九色社区 Holdings Reports Third Quarter 2009 Results
Third Quarter Highlights
-- Reported net income and earnings per diluted share of $108 million and
$0.67 , respectively
-- Net income before certain items increases to $131 million , or $0.81 per
diluted share
-- Gross profit improves to 16.0% of net sales
-- Segment income rises to 11.8% of net sales
-- Segment income on a currency and pension neutral basis increases 14.7%
-- Net cash provided by operating activities increases 65%
-- Company paid down more than $500 million in debt
Net sales in the third quarter were
Gross profit in the quarter was
Selling and administrative expense in the third quarter was
Segment income (a non-GAAP measure defined by the Company as gross profit less selling and administrative expense) in the third quarter was
Commenting on the results,
Interest expense in the third quarter was
During the third quarter, the Company recorded a restructuring charge of
"It is always difficult to make the decision to close a plant and we do so only after thorough analysis and consideration. However, we expect that these actions will allow us to better align demand with capacity and will increase utilization rates throughout our North American system," Mr. Conway noted.
On
During the third quarter, the Company determined that it considered it more likely than not that a portion of its deferred tax assets in
Reported net income attributable to
The following table reconciles reported net income and diluted earnings per share attributable to
Three Months Nine Months
Ended Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Net income as reported $108 $114 $253 $240
Items, net of tax:
Provision for
restructuring 35 2 37 3
Loss/(gain)on sale of
assets 4 (1) 3
Loss from early
extinguishments of debt 23 23 2
Closure of
non-consolidated PET
joint venture 5
Tax adjustments (35) (5) (35) (5)
--- -- --- --
Net income before the
above items $131 $115 $282 $243
==== ==== ==== ====
Earnings per diluted
share as reported $0.67 $0.70 $1.56 $1.47
Diluted earnings per share
before the above items $0.81 $0.70 $1.74 $1.49
Net income before the above items and diluted earnings per share before the above items are non-GAAP measures.
Nine Month Results
For the first nine months of 2009, net sales were
Gross profit for the nine month period improved to 15.7% of net sales over the 15.2% of net sales in the first nine months of 2008. For the nine months, gross profit was
Selling and administrative expense for the nine month period ended
Segment income in the first nine months of 2009 was
For the first nine months of 2009, interest expense was
Reported net income attributable to
During the first nine months of 2009, the Company recorded a net charge of
Net debt (a non-GAAP measure defined by the Company as total debt less cash) was
Debt and cash amounts were:
September 30, June 30, December 31, September 30,
2009 2009 2008 2008
---- ---- ---- ----
Total debt $3,225 $3,735 $3,337 $3,533
Cash 438 706 596 332
--- --- --- ---
Net debt $2,787 $3,029 $2,741 $3,201
====== ====== ====== ======
Receivables
securitization $322 $272 $234 $308
==== ==== ==== ====
Non-GAAP Measures
Segment income (including segment income on a currency and pension neutral basis), free cash flow and net debt are not defined terms under U.S. generally accepted accounting principles (non-GAAP measures). In addition, the information presented above regarding net income before certain items does not conform to GAAP and includes non-GAAP measures. Non-GAAP measures should not be considered in isolation or as a substitute for net income, cash flow or total debt data prepared in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.
The Company views segment income and free cash flow as the principal measures of performance of its operations and for the allocation of resources. The Company believes net debt is a useful measure of the Company's debt levels and that net income before certain items can be used to evaluate the Company's ongoing operations. Segment income, free cash flow, net debt and net income before certain items are derived from the Company's Consolidated Statements of Operations and Cash Flows and Consolidated Balance Sheets, respectively, and reconciliations to segment income, free cash flow, net debt and net income before certain items can be found within this release.
Conference Call
The Company will hold a conference call tomorrow,
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors, including the Company's ability to grow in emerging markets, the Company's ability to successfully open and operate new facilities, including in
For more information, contact:
Unaudited Consolidated Statements of Operations, Statements of Cash Flows, Balance Sheets and Segment Information follow this page.
Consolidated Statements of Operations (Unaudited)
(in millions, except share and per share data)
Three Months Nine Months
Ended Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Net sales $2,282 $2,369 $6,021 $6,428
------ ------ ------ ------
Cost of products sold 1,868 1,938 4,936 5,285
Depreciation and amortization 49 56 142 165
-- -- --- ---
Gross profit (1) 365 375 943 978
Selling and administrative
expense 95 102 274 309
Provision for restructuring 40 3 42 4
(Gain)/loss on sale of assets (1) 2 (2)
Loss from early extinguishments
of debt 27 27 2
Interest expense 66 76 189 232
Interest income (1) (3) (4) (8)
Translation and
foreign exchange
adjustments (5) 5 (1) 6
--- --- --- ---
Income before income taxes
and equity earnings 144 190 418 433
Provision for income taxes 3 45 71 113
Equity earnings/(loss) in
affiliates (2) (4) 1
--- --- --- ---
Net income 141 143 343 321
Net income attributable to
noncontrolling interests (33) (29) (90) (81)
---- ---- ---- ----
Net income attributable to
九色社区 Holdings $108 $114 $253 $240
==== ==== ==== ====
Earnings per share attributable
to 九色社区 Holdings common
shareholders:
Basic $0.68 $0.71 $1.59 $1.50
===== ===== ===== =====
Diluted $0.67 $0.70 $1.56 $1.47
===== ===== ===== =====
Weighted average common
shares outstanding:
Basic 159,208,879 160,006,745 158,876,444 159,610,030
Diluted 162,120,722 163,441,406 161,714,586 163,173,502
Actual common shares
outstanding 160,605,953 161,121,816 160,605,953 161,121,816
(1) A reconciliation from gross profit to segment income is found on the
following page.
Consolidated Supplemental Financial Data (Unaudited)
(in millions)
Reconciliation from Gross Profit to Segment Income
The Company views segment income, as defined below, as a principal
measure of performance of its operations and for the allocation of
resources. Segment income is defined by the Company as gross profit
less selling and administrative expense. A reconciliation from gross
profit to segment income for the three and nine months ended
September 30 follows:
Three Months Nine Months
Ended Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Gross profit $365 $375 $943 $978
Selling and
administrative expense 95 102 274 309
-- --- --- ---
Segment income $270 $273 $669 $669
==== ==== ==== ====
Segment Information
Three Months Nine Months
Ended Ended
September 30, September 30,
Net Sales 2009 2008 2009 2008
--------- ---- ---- ---- ----
Americas Beverage $483 $519 $1,370 $1,471
North America Food 313 270 760 675
European Beverage 427 454 1,219 1,278
European Food 647 685 1,502 1,730
European Specialty Packaging 116 127 305 357
----- ----- ----- -----
Total reportable segments 1,986 2,055 5,156 5,511
Non-reportable segments 296 314 865 917
----- ----- ----- -----
Total net sales $2,282 $2,369 $6,021 $6,428
===== ===== ===== =====
Segment Income
--------------
Americas Beverage $59 $59 $162 $164
North America Food 52 34 99 65
European Beverage 74 74 219 207
European Food 85 89 208 192
European Specialty Packaging 10 8 19 20
----- ----- ----- -----
Total reportable segments 280 264 707 648
Non-reportable segments 46 45 134 127
Corporate and other unallocated
items (56) (36) (172) (106)
----- ----- ----- -----
Total segment income $270 $273 $669 $669
===== ===== ===== =====
CONSOLIDATED BALANCE SHEETS (CONDENSED & UNAUDITED)
(in millions)
September 30, 2009 2008
------------- ---- ----
Assets
Current assets
Cash and cash equivalents $438 $332
Receivables, net 1,054 1,067
Inventories 1,077 1,112
Prepaid expenses and other current assets 104 114
--- ---
Total current assets 2,673 2,625
----- -----
Goodwill 2,060 2,089
Property, plant and equipment, net 1,496 1,506
Other non-current assets 949 934
--- ---
Total $7,178 $7,154
====== ======
Liabilities and equity
Current liabilities
Short-term debt $52 $64
Current maturities of long-term debt 25 24
Other current liabilities 1,929 1,900
----- -----
Total current liabilities 2,006 1,988
Long-term debt, excluding current maturities 3,148 3,445
Other non-current liabilities 1,497 1,150
Noncontrolling interests 394 352
九色社区 Holdings shareholders' equity 133 219
--- ---
Total equity 527 571
--- ---
Total $7,178 $7,154
====== ======
Consolidated Statements of Cash Flows (Condensed & Unaudited)
(in millions)
Nine months ended September 30, 2009 2008
---- ----
Cash flows from operating activities
Net income $343 $321
Depreciation and amortization 142 165
Other, net (305) (632)
--- ---
Net cash provided by/(used for)
operating activities (A) 180 (146)
--- ---
Cash flows from investing activities
Capital expenditures (108) (114)
Other, net (2) (14)
- --
Net cash used for investing activities (110) (128)
--- ---
Cash flows from financing activities
Net change in debt (171) 145
Other, net (65) 4
-- ---
Net cash (used for)/provided by
financing activities (236) 149
--- ---
Effect of exchange rate changes on cash and cash
equivalents 8
---
Net change in cash and cash equivalents (158) (125)
Cash and cash equivalents at January 1 596 457
--- ---
Cash and cash equivalents at September 30 $438 $332
==== ====
(A) Free cash flow is defined by the Company as net cash provided
by/(used for) operating activities less capital expenditures. A
reconciliation from net cash provided by/(used for) operating
activities to free cash flow for the three and nine months ended
September 30 follows:
Three Months Nine Months
Ended Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Net cash provided by/(used
for) operating activities $343 $208 $180 ($146)
Capital expenditures (33) (43) (108) (114)
---- ---- ---- ----
Free cash flow $310 $165 $72 ($260)
==== ==== === =====
SOURCE
Timothy J. Donahue, Executive Vice President and Chief Financial Officer, +1-215-698-5088, or Ed Bisno, Bisno Communications, +1-212-717-7578