DENVER & MONTREAL--(BUSINESS WIRE)--Aug. 7, 2012--
Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today provided
historical pro forma financial results for its Central Europe business,
formerly called StarBev, which was acquired on June 15, 2012. These
unaudited pro forma statements of operations have been converted from
IFRS accounting to US GAAP accounting and adjusted to reflect the
Company’s accounting policies and to make the presentation more
comparable on a go-forward basis. These unaudited statements present the
Central Europe operation’s historical performance as if the StarBev
acquisition had been completed at the beginning of 2011 and include the
four quarters and full year of 2011, as well as the first two quarters
of 2012.1
Molson Coors president and chief executive officer Peter Swinburn said,
“During the quarter, we financed and closed the acquisition of StarBev,
now called Molson Coors Central Europe. We completed the acquisition on
June 15, 2012, with a final purchase price of €2.7 billion, equivalent
to $3.4 billion. We believe the EBITDA margins are sustainable,
synergies will be delivered and capital spend will be lower than our
original expectation.
“In pro forma US GAAP, the purchase price represents a multiple of
10.8-times 2011 underlying EBITDA.2 This is a very reasonable
multiple for a business with a good long-term growth profile, and we
expect it to be earnings accretive in the first full year. For 2011,
Central Europe pro forma results under US GAAP included net sales of
$940 million, underlying pretax income of $182 million, and underlying
EBITDA of $317 million. Gross margin as a percent of net sales was 44%,
underlying EBITDA margin was 34%, and underlying operating margin was
19%. These results confirm that the business has a solid margin
structure from which to grow.” Unadjusted pro forma pretax income for
2011 was $175 million.
Historical pro forma results under U.S. GAAP have been prepared to
provide comparable information in all periods presented. Pro forma
adjustments include, but are not limited to, purchase accounting
valuation adjustments, interest expense related to extinguished debt,
and acquisition-related expenses. For more detailed information
regarding the nature of these pro forma adjustments, please see the
Company’s acquisition-related Form 8-K/A. Underlying results have also
been adjusted to exclude certain Special and other Non-Core Items, as
described and reconciled in the tables of this release.
Footnotes:
(1) Unless otherwise indicated, all $ amounts are in U.S.
Dollars. The pro forma statements of operations include adjustments
directly attributable to the acquisition of StarBev. Pro forma amounts
include the results of operations for Central Europe for the periods
indicated on each statement. These amounts also include pro forma
adjustments as if MCCE had been acquired on December 26, 2010, the first
day of our 2011 fiscal year, including the effects of on-going
acquisition accounting impacts and eliminating operating costs and
expenses directly related to the transaction, but do not include
adjustments for costs related to integration activities following the
completion of the Aquisition, cost savings or synergies that have been
or may be achieved by the combined businesses. Pro forma amounts are not
necessarily indicative of what the results would have been had we
operated the businesses since December 26, 2010, and do not purport to
be indicative of future operating results.
(2) Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA), excluding special and other non-core items. The
Company calculates non-GAAP underlying pro forma EBITDA and pretax
income by excluding special and other non-core items from the nearest
U.S. GAAP earnings measure, which is income before income taxes.
Overview of Molson Coors
Molson Coors Brewing Company is one of the world’s largest brewers. The
Company’s operating segments include Canada, the United States, Central
Europe, the United Kingdom, and Molson Coors International (MCI). The
Company has a diverse portfolio of owned and partner brands, including
signature brands Coors Light, Molson Canadian, Staropramen and Carling.
Molson Coors is listed on the 2011 Dow Jones Sustainability Index
(DJSI), the most recognized global benchmark of sustainability among
global corporations. For more information on Molson Coors Brewing
Company, visit the company’s web site, www.molsoncoors.com.
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 StarBev, retain key
employees and achieve planned cost synergies; pension plan costs;
availability or increase in the cost of packaging materials; our ability
to maintain manufacturer/distribution agreements; impact of competitive
pricing and product pressures; our ability to implement our strategic
initiatives, including executing and realizing cost savings; changes in
legal and regulatory requirements, including the regulation of
distribution systems; increase in the cost of commodities used in the
business; our ability to maintain brand image, reputation and product
quality; our ability to maintain good labor relations; changes in our
supply chain system; additional impairment charges; the impact of
climate change and the availability and quality of water; the ability of
MillerCoors to integrate operations and technologies; lack of
full-control over the operations of MillerCoors; the ability of
MillerCoors to maintain good relationships with its distributors; and
other risks discussed in our filings with the SEC, including our Annual
Report on Form 10-K for the year-ended December 31, 2011, which are
available from the SEC. 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.
Molson Coors Central Europe Pro Forma Results
of Operations, Underlying EBITDA and Reconciliations to the Nearest GAAP
Measure
Molson Coors Central Europe Pro Forma Results of Operations and
Underlying EBITDA
|
(In Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter
|
|
|
|
|
2nd Quarter
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
March 31, 2012
|
|
|
|
|
March 31, 2011
|
|
|
|
|
June 30, 2012
|
|
|
|
|
June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters
|
|
|
|
|
|
2.235
|
|
|
|
|
|
|
2.193
|
|
|
|
|
|
|
4.137
|
|
|
|
|
|
|
4.079
|
|
Net sales
|
|
|
|
|
$
|
139.4
|
|
|
|
|
|
$
|
147.5
|
|
|
|
|
|
$
|
258.4
|
|
|
|
|
|
$
|
297.9
|
|
Cost of goods sold
|
|
|
|
|
|
(96.7
|
)
|
|
|
|
|
|
(95.7
|
)
|
|
|
|
|
|
(143.0
|
)
|
|
|
|
|
|
(151.0
|
)
|
Gross profit
|
|
|
|
|
|
42.7
|
|
|
|
|
|
|
51.8
|
|
|
|
|
|
|
115.4
|
|
|
|
|
|
|
146.9
|
|
Marketing, general and administrative expenses
|
|
|
|
|
|
(52.2
|
)
|
|
|
|
|
|
(45.7
|
)
|
|
|
|
|
|
(68.8
|
)
|
|
|
|
|
|
(75.6
|
)
|
Special items, net
|
|
|
|
|
|
-
|
|
|
|
|
|
|
(1.1
|
)
|
|
|
|
|
|
-
|
|
|
|
|
|
|
(0.4
|
)
|
Operating income (loss)
|
|
|
|
|
|
(9.5
|
)
|
|
|
|
|
|
5.0
|
|
|
|
|
|
|
46.6
|
|
|
|
|
|
|
70.9
|
|
Interest income (expense), net
|
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
|
1.4
|
|
|
|
|
|
|
(0.6
|
)
|
|
|
|
|
|
0.7
|
|
Other (expense) income, net
|
|
|
|
|
|
(0.2
|
)
|
|
|
|
|
|
-
|
|
|
|
|
|
|
0.2
|
|
|
|
|
|
|
0.9
|
|
U.S. GAAP: Income (loss) before income taxes
|
|
|
|
|
|
(9.8
|
)
|
|
|
|
|
|
6.4
|
|
|
|
|
|
|
46.2
|
|
|
|
|
|
|
72.5
|
|
Add special and other non-core items(1)
|
|
|
|
|
|
-
|
|
|
|
|
|
|
1.1
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
0.4
|
|
Non-GAAP: Underlying pretax income (loss)
|
|
|
|
|
|
(9.8
|
)
|
|
|
|
|
|
7.5
|
|
|
|
|
|
|
46.2
|
|
|
|
|
|
|
72.9
|
|
Depreciation and amortization
|
|
|
|
|
|
26.4
|
|
|
|
|
|
|
28.2
|
|
|
|
|
|
|
29.1
|
|
|
|
|
|
|
32.1
|
|
Interest (income) expense, net
|
|
|
|
|
|
0.1
|
|
|
|
|
|
|
(1.4
|
)
|
|
|
|
|
|
0.6
|
|
|
|
|
|
|
(0.7
|
)
|
Non-GAAP: EBITDA(2)
|
|
|
|
|
$
|
16.7
|
|
|
|
|
|
$
|
34.3
|
|
|
|
|
|
$
|
75.9
|
|
|
|
|
|
$
|
104.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Quarter
|
|
|
|
|
4th Quarter
|
|
|
|
|
Full Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2011
|
|
|
|
|
December 31, 2011
|
|
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
|
|
|
|
Volume in hectoliters
|
|
|
|
|
|
4.321
|
|
|
|
|
|
|
2.683
|
|
|
|
|
|
|
13.276
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$
|
314.8
|
|
|
|
|
|
$
|
179.8
|
|
|
|
|
|
$
|
940.0
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
|
|
(163.7
|
)
|
|
|
|
|
|
(113.7
|
)
|
|
|
|
|
|
(524.1
|
)
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
151.1
|
|
|
|
|
|
|
66.1
|
|
|
|
|
|
|
415.9
|
|
|
|
|
|
|
Marketing, general and administrative expenses
|
|
|
|
|
|
(64.1
|
)
|
|
|
|
|
|
(49.4
|
)
|
|
|
|
|
|
(234.8
|
)
|
|
|
|
|
|
Special items, net
|
|
|
|
|
|
(1.0
|
)
|
|
|
|
|
|
(4.5
|
)
|
|
|
|
|
|
(7.0
|
)
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
86.0
|
|
|
|
|
|
|
12.2
|
|
|
|
|
|
|
174.1
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
|
|
|
0.9
|
|
|
|
|
|
|
0.5
|
|
|
|
|
|
|
3.5
|
|
|
|
|
|
|
Other (expense) income, net
|
|
|
|
|
|
(2.7
|
)
|
|
|
|
|
|
(1.1
|
)
|
|
|
|
|
|
(2.9
|
)
|
|
|
|
|
|
U.S. GAAP: Income (loss) before income taxes
|
|
|
|
|
|
84.2
|
|
|
|
|
|
|
11.6
|
|
|
|
|
`
|
|
174.7
|
|
|
|
|
|
|
Add special and other non-core items(1)
|
|
|
|
|
|
1.0
|
|
|
|
|
|
|
4.5
|
|
|
|
|
|
|
7.0
|
|
|
|
|
|
|
Non-GAAP: Underlying pretax income (loss)
|
|
|
|
|
|
85.2
|
|
|
|
|
|
|
16.1
|
|
|
|
|
|
|
181.7
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
36.6
|
|
|
|
|
|
|
42.2
|
|
|
|
|
|
|
139.1
|
|
|
|
|
|
|
Interest (income) expense, net
|
|
|
|
|
|
(0.9
|
)
|
|
|
|
|
|
(0.5
|
)
|
|
|
|
|
|
(3.5
|
)
|
|
|
|
|
|
Non-GAAP: EBITDA(2)
|
|
|
|
|
$
|
120.9
|
|
|
|
|
|
$
|
57.8
|
|
|
|
|
|
$
|
317.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) The following special and
other non-core items have been excluded from underlying pretax earnings.
For 2011, special and other non-core items included restructuring and
severance costs totaling $7.0 million. During the 2nd quarter of 2012,
special and other non-core items included an $8.6 million charge related
to a non-cash fair value adjustment to acquisition-date inventory, $2.5
million of acquisition-related expenses, and a $3.8 million unrealized
foreign exchange gain, which were added back as pro forma adjustments
and not underlying adjustments as they relate directly to the
Acquisition.
(2) Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA), excluding special and other non-core items. The Company
calculates non-GAAP underlying pro forma EBITDA and pretax income by
excluding special and other non-core items from the nearest U.S. GAAP
earnings measure, which is income before income taxes.
Pretax underlying income and underlying EBITDA 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. Our management uses underlying income and underlying EBITDA as
measures of operating performance to assist in comparing performance
from period to period on a consistent basis; as measures 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. We believe that underlying income and underlying EBITDA
performance are used by and 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 items such as special and other non-core items and
depreciation and amortization expense, which can vary substantially from
company to company depending upon accounting methods and book value of
assets and capital structure.

Source: Molson Coors Brewing Company
Molson Coors Brewing Company
News
Media
Colin Wheeler, 303-927-2443
or
Investor
Relations
Dave Dunnewald, 303-927-2334