Increased Full-Year 2015 Underlying Free Cash Flow Versus Prior
Guidance;
Preliminary Unaudited Selected Financial Data Include Fourth
Quarter Net Sales and
Underlying After-Tax Income Estimated Ranges
DENVER & MONTREAL--(BUSINESS WIRE)--Jan. 26, 2016--
Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today increased its
previously issued underlying free cash flow guidance for full year 2015
and provided preliminary unaudited selected financial results for the
fourth quarter of 2015.
While the Company's results for the fourth quarter and full year will
not be final until its planned earnings announcement on February 11,
2016, the following are preliminary estimates(1) for the
fourth quarter and full year ended December 31, 2015:
-
The Company is updating its previously issued underlying free cash
flow guidance for full year 2015 to a range of $690 million to $720
million. Previous guidance was for underlying free cash flow of $550
million to $605 million for the year. This increase in guidance is
primarily driven by better-than-expected fourth quarter 2015 working
capital changes, including lower cash taxes, as well as lower capital
expenditures and higher distributions from MillerCoors (driven by
favorable changes in working capital). (See reconciliation to the
nearest GAAP measure in Table 2 below.)
-
The Company estimates fourth quarter net sales to be approximately
$830 million to $860 million, down from a year ago, primarily due to
unfavorable foreign currency movements.
-
Non-GAAP underlying after-tax income and GAAP net income in the fourth
quarter were adversely affected by foreign currency movements,
increased brand investments, and the impact of the loss of our Modelo
brands and Heineken brewing contracts in the U.K. in 2015. These
factors were discussed in detail on the Company's third quarter 2015
earnings call on November 5, 2015.
-
On a non-GAAP basis, the Company expects underlying after-tax income
of approximately $85 million to $95 million, or $0.46 to $0.52 per
diluted share.
-
On a U.S. GAAP basis, the Company expects to report net income from
continuing operations attributable to MCBC of approximately $28
million to $38 million, or $0.15 to $0.21 per diluted share, for the
fourth quarter. This preliminary estimate is lower than estimated
fourth quarter underlying after-tax income due to special and other
non-core items. (See reconciliation to the nearest GAAP measure in
Table 1 below.)
Footnotes:
(1) Molson Coors Brewing Company ("MCBC") calculates non-GAAP
underlying after-tax income 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 underlying after-tax income and net cash
provided by operating activities for underlying free cash flow. For
further details regarding these adjustments, please see the section “Use
of Non-GAAP Measures,” 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 and full year comparative results
are for the Company’s fourth quarter and year ended December 31, 2015,
compared to the fourth quarter and year ended December 31, 2014. Some
numbers may not sum due to rounding.
Preliminary Unaudited Selected Financial Data
The Company has provided unaudited preliminary estimated ranges of net
sales, net income attributable to MCBC from continuing operations,
underlying after-tax income and underlying free cash flow because our
financial closing procedures for the fourth quarter and full year 2015
are not yet complete, and these estimates are subject to the completion
of our financial closing procedures, final adjustments and other
developments that may arise between now and the time the 2015 financial
results are finalized. The preliminary fourth quarter and full year 2015
estimates are based upon the most current information available to
management and assumptions we believe to be reasonable but include
information that is subject to further review, verification and
adjustment. It is possible that our final reported results may not be
within the ranges we currently estimate, and the difference may be
material.
Reconciliations to Nearest U.S. GAAP Measure
Molson
Coors Brewing Company and Subsidiaries
Table 1: Fourth
Quarter 2015 Underlying After-Tax Income Range
($ In
millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
|
Low
|
|
|
High
|
|
|
|
|
U.S. GAAP: Net income
attributable to MCBC from continuing operations
|
|
|
$
|
28
|
|
|
|
$
|
38
|
|
|
|
$
|
93.2
|
|
Per diluted share
|
|
|
$
|
0.15
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.50
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Net Non-GAAP Adjustments, net of tax(1)
|
|
|
57
|
|
|
|
57
|
|
|
|
8.9
|
|
Non-GAAP: Underlying
after-tax income
|
|
|
$
|
85
|
|
|
|
$
|
95
|
|
|
|
$
|
102.1
|
|
Per diluted share
|
|
|
$
|
0.46
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.55
|
|
(1)
|
|
Represents preliminary estimate for 2015 special items, net, 42% of
MillerCoors special items, net of tax, unrealized mark-to-market
impacts, acquisition and financing related costs associated with
pending acquisition of 58% of MillerCoors and the Miller global
brand portfolio, and related tax impacts.
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 2:
2015 Underlying Free Cash Flow Range
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
|
|
|
Low
|
|
High
|
|
|
|
|
U.S. GAAP:
|
Net Cash Provided by (Used In) Operating Activities
|
$
|
680
|
|
|
$
|
710
|
|
|
$
|
1,272.6
|
|
|
Less:
|
Additions to properties(1)
|
(275
|
)
|
|
(275
|
)
|
|
(259.5
|
)
|
|
Less:
|
Investment in MillerCoors(1)
|
(1,443
|
)
|
|
(1,443
|
)
|
|
(1,388.1
|
)
|
|
Add:
|
Return of capital from MillerCoors(1)
|
1,443
|
|
|
1,443
|
|
|
1,382.5
|
|
|
Add:
|
Net Other Non-GAAP Adjustments(2)
|
285
|
|
|
285
|
|
|
(50.8)
|
|
|
Non-GAAP:
|
Underlying Free Cash Flow
|
$
|
690
|
|
|
$
|
720
|
|
|
$
|
956.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Included in net cash used in investing activities.
|
|
|
|
|
|
(2)
|
|
Represents preliminary estimate for 2015 cash impact of special
items (primarily reflects termination fees received and paid, as
well as costs paid for brewery closures and restructuring
activities), cash paid for costs related to the pending acquisition
of 58% of MillerCoors and the Miller global brand portfolio,
discretionary contribution of $227.1 million to our U.K. pension
plan, net cash paid for settlements of interest rate swaps and cash
impact of MillerCoors special items and investments in businesses.
|
|
|
|
|
2015 Fourth Quarter and Full Year Earnings
Conference Call
Molson Coors Brewing Company plans to release its fourth quarter and
full year 2015 financial results on Thursday, February 11, 2016, and
will conduct an earnings conference call with financial analysts and
investors at 11:00 a.m. Eastern Time on that day to discuss these
results in detail. 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 on February 11, 2016. 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 May 2, 2016.
Overview of Molson Coors
Molson Coors Brewing Company is a leading global brewer delivering
extraordinary brands that delight the world's beer drinkers. It brews,
markets and sells a portfolio of leading premium 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. Molson Coors is constantly looking for ways to improve its Beer
Print. For more information on Molson Coors Brewing Company visit the
company's website, http://molsoncoors.com
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”), including in Risk Factors in the
prospectus for this offering and the filings incorporated by reference
therein. 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; our ability to obtain necessary regulatory approvals for
the acquisition of MillerCoors; 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 Annual Report on
Form 10-K for the year-ended December 31, 2014, which is incorporated by
reference therein. All forward-looking statements in this
presentation are expressly qualified by such cautionary statements and
by reference to the underlying assumptions. You should not place undue
reliance on forward-looking statements, which speak only as of the date
they are made. We do not undertake to update forward-looking
statements, whether as a result of new information, future events or
otherwise.
Use of Non-GAAP Measures
In addition to financial measures presented on the basis of accounting
principles generally accepted in the United States of America
("U.S. GAAP"), we also present after-tax "underlying income" 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. Our management uses underlying income and
underlying free cash flow as measures of operating performance to assist
in comparing performance from period to period on a consistent basis; as
a measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in communications
with the board of directors, stockholders, analysts and investors
concerning our financial performance; as useful comparisons to the
performance of our competitors; and as metrics of certain management
incentive compensation calculations. We believe that these non-GAAP
measures are useful to investors and other users of our financial
statements in evaluating our operating performance because they provide
an additional tool to evaluate our performance without regard to special
and non-core items, which can vary substantially from company to company
depending upon accounting methods and book value of assets and capital
structure. We have provided reconciliations of all non-GAAP measures to
their nearest U.S. GAAP measures and have consistently applied the
adjustments within our reconciliations in arriving at each non-GAAP
measure. These adjustments consist of special items from our U.S. GAAP
financial statements as well as other non-core items, such as
acquisition and integration related costs, unrealized mark-to-market
gains and losses, and gains and losses on sales of non-operating assets,
included in our U.S. GAAP results that warrant adjustment to arrive at
non-GAAP results. We consider these items to be necessary adjustments
for purposes of evaluating our ongoing business performance and are
often considered non-recurring. Such adjustments are subjective and
involve significant management judgment.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160126006572/en/
Source: Molson Coors Brewing Company
Molson Coors Brewing Company
News Media
Colin
Wheeler, 303-927-2443
or
Investor Relations
Dave
Dunnewald, 303-927-2334