Molson Coors Reports Second Quarter Results
Second Quarter 2016 Highlights(1)
- Worldwide beer volume: 16.1 million hectoliters, decreased 0.8%; Coors Light volume increased
4.1% worldwide and low-single-digits in the U.S.
- Net sales: $986.2 million, decreased 1.9% on a reported basis, and increased 1.9% in constant
currency
- Net sales per HL: $114.96, decreased 1.4%, and increased 2.4% in constant currency
- U.S. GAAP net income from continuing operations attributable to MCBC: $174.1 million
($0.81 per diluted share), decreased 24.1%
- Underlying after-tax income: $239.5 million ($1.11 per diluted share), decreased 9.2%
- Underlying EBITDA (earnings before interest, taxes, depreciation and amortization): $428.7
million, decreased 5.8%
First Half 2016 Highlights(1)
- Worldwide beer volume: 27.8 million hectoliters, unchanged from a year ago; Coors Light volume
increased 3.8% worldwide and low-single-digits in the U.S.
- Net sales: $1,643.4 million, decreased 3.7% on a reported basis, and increased 1.2% in
constant currency
- Net sales per HL: $114.70, decreased 4.1%, and increased 0.6% in constant currency
- U.S. GAAP net income from continuing operations attributable to MCBC: $333.4 million
($1.59 per diluted share), increased 8.1%
- Underlying after-tax income: $349.8 million ($1.66 per diluted share), unchanged from a year
ago
- Underlying EBITDA (earnings before interest, taxes, depreciation and amortization): $692.1
million, increased 1.2%
Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported U.S. GAAP net income from continuing operations attributable
to MCBC of $174.1 million, a 24.1 percent decrease versus a year ago, primarily due to non-cash special charges and other non-core
costs related to our pending MillerCoors acquisition; alcohol prohibition in Bihar, India; and planned brewery closures, along with
significantly higher sales and marketing expenses in the quarter. The Company also reported a 9.2 percent decrease in underlying
after-tax income for the second quarter 2016, driven by lower worldwide volume, higher brand investments, and negative foreign
currency movements, which were partially offset by positive mix, lower underlying net interest expense and higher underlying U.S.
equity income.
Molson Coors president and chief executive officer Mark Hunter said, “In the second quarter, we continued to focus on our First
Choice ambition and on building a stronger, broader and more premium brand portfolio, underpinned by incremental sales and
marketing investments, as we discussed on our first quarter earnings call. Progress in the quarter included net sales revenue per
hectoliter growth on a constant currency basis in all of our businesses, strong Coors Light growth globally, improved core brand
momentum, fast-growing innovations in key markets, and strong above-premium growth globally. We significantly increased investments
behind our brands, although the timing of shipments and other short-term factors held back bottom-line performance in the quarter.
In brands, Coors Light grew volume more than 4 percent globally -- including strong double-digit growth in Europe and Latin America
-- and low single-digit growth in the U.S., its best performance here in nearly three years. As a testament to our First Choice
approach, MillerCoors achieved for the first time in its history, the number-one position in the Tamarron Supplier Survey, which
polls hundreds of U.S. distributors across all alcohol beverage suppliers."
Mark added, "In the past few months, we have also made substantial progress on the pending MillerCoors transaction, including
integration planning and completing the necessary financing at very attractive rates. Investor demand for our recent debt offering
was very strong, and we achieved record and near-record low interest rates on our debt issue. We are pleased with the transaction
progress made to date, and we continue to plan for a closing before the end of 2016. We are very excited to be much closer to
completing this game-changing transaction, which will allow us to simplify decision-making and reduce the complexities of dual
ownership; it will help us to become a more integrated and efficient brewer; and it will enable us to become a more effective
competitor as a single owner, promoting consumer choice in an increasingly diverse and fast-growing brewing industry. As part of
the integration planning process, last week we announced some leadership appointments that will strengthen our combined
organization and that will take effect upon the close of the transaction. Our transaction and its timing remain dependent on the
completion of the ABI/SABMiller transaction."
Operating and Underlying Free Cash Flow
U.S. GAAP net cash provided by operating activities through the second quarter of 2016 was $264.4 million which
represents an increase of $66.3 million from prior year driven by higher cash paid for pension contributions in 2015, partially
offset by higher cash paid for taxes and interest and lower net income in the first half of 2016.
Underlying free cash flow through the second quarter of 2016 was $158.9 million. This represents a decrease of $82.2
million from the prior year, primarily driven by lower underlying after-tax income, negative foreign currency, and a decreased
benefit from working capital changes when excluding special and other non-core items, including higher cash paid for taxes.
Foreign Exchange
The Company’s second quarter underlying consolidated pretax income includes the negative effect of foreign currency movements
totaling $5.6 million. Negative currency impacts in the quarter were $2.2 million in Europe, $1.9 million in Canada, $1.2 million
in Corporate and $0.3 million in International.
Effective Income Tax Rates
The Company’s second quarter effective income tax rate was 10.8 percent on a reported basis and 19.5 percent on an underlying
basis. The effective tax rate on a reported basis decreased from prior year primarily driven by tax benefits recognized from
costs resulting from the pending acquisition, favorable tax treatment associated with the sale of the Vancouver brewery, as well as
higher net discrete tax benefits in 2016. The underlying effective tax rate was slightly higher than prior year primarily
due to changes in the geographic mix of income.
Debt
Total debt at the end of the second quarter was $3.027 billion, and cash and cash equivalents totaled $2.990 billion,
resulting in net debt of $37.0 million, which is significantly lower than the prior year primarily due to the proceeds
received from our February 2016 equity offering. Note that the June 30, 2016, balance sheet does not include approximately $6.9
billion of debt and related proceeds from the multi-currency debt offering, which closed on July 7, 2016.
Second Quarter Business Segment Results
The following are the Company’s second quarter 2016 results by business segment:
United States Business (MillerCoors)(2)
In our U.S. segment, reported equity income decreased 6.6 percent to $191.9 million in the second quarter of 2016
compared to the prior year, primarily driven by lower volume and our portion of higher special charges of $16.5 million related to
the planned closure of the Eden brewery.
Underlying U.S. segment equity income increased 1.4 percent to $208.4 million in the quarter, due to Molson Coors' $11.1
million anticipated refund of federal excise tax paid on imports. This tax refund is based on qualifying volumes exported from the
U.S. by Coors Brewing Company, a wholly-owned subsidiary of Molson Coors, and was driven by new legislation enacted this year in
the U.S.
MillerCoors Operating and Financial Highlights
MillerCoors domestic sales-to-retailers volume (STRs) declined 1.7 percent for the quarter. Domestic sales-to-wholesalers volume
(STWs) decreased 4.4 percent. Domestic net revenue per hectoliter, which excludes contract brewing and company-owned-distributor
sales, grew 0.7 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 0.6 percent. Contract brewing volumes decreased 1.3 percent.
Cost of goods sold (COGS) per hectoliter decreased 1.3 percent, driven by supply chain cost savings and lower aluminum and fuel
pricing. These factors were partially offset by brewery inflation and lower fixed-cost absorption due to lower volumes. Marketing,
general and administrative (MG&A) expense increased 1.8 percent, driven primarily by higher marketing investments and
employee-related expenses.
Reported MillerCoors net income for the quarter decreased 11.8 percent to $429.5 million, driven by $39.4 million
of higher special charges related to the planned closure of the Eden brewery, partially offset by the drivers discussed below.
Underlying net income for the quarter decreased 3.8 percent to $468.8 million, driven by the timing of shipments due to
year-over-year calendar shifts, partially offset by lower cost of goods sold, higher net pricing and positive sales mix.
Depreciation and amortization expenses for MillerCoors were $116.0 million in the second quarter, which include the accelerated
depreciation related to the planned closure of the Eden brewery of $33.0 million. Additions to tangible and intangible assets
totaled $90.9 million in the second quarter.
Canada Business
STRs decreased 0.1 percent on a reported basis in the second quarter. Molson Coors Canada sales volume decreased 0.8 percent in
the second quarter. Net sales per hectoliter increased 1.2 percent in local currency, driven primarily by positive pricing.
COGS per hectoliter increased 6.1 percent in local currency, due to input cost inflation, higher in-pack promotion expenses,
foreign currency movements and impacts from volume deleverage, partially offset by cost savings initiatives. MG&A expense
increased 9.2 percent in local currency, driven by higher brand investments, partially offset by lower overhead costs.
Canada income from continuing operations before income taxes on a reported basis decreased by 16.6 percent to $88.5
million in the second quarter of 2016 compared to the prior year, due to higher brand investments and input cost inflation,
partially offset by lower special charges and results of cost savings initiatives.
Canada underlying pretax income decreased 21.3 percent to $89.9 million in the quarter driven by higher brand investments
and input cost inflation, partially offset by results of cost savings initiatives. Foreign currency movements negatively impacted
earnings by $1.9 million. On a constant-currency basis, underlying pretax income decreased 19.7 percent.
Europe Business
Europe sales volume increased 1.6 percent, driven by the addition of the Staropramen and Rekorderlig brands in the U.K. this
year. Europe net sales per hectoliter increased 1.3 percent in local currency, due to positive brand and geographic mix, partially
offset by negative net pricing in the quarter.
COGS per hectoliter increased 2.2 percent in local currency, driven by mix shift to higher-cost brands and geographies. MG&A
expense increased 6.0 percent in local currency, due to higher marketing investments and brand amortization expenses.
Europe income from continuing operations before income taxes on a reported basis increased 20.4 percent to $59.0 million
in the second quarter of 2016, primarily driven by $16.8 million of lower special charges related to decreased net contract
termination charges and brewery closure costs in 2016 compared to 2015, partially offset by the drivers discussed below.
Europe underlying pretax income decreased 10.0 percent to $61.3 million in the quarter, due to higher brand investments
and amortization expenses, lower net pension benefit, the termination of the Heineken contract brewing arrangement in the U.K., and
unfavorable foreign currency movements, partially offset by higher sales volume and cost savings. Foreign currency movements
negatively impacted underlying results by $2.2 million.
International Business
Total International sales volume, including royalty volume, decreased 9.3 percent, driven by the enactment of total alcohol
prohibition in Bihar, India, the transfer of Staropramen in the U.K. to our Europe segment, along with the volume impact of our
China restructuring. These factors were largely offset by a strong double-digit volume increase for Coors Light, led by Latin
America, including our launch in Colombia, as well as volume growth in Japan. Net sales per hectoliter increased 42.5 percent,
driven by lower price promotion expense in China and favorable sales mix changes this year.
COGS per hectoliter increased 25.5 percent, due to sales mix changes. International MG&A expense increased 3.2 percent, due
to higher brand investments.
The International segment reported a loss from continuing operations before income taxes of $33.4 million in the second
quarter of 2016, compared to $12.2 million in the prior year, primarily driven by impairment charges related to the enactment of
total alcohol prohibition in Bihar during the second quarter of 2016, partially offset by the drivers discussed below.
The International underlying pretax loss of $2.6 million in the second quarter, versus a loss of $5.8 million a year ago,
improved due to volume growth in Latin America and Japan and favorable sales mix, as well as lower price promotion and overhead
expenses due to the substantial restructure of our China business last year, which resulted in a $3.6 million price promotion
expense a year ago. Foreign currency movements negatively impacted underlying pretax results by $0.3 million in the second
quarter.
Corporate
Corporate pretax loss on a reported basis was $109.1 million in the second quarter versus $58.4 million in the prior
year, primarily due to costs related to the pending MillerCoors acquisition, including $19.6 million of transaction costs recorded
within marketing, general and administrative expenses; $31.8 million recorded within other income (expense); and $13.3 million of
costs recorded within interest expense, net. Additionally, Corporate cost of goods sold included $13.0 million of gains related to
unrealized mark-to-market adjustments for commodity swaps, compared to $4.2 million of losses in the prior year.
Underlying Corporate pretax loss totaled $57.4 million for the second quarter versus a $54.2 million loss in the prior
year, driven by unfavorable foreign currency movements and higher commercial investments.
Special and Other Non-Core Items(3)
The following special and other non-core items have been excluded from underlying results:
During the quarter, Molson Coors recognized a net special charge of $34.5 million, primarily driven by non-cash asset
impairment charges associated with the enactment of total alcohol prohibition in Bihar, India. We also recognized asset abandonment
costs of $1.4 million in Canada related to the planned closure of the Vancouver brewery and $2.5 million in Europe related to the
closure of our Burton South and Plovdiv breweries.
During the quarter, MillerCoors recognized special charges of $39.4 million related to the planned closure of the Eden, North
Carolina, brewery. Our proportionate share of the special charges is $16.5 million.
Additionally, during the quarter we recorded net other non-core charges of $51.7 million, which was driven by costs incurred in
connection with the pending Acquisition of MillerCoors and the Miller global brand portfolio, which were slightly offset by
unrealized mark-to-market net gains on commodity hedges.
2016 Second 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 2016 second 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 November
1, 2016. The Company will post this release and related financial statements on its website today.
Upcoming Investor Webcast
The Company will host an online, real-time webcast in September at the following event:
Mark Hunter, Molson Coors President and CEO and Mauricio Restrepo, Molson Coors CFO, will present at the Barclays Global
Consumer Staples Conference in Boston on Wednesday, September 7, 2016, at 9:00 a.m. Eastern Time. A live webcast of this investor
event will be accessible via the Molson Coors Brewing Company website, www.molsoncoors.com, on the Investors page. An online replay of the presentation webcast will be available on
the website within two hours after the presentation.
Footnotes:
(1) The Company calculates non-GAAP underlying pretax and after-tax income, underlying effective tax rate, 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 second quarter and first half ended June
30, 2016, compared to the second quarter and first half ended June 30, 2015. 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). On November 11, 2015, we entered into a purchase agreement to acquire
all of SABMiller’s 58 percent interest in MillerCoors and all trademarks, contracts and other assets primarily related to the
Miller brand portfolio outside of the U.S. and Puerto Rico. Following the closing of the pending acquisition, the Company will own
100 percent of the outstanding equity and voting interests of MillerCoors. Unless otherwise indicated, MillerCoors per-hectoliter
results include contract brewing volume in the denominator of the calculation, as well as the financial impact of these sales in
the numerator.
(3) 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 international 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 is the
only alcohol producer currently recognized for world class sustainability performance through the Dow Jones Sustainability Index.
It was listed on the World Index for the past four years and named global Beverage Sector Leader in 2012 and 2013. For more
information on Molson Coors Brewing Company, visit the company's website, http://molsoncoors.com or http://ourbeerprint.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, our ability to successfully close, finance
and integrate the acquisition of MillerCoors; our ability to achieve expected tax benefits, accretion and cost synergies; 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. 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 U.S.
("U.S. GAAP"), we also present pretax and after-tax "underlying income," "underlying income per diluted share," "underlying
effective tax rate," and "underlying free cash flow," 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 income per diluted share, underlying EBITDA, and underlying effective tax rate as measures of operating performance, as
well as underlying free cash flow in the measure of cash generated from core operations, 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 income per diluted share, underlying EBITDA, and
underlying effective tax rate performance are used by, and are useful to, investors and other users of our financial statements in
evaluating our operating performance, as well as underlying free cash flow in evaluating our generation of cash from core
operations, 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. In
addition to the reasons discussed above, we consider underlying free cash flow an important measure of our ability to generate
cash, grow our business and enhance shareholder value, driven by core operations and after adjusting for non-core items. For
discussion and analysis of our liquidity, see the unaudited condensed consolidated statements of cash flows and the Liquidity and
Capital Resources section of our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our
latest Form 10-K and 10-Q filings with the SEC. We have provided reconciliations of all non-GAAP measures to their nearest U.S.
GAAP measure 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 |
|
Six Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
|
U.S. GAAP: Net income attributable to MCBC from continuing
operations
|
$ |
174.1 |
|
|
$ |
229.3 |
|
|
$ |
333.4 |
|
|
$ |
308.5 |
|
| Per diluted share |
$ |
0.81 |
|
|
$ |
1.23 |
|
|
$ |
1.59 |
|
|
$ |
1.65 |
|
| Add/(less): |
|
|
|
|
|
|
|
| Special items, net(1) |
34.5 |
|
|
33.7 |
|
|
(74.1 |
) |
|
42.3 |
|
| 42% of MillerCoors special items, net of tax(2) |
16.5 |
|
|
— |
|
|
32.0 |
|
|
— |
|
| Unrealized mark-to-market (gains) and losses(3) |
(13.0 |
) |
|
4.2 |
|
|
(15.3 |
) |
|
4.1 |
|
| Acquisition and integration related costs(4) |
64.7 |
|
|
— |
|
|
118.4 |
|
|
— |
|
| Tax effects on special and non-GAAP items(5) |
(37.3 |
) |
|
(3.4 |
) |
|
(44.6 |
) |
|
(5.0 |
) |
|
Non-GAAP: Underlying after-tax income
|
$ |
239.5 |
|
|
$ |
263.8 |
|
|
$ |
349.8 |
|
|
$ |
349.9 |
|
| Per diluted share |
$ |
1.11 |
|
|
$ |
1.41 |
|
|
$ |
1.66 |
|
|
$ |
1.87 |
|
| (1) |
|
See Part I—Item 1. Financial Statements, Note 6, "Special Items" of the Form 10-Q for
detailed discussion of special items. Special items for the three and six months ended June 30, 2016, include accelerated
depreciation expense of $3.3 million and $6.3 million, respectively, related to the closures of our Vancouver brewery in Canada
and Burton South brewery in the U.K. Special items for the three and six months ended June 30, 2015, includes accelerated
depreciation expense of $16.6 million and $28.4 million, respectively, related to the closure of the Alton brewery in the U.K,
the closure of a bottling line within the Toronto brewery, and the restructuring of our business in China. These accelerated
depreciation charges are included in our adjustments to arrive at underlying EBITDA in the table below. |
|
|
|
| (2) |
|
MillerCoors special items for three and six months ended June 30, 2016, include our
proportionate share of accelerated depreciation expense of $13.8 million and $28.9 million, respectively, related to the
closure of our Eden brewery which is included in our adjustments to arrive at underlying EBITDA related to our investment in
MillerCoors in the table below. The tax effect related to our share of MillerCoors special items in 2016 was immaterial. The
flow through MCBC tax impacts of MillerCoors special items, if applicable, are presented within the tax effect on special and
non-GAAP items in the above reconciliation of underlying income table. |
|
|
|
| (3) |
|
The unrealized changes in fair value on our commodity swaps, which are economic
hedges, are recorded as cost of goods sold within our Corporate business activities. As the exposure we are managing is
realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to
realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. The amounts included
for the three and six months ended June 30, 2016, and June 30, 2015, include the unrealized mark-to-market on these commodity
swaps. |
|
|
|
| (4) |
|
In connection with the pending Acquisition, for the three and six months ended June
30, 2016, we have recorded $19.6 million and $34.5 million, respectively, of transaction related costs recorded within
marketing, general & administrative expenses, $31.8 million and $50.2 million, respectively, of derivative losses and
financing costs related to our bridge loan within other income (expense), and $13.3 million and $33.7 million, respectively, of
financing costs related to our term loan, losses on our swaptions, and interest income related to our fixed rate deposit and
money market accounts within interest income (expense) net. These interest income (expense) items are included in our
adjustments to arrive at underlying EBITDA in the table below. |
|
|
|
| (5) |
|
The effect of taxes on the adjustments used to arrive at underlying income, a
non-GAAP measure, is calculated based on applying the estimated underlying full-year effective tax rate to actual underlying
earnings, excluding special and non-core items. The effect of taxes on special and non-core items is calculated based on the
statutory tax rate applicable to the item being adjusted for in the jurisdiction from which each adjustment arises.
Additionally, included in this line item is any applicable flow through MCBC tax impacts of MillerCoors special items. |
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 2: Underlying Pretax Income (Loss)(1)
($ In millions)
(Unaudited)
|
| |
|
|
|
|
|
|
Business |
|
Total |
|
|
Canada |
|
U.S. |
|
Europe |
|
MCI |
|
Corporate |
|
Consolidated |
|
U.S. GAAP: 2016 Q2 income (loss) from continuing operations
before income taxes
|
|
$ |
88.5 |
|
|
$ |
191.9 |
|
|
$ |
59.0 |
|
|
$ |
(33.4 |
) |
|
$ |
(109.1 |
) |
|
$ |
196.9 |
|
| Add/(less): |
|
|
|
|
|
|
|
|
|
|
|
|
| Special items, net |
|
1.4 |
|
|
— |
|
|
2.3 |
|
|
30.8 |
|
|
— |
|
|
34.5 |
|
| 42% of MillerCoors special items, net of tax |
|
— |
|
|
16.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
16.5 |
|
| Unrealized mark-to-market (gains) and losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(13.0 |
) |
|
(13.0 |
) |
| Acquisition and integration related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
64.7 |
|
|
64.7 |
|
|
Non-GAAP: 2016 Q2 underlying pretax income (loss)
|
|
$ |
89.9 |
|
|
$ |
208.4 |
|
|
$ |
61.3 |
|
|
$ |
(2.6 |
) |
|
$ |
(57.4 |
) |
|
$ |
299.6 |
|
| Percent change 2016 Q2 vs. 2015 Q2 underlying pretax income
(loss) |
|
(21.3 |
)% |
|
1.4 |
% |
|
(10.0 |
)% |
|
55.2 |
% |
|
(5.9 |
)% |
|
(8.6 |
)% |
|
U.S. GAAP: 2015 Q2 income (loss) from continuing operations
before income taxes
|
|
$ |
106.1 |
|
|
$ |
205.5 |
|
|
$ |
49.0 |
|
|
$ |
(12.2 |
) |
|
$ |
(58.4 |
) |
|
$ |
290.0 |
|
| Add/(less): |
|
|
|
|
|
|
|
|
|
|
|
|
| Special items, net |
|
8.2 |
|
|
— |
|
|
19.1 |
|
|
6.4 |
|
|
— |
|
|
33.7 |
|
| Unrealized mark-to-market (gains) and losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4.2 |
|
|
4.2 |
|
|
Non-GAAP: 2015 Q2 underlying pretax income (loss)
|
|
$ |
114.3 |
|
|
$ |
205.5 |
|
|
$ |
68.1 |
|
|
$ |
(5.8 |
) |
|
$ |
(54.2 |
) |
|
$ |
327.9 |
|
(1) See notes in Table 1 for further detail of adjusting items.
| |
|
|
|
|
|
|
Business |
|
Total |
|
|
Canada |
|
U.S. |
|
Europe |
|
MCI |
|
Corporate |
|
Consolidated |
|
U.S. GAAP: 2016 Q2 YTD income (loss) from continuing operations
before income taxes
|
|
$ |
235.1 |
|
|
$ |
334.3 |
|
|
$ |
57.8 |
|
|
$ |
(35.7 |
) |
|
$ |
(213.9 |
) |
|
$ |
377.6 |
|
| Add/(less): |
|
|
|
|
|
|
|
|
|
|
|
|
| Special items, net |
|
(107.9 |
) |
|
— |
|
|
3.0 |
|
|
30.8 |
|
|
— |
|
|
(74.1 |
) |
| 42% of MillerCoors special items, net of tax |
|
— |
|
|
32.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
32.0 |
|
| Unrealized mark-to-market (gains) and losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(15.3 |
) |
|
(15.3 |
) |
| Acquisition and integration related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
118.4 |
|
|
118.4 |
|
|
Non-GAAP: 2016 Q2 YTD underlying pretax income (loss)
|
|
$ |
127.2 |
|
|
$ |
366.3 |
|
|
$ |
60.8 |
|
|
$ |
(4.9 |
) |
|
$ |
(110.8 |
) |
|
$ |
438.6 |
|
| Percent change 2016 Q2 YTD vs. 2015 Q2 YTD underlying pretax income
(loss) |
|
(12.4 |
)% |
|
9.4 |
% |
|
(16.3 |
)% |
|
56.3 |
% |
|
0.6 |
% |
|
2.0 |
% |
|
U.S. GAAP: 2015 Q2 YTD income (loss) from continuing operations
before income taxes
|
|
$ |
137.0 |
|
|
$ |
334.8 |
|
|
$ |
44.9 |
|
|
$ |
(17.6 |
) |
|
$ |
(115.6 |
) |
|
$ |
383.5 |
|
| Add/(less): |
|
|
|
|
|
|
|
|
|
|
|
|
| Special items, net |
|
8.2 |
|
|
— |
|
|
27.7 |
|
|
6.4 |
|
|
— |
|
|
42.3 |
|
| Unrealized mark-to-market (gains) and losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4.1 |
|
|
4.1 |
|
|
Non-GAAP: 2015 Q2 YTD underlying pretax income (loss)
|
|
$ |
145.2 |
|
|
$ |
334.8 |
|
|
$ |
72.6 |
|
|
$ |
(11.2 |
) |
|
$ |
(111.5 |
) |
|
$ |
429.9 |
|
(1) See notes in Table 1 for further detail of adjusting items.
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 3: Underlying EBITDA
($ In millions)
(Unaudited)
|
| |
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
% change |
|
June 30, 2016 |
|
June 30, 2015 |
|
% change |
|
U.S. GAAP: Net income attributable to MCBC from continuing
operations
|
$ |
174.1 |
|
|
$ |
229.3 |
|
|
(24.1 |
)% |
|
$ |
333.4 |
|
|
$ |
308.5 |
|
|
8.1 |
% |
| Add: Net income (loss) attributable to noncontrolling interests |
1.6 |
|
|
2.3 |
|
|
(30.4 |
)% |
|
2.4 |
|
|
3.8 |
|
|
(36.8 |
)% |
|
U.S. GAAP: Net income (loss) from continuing operations
|
$ |
175.7 |
|
|
231.6 |
|
|
(24.1 |
)% |
|
$ |
335.8 |
|
|
$ |
312.3 |
|
|
7.5 |
% |
| Add: Interest expense (income), net |
40.5 |
|
|
30.6 |
|
|
32.4 |
% |
|
87.8 |
|
|
59.8 |
|
|
46.8 |
% |
| Add: Income tax expense (benefit) |
21.2 |
|
|
58.4 |
|
|
(63.7 |
)% |
|
41.8 |
|
|
71.2 |
|
|
(41.3 |
)% |
| Add: Depreciation and amortization |
70.2 |
|
|
81.4 |
|
|
(13.8 |
)% |
|
137.7 |
|
|
158.9 |
|
|
(13.3 |
)% |
| Adjustments included in underlying income(1) |
86.2 |
|
|
37.9 |
|
|
127.4 |
% |
|
29.0 |
|
|
46.4 |
|
|
(37.5 |
)% |
| Adjustments to arrive at underlying EBITDA(2) |
(16.6 |
) |
|
(16.6 |
) |
|
— |
% |
|
(40.0 |
) |
|
(28.4 |
) |
|
40.8 |
% |
| Adjustments to arrive at underlying EBITDA related to our investment in
MillerCoors(3) |
51.5 |
|
|
32.0 |
|
|
60.9 |
% |
|
100.0 |
|
|
63.7 |
|
|
57.0 |
% |
|
Non-GAAP: Underlying EBITDA
|
$ |
428.7 |
|
|
$ |
455.3 |
|
|
(5.8 |
)% |
|
$ |
692.1 |
|
|
$ |
683.9 |
|
|
1.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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)
|
| |
|
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, 2016 |
|
June 30, 2015 |
|
U.S. GAAP:
|
|
Net Cash Provided by Operating Activities |
$ |
264.4 |
|
|
$ |
198.1 |
|
| Less: |
|
Additions to properties(1) |
(121.6 |
) |
|
(139.8 |
) |
| Less: |
|
Investment in MillerCoors(1) |
(810.6 |
) |
|
(758.1 |
) |
| Add: |
|
Return of capital from MillerCoors(1) |
731.1 |
|
|
692.9 |
|
| Add/(Less): |
|
Cash impact of special items(2) |
4.0 |
|
|
17.5 |
|
| Add: |
|
Costs related to acquisition of businesses(3) |
90.6 |
|
|
— |
|
| Add: |
|
Discretionary pension contribution(4) |
— |
|
|
227.1 |
|
| Add: |
|
MillerCoors investments in businesses(5) |
— |
|
|
3.4 |
|
| Add: |
|
MillerCoors cash impact of special items(5) |
1.0 |
|
|
— |
|
|
Non-GAAP:
|
|
Underlying Free Cash Flow |
$ |
158.9 |
|
|
$ |
241.1 |
|
| |
|
|
|
|
|
|
|
|
|
| (1) |
|
Included in net cash used in investing activities. |
|
|
|
| (2) |
|
Included in net cash provided by operating activities and primarily reflects
termination fees received and paid, as well as costs paid for brewery closures and restructuring activities. Also, includes
additions to properties within net cash used in investing activities related to the cash paid to build a new efficient and
flexible brewery in British Columbia, following the sale of our Vancouver brewery in the first quarter of 2016. The proceeds of
$140.8 million received from the sale of the Vancouver brewery are being used to fund the construction of the new brewery in
British Columbia. |
|
|
|
| (3) |
|
Included in net cash provided by operating activities and reflects costs paid
associated with the pending Acquisition of 58% of MillerCoors, LLC, and the Miller global brand portfolio, including $38.8
million of cash paid for income taxes. |
|
|
|
| (4) |
|
Discretionary cash contribution of $227.1 million made to our U.K. pension plan in
2015 included in net cash provided by operating activities. |
|
|
|
| (5) |
|
Amounts represent our proportionate 42% share of the cash flow impacts. |
|
|
|
|
|
|
|
|
|
MillerCoors LLC
Table 5: Underlying Net Income Attributable to MillerCoors
($ In millions)
(Unaudited)
|
| |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
|
U.S. GAAP: Net income attributable to MillerCoors
|
|
$ |
429.5 |
|
|
$ |
487.2 |
|
|
$ |
764.8 |
|
|
$ |
791.8 |
| Add: Special items, net of tax |
|
39.3 |
|
|
— |
|
|
76.1 |
|
|
— |
|
Non-GAAP: Underlying net income attributable to
MillerCoors
|
|
$ |
468.8 |
|
|
$ |
487.2 |
|
|
$ |
840.9 |
|
|
$ |
791.8 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 6: Underlying Equity Income in MillerCoors
($ In millions)
(Unaudited)
|
| |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
|
U.S. GAAP: Net Income Attributable to MillerCoors
|
|
$ |
429.5 |
|
|
$ |
487.2 |
|
|
$ |
764.8 |
|
|
$ |
791.8 |
|
| Multiply: MCBC economic interest |
|
42 |
% |
|
42 |
% |
|
42 |
% |
|
42 |
% |
| MCBC proportionate share of MillerCoors net income |
|
$ |
180.4 |
|
|
$ |
204.6 |
|
|
$ |
321.2 |
|
|
$ |
332.6 |
|
| Add: Amortization of the difference between MCBC contributed cost basis and
proportionate share of the underlying equity in net assets of MillerCoors(1) |
|
1.1 |
|
|
1.3 |
|
|
2.2 |
|
|
2.4 |
|
| Add: Share-based compensation adjustment(2) |
|
(0.7 |
) |
|
(0.4 |
) |
|
(0.2 |
) |
|
(0.2 |
) |
| Add: U.S. import tax benefit(3) |
|
11.1 |
|
|
— |
|
|
11.1 |
|
|
— |
|
|
U.S. GAAP: Equity Income in MillerCoors
|
|
$ |
191.9 |
|
|
$ |
205.5 |
|
|
$ |
334.3 |
|
|
$ |
334.8 |
|
| Add: MCBC proportionate share of MillerCoors special items, net of
tax |
|
16.5 |
|
|
— |
|
|
32.0 |
|
|
— |
|
|
Non-GAAP: Underlying Equity Income in MillerCoors
|
|
$ |
208.4 |
|
|
$ |
205.5 |
|
|
$ |
366.3 |
|
|
$ |
334.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 $654.8 million as of June 30, 2016. 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 employees employed by MillerCoors, as well as to add back all
share-based compensation impacts related to pre-existing MCBC equity awards held by former MCBC employees who transferred to
MillerCoors. |
|
|
|
| (3) |
|
Represents an $11.1 million benefit associated with an anticipated refund to Coors
Brewing Company ("CBC"), a wholly-owned subsidiary of Molson Coors, of U.S. federal excise tax paid on products imported by CBC
based on qualifying volumes exported by CBC from the U.S. Due to administrative restrictions outlined within the legislation
enacted in 2016, the anticipated refund is not expected to be received until 2018. Accordingly, the anticipated refund amount
represents a non-current receivable which has been recorded within other non-current assets on the unaudited condensed
consolidated balance sheet as of June 30, 2016. |
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 7: Constant Currency Results: Constant Currency
Reporting Net Sales, U.S. GAAP Pretax Income and Underlying Pretax Income
(Unaudited)
U.S. GAAP: Net Sales (In millions)
|
| |
|
|
Three Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
Reported %
Increase
(Decrease)
|
|
Foreign
Exchange
Impact ($)
|
|
Constant Currency
% Increase
(Decrease)
|
| Canada |
$ |
425.9 |
|
|
$ |
444.9 |
|
|
(4.3 |
)% |
|
$ |
(20.5 |
) |
|
0.3 |
% |
| Europe |
522.1 |
|
|
524.8 |
|
|
(0.5 |
)% |
|
(18.6 |
) |
|
3.0 |
% |
| MCI |
39.2 |
|
|
37.2 |
|
|
5.4 |
% |
|
0.4 |
|
|
4.3 |
% |
| Corporate |
0.2 |
|
|
0.1 |
|
|
100.0 |
% |
|
— |
|
|
100.0 |
% |
| Eliminations(1) |
(1.2 |
) |
|
(1.3 |
) |
|
7.7 |
% |
|
— |
|
|
7.7 |
% |
| MCBC Consolidated Total |
$ |
986.2 |
|
|
$ |
1,005.7 |
|
|
(1.9 |
)% |
|
$ |
(38.7 |
) |
|
1.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Reflects intercompany sales from Europe to MCI, and the offset is included within MCI
cost of goods sold. These amounts are eliminated in the consolidated totals. |
|
|
|
|
|
|
U.S. GAAP: Pretax Income (In millions)
|
| |
|
|
Three Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
Reported %
Increase
(Decrease)
|
|
Foreign
Exchange
Impact ($)
|
|
Constant Currency
% Increase
(Decrease)
|
| MillerCoors (42% portion) |
$ |
191.9 |
|
|
$ |
205.5 |
|
|
(6.6 |
)% |
|
$ |
— |
|
|
(6.6 |
)% |
| Canada |
88.5 |
|
|
106.1 |
|
|
(16.6 |
)% |
|
(1.9 |
) |
|
(14.8 |
)% |
| Europe |
59.0 |
|
|
49.0 |
|
|
20.4 |
% |
|
(2.1 |
) |
|
24.7 |
% |
| MCI |
(33.4 |
) |
|
(12.2 |
) |
|
(173.8 |
)% |
|
1.4
|
|
|
(185.2
|
)% |
| Corporate |
(109.1 |
) |
|
(58.4 |
) |
|
(86.8 |
)% |
|
(12.8 |
) |
|
(64.9 |
)% |
| MCBC Consolidated Total |
$ |
196.9 |
|
|
$ |
290.0 |
|
|
(32.1 |
)% |
|
$ |
(15.4
|
) |
|
(26.8
|
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
| |
|
|
Three Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
Reported %
Increase
(Decrease)
|
|
Foreign
Exchange
Impact ($)
|
|
Constant Currency
% Increase
(Decrease)
|
| MillerCoors (42% portion) |
$ |
208.4 |
|
|
$ |
205.5 |
|
|
1.4 |
% |
|
$ |
— |
|
|
1.4 |
% |
| Canada |
89.9 |
|
|
114.3 |
|
|
(21.3 |
)% |
|
(1.9 |
) |
|
(19.7 |
)% |
| Europe |
61.3 |
|
|
68.1 |
|
|
(10.0 |
)% |
|
(2.2 |
) |
|
(6.8 |
)% |
| MCI |
(2.6 |
) |
|
(5.8 |
) |
|
55.2 |
% |
|
(0.3 |
) |
|
60.3 |
% |
| Corporate |
(57.4 |
) |
|
(54.2 |
) |
|
(5.9 |
)% |
|
(1.2 |
) |
|
(3.7 |
)% |
| MCBC Consolidated Total |
$ |
299.6 |
|
|
$ |
327.9 |
|
|
(8.6 |
)% |
|
$ |
(5.6 |
) |
|
(6.9 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP: Net Sales (In millions)
|
| |
|
|
|
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
Reported %
Increase
(Decrease)
|
|
Foreign
Exchange
Impact ($)
|
|
Constant Currency
% Increase
(Decrease)
|
| Canada |
|
$ |
693.9 |
|
|
$ |
758.4 |
|
|
(8.5 |
)% |
|
$ |
(48.3 |
) |
|
(2.1 |
)% |
| Europe |
|
880.8 |
|
|
882.7 |
|
|
(0.2 |
)% |
|
(33.7 |
) |
|
3.6 |
% |
| MCI |
|
70.2 |
|
|
66.3 |
|
|
5.9 |
% |
|
(0.2 |
) |
|
6.2 |
% |
| Corporate |
|
0.6 |
|
|
0.5 |
|
|
20.0 |
% |
|
— |
|
|
20.0 |
% |
| Eliminations(1) |
|
(2.1 |
) |
|
(2.2 |
) |
|
4.5 |
% |
|
— |
|
|
4.5 |
% |
| MCBC Consolidated Total |
|
$ |
1,643.4 |
|
|
$ |
1,705.7 |
|
|
(3.7 |
)% |
|
$ |
(82.2 |
) |
|
1.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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)
|
| |
|
|
Six Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
Reported %
Increase
(Decrease)
|
|
Foreign
Exchange
Impact ($)
|
|
Constant Currency
% Increase
(Decrease)
|
| MillerCoors (42% portion) |
$ |
334.3 |
|
|
$ |
334.8 |
|
|
(0.1 |
)% |
|
$ |
— |
|
|
(0.1 |
)% |
| Canada |
235.1 |
|
|
137.0 |
|
|
71.6 |
% |
|
(8.4 |
) |
|
77.7 |
% |
| Europe |
57.8 |
|
|
44.9 |
|
|
28.7 |
% |
|
(2.5 |
) |
|
34.3 |
% |
| MCI |
(35.7 |
) |
|
(17.6 |
) |
|
(102.8 |
)% |
|
1.2
|
|
|
(109.7
|
)% |
| Corporate |
(213.9 |
) |
|
(115.6 |
) |
|
(85.0 |
)% |
|
(11.1 |
) |
|
(75.4 |
)% |
| MCBC Consolidated Total |
$ |
377.6 |
|
|
$ |
383.5 |
|
|
(1.5 |
)% |
|
$ |
(20.8
|
) |
|
3.9
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
| |
|
|
Six Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
Reported %
Increase
(Decrease)
|
|
Foreign
Exchange
Impact ($)
|
|
Constant Currency
% Increase
(Decrease)
|
| MillerCoors (42% portion) |
$ |
366.3 |
|
|
$ |
334.8 |
|
|
9.4 |
% |
|
$ |
— |
|
|
9.4 |
% |
| Canada |
127.2 |
|
|
145.2 |
|
|
(12.4 |
)% |
|
(3.3 |
) |
|
(10.1 |
)% |
| Europe |
60.8 |
|
|
72.6 |
|
|
(16.3 |
)% |
|
(2.6 |
) |
|
(12.7 |
)% |
| MCI |
(4.9 |
) |
|
(11.2 |
) |
|
56.3 |
% |
|
(0.5 |
) |
|
60.7 |
% |
| Corporate |
(110.8 |
) |
|
(111.5 |
) |
|
0.6 |
% |
|
0.5 |
|
|
0.2 |
% |
| MCBC Consolidated Total |
$ |
438.6 |
|
|
$ |
429.9 |
|
|
2.0 |
% |
|
$ |
(5.9 |
) |
|
3.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 step 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 |
|
|
|
|
June 30, 2016 |
|
June 30, 2015 |
|
% Change |
| Financial Volume |
|
8.579 |
|
|
8.623 |
|
|
(0.5 |
)% |
| Royalty Volume(1) |
|
0.521 |
|
|
0.485 |
|
|
7.4 |
% |
| Owned Volume |
|
9.100 |
|
|
9.108 |
|
|
(0.1 |
)% |
| Proportionate Share of Equity Investment STRs(2) |
|
7.021 |
|
|
7.145 |
|
|
(1.7 |
)% |
| Total Worldwide Beer Volume |
|
16.121 |
|
|
16.253 |
|
|
(0.8 |
)% |
| |
|
|
|
|
|
|
|
|
|
| (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 |
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| Volume in hectoliters |
|
8.579 |
|
|
8.623 |
|
|
14.328 |
|
|
14.255 |
|
| Sales |
|
$ |
1,407.0 |
|
|
$ |
1,433.0 |
|
|
$ |
2,357.8 |
|
|
$ |
2,436.2 |
|
| Excise taxes |
|
(420.8 |
) |
|
(427.3 |
) |
|
(714.4 |
) |
|
(730.5 |
) |
| Net sales |
|
986.2 |
|
|
1,005.7 |
|
|
1,643.4 |
|
|
1,705.7 |
|
| Cost of goods sold |
|
(562.2 |
) |
|
(579.9 |
) |
|
(976.2 |
) |
|
(1,034.7 |
) |
| Gross profit |
|
424.0 |
|
|
425.8 |
|
|
667.2 |
|
|
671.0 |
|
| Marketing, general and administrative expenses |
|
(313.6 |
) |
|
(283.3 |
) |
|
(564.5 |
) |
|
(523.9 |
) |
| Special items, net |
|
(34.5 |
) |
|
(33.7 |
) |
|
74.1 |
|
|
(42.3 |
) |
| Equity income in MillerCoors |
|
191.9 |
|
|
205.5 |
|
|
334.3 |
|
|
334.8 |
|
| Operating income (loss) |
|
267.8 |
|
|
314.3 |
|
|
511.1 |
|
|
439.6 |
|
| Interest income (expense), net |
|
(40.5 |
) |
|
(30.6 |
) |
|
(87.8 |
) |
|
(59.8 |
) |
| Other income (expense), net |
|
(30.4 |
) |
|
6.3 |
|
|
(45.7 |
) |
|
3.7 |
|
| Income (loss) from continuing operations before income taxes |
|
196.9 |
|
|
290.0 |
|
|
377.6 |
|
|
383.5 |
|
| Income tax benefit (expense) |
|
(21.2 |
) |
|
(58.4 |
) |
|
(41.8 |
) |
|
(71.2 |
) |
| Net income (loss) from continuing operations |
|
175.7 |
|
|
231.6 |
|
|
335.8 |
|
|
312.3 |
|
| Income (loss) from discontinued operations, net of tax |
|
(1.8 |
) |
|
(0.3 |
) |
|
(2.3 |
) |
|
1.6 |
|
| Net income (loss) including noncontrolling interests |
|
173.9 |
|
|
231.3 |
|
|
333.5 |
|
|
313.9 |
|
| Net (income) loss attributable to noncontrolling interests |
|
(1.6 |
) |
|
(2.3 |
) |
|
(2.4 |
) |
|
(3.8 |
) |
| Net income (loss) attributable to MCBC |
|
$ |
172.3 |
|
|
$ |
229.0 |
|
|
$ |
331.1 |
|
|
$ |
310.1 |
|
|
|
|
|
|
|
|
|
|
| Basic net income (loss) attributable to MCBC per share: |
|
|
|
|
|
|
|
|
| From continuing operations |
|
$ |
0.81 |
|
|
$ |
1.23 |
|
|
$ |
1.59 |
|
|
$ |
1.66 |
|
| From discontinued operations |
|
(0.01 |
) |
|
— |
|
|
(0.01 |
) |
|
0.01 |
|
| Basic net income (loss) attributable to MCBC per share |
|
$ |
0.80 |
|
|
$ |
1.23 |
|
|
$ |
1.58 |
|
|
$ |
1.67 |
|
|
|
|
|
|
|
|
|
|
| Diluted net income (loss) attributable to MCBC per share: |
|
|
|
|
|
|
|
|
| From continuing operations |
|
$ |
0.81 |
|
|
$ |
1.23 |
|
|
$ |
1.59 |
|
|
$ |
1.65 |
|
| From discontinued operations |
|
(0.01 |
) |
|
— |
|
|
(0.01 |
) |
|
0.01 |
|
| Diluted net income (loss) attributable to MCBC per share |
|
$ |
0.80 |
|
|
$ |
1.23 |
|
|
$ |
1.58 |
|
|
$ |
1.66 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares - basic |
|
214.7 |
|
|
185.7 |
|
|
209.2 |
|
|
185.8 |
|
| Weighted average shares - diluted |
|
215.7 |
|
|
186.5 |
|
|
210.2 |
|
|
186.7 |
|
|
|
|
|
|
|
|
|
|
| Dividends per share |
|
$ |
0.41 |
|
|
$ |
0.41 |
|
|
$ |
0.82 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
|
| Amounts attributable to MCBC |
|
|
|
|
|
|
|
|
| Net income (loss) from continuing operations |
|
$ |
174.1 |
|
|
$ |
229.3 |
|
|
$ |
333.4 |
|
|
$ |
308.5 |
|
| Income (loss) from discontinued operations, net of tax |
|
(1.8 |
) |
|
(0.3 |
) |
|
(2.3 |
) |
|
1.6 |
|
| Net income (loss) attributable to MCBC |
|
$ |
172.3 |
|
|
$ |
229.0 |
|
|
$ |
331.1 |
|
|
$ |
310.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 10: Canada Results of Operations
($ In millions)
(Unaudited)
|
| |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| Volume in hectoliters |
|
2.133 |
|
|
2.150 |
|
|
3.591 |
|
|
3.680 |
|
| Sales |
|
$ |
560.0 |
|
|
$ |
584.3 |
|
|
$ |
913.8 |
|
|
$ |
993.6 |
|
| Excise taxes |
|
(134.1 |
) |
|
(139.4 |
) |
|
(219.9 |
) |
|
(235.2 |
) |
| Net sales |
|
425.9 |
|
|
444.9 |
|
|
693.9 |
|
|
758.4 |
|
| Cost of goods sold |
|
(239.2 |
) |
|
(238.1 |
) |
|
(396.4 |
) |
|
(437.4 |
) |
| Gross profit |
|
186.7 |
|
|
206.8 |
|
|
297.5 |
|
|
321.0 |
|
| Marketing, general and administrative expenses |
|
(99.3 |
) |
|
(95.4 |
) |
|
(176.0 |
) |
|
(180.1 |
) |
| Special items, net |
|
(1.4 |
) |
|
(8.2 |
) |
|
107.9 |
|
|
(8.2 |
) |
| Operating income (loss) |
|
86.0 |
|
|
103.2 |
|
|
229.4 |
|
|
132.7 |
|
| Other income (expense), net |
|
2.5 |
|
|
2.9 |
|
|
5.7 |
|
|
4.3 |
|
| Income (loss) from continuing operations before income taxes |
|
$ |
88.5 |
|
|
$ |
106.1 |
|
|
$ |
235.1 |
|
|
$ |
137.0 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 11: Europe Results of Operations
($ In millions)
(Unaudited)
|
| |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| Volume in hectoliters(1) |
|
6.093 |
|
|
5.995 |
|
|
10.089 |
|
|
9.793 |
|
| Sales(1) |
|
$ |
800.5 |
|
|
$ |
801.4 |
|
|
$ |
1,361.4 |
|
|
$ |
1,361.1 |
|
| Excise taxes |
|
(278.4 |
) |
|
(276.6 |
) |
|
(480.6 |
) |
|
(478.4 |
) |
| Net sales(1) |
|
522.1 |
|
|
524.8 |
|
|
880.8 |
|
|
882.7 |
|
| Cost of goods sold |
|
(310.9 |
) |
|
(310.9 |
) |
|
(550.8 |
) |
|
(547.8 |
) |
| Gross profit |
|
211.2 |
|
|
213.9 |
|
|
330.0 |
|
|
334.9 |
|
| Marketing, general and administrative expenses |
|
(151.1 |
) |
|
(146.2 |
) |
|
(270.4 |
) |
|
(263.4 |
) |
| Special items, net |
|
(2.3 |
) |
|
(19.1 |
) |
|
(3.0 |
) |
|
(27.7 |
) |
| Operating income (loss) |
|
57.8 |
|
|
48.6 |
|
|
56.6 |
|
|
43.8 |
|
| Interest income, net |
|
0.9 |
|
|
1.0 |
|
|
1.7 |
|
|
2.0 |
|
| Other income (expense), net |
|
0.3 |
|
|
(0.6 |
) |
|
(0.5 |
) |
|
(0.9 |
) |
| Income (loss) from continuing operations before income taxes |
|
$ |
59.0 |
|
|
$ |
49.0 |
|
|
$ |
57.8 |
|
|
$ |
44.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Gross segment sales include intercompany sales to MCI consisting of $1.2 million of
net sales and 0.013 million hectoliters and $2.1 million of net sales and 0.023 million hectoliters for the three and six
months ended June 30, 2016, respectively. Gross segment sales include intercompany sales to MCI consisting of $1.3 million of
net sales and 0.017 million hectoliters and $2.2 million of net sales and 0.027 million hectoliters for the three and six
months ended June 30, 2015, respectively. The offset is included within MCI cost of goods sold. These amounts are eliminated in
the consolidated totals. |
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 12: Molson Coors International Results of Operations
($ In millions)
(Unaudited)
|
| |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| Volume in hectoliters(1) |
|
0.366 |
|
|
0.495 |
|
|
0.671 |
|
|
0.809 |
|
| Sales |
|
$ |
47.5 |
|
|
$ |
48.5 |
|
|
$ |
84.1 |
|
|
$ |
83.2 |
|
| Excise taxes |
|
(8.3 |
) |
|
(11.3 |
) |
|
(13.9 |
) |
|
(16.9 |
) |
| Net sales |
|
39.2 |
|
|
37.2 |
|
|
70.2 |
|
|
66.3 |
|
| Cost of goods sold(2) |
|
(25.7 |
) |
|
(27.7 |
) |
|
(46.3 |
) |
|
(46.9 |
) |
| Gross profit |
|
13.5 |
|
|
9.5 |
|
|
23.9 |
|
|
19.4 |
|
| Marketing, general and administrative expenses |
|
(16.1 |
) |
|
(15.6 |
) |
|
(28.8 |
) |
|
(30.2 |
) |
| Special items, net |
|
(30.8 |
) |
|
(6.4 |
) |
|
(30.8 |
) |
|
(6.4 |
) |
| Operating income (loss) |
|
(33.4 |
) |
|
(12.5 |
) |
|
(35.7 |
) |
|
(17.2 |
) |
| Other income (expense), net |
|
— |
|
|
0.3 |
|
|
— |
|
|
(0.4 |
) |
| Income (loss) from continuing operations before income taxes |
|
$ |
(33.4 |
) |
|
$ |
(12.2 |
) |
|
$ |
(35.7 |
) |
|
$ |
(17.6 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Excludes royalty volume of 0.470 million hectoliters and 0.771 million hectoliters
for the three and six months ended June 30, 2016, and excludes royalty volume of 0.427 million and 0.723 million hectoliters
for the three and six months ended June 30, 2015, respectively. |
|
|
|
| (2) |
|
Reflects gross segment amounts and for the three months ended June 30, 2016, and June
30, 2015, includes intercompany cost of goods sold from Europe of $1.2 million and $1.3 million, respectively. The six months
ended June 30, 2016, and June 30, 2015, includes intercompany cost of goods sold from Europe of $2.1 million and $2.2 million,
respectively. The offset is included within Europe net sales. These amounts are eliminated in the consolidated totals. |
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 13: Corporate Results of Operations
($ In millions)
(Unaudited)
|
| |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| Volume in hectoliters |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Sales |
|
$ |
0.2 |
|
|
$ |
0.1 |
|
|
$ |
0.6 |
|
|
$ |
0.5 |
|
| Excise taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Net sales |
|
0.2 |
|
|
0.1 |
|
|
0.6 |
|
|
0.5 |
|
| Cost of goods sold |
|
12.4 |
|
|
(4.5 |
) |
|
15.2 |
|
|
(4.8 |
) |
| Gross profit |
|
12.6 |
|
|
(4.4 |
) |
|
15.8 |
|
|
(4.3 |
) |
| Marketing, general and administrative expenses |
|
(47.1 |
) |
|
(26.1 |
) |
|
(89.3 |
) |
|
(50.2 |
) |
| Special items, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Operating income (loss) |
|
(34.5 |
) |
|
(30.5 |
) |
|
(73.5 |
) |
|
(54.5 |
) |
| Interest expense, net |
|
(41.4 |
) |
|
(31.6 |
) |
|
(89.5 |
) |
|
(61.8 |
) |
| Other income (expense), net |
|
(33.2 |
) |
|
3.7 |
|
|
(50.9 |
) |
|
0.7 |
|
| Income (loss) from continuing operations before income taxes |
|
$ |
(109.1 |
) |
|
$ |
(58.4 |
) |
|
$ |
(213.9 |
) |
|
$ |
(115.6 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MillerCoors LLC (1)
Table 14: MillerCoors Results of Operations
($ In millions)
(Unaudited)
|
| |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| Volume in hectoliters(2) |
|
19.195 |
|
|
20.002 |
|
|
35.456 |
|
|
36.103 |
|
| Sales |
|
$ |
2,426.3 |
|
|
$ |
2,514.3 |
|
|
$ |
4,495.6 |
|
|
$ |
4,540.1 |
|
| Excise taxes |
|
(299.6 |
) |
|
(311.6 |
) |
|
(552.8 |
) |
|
(562.8 |
) |
| Net sales |
|
2,126.7 |
|
|
2,202.7 |
|
|
3,942.8 |
|
|
3,977.3 |
|
| Cost of goods sold |
|
(1,174.5 |
) |
|
(1,240.5 |
) |
|
(2,207.5 |
) |
|
(2,316.7 |
) |
| Gross profit |
|
952.2 |
|
|
962.2 |
|
|
1,735.3 |
|
|
1,660.6 |
|
| Marketing, general and administrative expenses |
|
(477.1 |
) |
|
(468.8 |
) |
|
(886.8 |
) |
|
(857.9 |
) |
| Special items, net |
|
(39.4 |
) |
|
— |
|
|
(76.3 |
) |
|
— |
|
|
Operating income
|
|
435.7 |
|
|
493.4 |
|
|
772.2 |
|
|
802.7 |
|
| Interest income (expense), net |
|
(0.4 |
) |
|
(0.4 |
) |
|
(0.9 |
) |
|
(0.7 |
) |
| Other income (expense), net |
|
1.0 |
|
|
3.1 |
|
|
2.6 |
|
|
4.4 |
|
| Income before income taxes |
|
436.3 |
|
|
496.1 |
|
|
773.9 |
|
|
806.4 |
|
| Income tax expense |
|
(2.5 |
) |
|
(1.6 |
) |
|
(2.0 |
) |
|
(2.7 |
) |
| Net income |
|
433.8 |
|
|
494.5 |
|
|
771.9 |
|
|
803.7 |
|
| Net (income) loss attributable to noncontrolling interests |
|
(4.3 |
) |
|
(7.3 |
) |
|
(7.1 |
) |
|
(11.9 |
) |
| Net income attributable to MillerCoors |
|
$ |
429.5 |
|
|
$ |
487.2 |
|
|
$ |
764.8 |
|
|
$ |
791.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
June 30, 2016 |
|
December 31, 2015 |
| Assets |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
2,990.3 |
|
|
$ |
430.9 |
|
| Accounts receivable, net |
|
563.1 |
|
|
424.7 |
|
| Other receivables, net |
|
155.1 |
|
|
101.2 |
|
| Inventories: |
|
|
|
|
| Finished |
|
188.4 |
|
|
139.1 |
|
| In process |
|
17.3 |
|
|
13.0 |
|
| Raw materials |
|
11.1 |
|
|
18.6 |
|
| Packaging materials |
|
17.4 |
|
|
8.6 |
|
| Total inventories |
|
234.2 |
|
|
179.3 |
|
| Other current assets, net |
|
128.0 |
|
|
122.7 |
|
| Total current assets |
|
4,070.7 |
|
|
1,258.8 |
|
| Properties, net |
|
1,539.2 |
|
|
1,590.8 |
|
| Goodwill |
|
1,943.5 |
|
|
1,983.3 |
|
| Other intangibles, net |
|
4,928.9 |
|
|
4,745.7 |
|
| Investment in MillerCoors |
|
2,557.1 |
|
|
2,441.0 |
|
| Deferred tax assets |
|
28.1 |
|
|
20.2 |
|
| Notes receivable, net |
|
17.4 |
|
|
19.9 |
|
| Other assets |
|
237.3 |
|
|
216.6 |
|
| Total assets |
|
$ |
15,322.2 |
|
|
$ |
12,276.3 |
|
| Liabilities and equity |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts payable and other current liabilities |
|
$ |
1,315.6 |
|
|
$ |
1,184.4 |
|
| Current portion of long-term debt and short-term borrowings |
|
347.0 |
|
|
28.7 |
|
| Discontinued operations |
|
5.0 |
|
|
4.1 |
|
| Total current liabilities |
|
1,667.6 |
|
|
1,217.2 |
|
| Long-term debt |
|
2,680.3 |
|
|
2,908.7 |
|
| Pension and postretirement benefits |
|
209.1 |
|
|
201.9 |
|
| Deferred tax liabilities |
|
802.5 |
|
|
799.8 |
|
| Unrecognized tax benefits |
|
14.3 |
|
|
8.4 |
|
| Other liabilities |
|
63.8 |
|
|
66.9 |
|
| Discontinued operations |
|
12.7 |
|
|
10.3 |
|
| Total liabilities |
|
5,450.3 |
|
|
5,213.2 |
|
| Molson Coors Brewing Company stockholders' equity |
|
|
|
|
| Capital stock: |
|
|
|
|
| Preferred stock, $0.01 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:
203.4 shares and 172.5 shares, respectively) |
|
2.0 |
|
|
1.7 |
|
| Class A exchangeable shares, no par value (issued and outstanding: 2.9 shares and 2.9
shares, respectively) |
|
108.1 |
|
|
108.2 |
|
| Class B exchangeable shares, no par value (issued and outstanding: 15.4 shares and
16.0 shares, respectively) |
|
580.3 |
|
|
603.0 |
|
| Paid-in capital |
|
6,556.6 |
|
|
4,000.4 |
|
| Retained earnings |
|
4,650.6 |
|
|
4,496.0 |
|
| Accumulated other comprehensive income (loss) |
|
(1,573.9 |
) |
|
(1,694.9 |
) |
| Class B common stock held in treasury at cost (9.5 shares and 9.5 shares,
respectively) |
|
(471.4 |
) |
|
(471.4 |
) |
| Total Molson Coors Brewing Company stockholders' equity |
|
9,852.3 |
|
|
7,043.0 |
|
| Noncontrolling interests |
|
19.6 |
|
|
20.1 |
|
| Total equity |
|
9,871.9 |
|
|
7,063.1 |
|
| Total liabilities and equity |
|
$ |
15,322.2 |
|
|
$ |
12,276.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 16: Condensed Consolidated Statements of Cash Flows
($ In millions)
(Unaudited)
|
| |
|
|
|
|
Six Months Ended |
|
|
June 30, 2016 |
|
June 30, 2015 |
| Cash flows from operating activities: |
|
|
|
|
| Net income (loss) including noncontrolling interests |
|
$ |
333.5 |
|
|
$ |
313.9 |
|
| Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
| Depreciation and amortization |
|
137.7 |
|
|
158.9 |
|
| Amortization of debt issuance costs and discounts |
|
35.5 |
|
|
2.6 |
|
| Share-based compensation |
|
11.5 |
|
|
8.1 |
|
| (Gain) loss on sale or impairment of properties and other assets, net |
|
(79.8 |
) |
|
(3.5 |
) |
| Equity income in MillerCoors |
|
(323.2 |
) |
|
(334.8 |
) |
| Distributions from MillerCoors |
|
323.2 |
|
|
334.8 |
|
| Equity in net (income) loss of other unconsolidated affiliates |
|
2.4 |
|
|
(1.9 |
) |
| Excess tax benefits from share-based compensation |
|
(4.4 |
) |
|
(7.6 |
) |
| Unrealized (gain) loss on foreign currency fluctuations and derivative instruments,
net |
|
(5.2 |
) |
|
4.9 |
|
| Income tax (benefit) expense |
|
41.8 |
|
|
71.2 |
|
| Income tax (paid) received |
|
(109.1 |
) |
|
(69.0 |
) |
| Interest expense, excluding interest amortization |
|
95.5 |
|
|
61.0 |
|
| Interest paid |
|
(95.1 |
) |
|
(59.5 |
) |
| Pension expense |
|
4.0 |
|
|
7.9 |
|
| Pension contributions paid |
|
(10.4 |
) |
|
(240.2 |
) |
| Change in current assets and liabilities (net of impact of business combinations) and
other |
|
(95.8 |
) |
|
(47.1 |
) |
| (Gain) loss from discontinued operations |
|
2.3 |
|
|
(1.6 |
) |
| Net cash provided by operating activities |
|
264.4 |
|
|
198.1 |
|
| Cash flows from investing activities: |
|
|
|
|
| Additions to properties |
|
(121.6 |
) |
|
(139.8 |
) |
| Proceeds from sales of properties and other assets |
|
144.6 |
|
|
7.5 |
|
| Acquisition of businesses, net of cash acquired |
|
— |
|
|
(51.1 |
) |
| Investment in MillerCoors |
|
(810.6 |
) |
|
(758.1 |
) |
| Return of capital from MillerCoors |
|
731.1 |
|
|
692.9 |
|
| Other |
|
(4.1 |
) |
|
(9.5 |
) |
| Net cash used in investing activities |
|
(60.6 |
) |
|
(258.1 |
) |
| Cash flows from financing activities: |
|
|
|
|
| Proceeds from issuance of common stock, net |
|
2,525.9 |
|
|
— |
|
| Exercise of stock options under equity compensation plans |
|
5.4 |
|
|
28.6 |
|
| Excess tax benefits from share-based compensation |
|
4.4 |
|
|
7.6 |
|
| Dividends paid |
|
(176.5 |
) |
|
(152.3 |
) |
| Payments for purchase of treasury stock |
|
— |
|
|
(50.1 |
) |
| Debt issuance costs |
|
(15.0 |
) |
|
— |
|
| Payments on debt and borrowings |
|
(17.9 |
) |
|
(14.6 |
) |
| Proceeds on debt and borrowings |
|
31.7 |
|
|
27.9 |
|
| Net proceeds from (payments on) revolving credit facilities and commercial paper |
|
2.5 |
|
|
67.2 |
|
| Change in overdraft balances and other |
|
(3.9 |
) |
|
(39.0 |
) |
| Net cash provided by (used in) financing activities |
|
2,356.6 |
|
|
(124.7 |
) |
| Cash and cash equivalents: |
|
|
|
|
| Net increase (decrease) in cash and cash equivalents |
|
2,560.4 |
|
|
(184.7 |
) |
| Effect of foreign exchange rate changes on cash and cash equivalents |
|
(1.0 |
) |
|
(26.1 |
) |
| Balance at beginning of year |
|
430.9 |
|
|
624.6 |
|
| Balance at end of period |
|
$ |
2,990.3 |
|
|
$ |
413.8 |
|
| |
|
|
|
|
|
|
|
|
Molson Coors Brewing Company
News Media
Colin Wheeler, 303-927-2443
or
Investor Relations
Dave Dunnewald, 303-927-2334
View source version on businesswire.com: http://www.businesswire.com/news/home/20160802005490/en/