Press Release
3rd Quarter Summary of Operations (2007)
November 06, 2007
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
| | Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||
|---|---|---|---|---|
| | September 30, 2007 | September 24, 2006 | September 30, 2007 | September 24, 2006 |
| Volume in barrels | 11,217 | 11,243 | 31,595 | 31,286 |
| Sales | $ 2,257,233 | $ 2,126,652 | $ 6,152,452 | $ 5,800,645 |
| Excise taxes | (571,825) | (549,828) | (1,562,166) | (1,486,950) |
| Net Sales | 1,685,408 | 1,576,824 | 4,590,286 | 4,313,695 |
| Cost of goods sold | (987,304) | (907,305) | (2,724,363) | (2,553,949) |
| Gross profit | 698,104 | 669,519 | 1,865,923 | 1,759,746 |
| Marketing, general and administrative expenses | (461,050) | (434,106) | (1,314,742) | (1,271,245) |
| Special items, net | (55,337) | (28,453) | (88,947) | (81,124) |
| Operating income | 181,717 | 206,960 | 462,234 | 407,377 |
| Interest expense, net | (24,229) | (28,268) | (75,514) | (97,117) |
| Debt extinguishment costs | (24,478) | - | (24,478) | - |
| Other income, net | 1,919 | 6,421 | 18,112 | 9,225 |
| Income from continuing operations before income taxes and minority interests | 134,929 | 185,113 | 380,354 | 319,485 |
| Income tax benefit (expense) | 5,692 | (57,628) | (28,044) | (45,225) |
| Income from continuing operations before minority interests | 140,621 | 127,485 | 352,310 | 274,260 |
| Minority interests in net income of consolidated entities | (5,507) | (5,100) | (13,615) | (12,803) |
| Income from continuing operations | 135,114 | 122,385 | 338,695 | 261,457 |
| (Loss) gain from discontinued operations, net of tax | (442) | 13,409 | (14,653) | 327 |
| Net income | $ 134,672 | $ 135,794 | $ 324,042 | $ 261,784 |
| Basic income (loss) per share: | ||||
| From continuing operations | 0.75$ | 0.71$ | 1.90$ | 1.52$ |
| From discontinued operations | - | 0.08 | (0.08) | - |
| Basic net income per share | 0.75$ | 0.79$ | 1.82$ | 1.52$ |
| Diluted income (loss) per share: | ||||
| From continuing operations | 0.74$ | 0.70$ | 1.87$ | 1.51$ |
| From discontinued operations | - | 0.08 | (0.08) | - |
| Diluted net income per share | 0.74$ | 0.78$ | 1.79$ | 1.51$ |
| Weighted average shares - basic | 179,426 | 172,320 | 178,170 | 171,866 |
| Weighted average shares - diluted | 181,707 | 173,566 | 180,783 | 172,992 |
| Dividends per share | $ 0.16 | $ 0.16 | $ 0.48 | $ 0.48 |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CANADA SEGMENT RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
| | Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||
|---|---|---|---|---|
| | September 30, 2007 | September 24, 2006 | September 30, 2007 | September 24, 2006 |
| Volume in barrels | 2,283 | 2,339 | 6,262 | 6,183 |
| Sales | $ 704,695 | $ 673,630 | $ 1,829,090 | $ 1,747,418 |
| Excise taxes | (158,549) | (158,634) | (410,555) | (406,819) |
| Net sales | 546,146 | 514,996 | 1,418,535 | 1,340,599 |
| Cost of goods sold | (263,577) | (237,652) | (728,143) | (661,845) |
| Gross profit | 282,569 | 277,344 | 690,392 | 678,754 |
| Marketing, general and administrative expenses | (119,636) | (122,223) | (336,426) | (336,637) |
| Special items, net | (43,243) | - | (71,453) | - |
| Operating income | 119,690 | 155,121 | 282,513 | 342,117 |
| Other income, net | 1,374 | 5,941 | 18,540 | 7,744 |
| Earnings before income taxes | 121,064$ | 161,062$ | 301,053$ | 349,861$ |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
UNITED STATES SEGMENT RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
| | Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||
|---|---|---|---|---|
| | September 30, 2007 | September 24, 2006 | September 30, 2007 | September 24, 2006 |
| Volume in barrels | 6,471 | 6,257 | 18,300 | 17,643 |
| Sales | $ 857,243 | $ 809,833 | $ 2,418,897 | $ 2,285,209 |
| Excise taxes | (117,596) | (112,448) | (330,404) | (314,771) |
| Net sales | 739,647 | 697,385 | 2,088,493 | 1,970,438 |
| Cost of goods sold | (458,533) | (435,908) | (1,283,506) | (1,231,077) |
| Gross profit | 281,114 | 261,477 | 804,987 | 739,361 |
| Marketing, general and administrative expenses | (200,686) | (188,419) | (582,138) | (560,939) |
| Special items, net | (2,768) | (25,506) | (2,768) | (73,652) |
| Operating income | 77,660 | 47,552 | 220,081 | 104,770 |
| Other income, net | 81 | 1,231 | 979 | 3,135 |
| Earnings before income taxes | 77,741$ | 48,783$ | 221,060$ | 107,905 |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
EUROPE SEGMENT RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
| | Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||
|---|---|---|---|---|
| | September 30, 2007 | September 24, 2006 | September 30, 2007 | September 24, 2006 |
| Volume in barrels | 2,463 | 2,647 | 7,033 | 7,460 |
| Sales | $ 693,648 | $ 641,547 | $ 1,900,335 | $ 1,763,965 |
| Excise taxes | (295,680) | (278,746) | (821,207) | (765,360) |
| Net sales | 397,968 | 362,801 | 1,079,128 | 998,605 |
| Cost of goods sold | (263,904) | (233,533) | (710,961) | (659,635) |
| Gross profit | 134,064 | 129,268 | 368,167 | 338,970 |
| Marketing, general and administrative expenses | (113,917) | (96,288) | (317,719) | (288,480) |
| Special items, net | (7,281) | (2,287) | (12,681) | (8,173) |
| Operating income | 12,866 | 30,693 | 37,767 | 42,317 |
| Interest income, net | 2,926 | 2,941 | 8,628 | 8,630 |
| Other income (expense), net | 672 | 1,006 | (919) | 1,466 |
| Earnings before income taxes | $ 16,464 | $ 34,640 | $ 45,476 | $ 52,413 |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CORPORATE RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
CORPORATE RESULTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
| | Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||
|---|---|---|---|---|
| | September 30, 2007 | September 24, 2006 | September 30, 2007 | September 24, 2006 |
| Net sales (1) | $ 1,647 | $ 1,642 | $ 4,130 | $ 4,053 |
| Cost of goods sold (1) | (1,290) | (212) | (1,753) | (1,392) |
| Gross profit | 357 | 1,430 | 2,377 | 2,661 |
| General and administrative expenses | (26,811) | (27,176) | (78,459) | (85,189) |
| Special items, net | (2,045) | (660) | (2,045) | 701 |
| Operating loss | (28,499) | (26,406) | (78,127) | (81,827) |
| Interest expense, net | (27,155) | (31,209) | (84,142) | (105,747) |
| Debt extinguishment costs | (24,478) | - | (24,478) | - |
| Other expense, net | (208) | (1,757) | (488) | (3,120) |
| Loss before income taxes | $ (80,340) | $ (59,372) | $ (187,235) | $ (190,694) |
(1) The amounts shown are reflective of revenues and costs associated with the marketing of the Company's intellectual property, including trademarks and brands.
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
| | Thirty-Nine Weeks Ended | |
|---|---|---|
| | September 30, 2007 | September 24, 2006 |
| Cash flows from operating activities: | ||
| Net income | $ 324,042 | $ 261,784 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 254,896 | 338,456 |
| Change in working capital and other, net | (250,326) | 86,506 |
| Net cash provided by operating activities | 328,612 | 686,746 |
| Cash flows from investing activities: | ||
| Additions to properties and intangible assets | (329,409) | (314,872) |
| Proceeds from sale of assets and business, net | 35,615 | 126,178 |
| Other, net | (24,412) | (777) |
| Net cash used in investing activities | (318,206) | (189,471) |
| Cash flows from financing activities: | ||
| Issuance of stock under equity compensation plans | 179,345 | 40,509 |
| Dividends paid | (99,100) | (94,717) |
| Net proceeds from (payments on) debt | (25,390) | (286,112) |
| Other, net | (26,000) | (25,192) |
| Net cash provided by (used in) financing activities | 28,855 | (365,512) |
| Cash and cash equivalents: | ||
| Net increase in cash and cash equivalents | 39,261 | 131,763 |
| Effect of foreign exchange rate changes on cash and cash equivalents | 9,887 | 7,961 |
| Balance at beginning of year | 182,186 | 39,413 |
| Balance at end of period | $231,334 | $179,137 |
MOLSON COORS BREWING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
| | As of | |
|---|---|---|
| | September 30, 2007 | December 31, 2006 |
| Assets | ||
| Cash and cash equivalents | $ 231,334 | $ 182,186 |
| Receivables, net | 841,719 | 828,599 |
| Total inventories, net | 381,270 | 319,538 |
| Other, net | 115,883 | 128,033 |
| Total current assets | 1,570,206 | 1,458,356 |
| Properties, net | 2,679,775 | 2,421,484 |
| Goodwill and intangibles assets, net | 8,367,641 | 7,363,970 |
| Other | 523,636 | 359,603 |
| Total assets | $ 13,141,258 | $ 11,603,413 |
| Liabilities and stockholders' equity | ||
| Accounts payable | $315,771 | $419,650 |
| Accrued expenses an d other | 1,207,079 | 1,376,025 |
| Short-term borrowing and current portion of long-term debt | 37,978 | 4,441 |
| Total current liabilities | 1,560,828 | 1,800,116 |
| Long-term debt | 2,246,130 | 2,129,845 |
| Pension and post-retirement benefits | 712,460 | 753,697 |
| Other | 1,646,722 | 1,055,617 |
| Total liabilities | 6,166,140 | 5,739,275 |
| Minority interests | 45,861 | 46,782 |
| Total stockholders' equity | 6,929,257 | 5,817,356 |
| Total liabilities and stockholders' equity | $ 13,141,258 | $ 11,603,413 |