Press Release
4th Quarter Summary of Operations (2007)
February 12, 2008
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
| Thirteen Weeks Ended | Fourteen Weeks Ended | Fifty-two Weeks Ended | Fifty-three Weeks Ended | |
| December 30, 2007 | December 31, 2006 | December 30, 2007 | December 31, 2006 | |
| Volume in barrels | 10,456 | 10,456 | 42,051 | 42,143 |
| Sales | $ 2,167,221 | $ 2,100,969 | $ 8,319,673 | $ 7,901,614 |
| Excise taxes | (566,915) | (569,679) | (2,129,081) | (2,056,629) |
| Net Sales | 1,600,306 | 1,531,290 | 6,190,592 | 5,844,985 |
| Cost of goods sold | (978,558) | (927,132) | (3,702,921) | (3,481,081) |
| Gross profit | 621,748 | 604,158 | 2,487,671 | 2,363,904 |
| Marketing, general and administrative expenses | (419,666) | (434,160) | (1,734,408) | (1,705,405) |
| Special items, net | (23,247) | 3,720 | (112,194) | (77,404) |
| Operating income | 178,835 | 173,718 | 641,069 | 581,095 |
| Interest expense, net | (24,361) | (29,664) | (99,875) | (126,781) |
| Debt extinguishment costs | - | - | (24,478) | - |
| Other (expense) income, net | (450) | 8,511 | 17,662 | 17,736 |
| Income from continuing operations before income taxes and minority interests | 154,024 | 152,565 | 534,378 | 472,050 |
| Income tax benefit (expense) | 23,858 | (37,180) | (4,186) | (82,405) |
| Income from continuing operations before minority interests | 177,882 | 115,385 | 530,192 | 389,645 |
| Minority interests in net income of consolidated entities | (1,703) | (3,286) | (15,318) | (16,089) |
| Income from continuing operations | 176,179 | 112,099 | 514,874 | 373,556 |
| Loss from discontinued operations, net of tax | (3,029) | (12,852) | (17,682) | (12,525) |
| Net income | $ 173,150 | $ 99,247 | $ 497,192 | $ 361,031 |
| Basic income (loss) per share: | ||||
| From continuing operations | $ 0.98 | $ 0.65 | $ 2.88 | $ 2.17 |
| From discontinued operations | (0.02) | (0.08) | (0.10) | (0.07) |
| Basic net income per share | $ 0.96 | $ 0.57 | $ 2.78 | $ 2.10 |
| Diluted income (loss) per share: | ||||
| From continuing operations | $ 0.96 | $ 0.64 | $ 2.84 | $ 2.16 |
| From discontinued operations | (0.01) | (0.07) | (0.10) | (0.08) |
| Diluted net income per share | $ 0.95 | $ 0.57 | $ 2.74 | $ 2.08 |
| Weighted average shares - basic | 180,217 | 173,002 | 178,681 | 172,166 |
| Weighted average shares - diluted | 182,946 | 174,374 | 181,437 | 173,312 |
| Dividends per share | $ 0.16 | $ 0.16 | $ 0.64 | $ 0.64 |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CANADA SEGMENT RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
| Thirteen Weeks Ended | Fourteen Weeks Ended | Fifty-two Weeks Ended | Fifty-three Weeks Ended | |
| December 30, 2007 | December 31, 2006 | December 30, 2007 | December 31, 2006 | |
| Volume in barrels | 1,891 | 2,099 | 8,153 | 8,282 |
| Sales | $ 641,756 | $ 598,655 | $ 2,470,846 | $ 2,346,073 |
| Excise taxes | (147,116) | (145,646) | (557,671) | (552,465) |
| Net sales | 494,640 | 453,009 | 1,913,175 | 1,793,608 |
| Cost of goods sold | (256,830) | (221,804) | (984,973) | (883,649) |
| Gross profit | 237,810 | 231,205 | 928,202 | 909,959 |
| Marketing, general and administrative expenses | (111,204) | (103,283) | (447,630) | (439,920) |
| Special items, net | (3,706) | - | (75,159) | - |
| Operating income | 122,900 | 127,922 | 405,413 | 470,039 |
| Other income, net | 2,986 | 5,484 | 21,526 | 13,228 |
| Earnings before income taxes and minority interests | $ 125,886 | $ 133,406 | $ 426,939 | $ 483,267 |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
UNITED STATES SEGMENT RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
| Thirteen Weeks Ended | Fourteen Weeks Ended | Fifty-two Weeks Ended | Fifty-three Weeks Ended | |
| December 30, 2007 | December 31, 2006 | December 30, 2007 | December 31, 2006 | |
| Volume in barrels | 5,947 | 5,828 | 24,247 | 23,471 |
| Sales | $ 783,543 | $ 752,279 | $ 3,202,440 | $ 3,037,488 |
| Excise taxes | (107,060) | (102,838) | (437,464) | (417,609) |
| Net sales | 676,483 | 649,441 | 2,764,976 | 2,619,879 |
| Cost of goods sold | (431,552) | (414,521) | (1,715,058) | (1,645,598) |
| Gross profit | 244,931 | 234,920 | 1,049,918 | 974,281 |
| Marketing, general and administrative expenses | (172,600) | (183,856) | (754,738) | (744,795) |
| Special items, net | (6,724) | - | (9,492) | (73,652) |
| Operating income | n65,607 | 51,064 | 285,688 | 155,834 |
| Other (expense) income, net | (831) | 103 | 148 | 3,238 |
| Earnings before income taxes and minority interests | $ 64,776 | $ 51,167 | $ 285,836 | $ 159,072 |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
EUROPE SEGMENT RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
| Thirteen Weeks Ended | Fourteen Weeks Ended | Fifty-two Weeks Ended | Fifty-three Weeks Ended | |
| December 30, 2007 | December 31, 2006 | December 30, 2007 | December 31, 2006 | |
| Volume in barrels | 2,617 | 2,930 | 9,652 | 10,390 |
| Sales | $ 740,556 | $ 748,927 | $ 2,640,891 | $ 2,512,892 |
| Excise taxes | (312,739) | (321,195) | (1,133,946) | (1,086,555) |
| Net sales | 427,817 | 427,732 | 1,506,945 | 1,426,337 |
| Cost of goods sold | (289,484) | (289,878) | (1,000,445) | (949,513) |
| Gross profit | 138,333 | 137,854 | 506,500 | 476,824 |
| Marketing, general and administrative expenses | (103,838) | (111,989) | (421,557) | (400,469) |
| Special items, net | (1,423) | (861) | (14,104) | (9,034) |
| Operating income | 33,072 | 25,004 | 70,839 | 67,321 |
| Interest income, net | 2,831 | 3,057 | 11,459 | 11,687 |
| Other income (expense), net | 745 | 3,358 | (174) | 4,824 |
| Earnings before income taxes and minority interests | $ 36,648 | $ 31,419 | $ 82,124 | $ 83,832 |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CORPORATE RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
| Thirteen Weeks Ended | Fourteen Weeks Ended | Fifty-two Weeks Ended | Fifty-three Weeks Ended | |
| December 30, 2007 | December 31, 2006 | December 30, 2007 | December 31, 2006 | |
| Net sales (1) | $ 1,366 | $ 1,108 | $ 5,496 | $ 5,161 |
| Cost of goods sold (1) | (692) | (929) | (2,445) | (2,321) |
| Gross profit | 674 | 179 | 3,051 | 2,840 |
| General and administrative expenses | (32,024) | (35,032) | (110,483) | (120,221) |
| Special items, net | (11,394) | 4,581 | (13,439) | 5,282 |
| Operating loss | (42,744) | (30,272) | (120,871) | (112,099) |
| Interest expense, net | (27,192) | (32,721) | (111,334) | (138,468) |
| Debt extinguishment costs | - | - | (24,478) | - |
| Other expense, net | (3,350) | (434) | (3,838) | (3,554) |
| Loss before income taxes and minority interests | $ (73,286) | $ (63,427) | $ (260,521) | $ (254,121) |
(1) The amounts shown are reflective of revenues and costs associated with the marketing of the Company's intellectual property, including trademarks and brands.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
| As of | ||
| December 30, 2007 | December 31, 2006 | |
| Assets | ||
| Cash and cash equivalents | $ 377,023 | $ 182,186 |
| Receivables, net | 871,152 | 828,599 |
| Total inventories | 369,521 | 319,538 |
| Other, net | 159,118 | 128,033 |
| Total current assets | 1,776,814 | 1,458,356 |
| Properties, less accumulated depreciation of $2,714,170 and $2,615,000, respectively | 2,696,153 | 2,421,484 |
| Goodwill and intangible assets, net | 8,385,849 | 7,363,970 |
| Other | 592,750 | 359,603 |
| Total assets | $ 13,451,566 | $ 11,603,413 |
| Liabilities and stockholders' equity | ||
| Accounts payable | $ 380,699 | $ 419,650 |
| Accrued expenses and other | 1,350,597 | 1,376,025 |
| Short-term borrowings | 4,281 | 4,441 |
| Total current liabilities | 1,735,577 | 1,800,116 |
| Long-term debt | 2,260,596 | 2,129,845 |
| Pension and post-retirement benefits | 677,786 | 753,697 |
| Other | 1,584,465 | 1,055,617 |
| Total liabilities | 6,258,424 | 5,739,275 |
| Minority interests | 43,751 | 46,782 |
| Total stockholders' equity | 7,149,391 | 5,817,356 |
| Total liabilities and stockholders' equity | $ 13,451,566 | $ 11,603,413 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
| For the Years Ended | ||
| December 30, 2007 | December 31, 2006 | |
| Cash flows from operating activities: | ||
| Net income | $ 497,192 | $ 361,031 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 345,843 | 438,354 |
| Change in working capital and other, net | (226,998) | 33,859 |
| Net cash provided by operating activities | 616,037 | 833,244 |
| Cash flows from investing activities: | ||
| Additions to properties and intangible assets | (428,349) | (446,376) |
| Proceeds from sales of assets and businesses, net | 38,054 | 145,103 |
| Other, net | (48,852) | 6,460 |
| Net cash used in investing activities | (439,147) | (294,813) |
| Cash flows from financing activities: | ||
| Exercise of stock options under equity compensation plans | 209,531 | 83,348 |
| Dividends paid | (131,769) | (128,353) |
| Net borrowings of debt | (63,472) | (355,363) |
| Other | (5,855) | (871) |
| Net cash provided by (used in) financing activities | 8,435 | (401,239) |
| Cash and cash equivalents: | ||
| Net increase (decrease) in cash and cash equivalents | 185,325 | 137,192 |
| Effect of foreign exchange rate changes on cash and cash equivalents | 9,512 | 5,581 |
| Balance at beginning of year | 182,186 | 39,413 |
| Balance at end of period | $ 377,023 | $ 182,186 |