Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported a 21.0
percent decrease in underlying after-tax income for the fourth quarter
2014, driven by unfavorable foreign currency, increased brand
investments and incentive compensation this year, along with lower
volume in the U.S. and Canada, and the termination of our Modelo brands
agreement in Canada. On a U.S. GAAP basis, the company reported a 31.9
percent decline in net income to $93.2 million, primarily due to a
higher effective tax rate, unfavorable foreign currency, lower worldwide
volumes and increased brand investments.
Full year underlying after-tax income increased 5.7 percent to $768.5
million, or $4.13 per diluted share. On a U.S. GAAP basis, net income
from continuing operations declined 9.2 percent to $513.5 million
primarily due to increased impairments of intangible brand assets.
Molson Coors president and chief executive officer Mark Hunter said,
“Overall, 2014 was a good year for Molson Coors. We grew net sales in
constant currency, as well as underlying EBITDA, free cash flow,
after-tax income and earnings per share. Weak consumer demand continued
across our largest markets, but we made good progress in building a
stronger brand portfolio, delivering value-added innovation,
strengthening our core brand positions, and increasing our share in
above premium. We also continued to improve our sales execution and
revenue management capabilities, increase the efficiency of our
operations, implement common systems and focus on Profit After Capital
Charge as the key driver for our cash and capital allocation strategy.
As a result, we delivered $1.47 billion of underlying EBITDA and $768.5
million of underlying after-tax income. We drove working capital
performance company-wide and achieved $957 million of underlying free
cash flow, which exceeded our original 2014 free cash flow goal by more
than $250 million. We over-delivered against our cost savings targets,
and we reduced our net debt by nearly $800 million. We grew our global
above-premium volume, net pricing and sales mix, and maintained market
share in Europe despite a poor economy and floods in some of our
highest-share markets. Volume challenges included Coors Light
performance in the U.S. and Canada, however, Coors Light worldwide
volume grew nearly 2 percent on the strength of its performance in
Europe and International. We also cycled the termination of the Modelo
brands joint venture in Canada. Despite these challenges, our overall
profit and cash performance helped to drive a positive total shareholder
return (TAP stock price, plus dividends) of 35.7 percent in 2014, which
is more than two-and-a-half times the total return for the S&P500 index
of large stocks last year."
Hunter added, “In the 4th quarter, we grew constant-currency net sales
nearly 1 percent, while our underlying after-tax income decreased 21
percent due to unfavorable foreign currency, increased brand investments
and incentive compensation this year, lower volume in the U.S. and
Canada, and the termination of our Modelo brands agreement in Canada."
Hunter continued, "Also, in recognition of the substantial progress we
have made in generating cash and paying down debt, our board has
approved a new program to repurchase up to $1 billion of the Company’s
Class A and Class B Common shares, which we expect to implement over the
next four years. We anticipate that the stock repurchases will be
weighted toward the last two years of the program. Our board has also
authorized an increase in our quarterly dividend from 37 cents per share
to 41 cents per share, beginning in the first quarter of 2015. This 11
percent increase follows a double-digit increase in our quarterly
dividend last year and results in an annual dividend amount of $1.64 per
share, which represents a payout ratio of 20.6 percent of 2014
underlying EBITDA. We continue to target a dividend payout in the range
of 18 percent to 22 percent of trailing underlying EBITDA, which we
anticipate will keep our dividend in a competitive range for global beer
companies for the foreseeable future. This new stock buyback program and
the increased dividend reflect our continued confidence in the long-term
growth and cash generating potential of our Company and our commitment
to returning cash to our shareholders.”
New Stock Repurchase Program
Molson Coors Brewing Company announced today that its board of directors
has approved a new program authorizing the repurchase, effective
immediately, of up to $1.0 billion of the Company’s Class A and Class B
Common stock, with an expected term of four years, which replaces all
prior stock repurchase programs. The Company anticipates that the stock
repurchases will be weighted toward the last two years of the program.
“In the past several years, we have generated substantial cash,
continued to strengthen the Company’s balance sheet, added new brands
and businesses in select markets, and more than doubled our dividends,”
said Mark Hunter. “The combination of strong cash generation and
underlying EBITDA has allowed us to reduce our leverage ratios to
pre-StarBev acquisition levels and consider share buybacks a full year
earlier than originally anticipated.”
“This announcement reflects our continued confidence in the future
profit and cash generating potential of our Company. We are in a strong
position to increase cash returns to Molson Coors shareholders while
maintaining a strong balance sheet and preserving the financial
flexibility to explore growth opportunities and fund our pensions,” said
Gavin Hattersley, Molson Coors Chief Financial Officer.
Molson Coors plans to purchase its Class A and Class B Common stock from
time to time, principally in the open market or through private
transactions. The number, price and timing of the repurchases will be at
the Company’s sole discretion and will be evaluated depending on market
conditions, liquidity needs or other factors. The Company’s board of
directors may suspend, modify or terminate the program at any time
without prior notice.
Quarterly Dividend Increased 11 Percent
Molson Coors Brewing Company (NYSE: TAP, TAP.A) today declared an
increased regular quarterly dividend of $0.41 per share, payable March
16, 2015, to Class A and Class B shareholders of record on February 27,
2015. This dividend represents an 11 percent increase from the previous
quarterly rate of $0.37 per share and raises the annual dividend rate to
$1.64 per share. In addition, Molson Coors Canada Inc. (TSX: TPX.B,
TPX.A), declared a quarterly dividend of the Canadian dollar equivalent
of $0.41 per share using today’s noon spot exchange rate as reported by
the Bank of Canada, payable March 16, 2015, to Class A exchangeable and
Class B exchangeable shareholders of record on February 27, 2015.
Underlying EBITDA and Free Cash Flow
Underlying EBITDA was $273.9 million in the fourth quarter, a
14.6 percent decrease from a year ago. Full year underlying EBITDA
increased 0.1 percent from a year ago to $1.47 billion this year.
Underlying free cash flow for the year totaled $956.7 million, an
increase of $64.7 million from the prior year, driven by increased
distributions from MillerCoors, as well as lower cash paid for pension
contributions, capital expenditures, interest and taxes, along with
higher underlying income. These increases were partially offset by a
decreased benefit from changes in net working capital.
Worldwide Volume
Worldwide beer volume in the fourth quarter of 14.0 million hectoliters
decreased 0.3 percent. Full year worldwide beer volume in 2014 of 59.0
million hectoliters decreased 1.3 percent.
Cost Savings Highlights
In 2014, the Company delivered more than $70 million of cost savings
excluding MillerCoors, which achieved an additional $143 million of cost
savings. Molson Coors benefits from 42 percent of MillerCoors cost
savings, equal to $60 million in 2014.
Foreign Exchange
The Company’s fourth quarter underlying consolidated pretax income
includes the negative effect of foreign currency movements of
approximately $2 million in Europe, $5 million in Canada and $4 million
in Corporate. For the full year, underlying consolidated pretax income
includes the effect of foreign currency movements that were
approximately $8 million positive in Europe, $18 million negative in
Canada, $7 million negative in Corporate and $1 million negative in
International.
Effective Income Tax Rates
The Company’s fourth quarter effective income tax rate was 22 percent on
a reported basis and 24 percent on an underlying basis. On a U.S. GAAP
basis, the higher tax rate was driven by the cycling of special and
other non-core items in the prior year, changes to valuation allowances,
and fluctuations in foreign currency rates. On an underlying basis, our
effective tax rate was in line with the prior year.
The Company's full year 2014 effective tax rate was 12 percent on a
reported basis and 15 percent on an underlying basis.
Debt
Total debt at the end of the fourth quarter was $3.187 billion,
and cash and cash equivalents totaled $624.6 million, resulting in net
debt of $2.562 billion, which is $795.7 million lower than the prior
year.
Fourth Quarter Business Segment Results
The following are the Company’s fourth quarter 2014 results by business
segment:
United States Business (MillerCoors)(2)
Molson Coors underlying U.S. segment underlying equity income
decreased 12.4 percent to $90.0 million in the quarter.
MillerCoors Operating and Financial Highlights
MillerCoors underlying net income for the quarter decreased 11.8
percent to $213.3 million, driven by lower shipment volume, unrealized
losses on commodity hedges and higher marketing investment.
MillerCoors domestic sales-to-retailers volume (STRs) declined 1.7
percent for the quarter. Domestic sales-to-wholesalers volume (STWs)
decreased 3.7 percent. Domestic net revenue per hectoliter, which
excludes contract brewing and company-owned-distributor sales, grew 2.0
percent due to favorable net pricing and positive sales mix. Total
company net revenue per hectoliter, including contract brewing and
company-owned-distributor sales, increased 2.0 percent. Contract brewing
volumes increased 1.9 percent.
Cost of goods sold (COGS) per hectoliter increased 3.0 percent, driven
by unrealized losses on commodity hedges, commodity and brewery
inflation, lower fixed-cost absorption and higher costs associated with
brand innovation. Marketing, general and administrative (MG&A) expense
increased 1.8 percent, driven primarily by higher media investment,
partially offset by lower employee benefit related expenses.
Depreciation and amortization expenses for MillerCoors were $78.0
million in the fourth quarter and $311.1 million for the year, and
additions to tangible and intangible assets totaled $138.9 million in
the fourth quarter and $401.1 million for the year.
Canada Business
Canada underlying pretax income decreased 14.1 percent to $76.2
million in the quarter and decreased 8.8 percent on a constant-currency
basis. More than half of the constant-currency decline was driven by
cycling the $4.2 million benefit of 2013 equity earnings and
administrative cost recoveries related to the Modelo joint venture,
which was terminated at the end of February 2014. Input cost inflation,
lower volume, and cycling unusually low incentive compensation expense a
year ago also contributed to the decline. A decrease in the Canadian
dollar versus the U.S. dollar resulted in an approximate $5 million
negative foreign currency impact on underlying pretax income in the
quarter. These negative factors were partially offset by substantial
cost savings in the fourth quarter this year.
STRs decreased 4.2 percent on a reported basis in the fourth quarter,
primarily due to our termination of the Modelo joint venture earlier
this year, along with competitive promotional activity across Canada.
The company's market share(3) declined approximately one
point. Molson Coors Canada sales volume(3) decreased 3.4
percent in the fourth quarter. Net sales per hectoliter increased 2.3
percent in local currency, driven by positive net pricing and mix.
COGS per hectoliter increased 7.1 percent in local currency, driven by
input cost inflation, fixed-cost deleverage, and the termination of the
Modelo brands joint venture in 2014, partially offset by cost savings.
MG&A expense decreased 7.4 percent in local currency, due to lower
overhead and other costs, partially offset by higher marketing
investments in the fourth quarter.
Europe Business
Europe underlying pretax income decreased 14.7 percent to $38.3
million in the quarter and decreased 10.0 percent on a constant currency
basis. Positive volume and pricing drove strong net sales and gross
margin growth in the quarter, but pretax income declined due to
increased marketing and sales investments and approximately $2 million
of negative impact from foreign currency movements.
Molson Coors Europe sales volume increased 1.8 percent, driven by growth
in eight of 11 countries, with the exceptions of Serbia, Ireland and the
United Kingdom. On a comparable-trading-day basis, U.K. volume increased
in the quarter. Europe net sales per hectoliter increased 0.5 percent in
local currency, driven by positive pricing.
COGS per hectoliter decreased 2.0 percent in local currency, driven by
lower distribution costs and mix shift to lower-cost geographies.
MG&A expense increased 10.6 percent in local currency, due to increased
marketing and sales investments across the region.
International Business
The International segment posted an underlying pretax loss of
$3.9 million in the fourth quarter, versus a loss of $5.8 million a year
ago, due to strong double-digit volume growth and lower overheads.
Total International sales volume, including royalty volume, increased
19.5 percent, primarily due to strong Coors Light growth in Latin
America and volume growth in India. Net sales per hectoliter decreased
14.3 percent, driven by foreign currency movements and geographic mix.
COGS per hectoliter decreased 16.4 percent, due to sales mix changes and
foreign currency movements. International MG&A expense decreased 9.3
percent, driven by lower overhead expenses and foreign currency
movements.
Corporate
Underlying Corporate pretax loss totaled $65.8 million for the
fourth quarter, a $6.0 million increase versus the prior year, driven by
unfavorable foreign currency movements and higher incentive
compensation, partially offset by lower underlying interest expense.
Change in Interim Period Accounting for
Advertising Expenses
Effective the first quarter of 2014, we changed our policy for
recognizing advertising expenses during interim periods and have applied
this change retrospectively. The change in interim accounting affects
the timing of advertising expenses over interim periods but has no
impact on full year results. We have provided the impact to fiscal year
2013 quarterly results on our investor relations website.
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 recognized a net special charge
of $6.6 million. This pretax charge was primarily driven by $4.0 million
of accelerated depreciation expense related to management's proposal to
close our Alton brewing facility in the U.K. during 2015, as well as
$2.7 million of restructuring costs.
MillerCoors did not incur any special charges in the quarter.
Other non-core items resulted in $7.6 million charge, which was
driven by unrealized mark-to-market net losses on commodity hedges.
2014 Fourth Quarter 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 2014 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 1:00 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 6, 2015.
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, underlying EBITDA, underlying free cash flow and constant
currency results by excluding special and other non-core items from the
nearest U.S. GAAP performance measure, which is net income from
continuing operations attributable to MCBC for both underlying after-tax
income and underlying EBITDA and net cash provided by operating
activities for underlying free cash flow. 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 and full year ended December 31, 2014, compared to the
fiscal fourth quarter and full year ended December 31, 2013.
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 8).
(3) Excludes the Modelo brands from our Canada STR results in
fourth quarter 2013 and 2014. The Company terminated on February 28,
2014, its joint venture that sold the Modelo brands in Canada, and
control of the brands reverted to Anheuser-Busch InBev.
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, Europe,
and Molson Coors International (MCI). The Company has a diverse
portfolio of owned and partner brands, including signature brands
Carling, Coors Banquet, Coors Light, Molson Canadian and Staropramen.
Molson Coors is listed on the 2014/2015 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 website, www.molsoncoors.com.
About Molson Coors Canada Inc.
Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors Brewing
Company. MCCI Class A and Class B exchangeable shares offer
substantially the same economic and voting rights as the respective
classes of common shares of MCBC, as described in MCBC’s annual proxy
statement and Form 10-K filings with the U.S. Securities and Exchange
Commission. The trustee holder of the special Class A voting stock and
the special Class B voting stock has the right to cast a number of votes
equal to the number of then outstanding Class A exchangeable shares and
Class B exchangeable shares, respectively.
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, impact of competitive pricing and product pressures; health of
the beer industry and our brands in our markets; economic conditions in
our markets; pension plan costs; availability or increase in the cost of
packaging materials; our ability to maintain manufacturer/distribution
agreements; our ability to implement our strategic initiatives,
including executing and realizing cost savings; our ability to
successfully integrate newly acquired businesses; 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; risks relating to operations
outside North America; success of our joint ventures; lack of
full-control over the operations of MillerCoors; and other risks
discussed in our filings with the SEC, including our most recent Annual
Report on Form 10-K, 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.
Use of Non-GAAP Measures
In addition to financial measures presented on the basis of accounting
principles generally accepted in the United States of America
("U.S. GAAP"), we also present pretax and after-tax "underlying income,"
"underlying effective tax rate," "underlying free cash flow," and
"constant currency," which are non-GAAP measures and should be viewed as
supplements to (not substitutes for) our results of operations presented
under U.S. GAAP. We also present underlying earnings before interest,
taxes, depreciation, and amortization ("underlying EBITDA") as a
non-GAAP measure. Our management uses underlying income, underlying
EBITDA, underlying effective tax rate, underlying free cash flow and
constant currency as measures of operating performance to assist in
comparing performance from period to period on a consistent basis; as a
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in communications
with the board of directors, stockholders, analysts and investors
concerning our financial performance; as useful comparisons to the
performance of our competitors; and as metrics of certain management
incentive compensation calculations. We believe that underlying income,
underlying EBITDA, underlying effective tax rate, underlying free cash
flow and constant currency performance are used by and are useful to
investors and other users of our financial statements in evaluating our
operating performance because they provide an additional tool to
evaluate our performance without regard to special and non-core items,
which can vary substantially from company to company depending upon
accounting methods and book value of assets and capital structure. We
have provided reconciliations of all non-GAAP measures to their nearest
U.S. GAAP measures and have consistently applied the adjustments within
our reconciliations in arriving at each non-GAAP measure. These
adjustments consist of special items from our U.S. GAAP financial
statements as well as other non-core items, such as acquisition and
integration related costs, unrealized mark-to-market gains and losses,
and gains and losses on sales of non-operating assets, included in our
U.S. GAAP results that warrant adjustment to arrive at non-GAAP results.
We consider these items to be necessary adjustments for purposes of
evaluating our ongoing business performance and are often considered
non-recurring. Such adjustments are subjective and involve significant
management judgment.
|
|
|
|
Reconciliations to Nearest U.S. GAAP
Measure
Molson Coors Brewing Company and Subsidiaries
Table 1: Fourth Quarter Underlying After-Tax
Income
($ In millions, except per share data) (Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
|
$
|
93.2
|
|
|
|
$
|
136.9
|
|
Per diluted share
|
|
|
$
|
0.50
|
|
|
|
$
|
0.74
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
Special items, net
|
|
|
6.6
|
|
|
|
34.2
|
|
42% of MillerCoors special items, net of tax(2)
|
|
|
—
|
|
|
|
2.0
|
|
Acquisition and integration related costs(3)
|
|
|
—
|
|
|
|
2.4
|
|
Unrealized mark-to-market (gains) and losses(4)
|
|
|
7.6
|
|
|
|
2.3
|
|
Other non-core items(5)
|
|
|
—
|
|
|
|
(22.3
|
)
|
Tax effects on non-GAAP items
|
|
|
(5.3
|
)
|
|
|
(26.3
|
)
|
Non-GAAP: Underlying
after-tax income
|
|
|
$
|
102.1
|
|
|
|
$
|
129.2
|
|
Per diluted share
|
|
|
$
|
0.55
|
|
|
|
$
|
0.70
|
|
(1)
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
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|
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(2)
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Included in equity income in MillerCoors.
|
|
|
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(3)
|
|
In Q4 2013, $2.4 million costs included in marketing, general and
administrative expenses.
|
|
|
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(4)
|
|
In Q4 2014, $7.6 million loss included in cost of goods sold. In Q4
2013, $1.0 million loss included in other income (expense), net, and
$1.3 million loss in cost of goods sold.
|
|
|
|
(5)
|
|
Included in other income (expense), net.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 2: Fourth Quarter Underlying Pretax Income
(Loss)
($ In millions) (Unaudited)
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|
|
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|
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|
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|
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Business
|
|
|
Total
|
|
|
|
Canada
|
|
|
U.S.
|
|
|
Europe
|
|
|
MCI
|
|
|
Corporate
|
|
|
Consolidated
|
U.S. GAAP: 2014 4th Q
Income (loss) from continuing operations before income taxes
|
|
|
$
|
76.2
|
|
|
|
$
|
90.0
|
|
|
|
$
|
31.7
|
|
|
|
$
|
(3.9
|
)
|
|
|
$
|
(73.4
|
)
|
|
|
$
|
120.6
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
|
—
|
|
|
|
—
|
|
|
|
6.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.6
|
|
Unrealized mark-to-market (gains) and losses(1)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
7.6
|
|
Non-GAAP: 2014 4th Q
underlying pretax income (loss)
|
|
|
$
|
76.2
|
|
|
|
$
|
90.0
|
|
|
|
$
|
38.3
|
|
|
|
$
|
(3.9
|
)
|
|
|
$
|
(65.8
|
)
|
|
|
$
|
134.8
|
|
Percent change 2014 4th Q vs. 2013 4th Q underlying pretax income
(loss)
|
|
|
(14.1
|
)%
|
|
|
(12.4
|
)%
|
|
|
(14.7
|
)%
|
|
|
32.8
|
%
|
|
|
(10.0
|
)%
|
|
|
(21.0
|
)%
|
U.S. GAAP: 2013 4th Q
Income (loss) from continuing operations before income taxes(2)
|
|
|
$
|
62.7
|
|
|
|
$
|
100.7
|
|
|
|
$
|
31.1
|
|
|
|
$
|
(0.2
|
)
|
|
|
$
|
(42.2
|
)
|
|
|
$
|
152.1
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
|
26.0
|
|
|
|
—
|
|
|
|
12.8
|
|
|
|
(5.6
|
)
|
|
|
1.0
|
|
|
|
34.2
|
|
42% of MillerCoors special items, net of tax(3)
|
|
|
—
|
|
|
|
2.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.0
|
|
Acquisition and integration related costs(4)
|
|
|
—
|
|
|
|
—
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
1.4
|
|
|
|
2.4
|
|
Unrealized mark-to-market (gains) and losses(1)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.3
|
|
|
|
2.3
|
|
Other non-core items(5)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(22.3
|
)
|
|
|
(22.3
|
)
|
Non-GAAP: 2013 4th Q
underlying pretax income (loss)
|
|
|
$
|
88.7
|
|
|
|
$
|
102.7
|
|
|
|
$
|
44.9
|
|
|
|
$
|
(5.8
|
)
|
|
|
$
|
(59.8
|
)
|
|
|
$
|
170.7
|
|
(1)
|
|
In Q4 2014, $7.6 million loss included in cost of goods sold. In Q4
2013, $1.0 million loss included in other income (expense), net, and
$1.3 million loss in cost of goods sold.
|
|
|
|
(2)
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
(3)
|
|
Included in equity income in MillerCoors.
|
|
|
|
(4)
|
|
In Q4 2013, $2.4 million costs included in marketing, general and
administrative expenses.
|
|
|
|
(5)
|
|
Included in other income (expense), net.
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 3: Full Year Underlying After-Tax Income
($ In millions, except per share data) (Unaudited)
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
|
$
|
513.5
|
|
|
|
$
|
565.3
|
|
Per diluted share
|
|
|
$
|
2.76
|
|
|
|
$
|
3.07
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
Special items, net
|
|
|
324.4
|
|
|
|
200.0
|
|
42% of MillerCoors special items, net of tax(2)
|
|
|
0.6
|
|
|
|
8.3
|
|
Acquisition and integration related costs(3)
|
|
|
—
|
|
|
|
10.7
|
|
Unrealized mark-to-market (gains) and losses(4)
|
|
|
3.7
|
|
|
|
15.4
|
|
Other non-core items(5)
|
|
|
(11.3
|
)
|
|
|
(23.5
|
)
|
Tax effects on non-GAAP items
|
|
|
(62.4
|
)
|
|
|
(49.1
|
)
|
Non-GAAP: Underlying
after-tax income
|
|
|
$
|
768.5
|
|
|
|
$
|
727.1
|
|
Per diluted share
|
|
|
$
|
4.13
|
|
|
|
$
|
3.95
|
|
(1)
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
(2)
|
|
Included in equity income in MillerCoors.
|
|
|
|
(3)
|
|
In 2013, $10.7 million costs included in marketing, general and
administrative expenses.
|
|
|
|
(4)
|
|
In 2014, $0.5 million gain included in other income (expense), net,
and $4.2 million loss in cost of goods sold. In 2013, $7.3 million
loss included in other income (expense), net, $2.7 million loss in
cost of goods sold, and $5.4 million loss included in interest
expense, net.
|
|
|
|
(5)
|
|
In 2014, $11.3 million gain included in marketing, general and
administrative expenses. In 2013, $23.5 million gain included in
other income (expense), net.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 4: Full Year Underlying Pretax Income (Loss)
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
|
Total
|
|
|
|
Canada
|
|
|
U.S.
|
|
|
Europe
|
|
|
MCI
|
|
|
Corporate
|
|
|
Consolidated
|
U.S. GAAP: 2014 Full Year
Income (loss) from continuing operations before income taxes
|
|
|
$
|
406.8
|
|
|
|
$
|
561.8
|
|
|
|
$
|
(111.9
|
)
|
|
|
$
|
(13.3
|
)
|
|
|
$
|
(257.1
|
)
|
|
|
$
|
586.3
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
|
(41.8
|
)
|
|
|
—
|
|
|
|
365.9
|
|
|
|
—
|
|
|
|
0.3
|
|
|
|
324.4
|
|
42% of MillerCoors special items, net of tax(1)
|
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.6
|
|
Unrealized mark-to-market (gains) and losses(2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.7
|
|
|
|
3.7
|
|
Other non-core items(3)
|
|
|
—
|
|
|
|
—
|
|
|
|
(11.3
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(11.3
|
)
|
Non-GAAP: 2014 Full Year
underlying pretax income (loss)
|
|
|
$
|
365.0
|
|
|
|
$
|
562.4
|
|
|
|
$
|
242.7
|
|
|
|
$
|
(13.3
|
)
|
|
|
$
|
(253.1
|
)
|
|
|
$
|
903.7
|
|
Percent change 2014 vs. 2013 Full Year underlying pretax income
(loss)
|
|
|
(7.1
|
)%
|
|
|
2.8
|
%
|
|
|
13.8
|
%
|
|
|
17.9
|
%
|
|
|
6.9
|
%
|
|
|
4.4
|
%
|
U.S. GAAP: 2013 Full Year
Income (loss) from continuing operations before income taxes(4)
|
|
|
$
|
363.3
|
|
|
|
$
|
539.0
|
|
|
|
$
|
34.3
|
|
|
|
$
|
(11.8
|
)
|
|
|
$
|
(270.3
|
)
|
|
|
$
|
654.5
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
|
30.7
|
|
|
|
—
|
|
|
|
172.4
|
|
|
|
(4.4
|
)
|
|
|
1.3
|
|
|
|
200.0
|
|
42% of MillerCoors special items, net of tax(1)
|
|
|
—
|
|
|
|
8.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8.3
|
|
Unrealized mark-to-market (gains) and losses(2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
15.4
|
|
|
|
15.4
|
|
Acquisition and integration related costs(5)
|
|
|
—
|
|
|
|
—
|
|
|
|
6.6
|
|
|
|
—
|
|
|
|
4.1
|
|
|
|
10.7
|
|
Other non-core items(3)
|
|
|
(1.2
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(22.3
|
)
|
|
|
(23.5
|
)
|
Non-GAAP: 2013 Full Year
underlying pretax income (loss)
|
|
|
$
|
392.8
|
|
|
|
$
|
547.3
|
|
|
|
$
|
213.3
|
|
|
|
$
|
(16.2
|
)
|
|
|
$
|
(271.8
|
)
|
|
|
$
|
865.4
|
|
(1)
|
|
Included in equity income in MillerCoors.
|
|
|
|
(2)
|
|
In 2014, $0.5 million gain included in other income (expense), net,
and $4.2 million loss in cost of goods sold. In 2013, $7.3 million
loss included in other income (expense), net, $2.7 million loss in
cost of goods sold, and $5.4 million loss included in interest
expense, net.
|
|
|
|
(3)
|
|
In 2014, $11.3 million gain included in marketing, general and
administrative expenses. In 2013, $23.5 million gain included in
other income (expense), net.
|
|
|
|
(4)
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
(5)
|
|
In 2013, $10.7 million costs included in marketing, general and
administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 5: Underlying EBITDA
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
|
|
% change
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
% change
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
|
$
|
93.2
|
|
|
|
$
|
136.9
|
|
|
|
(31.9
|
)%
|
|
|
$
|
513.5
|
|
|
|
$
|
565.3
|
|
|
|
(9.2)%
|
Add: Net income (loss) attributable to noncontrolling
interests
|
|
|
0.3
|
|
|
|
0.4
|
|
|
|
(25.0
|
)%
|
|
|
3.8
|
|
|
|
5.2
|
|
|
|
(26.9)%
|
U.S. GAAP: Net income
(loss) from continuing operations
|
|
|
$
|
93.5
|
|
|
|
$
|
137.3
|
|
|
|
(31.9
|
)%
|
|
|
$
|
517.3
|
|
|
|
$
|
570.5
|
|
|
|
(9.3)%
|
Add: Interest expense (income), net
|
|
|
30.8
|
|
|
|
36.2
|
|
|
|
(14.9
|
)%
|
|
|
133.7
|
|
|
|
170.1
|
|
|
|
(21.4)%
|
Add: Income tax expense (benefit)
|
|
|
27.1
|
|
|
|
14.8
|
|
|
|
83.1
|
%
|
|
|
69.0
|
|
|
|
84.0
|
|
|
|
(17.9)%
|
Add: Depreciation and amortization
|
|
|
80.0
|
|
|
|
82.4
|
|
|
|
(2.9
|
)%
|
|
|
313.0
|
|
|
|
320.5
|
|
|
|
(2.3)%
|
Adjustments included in underlying income(2)
|
|
|
14.2
|
|
|
|
16.6
|
|
|
|
(14.5
|
)%
|
|
|
316.8
|
|
|
|
202.6
|
|
|
|
56.4%
|
Adjustments to arrive at underlying EBITDA(3)
|
|
|
(4.0
|
)
|
|
|
(1.8
|
)
|
|
|
122.2
|
%
|
|
|
(8.9
|
)
|
|
|
(7.7
|
)
|
|
|
15.6%
|
Adjustments to arrive at underlying EBITDA related to our investment
in MillerCoors(4)
|
|
|
32.3
|
|
|
|
35.1
|
|
|
|
(8.0
|
)%
|
|
|
129.6
|
|
|
|
128.5
|
|
|
|
0.9%
|
Non-GAAP: Underlying EBITDA
|
|
|
$
|
273.9
|
|
|
|
$
|
320.6
|
|
|
|
(14.6
|
)%
|
|
|
$
|
1,470.5
|
|
|
|
$
|
1,468.5
|
|
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
(2)
|
|
Includes adjustments to non-GAAP underlying income within the table
above related to special and non-core items.
|
|
|
|
(3)
|
|
Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC from continuing
operations.
|
|
|
|
(4)
|
|
Adjustments to our equity income from MillerCoors, which include our
proportionate share of MillerCoors' interest, income tax,
depreciation and amortization, special items, and amortization of
the difference between the MCBC contributed cost basis and
proportionate share of the underlying equity in net assets of
MillerCoors.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 6: Underlying Free Cash Flow
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
U.S. GAAP:
|
|
|
Net Cash Provided by Operating Activities
|
|
|
$
|
1,272.6
|
|
|
|
$
|
1,168.2
|
|
Less:
|
|
|
Additions to properties(1)
|
|
|
(259.5
|
)
|
|
|
(293.9
|
)
|
Less:
|
|
|
Investment in MillerCoors(1)
|
|
|
(1,388.1
|
)
|
|
|
(1,186.5
|
)
|
Add:
|
|
|
Return of capital from MillerCoors(1)
|
|
|
1,382.5
|
|
|
|
1,146.0
|
|
Add/(Less):
|
|
|
Cash impact of Special items(2)
|
|
|
(55.8
|
)
|
|
|
48.8
|
|
Add:
|
|
|
Costs related to the Acquisition(3)
|
|
|
—
|
|
|
|
7.7
|
|
Add:
|
|
|
MillerCoors investments in businesses(4)
|
|
|
1.3
|
|
|
|
—
|
|
Add:
|
|
|
MillerCoors cash impact of Special items(4)
|
|
|
3.7
|
|
|
|
1.7
|
|
Non-GAAP:
|
|
|
Underlying Free Cash Flow
|
|
|
$
|
956.7
|
|
|
|
$
|
892.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Included in net cash used in investing activities.
|
|
|
|
(2)
|
|
Included in net cash provided by operating activities and primarily
reflects termination fees received from MMI in addition to costs
paid for restructuring activities.
|
|
|
|
(3)
|
|
Included in net cash provided by operating activities and reflects
acquisition and integration costs paid.
|
|
|
|
(4)
|
|
Amounts represent our proportionate 42% share of the cash flow
impacts.
|
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC
Table 7: Underlying Net Income Attributable to
MillerCoors
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
U.S. GAAP: Net income
attributable to MillerCoors
|
|
|
$
|
213.3
|
|
|
|
$
|
237.1
|
|
|
|
$
|
1,326.2
|
|
|
|
$
|
1,270.5
|
Add: Special items, net of tax
|
|
|
—
|
|
|
|
4.8
|
|
|
|
1.4
|
|
|
|
19.8
|
Non-GAAP: Underlying net
income attributable to MillerCoors
|
|
|
$
|
213.3
|
|
|
|
$
|
241.9
|
|
|
|
$
|
1,327.6
|
|
|
|
$
|
1,290.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 8: Underlying Equity Income in MillerCoors
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
U.S. GAAP: Net Income
Attributable to MillerCoors
|
|
|
$
|
213.3
|
|
|
|
$
|
237.1
|
|
|
|
$
|
1,326.2
|
|
|
|
$
|
1,270.5
|
|
Multiply: MCBC economic interest
|
|
|
42
|
%
|
|
|
42
|
%
|
|
|
42
|
%
|
|
|
42
|
%
|
MCBC proportionate share of MillerCoors net income
|
|
|
$
|
89.6
|
|
|
|
$
|
99.6
|
|
|
|
$
|
557.0
|
|
|
|
$
|
533.6
|
|
Add: Amortization of the difference between MCBC
contributed cost basis and proportionate share of the
underlying equity in net assets of MillerCoors(1)
|
|
|
1.1
|
|
|
|
1.2
|
|
|
|
4.6
|
|
|
|
4.6
|
|
Add: Share-based compensation adjustment(2)
|
|
|
(0.7
|
)
|
|
|
(0.1
|
)
|
|
|
0.2
|
|
|
|
0.8
|
|
U.S. GAAP: Equity Income in
MillerCoors
|
|
|
$
|
90.0
|
|
|
|
$
|
100.7
|
|
|
|
$
|
561.8
|
|
|
|
$
|
539.0
|
|
Add: MCBC proportionate share of MillerCoors special
items, net of tax
|
|
|
—
|
|
|
|
2.0
|
|
|
|
0.6
|
|
|
|
8.3
|
|
Non-GAAP: Underlying Equity
Income in MillerCoors
|
|
|
$
|
90.0
|
|
|
|
$
|
102.7
|
|
|
|
$
|
562.4
|
|
|
|
$
|
547.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $661.6 million as of December 31, 2014. This basis
difference, with the exception of certain non-amortizing items
(goodwill, land, etc.), is being amortized as additional equity
income over the remaining useful lives of the contributed long-lived
amortizing assets.
|
|
|
|
(2)
|
|
The net adjustment is to eliminate all share-based compensation
impacts related to pre-existing SABMiller plc equity awards held by
former Miller Brewing Company employees now employed by MillerCoors.
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 9: Constant Currency Results: Constant
Currency Reporting Net Sales, U.S. GAAP Pretax Income
and Underlying Pretax Income
(Unaudited)
U.S. GAAP: Net Sales (In millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
Reported % Increase (Decrease)
|
|
|
Foreign Exchange Impact ($)
|
|
|
Constant Currency % Increase (Decrease)
|
Canada
|
|
|
$
|
423.1
|
|
|
|
$
|
463.3
|
|
|
|
(8.7
|
)%
|
|
|
$
|
(35.6
|
)
|
|
|
(1.0
|
)%
|
Europe
|
|
|
514.6
|
|
|
|
527.8
|
|
|
|
(2.5
|
)%
|
|
|
(25.6
|
)
|
|
|
2.3
|
%
|
MCI
|
|
|
37.0
|
|
|
|
38.2
|
|
|
|
(3.1
|
)%
|
|
|
(2.4
|
)
|
|
|
3.1
|
%
|
Corporate
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
(33.3
|
)%
|
|
|
—
|
|
|
|
(33.3
|
)%
|
Eliminations(1)
|
|
|
(1.1
|
)
|
|
|
(1.2
|
)
|
|
|
8.3
|
%
|
|
|
—
|
|
|
|
8.3
|
%
|
Molson Coors Consolidated Total
|
|
|
$
|
973.8
|
|
|
|
$
|
1,028.4
|
|
|
|
(5.3
|
)%
|
|
|
$
|
(63.6
|
)
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects intercompany sales from Europe to MCI, and the offset is
included within MCI cost of goods sold. These amounts are eliminated
in the consolidated totals.
|
|
|
|
|
|
|
|
U.S. GAAP: Pretax Income (In millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
|
|
Reported % Increase (Decrease)
|
|
|
Foreign Exchange Impact ($)
|
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
|
$
|
90.0
|
|
|
|
$
|
100.7
|
|
|
|
(10.6
|
)%
|
|
|
$
|
—
|
|
|
|
(10.6
|
)%
|
Canada
|
|
|
76.2
|
|
|
|
62.7
|
|
|
|
21.5
|
%
|
|
|
(4.8
|
)
|
|
|
29.2
|
%
|
Europe
|
|
|
31.7
|
|
|
|
31.1
|
|
|
|
1.9
|
%
|
|
|
(1.8
|
)
|
|
|
7.7
|
%
|
MCI
|
|
|
(3.9
|
)
|
|
|
(0.2
|
)
|
|
|
N/M
|
|
|
(0.5
|
)
|
|
|
N/M
|
Corporate
|
|
|
(73.4
|
)
|
|
|
(42.2
|
)
|
|
|
(73.9
|
)%
|
|
|
(3.8
|
)
|
|
|
(64.9
|
)%
|
Molson Coors Consolidated Total
|
|
|
$
|
120.6
|
|
|
|
$
|
152.1
|
|
|
|
(20.7
|
)%
|
|
|
$
|
(10.9
|
)
|
|
|
(13.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful
(1) Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
|
|
Reported % Increase (Decrease)
|
|
|
Foreign Exchange Impact ($)
|
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
|
$
|
90.0
|
|
|
|
$
|
102.7
|
|
|
|
(12.4
|
)%
|
|
|
$
|
—
|
|
|
|
(12.4
|
)%
|
Canada
|
|
|
76.2
|
|
|
|
88.7
|
|
|
|
(14.1
|
)%
|
|
|
(4.7
|
)
|
|
|
(8.8
|
)%
|
Europe
|
|
|
38.3
|
|
|
|
44.9
|
|
|
|
(14.7
|
)%
|
|
|
(2.1
|
)
|
|
|
(10.0
|
)%
|
MCI
|
|
|
(3.9
|
)
|
|
|
(5.8
|
)
|
|
|
32.8
|
%
|
|
|
(0.5
|
)
|
|
|
41.4
|
%
|
Corporate
|
|
|
(65.8
|
)
|
|
|
(59.8
|
)
|
|
|
(10.0
|
)%
|
|
|
(3.8
|
)
|
|
|
(3.7
|
)%
|
Molson Coors Consolidated Total
|
|
|
$
|
134.8
|
|
|
|
$
|
170.7
|
|
|
|
(21.0
|
)%
|
|
|
$
|
(11.1
|
)
|
|
|
(14.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
|
U.S. GAAP: Net Sales (In millions)
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
Reported % Increase (Decrease)
|
|
|
Foreign Exchange Impact ($)
|
|
|
Constant Currency % Increase (Decrease)
|
Canada
|
|
|
$
|
1,793.9
|
|
|
|
$
|
1,943.8
|
|
|
|
(7.7
|
)%
|
|
|
$
|
(125.9
|
)
|
|
|
(1.2
|
)%
|
Europe
|
|
|
2,200.3
|
|
|
|
2,128.3
|
|
|
|
3.4
|
%
|
|
|
57.7
|
|
|
|
0.7
|
%
|
MCI
|
|
|
156.3
|
|
|
|
137.6
|
|
|
|
13.6
|
%
|
|
|
(5.3
|
)
|
|
|
17.4
|
%
|
Corporate
|
|
|
1.1
|
|
|
|
1.2
|
|
|
|
(8.3
|
)%
|
|
|
—
|
|
|
|
(8.3
|
)%
|
Eliminations(1)
|
|
|
(5.3
|
)
|
|
|
(4.8
|
)
|
|
|
(10.4
|
)%
|
|
|
—
|
|
|
|
(10.4
|
)%
|
Molson Coors Consolidated Total
|
|
|
$
|
4,146.3
|
|
|
|
$
|
4,206.1
|
|
|
|
(1.4
|
)%
|
|
|
$
|
(73.5
|
)
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects intercompany sales from Europe to MCI, and the offset is
included within MCI cost of goods sold. These amounts are
eliminated in the consolidated totals.
|
|
|
|
|
|
|
|
U.S. GAAP: Pretax Income (In millions)
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
Reported % Increase (Decrease)
|
|
|
Foreign Exchange Impact ($)
|
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
|
$
|
561.8
|
|
|
|
$
|
539.0
|
|
|
|
4.2
|
%
|
|
|
$
|
—
|
|
|
|
4.2
|
%
|
Canada
|
|
|
406.8
|
|
|
|
363.3
|
|
|
|
12.0
|
%
|
|
|
(22.9
|
)
|
|
|
18.3
|
%
|
Europe
|
|
|
(111.9
|
)
|
|
|
34.3
|
|
|
|
N/M
|
|
|
8.8
|
|
|
|
N/M
|
MCI
|
|
|
(13.3
|
)
|
|
|
(11.8
|
)
|
|
|
(12.7
|
)%
|
|
|
(0.6
|
)
|
|
|
(7.6
|
)%
|
Corporate
|
|
|
(257.1
|
)
|
|
|
(270.3
|
)
|
|
|
4.9
|
%
|
|
|
(6.5
|
)
|
|
|
7.3
|
%
|
Molson Coors Consolidated Total
|
|
|
$
|
586.3
|
|
|
|
$
|
654.5
|
|
|
|
(10.4
|
)%
|
|
|
$
|
(21.2
|
)
|
|
|
(7.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
Reported % Increase (Decrease)
|
|
|
Foreign Exchange Impact ($)
|
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
|
$
|
562.4
|
|
|
|
$
|
547.3
|
|
|
|
2.8
|
%
|
|
|
$
|
—
|
|
|
|
2.8
|
%
|
Canada
|
|
|
365.0
|
|
|
|
392.8
|
|
|
|
(7.1
|
)%
|
|
|
(18.0
|
)
|
|
|
(2.5
|
)%
|
Europe
|
|
|
242.7
|
|
|
|
213.3
|
|
|
|
13.8
|
%
|
|
|
7.7
|
|
|
|
10.2
|
%
|
MCI
|
|
|
(13.3
|
)
|
|
|
(16.2
|
)
|
|
|
17.9
|
%
|
|
|
(0.6
|
)
|
|
|
21.6
|
%
|
Corporate
|
|
|
(253.1
|
)
|
|
|
(271.8
|
)
|
|
|
6.9
|
%
|
|
|
(6.9
|
)
|
|
|
9.4
|
%
|
Molson Coors Consolidated Total
|
|
|
$
|
903.7
|
|
|
|
$
|
865.4
|
|
|
|
4.4
|
%
|
|
|
$
|
(17.8
|
)
|
|
|
6.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant currency is a non-GAAP measure utilized by Molson Coors
management to measure performance, excluding the impact of foreign
currency movements. As we operate in various foreign countries where the
local currency may strengthen or weaken significantly versus the U.S.
dollar or other currencies used in operations, we utilize a constant
currency measure as an additional metric to evaluate the underlying
performance of each business without consideration of foreign currency
movements. This information is non-GAAP and should be viewed as a
supplement to (not a substitute for) our reported results of operations
under U.S. GAAP. We calculate the impact of foreign exchange on net
sales, pretax income and non-GAAP underlying pretax income using the
following steps:
1. Multiply our current period local currency operating results (that
also include the impact of the comparable prior-period currency hedging
activities) by the weighted average foreign exchange rates used to
translate the financial statements in the comparable prior year period.
The result is the current-period operating results in U.S. dollars, as
if foreign exchange rates had not changed from the prior-year period.
2. Subtract the result in #1 from the unadjusted current-period reported
operating result in U.S. dollars (U.S. GAAP measure). This difference
reflects the impact of foreign currency translational gains/losses
included in the current-period results.
3. Determine the amount of actual non-operating foreign currency
gains/losses realized as a result of hedging activities and activities
transacted in a currency other than the functional currency of each
legal entity.
4. Add the results of steps 2 and 3 above. This sum equals the total
impact of foreign currency translational gains/losses and realized
gains/losses from foreign currency transactions. This is the value shown
in the “Foreign Exchange $ Impact” column within the table above.
Worldwide Beer Volume
Molson Coors Brewing Company and Subsidiaries
Table 10: Worldwide Beer Volume
(In millions of hectoliters) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
% Change
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
% Change
|
Financial Volume
|
|
|
7.118
|
|
|
|
7.059
|
|
|
|
0.8
|
%
|
|
|
|
30.445
|
|
|
|
30.521
|
|
|
|
(0.2
|
)%
|
Royalty Volume
|
|
|
0.389
|
|
|
|
0.319
|
|
|
|
21.9
|
%
|
|
|
|
1.580
|
|
|
|
1.353
|
|
|
|
16.8
|
%
|
Owned Volume
|
|
|
7.507
|
|
|
|
7.378
|
|
|
|
1.7
|
%
|
|
|
|
32.025
|
|
|
|
31.874
|
|
|
|
0.5
|
%
|
Proportionate Share of Equity Investment Sales-to-Retail(1)
|
|
|
6.530
|
|
|
|
6.701
|
|
|
|
(2.6
|
)%
|
|
|
|
26.939
|
|
|
|
27.864
|
|
|
|
(3.3
|
)%
|
Total Worldwide Beer Volume
|
|
|
14.037
|
|
|
|
14.079
|
|
|
|
(0.3
|
)%
|
|
|
|
58.964
|
|
|
|
59.738
|
|
|
|
(1.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects the addition of Molson Coors Brewing Company's
proportionate share of equity method investments sales to retail for
the periods presented.
|
|
|
|
U.S. GAAP Measures
Molson Coors Brewing Company and Subsidiaries
Table 11: Consolidated Statements of Operations
($ In millions, except per share data) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
Volume in hectoliters
|
|
|
7.118
|
|
|
|
7.059
|
|
|
|
30.445
|
|
|
|
30.521
|
|
Sales
|
|
|
$
|
1,413.3
|
|
|
|
$
|
1,489.7
|
|
|
|
$
|
5,927.5
|
|
|
|
$
|
5,999.6
|
|
Excise taxes
|
|
|
(439.5
|
)
|
|
|
(461.3
|
)
|
|
|
(1,781.2
|
)
|
|
|
(1,793.5
|
)
|
Net sales
|
|
|
973.8
|
|
|
|
1,028.4
|
|
|
|
4,146.3
|
|
|
|
4,206.1
|
|
Cost of goods sold
|
|
|
(620.2
|
)
|
|
|
(644.4
|
)
|
|
|
(2,493.3
|
)
|
|
|
(2,545.6
|
)
|
Gross profit
|
|
|
353.6
|
|
|
|
384.0
|
|
|
|
1,653.0
|
|
|
|
1,660.5
|
|
Marketing, general and administrative expenses
|
|
|
(282.6
|
)
|
|
|
(289.6
|
)
|
|
|
(1,163.9
|
)
|
|
|
(1,193.8
|
)
|
Special items, net
|
|
|
(6.6
|
)
|
|
|
(34.2
|
)
|
|
|
(324.4
|
)
|
|
|
(200.0
|
)
|
Equity income in MillerCoors
|
|
|
90.0
|
|
|
|
100.7
|
|
|
|
561.8
|
|
|
|
539.0
|
|
Operating income (loss)
|
|
|
154.4
|
|
|
|
160.9
|
|
|
|
726.5
|
|
|
|
805.7
|
|
Other income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(33.6
|
)
|
|
|
(39.0
|
)
|
|
|
(145.0
|
)
|
|
|
(183.8
|
)
|
Interest income
|
|
|
2.8
|
|
|
|
2.8
|
|
|
|
11.3
|
|
|
|
13.7
|
|
Other income (expense), net
|
|
|
(3.0
|
)
|
|
|
27.4
|
|
|
|
(6.5
|
)
|
|
|
18.9
|
|
Total other income (expense), net
|
|
|
(33.8
|
)
|
|
|
(8.8
|
)
|
|
|
(140.2
|
)
|
|
|
(151.2
|
)
|
Income (loss) from continuing operations before income taxes
|
|
|
120.6
|
|
|
|
152.1
|
|
|
|
586.3
|
|
|
|
654.5
|
|
Income tax benefit (expense)
|
|
|
(27.1
|
)
|
|
|
(14.8
|
)
|
|
|
(69.0
|
)
|
|
|
(84.0
|
)
|
Net Income (loss) from continuing operations
|
|
|
93.5
|
|
|
|
137.3
|
|
|
|
517.3
|
|
|
|
570.5
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
0.9
|
|
|
|
0.3
|
|
|
|
0.5
|
|
|
|
2.0
|
|
Net income (loss) including noncontrolling interests
|
|
|
94.4
|
|
|
|
137.6
|
|
|
|
517.8
|
|
|
|
572.5
|
|
Net (income) loss attributable to noncontrolling interests
|
|
|
(0.3
|
)
|
|
|
(0.4
|
)
|
|
|
(3.8
|
)
|
|
|
(5.2
|
)
|
Net income (loss) attributable to MCBC
|
|
|
$
|
94.1
|
|
|
|
$
|
137.2
|
|
|
|
$
|
514.0
|
|
|
|
$
|
567.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.50
|
|
|
|
$
|
0.74
|
|
|
|
$
|
2.78
|
|
|
|
$
|
3.09
|
|
From discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Basic net income per share
|
|
|
$
|
0.50
|
|
|
|
$
|
0.74
|
|
|
|
$
|
2.78
|
|
|
|
$
|
3.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.50
|
|
|
|
$
|
0.74
|
|
|
|
$
|
2.76
|
|
|
|
$
|
3.07
|
|
From discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Diluted net income per share
|
|
|
$
|
0.50
|
|
|
|
$
|
0.74
|
|
|
|
$
|
2.76
|
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
|
|
185.3
|
|
|
|
183.9
|
|
|
|
184.9
|
|
|
|
183.0
|
|
Weighted average shares - diluted
|
|
|
186.5
|
|
|
|
185.0
|
|
|
|
186.1
|
|
|
|
184.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.32
|
|
|
|
$
|
1.48
|
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to MCBC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, net of tax
|
|
|
$
|
93.2
|
|
|
|
$
|
136.9
|
|
|
|
$
|
513.5
|
|
|
|
$
|
565.3
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
0.9
|
|
|
|
0.3
|
|
|
|
0.5
|
|
|
|
2.0
|
|
Net income (loss) attributable to MCBC
|
|
|
$
|
94.1
|
|
|
|
$
|
137.2
|
|
|
|
$
|
514.0
|
|
|
|
$
|
567.3
|
|
(1) Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 12: Canada Segment Results of Operations
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
Volume in hectoliters
|
|
|
1.947
|
|
|
|
2.015
|
|
|
|
8.075
|
|
|
|
8.332
|
|
Sales
|
|
|
$
|
561.9
|
|
|
|
$
|
614.5
|
|
|
|
$
|
2,363.4
|
|
|
|
$
|
2,575.1
|
|
Excise taxes
|
|
|
(138.8
|
)
|
|
|
(151.2
|
)
|
|
|
(569.5
|
)
|
|
|
(631.3
|
)
|
Net sales
|
|
|
423.1
|
|
|
|
463.3
|
|
|
|
1,793.9
|
|
|
|
1,943.8
|
|
Cost of goods sold
|
|
|
(252.8
|
)
|
|
|
(264.5
|
)
|
|
|
(1,021.6
|
)
|
|
|
(1,104.3
|
)
|
Gross profit
|
|
|
170.3
|
|
|
|
198.8
|
|
|
|
772.3
|
|
|
|
839.5
|
|
Marketing, general and administrative expenses
|
|
|
(95.7
|
)
|
|
|
(111.4
|
)
|
|
|
(412.5
|
)
|
|
|
(448.0
|
)
|
Special items, net
|
|
|
—
|
|
|
|
(26.0
|
)
|
|
|
41.8
|
|
|
|
(30.7
|
)
|
Operating income (loss)
|
|
|
74.6
|
|
|
|
61.4
|
|
|
|
401.6
|
|
|
|
360.8
|
|
Other income (expense), net
|
|
|
1.6
|
|
|
|
1.3
|
|
|
|
5.2
|
|
|
|
2.5
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
76.2
|
|
|
|
$
|
62.7
|
|
|
|
$
|
406.8
|
|
|
|
$
|
363.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 13: Europe Results of Operations
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
Volume in hectoliters(2)
|
|
|
4.860
|
|
|
|
4.773
|
|
|
|
21.083
|
|
|
|
21.146
|
|
Sales(2)
|
|
|
$
|
809.6
|
|
|
|
$
|
831.8
|
|
|
|
$
|
3,384.1
|
|
|
|
$
|
3,265.4
|
|
Excise taxes
|
|
|
(295.0
|
)
|
|
|
(304.0
|
)
|
|
|
(1,183.8
|
)
|
|
|
(1,137.1
|
)
|
Net sales(2)
|
|
|
514.6
|
|
|
|
527.8
|
|
|
|
2,200.3
|
|
|
|
2,128.3
|
|
Cost of goods sold
|
|
|
(338.7
|
)
|
|
|
(355.6
|
)
|
|
|
(1,375.8
|
)
|
|
|
(1,357.5
|
)
|
Gross profit
|
|
|
175.9
|
|
|
|
172.2
|
|
|
|
824.5
|
|
|
|
770.8
|
|
Marketing, general and administrative expenses
|
|
|
(138.1
|
)
|
|
|
(132.7
|
)
|
|
|
(573.1
|
)
|
|
|
(569.5
|
)
|
Special items, net
|
|
|
(6.6
|
)
|
|
|
(12.8
|
)
|
|
|
(365.9
|
)
|
|
|
(172.4
|
)
|
Operating income (loss)
|
|
|
31.2
|
|
|
|
26.7
|
|
|
|
(114.5
|
)
|
|
|
28.9
|
|
Interest income, net
|
|
|
1.0
|
|
|
|
1.3
|
|
|
|
4.4
|
|
|
|
4.9
|
|
Other income (expense), net
|
|
|
(0.5
|
)
|
|
|
3.1
|
|
|
|
(1.8
|
)
|
|
|
0.5
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
31.7
|
|
|
|
$
|
31.1
|
|
|
|
$
|
(111.9
|
)
|
|
|
$
|
34.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
(2)
|
|
Gross segment sales include intercompany sales to MCI consisting of
$1.1 million of net sales and 0.011 million hectoliters and $5.3
million of net sales and 0.057 million hectoliters for the three and
twelve months ended December 31, 2014, respectively. Gross segment
sales include intercompany sales to MCI consisting of $1.2 million
of net sales and 0.014 million hectoliters and 4.8 million of net
sales and 0.066 million hectoliters for the three and twelve months
ended December 31, 2013, respectively. The offset is included within
MCI cost of goods sold. These amounts are eliminated in the
consolidated totals.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 14: Molson Coors International Results of
Operations
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
Volume in hectoliters
|
|
|
0.322
|
|
|
|
0.285
|
|
|
|
1.344
|
|
|
|
1.109
|
|
Sales
|
|
|
$
|
42.7
|
|
|
|
$
|
44.3
|
|
|
|
$
|
184.2
|
|
|
|
$
|
162.7
|
|
Excise taxes
|
|
|
(5.7
|
)
|
|
|
(6.1
|
)
|
|
|
(27.9
|
)
|
|
|
(25.1
|
)
|
Net sales
|
|
|
37.0
|
|
|
|
38.2
|
|
|
|
156.3
|
|
|
|
137.6
|
|
Cost of goods sold(2)
|
|
|
(22.3
|
)
|
|
|
(23.6
|
)
|
|
|
(96.5
|
)
|
|
|
(85.0
|
)
|
Gross profit
|
|
|
14.7
|
|
|
|
14.6
|
|
|
|
59.8
|
|
|
|
52.6
|
|
Marketing, general and administrative expenses
|
|
|
(18.6
|
)
|
|
|
(20.5
|
)
|
|
|
(73.1
|
)
|
|
|
(68.9
|
)
|
Special items, net
|
|
|
—
|
|
|
|
5.6
|
|
|
|
—
|
|
|
|
4.4
|
|
Operating income (loss)
|
|
|
(3.9
|
)
|
|
|
(0.3
|
)
|
|
|
(13.3
|
)
|
|
|
(11.9
|
)
|
Other income (expense), net
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
0.1
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
(3.9
|
)
|
|
|
$
|
(0.2
|
)
|
|
|
$
|
(13.3
|
)
|
|
|
$
|
(11.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Amounts have been adjusted to reflect the change in interim
accounting for advertising expenses.
|
|
|
|
(2)
|
|
Reflects gross segment amounts, and includes intercompany cost of
goods sold from Europe of $1.1 million and $5.3 million for the
three and twelve months ended December 31, 2014, respectively, and
$1.2 million and $4.8 million for the three and twelve months ended
December 31, 2013, respectively. The offset is included within
Europe net sales. These amounts are eliminated in the consolidated
totals.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 15: Corporate Results of Operations
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
Volume in hectoliters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Sales
|
|
|
$
|
0.2
|
|
|
|
$
|
0.3
|
|
|
|
$
|
1.1
|
|
|
|
$
|
1.2
|
|
Excise taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net sales
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
1.1
|
|
|
|
1.2
|
|
Cost of goods sold
|
|
|
(7.5
|
)
|
|
|
(1.9
|
)
|
|
|
(4.7
|
)
|
|
|
(3.6
|
)
|
Gross profit
|
|
|
(7.3
|
)
|
|
|
(1.6
|
)
|
|
|
(3.6
|
)
|
|
|
(2.4
|
)
|
Marketing, general and administrative expenses
|
|
|
(30.2
|
)
|
|
|
(25.0
|
)
|
|
|
(105.2
|
)
|
|
|
(107.4
|
)
|
Special items, net
|
|
|
—
|
|
|
|
(1.0
|
)
|
|
|
(0.3
|
)
|
|
|
(1.3
|
)
|
Operating income (loss)
|
|
|
(37.5
|
)
|
|
|
(27.6
|
)
|
|
|
(109.1
|
)
|
|
|
(111.1
|
)
|
Interest expense, net
|
|
|
(31.8
|
)
|
|
|
(37.5
|
)
|
|
|
(138.1
|
)
|
|
|
(175.0
|
)
|
Other income (expense), net
|
|
|
(4.1
|
)
|
|
|
22.9
|
|
|
|
(9.9
|
)
|
|
|
15.8
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
(73.4
|
)
|
|
|
$
|
(42.2
|
)
|
|
|
$
|
(257.1
|
)
|
|
|
$
|
(270.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC (1)
Table 16: Results of Operations
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
Volume in hectoliters(2)
|
|
|
16.559
|
|
|
|
17.080
|
|
|
|
72.701
|
|
|
|
74.274
|
|
Sales
|
|
|
$
|
2,039.1
|
|
|
|
$
|
2,068.1
|
|
|
|
$
|
8,990.4
|
|
|
|
$
|
8,969.8
|
|
Excise taxes
|
|
|
(257.3
|
)
|
|
|
(265.6
|
)
|
|
|
(1,142.0
|
)
|
|
|
(1,169.0
|
)
|
Net sales
|
|
|
1,781.8
|
|
|
|
1,802.5
|
|
|
|
7,848.4
|
|
|
|
7,800.8
|
|
Cost of goods sold
|
|
|
(1,129.6
|
)
|
|
|
(1,130.9
|
)
|
|
|
(4,743.8
|
)
|
|
|
(4,723.7
|
)
|
Gross profit
|
|
|
652.2
|
|
|
|
671.6
|
|
|
|
3,104.6
|
|
|
|
3,077.1
|
|
Marketing, general and administrative expenses
|
|
|
(434.1
|
)
|
|
|
(426.3
|
)
|
|
|
(1,755.9
|
)
|
|
|
(1,769.9
|
)
|
Special items, net
|
|
|
—
|
|
|
|
(4.8
|
)
|
|
|
(1.4
|
)
|
|
|
(19.8
|
)
|
Operating income
|
|
|
218.1
|
|
|
|
240.5
|
|
|
|
1,347.3
|
|
|
|
1,287.4
|
|
Interest income (expense), net
|
|
|
(0.1
|
)
|
|
|
(0.2
|
)
|
|
|
(1.1
|
)
|
|
|
(1.6
|
)
|
Other income (expense), net
|
|
|
1.2
|
|
|
|
0.4
|
|
|
|
5.5
|
|
|
|
2.0
|
|
Income before income taxes
|
|
|
219.2
|
|
|
|
240.7
|
|
|
|
1,351.7
|
|
|
|
1,287.8
|
|
Income tax expense
|
|
|
(1.5
|
)
|
|
|
(0.8
|
)
|
|
|
(6.1
|
)
|
|
|
(3.9
|
)
|
Net income
|
|
|
217.7
|
|
|
|
239.9
|
|
|
|
1,345.6
|
|
|
|
1,283.9
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
(4.4
|
)
|
|
|
(2.8
|
)
|
|
|
(19.4
|
)
|
|
|
(13.4
|
)
|
Net income attributable to MillerCoors
|
|
|
$
|
213.3
|
|
|
|
$
|
237.1
|
|
|
|
$
|
1,326.2
|
|
|
|
$
|
1,270.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Economic ownership of MillerCoors is 58% held by SABMiller and 42%
held by Molson Coors. See Table 8 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).
|
|
|
|
(2)
|
|
Includes contract brewing and company-owned-distributor sales which
are excluded from our worldwide beer volume calculation.
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 17: Consolidated Balance Sheets ($
In millions, except par value) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
624.6
|
|
|
|
$
|
442.3
|
|
Accounts and other receivables:
|
|
|
|
|
|
|
|
|
Trade, less allowance for doubtful accounts of $11.5 and $13.6,
respectively
|
|
|
488.9
|
|
|
|
572.8
|
|
Affiliate receivables
|
|
|
38.8
|
|
|
|
30.8
|
|
Other receivables, less allowance for doubtful accounts of $0.8 and
$1.1, respectively
|
|
|
94.0
|
|
|
|
124.4
|
|
Inventories:
|
|
|
|
|
|
|
|
|
Finished
|
|
|
135.3
|
|
|
|
133.2
|
|
In process
|
|
|
20.7
|
|
|
|
23.3
|
|
Raw materials
|
|
|
34.5
|
|
|
|
36.9
|
|
Packaging materials
|
|
|
11.7
|
|
|
|
11.9
|
|
Total inventories
|
|
|
202.2
|
|
|
|
205.3
|
|
Maintenance and operating supplies, less allowance for obsolete
supplies of $5.0 and $6.8, respectively
|
|
|
24.0
|
|
|
|
29.6
|
|
Other current assets
|
|
|
79.2
|
|
|
|
82.1
|
|
Deferred tax assets
|
|
|
27.2
|
|
|
|
50.4
|
|
Total current assets
|
|
|
1,578.9
|
|
|
|
1,537.7
|
|
Properties, less accumulated depreciation of $1,343.2 and $1,458.7,
respectively
|
|
|
1,798.0
|
|
|
|
1,970.1
|
|
Goodwill
|
|
|
2,191.6
|
|
|
|
2,418.7
|
|
Other intangibles, less accumulated amortization of $359.6 and
$513.7, respectively
|
|
|
5,755.8
|
|
|
|
6,825.1
|
|
Investment in MillerCoors
|
|
|
2,388.6
|
|
|
|
2,506.5
|
|
Deferred tax assets
|
|
|
58.2
|
|
|
|
38.3
|
|
Notes receivable, less allowance for doubtful accounts of $1.6 and
$2.8, respectively
|
|
|
21.6
|
|
|
|
23.6
|
|
Other assets
|
|
|
203.6
|
|
|
|
260.1
|
|
Total assets
|
|
|
$
|
13,996.3
|
|
|
|
$
|
15,580.1
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and other current liabilities (includes affiliate
payable amounts of $21.4 and $22.8, respectively)
|
|
|
$
|
1,305.0
|
|
|
|
$
|
1,429.6
|
|
Deferred tax liabilities
|
|
|
164.8
|
|
|
|
138.1
|
|
Current portion of long-term debt and short-term borrowings
|
|
|
849.4
|
|
|
|
586.9
|
|
Discontinued operations
|
|
|
6.1
|
|
|
|
6.8
|
|
Total current liabilities
|
|
|
2,325.3
|
|
|
|
2,161.4
|
|
Long-term debt
|
|
|
2,337.1
|
|
|
|
3,213.0
|
|
Pension and post-retirement benefits
|
|
|
542.9
|
|
|
|
462.6
|
|
Deferred tax liabilities
|
|
|
784.3
|
|
|
|
911.4
|
|
Unrecognized tax benefits
|
|
|
25.4
|
|
|
|
107.1
|
|
Other liabilities
|
|
|
79.7
|
|
|
|
77.2
|
|
Discontinued operations
|
|
|
15.5
|
|
|
|
17.3
|
|
Total liabilities
|
|
|
6,110.2
|
|
|
|
6,950.0
|
|
Molson Coors Brewing Company stockholders' equity
|
|
|
|
|
|
|
|
|
Capital stock:
|
|
|
|
|
|
|
|
|
Preferred stock, no par value (authorized: 25.0 shares; none issued)
|
|
|
—
|
|
|
|
—
|
|
Class A common stock, $0.01 par value (authorized: 500.0 shares;
issued and outstanding: 2.6 shares and 2.6 shares, respectively)
|
|
|
—
|
|
|
|
—
|
|
Class B common stock, $0.01 par value (authorized: 500.0 shares;
issued: 169.9 shares and 167.2 shares, respectively)
|
|
|
1.7
|
|
|
|
1.7
|
|
Class A exchangeable shares, no par value (issued and outstanding:
2.9 shares and 2.9 shares, respectively)
|
|
|
108.5
|
|
|
|
108.5
|
|
Class B exchangeable shares, no par value (issued and outstanding:
17.6 shares and 19.0 shares, respectively)
|
|
|
661.5
|
|
|
|
714.1
|
|
Paid-in capital
|
|
|
3,871.2
|
|
|
|
3,747.6
|
|
Retained earnings
|
|
|
4,439.9
|
|
|
|
4,199.5
|
|
Accumulated other comprehensive income (loss)
|
|
|
(898.4
|
)
|
|
|
154.9
|
|
Class B common stock held in treasury at cost (7.5 shares and 7.5
shares, respectively)
|
|
|
(321.1
|
)
|
|
|
(321.1
|
)
|
Total Molson Coors Brewing Company stockholders' equity
|
|
|
7,863.3
|
|
|
|
8,605.2
|
|
Noncontrolling interests
|
|
|
22.8
|
|
|
|
24.9
|
|
Total equity
|
|
|
7,886.1
|
|
|
|
8,630.1
|
|
Total liabilities and equity
|
|
|
$
|
13,996.3
|
|
|
|
$
|
15,580.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 18: Consolidated Statements of Cash Flows
($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
|
|
$
|
517.8
|
|
|
|
$
|
572.5
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
313.0
|
|
|
|
320.5
|
|
Amortization of debt issuance costs and discounts
|
|
|
7.0
|
|
|
|
20.3
|
|
Share-based compensation
|
|
|
23.5
|
|
|
|
19.5
|
|
Loss (gain) on sale or impairment of properties and other assets, net
|
|
|
375.5
|
|
|
|
164.0
|
|
Deferred income taxes
|
|
|
0.2
|
|
|
|
(17.6
|
)
|
Equity income in MillerCoors
|
|
|
(561.8
|
)
|
|
|
(539.0
|
)
|
Distributions from MillerCoors
|
|
|
561.8
|
|
|
|
539.0
|
|
Equity in net (income) loss of other unconsolidated affiliates
|
|
|
1.7
|
|
|
|
(19.1
|
)
|
Distributions from other unconsolidated affiliates
|
|
|
15.4
|
|
|
|
13.0
|
|
Excess tax benefits from share-based compensation
|
|
|
(8.2
|
)
|
|
|
(7.7
|
)
|
Unrealized (gain) loss on foreign currency fluctuations and
derivative instruments, net
|
|
|
12.2
|
|
|
|
8.4
|
|
Change in current assets and liabilities (net of assets acquired and
liabilities assumed in business combinations) and other:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
22.3
|
|
|
|
70.4
|
|
Inventories
|
|
|
(16.5
|
)
|
|
|
4.2
|
|
Payables and other current liabilities
|
|
|
52.7
|
|
|
|
178.6
|
|
Other assets and other liabilities
|
|
|
(43.5
|
)
|
|
|
(156.8
|
)
|
(Gain) loss from discontinued operations
|
|
|
(0.5
|
)
|
|
|
(2.0
|
)
|
Net cash provided by operating activities
|
|
|
1,272.6
|
|
|
|
1,168.2
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Additions to properties
|
|
|
(259.5
|
)
|
|
|
(293.9
|
)
|
Proceeds from sales of properties and other assets
|
|
|
8.8
|
|
|
|
53.6
|
|
Investment in MillerCoors
|
|
|
(1,388.1
|
)
|
|
|
(1,186.5
|
)
|
Return of capital from MillerCoors
|
|
|
1,382.5
|
|
|
|
1,146.0
|
|
Return of capital from an unconsolidated affiliate
|
|
|
15.8
|
|
|
|
—
|
|
Loan repayments
|
|
|
11.0
|
|
|
|
10.6
|
|
Loan advances
|
|
|
(9.9
|
)
|
|
|
(6.8
|
)
|
Net cash used in investing activities
|
|
|
(239.4
|
)
|
|
|
(277.0
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Exercise of stock options under equity compensation plans
|
|
|
44.4
|
|
|
|
88.8
|
|
Excess tax benefits from share-based compensation
|
|
|
8.2
|
|
|
|
7.7
|
|
Dividends paid
|
|
|
(273.6
|
)
|
|
|
(234.6
|
)
|
Dividends paid to noncontrolling interest holders
|
|
|
(4.1
|
)
|
|
|
(4.1
|
)
|
Payments for purchase of noncontrolling interest
|
|
|
(0.4
|
)
|
|
|
(0.7
|
)
|
Debt issuance costs
|
|
|
(1.9
|
)
|
|
|
(0.4
|
)
|
Payments on long-term debt and capital lease obligations
|
|
|
(63.0
|
)
|
|
|
(1,317.0
|
)
|
Proceeds from short-term borrowings
|
|
|
4.8
|
|
|
|
15.0
|
|
Payments on short-term borrowings
|
|
|
(11.4
|
)
|
|
|
(15.2
|
)
|
Proceeds from settlement of derivative instruments
|
|
|
—
|
|
|
|
6.6
|
|
Payments on settlement of derivative instruments
|
|
|
(65.2
|
)
|
|
|
(119.4
|
)
|
Net proceeds from (payments on) revolving credit facilities and
commercial paper
|
|
|
(513.9
|
)
|
|
|
507.4
|
|
Change in overdraft balances and other
|
|
|
74.1
|
|
|
|
6.7
|
|
Net cash provided by (used in) financing activities
|
|
|
(802.0
|
)
|
|
|
(1,059.2
|
)
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
231.2
|
|
|
|
(168.0
|
)
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
(48.9
|
)
|
|
|
(13.7
|
)
|
Balance at beginning of year
|
|
|
442.3
|
|
|
|
624.0
|
|
Balance at end of year
|
|
|
$
|
624.6
|
|
|
|
$
|
442.3
|
|
|
|
|
|
|
|
|
|
|
|
|
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