-
First-quarter diluted earnings per share were 29 cents on a
reported basis or 41 cents on a comparable basis, including a negative
currency translation impact of 2 cents.
-
Net sales were $1.5 billion, down 7 percent on a reported basis or
down 3½ percent on a currency-neutral basis; comparable volume
declined 4 percent.
-
Reported operating income was $122 million; comparable operating
income was $162 million, down 2 percent or up 1½ percent on a
currency-neutral basis.
-
CCE affirms its full-year guidance for 2016, including slightly
positive comparable and currency-neutral net sales growth.
Coca-Cola Enterprises, Inc. (NYSE: CCE) (Euronext Paris: CCE) today
reported first-quarter 2016 operating income of $122 million or $162
million on a comparable basis. In the quarter, diluted earnings per
share were 29 cents on a reported basis or 41 cents on a comparable
basis. Currency translation had a negative impact of 2 cents on
comparable diluted earnings per share.
For the first quarter, net sales totaled $1.5 billion, down 7 percent
from the same quarter a year ago. On a currency-neutral basis, net sales
declined 3½ percent. This includes the negative volume impact resulting
from temporary supply chain disruptions in Great Britain related to the
implementation of new software programs and processes. In addition,
there was one fewer selling day in the quarter.
“Throughout our territories, we continue to face an overall soft
consumer environment that has limited category growth,” said John F.
Brock, chairman and chief executive officer. “However, the first quarter
is our smallest, and we remain confident that our marketplace
strategies, innovation initiatives, and customer-focused effectiveness
will sustain our outlook for the full year.
“We are working diligently to close the transaction to create Coca-Cola
European Partners by the end of the second quarter,” Mr. Brock said.
“This will unite our company with the German and Iberian bottlers,
create new synergies, improve operations through leveraging best
practices, and most importantly, better enable us to achieve our
ultimate goal: continuing to build shareowner value.”
OPERATING REVIEW
During the first quarter, comparable volume declined 4 percent. This
reflects continued difficult marketplace and macroeconomic trends across
our territories and temporary supply chain disruptions in Great Britain
related to the implementation of new software programs and processes.
Volume in Great Britain declined 5 percent, and volume on the Continent
declined 3½ percent.
Total volume results include 1 percent growth in still brands, driven by
double-digit growth in water through increased availability of
smartwater in Great Britain and solid mid-single-digit growth for
Chaudfontaine. Sparkling brands declined 5 percent, reflecting a 6½
percent decline in Coca-Cola trademark brands and mid-single-digit
growth in energy. Monster brands grew more than 15 percent through
organic growth and expanded distribution in Norway that began mid last
year.
For the first quarter, net pricing per case was flat, and cost of sales
per case declined 2½ percent. Operating expenses increased 1½ percent.
These figures are comparable and currency neutral.
“Even as we work to close the transaction to create Coca-Cola European
Partners, our local teams are focused on delivering our plans for 2016,”
said Damian Gammell, chief operating officer. “We have solid marketing
plans in place, including strong initiatives for the UEFA Euro 2016,
which is Europe’s biggest soccer event, and a renewed focus on immediate
consumption, including a variety of new packaging initiatives. And, we
will benefit from initiatives supporting the ‘Taste the Feeling’
campaign, which will better link our four core Coca-Cola trademark
products.”
FULL-YEAR 2016 OUTLOOK
CCE expects full-year 2016 comparable and currency-neutral net sales to
be up slightly. The company expects full-year 2016 free cash flow in a
range of $500 million to $550 million after expected CCEP transaction
cash costs of $75 million to $100 million. Capital expenditures are
expected to be approximately $325 million. Weighted-average cost of debt
is expected to be approximately 3 percent, and the comparable effective
tax rate for 2016 is expected to be between 26 percent and 28 percent.
Given the pending transaction, CCE does not expect to repurchase shares
in 2016.
COCA-COLA EUROPEAN PARTNERS
As announced in the third quarter of 2015, Coca-Cola Enterprises,
Coca-Cola Iberian Partners, S.A.U. (“CCIP”), and Coca-Cola
Erfrischungsgetränke GmbH (“CCEG”), a wholly owned subsidiary of The
Coca-Cola Company (NYSE: KO), have agreed to combine their businesses
into a new company to be called Coca-Cola European Partners plc
("CCEP"), in a transformational transaction that will create the world’s
largest independent Coca-Cola bottler, based on net sales.
Pending collective approval by Coca-Cola Enterprises’ shareowners and
regulatory agencies, the transaction is expected to close by the end of
the second quarter, 2016.
CONFERENCE CALL
CCE will host a conference call with investors and analysts today at 10
a.m. EDT. The call can be accessed through the company’s website at www.cokecce.com.
ABOUT CCE
Coca-Cola Enterprises, Inc. is the leading Western European marketer,
producer, and distributor of nonalcoholic ready-to-drink beverages and
one of the world’s largest independent Coca-Cola bottlers. CCE is the
sole licensed bottler for products of The Coca-Cola Company in Belgium,
continental France, Great Britain, Luxembourg, Monaco, the Netherlands,
Norway, and Sweden. CCE operates with a local focus and has 17
manufacturing sites across Europe, where the company manufactures nearly
90 percent of its products in the markets in which they are consumed.
Sustainability is core to CCE’s business, and the company has been
recognized by leading organizations in North America and Europe for its
progress in water use reduction, carbon footprint reduction, and
recycling initiatives. For more information about CCE, please visit www.cokecce.com
and follow the company on Twitter at @cokecce.
FORWARD-LOOKING STATEMENTS
Included in this news release are forward-looking management comments
and other statements that reflect management’s current outlook for
future periods. As always, these expectations are based on currently
available competitive, financial, and economic data along with our
current operating plans and are subject to risks and uncertainties that
could cause actual results to differ materially from the results
contemplated by the forward-looking statements. The forward-looking
statements in this news release should be read in conjunction with the
risks and uncertainties discussed in our filings with the Securities and
Exchange Commission (“SEC”), including our most recent Form 10-K and
other SEC filings.
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval.
In connection with the proposed transaction, CCEP has filed with the
SEC a registration statement on Form F-4 that includes a definitive
proxy statement/prospectus regarding the proposed transaction. A
definitive proxy statement/prospectus has been mailed to CCE’s
shareowners in connection with the proposed transaction.
_____________________
A reconciliation of reported (GAAP) to comparable (non-GAAP) information
and other non-GAAP measures used by management in managing the business
are detailed on the following pages of this news release.
|
COCA-COLA ENTERPRISES, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited; in millions, except per share data)
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
2016
|
|
2015
|
Net sales
|
|
|
$
|
1,517
|
|
|
$
|
1,631
|
Cost of sales
|
|
|
957
|
|
|
1,063
|
Gross profit
|
|
|
560
|
|
|
568
|
Selling, delivery, and administrative expenses
|
|
|
438
|
|
|
410
|
Operating income
|
|
|
122
|
|
|
158
|
Interest expense, net
|
|
|
30
|
|
|
30
|
Other nonoperating (expense) income
|
|
|
(2
|
)
|
|
2
|
Income before income taxes
|
|
|
90
|
|
|
130
|
Income tax expense
|
|
|
24
|
|
|
34
|
Net income
|
|
|
$
|
66
|
|
|
$
|
96
|
Basic earnings per share
|
|
|
$
|
0.29
|
|
|
$
|
0.41
|
Diluted earnings per share
|
|
|
$
|
0.29
|
|
|
$
|
0.40
|
Dividends declared per share
|
|
|
$
|
0.30
|
|
|
$
|
0.28
|
Basic weighted average shares outstanding
|
|
|
228
|
|
|
235
|
Diluted weighted average shares outstanding
|
|
|
232
|
|
|
240
|
|
|
|
|
|
|
|
COCA-COLA ENTERPRISES, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
2016
|
|
2015
|
Net income
|
|
|
$
|
66
|
|
|
$
|
96
|
|
Components of other comprehensive income (loss):
|
|
|
|
|
|
Currency translations
|
|
|
|
|
|
Pretax activity, net
|
|
|
64
|
|
|
(279
|
)
|
Tax effect
|
|
|
—
|
|
|
—
|
|
Currency translations, net of tax
|
|
|
64
|
|
|
(279
|
)
|
Net investment hedges
|
|
|
|
|
|
Pretax activity, net
|
|
|
(186
|
)
|
|
152
|
|
Tax effect
|
|
|
65
|
|
|
(53
|
)
|
Net investment hedges, net of tax
|
|
|
(121
|
)
|
|
99
|
|
Cash flow hedges
|
|
|
|
|
|
Pretax activity, net
|
|
|
14
|
|
|
(2
|
)
|
Tax effect
|
|
|
(2
|
)
|
|
—
|
|
Cash flow hedges, net of tax
|
|
|
12
|
|
|
(2
|
)
|
Pension plan adjustments
|
|
|
|
|
|
Pretax activity, net
|
|
|
7
|
|
|
7
|
|
Tax effect
|
|
|
(1
|
)
|
|
(2
|
)
|
Pension plan adjustments, net of tax
|
|
|
6
|
|
|
5
|
|
Other comprehensive loss, net of tax
|
|
|
(39
|
)
|
|
(177
|
)
|
Comprehensive income (loss)
|
|
|
$
|
27
|
|
|
$
|
(81
|
)
|
|
|
|
|
|
|
|
|
|
|
COCA-COLA ENTERPRISES, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
April 1,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
Current:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
279
|
|
|
$
|
170
|
|
Trade accounts receivable
|
|
|
1,352
|
|
|
1,314
|
|
Amounts receivable from The Coca-Cola Company
|
|
|
72
|
|
|
56
|
|
Inventories
|
|
|
371
|
|
|
336
|
|
Other current assets
|
|
|
220
|
|
|
170
|
|
Total current assets
|
|
|
2,294
|
|
|
2,046
|
|
Property, plant, and equipment, net
|
|
|
2,000
|
|
|
1,920
|
|
Franchise license intangible assets, net
|
|
|
3,384
|
|
|
3,383
|
|
Goodwill
|
|
|
93
|
|
|
88
|
|
Other noncurrent assets
|
|
|
235
|
|
|
159
|
|
Total assets
|
|
|
$
|
8,006
|
|
|
$
|
7,596
|
|
LIABILITIES
|
|
|
|
|
|
Current:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
$
|
1,766
|
|
|
$
|
1,601
|
|
Amounts payable to The Coca-Cola Company
|
|
|
107
|
|
|
102
|
|
Current portion of debt
|
|
|
577
|
|
|
454
|
|
Total current liabilities
|
|
|
2,450
|
|
|
2,157
|
|
Debt, less current portion
|
|
|
3,518
|
|
|
3,392
|
|
Other noncurrent liabilities
|
|
|
235
|
|
|
236
|
|
Noncurrent deferred income tax liabilities
|
|
|
866
|
|
|
854
|
|
Total liabilities
|
|
|
7,069
|
|
|
6,639
|
|
SHAREOWNERS’ EQUITY
|
|
|
|
|
|
Common stock
|
|
|
4
|
|
|
4
|
|
Additional paid-in capital
|
|
|
4,053
|
|
|
4,032
|
|
Reinvested earnings
|
|
|
2,327
|
|
|
2,329
|
|
Accumulated other comprehensive income
|
|
|
(1,036
|
)
|
|
(997
|
)
|
Common stock in treasury, at cost
|
|
|
(4,411
|
)
|
|
(4,411
|
)
|
Total shareowners’ equity
|
|
|
937
|
|
|
957
|
|
Total liabilities and shareowners’ equity
|
|
|
$
|
8,006
|
|
|
$
|
7,596
|
|
|
|
|
|
|
|
|
|
|
|
COCA-COLA ENTERPRISES, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
2016
|
|
|
2015
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
66
|
|
|
|
$
|
96
|
|
Adjustments to reconcile net income to net cash derived from
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
66
|
|
|
|
71
|
|
Share-based compensation expense
|
|
|
9
|
|
|
|
8
|
|
Deferred income tax benefit
|
|
|
(17
|
)
|
|
|
(9
|
)
|
Pension expense less than contributions
|
|
|
(3
|
)
|
|
|
(5
|
)
|
Net changes in assets and liabilities
|
|
|
2
|
|
|
|
(3
|
)
|
Net cash derived from operating activities
|
|
|
123
|
|
|
|
158
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
Capital asset investments
|
|
|
(87
|
)
|
|
|
(98
|
)
|
Other investing activities, net
|
|
|
—
|
|
|
|
(9
|
)
|
Net cash used in investing activities
|
|
|
(87
|
)
|
|
|
(107
|
)
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
Net change in commercial paper
|
|
|
122
|
|
|
|
(109
|
)
|
Issuances of debt
|
|
|
—
|
|
|
|
527
|
|
Payments on debt
|
|
|
(1
|
)
|
|
|
(3
|
)
|
Shares repurchased under share repurchase programs
|
|
|
—
|
|
|
|
(313
|
)
|
Dividend payments on common stock
|
|
|
(68
|
)
|
|
|
(65
|
)
|
Exercise of employee share options
|
|
|
9
|
|
|
|
10
|
|
Other financing activities, net
|
|
|
3
|
|
|
|
—
|
|
Net cash derived from financing activities
|
|
|
65
|
|
|
|
47
|
|
Net effect of currency exchange rate changes on cash and cash
equivalents
|
|
|
8
|
|
|
|
(20
|
)
|
Net Change in Cash and Cash Equivalents
|
|
|
109
|
|
|
|
78
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
|
170
|
|
|
|
223
|
|
Cash and Cash Equivalents at End of Period
|
|
|
$
|
279
|
|
|
|
$
|
301
|
|
|
|
|
|
|
|
|
|
|
|
|
COCA-COLA ENTERPRISES, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP (a)
|
(Unaudited; in millions, except per share data which is
calculated prior to rounding)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First-Quarter 2016
|
|
|
|
|
|
|
Selling,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
delivery, and
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
administrative
|
|
Operating
|
|
Income tax
|
|
|
|
|
|
earnings per
|
|
|
|
|
|
Cost of sales
|
|
expenses
|
|
income
|
|
expense
|
|
|
Net income
|
|
|
share
|
|
Reported (GAAP) (b)
|
|
|
$957
|
|
$438
|
|
$122
|
|
$24
|
|
|
$66
|
|
|
$0.29
|
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market effects (c)
|
|
|
3
|
|
—
|
|
(3
|
)
|
(1
|
)
|
|
(2
|
)
|
|
(0.01
|
)
|
|
Restructuring charges (d)
|
|
|
—
|
|
(31
|
)
|
31
|
|
9
|
|
|
22
|
|
|
0.10
|
|
|
Merger related costs (e)
|
|
|
—
|
|
(12
|
)
|
12
|
|
4
|
|
|
8
|
|
|
0.03
|
|
Comparable (non-GAAP)
|
|
|
$960
|
|
$395
|
|
$162
|
|
$36
|
|
|
$94
|
|
|
$0.41
|
|
|
|
|
|
|
|
Diluted Weighted Average Shares Outstanding
|
|
|
232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First-Quarter 2015
|
|
|
|
|
|
|
Selling,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
delivery, and
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
administrative
|
|
Operating
|
|
Income tax
|
|
|
|
|
|
earnings per
|
|
|
|
|
|
Cost of sales
|
|
expenses
|
|
income
|
|
expense
|
|
|
Net income
|
|
|
share
|
|
Reported (GAAP) (b)
|
|
|
$1,063
|
|
$410
|
|
$158
|
|
$34
|
|
|
$96
|
|
|
$0.40
|
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market effects (c)
|
|
|
—
|
|
2
|
|
(2
|
)
|
—
|
|
|
(2
|
)
|
|
(0.01
|
)
|
|
Restructuring charges (d)
|
|
|
—
|
|
(9
|
)
|
9
|
|
2
|
|
|
7
|
|
|
0.03
|
|
Comparable (non-GAAP)
|
|
|
$1,063
|
|
$403
|
|
$165
|
|
$36
|
|
|
$101
|
|
|
$0.42
|
|
|
|
|
|
|
|
Diluted Weighted Average Shares Outstanding
|
|
|
240
|
|
___________________________
|
(a)
|
|
These non-GAAP measures are provided to allow investors to more
clearly evaluate our operating performance and business trends.
Management uses this information to review results excluding items
that are not necessarily indicative of ongoing results. The
adjusting items are based on established defined terms and
thresholds and represent all material items management considered
for year-over-year comparability.
|
|
|
|
(b)
|
|
As reflected in CCE's U.S. GAAP Condensed Consolidated Financial
Statements.
|
|
|
|
(c)
|
|
Amounts represent the net out-of-period mark-to-market impact of
non-designated commodity hedges.
|
|
|
|
(d)
|
|
Amounts represent nonrecurring restructuring charges.
|
|
|
|
(e)
|
|
Amounts represent costs associated with the pending merger with
Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke as
announced on August 6, 2015.
|
|
|
|
COCA-COLA ENTERPRISES, INC.
|
|
RECONCILIATION OF GAAP TO NON-GAAP SEGMENT INCOME (a)
|
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
First-Quarter 2016
|
|
|
|
|
Europe
|
|
Corporate
|
|
Operating income
|
|
Reported (GAAP) (b)
|
|
$162
|
|
|
$(40
|
)
|
|
$122
|
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market effects (c)
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
Restructuring charges (d)
|
|
31
|
|
|
—
|
|
|
31
|
|
|
Merger related costs (e)
|
|
1
|
|
|
11
|
|
|
12
|
|
Comparable (non-GAAP)
|
|
$194
|
|
|
$(32
|
)
|
|
$162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First-Quarter 2015
|
|
|
|
|
Europe
|
|
Corporate
|
|
Operating income
|
|
Reported (GAAP) (b)
|
|
$190
|
|
|
$(32
|
)
|
|
$158
|
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market effects (c)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
Restructuring charges (d)
|
|
9
|
|
|
—
|
|
|
9
|
|
Comparable (non-GAAP)
|
|
$199
|
|
|
$(34
|
)
|
|
$165
|
|
___________________________
|
(a)
|
|
These non-GAAP measures are provided to allow investors to more
clearly evaluate our operating performance and business trends.
Management uses this information to review results excluding items
that are not necessarily indicative of ongoing results. The
adjusting items are based on established defined terms and
thresholds and represent all material items management considered
for year-over-year comparability.
|
|
|
|
(b)
|
|
As reflected in CCE's U.S. GAAP Condensed Consolidated Financial
Statements.
|
|
|
|
(c)
|
|
Amounts represent the net out-of-period mark-to-market impact of
non-designated commodity hedges.
|
|
|
|
(d)
|
|
Amounts represent nonrecurring restructuring charges.
|
|
|
|
(e)
|
|
Amounts represent costs associated with the pending merger with
Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke as
announced on August 6, 2015.
|
|
|
|
COCA-COLA ENTERPRISES, INC.
|
CURRENCY IMPACT ON OPERATING MEASURES (a)
|
(Unaudited; percentages rounded to the nearest 0.5 percent)
|
|
|
|
|
|
|
|
% Change vs. Prior Year
|
|
|
|
GAAP (b)
|
|
non-GAAP (c)
|
|
|
|
|
|
Currency
|
|
Reported
|
|
|
|
Currency
|
|
Comparable
|
|
|
|
|
|
impact on
|
|
currency-
|
|
|
|
impact on
|
|
currency-
|
First-Quarter 2016
|
|
|
Reported
|
|
reported
|
|
neutral
|
|
Comparable
|
|
comparable
|
|
neutral
|
Net sales
|
|
|
(7.0
|
)%
|
|
(3.5
|
)%
|
|
(3.5
|
)%
|
|
(7.0
|
)%
|
|
(3.5
|
)%
|
|
(3.5
|
)%
|
Selling, delivery, and administrative expenses
|
|
|
7.0
|
|
|
(3.5
|
)
|
|
10.5
|
|
|
(2.0
|
)
|
|
(3.5
|
)
|
|
1.5
|
|
Operating income
|
|
|
(23.0
|
)
|
|
(3.5
|
)
|
|
(19.5
|
)
|
|
(2.0
|
)
|
|
(3.5
|
)
|
|
1.5
|
|
Diluted earnings per share
|
|
|
(27.5
|
)
|
|
(5.0
|
)
|
|
(22.5
|
)
|
|
(2.5
|
)
|
|
(4.0
|
)
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First-Quarter 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
(13.0
|
)%
|
|
(17.0
|
)%
|
|
4.0
|
%
|
|
(13.0
|
)%
|
|
(17.0
|
)%
|
|
4.0
|
%
|
Selling, delivery, and administrative expenses
|
|
|
(12.0
|
)
|
|
(14.5
|
)
|
|
2.5
|
|
|
(12.0
|
)
|
|
(15.0
|
)
|
|
3.0
|
|
Operating income
|
|
|
(14.0
|
)
|
|
(19.5
|
)
|
|
5.5
|
|
|
(15.0
|
)
|
|
(19.0
|
)
|
|
4.0
|
|
Diluted earnings per share
|
|
|
(9.0
|
)
|
|
(20.5
|
)
|
|
11.5
|
|
|
(8.5
|
)
|
|
(23.5
|
)
|
|
15.0
|
|
___________________________
(a)
|
|
Currency impact is calculated by converting current year results at
prior year exchange rates.
|
|
|
|
(b)
|
|
Calculated based on CCE's U.S. GAAP Condensed Consolidated Financial
Statements.
|
|
|
|
(c)
|
|
These non-GAAP measures are provided to allow investors to more
clearly evaluate our operating performance and business trends.
Management uses this information to review results excluding items
that are not necessarily indicative of ongoing results. The
adjusting items are based on established defined terms and
thresholds and represent all material items management considered
for year-over-year comparability. See the Reconciliation of GAAP to
non-GAAP tables in this release for a list of all items impacting
comparability.
|
|
|
|
COCA-COLA ENTERPRISES, INC.
|
RECONCILIATION OF NON-GAAP MEASURES
|
(Unaudited; in millions, except percentages which are rounded to
the nearest 0.5 percent)
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
% Change vs. Prior Year
|
|
|
|
|
2016
|
|
2015
|
Net Sales Per Case
|
|
|
|
|
|
Change in net sales per case
|
|
|
(2.0
|
)%
|
|
(18.0
|
)%
|
Impact of excluding post mix, non-trade, and other
|
|
|
(1.5
|
)
|
|
—
|
|
Impact of currency exchange rate changes
|
|
|
3.5
|
|
|
16.0
|
|
Currency-Neutral Bottle and Can Net Pricing Per Case (a)
|
|
|
—
|
%
|
|
(2.0
|
)%
|
|
|
|
|
|
|
|
Cost of Sales Per Case
|
|
|
|
|
|
Change in cost of sales per case
|
|
|
(5.0
|
)%
|
|
(18.0
|
)%
|
Impact of excluding post mix, non-trade, and other
|
|
|
(1.0
|
)
|
|
—
|
|
Impact of currency exchange rate changes
|
|
|
3.5
|
|
|
16.0
|
|
Currency-Neutral Bottle and Can Cost of Sales Per Case (a)
|
|
|
(2.5
|
)%
|
|
(2.0
|
)%
|
|
|
|
|
|
|
|
Physical Case Bottle and Can Volume
|
|
|
|
|
|
Change in volume
|
|
|
(5.5
|
)%
|
|
6.5
|
%
|
Impact of selling day shift
|
|
|
1.5
|
|
|
(5.5
|
)
|
Comparable Bottle and Can Volume (b)
|
|
|
(4.0
|
)%
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
Reconciliation of Free Cash Flow (c)
|
|
|
2016
|
|
2015
|
Net cash derived from operating activities
|
|
|
$
|
123
|
|
|
$
|
158
|
|
Less: capital asset investments
|
|
|
(87
|
)
|
|
(98
|
)
|
Add: capital asset disposals
|
|
|
—
|
|
|
—
|
|
Free Cash Flow
|
|
|
$
|
36
|
|
|
$
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
April 1,
|
|
December 31,
|
Reconciliation of Net Debt (d)
|
|
|
2016
|
|
2015
|
Current portion of debt
|
|
|
$
|
577
|
|
|
$
|
454
|
|
Debt, less current portion
|
|
|
3,518
|
|
|
3,392
|
|
Less: cash and cash equivalents
|
|
|
(279
|
)
|
|
(170
|
)
|
Net Debt
|
|
|
$
|
3,816
|
|
|
$
|
3,676
|
|
___________________________
|
(a)
|
|
The non-GAAP financial measures "Currency-Neutral Bottle and Can Net
Pricing Per Case" and "Currency-Neutral Bottle and Can Cost of Sales
Per Case" are used to more clearly evaluate bottle and can pricing
and cost trends in the marketplace. These measures exclude items not
directly related to bottle and can pricing or cost or currency
exchange rate changes.
|
|
|
|
(b)
|
|
The non-GAAP measure "Comparable Bottle and Can Volume" is used to
analyze the performance of our business on a constant period basis.
There was one less selling day in the first quarter of 2016 versus
the first quarter of 2015.
|
|
|
|
(c)
|
|
The non-GAAP measure "Free Cash Flow" is provided to focus
management and investors on the cash available for debt reduction,
dividend distributions, share repurchase, and acquisition
opportunities.
|
|
|
|
(d)
|
|
The non-GAAP measure "Net Debt" is used to more clearly evaluate our
capital structure and leverage.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005862/en/
Copyright Business Wire 2016