Molson Coors Reports 2007 Third Quarter Results

November 06, 2007
U.S. business records strongest-ever third quarter
DENVER, COLORADO AND MONTREAL, QUEBEC, Nov 06, 2007 (MARKET WIRE via COMTEX News Network) -- Molson Coors Brewing Company (TSX: TAP.A)(TSX: TAP.B)(NYSE: TAP) today reported higher income and earnings per share from continuing operations on increased net sales for the Company's fiscal 2007 third quarter.

Key results for the Company's fiscal third quarter ended September 30, 2007, compared to the fiscal third quarter ended September 24, 2006, include the following:

- Net sales increased 6.9 percent to $1.69 billion.

- Sales volume declined 0.2 percent to 11.2 million barrels, or 13.2 million hectoliters (HLs), primarily due to weather-related decline in sales in the Company's U.K. business;

- Total Company sales to retail (STRs) rose 2.1 percent. U.S. STRs rose 6.4 percent, while Canada STRs were up 0.8 percent. U.K. STRs declined 6.9 percent.

- Cost of goods sold increased 8.8 percent to $987.3 million.

- Marketing, general and administrative expenses rose 6.2 percent to $461.1 million.

- Net income was $134.7 million

- Excluding special and other one-time items, income from continuing operations (after tax) was $173.2 million, or $0.95 per diluted share, a 29.0 percent increase compared to $134.3 million, or $0.77 per diluted share, in the third quarter 2006. (See "Special and Other One-Time Items" and "Discontinued Operations" below.)

All $ amounts in U.S. dollars. See tables below for reconciliations to nearest U.S. GAAP measures.

Leo Kiely, Molson Coors president and chief executive officer, said, "We are pleased with the solid progress that Molson Coors Brewing Company achieved in the third quarter, with strong growth in both net sales and profitability. We increased local currency net sales per barrel in all three of our businesses, and at the same time Coors Light grew more than 5 percent globally in the quarter. In our two largest markets, the U.S. and Canada, we continued to gain market share on the strength of our strategic brands. In the U.K, progress in reducing fixed overheads was offset by a charge to recognize increased liabilities for pension benefits, along with increased investments behind our core brands.

"In addition," continued Mr. Kiely, "we are very excited about our planned MillerCoors joint venture in the U.S. market, which we expect to generate substantial additional earnings and cash flow for Molson Coors Brewing Company over time, enabling us to compete even more effectively in an increasingly competitive global market. This joint venture represents a huge step forward in our quest to become a top-performing global brewer."

In the first nine months of fiscal 2007, Molson Coors' year-to-date incremental savings from merger synergies and next-generation cost savings programs totaled $109 million. Foreign exchange rate movements increased total-company pretax income by approximately $11 million in the third quarter 2007. The Company's effective tax rate during the third quarter was negative 4 percent, down from positive 31 percent a year ago. Excluding special and other one-time items, the Company's third quarter effective tax rate was 17 percent, down from 32 percent a year ago.

Following are the Company's 2007 third quarter results by business segment:

Canada Business

Canada business pretax income was $164.3 million, excluding special and other one-time items, an 8.0 percent increase compared to the third quarter 2006. This profit increase was driven primarily by favorable foreign exchange rates and lower general and administrative expenses.

Sales to retail increased 0.8 percent, driven by Molson's strategic brand growth at a mid-single-digit percentage rate, which outpaced industry growth of approximately 0.5 percent during the quarter. This performance includes high-single-digit growth by Coors Light and double-digit growth by Rickard's, Creemore, Carling, and partner import brands. Molson Canadian experienced a low-single-digit volume decline. Year-over-year market share increased slightly in the third quarter, representing the second consecutive quarter of share growth and Molson Canada's best year-to-date third quarter share performance in six years. Net sales declined 1 percent in local currency versus a year ago, driven by lower sales volume related to the timing of the Canada Day holiday in our fiscal calendar versus a year ago. Net revenue per barrel increased approximately 1 percent in local currency.

Cost of goods sold per barrel increased approximately 6 percent in local currency, driven by a shift in sales mix to higher-cost super premium and partner import brands, as well as the impact of spreading fixed costs over a smaller volume base. Synergies and other cost savings in the quarter largely offset input cost inflation. Marketing, general and administrative expenses decreased approximately 9 percent in local currency with reductions in both marketing and sales investments and general and administrative expense.

United States Business

U.S. business pretax income grew 8.4 percent to a third-quarter record $80.5 million compared to the third quarter 2006, excluding special items. The increase was driven by 3.4 percent growth in sales volume and higher net pricing, along with continued savings from cost-reduction initiatives. Net sales increased 6.1 percent versus a year ago.

U.S. business 50-states sales to retail increased 6.9 percent in the quarter, driven by mid-single-digit growth by Coors Light, strong double-digit growth by Blue Moon and low-double-digit growth by Keystone Light. Coors Banquet grew at a high-single-digit rate in the quarter. These results reflect the tenth consecutive quarter of growth for Coors Light and the second consecutive growth quarter for Coors Banquet. U.S volume to wholesalers grew 3.4 percent during the quarter due to strong sales-to-retail growth, partially offset by a difference in the year-over-year alignment of the Company's fiscal calendar.

During the quarter, the increase in the cost of goods per barrel was limited to 1.7 percent, as higher commodity, transportation and packaging material costs were largely offset by more than $13 million in cost savings initiatives, as well as lower depreciation expense. Marketing, general and administrative expense rose 6.5 percent in the third quarter, due primarily to increased incentive compensation expense and increased brand-building and sales investments.

Europe Business

Europe business pretax income was $23.7 million excluding special items, a decrease of 35.7 percent versus the third quarter of 2006. Lower income was primarily due to a charge of $11.1 million to recognize increased liability for pension benefit payments, composed of a $4.7 million charge in Europe cost of goods sold and $6.4 million in marketing, general and administrative expense. Excluding this charge, Europe pretax income without special items declined 5.5 percent, driven by volume reductions resulting from unusually cool, rainy weather and recently enacted smoking bans, along with increased brand investments.

Higher revenue per barrel and favorable foreign exchange rates partially offset the effects of poor weather, smoking bans and highly competitive market conditions during the quarter. The Europe business experienced its third straight quarter of growth in owned-brand net pricing, as prices increased nearly 4 percent during the third quarter.

Cost of goods sold for U.K. owned-brands increased by approximately 7 percent per barrel in local currency during the quarter, driven by the above-mentioned pension charge, negative fixed cost leverage over lower volumes, and inflation. Cost savings from supply chain cost initiatives partially offset the increase. Marketing, general and administrative costs in the U.K. increased by approximately 10 percent in local currency during the quarter, due to the pension charge mentioned above and increased marketing spending for the continuing roll-out of new ad campaigns for Carling and C2 and for the re-launch of Coors Light.

Corporate Expenses

The Company's Corporate general and administrative expenses totaled $26.8 million in the third quarter 2007, a slight decrease from a year ago, as lower legal and outside services costs were partially offset by expenses for high return projects. In the third quarter 2007, corporate net interest expense, excluding interest income from trade loans in the U.K., was $27.2 million; $4.1 million lower than a year ago. This reduction was driven by lower average net debt balances in 2007 and lower average interest rates due to the company's debt restructure, which was completed in July.

Special and Other One-time Items

During the third quarter 2007, the Company reported pretax special charges of $55.3 million, including a $43.2 million charge in Canada related to the closure of the Company's brewery in Edmonton, Alberta. Approximately $32.4 million of this charge is a non-cash write-down of the value of the brewery fixed assets to the estimated sale value. The balance is primarily related to termination benefits and other closure related costs. Pretax special charges of $2.8 million in the U.S. and $3.4 million in Europe were due to supply chain restructurings in each of these businesses. In addition, Europe recognized a special charge of $3.9 million related to the increased liabilities for pension benefits. Corporate special charges of $2.0 million in the quarter were related to the Company's proposed U.S. joint venture with Miller Brewing Company.

One-time items during the third quarter 2007 included $24.5 million of debt extinguishment costs in July to repurchase $625 million of the company's 6-3/8% Senior Notes due 2012. In addition, one-time tax benefits reduced the Company's reported tax expense by $13 million in the third quarter 2007. The non-recurring tax benefits were related to revaluation of the Company's deferred tax assets and liabilities for a 2 percentage-point reduction in the U.K. corporate income tax rate, and other changes in U.K. tax law.

In the third quarter of 2006, the Company reported a $9.0 million one-time benefit related to a reduction in its financial guarantee obligations to the Montreal Canadiens Hockey Club.

Discontinued Operations

The Company reports results for its former Brazilian unit, Cervejarias Kaiser ("Kaiser") as discontinued operations. The Company reported net loss of $0.4 million from discontinued operations during the quarter arising from a small increase in the indemnity liability estimates related to Kaiser.

2007 Third Quarter Earnings Conference Call

Molson Coors Brewing Company will conduct an earnings conference call with financial analysts and investors at noon Eastern Time today to discuss the Company's 2007 third quarter results. The Company will provide a live webcast of the earnings call. Approximately two hours after the conclusion of the earnings call, the Company also will host an online, real-time webcast of an Investor Relations Follow-up Session with financial analysts at 3:00 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 December 31, 2007.

Reconciliations to Nearest U.S. GAAP Measures

2007 Third Quarter After-tax Income From Continuing Operations,
Excluding Special and Other One-time Items
(Note: Some numbers may not sum due to rounding.)
(In millions of $US, except per
 share data)                                   3rd Q 2007       3rd Q 2006
--------------------------------------------------------------------------
U.S. GAAP:  After-tax income
 from continuing operations:                       $135.1           $122.4
 Per diluted share                                  $0.74            $0.70
Add back: Pretax special items - net                 55.3             28.5
Add back (minus): Other one-time items               24.5             (9.0)
Minus: Tax effect on special items and
 other one-time items                               (41.7)            (7.6)
Non-GAAP: After-tax income from continuing
 operations, excluding special and other
 one-time items:                                   $173.2           $134.3
 Per diluted share:                                 $0.95            $0.77
2007 Third Quarter Pretax Income From Continuing Operations,
Excluding Special and Other One-time Items
(Note: Some numbers may not sum due to rounding.)
(In millions of $US)                               Business          Total
--------------------------------------------------------------------------
                        Canada     U.S.  Europe   Corporate   Consolidated
--------------------------------------------------------------------------
U.S. GAAP:  2007 3rd Q
 pretax income (loss)
 from continuing
 operations - reported  $121.1   $77.7    $16.4      ($80.3)        $134.9
Add back: Pretax
 special
 items - net              43.2     2.8      7.3         2.0           55.3
Plus: Debt
 Extinguishment
 Costs                       -       -        -        24.5           24.5
Non-GAAP:  2007 3rd Q
 Pretax income (loss)
 from continuing
 operations, excluding
 special and other
 one-time items         $164.3   $80.5    $23.7      ($53.8)        $214.7
--------------------------------------------------------------------------
Percent change 2007
 3rd Q vs. 2006 3rd Q
 pretax from
 continuing operations,
 excluding
 special and other
 one-time items            8.0%    8.4%   -35.7%       -8.3%           5.0%
--------------------------------------------------------------------------
U.S. GAAP:  2006 3rd Q
 pretax income (loss)
 from continuing
 operations             $161.1   $48.8    $34.6      ($59.4)        $185.1
Plus: Pretax special
 items - net                 -    25.5      2.3         0.7           28.5
Minus: Guarantee
 re-evaluation
 related
 to the Montreal
 Canadians
 (other income)           (9.0)      -        -           -           (9.0)
Non-GAAP:  2006 3rd Q
 Pretax income (loss)
 from continuing
 operations,
 excluding special
 and
 other one-time items   $152.1   $74.3    $36.9      ($58.7)        $204.6
--------------------------------------------------------------------------

Pretax and After-tax Income (Loss) From Continuing Operations, Excluding Special and Other One-time Items should be viewed as a supplement to - not a substitute for - our results of operations presented on the basis of accounting principles generally accepted in the United States. We believe that Pretax and After-tax Income (Loss) From Continuing Operations, Excluding Special and Other One-time Items is used by and is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to evaluate our performance without regard to items such as special items, which can vary substantially from company to company depending upon accounting methods and book value of assets and capital structure. Our management uses Pretax and After-tax Income (Loss) From Continuing Operations, Excluding Special and Other One-time Items as a measure of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; and in communications with the board of directors, stockholders, analysts and investors concerning our financial performance.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the federal securities laws, and language indicating trends, such as "trend improvements," "progress," "anticipated," "expected," "improving sales trends" and "on track." It also includes financial information, of which, as of the date of this press release, the Company's independent auditors have not completed their review. Although the Company believes that the assumptions upon which the financial information and 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 projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. These factors include, among others, changes in consumer preferences and product trends; price discounting by major competitors; failure to complete, or to realize the anticipated cost savings and other benefits from our planned MillerCoors joint venture; failure to realize anticipated results from synergy initiatives; and increases in costs generally. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.

                  MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                    (UNAUDITED)
                        Thirteen Weeks Ended       Thirty-Nine Weeks Ended
                ----------------------------------------------------------
                 September 30,  September 24,  September 30,  September 24,
                         2007           2006           2007           2006
                ----------------------------------------------------------
Volume in
 barrels               11,217         11,243         31,595         31,286
                ----------------------------------------------------------
                ----------------------------------------------------------
Sales              $2,257,233     $2,126,652     $6,152,452     $5,800,645
Excise taxes         (571,825)      (549,828)    (1,562,166)    (1,486,950)
                ----------------------------------------------------------
 Net Sales          1,685,408      1,576,824      4,590,286      4,313,695
Cost of goods
 sold                (987,304)      (907,305)    (2,724,363)    (2,553,949)
                ----------------------------------------------------------
 Gross profit         698,104        669,519      1,865,923      1,759,746
Marketing,
 general and
 administrative
 expenses            (461,050)      (434,106)    (1,314,742)    (1,271,245)
Special items, net    (55,337)       (28,453)       (88,947)       (81,124)
                ----------------------------------------------------------
 Operating
  income              181,717        206,960        462,234        407,377
Interest
 expense, net         (24,229)       (28,268)       (75,514)       (97,117)
Debt
 extinguishment
 costs                (24,478)             -        (24,478)             -
Other income,
 net                    1,919          6,421         18,112          9,225
                ----------------------------------------------------------
 Income from
  continuing
  operations
  before
  income taxes
  and minority
  interests           134,929        185,113        380,354        319,485
Income tax
 benefit
 (expense)              5,692        (57,628)       (28,044)       (45,225)
                -----------------------------------------------------------
 Income from
 continuing
 operations
 before
 minority
 interests            140,621        127,485        352,310        274,260
Minority
 interests in
 net income of
 consolidated
 entities              (5,507)        (5,100)       (13,615)       (12,803)
                -----------------------------------------------------------
 Income from
  continuing
  operations          135,114        122,385        338,695        261,457
(Loss) gain
 from
 discontinued
 operations, net
 of tax                  (442)        13,409        (14,653)           327
                ----------------------------------------------------------
 Net income          $134,672       $135,794       $324,042       $261,784
                ----------------------------------------------------------
Basic income
 (loss) per share:
 From
  continuing
  operations            $0.75          $0.71          $1.90          $1.52
 From
  discontinued
  operations                -           0.08          (0.08)             -
                ----------------------------------------------------------
Basic net
 income per
 share                  $0.75          $0.79          $1.82          $1.52
                ----------------------------------------------------------
                ----------------------------------------------------------
Diluted income
 (loss) per
 share:
 From
  continuing
  operations            $0.74          $0.70          $1.87          $1.51
 From
  discontinued
  operations                -           0.08          (0.08)             -
                ----------------------------------------------------------
Diluted net
 income per
 share                  $0.74          $0.78          $1.79          $1.51
                ----------------------------------------------------------
                ----------------------------------------------------------
Weighted
 average shares
 - basic              179,426        172,320        178,170        171,866
Weighted
 average shares
 - diluted            181,707        173,566        180,783        172,992
Dividends per
 share                  $0.16          $0.16          $0.48          $0.48
                ----------------------------------------------------------
               MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
                     CANADA SEGMENT RESULTS OF OPERATIONS
                                  (IN THOUSANDS)
                                    (UNAUDITED)
                            Thirteen Weeks Ended   Thirty-Nine Weeks Ended
                      ----------------------------------------------------
                          September    September    September    September
                           30, 2007     24, 2006     30, 2007     24, 2006
                      ----------------------------------------------------
Volume in barrels             2,283        2,339        6,262        6,183
                      ----------------------------------------------------
                      ----------------------------------------------------
Sales                      $704,695     $673,630   $1,829,090   $1,747,418
Excise taxes               (158,549)    (158,634)    (410,555)    (406,819)
                      ----------------------------------------------------
 Net sales                  546,146      514,996    1,418,535    1,340,599
Cost of goods sold         (263,577)    (237,652)    (728,143)    (661,845)
                      ----------------------------------------------------
 Gross profit               282,569      277,344      690,392      678,754
Marketing, general
 and administrative
 expenses                  (119,636)    (122,223)    (336,426)    (336,637)
Special items, net          (43,243)           -      (71,453)           -
                      ----------------------------------------------------
 Operating income           119,690      155,121      282,513      342,117
Other income, net             1,374        5,941       18,540        7,744
                      ----------------------------------------------------
 Earnings before
  income taxes             $121,064     $161,062     $301,053     $349,861
                      ----------------------------------------------------
                      ----------------------------------------------------
                MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
                 UNITED STATES SEGMENT RESULTS OF OPERATIONS
                                  (IN THOUSANDS)
                                    (UNAUDITED)
                            Thirteen Weeks Ended   Thirty-Nine Weeks Ended
                      ----------------------------------------------------
                          September    September    September    September
                           30, 2007     24, 2006     30, 2007     24, 2006
                      ----------------------------------------------------
Volume in barrels             6,471        6,257       18,300       17,643
                      ----------------------------------------------------
                      ----------------------------------------------------
Sales                      $857,243     $809,833   $2,418,897   $2,285,209
Excise taxes               (117,596)    (112,448)    (330,404)    (314,771)
                      ----------------------------------------------------
 Net sales                  739,647      697,385    2,088,493    1,970,438
Cost of goods sold         (458,533)    (435,908)  (1,283,506)  (1,231,077)
                      ----------------------------------------------------
 Gross profit               281,114      261,477      804,987      739,361
Marketing, general
 and administrative
 expenses                  (200,686)    (188,419)    (582,138)    (560,939)
Special items, net           (2,768)     (25,506)      (2,768)     (73,652)
                      ----------------------------------------------------
 Operating income            77,660       47,552      220,081      104,770
Other income, net                81        1,231          979        3,135
                      ----------------------------------------------------
 Earnings before
  income taxes              $77,741      $48,783     $221,060     $107,905
                      ----------------------------------------------------
                      ----------------------------------------------------
                 MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
                      EUROPE SEGMENT RESULTS OF OPERATIONS
                                   (IN THOUSANDS)
                                     (UNAUDITED)
                            Thirteen Weeks Ended   Thirty-Nine Weeks Ended
                      ----------------------------------------------------
                          September    September    September    September
                           30, 2007     24, 2006     30, 2007     24, 2006
                      ----------------------------------------------------
Volume in barrels             2,463        2,647        7,033        7,460
                      ----------------------------------------------------
                      ----------------------------------------------------
Sales                      $693,648     $641,547   $1,900,335   $1,763,965
Excise taxes               (295,680)    (278,746)    (821,207)    (765,360)
                      ----------------------------------------------------
 Net sales                  397,968      362,801    1,079,128      998,605
Cost of goods sold         (263,904)    (233,533)    (710,961)    (659,635)
                      ----------------------------------------------------
 Gross profit               134,064      129,268      368,167      338,970
Marketing, general
 and administrative
 expenses                  (113,917)     (96,288)    (317,719)    (288,480)
Special items, net           (7,281)      (2,287)     (12,681)      (8,173)
                      ----------------------------------------------------
 Operating income            12,866       30,693       37,767       42,317
Interest income, net          2,926        2,941        8,628        8,630
Other income
 (expense), net                 672        1,006         (919)       1,466
                      ----------------------------------------------------
 Earnings before
  income taxes              $16,464      $34,640      $45,476      $52,413
                      ----------------------------------------------------
              MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
                        CORPORATE RESULTS OF OPERATIONS
                                  (IN THOUSANDS)
                                    (UNAUDITED)
                           Thirteen Weeks Ended    Thirty-Nine Weeks Ended
                       ----------------------------------------------------
                         September    September    September     September
                          30, 2007     24, 2006     30, 2007      24, 2006
                       ---------------------------------------------------
Net sales (1)               $1,647       $1,642       $4,130        $4,053
Cost of goods sold (1)      (1,290)        (212)      (1,753)       (1,392)
                       ---------------------------------------------------
 Gross profit                  357        1,430        2,377         2,661
General and
 administrative
 expenses                  (26,811)     (27,176)     (78,459)      (85,189)
Special items, net          (2,045)        (660)      (2,045)          701
                       ---------------------------------------------------
 Operating loss            (28,499)     (26,406)     (78,127)      (81,827)
Interest expense, net      (27,155)     (31,209)     (84,142)     (105,747)
Debt extinguishment
 costs                     (24,478)           -      (24,478)            -
Other expense, net            (208)      (1,757)        (488)       (3,120)
                       ---------------------------------------------------
 Loss before income
  taxes                   $(80,340)    $(59,372)   $(187,235)    $(190,694)
                       ---------------------------------------------------
                       ---------------------------------------------------
(1) The amounts shown are reflective of revenues and costs associated with
    the marketing of the Company's intellectual property, including
    trademarks and brands.
               MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (IN THOUSANDS)
                                (UNAUDITED)
                                                   Thirty-Nine
                                                   Weeks Ended
                                  ----------------------------------------
                                            September 30, 2007   September
                                                                  24, 2006
                                  ----------------------------------------
Cash flows from operating
 activities:
Net income                                            $324,042    $261,784
 Adjustments to reconcile net income to net cash
  provided by
  operating activities:
 Depreciation and amortization                         254,896     338,456
 Change in working capital and
  other, net                                          (250,326)     86,506
                                  ----------------------------------------
Net cash provided by operating
 activities                                            328,612     686,746
                                  ----------------------------------------
Cash flows from investing
 activities:
 Additions to properties and
  intangible assets                                   (329,409)   (314,872)
 Proceeds from sale of assets and
  business, net                                         35,615     126,178
 Other, net                                            (24,412)       (777)
                                  ----------------------------------------
Net cash used in investing
 activities                                           (318,206)   (189,471)
                                  ----------------------------------------
Cash flows from financing
 activities:
 Issuance of stock under equity
  compensation plans                                   179,345      40,509
 Dividends paid                                        (99,100)    (94,717)
 Net proceeds from (payments on) debt                  (25,390)   (286,112)
 Other, net                                            (26,000)    (25,192)
                                  ----------------------------------------
Net cash provided by (used in)
 financing activities                                   28,855    (365,512)
                                  ----------------------------------------
Cash and cash equivalents:
 Net increase in cash and cash equivalents              39,261     131,763
 Effect of foreign exchange rate changes
  on cash and cash equivalents                           9,887       7,961
 Balance at beginning of year                          182,186      39,413
                                  ----------------------------------------
Balance at end of period                              $231,334    $179,137
                                  ----------------------------------------
                                  ----------------------------------------
               MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (IN THOUSANDS)
                                 (UNAUDITED)
                                                    As of
                               --------------------------------------------
                                       September 30, 2007 December 31, 2006
                               --------------------------------------------
Assets
Cash and cash equivalents                        $231,334          $182,186
Receivables, net                                  841,719           828,599
Total inventories, net                            381,270           319,538
Other, net                                        115,883           128,033
                               --------------------------------------------
 Total current assets                           1,570,206         1,458,356
Properties, net                                 2,679,775         2,421,484
Goodwill and intangibles
 assets, net                                    8,367,641         7,363,970
Other                                             523,636           359,603
                               --------------------------------------------
 Total assets                                 $13,141,258       $11,603,413
                               --------------------------------------------
                               --------------------------------------------
Liabilities and stockholders' equity
Accounts payable                                 $315,771          $419,650
Accrued expenses and other                      1,207,079         1,376,025
Short-term borrowing and current portion of
 long-term debt                                    37,978             4,441
                                               ----------------------------
 Total current liabilities                      1,560,828         1,800,116
Long-term debt                                  2,246,130         2,129,845
Pension and post-retirement benefits              712,460           753,697
Other                                           1,646,722         1,055,617
                               --------------------------------------------
 Total liabilities                              6,166,140         5,739,275
Minority interests                                 45,861            46,782
Total stockholders' equity                      6,929,257         5,817,356
                               --------------------------------------------
 Total liabilities and
  stockholders' equity                        $13,141,258       $11,603,413
                               --------------------------------------------
                               --------------------------------------------

Contacts:
News Media:
Paul de la Plante
514-590-6349

Investor Relations
Dave Dunnewald
303-279-6565

SOURCE: Molson Coors Brewing Company