Add: Amortization of the difference between MCBC contributed
cost basis and the underlying equity in net assets of MillerCoors (1) |
|
|
|
1.8
|
|
|
|
|
2.8
|
|
|
|
|
4.9
|
|
|
|
|
35.4
|
|
|
|
|
Add: Share-based compensation adjustment (2) |
|
|
|
1.0
|
|
|
|
|
1.2
|
|
|
|
|
5.8
|
|
|
|
|
0.9
|
|
|
|
|
MCBC Equity Income in MillerCoors (U.S. GAAP)
|
|
|
$
|
74.4
|
|
|
|
$
|
85.5
|
|
|
|
$
|
510.9
|
|
|
|
$
|
457.9
|
|
|
|
|
Add: Proportionate share of MillerCoors special items (3) |
|
|
|
6.5
|
|
|
|
|
0.0
|
|
|
|
|
13.4
|
|
|
|
|
47.6
|
|
|
|
|
(Less): Basis amortization associated with Sparks brand
impairment (1) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(25.2
|
)
|
|
|
|
(Less): Tax effect on special items (4) |
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.2
|
)
|
|
|
|
MCBC U.S. Segment Underlying Pretax Income (Non-GAAP)
|
|
|
$
|
80.9
|
|
|
|
$
|
85.5
|
|
|
|
$
|
524.3
|
|
|
|
$
|
480.1
|
|
|
|
Notes:
|
|
|
(1) Our net investment in MillerCoors is based on the
carrying values of the net assets contributed to the joint venture
which is less than our proportional share of underlying equity (42%)
of MillerCoors (contributed by both Coors Brewing Company and Miller
Brewing Company) by approximately $576 million as of December 29,
2012. This difference, with the exception of goodwill and land, is
being amortized as additional equity income over the remaining
useful lives of the contributed long-lived amortizing assets.
|
|
(2) The net adjustment is to record 100% of share-based
compensation associated with pre-existing equity awards to be
settled in MCBC Class B common stock held by former CBC employees
now employed by MillerCoors and to eliminate all share-based
compensation impacts related to pre-existing SABMiller plc equity
awards held by former Miller Brewing Company employees now employed
by MillerCoors. As of the end of the second quarter of 2011, the
share-based awards granted to former CBC employees now employed by
MillerCoors became fully vested, as such; no further adjustments
will be recorded related to these awards. We are still recording
adjustments to eliminate the impacts related to the pre-existing SAB
Miller plc equity awards, which represent the amounts recorded in
2012.
|
|
(3) MillerCoors special items were net charges of $15.4
million and $31.8 million for Q4 2012 and full year 2012,
respectively, and net charges of zero and $113.4 million for Q4 2011
and full year 2011, respectively. MCBC's proportionate share equals
42% of these net special charges.
|
|
(4) The tax effect of adjustments to arrive at underlying
after-tax income attributable to MillerCoors, a non-GAAP measure, is
calculated based on the estimated tax rate applicable to the item(s)
being adjusted in the period in which they arose.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 7: 2012 4th Quarter Worldwide Beer Volume
|
|
|
|
|
|
|
|
|
|
(In Millions of Hectoliters)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
|
Fourteen Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Volume:
|
|
|
6.897
|
|
|
5.253
|
|
|
|
31.3%
|
|
|
|
Royalty Volume:
|
|
|
0.344
|
|
|
0.151
|
|
|
|
127.8%
|
|
|
Owned Volume:
|
|
|
7.241
|
|
|
5.404
|
|
|
|
34.0%
|
|
|
|
Proportionate Share of Equity Investment Sales-to-Retail(1):
|
|
|
6.823
|
|
|
6.798
|
|
|
|
0.4%
|
|
|
Total Worldwide Beer Volume:
|
|
|
14.064
|
|
|
12.202
|
|
|
|
15.3%
|
|
|
Notes:
|
|
|
(1) Reflects the addition of Molson Coors Brewing
Company's proportionate share of equity method investments
(MillerCoors and Modelo Molson) sales-to-retail for the periods
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company
|
|
|
|
|
|
|
|
|
|
|
Table 8: 2012 Full Year Worldwide Beer Volume
|
|
|
|
|
|
|
|
(In Millions of Hectoliters)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-Two Weeks Ended
|
|
|
Fifty-Three Weeks Ended
|
|
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Volume:
|
|
|
25.343
|
|
|
18.861
|
|
|
34.4
|
%
|
|
|
Royalty Volume:
|
|
|
1.064
|
|
|
0.451
|
|
|
135.9
|
%
|
|
Owned Volume:
|
|
|
26.407
|
|
|
19.312
|
|
|
36.7
|
%
|
|
|
Proportionate Share of Equity Investment Sales-to-Retail(1):
|
|
|
28.652
|
|
|
29.046
|
|
|
(1.4
|
%)
|
|
Total Worldwide Beer Volume:
|
|
|
55.059
|
|
|
48.358
|
|
|
13.9
|
%
|
|
Notes:
|
|
|
(1) Reflects the addition of Molson Coors Brewing
Company's proportionate share of equity method investments
(MillerCoors and Modelo Molson) sales-to-retail for the periods
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9: Condensed Consolidated Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Fourteen Weeks
Ended
|
|
|
Fifty-Two Weeks
Ended
|
|
|
Fifty-Three Weeks
Ended
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters
|
|
|
|
6.897
|
|
|
|
|
5.253
|
|
|
|
|
25.343
|
|
|
|
|
18.861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
1,480.2
|
|
|
|
$
|
1,395.6
|
|
|
|
$
|
5,615.0
|
|
|
|
$
|
5,169.9
|
|
|
|
Excise taxes
|
|
|
|
(450.0
|
)
|
|
|
|
(458.3
|
)
|
|
|
|
(1,698.5
|
)
|
|
|
|
(1,654.2
|
)
|
|
|
|
Net sales
|
|
|
|
1,030.2
|
|
|
|
|
937.3
|
|
|
|
|
3,916.5
|
|
|
|
|
3,515.7
|
|
|
|
Cost of goods sold
|
|
|
|
(646.6
|
)
|
|
|
|
(547.5
|
)
|
|
|
|
(2,352.5
|
)
|
|
|
|
(2,049.1
|
)
|
|
|
|
Gross profit
|
|
|
|
383.6
|
|
|
|
|
389.8
|
|
|
|
|
1,564.0
|
|
|
|
|
1,466.6
|
|
|
|
Marketing, general and administrative expenses
|
|
|
|
(272.5
|
)
|
|
|
|
(259.9
|
)
|
|
|
|
(1,126.1
|
)
|
|
|
|
(1,019.0
|
)
|
|
|
Special items, net
|
|
|
|
(22.8
|
)
|
|
|
|
(1.2
|
)
|
|
|
|
(81.4
|
)
|
|
|
|
(12.3
|
)
|
|
|
Equity income in MillerCoors
|
|
|
|
74.4
|
|
|
|
|
85.5
|
|
|
|
|
510.9
|
|
|
|
|
457.9
|
|
|
|
|
Operating income (loss)
|
|
|
|
162.7
|
|
|
|
|
214.2
|
|
|
|
|
867.4
|
|
|
|
|
893.2
|
|
|
|
Interest income (expense), net
|
|
|
|
(22.2
|
)
|
|
|
|
(26.2
|
)
|
|
|
|
(185.0
|
)
|
|
|
|
(108.0
|
)
|
|
|
Other income (expense), net
|
|
|
|
(12.0
|
)
|
|
|
|
(6.2
|
)
|
|
|
|
(90.3
|
)
|
|
|
|
(11.0
|
)
|
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
128.5
|
|
|
|
|
181.8
|
|
|
|
|
592.1
|
|
|
|
|
774.2
|
|
|
|
Income tax expense
|
|
|
|
(68.8
|
)
|
|
|
|
(9.0
|
)
|
|
|
|
(154.5
|
)
|
|
|
|
(99.4
|
)
|
|
|
|
Net Income (loss) from continuing operations
|
|
|
|
59.7
|
|
|
|
|
172.8
|
|
|
|
|
437.6
|
|
|
|
|
674.8
|
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
(0.1
|
)
|
|
|
|
0.8
|
|
|
|
|
1.5
|
|
|
|
|
2.3
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
|
|
|
59.6
|
|
|
|
|
173.6
|
|
|
|
|
439.1
|
|
|
|
|
677.1
|
|
|
|
Less: Net (income) loss attributable to noncontrolling interests
|
|
|
|
0.4
|
|
|
|
|
(0.4
|
)
|
|
|
|
3.9
|
|
|
|
|
(0.8
|
)
|
|
|
|
Net income (loss) attributable to MCBC
|
|
|
$
|
60.0
|
|
|
|
$
|
173.2
|
|
|
|
$
|
443.0
|
|
|
|
$
|
676.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.33
|
|
|
|
$
|
0.95
|
|
|
|
$
|
2.44
|
|
|
|
$
|
3.65
|
|
|
|
|
From discontinued operations
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
|
|
Basic net income per share
|
|
|
$
|
0.33
|
|
|
|
$
|
0.95
|
|
|
|
$
|
2.45
|
|
|
|
$
|
3.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.33
|
|
|
|
$
|
0.95
|
|
|
|
$
|
2.43
|
|
|
|
$
|
3.62
|
|
|
|
|
From discontinued operations
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
|
|
Diluted net income per share
|
|
|
$
|
0.33
|
|
|
|
$
|
0.95
|
|
|
|
$
|
2.44
|
|
|
|
$
|
3.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
|
|
|
181.3
|
|
|
|
|
180.9
|
|
|
|
|
180.8
|
|
|
|
|
184.9
|
|
|
|
Weighted average shares - diluted
|
|
|
|
182.2
|
|
|
|
|
181.9
|
|
|
|
|
181.8
|
|
|
|
|
186.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
|
$
|
0.32
|
|
|
|
$
|
0.32
|
|
|
|
$
|
1.28
|
|
|
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to MCBC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, net of tax
|
|
|
$
|
60.1
|
|
|
|
$
|
172.4
|
|
|
|
$
|
441.5
|
|
|
|
$
|
674.0
|
|
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
(0.1
|
)
|
|
|
|
0.8
|
|
|
|
|
1.5
|
|
|
|
|
2.3
|
|
|
|
|
Net income (loss) attributable to MCBC
|
|
|
$
|
60.0
|
|
|
|
$
|
173.2
|
|
|
|
$
|
443.0
|
|
|
|
$
|
676.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
Table 10: Canada Segment Results of Operations
|
|
|
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Fourteen Weeks
Ended
|
|
|
Fifty-Two Weeks
Ended
|
|
|
Fifty-Three Weeks
Ended
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters
|
|
|
|
1.968
|
|
|
|
|
2.226
|
|
|
|
|
8.505
|
|
|
|
|
8.850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
624.1
|
|
|
|
$
|
675.0
|
|
|
|
$
|
2,675.2
|
|
|
|
$
|
2,732.8
|
|
|
|
Excise taxes
|
|
|
|
(152.6
|
)
|
|
|
|
(165.1
|
)
|
|
|
|
(638.4
|
)
|
|
|
|
(665.5
|
)
|
|
|
|
Net sales
|
|
|
|
471.5
|
|
|
|
|
509.9
|
|
|
|
|
2,036.8
|
|
|
|
|
2,067.3
|
|
|
|
Cost of goods sold
|
|
|
|
(270.9
|
)
|
|
|
|
(264.2
|
)
|
|
|
|
(1,120.7
|
)
|
|
|
|
(1,087.8
|
)
|
|
|
|
Gross profit
|
|
|
|
200.6
|
|
|
|
|
245.7
|
|
|
|
|
916.1
|
|
|
|
|
979.5
|
|
|
|
Marketing, general and administrative expenses
|
|
|
|
(99.1
|
)
|
|
|
|
(115.2
|
)
|
|
|
|
(476.5
|
)
|
|
|
|
(485.6
|
)
|
|
|
Special items, net
|
|
|
|
(8.8
|
)
|
|
|
|
(1.0
|
)
|
|
|
|
(13.7
|
)
|
|
|
|
(11.6
|
)
|
|
|
|
Operating income (loss)
|
|
|
|
92.7
|
|
|
|
|
129.5
|
|
|
|
|
425.9
|
|
|
|
|
482.3
|
|
|
|
Other income (expense), net
|
|
|
|
(0.5
|
)
|
|
|
|
(0.6
|
)
|
|
|
|
(2.9
|
)
|
|
|
|
(7.4
|
)
|
|
|
|
Income (loss) before income taxes
|
|
|
$
|
92.2
|
|
|
|
$
|
128.9
|
|
|
|
$
|
423.0
|
|
|
|
$
|
474.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
Table 11: PRO FORMA Central Europe Results of
Operations
|
|
|
|
|
|
|
|
|
(See footnote 3 on page 7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Fourteen Weeks
Ended
|
|
|
Fifty-Two Weeks
Ended
|
|
|
Fifty-Three Weeks
Ended
|
|
|
|
|
|
|
Actual
|
|
|
Pro Forma
|
|
|
Pro Forma
|
|
|
Pro Forma
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters
|
|
|
|
2.477
|
|
|
|
|
2.609
|
|
|
|
|
12.868
|
|
|
|
|
12.951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
205.3
|
|
|
|
$
|
223.4
|
|
|
|
$
|
1,033.2
|
|
|
|
$
|
1,166.6
|
|
|
|
Excise taxes
|
|
|
|
(45.6
|
)
|
|
|
|
(49.2
|
)
|
|
|
|
(224.3
|
)
|
|
|
|
(252.5
|
)
|
|
|
|
Net Sales
|
|
|
|
159.7
|
|
|
|
|
174.2
|
|
|
|
|
808.9
|
|
|
|
|
914.1
|
|
|
|
Cost of goods sold
|
|
|
|
(101.1
|
)
|
|
|
|
(108.6
|
)
|
|
|
|
(471.9
|
)
|
|
|
|
(504.7
|
)
|
|
|
|
Gross profit
|
|
|
|
58.6
|
|
|
|
|
65.6
|
|
|
|
|
337.0
|
|
|
|
|
409.4
|
|
|
|
Marketing, general and administrative expenses
|
|
|
|
(46.8
|
)
|
|
|
|
(49.8
|
)
|
|
|
|
(213.0
|
)
|
|
|
|
(234.7
|
)
|
|
|
Special items, net
|
|
|
|
(1.9
|
)
|
|
|
|
(4.5
|
)
|
|
|
|
(2.0
|
)
|
|
|
|
(7.0
|
)
|
|
|
|
Operating income (loss)
|
|
|
|
9.9
|
|
|
|
|
11.3
|
|
|
|
|
122.0
|
|
|
|
|
167.7
|
|
|
|
Other income (expense), net
|
|
|
|
(0.1
|
)
|
|
|
|
(1.1
|
)
|
|
|
|
(0.5
|
)
|
|
|
|
(2.9
|
)
|
|
|
|
Income (loss) before income taxes
|
|
|
$
|
9.8
|
|
|
|
$
|
10.2
|
|
|
|
$
|
121.5
|
|
|
|
$
|
164.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
Table 12: United Kingdom Segment Results of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Fourteen Weeks
Ended
|
|
|
Fifty-Two Weeks
Ended
|
|
|
Fifty-Three Weeks
Ended
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters (1) |
|
|
|
2.224
|
|
|
|
|
2.790
|
|
|
|
|
8.331
|
|
|
|
|
9.151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (1) |
|
|
$
|
608.8
|
|
|
|
$
|
676.1
|
|
|
|
$
|
2,170.9
|
|
|
|
$
|
2,301.1
|
|
|
|
Excise taxes
|
|
|
|
(245.6
|
)
|
|
|
|
(286.2
|
)
|
|
|
|
(904.6
|
)
|
|
|
|
(967.6
|
)
|
|
|
|
Net sales (1) |
|
|
|
363.2
|
|
|
|
|
389.9
|
|
|
|
|
1,266.3
|
|
|
|
|
1,333.5
|
|
|
|
Cost of goods sold
|
|
|
|
(258.2
|
)
|
|
|
|
(259.9
|
)
|
|
|
|
(882.2
|
)
|
|
|
|
(887.4
|
)
|
|
|
|
Gross profit
|
|
|
|
105.0
|
|
|
|
|
130.0
|
|
|
|
|
384.1
|
|
|
|
|
446.1
|
|
|
|
Marketing, general and administrative expenses
|
|
|
|
(82.9
|
)
|
|
|
|
(96.9
|
)
|
|
|
|
(327.2
|
)
|
|
|
|
(352.6
|
)
|
|
|
Special items, net
|
|
|
|
(9.1
|
)
|
|
|
|
0.1
|
|
|
|
|
(21.5
|
)
|
|
|
|
0.3
|
|
|
|
|
Operating income (loss)
|
|
|
|
13.0
|
|
|
|
|
33.2
|
|
|
|
|
35.4
|
|
|
|
|
93.8
|
|
|
|
Interest income, net
|
|
|
|
1.4
|
|
|
|
|
1.6
|
|
|
|
|
5.7
|
|
|
|
|
6.3
|
|
|
|
Other income (expense), net
|
|
|
|
(0.9
|
)
|
|
|
|
0.1
|
|
|
|
|
(2.3
|
)
|
|
|
|
(0.8
|
)
|
|
|
|
Income (loss) before income taxes
|
|
|
$
|
13.5
|
|
|
|
$
|
34.9
|
|
|
|
$
|
38.8
|
|
|
|
$
|
99.3
|
|
|
|
Notes:
|
|
|
(1) Reflects gross segment sales and for Q4 2012 and Q4
2011 includes intercompany sales to MCI of 0.048 million hectoliters
and 0.082 million hectoliters, respectively and $3.3 million of net
sales and $4.5 million of net sales, respectively. For full year
2012 and full year 2011 includes intercompany sales to MCI of 0.246
million hectoliters and 0.152 million hectoliters, respectively and
$16.0 million of net sales and $9.0 million of net sales,
respectively. The offset is included within MCI cost of goods sold.
These amounts are eliminated in the consolidated totals.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
Table 13: Molson Coors International Results of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Fourteen Weeks
Ended
|
|
|
Fifty-Two Weeks
Ended
|
|
|
Fifty-Three Weeks
Ended
|
|
|
|
|
|
|
December 29, 2012 (2) |
|
|
December 31, 2011
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters
|
|
|
|
0.276
|
|
|
|
|
0.319
|
|
|
|
|
1.188
|
|
|
|
|
1.012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
45.0
|
|
|
|
$
|
48.7
|
|
|
|
$
|
171.0
|
|
|
|
$
|
143.7
|
|
|
|
Excise taxes
|
|
|
|
(6.2
|
)
|
|
|
|
(7.0
|
)
|
|
|
|
(24.0
|
)
|
|
|
|
(21.1
|
)
|
|
|
|
Net Sales
|
|
|
|
38.8
|
|
|
|
|
41.7
|
|
|
|
|
147.0
|
|
|
|
|
122.6
|
|
|
|
Cost of goods sold (1) |
|
|
|
(19.6
|
)
|
|
|
|
(26.2
|
)
|
|
|
|
(90.1
|
)
|
|
|
|
(77.6
|
)
|
|
|
|
Gross profit
|
|
|
|
19.2
|
|
|
|
|
15.5
|
|
|
|
|
56.9
|
|
|
|
|
45.0
|
|
|
|
Marketing, general and administrative expenses
|
|
|
|
(19.1
|
)
|
|
|
|
(23.0
|
)
|
|
|
|
(87.4
|
)
|
|
|
|
(77.4
|
)
|
|
|
Special items, net
|
|
|
|
(2.1
|
)
|
|
|
|
(0.3
|
)
|
|
|
|
(42.2
|
)
|
|
|
|
(1.0
|
)
|
|
|
|
Operating income (loss)
|
|
|
|
(2.0
|
)
|
|
|
|
(7.8
|
)
|
|
|
|
(72.7
|
)
|
|
|
|
(33.4
|
)
|
|
|
Other income (expense), net
|
|
|
|
0.2
|
|
|
|
|
-
|
|
|
|
|
0.6
|
|
|
|
|
0.1
|
|
|
|
|
Income (loss) before income taxes
|
|
|
$
|
(1.8
|
)
|
|
|
$
|
(7.8
|
)
|
|
|
$
|
(72.1
|
)
|
|
|
$
|
(33.3
|
)
|
|
|
Notes:
|
|
|
(1) Reflects gross segment amounts and for Q4 2012 and Q4
2011 includes intercompany cost of goods sold from the U.K. of $3.3
million and $4.5 million, respectively. For full year 2012 and full
year 2011 includes intercompany cost of goods sold from the U.K. of
$16.0 million and $9.0 million, respectively. The offset is included
within U.K. net sales. These amounts are eliminated in the
consolidated totals.
|
|
(2) The results related to the Central Europe export
business have been moved to our MCI segment beginning July 1, 2012,
in accordance with how our Chief Operating Decision Maker views our
businesses. The MCI results for the fourth quarter of 2012 reflect
$2.6 million and $2.7 million of Income before income taxes and
non-GAAP underlying pretax income, respectively. The MCI results for
the full year 2012 reflect $5.4 million and $5.5 million of Income
before income taxes and non-GAAP underlying pretax income,
respectively.
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
Table 14: Corporate Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Fourteen Weeks
Ended
|
|
|
Fifty-Two Weeks
Ended
|
|
|
Fifty-Three Weeks
Ended
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
0.3
|
|
|
|
$
|
0.3
|
|
|
|
$
|
1.2
|
|
|
|
$
|
1.3
|
|
|
|
Excise taxes
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
Net Sales
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
|
|
|
1.2
|
|
|
|
|
1.3
|
|
|
|
Cost of goods sold
|
|
|
|
(0.1
|
)
|
|
|
|
(1.7
|
)
|
|
|
|
2.2
|
|
|
|
|
(5.3
|
)
|
|
|
|
Gross profit
|
|
|
|
0.2
|
|
|
|
|
(1.4
|
)
|
|
|
|
3.4
|
|
|
|
|
(4.0
|
)
|
|
|
Marketing, general and administrative expenses
|
|
|
|
(24.6
|
)
|
|
|
|
(24.8
|
)
|
|
|
|
(130.8
|
)
|
|
|
|
(103.4
|
)
|
|
|
Special items, net
|
|
|
|
(0.9
|
)
|
|
|
|
-
|
|
|
|
|
(2.0
|
)
|
|
|
|
-
|
|
|
|
|
Operating income (loss)
|
|
|
|
(25.3
|
)
|
|
|
|
(26.2
|
)
|
|
|
|
(129.4
|
)
|
|
|
|
(107.4
|
)
|
|
|
Interest expense, net(1) |
|
|
|
(23.6
|
)
|
|
|
|
(27.8
|
)
|
|
|
|
(190.7
|
)
|
|
|
|
(114.3
|
)
|
|
|
Other income (expense), net
|
|
|
|
(10.7
|
)
|
|
|
|
(5.7
|
)
|
|
|
|
(85.8
|
)
|
|
|
|
(2.9
|
)
|
|
|
|
Income (loss) before income taxes
|
|
|
$
|
(59.6
|
)
|
|
|
$
|
(59.7
|
)
|
|
|
$
|
(405.9
|
)
|
|
|
$
|
(224.6
|
)
|
|
|
Notes:
|
|
|
(1) Reflects acquisition-related interest expense of $1.3
million and $20.1 million on a GAAP basis and an underlying basis,
respectively, for Q4 2012 and $90.1 million and $47.4 million on a
GAAP basis and an underlying basis, respectively, for the full year
2012. Beginning July 1, 2012, interest income and expense related to
our Central Europe segment is reflected within Corporate results
consistent with our other segments, and this amount is $1.1 million
of net income on both a GAAP basis and an underlying basis for Q4
2012 and $0.3 million of net expense and $0.5 million of net income
on a GAAP basis and an underlying basis, respectively, for the full
year 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 15: Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
December 31, 2012
|
|
|
December 31, 2011
|
|
|
December 31, 2012
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters
|
|
|
|
17.394
|
|
|
|
|
17.602
|
|
|
|
|
76.299
|
|
|
|
|
76.652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
2,058.0
|
|
|
|
$
|
2,029.7
|
|
|
|
$
|
8,966.6
|
|
|
|
$
|
8,763.3
|
|
|
|
Excise taxes
|
|
|
|
(274.2
|
)
|
|
|
|
(275.8
|
)
|
|
|
|
(1,205.5
|
)
|
|
|
|
(1,213.1
|
)
|
|
|
|
Net sales
|
|
|
|
1,783.8
|
|
|
|
|
1,753.9
|
|
|
|
|
7,761.1
|
|
|
|
|
7,550.2
|
|
|
|
Cost of goods sold
|
|
|
|
(1,106.8
|
)
|
|
|
|
(1,102.8
|
)
|
|
|
|
(4,689.7
|
)
|
|
|
|
(4,647.9
|
)
|
|
|
|
Gross profit
|
|
|
|
677.0
|
|
|
|
|
651.1
|
|
|
|
|
3,071.4
|
|
|
|
|
2,902.3
|
|
|
|
Marketing, general and administrative expenses
|
|
|
|
(484.4
|
)
|
|
|
|
(455.1
|
)
|
|
|
|
(1,828.5
|
)
|
|
|
|
(1,768.6
|
)
|
|
|
Special items, net
|
|
|
|
(15.4
|
)
|
|
|
|
-
|
|
|
|
|
(31.8
|
)
|
|
|
|
(113.4
|
)
|
|
|
|
Operating income
|
|
|
|
177.2
|
|
|
|
|
196.0
|
|
|
|
|
1,211.1
|
|
|
|
|
1,020.3
|
|
|
|
Other income (expense), net
|
|
|
|
(3.2
|
)
|
|
|
|
0.7
|
|
|
|
|
0.3
|
|
|
|
|
1.2
|
|
|
|
|
Income before income taxes
|
|
|
|
174.0
|
|
|
|
|
196.7
|
|
|
|
|
1,211.4
|
|
|
|
|
1,021.5
|
|
|
|
Income tax expense
|
|
|
|
(1.7
|
)
|
|
|
|
(1.5
|
)
|
|
|
|
(5.5
|
)
|
|
|
|
(7.5
|
)
|
|
|
|
Net income
|
|
|
|
172.3
|
|
|
|
|
195.2
|
|
|
|
|
1,205.9
|
|
|
|
|
1,014.0
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
(1.9
|
)
|
|
|
|
(1.2
|
)
|
|
|
|
(15.0
|
)
|
|
|
|
(10.2
|
)
|
|
|
|
Net income attributable to MillerCoors
|
|
|
$
|
170.4
|
|
|
|
$
|
194.0
|
|
|
|
$
|
1,190.9
|
|
|
|
$
|
1,003.8
|
|
|
|
Notes:
|
|
|
(1) Economic ownership of MillerCoors is 58% held by
SABMiller and 42% held by Molson Coors. See Table 6 in the release
for a reconciliation from Net Income Attributable to MillerCoors to
Molson Coors Equity Income in MillerCoors, and to U.S. Segment
Underlying Pretax Income (Non-GAAP).
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
|
|
|
Table 16: Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
December 29, 2012
|
|
|
|
December 31, 2011
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
624.0
|
|
|
|
$
|
1,078.9
|
|
|
Receivables, net
|
|
|
753.4
|
|
|
|
|
726.0
|
|
|
Inventories, net
|
|
|
213.9
|
|
|
|
|
207.2
|
|
|
Other, net
|
|
|
156.7
|
|
|
|
|
105.9
|
|
|
|
Total current assets
|
|
|
1,748.0
|
|
|
|
|
2,118.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties, net
|
|
|
1,995.9
|
|
|
|
|
1,430.1
|
|
|
Goodwill and intangibles, net
|
|
|
9,687.9
|
|
|
|
|
6,039.3
|
|
|
Investment in MillerCoors
|
|
|
2,431.8
|
|
|
|
|
2,487.9
|
|
|
Other, net
|
|
|
320.0
|
|
|
|
|
348.5
|
|
|
|
Total assets
|
|
$
|
16,183.6
|
|
|
|
$
|
12,423.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
427.0
|
|
|
|
$
|
301.2
|
|
|
Accrued expenses and other, net
|
|
|
926.1
|
|
|
|
|
929.1
|
|
|
Current portion of long-term debt and short-term borrowings
|
|
|
1,245.6
|
|
|
|
|
46.9
|
|
|
|
Total current liabilities
|
|
|
2,598.7
|
|
|
|
|
1,277.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
3,422.5
|
|
|
|
|
1,914.9
|
|
|
Pension and post-retirement benefits
|
|
|
833.0
|
|
|
|
|
697.5
|
|
|
Other, net
|
|
|
1,337.8
|
|
|
|
|
844.0
|
|
|
|
Total liabilities
|
|
|
8,192.0
|
|
|
|
|
4,733.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MCBC stockholders' equity
|
|
|
7,966.9
|
|
|
|
|
7,647.9
|
|
|
Noncontrolling interests
|
|
|
24.7
|
|
|
|
|
42.3
|
|
|
|
Total equity
|
|
|
7,991.6
|
|
|
|
|
7,690.2
|
|
|
|
Total liabilities and equity
|
|
$
|
16,183.6
|
|
|
|
$
|
12,423.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
|
|
|
|
|
|
|
|
Table 17: Condensed Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
(In Millions)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-Two Weeks Ended
|
|
|
Fifty-Three Weeks Ended
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
|
|
$
|
439.1
|
|
|
|
$
|
677.1
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
272.7
|
|
|
|
|
217.1
|
|
|
|
|
Loss on sale or impairment of properties and other long-lived assets
|
|
|
|
46.4
|
|
|
|
|
8.6
|
|
|
|
|
Amortization of debt issuance costs and discounts
|
|
|
|
41.7
|
|
|
|
|
22.5
|
|
|
|
|
Equity Income in MillerCoors
|
|
|
|
(510.9
|
)
|
|
|
|
(457.9
|
)
|
|
|
|
Distributions from MillerCoors
|
|
|
|
510.9
|
|
|
|
|
457.9
|
|
|
|
|
Change in working capital and other, net
|
|
|
|
183.8
|
|
|
|
|
(57.2
|
)
|
|
Net cash provided by operating activities
|
|
|
$
|
983.7
|
|
|
|
$
|
868.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Additions to properties
|
|
|
$
|
(222.3
|
)
|
|
|
$
|
(235.4
|
)
|
|
|
Proceeds from sales of properties and other long-lived assets
|
|
|
|
15.7
|
|
|
|
|
4.6
|
|
|
|
Acquisition of businesses, net of cash acquired
|
|
|
|
(2,258.3
|
)
|
|
|
|
(41.3
|
)
|
|
|
Change in restricted cash balances
|
|
|
|
-
|
|
|
|
|
6.7
|
|
|
|
Proceeds from settlement of derivative instruments
|
|
|
|
-
|
|
|
|
|
15.4
|
|
|
|
Investment in MillerCoors
|
|
|
|
(1,008.8
|
)
|
|
|
|
(800.1
|
)
|
|
|
Return of capital from MillerCoors
|
|
|
|
942.4
|
|
|
|
|
782.7
|
|
|
|
Payments on settlement of debt-related derivatives
|
|
|
|
(110.6
|
)
|
|
|
|
-
|
|
|
|
Investment in and advances to an unconsolidated affiliate
|
|
|
|
-
|
|
|
|
|
(83.2
|
)
|
|
|
Other, net
|
|
|
|
6.8
|
|
|
|
|
12.5
|
|
|
Net cash used in investing activities
|
|
|
$
|
(2,635.1
|
)
|
|
|
$
|
(338.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Exercise of stock options under equity compensation plans
|
|
|
$
|
34.1
|
|
|
|
$
|
11.6
|
|
|
|
Dividends paid
|
|
|
|
(237.2
|
)
|
|
|
|
(230.4
|
)
|
|
|
Payments for purchase of treasury stock
|
|
|
|
-
|
|
|
|
|
(321.1
|
)
|
|
|
Payments for purchase of Non-controlling interest
|
|
|
|
(27.9
|
)
|
|
|
|
-
|
|
|
|
Net borrowings of debt
|
|
|
|
1,543.2
|
|
|
|
|
(11.8
|
)
|
|
|
Payments on settlements of debt-related derivatives
|
|
|
|
(8.2
|
)
|
|
|
|
(104.5
|
)
|
|
|
Change in overdraft balances and other, net
|
|
|
|
(132.6
|
)
|
|
|
|
(8.9
|
)
|
|
Net cash used in financing activities
|
|
|
$
|
1,171.4
|
|
|
|
$
|
(665.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
$
|
(480.0
|
)
|
|
|
$
|
(135.1
|
)
|
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
|
25.1
|
|
|
|
|
(3.6
|
)
|
|
|
Balance at beginning of year
|
|
|
|
1,078.9
|
|
|
|
|
1,217.6
|
|
|
Balance at end of period
|
|
|
$
|
624.0
|
|
|
|
$
|
1,078.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company
|
|
|
|
|
|
|
|
Table 18: Underlying Free Cash Flow --
Reconciliation to Nearest U.S. GAAP Measure(1) |
|
(US$ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-Two Weeks Ended
|
|
|
Fifty-Three Weeks Ended
|
|
|
|
|
|
|
|
December 29, 2012
|
|
|
December 31, 2011
|
|
U.S. GAAP:
|
|
|
Net Cash Provided by Operating Activities
|
|
|
$
|
983.7
|
|
|
|
$
|
868.1
|
|
|
Less:
|
|
|
Additions to properties(2) |
|
|
|
(222.3
|
)
|
|
|
|
(235.4
|
)
|
|
Less:
|
|
|
Investment in MillerCoors(2) |
|
|
|
(1,008.8
|
)
|
|
|
|
(800.1
|
)
|
|
Add:
|
|
|
Return of capital from MillerCoors(2) |
|
|
|
942.4
|
|
|
|
|
782.7
|
|
|
Add:
|
|
|
Cash impact of Special items(3) |
|
|
|
11.6
|
|
|
|
|
3.1
|
|
|
Add:
|
|
|
Costs related to the Acquisition(4) |
|
|
|
134.7
|
|
|
|
|
-
|
|
|
Add:
|
|
|
MillerCoors investments in businesses(5) |
|
|
|
14.4
|
|
|
|
|
-
|
|
|
Add:
|
|
|
MillerCoors purchase of noncontrolling interest(5) |
|
|
|
9.0
|
|
|
|
|
-
|
|
|
Non-GAAP:
|
|
|
Underlying Free Cash Flow
|
|
|
$
|
864.7
|
|
|
|
$
|
618.4
|
|
|
Notes:
|
|
|
|
(1) For 2012, we have revised our calculation of
underlying free cash flow to exclude the benefit of proceeds from
asset sales and to adjust for the cash impact of Special and other
non-core items, such as adding back payments related to Special and
other non-core charges. This change has the effect of aligning the
adjustments to our underlying free cash flow with adjustments to our
underlying earnings and provides greater consistency in the
treatment of our non-GAAP measures. Following this approach reduced
2011 underlying free cash flow by $16.9 million.
|
|
(2) Included in Net cash used in investing activities.
|
|
(3) Included in Net cash provided by operating activities.
|
|
(4) Included in Net cash provided by operating activities
and reflects loss related to settlement of Treasury Locks of $39.2
million, Euro currency purchase loss of $57.9 million and
acquisition and integration costs paid of $37.6 million.
|
|
(5) Amounts represent MCBC's proportionate 42% share of
the cash flow impacts, as determined by management. These items
adjust operating cash flow to arrive at our underlying free cash
flow for the full year 2012 and the comparable prior-year period.
|
