Lower Underlying Income Was Driven by Unfavorable Foreign
Currency, Increased Brand Investments and the Termination of Major
Business Contracts
Third Quarter 2015 Highlights(1)
-
Worldwide beer volume: 16.6 million hectoliters, increased
0.7%; Coors Light volume increased 1.0% worldwide
-
Net sales: $1.017 billion, decreased 12.9% on a reported basis,
and increased 0.7% in constant-currency
-
Net sales per HL: $113.64, decreased 15.5%, or decreased 2.3%
in constant-currency
-
U.S. GAAP net income from continuing operations
attributable to MCBC: $13.7 million ($0.07 per diluted share),
increased 138.4%
-
Underlying pretax income: $295.4 million, decreased 10.9%, and
decreased 1.7% in constant-currency
-
Underlying after-tax income: $259.9 million ($1.40 per diluted
share), decreased 4.3%
-
Underlying EBITDA (earnings before interest, taxes,
depreciation and amortization): $420.2 million, decreased 10.4%
Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported a 4.3
percent decrease in underlying after-tax income for the third quarter
2015, driven by unfavorable foreign currency movements, increased brand
investments, and the termination of our Miller brands agreement in
Canada and the Modelo brands and Heineken brewing contracts in the U.K.
this year. On a U.S. GAAP basis, the company reported a $49.4 million
increase in net income to $13.7 million, primarily due to lower brand
impairments this year in Europe.
Molson Coors president and chief executive officer Mark Hunter said, “In
the third quarter, our worldwide volume increased 0.7 percent, driven by
strong growth in Europe and International. Underlying earnings were
lower due to unfavorable foreign currency, increased brand investments
and the termination of our Miller brands agreement in Canada and the
Modelo brands and Heineken brewing contracts in the U.K. earlier this
year. We increased gross margins on a consolidated basis, driven by the
U.S. and Europe. We invested more in our brands in all of our businesses
except International, where lower marketing was primarily due to the
substantial restructuring of our China business this year. In the
quarter, we continued to transform our portfolio toward above-premium,
craft and cider; we expanded the depth and reach of our international
brands in fast-growing markets; and we increased our commercial
capability. We also continued to drive meaningful cash generation and
disciplined cash and capital allocation."
Mark continued, "We remain resolute on utilizing PACC as our key
business-decision framework, using our cash to reward investors and
ensure a healthy balance sheet, reducing costs to provide front-end
firepower, and making smart investments that deliver value-enhancing
growth opportunities. Our strategy is underpinned by highly engaged,
passionate and inspired people with the ambition to be First Choice in
the eyes of our consumers and customers."
Underlying EBITDA and Free Cash Flow
Underlying EBITDA was $420.2 million in the third quarter, a 10.4
percent decrease from a year ago due to unfavorable foreign currency
movements and terminated contracts.
Underlying free cash flow through the third quarter of 2015 was
$476.8 million. This represents a decrease of $289.3 million from the
prior year, primarily driven by lower underlying after-tax income,
negative foreign currency, and less benefit from working capital
changes, including higher cash paid for taxes.
Stock Repurchases
We continued to implement our four-year, $1 billion stock buy-back
program, with $50 million of cash used in the 3rd quarter to repurchase
689,783 Class B common shares from July through early October. In
August, we committed another $50 million of cash to be used for stock
repurchases during the 4th quarter under our accelerated share
repurchase program.
Foreign Exchange
The Company’s third quarter underlying consolidated pretax income
includes the negative effect of foreign currency movements totaling
$30.5 million. Negative currency impacts in the quarter were $17.9
million in Canada, $14.0 million in Europe, and $1.2 million in
International. Foreign currency movements were $2.6 million positive in
Corporate.
Effective Income Tax Rates
The Company’s third quarter effective income tax rate was 182.0 percent
on a reported basis and 12.5 percent on an underlying basis. On a
reported basis, the change in the effective tax rate versus the prior
year was primarily due to a lower pretax loss, driven by lower brand
impairment charges in Europe, as well as discrete and other tax
benefits. On an underlying basis, the effective tax rate was lower than
prior year primarily due to certain discrete and other tax benefits.
Debt
Total debt at the end of the third quarter was $3.002 billion,
and cash and cash equivalents totaled $393.6 million, resulting in net
debt of $2.609 billion, which is lower than the prior year,
primarily due to foreign currency movements and debt paydown.
Third Quarter Business Segment Results
The following are the Company’s third quarter 2015 results by business
segment:
United States Business (MillerCoors)(2)
Molson Coors underlying U.S. segment equity income decreased 7.5
percent to $147.1 million in the quarter.
MillerCoors Operating and Financial Highlights
MillerCoors underlying net income for the quarter decreased 8.6
percent to $344.4 million, driven by lower volume and increased
marketing investment, partially offset by lower cost of sales, positive
sales mix and net pricing growth.
MillerCoors domestic sales-to-retailers volume (STRs) declined 2.5
percent for the quarter, driven by continued softness in our economy
portfolio. Domestic sales-to-wholesalers volume (STWs) decreased 4.6
percent. Domestic net revenue per hectoliter, which excludes contract
brewing and company-owned-distributor sales, grew 1.2 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 1.1 percent. Contract brewing volumes decreased 3.5
percent.
Cost of goods sold (COGS) per hectoliter decreased 0.8 percent, driven
by lower aluminum pricing, malt and corn costs, and fuel expense, along
with supply chain cost savings. The reduction in total COGS per
hectoliter was partially offset by brewery and freight inflation and
lower fixed-cost absorption due to lower volumes. Marketing, general and
administrative (MG&A) expense increased 5.6 percent, driven by brand
investments, employee related benefits and technology investments.
Depreciation and amortization expenses for MillerCoors were $99.9
million in the third quarter, which includes the accelerated
depreciation related to the planned closure of the Eden brewery of $21.8
million. Additions to tangible and intangible assets totaled $77.3
million in the third quarter.
Canada Business
Canada underlying pretax income decreased 18.9 percent to $107.5
million in the quarter primarily due to negative foreign currency
movements and the termination of the Miller brands license agreement
earlier this year. A decrease in the Canadian dollar versus the U.S.
dollar resulted in a $17.9 million negative foreign currency impact on
underlying pretax income in the quarter. On a constant-currency basis,
underlying pretax income decreased 5.4 percent, driven by the
termination of the Miller agreement.
STRs decreased 4.9 percent on a reported basis in the third quarter due
to the termination of the Miller brands agreement. Excluding the Miller
brands from our results(3), our STRs and market share
declined slightly. Molson Coors Canada sales volume decreased 4.0
percent in the third quarter. Net sales per hectoliter increased 1.6
percent in local currency, driven by positive net pricing.
COGS per hectoliter increased 1.7 percent in local currency, due to
input cost inflation, volume deleverage, and foreign currency movements,
partially offset by cost savings. MG&A expense increased 0.1 percent in
local currency, driven by higher brand investments, which were partially
offset by lower G&A costs due to timing differences.
Europe Business
Europe underlying pretax income decreased 6.7 percent to $94.6
million in the quarter, due to unfavorable foreign currency movements.
On a constant-currency basis, underlying pretax income increased 7.1
percent, driven by higher sales volume, positive pricing and lower
costs, despite the terminated Modelo and Heineken contracts in the U.K.
and the release of a reserve a year ago following the favorable
resolution of a regulatory matter. Foreign currency movements negatively
impacted underlying results by $14.0 million.
Europe sales volume increased 4.9 percent, driven by growth in nine out
of eleven countries in the region. Europe net sales per hectoliter
decreased 1.8 percent in local currency, primarily due to the loss of
the Modelo brands in the U.K., lower contract brewing volume and
negative mix.
COGS per hectoliter decreased 4.4 percent in local currency, driven by
the elimination of Modelo brand costs and lower contract brewing volume
in the U.K., along with fixed-cost leverage and geographic mix shift.
MG&A expense increased 8.3 percent in local currency, driven by higher
marketing investments this year and the release of the regulatory
reserve a year ago.
International Business
The International segment posted an underlying pretax loss of
$2.1 million in the third quarter, versus a loss of $2.7 million a year
ago, which was driven by higher volume in India and Latin America, along
with lower MG&A costs, partially offset by negative foreign currency
movements, which impacted underlying pretax results by $1.2 million.
Total International sales volume, including royalty volume, increased
12.1 percent, driven by triple-digit volume growth in India due to
strong volume performance of our existing business and our acquisition
of Mount Shivalik Breweries earlier this year, along with double-digit
Coors Light growth in Latin America. Net sales per hectoliter decreased
18.2 percent, primarily due to foreign currency movements and sales mix
changes.
COGS per hectoliter decreased 11.1 percent, due to foreign currency
movements and sales mix changes. International MG&A expense decreased
17.9 percent, due to lower marketing investments and overhead costs,
primarily related to the substantial restructuring of our China
business, as well as foreign currency movements.
Corporate
Underlying Corporate pretax loss totaled $51.7 million for the
third quarter, a $7.0 million improvement versus a $58.7 million loss in
the prior year, driven by lower interest expense and favorable foreign
currency movements.
Special and Other Non-Core Items(4)
The following special and other non-core items have been excluded
from underlying results.
During the quarter, Molson Coors recognized a special charge of
$293.5 million. This charge was primarily driven by $275.0 million of
impairment charges recorded for certain Europe brands. In conjunction
with the impairment evaluation, we also reclassified these brands to be
definite-lived intangible assets to be amortized over useful lives
ranging from 30 to 50 years, which will increase future amortization
expense by approximately $15 million per annum, based on current foreign
exchange rates. Additionally, we incurred $15.7 million of charges
related to the closure of a bottling line within our Vancouver brewery
as part of a strategic review of our Canadian supply chain network and a
$2.3 million charge associated with the closure of our Alton brewery in
the U.K.
During the quarter, MillerCoors recognized a special charge of $28.0
million related to the planned closure of the Eden, North Carolina,
brewery. Our proportionate share of the special charge is $11.8 million.
Other non-core items resulted in a $5.1 million loss, which was driven
by unrealized mark-to-market net losses on commodity hedges.
2015 Third 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 third 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 February 11, 2016. 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 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 third quarter ended
September 30, 2015, compared to the third quarter ended September 30,
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 Miller brands from our Canada STR results in
third quarter 2014 and 2015. On March 31, 2015, our licensing agreement
with Miller Brewing Company ("Miller") was terminated, and control of
the brands reverted to Miller International.
(4) See table 2 for the impact of specials and other non-core
items by segment.
Overview of Molson Coors
Molson Coors Brewing Company is a leading global brewer delivering
extraordinary brands that delight the world's beer drinkers. It brews,
markets and sells a portfolio of leading brands such as Coors Light,
Molson Canadian, Carling, Staropramen and Blue Moon across The Americas,
Europe and Asia. It operates in Canada through Molson Coors Canada; in
the US through MillerCoors; across Europe through Molson Coors Europe;
and outside these core markets through Molson Coors International. The
company has been listed on the Dow Jones Sustainability World Index for
the past four years and was named global Beverage Sector Leader in 2012
and 2013. Molson Coors is constantly looking for ways to improve its
Beer Print. For more information on Molson Coors Brewing Company visit
the company's website, http://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 increased competition resulting from further
consolidation of brewers, competitive pricing and product pressures;
health of the beer industry and our brands in our markets; economic
conditions in our markets; additional impairment charges; our ability to
maintain manufacturer/distribution agreements; changes in our supply
chain system; availability or increase in the cost of packaging
materials; success of our joint ventures; risks relating to operations
in developing and emerging markets; changes in legal and regulatory
requirements, including the regulation of distribution systems;
fluctuations in foreign currency exchange rates; increase in the cost of
commodities used in the business; the impact of climate change and the
availability and quality of water; loss or closure of a major brewery or
other key facility; our ability to implement our strategic initiatives,
including executing and realizing cost savings; our ability to
successfully integrate newly acquired businesses; pension plan costs;
failure to comply with debt covenants or deterioration in our credit
rating; our ability to maintain good labor relations; our ability to
maintain brand image, reputation and product quality; 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
|
|
|
September 30, 2015
|
|
September 30, 2014
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
$
|
13.7
|
|
|
$
|
(35.7
|
)
|
Per diluted share
|
|
$
|
0.07
|
|
|
$
|
(0.20
|
)
|
Add/(less):
|
|
|
|
|
Special items, net
|
|
293.5
|
|
|
367.6
|
|
42% of MillerCoors special items, net of tax(1)
|
|
11.8
|
|
|
0.1
|
|
Unrealized mark-to-market (gains) and losses(2)
|
|
5.1
|
|
|
(2.9
|
)
|
Tax effects on special and non-GAAP items
|
|
(64.2
|
)
|
|
(57.6
|
)
|
Non-GAAP: Underlying
after-tax income
|
|
$
|
259.9
|
|
|
$
|
271.5
|
|
Per diluted share
|
|
$
|
1.40
|
|
|
$
|
1.46
|
|
|
(1)
|
|
Included in equity income in MillerCoors.
|
|
|
|
(2)
|
|
In Q3 2015, net unrealized losses of $5.1 million included in cost
of goods sold. In Q3 2014, $2.9 million gain included in cost of
goods sold.
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
2: Underlying Pretax Income (Loss) ($ In
millions) (Unaudited)
|
|
|
|
|
|
|
|
Business
|
|
Total
|
|
|
Canada
|
|
U.S.
|
|
Europe
|
|
MCI
|
|
Corporate
|
|
Consolidated
|
U.S. GAAP: 2015 3rd Q
income (loss) from continuing operations before income
taxes
|
|
$
|
91.8
|
|
|
$
|
135.3
|
|
|
$
|
(183.2
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
(56.8
|
)
|
|
$
|
(15.0
|
)
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
15.7
|
|
|
—
|
|
|
277.8
|
|
|
—
|
|
|
—
|
|
|
293.5
|
|
42% of MillerCoors special items, net of tax(1)
|
|
—
|
|
|
11.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.8
|
|
Unrealized mark-to-market (gains) and losses(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|
5.1
|
|
Non-GAAP: 2015 3rd Q
underlying pretax income (loss)
|
|
$
|
107.5
|
|
|
$
|
147.1
|
|
|
$
|
94.6
|
|
|
$
|
(2.1
|
)
|
|
$
|
(51.7
|
)
|
|
$
|
295.4
|
|
Percent change 2015 3rd Q vs. 2014 3rd Q underlying pretax income
(loss)
|
|
(18.9
|
)%
|
|
(7.5
|
)%
|
|
(6.7
|
)%
|
|
22.2
|
%
|
|
11.9
|
%
|
|
(10.9
|
)%
|
U.S. GAAP: 2014 3rd Q
income (loss) from continuing operations before income
taxes
|
|
$
|
121.5
|
|
|
$
|
158.9
|
|
|
$
|
(255.1
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
(55.8
|
)
|
|
$
|
(33.2
|
)
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net
|
|
11.1
|
|
|
—
|
|
|
356.5
|
|
|
—
|
|
|
—
|
|
|
367.6
|
|
42% of MillerCoors special items, net of tax(1)
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Unrealized mark-to-market (gains) and losses(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.9
|
)
|
|
(2.9
|
)
|
Non-GAAP: 2014 3rd Q
underlying pretax income (loss)
|
|
$
|
132.6
|
|
|
$
|
159.0
|
|
|
$
|
101.4
|
|
|
$
|
(2.7
|
)
|
|
$
|
(58.7
|
)
|
|
$
|
331.6
|
|
|
(1)
|
|
Included in equity income in MillerCoors.
|
|
|
|
(2)
|
|
In Q3 2015, net unrealized losses of $5.1 million included in cost
of goods sold. In Q3 2014, $2.9 million gain included in cost of
goods sold.
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
3: Underlying EBITDA ($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
% change
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
% change
|
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
$
|
13.7
|
|
|
$
|
(35.7
|
)
|
|
(138.4
|
)%
|
|
$
|
322.2
|
|
|
$
|
420.3
|
|
|
(23.3
|
)%
|
Add: Net income (loss) attributable to noncontrolling
interests
|
|
(1.4
|
)
|
|
1.8
|
|
|
(177.8
|
)%
|
|
2.4
|
|
|
3.5
|
|
|
(31.4
|
)%
|
U.S. GAAP: Net income
(loss) from continuing operations
|
|
$
|
12.3
|
|
|
$
|
(33.9
|
)
|
|
(136.3
|
)%
|
|
$
|
324.6
|
|
|
$
|
423.8
|
|
|
(23.4
|
)%
|
Add: Interest expense (income), net
|
|
26.8
|
|
|
31.3
|
|
|
(14.4
|
)%
|
|
86.6
|
|
|
102.9
|
|
|
(15.8
|
)%
|
Add: Income tax expense (benefit)
|
|
(27.3
|
)
|
|
0.7
|
|
|
N/M
|
|
|
43.9
|
|
|
41.9
|
|
|
4.8
|
%
|
Add: Depreciation and amortization
|
|
83.0
|
|
|
74.6
|
|
|
11.3
|
%
|
|
241.9
|
|
|
233.0
|
|
|
3.8
|
%
|
Adjustments included in underlying income(1)
|
|
298.6
|
|
|
364.7
|
|
|
(18.1
|
)%
|
|
345.0
|
|
|
302.6
|
|
|
14.0
|
%
|
Adjustments to arrive at underlying EBITDA(2)
|
|
(17.4
|
)
|
|
—
|
|
|
N/M
|
|
|
(45.8
|
)
|
|
(4.9
|
)
|
|
N/M
|
|
Adjustments to arrive at underlying EBITDA related to our investment
in MillerCoors(3)
|
|
44.2
|
|
|
31.8
|
|
|
39.0
|
%
|
|
107.9
|
|
|
97.3
|
|
|
10.9
|
%
|
Non-GAAP: Underlying EBITDA
|
|
$
|
420.2
|
|
|
$
|
469.2
|
|
|
(10.4
|
)%
|
|
$
|
1,104.1
|
|
|
$
|
1,196.6
|
|
|
(7.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30, 2015
|
|
September 30, 2014
|
U.S. GAAP:
|
|
Net Cash Provided by (Used In) Operating Activities
|
|
$
|
461.5
|
|
|
$
|
1,058.4
|
|
Less:
|
|
Additions to properties(1)
|
|
(208.3
|
)
|
|
(195.8
|
)
|
Less:
|
|
Investment in MillerCoors(1)
|
|
(1,144.5
|
)
|
|
(1,100.4
|
)
|
Add:
|
|
Return of capital from MillerCoors(1)
|
|
1,088.2
|
|
|
1,053.9
|
|
Add/(Less):
|
|
Cash impact of special items(2)
|
|
19.9
|
|
|
(55.4
|
)
|
Add:
|
|
Discretionary pension contribution(3)
|
|
227.1
|
|
|
—
|
|
Add:
|
|
Settlement of forward starting interest rate swaps(4)
|
|
29.5
|
|
|
—
|
|
Add:
|
|
MillerCoors investments in businesses(5)
|
|
3.4
|
|
|
1.3
|
|
Add:
|
|
MillerCoors cash impact of special items(5)
|
|
—
|
|
|
4.1
|
|
Non-GAAP:
|
|
Underlying Free Cash Flow
|
|
$
|
476.8
|
|
|
$
|
766.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 and paid, as well as
costs paid for the Alton brewery closure and restructuring
activities.
|
|
|
|
(3)
|
|
Discretionary cash contribution of $227.1 million made to our U.K.
pension plan included in net cash provided by (used in) operating
activities.
|
|
|
|
(4)
|
|
Settlement of forward starting interest rate swaps related to the
issuance of our CAD 500 million 2.75% notes due on September 18,
2020, and CAD 400 million 2.25% notes due on September 18, 2018,
included in net cash provided by (used in) operating activities.
|
|
|
|
(5)
|
|
Amounts represent our proportionate 42% share of the cash flow
impacts.
|
|
|
|
|
MillerCoors LLC Table 5: Underlying
Net Income Attributable to MillerCoors ($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
September 30, 2015
|
|
September 30, 2014
|
U.S. GAAP: Net income
attributable to MillerCoors
|
|
$
|
316.5
|
|
|
$
|
376.5
|
|
|
$
|
1,108.3
|
|
|
$
|
1,112.9
|
Add: Special items, net of tax
|
|
27.9
|
|
|
0.2
|
|
|
27.9
|
|
|
1.4
|
Non-GAAP: Underlying net
income attributable to MillerCoors
|
|
$
|
344.4
|
|
|
$
|
376.7
|
|
|
$
|
1,136.2
|
|
|
$
|
1,114.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
6: Underlying Equity Income in MillerCoors ($
In millions) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
September 30, 2015
|
|
September 30, 2014
|
U.S. GAAP: Net Income
Attributable to MillerCoors
|
|
$
|
316.5
|
|
|
$
|
376.5
|
|
|
$
|
1,108.3
|
|
|
$
|
1,112.9
|
|
Multiply: MCBC economic interest
|
|
42
|
%
|
|
42
|
%
|
|
42
|
%
|
|
42
|
%
|
MCBC proportionate share of MillerCoors net income(1)
|
|
$
|
132.9
|
|
|
$
|
158.1
|
|
|
$
|
465.5
|
|
|
$
|
467.4
|
|
Add: Amortization of the difference between MCBC contributed
cost basis and proportionate share of the underlying equity in net
assets of MillerCoors(2)
|
|
1.0
|
|
|
1.2
|
|
|
3.4
|
|
|
3.5
|
|
Add: Share-based compensation adjustment(1)(3)
|
|
1.4
|
|
|
(0.4
|
)
|
|
1.2
|
|
|
0.9
|
|
U.S. GAAP: Equity Income in
MillerCoors
|
|
$
|
135.3
|
|
|
$
|
158.9
|
|
|
$
|
470.1
|
|
|
$
|
471.8
|
|
Add: MCBC proportionate share of MillerCoors special items,
net of tax
|
|
11.8
|
|
|
0.1
|
|
|
11.8
|
|
|
0.6
|
|
Non-GAAP: Underlying Equity
Income in MillerCoors
|
|
$
|
147.1
|
|
|
$
|
159.0
|
|
|
$
|
481.9
|
|
|
$
|
472.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The sum of the quarterly proportionate share of MillerCoors net
income and share-based compensation adjustment amounts may not agree
to the year-to-date amounts due to rounding.
|
|
|
|
(2)
|
|
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 $658.2 million as of September 30, 2015. This basis
difference, with the exception of certain non-amortizing items
(goodwill, land, etc.), is being amortized as additional equity
income over the remaining useful lives of the contributed long-lived
amortizing assets.
|
|
|
|
(3)
|
|
The net adjustment is to eliminate all share-based compensation
impacts related to pre-existing SABMiller plc equity awards held by
former Miller Brewing Company employees employed by MillerCoors.
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
7: Constant Currency Results: Constant
Currency Reporting Net Sales, U.S. GAAP Pretax Income
and Underlying Pretax Income (Unaudited)
|
|
|
|
U.S. GAAP: Net Sales (In millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
Reported % Increase (Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
Canada
|
|
$
|
411.2
|
|
|
$
|
507.2
|
|
|
(18.9
|
)%
|
|
$
|
(83.1
|
)
|
|
(2.5
|
)%
|
Europe
|
|
566.0
|
|
|
618.7
|
|
|
(8.5
|
)%
|
|
(70.9
|
)
|
|
2.9
|
%
|
MCI
|
|
41.3
|
|
|
43.4
|
|
|
(4.8
|
)%
|
|
(4.6
|
)
|
|
5.8
|
%
|
Corporate
|
|
0.3
|
|
|
0.2
|
|
|
50.0
|
%
|
|
—
|
|
|
50.0
|
%
|
Eliminations(1)
|
|
(1.4
|
)
|
|
(1.5
|
)
|
|
6.7
|
%
|
|
—
|
|
|
6.7
|
%
|
MCBC Consolidated Total
|
|
$
|
1,017.4
|
|
|
$
|
1,168.0
|
|
|
(12.9
|
)%
|
|
$
|
(158.6
|
)
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
Reported % Increase (Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
$
|
135.3
|
|
|
$
|
158.9
|
|
|
(14.9
|
)%
|
|
$
|
—
|
|
|
(14.9
|
)%
|
Canada
|
|
91.8
|
|
|
121.5
|
|
|
(24.4
|
)%
|
|
(14.7
|
)
|
|
(12.3
|
)%
|
Europe
|
|
(183.2
|
)
|
|
(255.1
|
)
|
|
28.2
|
%
|
|
29.9
|
|
|
16.5
|
%
|
MCI
|
|
(2.1
|
)
|
|
(2.7
|
)
|
|
22.2
|
%
|
|
(1.2
|
)
|
|
66.7
|
%
|
Corporate
|
|
(56.8
|
)
|
|
(55.8
|
)
|
|
(1.8
|
)%
|
|
2.6
|
|
|
(6.5
|
)%
|
MCBC Consolidated Total
|
|
$
|
(15.0
|
)
|
|
$
|
(33.2
|
)
|
|
54.8
|
%
|
|
$
|
16.6
|
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
Reported % Increase (Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
$
|
147.1
|
|
|
$
|
159.0
|
|
|
(7.5
|
)%
|
|
$
|
—
|
|
|
(7.5
|
)%
|
Canada
|
|
107.5
|
|
|
132.6
|
|
|
(18.9
|
)%
|
|
(17.9
|
)
|
|
(5.4
|
)%
|
Europe
|
|
94.6
|
|
|
101.4
|
|
|
(6.7
|
)%
|
|
(14.0
|
)
|
|
7.1
|
%
|
MCI
|
|
(2.1
|
)
|
|
(2.7
|
)
|
|
22.2
|
%
|
|
(1.2
|
)
|
|
66.7
|
%
|
Corporate
|
|
(51.7
|
)
|
|
(58.7
|
)
|
|
11.9
|
%
|
|
2.6
|
|
|
7.5
|
%
|
MCBC Consolidated Total
|
|
$
|
295.4
|
|
|
$
|
331.6
|
|
|
(10.9
|
)%
|
|
$
|
(30.5
|
)
|
|
(1.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP: Net Sales (In millions)
|
|
|
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
Reported % Increase (Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
Canada
|
|
$
|
1,169.6
|
|
|
$
|
1,370.8
|
|
|
(14.7
|
)%
|
|
$
|
(179.5
|
)
|
|
(1.6
|
)%
|
Europe
|
|
1,448.7
|
|
|
1,685.7
|
|
|
(14.1
|
)%
|
|
(201.1
|
)
|
|
(2.1
|
)%
|
MCI
|
|
107.6
|
|
|
119.3
|
|
|
(9.8
|
)%
|
|
(12.5
|
)
|
|
0.7
|
%
|
Corporate
|
|
0.8
|
|
|
0.9
|
|
|
(11.1
|
)%
|
|
—
|
|
|
(11.1
|
)%
|
Eliminations(1)
|
|
(3.6
|
)
|
|
(4.2
|
)
|
|
14.3
|
%
|
|
—
|
|
|
14.3
|
%
|
MCBC Consolidated Total
|
|
$
|
2,723.1
|
|
|
$
|
3,172.5
|
|
|
(14.2
|
)%
|
|
$
|
(393.1
|
)
|
|
(1.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
Reported % Increase (Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
$
|
470.1
|
|
|
$
|
471.8
|
|
|
(0.4
|
)%
|
|
$
|
—
|
|
|
(0.4
|
)%
|
Canada
|
|
228.8
|
|
|
330.6
|
|
|
(30.8
|
)%
|
|
(28.1
|
)
|
|
(22.3
|
)%
|
Europe
|
|
(138.3
|
)
|
|
(143.6
|
)
|
|
3.7
|
%
|
|
24.0
|
|
|
(13.0
|
)%
|
MCI
|
|
(19.7
|
)
|
|
(9.4
|
)
|
|
(109.6
|
)%
|
|
(3.9
|
)
|
|
(68.1
|
)%
|
Corporate
|
|
(172.4
|
)
|
|
(183.7
|
)
|
|
6.2
|
%
|
|
3.2
|
|
|
4.4
|
%
|
MCBC Consolidated Total
|
|
$
|
368.5
|
|
|
$
|
465.7
|
|
|
(20.9
|
)%
|
|
$
|
(4.8
|
)
|
|
(19.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
|
|
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
Reported % Increase (Decrease)
|
|
Foreign Exchange Impact ($)
|
|
Constant Currency % Increase (Decrease)
|
MillerCoors (42% portion)
|
|
$
|
481.9
|
|
|
$
|
472.4
|
|
|
2.0
|
%
|
|
$
|
—
|
|
|
2.0
|
%
|
Canada
|
|
252.7
|
|
|
288.8
|
|
|
(12.5
|
)%
|
|
(32.4
|
)
|
|
(1.3
|
)%
|
Europe
|
|
167.2
|
|
|
204.4
|
|
|
(18.2
|
)%
|
|
(24.9
|
)
|
|
(6.0
|
)%
|
MCI
|
|
(13.3
|
)
|
|
(9.4
|
)
|
|
(41.5
|
)%
|
|
(3.9
|
)
|
|
—
|
%
|
Corporate
|
|
(163.2
|
)
|
|
(187.3
|
)
|
|
12.9
|
%
|
|
3.2
|
|
|
11.2
|
%
|
MCBC Consolidated Total
|
|
$
|
725.3
|
|
|
$
|
768.9
|
|
|
(5.7
|
)%
|
|
$
|
(58.0
|
)
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
% Change
|
Financial Volume
|
|
8.953
|
|
|
8.688
|
|
|
3.1
|
%
|
Royalty Volume(1)
|
|
0.461
|
|
|
0.427
|
|
|
8.0
|
%
|
Owned Volume
|
|
9.414
|
|
|
9.115
|
|
|
3.3
|
%
|
Proportionate Share of Equity Investment STR(2)
|
|
7.141
|
|
|
7.320
|
|
|
(2.4
|
)%
|
Total Worldwide Beer Volume
|
|
16.555
|
|
|
16.435
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
September 30, 2015
|
|
September 30, 2014
|
Volume in hectoliters
|
|
8.953
|
|
|
8.688
|
|
|
23.208
|
|
|
23.327
|
|
Sales
|
|
$
|
1,454.3
|
|
|
$
|
1,650.0
|
|
|
$
|
3,890.5
|
|
|
$
|
4,514.2
|
|
Excise taxes
|
|
(436.9
|
)
|
|
(482.0
|
)
|
|
(1,167.4
|
)
|
|
(1,341.7
|
)
|
Net sales
|
|
1,017.4
|
|
|
1,168.0
|
|
|
2,723.1
|
|
|
3,172.5
|
|
Cost of goods sold
|
|
(585.9
|
)
|
|
(666.6
|
)
|
|
(1,620.6
|
)
|
|
(1,873.1
|
)
|
Gross profit
|
|
431.5
|
|
|
501.4
|
|
|
1,102.5
|
|
|
1,299.4
|
|
Marketing, general and administrative expenses
|
|
(265.2
|
)
|
|
(289.6
|
)
|
|
(789.1
|
)
|
|
(881.3
|
)
|
Special items, net
|
|
(293.5
|
)
|
|
(367.6
|
)
|
|
(335.8
|
)
|
|
(317.8
|
)
|
Equity income in MillerCoors
|
|
135.3
|
|
|
158.9
|
|
|
470.1
|
|
|
471.8
|
|
Operating income (loss)
|
|
8.1
|
|
|
3.1
|
|
|
447.7
|
|
|
572.1
|
|
Interest income (expense), net
|
|
(26.8
|
)
|
|
(31.3
|
)
|
|
(86.6
|
)
|
|
(102.9
|
)
|
Other income (expense), net
|
|
3.7
|
|
|
(5.0
|
)
|
|
7.4
|
|
|
(3.5
|
)
|
Income (loss) from continuing operations before income taxes
|
|
(15.0
|
)
|
|
(33.2
|
)
|
|
368.5
|
|
|
465.7
|
|
Income tax benefit (expense)
|
|
27.3
|
|
|
(0.7
|
)
|
|
(43.9
|
)
|
|
(41.9
|
)
|
Net income (loss) from continuing operations
|
|
12.3
|
|
|
(33.9
|
)
|
|
324.6
|
|
|
423.8
|
|
Income (loss) from discontinued operations, net of tax
|
|
2.9
|
|
|
1.3
|
|
|
4.5
|
|
|
(0.4
|
)
|
Net income (loss) including noncontrolling interests
|
|
15.2
|
|
|
(32.6
|
)
|
|
329.1
|
|
|
423.4
|
|
Net (income) loss attributable to noncontrolling interests
|
|
1.4
|
|
|
(1.8
|
)
|
|
(2.4
|
)
|
|
(3.5
|
)
|
Net income (loss) attributable to MCBC
|
|
$
|
16.6
|
|
|
$
|
(34.4
|
)
|
|
$
|
326.7
|
|
|
$
|
419.9
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
$
|
0.07
|
|
|
$
|
(0.20
|
)
|
|
$
|
1.74
|
|
|
$
|
2.27
|
|
From discontinued operations
|
|
0.02
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
|
Basic net income (loss) attributable to MCBC per share
|
|
$
|
0.09
|
|
|
$
|
(0.19
|
)
|
|
$
|
1.76
|
|
|
$
|
2.27
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
$
|
0.07
|
|
|
$
|
(0.20
|
)
|
|
$
|
1.73
|
|
|
$
|
2.26
|
|
From discontinued operations
|
|
0.02
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
|
Diluted net income (loss) attributable to MCBC per share
|
|
$
|
0.09
|
|
|
$
|
(0.19
|
)
|
|
$
|
1.75
|
|
|
$
|
2.26
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
|
185.0
|
|
|
185.1
|
|
|
185.5
|
|
|
184.7
|
|
Weighted average shares - diluted
|
|
186.0
|
|
|
185.1
|
|
|
186.6
|
|
|
185.9
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
$
|
0.41
|
|
|
$
|
0.37
|
|
|
$
|
1.23
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to MCBC
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations
|
|
$
|
13.7
|
|
|
$
|
(35.7
|
)
|
|
$
|
322.2
|
|
|
$
|
420.3
|
|
Income (loss) from discontinued operations, net of tax
|
|
2.9
|
|
|
1.3
|
|
|
4.5
|
|
|
(0.4
|
)
|
Net income (loss) attributable to MCBC
|
|
$
|
16.6
|
|
|
$
|
(34.4
|
)
|
|
$
|
326.7
|
|
|
$
|
419.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
10: Canada Results of Operations ($ In
millions) (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
|
September 30, 2015
|
|
September 30, 2014
|
Volume in hectoliters
|
|
2.171
|
|
|
2.262
|
|
|
|
5.851
|
|
|
6.128
|
|
Sales
|
|
$
|
545.6
|
|
|
$
|
668.8
|
|
|
|
$
|
1,539.2
|
|
|
$
|
1,801.5
|
|
Excise taxes
|
|
(134.4
|
)
|
|
(161.6
|
)
|
|
|
(369.6
|
)
|
|
(430.7
|
)
|
Net sales
|
|
411.2
|
|
|
507.2
|
|
|
|
1,169.6
|
|
|
1,370.8
|
|
Cost of goods sold
|
|
(216.8
|
)
|
|
(266.9
|
)
|
|
|
(654.2
|
)
|
|
(768.8
|
)
|
Gross profit
|
|
194.4
|
|
|
240.3
|
|
|
|
515.4
|
|
|
602.0
|
|
Marketing, general and administrative expenses
|
|
(90.6
|
)
|
|
(108.9
|
)
|
|
|
(270.7
|
)
|
|
(316.8
|
)
|
Special items, net
|
|
(15.7
|
)
|
|
(11.1
|
)
|
|
|
(23.9
|
)
|
|
41.8
|
|
Operating income (loss)
|
|
88.1
|
|
|
120.3
|
|
|
|
220.8
|
|
|
327.0
|
|
Other income (expense), net
|
|
3.7
|
|
|
1.2
|
|
|
|
8.0
|
|
|
3.6
|
|
Income (loss) from continuing operations before income taxes
|
|
$
|
91.8
|
|
|
$
|
121.5
|
|
|
|
$
|
228.8
|
|
|
$
|
330.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
11: Europe Results of Operations ($ In
millions) (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
|
September 30, 2015
|
|
September 30, 2014
|
Volume in hectoliters(1)
|
|
6.372
|
|
|
6.077
|
|
|
|
16.165
|
|
|
16.223
|
|
Sales(1)
|
|
$
|
859.5
|
|
|
$
|
932.3
|
|
|
|
$
|
2,220.6
|
|
|
$
|
2,574.5
|
|
Excise taxes
|
|
(293.5
|
)
|
|
(313.6
|
)
|
|
|
(771.9
|
)
|
|
(888.8
|
)
|
Net sales(1)
|
|
566.0
|
|
|
618.7
|
|
|
|
1,448.7
|
|
|
1,685.7
|
|
Cost of goods sold
|
|
(338.8
|
)
|
|
(377.6
|
)
|
|
|
(886.6
|
)
|
|
(1,037.1
|
)
|
Gross profit
|
|
227.2
|
|
|
241.1
|
|
|
|
562.1
|
|
|
648.6
|
|
Marketing, general and administrative expenses
|
|
(133.5
|
)
|
|
(139.2
|
)
|
|
|
(396.9
|
)
|
|
(435.0
|
)
|
Special items, net
|
|
(277.8
|
)
|
|
(356.5
|
)
|
|
|
(305.5
|
)
|
|
(359.3
|
)
|
Operating income (loss)
|
|
(184.1
|
)
|
|
(254.6
|
)
|
|
|
(140.3
|
)
|
|
(145.7
|
)
|
Interest income, net
|
|
1.0
|
|
|
1.1
|
|
|
|
3.0
|
|
|
3.4
|
|
Other income (expense), net
|
|
(0.1
|
)
|
|
(1.6
|
)
|
|
|
(1.0
|
)
|
|
(1.3
|
)
|
Income (loss) from continuing operations before income taxes
|
|
$
|
(183.2
|
)
|
|
$
|
(255.1
|
)
|
|
|
$
|
(138.3
|
)
|
|
$
|
(143.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Gross segment sales include intercompany sales to MCI consisting of
$1.4 million of net sales and 0.016 million hectoliters and $3.6
million of net sales and 0.043 million hectoliters for the three and
nine months ended September 30, 2015, respectively. Gross segment
sales include intercompany sales to MCI consisting of $1.5 million
of net sales and 0.017 million hectoliters and $4.2 million of net
sales and 0.046 million hectoliters for the three and nine months
ended September 30, 2014, respectively. The offset is included
within MCI cost of goods sold. These amounts are eliminated in the
consolidated totals.
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
12: Molson Coors International Results of Operations ($
In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
|
September 30, 2015
|
|
September 30, 2014
|
Volume in hectoliters(1)
|
|
0.426
|
|
|
0.366
|
|
|
|
1.235
|
|
|
1.022
|
|
Sales
|
|
$
|
50.3
|
|
|
$
|
50.2
|
|
|
|
$
|
133.5
|
|
|
$
|
141.5
|
|
Excise taxes
|
|
(9.0
|
)
|
|
(6.8
|
)
|
|
|
(25.9
|
)
|
|
(22.2
|
)
|
Net sales
|
|
41.3
|
|
|
43.4
|
|
|
|
107.6
|
|
|
119.3
|
|
Cost of goods sold(2)
|
|
(26.9
|
)
|
|
(26.0
|
)
|
|
|
(73.8
|
)
|
|
(74.2
|
)
|
Gross profit
|
|
14.4
|
|
|
17.4
|
|
|
|
33.8
|
|
|
45.1
|
|
Marketing, general and administrative expenses
|
|
(16.5
|
)
|
|
(20.1
|
)
|
|
|
(46.7
|
)
|
|
(54.5
|
)
|
Special items, net
|
|
—
|
|
|
—
|
|
|
|
(6.4
|
)
|
|
—
|
|
Operating income (loss)
|
|
(2.1
|
)
|
|
(2.7
|
)
|
|
|
(19.3
|
)
|
|
(9.4
|
)
|
Other income (expense), net
|
|
—
|
|
|
—
|
|
|
|
(0.4
|
)
|
|
—
|
|
Income (loss) from continuing operations before income taxes
|
|
$
|
(2.1
|
)
|
|
$
|
(2.7
|
)
|
|
|
$
|
(19.7
|
)
|
|
$
|
(9.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Excludes royalty volume of 0.397 million hectoliters and 1.120
million hectoliters for the three and nine months ended September
30, 2015, and excludes royalty volume of 0.368 million hectoliters
and 1.036 million hectoliters for the three and nine months ended
September 30, 2014, respectively.
|
|
|
|
(2)
|
|
|
Reflects gross segment amounts and for the three months ended
September 30, 2015, and September 30, 2014, includes intercompany
cost of goods sold from Europe of $1.4 million and $1.5 million,
respectively. The nine months ended September 30, 2015, and
September 30, 2014, includes intercompany cost of goods sold from
Europe of $3.6 million and $4.2 million, respectively. The offset is
included within Europe net sales. These amounts are eliminated in
the consolidated totals.
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
13: Corporate Results of Operations ($ In
millions) (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
|
September 30, 2015
|
|
September 30, 2014
|
Volume in hectoliters
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Sales
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
|
$
|
0.8
|
|
|
$
|
0.9
|
|
Excise taxes
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Net sales
|
|
0.3
|
|
|
0.2
|
|
|
|
0.8
|
|
|
0.9
|
|
Cost of goods sold
|
|
(4.8
|
)
|
|
2.4
|
|
|
|
(9.6
|
)
|
|
2.8
|
|
Gross profit
|
|
(4.5
|
)
|
|
2.6
|
|
|
|
(8.8
|
)
|
|
3.7
|
|
Marketing, general and administrative expenses
|
|
(24.6
|
)
|
|
(21.4
|
)
|
|
|
(74.8
|
)
|
|
(75.0
|
)
|
Special items, net
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(0.3
|
)
|
Operating income (loss)
|
|
(29.1
|
)
|
|
(18.8
|
)
|
|
|
(83.6
|
)
|
|
(71.6
|
)
|
Interest expense, net
|
|
(27.8
|
)
|
|
(32.4
|
)
|
|
|
(89.6
|
)
|
|
(106.3
|
)
|
Other income (expense), net
|
|
0.1
|
|
|
(4.6
|
)
|
|
|
0.8
|
|
|
(5.8
|
)
|
Income (loss) from continuing operations before income taxes
|
|
$
|
(56.8
|
)
|
|
$
|
(55.8
|
)
|
|
|
$
|
(172.4
|
)
|
|
$
|
(183.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC (1) Table 14:
MillerCoors Results of Operations ($ In millions) (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
|
September 30, 2015
|
|
September 30, 2014
|
Volume in hectoliters(2)
|
|
18.470
|
|
|
19.327
|
|
|
|
54.573
|
|
|
56.142
|
|
Sales
|
|
$
|
2,286.8
|
|
|
$
|
2,374.3
|
|
|
|
$
|
6,826.9
|
|
|
$
|
6,951.3
|
|
Excise taxes
|
|
(286.8
|
)
|
|
(304.8
|
)
|
|
|
(849.6
|
)
|
|
(884.7
|
)
|
Net sales
|
|
2,000.0
|
|
|
2,069.5
|
|
|
|
5,977.3
|
|
|
6,066.6
|
|
Cost of goods sold
|
|
(1,173.9
|
)
|
|
(1,237.7
|
)
|
|
|
(3,490.6
|
)
|
|
(3,614.2
|
)
|
Gross profit
|
|
826.1
|
|
|
831.8
|
|
|
|
2,486.7
|
|
|
2,452.4
|
|
Marketing, general and administrative expenses
|
|
(475.1
|
)
|
|
(449.7
|
)
|
|
|
(1,333.0
|
)
|
|
(1,321.8
|
)
|
Special items, net
|
|
(28.0
|
)
|
|
(0.2
|
)
|
|
|
(28.0
|
)
|
|
(1.4
|
)
|
Operating income
|
|
323.0
|
|
|
381.9
|
|
|
|
1,125.7
|
|
|
1,129.2
|
|
Interest income (expense), net
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
Other income (expense), net
|
|
0.2
|
|
|
1.1
|
|
|
|
4.6
|
|
|
4.3
|
|
Income before income taxes
|
|
322.9
|
|
|
382.6
|
|
|
|
1,129.3
|
|
|
1,132.5
|
|
Income tax expense
|
|
(1.1
|
)
|
|
(1.3
|
)
|
|
|
(3.8
|
)
|
|
(4.6
|
)
|
Net income
|
|
321.8
|
|
|
381.3
|
|
|
|
1,125.5
|
|
|
1,127.9
|
|
Net (income) loss attributable to noncontrolling interests
|
|
(5.3
|
)
|
|
(4.8
|
)
|
|
|
(17.2
|
)
|
|
(15.0
|
)
|
Net income attributable to MillerCoors
|
|
$
|
316.5
|
|
|
$
|
376.5
|
|
|
|
$
|
1,108.3
|
|
|
$
|
1,112.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
September 30, 2015
|
|
December 31, 2014
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
393.6
|
|
|
$
|
624.6
|
|
Accounts receivable, net
|
|
524.6
|
|
|
527.7
|
|
Other receivables, net
|
|
91.8
|
|
|
94.0
|
|
Inventories:
|
|
|
|
|
Finished
|
|
173.1
|
|
|
135.3
|
|
In process
|
|
15.7
|
|
|
20.7
|
|
Raw materials
|
|
24.6
|
|
|
34.5
|
|
Packaging materials
|
|
11.1
|
|
|
11.7
|
|
Total inventories
|
|
224.5
|
|
|
202.2
|
|
Other current assets, net
|
|
89.8
|
|
|
101.4
|
|
Deferred tax assets
|
|
27.3
|
|
|
27.2
|
|
Total current assets
|
|
1,351.6
|
|
|
1,577.1
|
|
Properties, net
|
|
1,614.8
|
|
|
1,798.0
|
|
Goodwill
|
|
2,046.8
|
|
|
2,191.6
|
|
Other intangibles, net
|
|
4,923.6
|
|
|
5,755.8
|
|
Investment in MillerCoors
|
|
2,440.7
|
|
|
2,388.6
|
|
Deferred tax assets
|
|
38.5
|
|
|
58.2
|
|
Notes receivable, net
|
|
21.3
|
|
|
21.6
|
|
Other assets
|
|
208.0
|
|
|
189.2
|
|
Total assets
|
|
$
|
12,645.3
|
|
|
$
|
13,980.1
|
|
Liabilities and equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable and other current liabilities
|
|
$
|
1,196.2
|
|
|
$
|
1,305.0
|
|
Deferred tax liabilities
|
|
164.8
|
|
|
164.8
|
|
Current portion of long-term debt and short-term borrowings
|
|
48.2
|
|
|
849.0
|
|
Discontinued operations
|
|
4.1
|
|
|
6.1
|
|
Total current liabilities
|
|
1,413.3
|
|
|
2,324.9
|
|
Long-term debt
|
|
2,953.9
|
|
|
2,321.3
|
|
Pension and postretirement benefits
|
|
243.0
|
|
|
542.9
|
|
Deferred tax liabilities
|
|
668.8
|
|
|
784.3
|
|
Unrecognized tax benefits
|
|
12.9
|
|
|
25.4
|
|
Other liabilities
|
|
70.3
|
|
|
79.7
|
|
Discontinued operations
|
|
10.4
|
|
|
15.5
|
|
Total liabilities
|
|
5,372.6
|
|
|
6,094.0
|
|
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 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: 171.7 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)
|
|
108.3
|
|
|
108.5
|
|
Class B exchangeable shares, no par value (issued and outstanding:
16.7 shares and 17.6 shares, respectively)
|
|
628.2
|
|
|
661.5
|
|
Paid-in capital
|
|
3,951.7
|
|
|
3,871.2
|
|
Retained earnings
|
|
4,538.5
|
|
|
4,439.9
|
|
Accumulated other comprehensive income (loss)
|
|
(1,556.7
|
)
|
|
(898.4
|
)
|
Class B common stock held in treasury at cost (8.8 shares and 7.5
shares, respectively)
|
|
(421.4
|
)
|
|
(321.1
|
)
|
Total Molson Coors Brewing Company stockholders' equity
|
|
7,250.3
|
|
|
7,863.3
|
|
Noncontrolling interests
|
|
22.4
|
|
|
22.8
|
|
Total equity
|
|
7,272.7
|
|
|
7,886.1
|
|
Total liabilities and equity
|
|
$
|
12,645.3
|
|
|
$
|
13,980.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries Table
16: Condensed Consolidated Statements of Cash Flows ($
In millions) (Unaudited)
|
|
|
|
|
|
Nine Months Ended
|
|
|
September 30, 2015
|
|
September 30, 2014
|
Cash flows from operating activities:
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
|
$
|
329.1
|
|
|
$
|
423.4
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
241.9
|
|
|
233.0
|
|
Amortization of debt issuance costs and discounts
|
|
3.6
|
|
|
5.6
|
|
Share-based compensation
|
|
12.9
|
|
|
18.0
|
|
(Gain) loss on sale or impairment of properties and other assets, net
|
|
272.1
|
|
|
372.0
|
|
Deferred income tax (benefit) expense
|
|
(93.1
|
)
|
|
(19.0
|
)
|
Equity income in MillerCoors
|
|
(470.1
|
)
|
|
(471.8
|
)
|
Distributions from MillerCoors
|
|
470.1
|
|
|
471.8
|
|
Equity in net (income) loss of other unconsolidated affiliates
|
|
(2.6
|
)
|
|
(3.0
|
)
|
Distributions from other unconsolidated affiliates
|
|
—
|
|
|
15.4
|
|
Excess tax benefits from share-based compensation
|
|
(8.5
|
)
|
|
(6.6
|
)
|
Unrealized (gain) loss on foreign currency fluctuations and
derivative instruments, net
|
|
10.0
|
|
|
(10.2
|
)
|
Change in current assets and liabilities (net of impact of business
combinations) and other
|
|
(299.4
|
)
|
|
29.4
|
|
(Gain) loss from discontinued operations
|
|
(4.5
|
)
|
|
0.4
|
|
Net cash provided by (used in) operating activities
|
|
461.5
|
|
|
1,058.4
|
|
Cash flows from investing activities:
|
|
|
|
|
Additions to properties
|
|
(208.3
|
)
|
|
(195.8
|
)
|
Proceeds from sales of properties and other assets
|
|
8.8
|
|
|
6.0
|
|
Acquisition of businesses, net of cash acquired
|
|
(91.2
|
)
|
|
—
|
|
Proceeds from sale of business
|
|
8.7
|
|
|
—
|
|
Investment in MillerCoors
|
|
(1,144.5
|
)
|
|
(1,100.4
|
)
|
Return of capital from MillerCoors
|
|
1,088.2
|
|
|
1,053.9
|
|
Return of capital from an unconsolidated affiliate
|
|
—
|
|
|
5.9
|
|
Loan repayments
|
|
26.1
|
|
|
7.1
|
|
Loan advances
|
|
(29.9
|
)
|
|
(14.6
|
)
|
Other
|
|
(3.3
|
)
|
|
—
|
|
Net cash used in investing activities
|
|
(345.4
|
)
|
|
(237.9
|
)
|
Cash flows from financing activities:
|
|
|
|
|
Exercise of stock options under equity compensation plans
|
|
31.2
|
|
|
38.5
|
|
Excess tax benefits from share-based compensation
|
|
8.5
|
|
|
6.6
|
|
Dividends paid
|
|
(228.1
|
)
|
|
(205.1
|
)
|
Payments for purchase of treasury stock
|
|
(100.1
|
)
|
|
—
|
|
Proceeds from long-term debt
|
|
679.9
|
|
|
—
|
|
Payments on long-term debt
|
|
(676.4
|
)
|
|
(61.6
|
)
|
Proceeds from short-term borrowings
|
|
33.1
|
|
|
35.5
|
|
Payments on short-term borrowings
|
|
(19.7
|
)
|
|
(23.3
|
)
|
Payments on settlement of derivative instruments
|
|
—
|
|
|
(65.2
|
)
|
Net proceeds from (payments on) revolving credit facilities and
commercial paper
|
|
17.1
|
|
|
(350.5
|
)
|
Change in overdraft balances and other
|
|
(55.6
|
)
|
|
111.9
|
|
Net cash provided by (used in) financing activities
|
|
(310.1
|
)
|
|
(513.2
|
)
|
Cash and cash equivalents:
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
(194.0
|
)
|
|
307.3
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
(37.0
|
)
|
|
(27.5
|
)
|
Balance at beginning of year
|
|
624.6
|
|
|
442.3
|
|
Balance at end of period
|
|
$
|
393.6
|
|
|
$
|
722.1
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151105005161/en/
Copyright Business Wire 2015