Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported a 15.8
percent decrease in underlying after-tax income for the first quarter
2015, driven by unfavorable foreign currency and a higher tax rate that
was cycling a large discrete tax benefit a year ago. On a U.S. GAAP
basis, the company reported a 52.1 percent decline in net income to
$79.2 million, due to lower non-core income, a higher tax rate and
unfavorable currency movements this year.
Molson Coors President and Chief Executive Officer Mark Hunter said,
“Our results for the first quarter reflect continued volume pressure in
our largest markets and, as expected, a significant impact from foreign
currency movements, a higher tax rate, and terminations of business
contracts, all of which we discussed on our last earnings call. Despite
this backdrop, we remain resolute in our focus on building our brand
strength, achieving positive pricing, transforming our portfolio to the
above premium segment, improving commercial execution, embedding Profit
After Capital Charge throughout our organization, and delivering total
returns to our shareholders."
Mark continued, "Other first quarter highlights included our board’s
approval of a double-digit percentage increase in our quarterly dividend
and the authorization of a new stock repurchase program. We began to
implement this repurchase program early in the second quarter, with $50
million of cash used. We also completed the Mount Shivalik Breweries
acquisition last month in India. This bolt-on acquisition gives us
strong leadership positions in 3 states in India, one of the
fastest-growing beer markets in the world. It also adds the strong
regional Thunderbolt brand to our portfolio and gives us a platform to
expand our International brands in these states.”
Underlying EBITDA and Free Cash Flow
Underlying EBITDA was $228.6 million in the first quarter, a 9.0
percent decrease from a year ago.
Underlying free cash flow through the first quarter of 2015 was a
cash use of $162.2 million, due to seasonality. This represents an
increase in cash used of $97.6 million from the prior year, driven by
lower net income and a decreased benefit from working capital timing,
including higher cash taxes.
Worldwide Volume
Worldwide beer volume in the first quarter of 11.5 million hectoliters
decreased 3.5 percent.
Foreign Exchange
The Company’s first quarter underlying consolidated pretax income
includes the negative effect of foreign currency movements of $2.7
million in Canada, $1.6 million in International and $1.4 million in
Corporate. Foreign currency movements were $0.6 million positive in
Europe.
Effective Income Tax Rates
The Company’s first quarter effective income tax rate was 14 percent on
a reported and underlying basis. On an underlying basis, the effective
tax rate was 9 percentage points higher than prior year primarily due to
cycling of the release of valuation allowances in Europe and the
favorable resolution of uncertain tax positions in 2014.
Debt
Total debt at the end of the first quarter was $3.251 billion,
and cash and cash equivalents totaled $317.6 million, resulting in net
debt of $2.934 billion, which is $521.4 million lower than the prior
year.
First Quarter Business Segment Results
The following are the Company’s first quarter 2015 results by business
segment:
United States Business (MillerCoors)(2)
Molson Coors underlying U.S. segment equity income increased 5.0
percent to $129.3 million in the quarter.
MillerCoors Operating and Financial Highlights
MillerCoors underlying net income for the quarter increased 4.4
percent to $304.6 million, driven by higher net pricing, positive sales
mix and strong cost control.
MillerCoors domestic sales-to-retailers volume (STRs) declined 2.7
percent for the quarter. Domestic sales-to-wholesalers volume (STWs)
decreased 2.5 percent. Domestic net revenue per hectoliter, which
excludes contract brewing and company-owned-distributor sales, grew 1.6
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 1.5 percent. Contract brewing
volumes decreased 1.0 percent.
Cost of goods sold (COGS) per hectoliter increased 0.7 percent, driven
by brewery inflation, higher costs associated with brand innovation and
lower fixed-cost absorption due to lower volumes. Unfavorability was
partially offset by lower costs of malt and fuel, as well as by supply
chain cost savings. Marketing, general and administrative (MG&A) expense
decreased 2.3 percent, driven by lower general and administrative costs,
partially offset by higher marketing investment.
Depreciation and amortization expenses for MillerCoors were $76.7
million in the first quarter, and additions to tangible and intangible
assets totaled $76.3 million in the first quarter.
Canada Business
Canada underlying pretax income decreased 12.5 percent to $30.9
million in the quarter, with nearly all the decline due to negative
foreign currency movements and cycling the $1.4 million benefit of
equity earnings and administrative cost recoveries in 2014 related to
the Modelo joint venture, which was terminated at the end of February
2014. A decrease in the Canadian dollar versus the U.S. dollar resulted
in a $2.7 million negative foreign currency impact on underlying pretax
income in the quarter. On a constant-currency basis, underlying pretax
income decreased 4.8 percent.
STRs decreased 3.7 percent on a reported basis in the first quarter,
primarily due to our termination of the Modelo joint venture earlier
this year, along with competitive promotional activity across Canada.
Excluding the Modelo brands from our results this year and last year(3),
our market share declined approximately one point. Molson Coors Canada
sales volume(3) decreased 2.1 percent in the first quarter.
Net sales per hectoliter increased 3.8 percent in local currency, driven
by positive net pricing and mix.
COGS per hectoliter increased 5.6 percent in local currency, driven by
input cost inflation, volume deleverage, and distribution costs,
partially offset by cost savings. MG&A expense decreased 0.7 percent in
local currency, driven by a year-over-year shift in the timing of
marketing investments.
Europe Business
Europe underlying pretax income decreased 72.2 percent to $4.5
million in the quarter and decreased 75.9 percent on a constant currency
basis. Against a backdrop of weak consumer demand in some of our higher
revenue and profit markets and an industry volume mix shift to the
economy segment, we chose to pursue value ahead of volume. As a result,
our first quarter results reflect positive pricing in most of our Europe
markets, but also lower volume and negative sales mix. Higher severance
costs also contributed to lower underlying earnings versus a
particularly strong quarter a year ago. Foreign currency movements
positively impacted results by $0.6 million.
Molson Coors Europe sales volume decreased 7.0 percent, driven by weak
consumer demand in some of our largest markets, along with our decision
not to pursue volume at the expense of margins. The loss of the Modelo
brands in the U.K. in 2015 also contributed to lower volume. Europe net
sales per hectoliter decreased 0.1 percent in local currency, primarily
due to the loss of the Modelo brands in the U.K., negative geographic
mix and lower contract brewing volume, largely offset by positive
pricing.
COGS per hectoliter increased 1.0 percent in local currency, driven by a
mix shift to higher-cost packages and geographies.
MG&A expense increased 7.1 percent in local currency, entirely due to an
$11.3 million non-core gain last year related to the favorable
resolution of an indirect-tax audit, along with severance costs this
year. Excluding the non-core gain last year, local currency MG&A expense
decreased 1.6 percent, driven by the favorable quarterly timing of
marketing investments.
International Business
The International segment posted an underlying pretax loss of
$5.4 million in the first quarter, versus a loss of $3.0 million a year
ago, due to foreign currency movements and increased marketing
investments. Foreign currency movements negatively impacted results by
$1.6 million.
Total International sales volume, including royalty volume, increased
12.8 percent, primarily due to strong Coors Light growth in Latin
America and volume growth in India. Net sales per hectoliter decreased
20.0 percent, driven by foreign currency movements and geographic mix
changes.
COGS per hectoliter decreased 18.3 percent, due to geographic mix
changes and foreign currency movements. International MG&A expense
increased 1.4 percent, due to higher marketing investments.
Corporate
Underlying Corporate pretax loss totaled $57.3 million for the
first quarter, a $7.8 million decrease versus the prior year, driven by
lower underlying interest expense and incentive compensation.
Special and Other Non-Core Items(4)
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 $8.6 million. This pretax charge was primarily driven by $11.8
million of accelerated depreciation expense related to management's
decision to close our Alton brewing facility in the U.K. during 2015.
These charges were partially offset by income of $2.0 million related to
insurance proceeds received for business interruption as a result of
significant flooding in Czech Republic that occurred during the second
quarter of 2013. Additionally, we recorded $1.2 million of income
related to a change in estimate of previously expensed restructuring
costs in Europe.
MillerCoors did not incur special charges in the quarter.
2015 First 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 2015 first quarter 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 August 6, 2015. The Company will post this release and
related financial statements on its website today.
Upcoming Investor Webcasts
The Company will host online, real-time webcasts in May and June at the
following events:
Gavin Hattersley, Molson Coors CFO, will present at the Goldman Sachs
Global Staples Forum in New York on Tuesday, May 12, 2015, at 10:05 a.m.
Eastern Time.
The Company will host its Annual Meeting of Stockholders on Wednesday,
June 3, 2015, at 11:00 a.m. Eastern Time. The meeting will take place at
the Molson Coors Montreal Brewery.
The Company will host a presentation to institutional investors and
financial analysts in New York on Wednesday, June 17, 2015. The
presentation is scheduled for 1:30 p.m. to 3:00 p.m. Eastern Time.
Company executives participating in the New York presentation will
include Molson Coors CEO Mark Hunter and CFO Gavin Hattersley.
Live webcasts of all three investor events will be accessible via the
Molson Coors Brewing Company website, www.molsoncoors.com,
on the Investors page. An online replay of the presentation webcasts
will be available within two hours after the presentations.
Footnotes:
(1) The Company calculates non-GAAP underlying after-tax
income, underlying EBITDA and underlying free cash flow 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. In addition, constant currency results exclude the impact of
foreign currency movements. 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 first quarter
ended March 31, 2015, compared to the fiscal first quarter ended
March 31, 2014. 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. Some numbers may not sum due to
rounding.
(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) Excludes the Modelo brands from our Canada STR results in
first quarter 2014 and 2015. On February 28, 2014, our joint venture
that sold the Modelo brands in Canada was terminated, and control of the
brands reverted to Anheuser-Busch InBev.
(4) See table 2 for a full list of specials and other
non-core items.
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: Underlying After-Tax Income ($ In
millions, except per share data) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
|
March 31, 2014
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
|
$
|
79.2
|
|
|
|
$
|
165.3
|
|
Per diluted share
|
|
|
$
|
0.42
|
|
|
|
$
|
0.89
|
|
Add/(less):
|
|
|
|
|
|
|
Special items, net
|
|
|
8.6
|
|
|
|
(52.5
|
)
|
42% of MillerCoors special items, net of tax(1)
|
|
|
—
|
|
|
|
0.3
|
|
Unrealized mark-to-market (gains) and losses(2)
|
|
|
(0.1
|
)
|
|
|
0.4
|
|
Other non-core items(3)
|
|
|
—
|
|
|
|
(11.3
|
)
|
Tax effects on special and non-GAAP items
|
|
|
(1.6
|
)
|
|
|
—
|
|
Non-GAAP: Underlying
after-tax income
|
|
|
$
|
86.1
|
|
|
|
$
|
102.2
|
|
Per diluted share
|
|
|
$
|
0.46
|
|
|
|
$
|
0.55
|
|
|
|
(1)
|
|
Included in equity income in MillerCoors.
|
|
|
(2)
|
|
In Q1 2015, net unrealized gains of $0.1 million included in cost of
goods sold. In Q1 2014, $0.5 million gain included in other income
(expense), net, and net unrealized losses of $0.9 million included
in cost of goods sold.
|
|
|
(3)
|
|
In Q1 2014, $11.3 million gain included in marketing, general and
administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
2: Underlying Pretax Income (Loss) ($ In
millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
Business
|
|
Total
|
|
|
|
Canada
|
|
U.S.
|
|
Europe
|
|
MCI
|
|
Corporate
|
|
Consolidated
|
U.S. GAAP: 2015 1st Q
income (loss) from continuing operations before income taxes
|
|
|
$
|
30.9
|
|
|
$
|
129.3
|
|
|
$
|
(4.1
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
(57.2
|
)
|
|
$
|
93.5
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
Unrealized mark-to-market (gains) and losses(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Non-GAAP: 2015 1st Q
underlying pretax income (loss)
|
|
|
$
|
30.9
|
|
|
$
|
129.3
|
|
|
$
|
4.5
|
|
|
$
|
(5.4
|
)
|
|
$
|
(57.3
|
)
|
|
$
|
102.0
|
|
Percent change 2015 1st Q vs. 2014 1st Q underlying pretax income
(loss)
|
|
|
(12.5
|
)%
|
|
5.0
|
%
|
|
(72.2
|
)%
|
|
(80.0
|
)%
|
|
12.0
|
%
|
|
(4.2
|
)%
|
U.S. GAAP: 2014 1st Q
income (loss) from continuing operations before income taxes
|
|
|
$
|
88.3
|
|
|
$
|
122.8
|
|
|
$
|
27.0
|
|
|
$
|
(3.0
|
)
|
|
$
|
(65.5
|
)
|
|
$
|
169.6
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
|
(53.0
|
)
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
(52.5
|
)
|
42% of MillerCoors special items, net of tax(2)
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
Unrealized mark-to-market (gains) and losses(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
Other non-core items(3)
|
|
|
—
|
|
|
—
|
|
|
(11.3
|
)
|
|
—
|
|
|
—
|
|
|
(11.3
|
)
|
Non-GAAP: 2014 1st Q
underlying pretax income (loss)
|
|
|
$
|
35.3
|
|
|
$
|
123.1
|
|
|
$
|
16.2
|
|
|
$
|
(3.0
|
)
|
|
$
|
(65.1
|
)
|
|
$
|
106.5
|
|
|
|
(1)
|
|
In Q1 2015, net unrealized gains of $0.1 million included in cost of
goods sold. In Q1 2014, $0.5 million gain included in other income
(expense), net, and net unrealized losses of $0.9 million included
in cost of goods sold.
|
|
|
(2)
|
|
Included in equity income in MillerCoors.
|
|
|
(3)
|
|
In Q1 2014, $11.3 million gain included in marketing, general and
administrative expenses.
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
3: Underlying EBITDA ($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
|
% change
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
|
$
|
79.2
|
|
|
$
|
165.3
|
|
|
(52.1
|
)%
|
Add: Net income (loss) attributable to noncontrolling
interests
|
|
|
1.5
|
|
|
(0.5
|
)
|
|
N/M
|
U.S. GAAP: Net income
(loss) from continuing operations
|
|
|
$
|
80.7
|
|
|
$
|
164.8
|
|
|
(51.0
|
)%
|
Add: Interest expense (income), net
|
|
|
29.2
|
|
|
35.4
|
|
|
(17.5
|
)%
|
Add: Income tax expense (benefit)
|
|
|
12.8
|
|
|
4.8
|
|
|
166.7
|
%
|
Add: Depreciation and amortization
|
|
|
77.5
|
|
|
81.2
|
|
|
(4.6
|
)%
|
Adjustments included in underlying income(1)
|
|
|
8.5
|
|
|
(63.4
|
)
|
|
(113.4
|
)%
|
Adjustments to arrive at underlying EBITDA(2)
|
|
|
(11.8
|
)
|
|
(4.9
|
)
|
|
140.8
|
%
|
Adjustments to arrive at underlying EBITDA related to our investment
in MillerCoors(3)
|
|
|
31.7
|
|
|
33.3
|
|
|
(4.8
|
)%
|
Non-GAAP: Underlying EBITDA
|
|
|
$
|
228.6
|
|
|
$
|
251.2
|
|
|
(9.0
|
)%
|
N/M = Not meaningful
|
|
|
(1)
|
|
Includes adjustments to non-GAAP underlying income within the table
above related to special and non-core items.
|
|
|
(2)
|
|
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.
|
|
|
(3)
|
|
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
4: Underlying Free Cash Flow ($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
U.S. GAAP:
|
|
Net Cash Provided by (Used In) Operating Activities
|
|
|
$
|
(202.6
|
)
|
|
$
|
149.7
|
|
Less:
|
|
Additions to properties(1)
|
|
|
(73.7
|
)
|
|
(65.3
|
)
|
Less:
|
|
Investment in MillerCoors(1)
|
|
|
(417.9
|
)
|
|
(354.9
|
)
|
Add:
|
|
Return of capital from MillerCoors(1)
|
|
|
310.4
|
|
|
259.5
|
|
Add/(Less):
|
|
Cash impact of Special items(2)
|
|
|
(5.5
|
)
|
|
(57.1
|
)
|
Add:
|
|
Discretionary pension contribution(3)
|
|
|
227.1
|
|
|
—
|
|
Add:
|
|
MillerCoors investments in businesses(4)
|
|
|
—
|
|
|
1.3
|
|
Add:
|
|
MillerCoors cash impact of Special items(4)
|
|
|
—
|
|
|
2.2
|
|
Non-GAAP:
|
|
Underlying Free Cash Flow
|
|
|
$
|
(162.2
|
)
|
|
$
|
(64.6
|
)
|
|
|
(1)
|
|
Included in net cash used in investing activities.
|
|
|
(2)
|
|
Included in net cash provided by (used in) operating activities and
primarily reflects termination fees received in addition to costs
paid for restructuring activities.
|
|
|
(3)
|
|
Discretionary cash contribution of $227.1 million made to our U.K.
pension plan.
|
|
|
(4)
|
|
Amounts represent our proportionate 42% share of the cash flow
impacts.
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC Table 5: Underlying
Net Income Attributable to MillerCoors ($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
U.S. GAAP: Net income
attributable to MillerCoors
|
|
|
$
|
304.6
|
|
|
$
|
291.2
|
Add: Special items, net of tax
|
|
|
—
|
|
|
0.7
|
Non-GAAP: Underlying net
income attributable to MillerCoors
|
|
|
$
|
304.6
|
|
|
$
|
291.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
6: Underlying Equity Income in MillerCoors ($
In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
U.S. GAAP: Net Income
Attributable to MillerCoors
|
|
|
$
|
304.6
|
|
|
$
|
291.2
|
|
Multiply: MCBC economic interest
|
|
|
42
|
%
|
|
42
|
%
|
MCBC proportionate share of MillerCoors net income
|
|
|
$
|
127.9
|
|
|
$
|
122.3
|
|
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
|
|
|
1.1
|
|
Add: Share-based compensation adjustment(2)
|
|
|
0.3
|
|
|
(0.6
|
)
|
U.S. GAAP: Equity Income in
MillerCoors
|
|
|
$
|
129.3
|
|
|
$
|
122.8
|
|
Add: MCBC proportionate share of MillerCoors special items,
net of tax
|
|
|
—
|
|
|
0.3
|
|
Non-GAAP: Underlying Equity
Income in MillerCoors
|
|
|
$
|
129.3
|
|
|
$
|
123.1
|
|
|
|
(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 proportionate share of underlying equity (42%) of MillerCoors
(contributed by both Coors Brewing Company and Miller Brewing
Company) by $660.5 million as of March 31, 2015. This basis
difference, with the exception of certain non-amortizing items
(goodwill, land, etc.), is being amortized as additional equity
income over the remaining useful lives of the contributed long-lived
amortizing assets.
|
|
|
(2)
|
|
The net adjustment is to eliminate all share-based compensation
impacts related to pre-existing SABMiller plc equity awards held by
former Miller Brewing Company employees employed by MillerCoors.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
7: Constant Currency Results: Constant
Currency Reporting Net Sales, U.S. GAAP Pretax Income and
Underlying Pretax Income (Unaudited) U.S.
GAAP: Net Sales (In millions)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
|
Reported % Increase (Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
Canada
|
|
|
$
|
313.5
|
|
|
$
|
347.1
|
|
|
(9.7
|
)%
|
|
$
|
(39.3
|
)
|
|
1.6
|
%
|
Europe
|
|
|
357.9
|
|
|
437.6
|
|
|
(18.2
|
)%
|
|
(48.9
|
)
|
|
(7.0
|
)%
|
MCI
|
|
|
29.1
|
|
|
32.2
|
|
|
(9.6
|
)%
|
|
(3.0
|
)
|
|
(0.3
|
)%
|
Corporate
|
|
|
0.4
|
|
|
0.3
|
|
|
33.3
|
%
|
|
—
|
|
|
33.3
|
%
|
Eliminations(1)
|
|
|
(0.9
|
)
|
|
(1.2
|
)
|
|
25.0
|
%
|
|
—
|
|
|
25.0
|
%
|
MCBC Consolidated Total
|
|
|
$
|
700.0
|
|
|
$
|
816.0
|
|
|
(14.2
|
)%
|
|
$
|
(91.2
|
)
|
|
(3.0
|
)%
|
|
|
(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
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
|
Reported % Increase (Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
|
$
|
129.3
|
|
|
$
|
122.8
|
|
|
5.3
|
%
|
|
$
|
—
|
|
|
5.3
|
%
|
Canada
|
|
|
30.9
|
|
|
88.3
|
|
|
(65.0
|
)%
|
|
(2.7
|
)
|
|
(61.9
|
)%
|
Europe
|
|
|
(4.1
|
)
|
|
27.0
|
|
|
(115.2
|
)%
|
|
1.2
|
|
|
(119.6
|
)%
|
MCI
|
|
|
(5.4
|
)
|
|
(3.0
|
)
|
|
(80.0
|
)%
|
|
(1.6
|
)
|
|
(26.7
|
)%
|
Corporate
|
|
|
(57.2
|
)
|
|
(65.5
|
)
|
|
12.7
|
%
|
|
(1.4
|
)
|
|
14.8
|
%
|
MCBC Consolidated Total
|
|
|
$
|
93.5
|
|
|
$
|
169.6
|
|
|
(44.9
|
)%
|
|
$
|
(4.5
|
)
|
|
(42.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
|
Reported %
Increase
(Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
|
$
|
129.3
|
|
|
$
|
123.1
|
|
|
5.0
|
%
|
|
$
|
—
|
|
|
5.0
|
%
|
Canada
|
|
|
30.9
|
|
|
35.3
|
|
|
(12.5
|
)%
|
|
(2.7
|
)
|
|
(4.8
|
)%
|
Europe
|
|
|
4.5
|
|
|
16.2
|
|
|
(72.2
|
)%
|
|
0.6
|
|
|
(75.9
|
)%
|
MCI
|
|
|
(5.4
|
)
|
|
(3.0
|
)
|
|
(80.0
|
)%
|
|
(1.6
|
)
|
|
(26.7
|
)%
|
Corporate
|
|
|
(57.3
|
)
|
|
(65.1
|
)
|
|
12.0
|
%
|
|
(1.4
|
)
|
|
14.1
|
%
|
MCBC Consolidated Total
|
|
|
$
|
102.0
|
|
|
$
|
106.5
|
|
|
(4.2
|
)%
|
|
$
|
(5.1
|
)
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
8: Worldwide Beer Volume (In millions of
hectoliters) (Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
|
% Change
|
Financial Volume
|
|
|
5.632
|
|
|
5.913
|
|
|
(4.8
|
)%
|
Royalty Volume(1)
|
|
|
0.334
|
|
|
0.300
|
|
|
11.3
|
%
|
Owned Volume
|
|
|
5.966
|
|
|
6.213
|
|
|
(4.0
|
)%
|
Proportionate Share of Equity Investment STR(2)
|
|
|
5.535
|
|
|
5.705
|
|
|
(3.0
|
)%
|
Total Worldwide Beer Volume
|
|
|
11.501
|
|
|
11.918
|
|
|
(3.5
|
)%
|
|
|
(1)
|
|
Includes MCI segment royalty volume that is primarily in Russia,
Ukraine and Mexico, and Europe segment royalty volume in Republic of
Ireland.
|
|
|
(2)
|
|
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
9: Condensed Consolidated Statements of Operations ($
In millions, except per share data) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
Volume in hectoliters
|
|
|
5.632
|
|
|
5.913
|
|
Sales
|
|
|
$
|
1,003.2
|
|
|
$
|
1,178.3
|
|
Excise taxes
|
|
|
(303.2
|
)
|
|
(362.3
|
)
|
Net sales
|
|
|
700.0
|
|
|
816.0
|
|
Cost of goods sold
|
|
|
(454.8
|
)
|
|
(523.2
|
)
|
Gross profit
|
|
|
245.2
|
|
|
292.8
|
|
Marketing, general and administrative expenses
|
|
|
(240.6
|
)
|
|
(263.9
|
)
|
Special items, net
|
|
|
(8.6
|
)
|
|
52.5
|
|
Equity income in MillerCoors
|
|
|
129.3
|
|
|
122.8
|
|
Operating income (loss)
|
|
|
125.3
|
|
|
204.2
|
|
Interest income (expense), net
|
|
|
(29.2
|
)
|
|
(35.4
|
)
|
Other income (expense), net
|
|
|
(2.6
|
)
|
|
0.8
|
|
Income (loss) from continuing operations before income taxes
|
|
|
93.5
|
|
|
169.6
|
|
Income tax benefit (expense)
|
|
|
(12.8
|
)
|
|
(4.8
|
)
|
Net income (loss) from continuing operations
|
|
|
80.7
|
|
|
164.8
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
1.9
|
|
|
(1.9
|
)
|
Net income (loss) including noncontrolling interests
|
|
|
82.6
|
|
|
162.9
|
|
Net (income) loss attributable to noncontrolling interests
|
|
|
(1.5
|
)
|
|
0.5
|
|
Net income (loss) attributable to MCBC
|
|
|
$
|
81.1
|
|
|
$
|
163.4
|
|
|
|
|
|
|
|
Basic net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.43
|
|
|
$
|
0.90
|
|
From discontinued operations
|
|
|
0.01
|
|
|
(0.01
|
)
|
Basic net income (loss) attributable to MCBC per share
|
|
|
$
|
0.44
|
|
|
$
|
0.89
|
|
|
|
|
|
|
|
Diluted net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.42
|
|
|
$
|
0.89
|
|
From discontinued operations
|
|
|
0.01
|
|
|
(0.01
|
)
|
Diluted net income (loss) attributable to MCBC per share
|
|
|
$
|
0.43
|
|
|
$
|
0.88
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
|
|
185.8
|
|
|
184.3
|
|
Weighted average shares - diluted
|
|
|
186.9
|
|
|
185.5
|
|
|
|
|
|
|
|
Dividends per share
|
|
|
$
|
0.41
|
|
|
$
|
0.37
|
|
|
|
|
|
|
|
Amounts attributable to MCBC
|
|
|
|
|
|
Net income (loss) from continuing operations
|
|
|
$
|
79.2
|
|
|
$
|
165.3
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
1.9
|
|
|
(1.9
|
)
|
Net income (loss) attributable to MCBC
|
|
|
$
|
81.1
|
|
|
$
|
163.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
10: Canada Results of Operations ($ In
millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
Volume in hectoliters
|
|
|
1.530
|
|
|
1.563
|
|
Sales
|
|
|
$
|
409.3
|
|
|
$
|
455.6
|
|
Excise taxes
|
|
|
(95.8
|
)
|
|
(108.5
|
)
|
Net sales
|
|
|
313.5
|
|
|
347.1
|
|
Cost of goods sold
|
|
|
(199.3
|
)
|
|
(216.7
|
)
|
Gross profit
|
|
|
114.2
|
|
|
130.4
|
|
Marketing, general and administrative expenses
|
|
|
(84.7
|
)
|
|
(96.0
|
)
|
Special items, net
|
|
|
—
|
|
|
53.0
|
|
Operating income (loss)
|
|
|
29.5
|
|
|
87.4
|
|
Other income (expense), net
|
|
|
1.4
|
|
|
0.9
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
30.9
|
|
|
$
|
88.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
11: Europe Results of Operations ($ In
millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
Volume in hectoliters(1)
|
|
|
3.798
|
|
|
4.085
|
|
Sales(1)
|
|
|
$
|
559.7
|
|
|
$
|
685.8
|
|
Excise taxes
|
|
|
(201.8
|
)
|
|
(248.2
|
)
|
Net sales(1)
|
|
|
357.9
|
|
|
437.6
|
|
Cost of goods sold
|
|
|
(236.9
|
)
|
|
(286.0
|
)
|
Gross profit
|
|
|
121.0
|
|
|
151.6
|
|
Marketing, general and administrative expenses
|
|
|
(117.2
|
)
|
|
(126.2
|
)
|
Special items, net
|
|
|
(8.6
|
)
|
|
(0.5
|
)
|
Operating income (loss)
|
|
|
(4.8
|
)
|
|
24.9
|
|
Interest income, net
|
|
|
1.0
|
|
|
1.1
|
|
Other income (expense), net
|
|
|
(0.3
|
)
|
|
1.0
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
(4.1
|
)
|
|
$
|
27.0
|
|
|
|
(1)
|
|
Gross segment sales include intercompany sales to MCI consisting of
$0.9 million of net sales and 0.010 million hectoliters for the
three months ended March 31, 2015. Gross segment sales include
intercompany sales to MCI consisting of $1.2 million of net sales
and 0.013 million hectoliters for the three months ended March 31,
2014. The offset is included within MCI cost of goods sold. These
amounts are eliminated in the consolidated totals.
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
12: Molson Coors International Results of Operations ($
In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
Volume in hectoliters(1)
|
|
|
0.314
|
|
|
0.278
|
|
Sales
|
|
|
$
|
34.7
|
|
|
$
|
37.8
|
|
Excise taxes
|
|
|
(5.6
|
)
|
|
(5.6
|
)
|
Net sales
|
|
|
29.1
|
|
|
32.2
|
|
Cost of goods sold(2)
|
|
|
(19.2
|
)
|
|
(20.8
|
)
|
Gross profit
|
|
|
9.9
|
|
|
11.4
|
|
Marketing, general and administrative expenses
|
|
|
(14.6
|
)
|
|
(14.4
|
)
|
Special items, net
|
|
|
—
|
|
|
—
|
|
Operating income (loss)
|
|
|
(4.7
|
)
|
|
(3.0
|
)
|
Other income (expense), net
|
|
|
(0.7
|
)
|
|
—
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
(5.4
|
)
|
|
$
|
(3.0
|
)
|
|
|
(1)
|
|
Excludes royalty volume of 0.296 million hectoliters and 0.263
million hectoliters for the three months ended March 31, 2015, and
March 31, 2014, respectively.
|
|
|
(2)
|
|
Reflects gross segment amounts and for the three months ended March
31, 2015, and March 31, 2014, includes intercompany cost of goods
sold from Europe of $0.9 million and $1.2 million, respectively. The
offset is included within Europe net sales. These amounts are
eliminated in the consolidated totals.
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
13: Corporate Results of Operations ($ In
millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
Volume in hectoliters
|
|
|
—
|
|
|
—
|
|
Sales
|
|
|
$
|
0.4
|
|
|
$
|
0.3
|
|
Excise taxes
|
|
|
—
|
|
|
—
|
|
Net sales
|
|
|
0.4
|
|
|
0.3
|
|
Cost of goods sold
|
|
|
(0.3
|
)
|
|
(0.9
|
)
|
Gross profit
|
|
|
0.1
|
|
|
(0.6
|
)
|
Marketing, general and administrative expenses
|
|
|
(24.1
|
)
|
|
(27.3
|
)
|
Special items, net
|
|
|
—
|
|
|
—
|
|
Operating income (loss)
|
|
|
(24.0
|
)
|
|
(27.9
|
)
|
Interest expense, net
|
|
|
(30.2
|
)
|
|
(36.5
|
)
|
Other income (expense), net
|
|
|
(3.0
|
)
|
|
(1.1
|
)
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
(57.2
|
)
|
|
$
|
(65.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC (1) Table 14:
MillerCoors Results of Operations ($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
Volume in hectoliters(2)
|
|
|
16.101
|
|
|
16.488
|
|
Sales
|
|
|
$
|
2,025.8
|
|
|
$
|
2,050.1
|
|
Excise taxes
|
|
|
(251.2
|
)
|
|
(259.7
|
)
|
Net sales
|
|
|
1,774.6
|
|
|
1,790.4
|
|
Cost of goods sold
|
|
|
(1,076.2
|
)
|
|
(1,094.1
|
)
|
Gross profit
|
|
|
698.4
|
|
|
696.3
|
|
Marketing, general and administrative expenses
|
|
|
(389.1
|
)
|
|
(398.1
|
)
|
Special items, net
|
|
|
—
|
|
|
(0.7
|
)
|
Operating income
|
|
|
309.3
|
|
|
297.5
|
|
Interest income (expense), net
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
Other income (expense), net
|
|
|
1.3
|
|
|
0.3
|
|
Income before income taxes
|
|
|
310.3
|
|
|
297.5
|
|
Income tax expense
|
|
|
(1.1
|
)
|
|
(1.9
|
)
|
Net income
|
|
|
309.2
|
|
|
295.6
|
|
Net (income) loss attributable to noncontrolling interests
|
|
|
(4.6
|
)
|
|
(4.4
|
)
|
Net income attributable to MillerCoors
|
|
|
$
|
304.6
|
|
|
$
|
291.2
|
|
|
|
(1)
|
|
Economic ownership of MillerCoors is 58% held by SABMiller and 42%
held by Molson Coors. See Table 6 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
15: Condensed Consolidated Balance Sheets ($
In millions, except par value) (Unaudited)
|
|
|
|
|
|
|
|
As of
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
317.6
|
|
|
$
|
624.6
|
|
Accounts receivable, net
|
|
|
459.1
|
|
|
527.7
|
|
Other receivables, net
|
|
|
131.2
|
|
|
94.0
|
|
Inventories:
|
|
|
|
|
|
Finished
|
|
|
164.8
|
|
|
135.3
|
|
In process
|
|
|
20.1
|
|
|
20.7
|
|
Raw materials
|
|
|
34.0
|
|
|
34.5
|
|
Packaging materials
|
|
|
10.3
|
|
|
11.7
|
|
Total inventories
|
|
|
229.2
|
|
|
202.2
|
|
Other current assets, net
|
|
|
114.8
|
|
|
103.2
|
|
Deferred tax assets
|
|
|
26.2
|
|
|
27.2
|
|
Total current assets
|
|
|
1,278.1
|
|
|
1,578.9
|
|
Properties, net
|
|
|
1,640.6
|
|
|
1,798.0
|
|
Goodwill
|
|
|
2,021.1
|
|
|
2,191.6
|
|
Other intangibles, net
|
|
|
5,229.5
|
|
|
5,755.8
|
|
Investment in MillerCoors
|
|
|
2,499.1
|
|
|
2,388.6
|
|
Deferred tax assets
|
|
|
40.5
|
|
|
58.2
|
|
Notes receivable, net
|
|
|
20.6
|
|
|
21.6
|
|
Other assets
|
|
|
222.2
|
|
|
203.6
|
|
Total assets
|
|
|
$
|
12,951.7
|
|
|
$
|
13,996.3
|
|
Liabilities and equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and other current liabilities
|
|
|
$
|
1,124.9
|
|
|
$
|
1,305.0
|
|
Deferred tax liabilities
|
|
|
183.0
|
|
|
164.8
|
|
Current portion of long-term debt and short-term borrowings
|
|
|
941.2
|
|
|
849.4
|
|
Discontinued operations
|
|
|
5.0
|
|
|
6.1
|
|
Total current liabilities
|
|
|
2,254.1
|
|
|
2,325.3
|
|
Long-term debt
|
|
|
2,310.1
|
|
|
2,337.1
|
|
Pension and postretirement benefits
|
|
|
273.9
|
|
|
542.9
|
|
Deferred tax liabilities
|
|
|
717.4
|
|
|
784.3
|
|
Unrecognized tax benefits
|
|
|
24.4
|
|
|
25.4
|
|
Other liabilities
|
|
|
73.9
|
|
|
79.7
|
|
Discontinued operations
|
|
|
12.8
|
|
|
15.5
|
|
Total liabilities
|
|
|
5,666.6
|
|
|
6,110.2
|
|
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 per share (authorized: 500.0
shares; issued and outstanding: 2.6 shares and 2.6 shares,
respectively)
|
|
|
—
|
|
|
—
|
|
Class B common stock, $0.01 par value per share (authorized: 500.0
shares; issued: 170.7 shares and 169.9 shares, respectively)
|
|
|
1.7
|
|
|
1.7
|
|
Class A exchangeable shares, no par value (issued and outstanding:
2.9 shares and 2.9 shares, respectively)
|
|
|
108.4
|
|
|
108.5
|
|
Class B exchangeable shares, no par value (issued and outstanding:
17.5 shares and 17.6 shares, respectively)
|
|
|
659.7
|
|
|
661.5
|
|
Paid-in capital
|
|
|
3,903.7
|
|
|
3,871.2
|
|
Retained earnings
|
|
|
4,444.8
|
|
|
4,439.9
|
|
Accumulated other comprehensive income (loss)
|
|
|
(1,535.8
|
)
|
|
(898.4
|
)
|
Class B common stock held in treasury at cost (7.5 shares and 7.5
shares, respectively)
|
|
|
(321.4
|
)
|
|
(321.1
|
)
|
Total Molson Coors Brewing Company stockholders' equity
|
|
|
7,261.1
|
|
|
7,863.3
|
|
Noncontrolling interests
|
|
|
24.0
|
|
|
22.8
|
|
Total equity
|
|
|
7,285.1
|
|
|
7,886.1
|
|
Total liabilities and equity
|
|
|
$
|
12,951.7
|
|
|
$
|
13,996.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
16: Condensed Consolidated Statements of Cash Flows ($
In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
|
|
$
|
82.6
|
|
|
$
|
162.9
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
77.5
|
|
|
81.2
|
|
Amortization of debt issuance costs and discounts
|
|
|
1.4
|
|
|
1.6
|
|
Share-based compensation
|
|
|
3.2
|
|
|
8.3
|
|
(Gain) loss on sale or impairment of properties and other assets, net
|
|
|
(0.7
|
)
|
|
1.2
|
|
Deferred income taxes
|
|
|
(3.8
|
)
|
|
0.5
|
|
Equity income in MillerCoors
|
|
|
(129.3
|
)
|
|
(122.8
|
)
|
Distributions from MillerCoors
|
|
|
129.3
|
|
|
122.8
|
|
Equity in net (income) loss of other unconsolidated affiliates
|
|
|
(1.4
|
)
|
|
(4.2
|
)
|
Distributions from other unconsolidated affiliates
|
|
|
—
|
|
|
11.1
|
|
Excess tax benefits from share-based compensation
|
|
|
(6.1
|
)
|
|
(2.0
|
)
|
Unrealized (gain) loss on foreign currency fluctuations and
derivative instruments, net
|
|
|
1.4
|
|
|
(1.8
|
)
|
Change in current assets and liabilities and other
|
|
|
(354.8
|
)
|
|
(111.0
|
)
|
(Gain) loss from discontinued operations
|
|
|
(1.9
|
)
|
|
1.9
|
|
Net cash provided by (used in) operating activities
|
|
|
(202.6
|
)
|
|
149.7
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Additions to properties
|
|
|
(73.7
|
)
|
|
(65.3
|
)
|
Proceeds from sales of properties and other assets
|
|
|
3.0
|
|
|
1.7
|
|
Acquisition of businesses, net of cash acquired
|
|
|
(6.3
|
)
|
|
—
|
|
Investment in MillerCoors
|
|
|
(417.9
|
)
|
|
(354.9
|
)
|
Return of capital from MillerCoors
|
|
|
310.4
|
|
|
259.5
|
|
Loan repayments
|
|
|
9.2
|
|
|
2.2
|
|
Loan advances
|
|
|
(17.9
|
)
|
|
(16.7
|
)
|
Net cash used in investing activities
|
|
|
(193.2
|
)
|
|
(173.5
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
Exercise of stock options under equity compensation plans
|
|
|
24.8
|
|
|
20.2
|
|
Excess tax benefits from share-based compensation
|
|
|
6.1
|
|
|
2.0
|
|
Dividends paid
|
|
|
(76.2
|
)
|
|
(68.2
|
)
|
Payments on long-term debt and capital lease obligations
|
|
|
(0.3
|
)
|
|
(46.9
|
)
|
Proceeds from short-term borrowings
|
|
|
16.6
|
|
|
20.9
|
|
Payments on short-term borrowings
|
|
|
(7.1
|
)
|
|
(12.5
|
)
|
Payments on settlement of derivative instruments
|
|
|
—
|
|
|
(65.2
|
)
|
Net proceeds from (payments on) revolving credit facilities and
commercial paper
|
|
|
157.8
|
|
|
(41.8
|
)
|
Change in overdraft balances and other
|
|
|
1.6
|
|
|
111.3
|
|
Net cash provided by (used in) financing activities
|
|
|
123.3
|
|
|
(80.2
|
)
|
Cash and cash equivalents:
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(272.5
|
)
|
|
(104.0
|
)
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
(34.5
|
)
|
|
(0.7
|
)
|
Balance at beginning of year
|
|
|
624.6
|
|
|
442.3
|
|
Balance at end of period
|
|
|
$
|
317.6
|
|
|
$
|
337.6
|
|
|
|
|
|
|
|
|
|
|
|
Copyright Business Wire 2015