First Quarter 2017 Highlights (versus First
Quarter 2016 Pro Forma Results) (1)(2)
-
Worldwide brand volume: 19.706 million hectoliters, increased
2.1%
-
Global priority brand(3) volume increased 6.6%
-
Net sales: $2.4 billion, decreased 0.5%, and increased 1.0% in
constant currency
-
Net sales per HL: $111.93, increased 2.4%, and increased 3.9%
in constant currency
-
U.S. GAAP net income from continuing operations
attributable to MCBC: $201.9 million ($0.93 per diluted share),
compared to pro forma net income of $257.4 million a year ago
-
Underlying after-tax income: $165.6 million ($0.76 per diluted
share), decreased 12.1%
-
Underlying EBITDA (earnings before interest, taxes,
depreciation and amortization): $514.9 million, decreased 3.6%, and
was unchanged in constant currency
-
Cash tax benefits resulting from the MillerCoors acquisition
were $97.0 million for the first quarter, and transaction-related amortization
was $11.2 million, net of tax. For the full year 2017, we now
expect transaction-related cash tax benefits of nearly $390 million
and transaction-related amortization of approximately $45 million, net
of tax.
DENVER & MONTREAL--(BUSINESS WIRE)--
Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported U.S.
GAAP net income from continuing operations attributable to MCBC of
$201.9 million for the first quarter, down from pro forma net income of
$257.4 million a year ago. This decrease was driven by lower net special
and other non-core items this year, along with lower U.S. volume, mix
shift to higher-cost products, higher brand amortization expense and
higher corporate costs. The Company also reported a 12.1 percent
decrease in underlying after-tax income for the first quarter of 2017,
driven by lower income in the U.S. and Canada, as well as higher brand
amortization expense and corporate costs.
Molson Coors president and chief executive officer Mark Hunter said,
"With the completion of the MillerCoors transaction late last year and
the changes we are making to align and enhance our organization, 2017
will be a transition year as we build a larger, stronger First
Choice-focused company. Consistent with this, our results today reflect
increased investments in the building blocks that will drive top-line
growth, cost savings, profit growth, cash generation, debt pay-down, and
total shareholder returns in the years ahead."
Mark added, "First quarter underlying earnings were lower than last
year, primarily due to higher brand amortization expense and weaker
January and February volumes in the U.S. this year-- and because we were
cycling strong earnings comparatives from last year. First quarter
underlying after-tax income in 2016 increased more than 35 percent
compared to 2015 on a pro forma basis, partially due to the benefit of
inventory dynamics and the timing of the Easter holiday. We have also
made incremental investments this year to strengthen our global business
and capabilities. Despite the softer start to this year, volume trends
have improved since January and February, we are making great progress
with our First Choice agenda in each of our businesses, and we are
confident of delivering our full-year business plans."
Operating and Underlying Free Cash Flow
U.S. GAAP net cash used in operating activities for the first
quarter was $118.3 million, which represents an increase in cash
used of $30.0 million from prior year, driven by higher cash paid for
interest and higher pension contributions, partially offset by lower
cash tax payments.
Underlying free cash flow for the first quarter was a cash use of
$221.3 million. This represents an increase in cash used of $19.9
million from the prior year, driven by higher interest payments,
partially offset by lower cash tax payments and the addition of the
other 58 percent of MillerCoors cash flows.
Underlying EBITDA (versus First Quarter
2016 Pro Forma Results)(1)
Underlying EBITDA was $514.9 million for the first quarter, a 3.6
percent decrease from a year ago. The decline was driven by higher
corporate costs, declines from Canada and MillerCoors and negative
foreign currency movements during the quarter, partially offset by
growth in Europe. Underlying EBITDA on a constant-currency basis was
unchanged from a year ago.
Foreign Exchange
The Company’s consolidated pro forma underlying EBITDA for the first
quarter includes the negative effect of foreign currency movements
totaling $19.1 million. Negative currency impacts of $12.6 million in
Europe, $7.8 million in Corporate and $0.4 million in MillerCoors were
partially offset by positive currency impacts of $1.4 million in Canada
and $0.3 million in International.
Worldwide Brand and Financial Volume
(versus First Quarter 2016 Pro Forma Results)(1)
Worldwide brand volume of 19.7 million hectoliters in the first
quarter increased 2.1 percent versus the prior year. Financial volume of
21.9 million hectoliters in the first quarter decreased 2.8 percent
versus the prior year.
As previously disclosed in our fourth quarter 2016 earnings release,
financial volume now includes contract brewing and wholesaler non-owned
brand volumes. The financial impact of these volumes has always been
included in our results, and now we are also including the volume impact
of these sales.
Worldwide brand volume excludes contract brewing and wholesaler
non-owned brand volumes, and it includes royalty volumes. We also
modified our worldwide brand volume definition to include an adjustment
from Sales-to-Wholesaler (STW) volume to Sales-to-Retailer (STR) volume.
We believe the STR metric is important because, unlike STWs, it provides
the closest indication of the performance of our brands in relation to
market and competitor sales trends. Prior periods presented have been
revised to reflect these changes. We believe this definition of
worldwide brand volume more closely aligns with how we measure the
performance of our owned brands within the markets in which they are
sold.
Effective January 1, 2017, European markets, including Sweden, Spain,
Germany, Ukraine and Russia, which were previously reported under our
MCI segment, are now presented within our Europe segment. Additionally,
effective January 1, 2017, the results of the MillerCoors Puerto Rico
business, which were previously reported as part of the U.S. segment,
are now reported within the MCI segment.
Effective Income Tax Rates (versus First
Quarter 2016 Pro Forma Results)
The Company’s first quarter effective income tax rate was 23.7
percent on a reported basis and 23.4 percent on an underlying basis. The
Company’s prior year pro forma first quarter effective income tax rate
was 22.5 percent on a reported basis and 27.0 percent on an underlying
basis. The effective tax rate on a reported basis was slightly
higher this year due to the favorable tax treatment associated with the
sale of our Vancouver brewery in 2016. The underlying effective tax
rate was lower than the prior year due to geographic mix of income
and higher discrete benefits in 2017.
Debt
Total debt at the end of the first quarter was $12.286 billion,
and cash and cash equivalents totaled $395 million, resulting in net
debt of $11.891 billion.
Business Segment Results
The following are the Company’s first quarter 2017 results by business
segment:
United States Business (MillerCoors) (versus
First Quarter 2016 Pro Forma Results) (1)
U.S. domestic sales-to-retailers volume (STRs) declined 2.0 percent for
the quarter, driven by lower volume in the Premium Light and Below
Premium segments. Domestic sales-to-wholesalers volume (STWs) decreased
4.0 percent for the quarter. Domestic net revenue per hectoliter, which
excludes contract brewing and company-owned-distributor sales, grew 0.2
percent for the quarter as a result of favorable net pricing, partially
offset by negative sales mix.
Cost of goods sold (COGS) per hectoliter increased 1.7 percent for the
quarter, driven by higher input costs and volume deleverage, partially
offset by supply chain cost savings. Marketing, general and
administrative (MG&A) expense decreased 3.7 percent due to lower brand
investments and lower employee-related expenses.
On a U.S. GAAP basis, MillerCoors income from continuing operations
before income tax was $315.6 million for the first quarter. The 3.4
percent increase versus the same period in the prior year was primarily
due to lower special charges related to the Eden, North Carolina,
brewery closure; lower MG&A expenses; and net pricing growth, partially
offset by lower volume and higher COGS per hectoliter.
MillerCoors underlying EBITDA for the first quarter decreased 3.7
percent to $441.9 million, versus the same period in the prior year,
driven by lower volume and higher COGS per hectoliter, partially offset
by lower MG&A expenses and net pricing growth.
Canada Business
Canada brand volume increased 0.7 percent in the first quarter, driven
primarily by the addition of the Miller brands, as well as growth in
Coors Banquet. Canada financial volume, which includes contract brewing
volume, increased 1.1 percent and benefited from the timing of customer
inventories. Net sales per hectoliter increased 3.9 percent in local
currency, due primarily to positive pricing and brand mix, including
growth in our import brands.
COGS per hectoliter increased 10.7 percent in local currency due to mix
shift to higher-cost import brands, input cost inflation, unfavorable
foreign currency movements, and cycling a temporary reduction in
distribution costs last year, partially offset by ongoing cost savings
initiatives. MG&A expense increased 21.2 percent in local currency,
driven by higher brand amortization expense and commercial investments.
Canada reported income from continuing operations before income
taxes of $23.1 million, compared to $146.6 million in the prior year,
which was primarily driven by the gain on the sale of our Vancouver
brewery last year.
Canada underlying EBITDA decreased 25.0 percent to $42.9 million
in the quarter, primarily due to higher cost of goods sold and
commercial investments this year, partially offset by positive pricing
and mix. Foreign currency movements positively affected underlying
EBITDA by $1.4 million.
Europe Business
Europe brand volume increased 9.6 percent in the first quarter versus a
year ago, primarily driven by the transfer of royalty and export brand
volume across Europe from our International business and the addition of
the Miller brands, along with strong growth from Coors Light and
Staropramen. These positive factors more than offset the impact of the
later timing of the Easter holiday this year. Europe financial volume,
which includes contract brewing and factored brands but excludes royalty
volume, increased 2.3 percent. Europe net sales per hectoliter increased
16.3% percent in local currency, due to the release of a previously
recorded indirect tax provision of approximately $50 million after a
favorable ruling by a local jurisdictional court. The increase was also
driven by positive mix, which more than offset negative net pricing.
COGS per hectoliter increased 1.7 percent in local currency, driven by
mix shift to higher-cost brands and geographies, partially offset by
higher net pension benefit this year. MG&A expense increased 14.1
percent in local currency, due to an approximate $11 million estimated
bad debt provision established related to a customer in Croatia, higher
brand investments and the addition of the Miller brand portfolio.
Europe reported income from continuing operations before income
taxes of $30.6 million, compared to a loss of $1.2 million in the prior
year due to the release of the indirect tax provision.
Europe underlying EBITDA increased 78.7 percent to $74.0 million,
due to the release of the indirect tax provision, higher volumes and
increased net pension benefit. These positive factors were partially
offset by an estimated bad debt provision established related to a
customer in Croatia, along with higher brand investments, the timing of
the Easter holiday, and unfavorable foreign currency movements.
Underlying EBITDA was negatively impacted by $12.6 million in foreign
currency movements.
International Business
Total International brand volume increased by 65.2 percent in the first
quarter, driven by the transfer of the Puerto Rico business from
MillerCoors, the addition of the Miller global brands, and Coors Light
growth, primarily in Latin America. These factors were partially offset
by the transfer of royalty and export brand volume to Europe. Net sales
per hectoliter increased 15.2 percent, driven by sales mix changes and
higher pricing.
COGS per hectoliter increased 9.4 percent, due to sales mix changes.
International MG&A expense increased 65.4 percent, driven by increased
brand investments, along with overhead and integration costs related to
the acquisition of the Miller global brands.
The International segment reported income from continuing operations
before income taxes of $1.5 million versus a loss from continuing
operations before income taxes of $2.3 million a year ago, driven by the
transfer of the Puerto Rico business and the addition of the Miller
global brands.
International underlying EBITDA was $5.0 million in the
first quarter, versus a loss of $1.4 million a year ago, driven by
higher volume associated the transfer of the Puerto Rico business and
the addition of Miller global brands, along with positive pricing in
Latin America. Foreign currency movements positively impacted underlying
EBITDA by $0.3 million in the first quarter.
Corporate
Corporate pretax loss on a reported basis was $97.8 million in
the first quarter, 6.7 percent lower than the prior year, primarily due
to unrealized mark-to-market gains from commodity hedges this year,
which more than offset increased interest expense and marketing general
and administrative expense.
Underlying Corporate EBITDA was a loss of $48.9 million for the
first quarter versus a $24.7 million loss in the prior year, driven
primarily by higher interest expense and a foreign currency hedge loss
of $8.3 million related to our first quarter debt issuance, as well as
global investments in commercial, supply chain and information
technology, as we build a larger, stronger company.
Special and Other Non-Core Items(4)
The following special and other non-core items have been excluded
from underlying results.
During the first quarter, Molson Coors recognized a net special
charge of $3.8 million, primarily driven by asset abandonment costs
of $2.6 million in Europe related to the planned closure of our Burton
South brewery, $2.0 million in the U.S. related to the Eden brewery
closure and $1.2 million in Canada related to the planned closure of our
Vancouver brewery. These factors were partially offset by a $2.9 million
Other Postretirement Benefits curtailment gain recorded within the
Canada segment.
Additionally, during the first quarter we recorded other non-core net
gains of $52.2 million, primarily driven by unrealized
mark-to-market gains on commodity hedges during the quarter, as well as
a purchase-price-adjustment gain related to the historical sale of
Molson Inc.’s ownership interest in the Montreal Canadiens.
2017 First Quarter Conference Call
Molson Coors Brewing Company will conduct an earnings conference call
with financial analysts and investors at 11:00 a.m. Eastern Time today
to discuss the Company’s 2017 first quarter results. The Company will
provide a live webcast of the earnings call.
The Company will also host an online, real-time webcast of an Investor
Relations Follow-up Session with financial analysts and institutional
investors at 1:00 p.m. Eastern Time. Both webcasts will be accessible
via the Company’s website, www.molsoncoors.com. Online replays of the
webcasts will be available until 11:59 p.m. Eastern Time on August 1,
2017. The Company will post this release and related financial
statements on its website today.
Upcoming Investor Webcasts
The Company will host online, real-time webcasts in May and June at the
following events:
The Company will host its Annual Meeting of Stockholders on Wednesday,
May 17, 2017, at 11:00 a.m. Eastern Time. The meeting will take place at
the Molson Coors Montreal Brewery.
The Company will host a presentation to institutional investors and
financial analysts in New York on Wednesday, June 7, 2017. The
presentation is scheduled for 1:30 p.m. to 3:15 p.m. Eastern Time.
Live webcasts of both investor events will be accessible via the Molson
Coors Brewing Company website, www.molsoncoors.com, on the Investors
page. Online replays of the presentation webcasts will be available
within two hours after the presentations.
Footnotes:
(1) Comparable 2016 figures have been prepared on a pro
formas basis. Our U.S. segment pro forma information has been updated
from the version previously provided on February 14, 2017, to reflect
the removal of the Puerto Rico business effective as of January 1, 2017,
from the results of the MillerCoors business, which were previously
reported as part of the U.S. segment, and are now reported within the
MCI segment. There have been no changes to our consolidated pro forma
financial information from what was provided on February 14, 2017.
Additionally, we have adjusted our reported brand volumes to reflect
this change in Puerto Rico business reporting and to align our global
volume reporting.
We have presented consolidated and U.S. segment pro forma information to
enhance comparability of financial information between periods. Canada,
Europe, International and Corporate results are not presented on a pro
forma basis. The pro forma financial information is based on the
historical consolidated financial statements of MCBC and MillerCoors,
both prepared in accordance with U.S. GAAP, and gives effect to the
acquisition of the remaining 58 percent interest of MillerCoors and the
completed financing as if they were completed on January 1, 2016. Pro
forma adjustments are based on items that are factually supportable, are
directly attributable to the acquisition or the related completed
financing, and are expected to have a continuing impact on MCBC's
results of operations and/or financial position. Any nonrecurring items
directly attributable to the acquisition or the related completed
financing are excluded in the pro forma statements of operations. Pro
forma information does not include adjustments for costs related to
integration activities following the completion of the acquisition,
synergies or other cost savings that have been or may be achieved by the
combined businesses. The pro forma information is unaudited, based on
significant estimates and continues to be subject to significant change
throughout the one-year post-acquisition measurement period, as we have
referenced in our previous disclosures. The pro forma information is
presented for illustrative purposes only and does not necessarily
reflect the results of operations of MCBC that actually would have
resulted, had the acquisition occurred at the date indicated, nor does
this information project the results of operations of MCBC for any
future dates or periods.
(2) The Company calculates non-GAAP underlying pretax and
after-tax income, underlying effective tax rate, underlying EBITDA and
underlying free cash flow results by excluding special and other
non-core items from the nearest U.S. GAAP performance measure, which is
net income from continuing operations attributable to MCBC for both
underlying after-tax income and underlying EBITDA and net cash provided
by operating activities for underlying free cash flow. In addition,
constant-currency results exclude the impact of foreign currency
movements. For further details regarding these adjustments, please see
the section “Special and Other Non-Core Items,” along with tables for
reconciliations to the nearest U.S. GAAP measures. Unless otherwise
indicated, all $ amounts are in U.S. Dollars, and all quarterly
comparative results are for the Company’s first quarter ended March 31,
2017, compared to the first quarter ended March 31, 2016. Additionally,
all per-hectoliter calculations include contract brewing and non-owned
factored beverage volume in the denominator, as well as the financial
impact of these sales in the numerator, unless otherwise indicated. Some
numbers may not sum due to rounding.
(3) Our global priority brands include Coors Light, Coors
Banquet, Miller Lite, MGD, Staropramen and Blue Moon Belgian White.
(4) See tables 1 and 2 for the impact of special and other
non-core items.
Overview of Molson Coors
With a story that starts in 1774, Molson Coors has spent centuries
defining brewing greatness. As the third largest global brewer, Molson
Coors works to deliver extraordinary brands that delight the world’s
beer drinkers. From Coors Light, Miller Lite, Carling, Staropramen and
Sharp’s Doom Bar to Leinenkugel’s Summer Shandy, Blue Moon Belgian
White, Creemore Springs Premium Lager and Smith & Forge Hard Cider,
Molson Coors offers a beer for every beer lover.
Molson Coors operates through Molson Coors Canada, MillerCoors, 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 corporate responsibility and accountability right from the start.
It has been listed on the Dow Jones Sustainability World Index for the
past five years. 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 MCBC’s annual proxy
statement and Form 10-K filings with the U.S. Securities and Exchange
Commission. The trustee holder of the special Class A voting stock and
the special Class B voting stock has the right to cast a number of votes
equal to the number of then outstanding Class A exchangeable shares and
Class B exchangeable shares, respectively.
Forward-Looking Statements
This press release includes estimates or projections that constitute
“forward-looking statements” within the meaning of the U.S. federal
securities laws. Generally, the words “believe,” “expect,”
“intend,” “anticipate,” “project,” “will,” and similar expressions
identify forward-looking statements, which generally are not historic in
nature. Although the Company believes that the assumptions upon
which its forward-looking statements are based are reasonable, it can
give no assurance that these assumptions will prove to be correct.
Important factors that could cause actual results to differ materially
from the Company’s historical experience, and present projections and
expectations are disclosed in the Company’s filings with the Securities
and Exchange Commission (“SEC”). These factors include, among
others, our ability to successfully integrate the acquisition of
MillerCoors; our ability to achieve expected tax benefits, accretion and
cost savings and synergies; impact of increased competition resulting
from further consolidation of brewers, competitive pricing and product
pressures; health of the beer industry and our brands in our markets;
economic conditions in our markets; additional impairment charges; our
ability to maintain manufacturer/distribution agreements; changes in our
supply chain system; availability or increase in the cost of packaging
materials; success of our joint ventures; risks relating to operations
in developing and emerging markets; changes in legal and regulatory
requirements, including the regulation of distribution systems;
fluctuations in foreign currency exchange rates; increase in the cost of
commodities used in the business; the impact of climate change and the
availability and quality of water; loss or closure of a major brewery or
other key facility; our ability to implement our strategic initiatives,
including executing and realizing cost savings; our ability to
successfully integrate newly acquired businesses; pension plan 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. All
forward-looking statements in this press release are expressly qualified
by such cautionary statements and by reference to the underlying
assumptions. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. We do
not undertake to update forward-looking statements, whether as a result
of new information, future events or otherwise.
Use of Non-GAAP Measures
In addition to financial measures presented on the basis of accounting
principles generally accepted in the U.S. ("U.S. GAAP"), we also present
pretax and after-tax "underlying income," "underlying income per diluted
share," "underlying effective tax rate," and "underlying free cash
flow," which are non-GAAP measures and should be viewed as supplements
to (not substitutes for) our results of operations presented under
U.S. GAAP. We also present underlying earnings before interest, taxes,
depreciation, and amortization ("underlying EBITDA") as a non-GAAP
measure. Our management uses underlying income, underlying income per
diluted share, underlying EBITDA, and underlying effective tax rate as
measures of operating performance, as well as underlying free cash flow
in the measure of cash generated from core operations, to assist in
comparing performance from period to period on a consistent basis; as a
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in communications
with the board of directors, stockholders, analysts and investors
concerning our financial performance; as useful comparisons to the
performance of our competitors; and as metrics of certain management
incentive compensation calculations. We believe that underlying income,
underlying income per diluted share, underlying EBITDA, and underlying
effective tax rate performance are used by, and are useful to, investors
and other users of our financial statements in evaluating our operating
performance, as well as underlying free cash flow in evaluating our
generation of cash from core operations, because they provide an
additional tool to evaluate our performance without regard to special
and non-core items, which can vary substantially from company to company
depending upon accounting methods and book value of assets and capital
structure. In addition to the reasons discussed above, we consider
underlying free cash flow an important measure of our ability to
generate cash, grow our business and enhance shareholder value, driven
by core operations and after adjusting for non-core items. For
discussion and analysis of our liquidity, see the consolidated
statements of cash flows and the Liquidity and Capital Resources section
of our Management’s Discussion and Analysis of Financial Condition and
Results of Operations in our latest Form 10-K and 10-Q filings with the
SEC. We have provided reconciliations of all non-GAAP measures to their
nearest U.S. GAAP measure and have consistently applied the adjustments
within our reconciliations in arriving at each non-GAAP measure. These
adjustments consist of special items from our U.S. GAAP financial
statements as well as other non-core items, such as acquisition and
integration related costs, unrealized mark-to-market gains and losses,
and gains and losses on sales of non-operating assets, included in our
U.S. GAAP results that warrant adjustment to arrive at non-GAAP results.
We consider these items to be necessary adjustments for purposes of
evaluating our ongoing business performance and are often considered
non-recurring. Such adjustments are subjective and involve significant
management judgment.
|
|
|
|
|
|
Reconciliations to Nearest U.S. GAAP
Measure
Molson Coors Brewing Company and
Subsidiaries
Table 1: First Quarter Actual and Pro Forma
Underlying After-Tax Income
($ In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
|
March 31, 2016
|
|
|
|
March 31, 2016
|
|
|
|
|
Actual
|
|
|
|
Pro Forma(1)
|
|
|
|
Actual
|
|
U.S. GAAP: Net income
(loss) attributable to MCBC from continuing operations
|
|
|
$
|
201.9
|
|
|
|
|
$
|
257.4
|
|
|
|
|
$
|
163.2
|
|
|
Per diluted share
|
|
|
$
|
0.93
|
|
|
|
|
$
|
1.19
|
|
|
|
|
$
|
0.80
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, net(2)
|
|
|
3.8
|
|
|
|
|
(71.7
|
)
|
|
|
|
(108.6
|
)
|
|
42% of MillerCoors special items, net of tax(3)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
15.5
|
|
|
Acquisition and integration related costs(4)
|
|
|
19.0
|
|
|
|
|
—
|
|
|
|
|
53.7
|
|
|
Unrealized mark-to-market (gains) and losses(5)
|
|
|
(63.1
|
)
|
|
|
|
(2.3
|
)
|
|
|
|
(2.3
|
)
|
|
Other non-core items(6)
|
|
|
(8.1
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Tax effects on special and non-GAAP items(7)
|
|
|
12.1
|
|
|
|
|
4.9
|
|
|
|
|
(7.4
|
)
|
|
Non-GAAP: Underlying
after-tax income
|
|
|
$
|
165.6
|
|
|
|
|
$
|
188.3
|
|
|
|
|
$
|
114.1
|
|
|
Per diluted share
|
|
|
$
|
0.76
|
|
|
|
|
$
|
0.87
|
|
|
|
|
$
|
0.56
|
|
|
(1)
|
|
We have presented pro forma information to enhance comparability of
financial information between periods. The pro forma financial
information is based on the historical consolidated financial
statements of MCBC and MillerCoors, both prepared in accordance with
U.S. GAAP, and gives effect to the acquisition and the completed
financing as if they were completed on January 1, 2016. Pro forma
adjustments are based on items that are factually supportable, are
directly attributable to the acquisition or the related completed
financing, and are expected to have a continuing impact on MCBC's
results of operations and/or financial position. Any nonrecurring
items directly attributable to the Acquisition or the related
completed financing are excluded in the pro forma statement of
operations. Pro forma information does not include adjustments for
costs related to integration activities following the completion of
the Acquisition, cost savings or synergies that have been or may be
achieved by the combined businesses. The pro forma information is
unaudited, based on significant estimates and continues to be
subject to significant change throughout the one-year
post-acquisition measurement period, as we have referenced in our
previous disclosures. The following unaudited pro forma information
does not reflect the impact of the acquisition of the Miller global
brand portfolio and other assets primarily related to the "Miller
International Business" as defined in the purchase agreement, as we
are not able to estimate the historical results of operations from
this business and have concluded, based on the limited information
available to MCBC, that it is insignificant to the overall
Acquisition. The pro forma information is presented for illustrative
purposes only and does not necessarily reflect the results of
operations of MCBC that actually would have resulted had the
Acquisition occurred at the date indicated, or project the results
of operations of MCBC for any future dates or periods.
|
|
|
|
|
|
(2)
|
|
Special items, net for the three months ended March 31, 2017,
includes accelerated depreciation expense of $3.4 million related to
the planned closures of our Vancouver brewery in Canada and Burton
South brewery in the U.K. Special items for the three months ended
March 31, 2016, includes accelerated depreciation expense of $3.0
million related to the planned closures of our Vancouver brewery in
Canada and Burton South brewery in the U.K. These accelerated
depreciation charges are included in our adjustments to arrive at
underlying EBITDA in table 2 below. See Part I—Item 1. Financial
Statements, Note 6, "Special Items" of the Form 10-Q for detailed
discussion of special items, on an actual basis.
|
|
|
|
|
|
(3)
|
|
We recorded our 42% share of MillerCoors special charges on a
reported basis for the three months ended March 31, 2016, and
MillerCoors recorded special charges related to the closure of the
Eden brewery, including $35.9 million of accelerated depreciation in
excess of normal depreciation associated with the brewery. The tax
effect related to our share of MillerCoors special items in 2016 was
immaterial.
|
|
|
|
|
|
(4)
|
|
For the three months ended March 31, 2017, we have recorded charges
of $0.7 million of transaction-related costs within cost of goods
sold and $18.3 million of transaction-related costs recorded within
marketing, general & administrative expenses.
|
|
|
|
|
|
(5)
|
|
The unrealized changes in fair value on our commodity swaps, which
are economic hedges, are recorded as cost of goods sold within our
Corporate business activities. As the exposure we are managing is
realized, we reclassify the gain or loss to the segment in which the
underlying exposure resides, allowing our segments to realize the
economic effects of the derivative without the resulting unrealized
mark-to-market volatility. The amounts included for the three months
ended March 31, 2017, and March 31, 2016, include the unrealized
mark-to-market on these commodity swaps.
|
|
|
|
|
|
(6)
|
|
A gain of $8.1 million was recorded in other income (expense), net
resulting from a purchase price adjustment related to the historical
sale of Molson Inc.’s ownership interest in the Montreal Canadiens.
|
|
|
|
|
|
(7)
|
|
The effect of taxes on the adjustments used to arrive at underlying
income, a non-GAAP measure, is calculated based on applying the
estimated underlying full-year effective tax rate to actual
underlying earnings, excluding special and non-core items. The
effect of taxes on special and non-core items is calculated based on
the statutory tax rate applicable to the item being adjusted for in
the jurisdiction from which each adjustment arises. Additionally,
included in this line item is any applicable flow through MCBC tax
impacts of MillerCoors special items for the pre-Acquisition period.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 2: Underlying Actual and Pro Forma EBITDA
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
% change
|
|
|
March 31, 2016
|
|
|
|
|
Actual
|
|
|
Pro Forma
|
|
|
|
|
Actual
|
|
U.S. GAAP: Net income
(loss) attributable to MCBC from continuing operations
|
|
|
$
|
201.9
|
|
|
|
$
|
257.4
|
|
|
|
(21.6
|
)%
|
|
|
$
|
163.2
|
|
|
Add: Net income (loss) attributable to noncontrolling
interests
|
|
|
6.5
|
|
|
|
3.6
|
|
|
|
80.6
|
%
|
|
|
0.8
|
|
|
U.S. GAAP: Net income
(loss) from continuing operations
|
|
|
208.4
|
|
|
|
261.0
|
|
|
|
(20.2
|
)%
|
|
|
164.0
|
|
|
Add: Interest expense (income), net
|
|
|
96.6
|
|
|
|
90.9
|
|
|
|
6.3
|
%
|
|
|
47.3
|
|
|
Add: Income tax expense (benefit)
|
|
|
64.6
|
|
|
|
75.7
|
|
|
|
(14.7
|
)%
|
|
|
16.7
|
|
|
Add: Depreciation and amortization
|
|
|
197.1
|
|
|
|
219.4
|
|
|
|
(10.2
|
)%
|
|
|
67.5
|
|
|
Adjustments included in underlying income(1)
|
|
|
(48.4
|
)
|
|
|
(74.0
|
)
|
|
|
(34.6
|
)%
|
|
|
(57.2
|
)
|
|
Adjustments to arrive at underlying EBITDA(2)
|
|
|
(3.4
|
)
|
|
|
(38.9
|
)
|
|
|
(91.3
|
)%
|
|
|
(23.4
|
)
|
|
Adjustments to arrive at underlying EBITDA related to our investment
in MillerCoors(3)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
48.5
|
|
|
Non-GAAP: Underlying EBITDA
|
|
|
$
|
514.9
|
|
|
|
$
|
534.1
|
|
|
|
(3.6
|
)%
|
|
|
$
|
263.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes adjustments to non-GAAP underlying income within the table
above related to special and non-core items.
|
|
|
|
|
|
(2)
|
|
Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC from continuing
operations.
|
|
|
|
|
|
(3)
|
|
Adjustments to our equity income from MillerCoors, which include our
proportionate share of MillerCoors' interest, income tax,
depreciation and amortization, special items, and amortization of
the difference between the MCBC contributed cost basis and
proportionate share of the underlying equity in net assets of
MillerCoors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 3: Underlying Free Cash Flow
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
U.S. GAAP:
|
|
|
Net Cash Provided by (Used In) Operating Activities
|
|
|
$
|
(118.3
|
)
|
|
|
$
|
(88.3
|
)
|
|
Less:
|
|
|
Additions to properties(1)
|
|
|
(180.0
|
)
|
|
|
(71.1
|
)
|
|
Less:
|
|
|
Investment in MillerCoors(1)
|
|
|
—
|
|
|
|
(413.7
|
)
|
|
Add:
|
|
|
Return of capital from MillerCoors(1)
|
|
|
—
|
|
|
|
283.4
|
|
|
Add/(Less):
|
|
|
Cash impact of special items(2)
|
|
|
33.0
|
|
|
|
1.9
|
|
|
Add:
|
|
|
Non-core costs related to acquisition of businesses(3)
|
|
|
44.0
|
|
|
|
47.2
|
|
|
Add:
|
|
|
Cash paid for taxes related to the Acquisition(4)
|
|
|
—
|
|
|
|
38.8
|
|
|
Add:
|
|
|
MillerCoors cash impact of special items(5)
|
|
|
—
|
|
|
|
0.4
|
|
|
Non-GAAP:
|
|
|
Underlying Free Cash Flow
|
|
|
$
|
(221.3
|
)
|
|
|
$
|
(201.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Included in net cash used in investing activities.
|
|
|
|
|
|
(2)
|
|
Included in net cash provided by (used in) operating activities and
primarily reflects costs paid for brewery closures and restructuring
activities. Also, includes additions to properties within net cash
used in investing activities related to the cash paid to build a new
efficient and flexible brewery in British Columbia, following the
sale of our Vancouver brewery in the first quarter of 2016. The
proceeds of $140.8 million received from the sale of the Vancouver
brewery are being used to fund the construction of the new brewery
in British Columbia.
|
|
|
|
|
|
(3)
|
|
Included in net cash provided by operating activities and reflects
costs paid associated with the Acquisition of 58% of MillerCoors,
LLC, and the Miller global brand portfolio.
|
|
|
|
|
|
(4)
|
|
Included in net cash provided by (used in) operating activities and
reflects cash paid for income taxes related to the Acquisition.
|
|
|
|
|
|
(5)
|
|
Amounts represent our proportionate 42% share of the cash flow
impacts for the pre-Acquisition period January 1, 2016, through
March 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 4: Constant Currency Results
(Unaudited)
U.S. GAAP: Net Sales (In millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
Reported %
Increase
(Decrease)
|
|
|
Foreign
Exchange
Impact ($)
|
|
|
Constant Currency %
Increase (Decrease)
|
|
Canada
|
|
|
$
|
291.1
|
|
|
|
$
|
268.0
|
|
|
|
8.6
|
%
|
|
|
$
|
9.5
|
|
|
|
5.1
|
%
|
|
Europe
|
|
|
$
|
381.6
|
|
|
|
$
|
358.7
|
|
|
|
6.4
|
%
|
|
|
$
|
(45.6
|
)
|
|
|
19.1
|
%
|
|
MCI
|
|
|
$
|
61.8
|
|
|
|
$
|
31.0
|
|
|
|
99.4
|
%
|
|
|
$
|
(0.1
|
)
|
|
|
99.7
|
%
|
|
Corporate
|
|
|
$
|
0.3
|
|
|
|
$
|
0.4
|
|
|
|
(25.0
|
)%
|
|
|
$
|
—
|
|
|
|
(25.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP: Pretax Income (In millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
Reported %
Increase
(Decrease)
|
|
|
Foreign
Exchange
Impact ($)
|
|
|
Constant Currency %
Increase (Decrease)
|
|
Canada
|
|
|
$
|
23.1
|
|
|
|
$
|
146.6
|
|
|
|
(84.2)%
|
|
|
$
|
0.7
|
|
|
|
(84.7)%
|
|
Europe
|
|
|
$
|
30.6
|
|
|
|
$
|
(1.2
|
)
|
|
|
N/M
|
|
|
$
|
(8.8
|
)
|
|
|
N/M
|
|
MCI
|
|
|
$
|
1.5
|
|
|
|
$
|
(2.3
|
)
|
|
|
N/M
|
|
|
$
|
0.3
|
|
|
|
N/M
|
|
Corporate
|
|
|
$
|
(97.8
|
)
|
|
|
$
|
(104.8
|
)
|
|
|
6.7%
|
|
|
$
|
(7.9
|
)
|
|
|
14.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP: Underlying Pretax Income (In millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
Reported %
Increase
(Decrease)
|
|
|
Foreign
Exchange
Impact ($)
|
|
|
Constant Currency %
Increase (Decrease)
|
|
Canada
|
$
|
13.3
|
|
|
|
$
|
37.3
|
|
|
|
(64.3)%
|
|
|
$
|
0.3
|
|
|
|
(65.1)%
|
|
Europe
|
$
|
33.4
|
|
|
|
$
|
(0.5
|
)
|
|
|
N/M
|
|
|
$
|
(9.2
|
)
|
|
|
N/M
|
|
MCI
|
$
|
2.7
|
|
|
|
$
|
(2.3
|
)
|
|
|
N/M
|
|
|
$
|
0.3
|
|
|
|
N/M
|
|
Corporate
|
$
|
(147.4
|
)
|
|
|
$
|
(53.4
|
)
|
|
|
(176.0)%
|
|
|
$
|
(7.9
|
)
|
|
|
(161.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP: Underlying EBITDA (In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
Reported %
Increase
(Decrease)
|
|
|
Foreign
Exchange
Impact ($)
|
|
|
Constant Currency %
Increase (Decrease)
|
|
Canada
|
|
|
$
|
42.9
|
|
|
|
$
|
57.2
|
|
|
|
(25.0
|
)%
|
|
|
$
|
1.4
|
|
|
|
(27.4
|
)%
|
|
Europe
|
|
|
$
|
74.0
|
|
|
|
$
|
41.4
|
|
|
|
78.7
|
%
|
|
|
$
|
(12.6
|
)
|
|
|
109.2
|
%
|
|
MCI
|
|
|
$
|
5.0
|
|
|
|
$
|
(1.4
|
)
|
|
|
N/M
|
|
|
|
$
|
0.3
|
|
|
|
N/M
|
|
|
Corporate
|
|
|
$
|
(48.9
|
)
|
|
|
$
|
(24.7
|
)
|
|
|
(98.0
|
)%
|
|
|
$
|
(7.8
|
)
|
|
|
(66.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MCBC Consolidated (In millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
Reported %
Increase
(Decrease)
|
|
|
Foreign
Exchange
Impact ($)
|
|
|
Constant Currency %
Increase (Decrease)
|
|
|
|
|
Actual
|
|
|
Pro forma
|
|
|
|
|
|
|
|
U.S. GAAP Net Sales
|
|
|
$
|
2,448.7
|
|
|
|
$
|
2,461.4
|
|
|
|
(0.5
|
)%
|
|
|
$
|
(36.2
|
)
|
|
|
1.0
|
%
|
|
U.S. GAAP Pretax Income
|
|
|
$
|
273.0
|
|
|
|
$
|
336.7
|
|
|
|
(18.9
|
)%
|
|
|
$
|
(16.1
|
)
|
|
|
(14.1
|
)%
|
|
Non-GAAP Underlying Pretax Income
|
|
|
$
|
224.6
|
|
|
|
$
|
262.7
|
|
|
|
(14.5
|
)%
|
|
|
$
|
(16.9
|
)
|
|
|
(8.1
|
)%
|
|
Non-GAAP Underlying EBITDA
|
|
|
$
|
514.9
|
|
|
|
$
|
534.1
|
|
|
|
(3.6
|
)%
|
|
|
$
|
(19.1
|
)
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant currency is a non-GAAP measure utilized by Molson Coors
management to measure performance, excluding the impact of foreign
currency movements. As we operate in various foreign countries where the
local currency may strengthen or weaken significantly versus the U.S.
dollar or other currencies used in operations, we utilize a constant
currency measure as an additional metric to evaluate the underlying
performance of each business without consideration of foreign currency
movements. This information is non-GAAP and should be viewed as a
supplement to (not a substitute for) our reported results of operations
under U.S. GAAP. We calculate the impact of foreign exchange on net
sales, pretax income and non-GAAP underlying pretax income using the
following steps:
|
1.
|
|
Multiply our current period local currency operating results (that
also include the impact of the comparable prior-period currency
hedging activities) by the weighted average foreign exchange rates
used to translate the financial statements in the comparable prior
year period. The result is the current-period operating results in
U.S. dollars, as if foreign exchange rates had not changed from the
prior-year period.
|
|
|
|
|
|
2.
|
|
Subtract the result in step 1 from the unadjusted current-period
reported operating result in U.S. dollars (U.S. GAAP measure). This
difference reflects the impact of foreign currency translational
gains/losses included in the current-period results.
|
|
|
|
|
|
3.
|
|
Determine the amount of actual non-operating foreign currency
gains/losses realized as a result of hedging activities and
activities transacted in a currency other than the functional
currency of each legal entity.
|
|
|
|
|
|
4.
|
|
Add the results of steps 2 and 3 above. This sum equals the total
impact of foreign currency translational gains/losses and realized
gains/losses from foreign currency transactions. This is the value
shown in the “Foreign Exchange $ Impact” column within the table
above.
|
|
|
|
|
|
|
|
|
|
|
Worldwide Brand Volume
Molson Coors Brewing Company and Subsidiaries
Table 5: Actual and Pro Forma Worldwide Brand
Volume
(In millions of hectoliters)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
% Change
|
|
|
March 31, 2016
|
|
|
|
|
Actual
|
|
|
Pro forma
|
|
|
|
|
Actual
|
|
Financial Volume(1)
|
|
|
21.878
|
|
|
|
22.516
|
|
|
|
(2.8
|
)%
|
|
|
6.330
|
|
|
Contract brewing and wholesaler volume(2)
|
|
|
(1.988
|
)
|
|
|
(2.256
|
)
|
|
|
(11.9
|
)%
|
|
|
(0.581
|
)
|
|
Royalty Volume(3)
|
|
|
0.798
|
|
|
|
0.337
|
|
|
|
136.8
|
%
|
|
|
0.337
|
|
|
Sales-To-Wholesaler to Sales-To-Retail adjustment
|
|
|
(0.982
|
)
|
|
|
(1.299
|
)
|
|
|
(24.4
|
)%
|
|
|
(0.002
|
)
|
|
Owned Volume
|
|
|
19.706
|
|
|
|
19.298
|
|
|
|
2.1
|
%
|
|
|
6.084
|
|
|
Proportionate share of Equity Investment Worldwide Brand Volume(1)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
5.550
|
|
|
Total Worldwide Brand Volume
|
|
|
19.706
|
|
|
|
19.298
|
|
|
|
2.1
|
%
|
|
|
11.634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
As a result of the Acquisition, we aligned our volume reporting
policies resulting in adjustments to our historically reported
volumes. Specifically, financial volume for all consolidated
segments has been recast to include contract brewing and wholesaler
non-owned brand volumes (including factored brands in Europe and
non-owned brands distributed in the U.S.), as the corresponding
sales are reported within our gross sales amounts. Additionally,
financial volumes continue to include our owned brands sold to
unrelated external customers within our geographic markets, net of
returns and allowances. Worldwide brand volume 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. 2017 and pro forma
worldwide brand volume includes 100 percent of MillerCoors brand
volume.
|
|
|
|
|
|
(2)
|
|
Contract brewing and wholesaler volume is included within financial
volume as noted above, but is removed from worldwide brand volume as
this is non-owned volume for which we do not directly control
performance.
|
|
|
|
|
|
(3)
|
|
2016 includes MCI and Europe segment royalty volume that is
primarily in Russia, Ukraine, Mexico and the Republic of Ireland.
Effective January 1, 2017, royalty volumes in Russia and Ukraine are
reported within our Europe segment.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 6: Actual and Pro Forma Condensed
Consolidated Statements of Operations
($ In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
|
|
Actual
|
|
|
Pro forma
|
|
|
Actual
|
|
Volume in hectoliters(1)
|
|
|
21.878
|
|
|
|
22.516
|
|
|
|
6.330
|
|
|
Sales
|
|
|
$
|
2,913.8
|
|
|
|
$
|
3,008.2
|
|
|
|
$
|
950.8
|
|
|
Excise taxes
|
|
|
(465.1
|
)
|
|
|
(546.8
|
)
|
|
|
(293.6
|
)
|
|
Net sales
|
|
|
2,448.7
|
|
|
|
2,461.4
|
|
|
|
657.2
|
|
|
Cost of goods sold
|
|
|
(1,372.9
|
)
|
|
|
(1,450.8
|
)
|
|
|
(414.0
|
)
|
|
Gross profit
|
|
|
1,075.8
|
|
|
|
1,010.6
|
|
|
|
243.2
|
|
|
Marketing, general and administrative expenses
|
|
|
(702.8
|
)
|
|
|
(659.4
|
)
|
|
|
(250.9
|
)
|
|
Special items, net
|
|
|
(3.8
|
)
|
|
|
71.7
|
|
|
|
108.6
|
|
|
Equity income in MillerCoors
|
|
|
—
|
|
|
|
—
|
|
|
|
142.4
|
|
|
Operating income (loss)
|
|
|
369.2
|
|
|
|
422.9
|
|
|
|
243.3
|
|
|
Interest income (expense), net
|
|
|
(96.6
|
)
|
|
|
(90.9
|
)
|
|
|
(47.3
|
)
|
|
Other income (expense), net
|
|
|
0.4
|
|
|
|
4.7
|
|
|
|
(15.3
|
)
|
|
Income (loss) from continuing operations before income taxes
|
|
|
273.0
|
|
|
|
336.7
|
|
|
|
180.7
|
|
|
Income tax benefit (expense)
|
|
|
(64.6
|
)
|
|
|
(75.7
|
)
|
|
|
(16.7
|
)
|
|
Net income (loss) from continuing operations
|
|
|
208.4
|
|
|
|
261.0
|
|
|
|
164.0
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(0.6
|
)
|
|
|
(0.5
|
)
|
|
|
(0.5
|
)
|
|
Net income (loss) including noncontrolling interests
|
|
|
207.8
|
|
|
|
260.5
|
|
|
|
163.5
|
|
|
Net (income) loss attributable to noncontrolling interests
|
|
|
(6.5
|
)
|
|
|
(3.6
|
)
|
|
|
(0.8
|
)
|
|
Net income (loss) attributable to MCBC
|
|
|
$
|
201.3
|
|
|
|
$
|
256.9
|
|
|
|
$
|
162.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.94
|
|
|
|
$
|
1.20
|
|
|
|
$
|
0.80
|
|
|
From discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Basic net income (loss) attributable to MCBC per share
|
|
|
$
|
0.94
|
|
|
|
$
|
1.20
|
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) attributable to MCBC per share:
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
$
|
0.93
|
|
|
|
$
|
1.19
|
|
|
|
$
|
0.80
|
|
|
From discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Diluted net income (loss) attributable to MCBC per share
|
|
|
$
|
0.93
|
|
|
|
$
|
1.19
|
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
|
|
215.0
|
|
|
|
214.4
|
|
|
|
203.6
|
|
|
Weighted average shares - diluted
|
|
|
216.5
|
|
|
|
215.9
|
|
|
|
205.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
|
$
|
0.41
|
|
|
|
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to MCBC
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations
|
|
|
$
|
201.9
|
|
|
|
$
|
257.4
|
|
|
|
$
|
163.2
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(0.6
|
)
|
|
|
(0.5
|
)
|
|
|
(0.5
|
)
|
|
Net income (loss) attributable to MCBC
|
|
|
$
|
201.3
|
|
|
|
$
|
256.9
|
|
|
|
$
|
162.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Historical volumes have been recast to reflect the impacts of
aligning policies on reporting financial volumes as a result of the
Acquisition. See table 5, "Actual and Pro Forma Worldwide Brand
Volume" above for further details.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 7: U.S. Actual and Pro Forma Results of
Operations
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
|
|
|
Actual
|
|
|
Pro Forma
|
|
|
Actual
|
|
Volumes in hectoliters(1)(2)
|
|
|
15.772
|
|
|
|
16.388
|
|
|
|
16.388
|
|
|
Sales(2)
|
|
|
$
|
1,991.4
|
|
|
|
$
|
2,063.4
|
|
|
|
$
|
2,069.3
|
|
|
Excise taxes
|
|
|
(241.5
|
)
|
|
|
(253.2
|
)
|
|
|
(253.2
|
)
|
|
Net sales(2)
|
|
|
1,749.9
|
|
|
|
1,810.2
|
|
|
|
1,816.1
|
|
|
Cost of goods sold(2)
|
|
|
(1,026.9
|
)
|
|
|
(1,048.7
|
)
|
|
|
(1,033.0
|
)
|
|
Gross profit
|
|
|
723.0
|
|
|
|
761.5
|
|
|
|
783.1
|
|
|
Marketing, general and administrative expenses
|
|
|
(404.9
|
)
|
|
|
(420.4
|
)
|
|
|
(409.7
|
)
|
|
Special items, net(3)
|
|
|
(2.5
|
)
|
|
|
(36.9
|
)
|
|
|
(36.9
|
)
|
|
Operating income
|
|
|
315.6
|
|
|
|
304.2
|
|
|
|
336.5
|
|
|
Interest income (expense), net
|
|
|
—
|
|
|
|
(0.5
|
)
|
|
|
(0.5
|
)
|
|
Other income (expense), net
|
|
|
—
|
|
|
|
1.6
|
|
|
|
1.6
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
315.6
|
|
|
|
$
|
305.3
|
|
|
|
$
|
337.6
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
Special items, net(3)
|
|
|
2.5
|
|
|
|
36.9
|
|
|
|
36.9
|
|
|
Acquisition and integration related costs(4)
|
|
|
4.5
|
|
|
|
—
|
|
|
|
—
|
|
|
Non-GAAP: Underlying pretax income (loss)
|
|
|
$
|
322.6
|
|
|
|
$
|
342.2
|
|
|
|
$
|
374.5
|
|
|
Add: Interest expense (income), net
|
|
|
—
|
|
|
|
0.5
|
|
|
|
0.5
|
|
|
Add: Depreciation and amortization
|
|
|
119.3
|
|
|
|
151.9
|
|
|
|
117.1
|
|
|
Adjustments to arrive at underlying EBITDA(5)
|
|
|
—
|
|
|
|
(35.9
|
)
|
|
|
(35.9
|
)
|
|
Non-GAAP: Underlying EBITDA
|
|
|
$
|
441.9
|
|
|
|
$
|
458.7
|
|
|
|
$
|
456.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Historical volumes have been recast to reflect the impacts of
aligning policies on reporting financial volumes as a result of the
Acquisition. See table 5, "Actual and Pro Forma Worldwide Brand
Volume" above for further details.
|
|
|
|
|
|
(2)
|
|
On a reported basis, includes gross inter-segment sales and volumes
which are eliminated in the consolidated totals.
|
|
|
|
|
|
(3)
|
|
See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items, on an actual
basis. Results include net special charges primarily related to the
closure of the Eden, North Carolina, brewery, which for the three
months ended March 31, 2016, includes $35.9 million of accelerated
depreciation in excess of normal depreciation associated with the
brewery and $1.0 million of other charges. These accelerated
depreciation charges are included in our adjustments to arrive at
underlying EBITDA.
|
|
|
|
|
|
(4)
|
|
For the three months ended March 31, 2017, $0.5 million of
integration costs were incurred in cost of goods sold and $4.0
million of integration costs were incurred in marketing, general &
administrative expenses.
|
|
|
|
|
|
(5)
|
|
Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC from continuing
operations.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 8: Underlying Equity Income in MillerCoors
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
March 31, 2016
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
337.6
|
|
|
Income tax expense
|
|
|
0.5
|
|
|
Net (income) loss attributable to noncontrolling interest
|
|
|
(2.8
|
)
|
|
Net income attributable to MillerCoors
|
|
|
$
|
335.3
|
|
|
MCBC economic interest
|
|
|
42
|
%
|
|
MCBC proportionate share of MillerCoors net income
|
|
|
140.8
|
|
|
Amortization of the difference between MCBC contributed cost basis
and proportionate share of the underlying equity in net assets of
MillerCoors
|
|
|
1.1
|
|
|
Share-based compensation adjustment(1)
|
|
|
0.5
|
|
|
Equity income in MillerCoors
|
|
|
$
|
142.4
|
|
|
Add/(less):
|
|
|
|
|
MCBC proportionate share of MillerCoors special items, net of tax(2)
|
|
|
15.5
|
|
|
Non-GAAP Equity Income in MillerCoors
|
|
|
$
|
157.9
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The net adjustment is to eliminate all share-based compensation
impacts related to pre-existing SABMiller equity awards held by
former Miller Brewing Company employees employed by MillerCoors, as
well as to add back all share-based compensation impacts related to
pre-existing MCBC equity awards held by former MCBC employees who
transferred to MillerCoors.
|
|
|
|
|
|
(2)
|
|
Results include net special charges of $36.9 million primarily
related to the closure of the Eden, North Carolina, brewery for the
three months ended March 31, 2016, for which we recorded our
proportionate 42% share.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 9: Canada Results of Operations
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
Volume in hectoliters(1)(2)
|
|
|
1.793
|
|
|
|
1.774
|
|
|
Sales(2)
|
|
|
$
|
377.4
|
|
|
|
$
|
353.8
|
|
|
Excise taxes
|
|
|
(86.3
|
)
|
|
|
(85.8
|
)
|
|
Net sales(2)
|
|
|
291.1
|
|
|
|
268.0
|
|
|
Cost of goods sold(2)
|
|
|
(181.9
|
)
|
|
|
(157.2
|
)
|
|
Gross profit
|
|
|
109.2
|
|
|
|
110.8
|
|
|
Marketing, general and administrative expenses
|
|
|
(96.0
|
)
|
|
|
(76.7
|
)
|
|
Special items, net(3)
|
|
|
1.7
|
|
|
|
109.3
|
|
|
Operating income (loss)
|
|
|
14.9
|
|
|
|
143.4
|
|
|
Other income (expense), net
|
|
|
8.2
|
|
|
|
3.2
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
23.1
|
|
|
|
$
|
146.6
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
Special items, net(3)
|
|
|
(1.7
|
)
|
|
|
(109.3
|
)
|
|
Other non-core items(4)
|
|
|
(8.1
|
)
|
|
|
—
|
|
|
Non-GAAP: Underlying pretax income (loss)
|
|
|
$
|
13.3
|
|
|
|
$
|
37.3
|
|
|
Add: Depreciation and amortization
|
|
|
30.8
|
|
|
|
21.0
|
|
|
Adjustments to arrive at underlying EBITDA(5)
|
|
|
(1.2
|
)
|
|
|
(1.1
|
)
|
|
Non-GAAP: Underlying EBITDA
|
|
|
$
|
42.9
|
|
|
|
$
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Historical volumes have been recast to reflect the impacts of
aligning policies on reporting financial volumes as a result of the
Acquisition. See table 5, "Actual and Pro Forma Worldwide Brand
Volume" above for further details.
|
|
|
|
|
|
(2)
|
|
Reflects gross inter-segment sales, purchases and volumes which are
eliminated in the consolidated totals.
|
|
|
|
|
|
(3)
|
|
See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items. Special
items for the three months ended March 31, 2017, and March 31, 2016,
includes accelerated depreciation expense of $1.2 million and $1.1
million, respectively, related to the planned closure of the
Vancouver brewery. These accelerated depreciation charges are
included in our adjustments to arrive at underlying EBITDA.
|
|
|
|
|
|
(4)
|
|
For the three months ended March 31, 2017, a gain of $8.1 million
was recorded in other income (expense), net resulting from a
purchase price adjustment related to the historical sale of Molson
Inc.’s ownership interest in the Montreal Canadiens.
|
|
|
|
|
|
(5)
|
|
Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC from continuing
operations.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 10: Europe Results of Operations
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
Volume in hectoliters(1)(2)
|
|
|
4.359
|
|
|
|
4.261
|
|
|
Sales(2)
|
|
|
$
|
514.4
|
|
|
|
$
|
560.9
|
|
|
Excise taxes
|
|
|
(132.8
|
)
|
|
|
(202.2
|
)
|
|
Net sales(2)
|
|
|
381.6
|
|
|
|
358.7
|
|
|
Cost of goods sold
|
|
|
(224.1
|
)
|
|
|
(239.9
|
)
|
|
Gross profit
|
|
|
157.5
|
|
|
|
118.8
|
|
|
Marketing, general and administrative expenses
|
|
|
(125.2
|
)
|
|
|
(119.3
|
)
|
|
Special items, net(3)
|
|
|
(2.6
|
)
|
|
|
(0.7
|
)
|
|
Operating income (loss)
|
|
|
29.7
|
|
|
|
(1.2
|
)
|
|
Interest income, net
|
|
|
1.0
|
|
|
|
0.8
|
|
|
Other income (expense), net
|
|
|
(0.1
|
)
|
|
|
(0.8
|
)
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
30.6
|
|
|
|
$
|
(1.2
|
)
|
|
Add/(less):
|
|
|
|
|
|
|
|
Special items, net(3)
|
|
|
2.6
|
|
|
|
0.7
|
|
|
Acquisition and integration related costs(4)
|
|
|
0.2
|
|
|
|
—
|
|
|
Non-GAAP: Underlying pretax income (loss)
|
|
|
$
|
33.4
|
|
|
|
$
|
(0.5
|
)
|
|
Add: Interest expense (income), net
|
|
|
(1.0
|
)
|
|
|
(0.8
|
)
|
|
Add: Depreciation and amortization
|
|
|
43.8
|
|
|
|
44.6
|
|
|
Adjustments to arrive at underlying EBITDA(5)
|
|
|
(2.2
|
)
|
|
|
(1.9
|
)
|
|
Non-GAAP: Underlying EBITDA
|
|
|
$
|
74.0
|
|
|
|
$
|
41.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Historical volumes have been recast to reflect the impacts of
aligning policies on reporting financial volumes as a result of the
Acquisition. See table 5, "Actual and Pro Forma Worldwide Brand
Volume" above for further details.
|
|
|
|
|
|
(2)
|
|
Reflects gross inter-segment sales which are eliminated in the
consolidated totals. Excludes royalty volume of 0.325 million
hectoliters and 0.036 million hectoliters for the three months ended
March 31, 2017, and March 31, 2016, respectively.
|
|
|
|
|
|
(3)
|
|
See Part I—Item 1. Financial Statements, Note 6, "Special Items"
of the Form 10-Q for detailed discussion of special items. Special
items for the three months ended March 31, 2017, includes
accelerated depreciation expense of $2.2 million related to the
planned closure of our Burton South brewery in the U.K., and for
the three months ended March 31, 2016, includes accelerated
depreciation expense of $1.9 million associated with the planned
closure of the Burton South brewery in the U.K. These accelerated
depreciation charges are included in our adjustments to arrive at
underlying EBITDA.
|
|
|
|
|
|
(4)
|
|
For the three months ended March 31, 2017, $0.2 million of
integration costs were incurred in cost of goods sold.
|
|
|
|
|
|
(5)
|
|
Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC from continuing
operations.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 11: Molson Coors International Results of
Operations
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
Volume in hectoliters(1)(2)
|
|
|
0.528
|
|
|
|
0.305
|
|
|
Sales
|
|
|
$
|
66.3
|
|
|
|
$
|
36.6
|
|
|
Excise taxes
|
|
|
(4.5
|
)
|
|
|
(5.6
|
)
|
|
Net sales
|
|
|
61.8
|
|
|
|
31.0
|
|
|
Cost of goods sold(3)
|
|
|
(39.0
|
)
|
|
|
(20.6
|
)
|
|
Gross profit
|
|
|
22.8
|
|
|
|
10.4
|
|
|
Marketing, general and administrative expenses
|
|
|
(21.0
|
)
|
|
|
(12.7
|
)
|
|
Special items, net(4)
|
|
|
(0.3
|
)
|
|
|
—
|
|
|
Operating income (loss)
|
|
|
1.5
|
|
|
|
(2.3
|
)
|
|
Other income (expense), net
|
|
|
—
|
|
|
|
—
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
1.5
|
|
|
|
$
|
(2.3
|
)
|
|
Add/(less):
|
|
|
|
|
|
|
|
Special items, net(4)
|
|
|
0.3
|
|
|
|
—
|
|
|
Acquisition and integration related costs(5)
|
|
|
0.9
|
|
|
|
|
|
Non-GAAP: Underlying pretax income (loss)
|
|
|
$
|
2.7
|
|
|
|
$
|
(2.3
|
)
|
|
Add: Depreciation and amortization
|
|
|
2.3
|
|
|
|
0.9
|
|
|
Adjustments to arrive at underlying EBITDA
|
|
|
—
|
|
|
|
—
|
|
|
Non-GAAP: Underlying EBITDA
|
|
|
$
|
5.0
|
|
|
|
$
|
(1.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Historical volumes have been recast to reflect the impacts of
aligning policies on reporting financial volumes as a result of the
Acquisition. See table 5, "Actual and Pro Forma Worldwide Brand
Volume" above for further details.
|
|
|
|
|
|
(2)
|
|
Excludes royalty volume of 0.473 million hectoliters and 0.301
million hectoliters for the three months ended March 31, 2017, and
March 31, 2016, respectively.
|
|
|
|
|
|
(3)
|
|
Reflects gross inter-segment purchases which are eliminated in the
consolidated totals.
|
|
|
|
|
|
(4)
|
|
See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items.
|
|
|
|
|
|
(5)
|
|
For the three months ended March 31, 2017, $0.9 million of
integration costs were incurred in marketing, general &
administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 12: Corporate Results of Operations
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
Volume in hectoliters
|
|
|
—
|
|
|
|
—
|
|
|
Sales
|
|
|
$
|
0.3
|
|
|
|
$
|
0.4
|
|
|
Excise taxes
|
|
|
—
|
|
|
|
—
|
|
|
Net sales
|
|
|
0.3
|
|
|
|
0.4
|
|
|
Cost of goods sold
|
|
|
63.0
|
|
|
|
2.8
|
|
|
Gross profit
|
|
|
63.3
|
|
|
|
3.2
|
|
|
Marketing, general and administrative expenses
|
|
|
(55.7
|
)
|
|
|
(42.2
|
)
|
|
Special items, net(1)
|
|
|
(0.1
|
)
|
|
|
—
|
|
|
Operating income (loss)
|
|
|
7.5
|
|
|
|
(39.0
|
)
|
|
Interest expense, net
|
|
|
(97.6
|
)
|
|
|
(48.1
|
)
|
|
Other income (expense), net
|
|
|
(7.7
|
)
|
|
|
(17.7
|
)
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
(97.8
|
)
|
|
|
$
|
(104.8
|
)
|
|
Add/(less):
|
|
|
|
|
|
|
|
Special items, net(1)
|
|
|
0.1
|
|
|
|
—
|
|
|
Acquisition and integration related costs(2)
|
|
|
13.4
|
|
|
|
53.7
|
|
|
Unrealized mark-to-market (gains) and losses(3)
|
|
|
(63.1
|
)
|
|
|
(2.3
|
)
|
|
Non-GAAP: Underlying pretax income (loss)
|
|
|
$
|
(147.4
|
)
|
|
|
$
|
(53.4
|
)
|
|
Add: Interest expense (income), net
|
|
|
97.6
|
|
|
|
48.1
|
|
|
Add: Depreciation and amortization
|
|
|
0.9
|
|
|
|
1.0
|
|
|
Adjustments to arrive at underlying EBITDA(4)
|
|
|
—
|
|
|
|
(20.4
|
)
|
|
Non-GAAP: Underlying EBITDA
|
|
|
$
|
(48.9
|
)
|
|
|
$
|
(24.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items.
|
|
|
|
|
|
(2)
|
|
In connection with the acquisition, for the three months ended March
31, 2017, and March 31, 2016, we have recorded $13.4 million and
$14.9 million of transaction related costs recorded within
marketing, general & administrative expenses, respectively. For the
three months ended March 31, 2016, we recorded financing costs of
$18.4 million in other income (expense), net and interest expense of
$20.4 million in interest income (expense). The interest income
(expense) is included in our adjustments to arrive at underlying
EBITDA.
|
|
|
|
|
|
(3)
|
|
The unrealized changes in fair value on our commodity swaps, which
are economic hedges, are recorded as cost of goods sold within our
Corporate business activities. As the exposure we are managing is
realized, we reclassify the gain or loss to the segment in which the
underlying exposure resides, allowing our segments to realize the
economic effects of the derivative without the resulting unrealized
mark-to-market volatility.
|
|
|
|
|
|
(4)
|
|
Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC from continuing
operations.
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 13: Condensed Consolidated Balance Sheets
($ In millions, except par value) (Unaudited)
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
March 31, 2017
|
|
|
December 31, 2016
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
395.0
|
|
|
|
$
|
560.9
|
|
|
Accounts receivable, net
|
|
|
756.5
|
|
|
|
669.5
|
|
|
Other receivables, net
|
|
|
166.5
|
|
|
|
135.8
|
|
|
Inventories, net
|
|
|
663.5
|
|
|
|
592.7
|
|
|
Other current assets, net
|
|
|
297.7
|
|
|
|
210.7
|
|
|
Total current assets
|
|
|
2,279.2
|
|
|
|
2,169.6
|
|
|
Properties, net
|
|
|
4,528.8
|
|
|
|
4,507.4
|
|
|
Goodwill
|
|
|
8,276.2
|
|
|
|
8,250.1
|
|
|
Other intangibles, net
|
|
|
14,032.6
|
|
|
|
14,031.9
|
|
|
Other assets
|
|
|
426.1
|
|
|
|
382.5
|
|
|
Total assets
|
|
|
$
|
29,542.9
|
|
|
|
$
|
29,341.5
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and other current liabilities
|
|
|
$
|
2,200.5
|
|
|
|
$
|
2,467.7
|
|
|
Current portion of long-term debt and short-term borrowings
|
|
|
843.0
|
|
|
|
684.8
|
|
|
Discontinued operations
|
|
|
5.2
|
|
|
|
5.0
|
|
|
Total current liabilities
|
|
|
3,048.7
|
|
|
|
3,157.5
|
|
|
Long-term debt
|
|
|
11,443.1
|
|
|
|
11,387.7
|
|
|
Pension and postretirement benefits
|
|
|
1,157.9
|
|
|
|
1,196.0
|
|
|
Deferred tax liabilities
|
|
|
1,762.6
|
|
|
|
1,699.0
|
|
|
Other liabilities
|
|
|
307.2
|
|
|
|
267.0
|
|
|
Discontinued operations
|
|
|
13.1
|
|
|
|
12.6
|
|
|
Total liabilities
|
|
|
17,732.6
|
|
|
|
17,719.8
|
|
|
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: 204.2 shares and 203.7 shares, respectively)
|
|
|
2.0
|
|
|
|
2.0
|
|
|
Class A exchangeable shares, no par value (issued and outstanding:
2.9 shares and 2.9 shares, respectively)
|
|
|
108.4
|
|
|
|
108.1
|
|
|
Class B exchangeable shares, no par value (issued and outstanding:
15.1 shares and 15.2 shares, respectively)
|
|
|
567.6
|
|
|
|
571.2
|
|
|
Paid-in capital
|
|
|
6,629.9
|
|
|
|
6,635.3
|
|
|
Retained earnings
|
|
|
6,232.0
|
|
|
|
6,119.0
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(1,470.2
|
)
|
|
|
(1,545.5
|
)
|
|
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
|
|
|
11,598.3
|
|
|
|
11,418.7
|
|
|
Noncontrolling interests
|
|
|
212.0
|
|
|
|
203.0
|
|
|
Total equity
|
|
|
11,810.3
|
|
|
|
11,621.7
|
|
|
Total liabilities and equity
|
|
|
$
|
29,542.9
|
|
|
|
$
|
29,341.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molson Coors Brewing Company and Subsidiaries
Table 14: Condensed Consolidated Statements of
Cash Flows
($ In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31, 2017
|
|
|
March 31, 2016
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
|
|
$
|
207.8
|
|
|
|
$
|
163.5
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
197.1
|
|
|
|
67.5
|
|
|
Amortization of debt issuance costs and discounts
|
|
|
6.5
|
|
|
|
16.7
|
|
|
Share-based compensation
|
|
|
15.5
|
|
|
|
6.1
|
|
|
(Gain) loss on sale or impairment of properties and other assets, net
|
|
|
(4.4
|
)
|
|
|
(110.1
|
)
|
|
Equity income in MillerCoors
|
|
|
—
|
|
|
|
(142.4
|
)
|
|
Distributions from MillerCoors
|
|
|
—
|
|
|
|
142.4
|
|
|
Equity in net (income) loss of other unconsolidated affiliates
|
|
|
7.3
|
|
|
|
6.5
|
|
|
Unrealized (gain) loss on foreign currency fluctuations and
derivative instruments, net
|
|
|
(63.0
|
)
|
|
|
(4.0
|
)
|
|
Income tax (benefit) expense
|
|
|
64.6
|
|
|
|
16.7
|
|
|
Income tax (paid) received
|
|
|
(10.9
|
)
|
|
|
(88.8
|
)
|
|
Interest expense, excluding interest amortization
|
|
|
91.7
|
|
|
|
50.4
|
|
|
Interest paid
|
|
|
(120.7
|
)
|
|
|
(46.9
|
)
|
|
Pension expense (benefit)
|
|
|
(7.8
|
)
|
|
|
2.0
|
|
|
Pension contributions (paid)
|
|
|
(36.0
|
)
|
|
|
(6.7
|
)
|
|
Change in current assets and liabilities (net of impact of business
combinations) and other
|
|
|
(466.6
|
)
|
|
|
(161.7
|
)
|
|
(Gain) loss from discontinued operations
|
|
|
0.6
|
|
|
|
0.5
|
|
|
Net cash used in operating activities
|
|
|
(118.3
|
)
|
|
|
(88.3
|
)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Additions to properties
|
|
|
(180.0
|
)
|
|
|
(71.1
|
)
|
|
Proceeds from sales of properties and other assets
|
|
|
42.0
|
|
|
|
2.4
|
|
|
Investment in MillerCoors
|
|
|
—
|
|
|
|
(413.7
|
)
|
|
Return of capital from MillerCoors
|
|
|
—
|
|
|
|
283.4
|
|
|
Other
|
|
|
5.9
|
|
|
|
(6.5
|
)
|
|
Net cash used in investing activities
|
|
|
(132.1
|
)
|
|
|
(205.5
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock, net
|
|
|
—
|
|
|
|
2,526.4
|
|
|
Exercise of stock options under equity compensation plans
|
|
|
0.3
|
|
|
|
4.2
|
|
|
Dividends paid
|
|
|
(88.3
|
)
|
|
|
(88.3
|
)
|
|
Debt issuance costs
|
|
|
(3.7
|
)
|
|
|
(14.2
|
)
|
|
Payments on debt and borrowings
|
|
|
(1,501.1
|
)
|
|
|
(10.3
|
)
|
|
Proceeds on debt and borrowings
|
|
|
1,536.0
|
|
|
|
20.9
|
|
|
Net proceeds from (payments on) revolving credit facilities and
commercial paper
|
|
|
131.0
|
|
|
|
2.5
|
|
|
Change in overdraft balances and other
|
|
|
6.1
|
|
|
|
17.3
|
|
|
Net cash provided by financing activities
|
|
|
80.3
|
|
|
|
2,458.5
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(170.1
|
)
|
|
|
2,164.7
|
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
4.2
|
|
|
|
7.3
|
|
|
Balance at beginning of year
|
|
|
560.9
|
|
|
|
430.9
|
|
|
Balance at end of period
|
|
|
$
|
395.0
|
|
|
|
$
|
2,602.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170503005356/en/
Source: Molson Coors