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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 7/31/19 Molson Coors Beverage Co 8-K:2,9 7/31/19 12:945K Business Wire/FA |
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Net Sales Revenue Decreased 4.4% Reported and 2.9% in Constant Currency
U.S. GAAP Net Income Decreased 22.3%
Underlying EBITDA Decreased 12.8% in Constant Currency
EPS (U.S. GAAP) of $1.52 Decreased 22.4%, and
Underlying EPS (Non-GAAP) of $1.52 Decreased 19.1%
Soft Volume Partially Offset by Positive Global Pricing and Favorable Mix
Increased Brand Investment to Drive Portfolio Premiumization
Board of Directors Declares 39% Quarterly Dividend Increase
Management Remains Committed to Cost Savings, Free Cash Flow Guidance and Ongoing Deleveraging
___________________________________
DENVER & MONTREAL--(BUSINESS WIRE)--July 31, 2019--Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported results for the 2019 second quarter. Molson Coors president and chief executive officer Mark Hunter said:
"After a solid start in the first four months of the year, May and June were challenging reflecting unfavorable weather and weak industry demand across our major geographies, resulting in a disappointing volume performance in the quarter. Despite this backdrop, we executed our plans for incremental brand investment to drive accelerated portfolio premiumization and innovation impact across our business. Encouragingly, we delivered strong constant currency net sales per hectoliter growth of 3.7% and our share trends improved in the U.S. and were stable in Europe. We also saw strong premium light share growth in the U.S. as Miller Lite and Coors Light each gained segment share. This was ahead of the newly launched Coors Light "Made to Chill" advertising, which is focused on new drinker recruitment by dramatizing Coors Light's purpose to refresh the spirit through its mountain cold refreshment credentials. We believe this creative platform is distinctive, disruptive and breakthrough. We also maintained our focus on cash flow, through cost savings and improving working capital."
Mark continued, "We remain resolute on the ambition to improve our top-line through increased investments in our brands, premiumization and innovation initiatives, including the launch of our Truss cannabis infused non-alcoholic beverage portfolio in Canada later this year. We are committed to doing this while maintaining our investment grade credit rating and strengthening our quarterly dividend, which increased by 39% to $0.57 per share."
Consolidated Performance - Second Quarter 2019 | |||||||||||||||||
|
Three Months Ended |
||||||||||||||||
($ in millions, except per share data) (Unaudited) |
|
|
Reported |
|
Foreign |
|
Constant |
||||||||||
Net Sales |
$ |
2,948.3 |
|
|
$ |
3,085.2 |
|
|
(4.4 |
)% |
|
$ |
(47.0 |
) |
|
(2.9 |
)% |
U.S. GAAP Net income (loss)(1) |
$ |
329.4 |
|
|
$ |
424.1 |
|
|
(22.3 |
)% |
|
|
|
|
|||
Per diluted share |
$ |
1.52 |
|
|
$ |
1.96 |
|
|
(22.4 |
)% |
|
|
|
|
|||
Underlying (Non-GAAP) Net income (loss)(2) |
$ |
329.6 |
|
|
$ |
406.1 |
|
|
(18.8 |
)% |
|
|
|
|
|||
Per diluted share |
$ |
1.52 |
|
|
$ |
1.88 |
|
|
(19.1 |
)% |
|
|
|
|
|||
Underlying EBITDA (Non-GAAP)(2) |
$ |
676.0 |
|
|
$ |
783.3 |
|
|
(13.7 |
)% |
|
$ |
(7.4 |
) |
|
(12.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||||||||||
($ in millions, except per share data) (Unaudited) |
|
|
Reported |
|
Foreign |
|
Constant |
||||||||||
Net Sales |
$ |
5,251.6 |
|
|
$ |
5,416.7 |
|
|
(3.0 |
)% |
|
$ |
(89.1 |
) |
|
(1.4 |
)% |
U.S. GAAP Net income (loss)(1) |
$ |
480.8 |
|
|
$ |
702.2 |
|
|
(31.5 |
)% |
|
|
|
|
|||
Per diluted share |
$ |
2.22 |
|
|
$ |
3.24 |
|
|
(31.5 |
)% |
|
|
|
|
|||
Underlying (Non-GAAP) Net income (loss)(2) |
$ |
442.3 |
|
|
$ |
510.4 |
|
|
(13.3 |
)% |
|
|
|
|
|||
Per diluted share |
$ |
2.04 |
|
|
$ |
2.36 |
|
|
(13.6 |
)% |
|
|
|
|
|||
Underlying EBITDA (Non-GAAP)(2) |
$ |
1,098.3 |
|
|
$ |
1,209.3 |
|
|
(9.2 |
)% |
|
$ |
(12.1 |
) |
|
(8.2 |
)% |
|
|
|
|
|
|
|
|
|
|
(1) Net income (loss) attributable to MCBC.
(2) See Appendix for definitions and reconciliations of non-GAAP financial measures.
Quarterly Highlights |
(versus Second Quarter 2018 Results) |
Business Review - Second Quarter 2019 |
|||||||||||||||||
Net Sales |
|||||||||||||||||
($ in millions) (Unaudited)
|
Three Months Ended |
||||||||||||||||
|
|
|
Reported |
|
Foreign |
|
Constant |
||||||||||
United States |
$ |
2,011.7 |
|
|
$ |
2,072.5 |
|
|
(2.9 |
)% |
|
$ |
|
|
|
(2.9 |
)% |
Canada |
373.0 |
|
|
397.4 |
|
|
(6.1 |
)% |
|
(12.9 |
) |
|
(2.9 |
)% |
|||
Europe |
538.5 |
|
|
586.1 |
|
|
(8.1 |
)% |
|
(33.4 |
) |
|
(2.4 |
)% |
|||
International |
58.9 |
|
|
67.9 |
|
|
(13.3 |
)% |
|
(0.8 |
) |
|
(12.1 |
)% |
|||
Corporate |
0.3 |
|
|
0.3 |
|
|
|
% |
|
|
|
|
|
% |
|||
Eliminations(2) |
(34.1 |
) |
|
(39.0 |
) |
|
12.6 |
% |
|
0.1 |
|
|
12.3 |
% |
|||
Consolidated |
$ |
2,948.3 |
|
|
$ |
3,085.2 |
|
|
(4.4 |
)% |
|
$ |
(47.0 |
) |
|
(2.9 |
)% |
|
|
|
|
|
|
|
|
|
|
(1) See Appendix for definitions and reconciliations of non-GAAP financial measures.
(2) Reflects intercompany sales that are eliminated in consolidated totals.
Pretax Income (U.S. GAAP) |
|||||||||||||||||
($ in millions) (Unaudited)
|
Three Months Ended |
||||||||||||||||
|
|
|
Reported |
|
Foreign |
|
Constant |
||||||||||
United States |
$ |
401.0 |
|
|
$ |
445.5 |
|
|
(10.0 |
)% |
|
$ |
0.2 |
|
|
(10.0 |
)% |
Canada |
80.4 |
|
|
61.3 |
|
|
31.2 |
% |
|
(0.6 |
) |
|
32.1 |
% |
|||
Europe |
55.8 |
|
|
86.8 |
|
|
(35.7 |
)% |
|
(2.7 |
) |
|
(32.6 |
)% |
|||
International |
2.5 |
|
|
1.3 |
|
|
92.3 |
% |
|
|
|
|
92.3 |
% |
|||
Corporate |
(139.1 |
) |
|
(71.9 |
) |
|
(93.5 |
)% |
|
0.1 |
|
|
(93.6 |
)% |
|||
Consolidated |
$ |
400.6 |
|
|
$ |
523.0 |
|
|
(23.4 |
)% |
|
$ |
(3.0 |
) |
|
(22.8 |
)% |
|
|
|
|
|
|
|
|
|
|
(1) See Appendix for definitions and reconciliations of non-GAAP financial measures.
Underlying EBITDA (Non-GAAP)(1) |
|||||||||||||||||
($ in millions) (Unaudited)
|
Three Months Ended |
||||||||||||||||
|
|
|
Reported |
|
Foreign |
|
Constant |
||||||||||
United States |
$ |
529.1 |
|
|
$ |
576.3 |
|
|
(8.2 |
)% |
|
$ |
0.2 |
|
|
(8.2 |
)% |
Canada |
70.5 |
|
|
96.2 |
|
|
(26.7 |
)% |
|
(1.3 |
) |
|
(25.4 |
)% |
|||
Europe |
104.9 |
|
|
135.8 |
|
|
(22.8 |
)% |
|
(5.9 |
) |
|
(18.4 |
)% |
|||
International |
5.8 |
|
|
6.5 |
|
|
(10.8 |
)% |
|
|
|
|
(10.8 |
)% |
|||
Corporate |
(34.3 |
) |
|
(31.5 |
) |
|
(8.9 |
)% |
|
(0.4 |
) |
|
(7.6 |
)% |
|||
Consolidated |
$ |
676.0 |
|
|
$ |
783.3 |
|
|
(13.7 |
)% |
|
$ |
(7.4 |
) |
|
(12.8 |
)% |
|
|
|
|
|
|
|
|
|
|
(1) See Appendix for definitions and reconciliations of non-GAAP financial measures.
Quarterly Segment Highlights |
(versus Second Quarter 2018 Results) |
United States Business
Canada Business
Europe Business
International Business
Corporate
Worldwide Brand and Financial Volume(1) | ||||||||
(In millions of hectoliters) (Unaudited)
|
Three Months Ended |
|||||||
|
|
|
Change |
|||||
Financial Volume(1) |
25.811 |
|
|
27.745 |
|
|
(7.0 |
)% |
Contract brewing, wholesaler and non-beer volume |
(2.129 |
) |
|
(2.277 |
) |
|
(6.5 |
)% |
Royalty volume |
1.040 |
|
|
1.057 |
|
|
(1.6 |
)% |
Sales-To-Wholesaler to Sales-To-Retail adjustment |
(0.427 |
) |
|
(0.780 |
) |
|
(45.3 |
)% |
Total Worldwide Brand Volume(1) |
24.295 |
|
|
25.745 |
|
|
(5.6 |
)% |
|
|
|
|
|
|
(1) See Appendix for definitions and additional discussion regarding Financial and Worldwide Brand Volume.
Other Results |
|||||
Effective Income Tax Rates |
|||||
|
Three Months Ended |
||||
|
|
||||
U.S. GAAP effective tax rate |
18 |
% |
|
18 |
% |
Underlying effective tax rate |
18 |
% |
|
17 |
% |
|
|
|
|
Special and Other Non-Core Items
The following special and other non-core items have been excluded from underlying results. See the Appendix for reconciliations of non-GAAP financial measures.
2019 Outlook |
We currently expect to achieve the following guidance for full year 2019:
Notes |
Unless otherwise indicated in this release, all $ amounts are in U.S. Dollars, and all quarterly comparative results are for the Companys second quarter ended June 30, 2019, compared to the second quarter ended June 30, 2018. Some numbers may not sum due to rounding.
2019 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 Companys 2019 second quarter results. The live webcast will be accessible via our website, www.molsoncoors.com. An online replay of the webcast will be available until 11:59 p.m. Eastern Time on October 29, 2019. The Company will post this release and related financial statements on its website today.
Upcoming Investor Webcast |
We will also host an online, real-time webcast at the Barclays Global Consumer Staples Conference in Boston on Wednesday, September 4, 2019 at 10:30 a.m. Eastern Time. The live webcast will be accessible on the Investor Relations page of our website. An online replay of the presentation webcast will be available until 11:59 p.m. Eastern Time on December 15, 2019.
Overview of Molson Coors |
Molson Coors has defined brewing greatness for more than two centuries. As one of the largest global brewers, Molson Coors works to deliver extraordinary brands that delight the worlds beer drinkers. From Coors Light, Coors Banquet, Miller Lite, Molson Canadian, Carling, Staropramen and Sharps Doom Bar to Leinenkugels Summer Shandy, Blue Moon Belgian White, Hop Valley, Creemore Springs and Crispin Cider, Molson Coors offers a beer for every beer lover.
Molson Coors operates through Molson Coors Canada, MillerCoors in the U.S., Molson Coors Europe and Molson Coors International. The company is not only committed to brewing extraordinary beers, but also running a business focused on respect for its employees, communities and drinkers, which means focusing on sustainability and accountability from the start. Molson Coors is committed to leaving a positive imprint on our consumers, employees, communities and the environment as reflected in Our Beer Print and our 2025 sustainability targets. To learn more about Molson Coors Brewing Company, visit molsoncoors.com, ourbeerprint.com or on Twitter through @MolsonCoors.
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 MCBCs 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 forward-looking statements within the meaning of the U.S. federal securities laws. Generally, the words believe, expect, intend, anticipate, project, will, outlook, and similar expressions identify forward-looking statements, which generally are not historic in nature. Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements, and include, but are not limited to, statements under the heading "2019 Outlook," expectations regarding future dividends, timing and amounts of debt and leverage levels and cash flow expectations. 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 Companys historical experience, and present projections and expectations are disclosed in the Companys filings with the Securities and Exchange Commission (SEC). These factors include, among others, the 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; our ability to achieve expected tax benefits, accretion and cost savings relating to our acquisition of MillerCoors; pension plan and other post-retirement benefit 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; and other risks discussed in our filings with the SEC, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. 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.
APPENDIX |
Worldwide Brand and Financial Volumes |
Worldwide brand volume (or "brand volume" when discussed by segment) reflects only owned brands sold to unrelated external customers within our geographic markets (net of returns and allowances), royalty volume and our proportionate share of equity investment worldwide brand volume calculated consistently with MCBC owned volume. Contract brewing and wholesaler volume is included within financial volume, but is removed from worldwide brand volume, as this is non-owned volume for which we do not directly control performance. Our worldwide brand volume definition also includes an adjustment from Sales-to-Wholesaler (STW) volume to Sales-to-Retailer (STR) volume. We believe the brand volume metric is important because, unlike financial volume and STWs, it provides the closest indication of the performance of our brands in relation to market and competitor sales trends.
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 constant currency, "underlying COGS" and "underlying COGS per hectoliter" (underlying COGS divided by reported financial volume), "underlying pretax and net 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, as well as underlying EBITDA margin, which is calculated by dividing underlying EBITDA by U.S. GAAP net sales. Our management uses underlying income, underlying income per diluted share, underlying EBITDA (and margin), 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 margin), 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. In addition, constant-currency results exclude the impact of foreign currency movements. For discussion and analysis of our liquidity, see the consolidated statements of cash flows and the Liquidity and Capital Resources section of our Managements 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 historical 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 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.
Our guidance for underlying Corporate MG&A, underlying depreciation and amortization, underlying free cash flow, underlying COGS per hectoliter and underlying effective tax rate are also non-GAAP financial measures that exclude or otherwise have been adjusted for special items from our U.S. GAAP financial statements as well as other non-core items, such as 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. We are unable to reconcile the above described guidance measures to their nearest U.S. GAAP measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of the special and other non-core items. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures.
Constant currency is a non-GAAP measure utilized by Molson Coors management to measure performance, excluding the impact of foreign currency movements, and is intended to be indicative of results in local currency. 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, non-GAAP underlying EBITDA and non-GAAP underlying pretax income using the following steps:
Reconciliations to Nearest U.S. GAAP Measures |
||||||||||
Underlying EBITDA |
||||||||||
($ in millions) (Unaudited)
|
Three Months Ended |
|||||||||
|
|
|
Change |
|||||||
U.S. GAAP: Net income (loss) attributable to MCBC |
$ |
329.4 |
|
|
$ |
424.1 |
|
|
(22.3 |
)% |
Add: Net income (loss) attributable to noncontrolling interests |
0.8 |
|
|
6.7 |
|
|
(88.1 |
)% |
||
U.S. GAAP: Net income (loss) |
330.2 |
|
|
430.8 |
|
|
(23.4 |
)% |
||
Add: Interest expense (income), net |
65.6 |
|
|
76.7 |
|
|
(14.5 |
)% |
||
Add: Income tax expense (benefit) |
70.4 |
|
|
92.2 |
|
|
(23.6 |
)% |
||
Add: Depreciation and amortization |
216.8 |
|
|
215.9 |
|
|
0.4 |
% |
||
Adjustments included in underlying income(1) |
0.8 |
|
|
(24.9 |
) |
|
N/M |
|||
Adjustments to arrive at underlying EBITDA(2) |
(7.8 |
) |
|
(7.4 |
) |
|
5.4 |
% |
||
Non-GAAP: Underlying EBITDA |
$ |
676.0 |
|
|
$ |
783.3 |
|
|
(13.7 |
)% |
|
|
|
|
|
|
($ in millions) (Unaudited)
|
Six Months Ended |
|||||||||
|
|
|
Change |
|||||||
U.S. GAAP: Net income (loss) attributable to MCBC |
$ |
480.8 |
|
|
$ |
702.2 |
|
|
(31.5 |
)% |
Add: Net income (loss) attributable to noncontrolling interests |
(1.5 |
) |
|
11.1 |
|
|
N/M |
|||
U.S. GAAP: Net income (loss) |
479.3 |
|
|
713.3 |
|
|
(32.8 |
)% |
||
Add: Interest expense (income), net |
138.9 |
|
|
159.9 |
|
|
(13.1 |
)% |
||
Add: Income tax expense (benefit) |
102.6 |
|
|
167.1 |
|
|
(38.6 |
)% |
||
Add: Depreciation and amortization |
429.7 |
|
|
429.6 |
|
|
|
% |
||
Adjustments included in underlying income(1) |
(35.6 |
) |
|
(244.7 |
) |
|
(85.5 |
)% |
||
Adjustments to arrive at underlying EBITDA(2) |
(16.6 |
) |
|
(15.9 |
) |
|
4.4 |
% |
||
Non-GAAP: Underlying EBITDA |
$ |
1,098.3 |
|
|
$ |
1,209.3 |
|
|
(9.2 |
)% |
|
|
|
|
|
|
N/M = Not meaningful | |
(1) |
Includes adjustments to non-GAAP underlying income related to special and non-core items. See Reconciliations to Nearest U.S. GAAP Measures by Line Item table for detailed adjustments. |
(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. |
Underlying Free Cash Flow |
||||||||
(In millions) (Unaudited) |
Six Months Ended |
|||||||
|
|
|
||||||
U.S. GAAP: |
Net Cash Provided by (Used In) Operating Activities |
$ |
828.0 |
|
|
$ |
1,297.8 |
|
Less: |
Additions to properties(1) |
(310.5 |
) |
|
(351.1 |
) |
||
Add/Less: |
Cash impact of special items(2) |
23.8 |
|
|
(321.6 |
) |
||
Add: |
Non-core costs related to acquisition of businesses(3) |
19.4 |
|
|
34.7 |
|
||
Non-GAAP: |
Underlying Free Cash Flow |
$ |
560.7 |
|
|
$ |
659.8 |
|
|
|
|
|
|
(1) |
Included in net cash used in investing activities. |
(2) |
Included in net cash provided by (used in) operating activities. For the six months ended June 30, 2019, primarily reflects costs paid for restructuring activities and for the six months ended June 30, 2018, primarily reflects the settlement payment received relating to a purchase price adjustment. |
(3) |
Included in net cash provided by (used in) operating activities and reflects integration costs paid associated with the acquisition of 58% of MillerCoors, LLC, and the Miller global brand portfolio. |
Statements of Operations -- Molson Coors Brewing Company and Subsidiaries | |||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(In millions, except per share data) (Unaudited)
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
Financial volume in hectoliters |
25.811 |
|
|
27.745 |
|
|
45.912 |
|
|
48.558 |
|
||||
Sales |
$ |
3,620.0 |
|
|
$ |
3,820.5 |
|
|
$ |
6,420.1 |
|
|
$ |
6,688.5 |
|
Excise taxes |
(671.7 |
) |
|
(735.3 |
) |
|
(1,168.5 |
) |
|
(1,271.8 |
) |
||||
Net sales |
2,948.3 |
|
|
3,085.2 |
|
|
5,251.6 |
|
|
5,416.7 |
|
||||
Cost of goods sold |
(1,759.8 |
) |
|
(1,739.1 |
) |
|
(3,172.8 |
) |
|
(3,274.8 |
) |
||||
Gross profit |
1,188.5 |
|
|
1,346.1 |
|
|
2,078.8 |
|
|
2,141.9 |
|
||||
Marketing, general and administrative expenses |
(769.7 |
) |
|
(744.7 |
) |
|
(1,424.9 |
) |
|
(1,425.8 |
) |
||||
Special items, net |
49.9 |
|
|
(10.5 |
) |
|
36.9 |
|
|
304.3 |
|
||||
Operating income (loss) |
468.7 |
|
|
590.9 |
|
|
690.8 |
|
|
1,020.4 |
|
||||
Interest income (expense), net |
(65.6 |
) |
|
(76.7 |
) |
|
(138.9 |
) |
|
(159.9 |
) |
||||
Other pension and postretirement benefits (costs), net |
8.4 |
|
|
9.9 |
|
|
17.0 |
|
|
19.9 |
|
||||
Other income (expense), net |
(10.9 |
) |
|
(1.1 |
) |
|
13.0 |
|
|
|
|
||||
Income (loss) before income taxes |
400.6 |
|
|
523.0 |
|
|
581.9 |
|
|
880.4 |
|
||||
Income tax benefit (expense) |
(70.4 |
) |
|
(92.2 |
) |
|
(102.6 |
) |
|
(167.1 |
) |
||||
Net income (loss) |
330.2 |
|
|
430.8 |
|
|
479.3 |
|
|
713.3 |
|
||||
Net (income) loss attributable to noncontrolling interests |
(0.8 |
) |
|
(6.7 |
) |
|
1.5 |
|
|
(11.1 |
) |
||||
Net income (loss) attributable to MCBC |
$ |
329.4 |
|
|
$ |
424.1 |
|
|
$ |
480.8 |
|
|
$ |
702.2 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) attributable to MCBC per share: |
$ |
1.52 |
|
|
$ |
1.96 |
|
|
$ |
2.22 |
|
|
$ |
3.25 |
|
Diluted net income (loss) attributable to MCBC per share: |
$ |
1.52 |
|
|
$ |
1.96 |
|
|
$ |
2.22 |
|
|
$ |
3.24 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares - basic |
216.6 |
|
|
216.0 |
|
|
216.6 |
|
|
215.9 |
|
||||
Weighted average shares - diluted |
216.9 |
|
|
216.5 |
|
|
216.9 |
|
|
216.6 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends per share |
$ |
0.41 |
|
|
$ |
0.41 |
|
|
$ |
0.82 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
U.S. Results of Operations |
|||||||||||||||
(In millions) (Unaudited) |
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
Financial volume in hectoliters(1) |
17.053 |
|
|
18.338 |
|
|
31.240 |
|
|
33.056 |
|
||||
Sales(1) |
$ |
2,277.1 |
|
|
$ |
2,354.6 |
|
|
$ |
4,144.0 |
|
|
$ |
4,216.3 |
|
Excise taxes |
(265.4 |
) |
|
(282.1 |
) |
|
(473.1 |
) |
|
(496.0 |
) |
||||
Net sales(1) |
2,011.7 |
|
|
2,072.5 |
|
|
3,670.9 |
|
|
3,720.3 |
|
||||
Cost of goods sold(1) |
(1,158.7 |
) |
|
(1,189.7 |
) |
|
(2,169.0 |
) |
|
(2,179.8 |
) |
||||
Gross profit |
853.0 |
|
|
882.8 |
|
|
1,501.9 |
|
|
1,540.5 |
|
||||
Marketing, general and administrative expenses |
(454.7 |
) |
|
(435.1 |
) |
|
(830.3 |
) |
|
(828.2 |
) |
||||
Special items, net(2) |
(1.7 |
) |
|
(3.3 |
) |
|
(3.1 |
) |
|
(4.8 |
) |
||||
Operating income |
396.6 |
|
|
444.4 |
|
|
668.5 |
|
|
707.5 |
|
||||
Interest income (expense), net |
4.3 |
|
|
1.6 |
|
|
2.0 |
|
|
0.4 |
|
||||
Other income (expense), net |
0.1 |
|
|
(0.5 |
) |
|
(0.1 |
) |
|
(0.7 |
) |
||||
Income (loss) before income taxes |
$ |
401.0 |
|
|
$ |
445.5 |
|
|
$ |
670.4 |
|
|
$ |
707.2 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Special items, net(2) |
1.7 |
|
|
3.3 |
|
|
3.1 |
|
|
4.8 |
|
||||
Integration related costs(3) |
|
|
|
0.9 |
|
|
|
|
|
2.0 |
|
||||
Non-GAAP: Underlying pretax income (loss) |
$ |
402.7 |
|
|
$ |
449.7 |
|
|
$ |
673.5 |
|
|
$ |
714.0 |
|
Add: Interest expense (income), net |
(4.3 |
) |
|
(1.6 |
) |
|
(2.0 |
) |
|
(0.4 |
) |
||||
Add: Depreciation and amortization |
130.7 |
|
|
129.6 |
|
|
260.4 |
|
|
254.4 |
|
||||
Adjustments to arrive at underlying EBITDA(4) |
|
|
|
(1.4 |
) |
|
(0.8 |
) |
|
(2.8 |
) |
||||
Non-GAAP: Underlying EBITDA |
$ |
529.1 |
|
|
$ |
576.3 |
|
|
$ |
931.1 |
|
|
$ |
965.2 |
|
|
|
|
|
|
|
|
|
(1) |
Includes gross inter-segment sales, purchases, and volumes, which are eliminated in the consolidated totals. |
(2) |
See Part IItem 1. Financial Statements, Note 5, "Special Items" of our Form 10-Q for the three and six months ended June 30, 2019 (the "Form 10-Q") for detailed discussion of special items. Special items for the six months ended June 30, 2019, includes accelerated depreciation in excess of normal depreciation of $0.8 million. Special items for the three and six months ended June 30, 2018, includes accelerated depreciation in excess of normal depreciation of $1.4 million and $2.8 million, respectively. These accelerated depreciation charges are included in our adjustments to arrive at underlying EBITDA. |
(3) |
For the three and six months ended June 30, 2018, $0.9 million and $2.0 million, respectively, of integration costs were incurred in cost of goods sold. |
(4) |
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 |
Molson Coors Brewing Company and Subsidiaries
Canada Results of Operations |
|||||||||||||||
(In millions) (Unaudited)
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
Financial volume in hectoliters(1) |
2.343 |
|
|
2.473 |
|
|
3.967 |
|
|
4.180 |
|
||||
Sales(1) |
$ |
490.1 |
|
|
$ |
524.6 |
|
|
$ |
830.8 |
|
|
$ |
899.5 |
|
Excise taxes |
(117.1 |
) |
|
(127.2 |
) |
|
(196.8 |
) |
|
(218.3 |
) |
||||
Net sales(1) |
373.0 |
|
|
397.4 |
|
|
634.0 |
|
|
681.2 |
|
||||
Cost of goods sold(1) |
(232.1 |
) |
|
(235.7 |
) |
|
(412.5 |
) |
|
(423.1 |
) |
||||
Gross profit |
140.9 |
|
|
161.7 |
|
|
221.5 |
|
|
258.1 |
|
||||
Marketing, general and administrative expenses |
(99.8 |
) |
|
(94.3 |
) |
|
(176.0 |
) |
|
(175.3 |
) |
||||
Special items, net(2) |
53.5 |
|
|
(5.7 |
) |
|
45.9 |
|
|
(11.3 |
) |
||||
Operating income (loss) |
94.6 |
|
|
61.7 |
|
|
91.4 |
|
|
71.5 |
|
||||
Other income (expense), net |
(14.2 |
) |
|
(0.4 |
) |
|
10.8 |
|
|
(1.1 |
) |
||||
Income (loss) before income taxes |
$ |
80.4 |
|
|
$ |
61.3 |
|
|
$ |
102.2 |
|
|
$ |
70.4 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Special items, net(2) |
(53.5 |
) |
|
5.7 |
|
|
(45.9 |
) |
|
11.3 |
|
||||
Integration related costs(3) |
|
|
|
0.2 |
|
|
1.7 |
|
|
0.3 |
|
||||
Other non-core items(4) |
15.0 |
|
|
|
|
|
(9.4 |
) |
|
|
|
||||
Non-GAAP: Underlying pretax income (loss) |
$ |
41.9 |
|
|
$ |
67.2 |
|
|
$ |
48.6 |
|
|
$ |
82.0 |
|
Add: Depreciation and amortization |
36.4 |
|
|
35.0 |
|
|
71.1 |
|
|
71.0 |
|
||||
Adjustments to arrive at underlying EBITDA(5) |
(7.8 |
) |
|
(6.0 |
) |
|
(15.4 |
) |
|
(12.1 |
) |
||||
Non-GAAP: Underlying EBITDA |
$ |
70.5 |
|
|
$ |
96.2 |
|
|
$ |
104.3 |
|
|
$ |
140.9 |
|
|
|
|
|
|
|
|
|
(1) |
Includes gross inter-segment sales, purchases, and volumes, which are eliminated in the consolidated totals. |
(2) |
See Part IItem 1. Financial Statements, Note 5, "Special Items" of the Form 10-Q for detailed discussion of special items. Special items for the three and six months ended June 30, 2019, includes a gain of $61.3 million recognized for the sale of the Montreal brewery. Special items for the three and six months ended June 30, 2019, and June 30, 2018, also includes accelerated depreciation in excess of normal depreciation of $7.8 million and $15.4 million, respectively, and $6.0 million and $12.1 million, respectively, related to the planned closure of the Vancouver and Montreal breweries. These accelerated depreciation charges in excess of normal depreciation are included in our adjustments to arrive at underlying EBITDA. |
(3) |
For the six months ended June 30, 2019, integration related charges of $1.7 million were incurred in cost of goods sold. For the three and six months ended June 30, 2018, integration related charges of $0.2 million and $0.3 million, respectively, were incurred in cost of goods sold. |
(4) |
For the three and six months ended June 30, 2019, a loss of $15.0 million and a gain of $7.9 million, respectively, were recorded in other income (expense), net related to the unrealized mark-to-market changes of the HEXO warrants. Separately, for the six months ended June 30, 2019, a gain of $1.5 million was recorded in other income (expense), net resulting from a purchase price adjustment related to the historical sale of Molson Inc.s ownership interest in the Montreal Canadiens. |
(5) |
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. |
Molson Coors Brewing Company and Subsidiaries
Europe Results of Operations |
|||||||||||||||
(In millions) (Unaudited)
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
Financial volume in hectoliters(1)(2) |
6.441 |
|
|
6.916 |
|
|
10.745 |
|
|
11.320 |
|
||||
Sales(2) |
$ |
814.7 |
|
|
$ |
893.9 |
|
|
$ |
1,378.8 |
|
|
$ |
1,492.4 |
|
Excise taxes |
(276.2 |
) |
|
(307.8 |
) |
|
(477.4 |
) |
|
(532.0 |
) |
||||
Net sales(2) |
538.5 |
|
|
586.1 |
|
|
901.4 |
|
|
960.4 |
|
||||
Cost of goods sold |
(333.2 |
) |
|
(353.6 |
) |
|
(585.3 |
) |
|
(621.3 |
) |
||||
Gross profit |
205.3 |
|
|
232.5 |
|
|
316.1 |
|
|
339.1 |
|
||||
Marketing, general and administrative expenses |
(146.9 |
) |
|
(143.7 |
) |
|
(279.2 |
) |
|
(274.1 |
) |
||||
Special items, net(3) |
(1.6 |
) |
|
0.3 |
|
|
(4.9 |
) |
|
(4.8 |
) |
||||
Operating income (loss) |
56.8 |
|
|
89.1 |
|
|
32.0 |
|
|
60.2 |
|
||||
Interest income (expense), net |
(1.5 |
) |
|
(1.4 |
) |
|
(2.8 |
) |
|
(2.1 |
) |
||||
Other income (expense), net |
0.5 |
|
|
(0.9 |
) |
|
(0.9 |
) |
|
(1.2 |
) |
||||
Income (loss) before income taxes |
$ |
55.8 |
|
|
$ |
86.8 |
|
|
$ |
28.3 |
|
|
$ |
56.9 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Special items, net(3) |
1.6 |
|
|
(0.3 |
) |
|
4.9 |
|
|
4.8 |
|
||||
Integration related costs(4) |
|
|
|
0.1 |
|
|
|
|
|
0.3 |
|
||||
Non-GAAP: Underlying pretax income (loss) |
$ |
57.4 |
|
|
$ |
86.6 |
|
|
$ |
33.2 |
|
|
$ |
62.0 |
|
Add: Interest expense (income), net |
1.5 |
|
|
1.4 |
|
|
2.8 |
|
|
2.1 |
|
||||
Add: Depreciation and amortization |
46.0 |
|
|
47.8 |
|
|
91.2 |
|
|
97.2 |
|
||||
Adjustments to arrive at underlying EBITDA(5) |
|
|
|
|
|
|
(0.4 |
) |
|
(1.0 |
) |
||||
Non-GAAP: Underlying EBITDA |
$ |
104.9 |
|
|
$ |
135.8 |
|
|
$ |
126.8 |
|
|
$ |
160.3 |
|
|
|
|
|
|
|
|
|
(1) |
Excludes royalty volume of 0.479 million hectoliters and 0.773 million hectoliters for the three and six months ended June 30, 2019, respectively, and excludes royalty volume of 0.490 million hectoliters and 0.796 million hectoliters for the three and six months ended June 30, 2018, respectively. |
(2) |
Includes gross inter-segment sales and volumes, which are eliminated in the consolidated totals. |
(3) |
See Part IItem 1. Financial Statements, Note 5, "Special Items" of the Form 10-Q for detailed discussion of special items. Special items for the six months ended June 30, 2019, and June 30, 2018, includes accelerated depreciation in excess of normal depreciation of $0.4 million and $1.0 million, respectively, related to the closure of our Burton South brewery in the U.K., which closed in the first quarter of 2018. These accelerated depreciation charges in excess of normal depreciation are included in our adjustments to arrive at underlying EBITDA. |
(4) |
For the three and six months ended June 30, 2018, $0.1 million and $0.3 million, respectively, of integration related costs were incurred in cost of goods sold. |
(5) |
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. |
Molson Coors Brewing Company and Subsidiaries
International Results of Operations |
|||||||||||||||
(In millions) (Unaudited)
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
Financial volume in hectoliters(1) |
0.500 |
|
|
0.637 |
|
|
0.925 |
|
|
1.157 |
|
||||
Sales |
$ |
71.9 |
|
|
$ |
86.1 |
|
|
$ |
128.0 |
|
|
$ |
150.9 |
|
Excise taxes |
(13.0 |
) |
|
(18.2 |
) |
|
(21.2 |
) |
|
(25.5 |
) |
||||
Net sales |
58.9 |
|
|
67.9 |
|
|
106.8 |
|
|
125.4 |
|
||||
Cost of goods sold(2) |
(37.0 |
) |
|
(44.1 |
) |
|
(68.0 |
) |
|
(81.9 |
) |
||||
Gross profit |
21.9 |
|
|
23.8 |
|
|
38.8 |
|
|
43.5 |
|
||||
Marketing, general and administrative expenses |
(19.2 |
) |
|
(20.6 |
) |
|
(35.8 |
) |
|
(35.7 |
) |
||||
Special items, net(3) |
(0.4 |
) |
|
(1.8 |
) |
|
(0.8 |
) |
|
(2.8 |
) |
||||
Operating income (loss) |
2.3 |
|
|
1.4 |
|
|
2.2 |
|
|
5.0 |
|
||||
Other income (expense), net |
0.2 |
|
|
(0.1 |
) |
|
|
|
|
|
|
||||
Income (loss) before income taxes |
$ |
2.5 |
|
|
$ |
1.3 |
|
|
$ |
2.2 |
|
|
$ |
5.0 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Special items, net(3) |
0.4 |
|
|
1.8 |
|
|
0.8 |
|
|
2.8 |
|
||||
Integration related costs(4) |
0.1 |
|
|
0.8 |
|
|
0.2 |
|
|
0.8 |
|
||||
Non-GAAP: Underlying pretax income (loss) |
$ |
3.0 |
|
|
$ |
3.9 |
|
|
$ |
3.2 |
|
|
$ |
8.6 |
|
Add: Depreciation and amortization |
2.8 |
|
|
2.6 |
|
|
5.3 |
|
|
5.0 |
|
||||
Non-GAAP: Underlying EBITDA |
$ |
5.8 |
|
|
$ |
6.5 |
|
|
$ |
8.5 |
|
|
$ |
13.6 |
|
|
|
|
|
|
|
|
|
(1) |
Excludes royalty volume of 0.561 million hectoliters and 1.004 million hectoliters for the three and six months ended June 30, 2019, respectively, and excludes royalty volume of 0.567 million hectoliters and 0.977 million hectoliters for the three and six months ended June 30, 2018, respectively. |
(2) |
Includes gross inter-segment purchases, which are eliminated in the consolidated totals. |
(3) |
See Part IItem 1. Financial Statements, Note 5, "Special Items" of the Form 10-Q for detailed discussion of special items. |
(4) |
For the three and six months ended June 30, 2019, $0.1 million and $0.2 million, respectively, and for both the three and six months ended June 30, 2018, $0.8 million of integration costs were incurred in marketing, general & administrative expenses. |
Molson Coors Brewing Company and Subsidiaries
Corporate Results of Operations |
|||||||||||||||
(In millions) (Unaudited)
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
Financial volume in hectoliters |
|
|
|
|
|
|
|
|
|
|
|
||||
Sales |
$ |
0.3 |
|
|
$ |
0.3 |
|
|
$ |
0.5 |
|
|
$ |
0.5 |
|
Excise taxes |
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales |
0.3 |
|
|
0.3 |
|
|
0.5 |
|
|
0.5 |
|
||||
Cost of goods sold |
(32.9 |
) |
|
45.0 |
|
|
|
|
|
(39.8 |
) |
||||
Gross profit |
(32.6 |
) |
|
45.3 |
|
|
0.5 |
|
|
(39.3 |
) |
||||
Marketing, general and administrative expenses |
(49.1 |
) |
|
(51.0 |
) |
|
(103.6 |
) |
|
(112.5 |
) |
||||
Special items, net(1) |
0.1 |
|
|
|
|
|
(0.2 |
) |
|
328.0 |
|
||||
Operating income (loss) |
(81.6 |
) |
|
(5.7 |
) |
|
(103.3 |
) |
|
176.2 |
|
||||
Interest expense, net |
(68.4 |
) |
|
(76.9 |
) |
|
(138.1 |
) |
|
(158.2 |
) |
||||
Other pension and postretirement benefits (costs), net |
8.4 |
|
|
9.9 |
|
|
17.0 |
|
|
19.9 |
|
||||
Other income (expense), net |
2.5 |
|
|
0.8 |
|
|
3.2 |
|
|
3.0 |
|
||||
Income (loss) before income taxes |
$ |
(139.1 |
) |
|
$ |
(71.9 |
) |
|
$ |
(221.2 |
) |
|
$ |
40.9 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Special items, net(1) |
(0.1 |
) |
|
|
|
|
0.2 |
|
|
(328.0 |
) |
||||
Integration related costs(2) |
4.4 |
|
|
7.7 |
|
|
11.7 |
|
|
16.5 |
|
||||
Unrealized mark-to-market (gains) and losses(3) |
31.2 |
|
|
(45.1 |
) |
|
(2.9 |
) |
|
39.6 |
|
||||
Non-core other pension and postretirement benefits (costs), net |
|
|
|
|
|
|
|
|
|
0.1 |
|
||||
Non-GAAP: Underlying pretax income (loss) |
$ |
(103.6 |
) |
|
$ |
(109.3 |
) |
|
$ |
(212.2 |
) |
|
$ |
(230.9 |
) |
Add: Interest expense (income), net |
68.4 |
|
|
76.9 |
|
|
138.1 |
|
|
158.2 |
|
||||
Add: Depreciation and amortization |
0.9 |
|
|
0.9 |
|
|
1.7 |
|
|
2.0 |
|
||||
Non-GAAP: Underlying EBITDA |
$ |
(34.3 |
) |
|
$ |
(31.5 |
) |
|
$ |
(72.4 |
) |
|
$ |
(70.7 |
) |
|
|
|
|
|
|
|
|
(1) |
See Part IItem 1. Financial Statements, Note 5, "Special Items" of the Form 10-Q for detailed discussion of special items. |
(2) |
In connection with the acquisition, for the three and six months ended June 30, 2019, we have recorded $4.4 million and $11.7 million, respectively, and for the three and six months ended June 30, 2018, we have recorded $7.7 million and $16.5 million, respectively, of integration costs within marketing, general & administrative expenses. |
(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. |
Balance Sheet | |||||||
Condensed Consolidated Balance Sheets |
|||||||
(In millions, except par value) (Unaudited) |
As of |
||||||
|
|
||||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
490.2 |
|
|
$ |
1,057.9 |
|
Accounts receivable, net |
932.3 |
|
|
744.4 |
|
||
Other receivables, net |
175.8 |
|
|
126.6 |
|
||
Inventories, net |
698.1 |
|
|
591.8 |
|
||
Other current assets, net |
304.0 |
|
|
245.6 |
|
||
Total current assets |
2,600.4 |
|
|
2,766.3 |
|
||
Properties, net |
4,505.1 |
|
|
4,608.3 |
|
||
Goodwill |
8,288.9 |
|
|
8,260.8 |
|
||
Other intangibles, net |
13,767.4 |
|
|
13,776.4 |
|
||
Other assets |
899.8 |
|
|
698.0 |
|
||
Total assets |
$ |
30,061.6 |
|
|
$ |
30,109.8 |
|
Liabilities and equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and other current liabilities |
$ |
3,045.6 |
|
|
$ |
2,706.4 |
|
Current portion of long-term debt and short-term borrowings |
1,034.7 |
|
|
1,594.5 |
|
||
Total current liabilities |
4,080.3 |
|
|
4,300.9 |
|
||
Long-term debt |
8,517.9 |
|
|
8,893.8 |
|
||
Pension and postretirement benefits |
725.5 |
|
|
726.6 |
|
||
Deferred tax liabilities |
2,199.6 |
|
|
2,128.9 |
|
||
Other liabilities |
393.3 |
|
|
323.8 |
|
||
Total liabilities |
15,916.6 |
|
|
16,374.0 |
|
||
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: 205.7 shares and 205.4 shares, respectively) |
2.1 |
|
|
2.0 |
|
||
Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.8 shares, respectively) |
103.0 |
|
|
103.2 |
|
||
Class B exchangeable shares, no par value (issued and outstanding: 14.8 shares and 14.8 shares, respectively) |
557.9 |
|
|
557.6 |
|
||
Paid-in capital |
6,783.3 |
|
|
6,773.1 |
|
||
Retained earnings |
8,103.1 |
|
|
7,692.9 |
|
||
Accumulated other comprehensive income (loss) |
(1,178.6 |
) |
|
(1,150.0 |
) |
||
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 |
13,899.4 |
|
|
13,507.4 |
|
||
Noncontrolling interests |
245.6 |
|
|
228.4 |
|
||
Total equity |
14,145.0 |
|
|
13,735.8 |
|
||
Total liabilities and equity |
$ |
30,061.6 |
|
|
$ |
30,109.8 |
|
|
|
|
|
Cash Flow Statement | |||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
($ in millions) (Unaudited) |
Six Months Ended |
||||||
|
|
||||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) including noncontrolling interests |
$ |
479.3 |
|
|
$ |
713.3 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
429.7 |
|
|
429.6 |
|
||
Amortization of debt issuance costs and discounts |
7.5 |
|
|
7.2 |
|
||
Share-based compensation |
18.6 |
|
|
25.1 |
|
||
(Gain) loss on sale or impairment of properties and other assets, net |
(67.7 |
) |
|
|
|
||
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net |
(12.4 |
) |
|
38.4 |
|
||
Income tax (benefit) expense |
102.6 |
|
|
167.1 |
|
||
Income tax (paid) received |
(41.4 |
) |
|
20.0 |
|
||
Interest expense, excluding interest amortization |
140.5 |
|
|
155.8 |
|
||
Interest paid |
(140.9 |
) |
|
(152.5 |
) |
||
Change in current assets and liabilities and other |
(87.8 |
) |
|
(106.2 |
) |
||
Net cash provided by (used in) operating activities |
828.0 |
|
|
1,297.8 |
|
||
Cash flows from investing activities: |
|
|
|
||||
Additions to properties |
(310.5 |
) |
|
(351.1 |
) |
||
Proceeds from sales of properties and other assets |
99.9 |
|
|
4.4 |
|
||
Other |
42.8 |
|
|
(50.5 |
) |
||
Net cash provided by (used in) investing activities |
(167.8 |
) |
|
(397.2 |
) |
||
Cash flows from financing activities: |
|
|
|
||||
Exercise of stock options under equity compensation plans |
1.4 |
|
|
6.3 |
|
||
Dividends paid |
(177.4 |
) |
|
(177.0 |
) |
||
Payments on debt and borrowings |
(1,070.8 |
) |
|
(2.4 |
) |
||
Net proceeds from (payments on) revolving credit facilities and commercial paper |
(1.9 |
) |
|
(376.1 |
) |
||
Change in overdraft balances and other |
12.8 |
|
|
24.5 |
|
||
Net cash provided by (used in) financing activities |
(1,235.9 |
) |
|
(524.7 |
) |
||
Cash and cash equivalents: |
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
(575.7 |
) |
|
375.9 |
|
||
Effect of foreign exchange rate changes on cash and cash equivalents |
8.0 |
|
|
(1.6 |
) |
||
Balance at beginning of year |
1,057.9 |
|
|
418.6 |
|
||
Balance at end of period |
$ |
490.2 |
|
|
$ |
792.9 |
|
|
|
|
|
Reconciliations to Nearest U.S. GAAP Measures by Line Item | ||||||||||||||||||
Second Quarter 2019 |
Three Months Ended June 30, 2019 |
|||||||||||||||||
(In millions, except per share data) (Unaudited) |
Cost of goods sold |
Marketing, |
Operating |
Other income |
Net income |
Net income |
||||||||||||
Reported (U.S. GAAP) |
$ |
(1,759.8 |
) |
$ |
(769.7 |
) |
$ |
468.7 |
|
$ |
(10.9 |
) |
$ |
329.4 |
|
$ |
1.52 |
|
Adjustments to arrive at underlying: |
|
|
|
|
|
|
||||||||||||
Special items, net |
|
|
|
|
|
|
||||||||||||
Employee-related charges |
|
|
|
|
2.6 |
|
|
|
2.6 |
|
0.01 |
|
||||||
Impairments or asset abandonment charges |
|
|
|
|
8.5 |
|
|
|
8.5 |
|
0.04 |
|
||||||
Termination fees and other (gains) losses |
|
|
|
|
(61.0 |
) |
|
|
(61.0 |
) |
(0.28 |
) |
||||||
Non-Core items |
|
|
|
|
|
|
||||||||||||
Integration related costs |
|
|
4.5 |
|
4.5 |
|
|
|
4.5 |
|
0.02 |
|
||||||
Unrealized mark-to-market (gains) losses |
31.2 |
|
|
|
31.2 |
|
|
|
31.2 |
|
0.14 |
|
||||||
Other non-core items |
|
|
|
|
|
|
15.0 |
|
15.0 |
|
0.07 |
|
||||||
Tax effects on special and non-GAAP items |
|
|
|
|
|
|
|
|
(0.6 |
) |
|
|
||||||
Underlying (Non-GAAP) |
$ |
(1,728.6 |
) |
$ |
(765.2 |
) |
$ |
454.5 |
|
$ |
4.1 |
|
$ |
329.6 |
|
$ |
1.52 |
|
|
|
|
|
|
|
|
YTD Second Quarter 2019 |
Six Months Ended June 30, 2019 |
|||||||||||||||||
(In millions, except per share data) (Unaudited)
|
Cost of goods sold |
Marketing, |
Operating |
Other income |
Net income |
Net income |
||||||||||||
Reported (U.S. GAAP) |
$ |
(3,172.8 |
) |
$ |
(1,424.9 |
) |
$ |
690.8 |
|
$ |
13.0 |
|
$ |
480.8 |
|
$ |
2.22 |
|
Adjustments to arrive at underlying: |
|
|
|
|
|
|
||||||||||||
Special items, net |
|
|
|
|
|
|
||||||||||||
Employee-related charges |
|
|
|
|
6.3 |
|
|
|
6.3 |
|
0.03 |
|
||||||
Impairments or asset abandonment charges |
|
|
|
|
17.5 |
|
|
|
17.5 |
|
0.08 |
|
||||||
Termination fees and other (gains) losses |
|
|
|
|
(60.7 |
) |
|
|
(60.7 |
) |
(0.28 |
) |
||||||
Non-Core items |
|
|
|
|
|
|
||||||||||||
Integration related costs |
1.7 |
|
11.9 |
|
13.6 |
|
|
|
13.6 |
|
0.05 |
|
||||||
Unrealized mark-to-market (gains) losses |
(2.9 |
) |
|
|
(2.9 |
) |
|
|
(2.9 |
) |
(0.01 |
) |
||||||
Other non-core items |
|
|
|
|
|
|
(9.4 |
) |
(9.4 |
) |
(0.04 |
) |
||||||
Tax effects on special and non-GAAP items |
|
|
|
|
|
|
|
|
(2.9 |
) |
(0.01 |
) |
||||||
Underlying (Non-GAAP) |
$ |
(3,174.0 |
) |
$ |
(1,413.0 |
) |
$ |
664.6 |
|
$ |
3.6 |
|
$ |
442.3 |
|
$ |
2.04 |
|
|
|
|
|
|
|
|
This 8-K Filing | Date | Other Filings | ||
---|---|---|---|---|
12/15/19 | ||||
10/29/19 | ||||
9/13/19 | 4, SC 13D/A | |||
9/4/19 | ||||
Filed on / For Period end: | 7/31/19 | 10-Q, 8-K | ||
6/30/19 | 10-Q, 4 | |||
12/31/18 | 10-K, 4 | |||
6/30/18 | 10-Q, 4 | |||
List all Filings |