UNITED
STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): November 18, 2015
KEURIG
GREEN MOUNTAIN, INC.
(Exact
name of registrant as specified in its charter)
Delaware
(Jurisdiction
of Incorporation)
1-12340
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03-0339228
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(Commission File Number)
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(IRS Employer Identification Number)
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33 Coffee Lane, Waterbury, Vermont 05676
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(Address
of registrant's principal executive office)
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(802) 244-5621
(Registrant's telephone number)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On November 18, 2015, Keurig Green Mountain, Inc. (the "Company") issued
a press release announcing its fourth quarter and full fiscal year
results for the period ending September 26, 2015, and that it will hold
a live audio webcast to discuss its fourth quarter and full fiscal year
results. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference.
The information furnished in Item 2.02, including the Exhibit attached
hereto, shall not be deemed "filed" for any purpose, nor shall it be
deemed incorporated by reference in any filing under the Securities Act
of 1933, as amended, or the Securities Exchange Act of 1934, as amended,
regardless of any general incorporation language in any such filing.
Item 7.01 Regulation FD Disclosure
On November 18, 2015 the Company also announced that the Board of
Directors of the Company (the “Board”) has approved a 13% increase in
the indicated annualized cash dividend to $1.30 per share from $1.15.
The increase will take effect with the quarterly cash dividend payment
of $0.325 per share declared by the Board payable on February 16, 2016
to stockholders of record as of the close of business on January 15,
2016.
A copy of the press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference. The information furnished in Item
7.01, including the Exhibit attached hereto, shall not be deemed "filed"
for any purpose, nor shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Securities
Exchange Act of 1934, as amended, regardless of any general
incorporation language in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release of the Company dated November 18, 2015.
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KEURIG GREEN MOUNTAIN, INC.
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By:
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/s/ Peter G. Leemputte
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Peter G. Leemputte
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Chief Financial Officer and Treasurer
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Date: November 18, 2015
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EXHIBIT INDEX
99.1
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Press Release of the Company dated November 18, 2015.
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Exhibit 99.1
Keurig
Green Mountain Reports Fourth Quarter and Fiscal Year 2015 Financial
Results
Board
of Directors Authorizes a 13% Dividend Increase
-
Non-GAAP1
EPS of $0.85 and GAAP EPS of $0.61 for the quarter
-
Non-GAAP
EPS of $3.56 and GAAP EPS of $3.14 for the full year 2015
-
Net
sales of $1.04 billion for the quarter and $4.5 billion for the full
year
-
Generated
2015 free cash flow of $344 million
-
Repurchased
approximately 4% or $350 million in common shares from the beginning
of the fiscal fourth quarter 2015 through November 18
-
Outlook
includes fiscal year 2016 currency neutral revenue growth of flat to
low single digits with Non-GAAP EPS of $3.25-$3.45 and free cash flow
in the range of $420-$500 million
WATERBURY, Vt.--(BUSINESS WIRE)--November 18, 2015--Keurig Green
Mountain, Inc. (Keurig) (NASDAQ: GMCR), a personal beverage system
company that has revolutionized the way consumers create and enjoy
beverages, today announced its business results for the 13 weeks and 52
weeks ended September 26, 2015.
“Our results for the quarter and the year reflect the competitive and
dynamic marketplace in which we operate as well as the steps we are
taking to position our Company for longer-term growth and value
creation,” said Brian Kelley, Keurig’s President and CEO. “I’m
particularly pleased with the benefits realized from our cost reduction
efforts as well as our strong cash generation, both of which exceeded
expectations in the fourth quarter. While we expect marketplace
conditions will remain challenging in the near term, we have a stronger
product line-up and price positioning as we enter the new holiday
season.”
Mr. Kelley continued, “Our priorities for 2016 are to reinvigorate our
hot system and continue the disciplined rollout of our Kold system. We
remain confident that our investments in the business and our multi-year
productivity program will deliver long-term value to shareholders.
Today’s announcement of the Board’s authorization of a 13% increase in
our dividend underscores our confidence in our future prospects and
continues our track record of delivering strong cash returns to our
shareholders.”
Fourth Quarter Fiscal 2015 Financial Review
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Thirteen weeks ended
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Thirteen weeks ended
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($ in millions except earnings per share)
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Sept 26, 2015
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Sept 27, 2014
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% Increase / (Decrease)
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Net sales
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$
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1,037.0
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$
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1,195.6
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(13
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)%
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Operating income:
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GAAP
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$
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144.2
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$
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228.8
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(37
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)%
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Non-GAAP
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197.0
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$
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248.0
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(21
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)%
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Net income:
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GAAP
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$
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94.6
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$
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141.1
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(33
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)%
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Non-GAAP
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$
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131.3
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$
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153.8
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(15
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)%
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Diluted income per share:
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GAAP
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$
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0.61
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$
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0.86
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(29
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)%
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Non-GAAP
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$
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0.85
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$
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0.94
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(10
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)%
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Note: Complete GAAP to Non-GAAP reconciliation tables provided with
this release.
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Net Sales by Product
Net sales of $1.0 billion decreased 13% versus the prior year period
with declines in brewer sales and pod sales. The net sales decline
includes an unfavorable impact from foreign currency exchange rates of
approximately 2%.
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Thirteen weeks ended
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Thirteen weeks ended
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($ in millions)
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Sept 26, 2015
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Sept 27, 2014
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$ Increase (Decrease)
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% Increase (Decrease)
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Pods
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$
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861.2
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$
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948.7
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$
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(87.5
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)
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(9
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)%
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Brewers and accessories
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123.6
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181.6
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(58.0
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)
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(32
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)%
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Subtotal
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984.8
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1,130.3
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(145.5
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)
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(13
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)%
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Other products and royalties
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52.2
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65.3
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(13.1
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)
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(20
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)%
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Total net sales
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$
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1,037.0
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$
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1,195.6
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$
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(158.6
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)
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(13
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)%
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Pods
-
Pod net sales were driven by a 4% decrease in equivalent servings2
volume and an approximately 6% decrease due to product mix. This was
partially offset by an approximately 2% increase due to net price
realization.3 Foreign currency exchange rates negatively
impacted pod net sales by approximately 2%.
-
For the Company’s U.S. At Home business, pod volumes fell by 3%. The
Company typically sees a build in customer and retailer inventory in
the fourth quarter in advance of the holiday season. In the fourth
quarter of 2014, the Company saw a much larger build in such
inventories, due in part to the SAP transition in the first quarter of
2015. While shipments were impacted by this comparison, consumer
demand for pods as measured by retail sales remains healthy. The
Company estimates that retail unit sales of pods grew 7% in the fourth
quarter of 2015.
Brewers and Accessories
-
For the quarter, 1.9 million Keurig® hot system brewers were sold
including 1.8 million sold by Keurig with 0.1 million reported sold by
Keurig’s licensed brewer partners. This brewer shipment number does
not account for consumer returns.
-
Brewer sales were driven by a 20% decrease in sales volume, an
approximately 10% decrease due to product mix and an approximately 1%
decrease due to net price realization. Foreign currency exchange rates
negatively impacted brewer and accessory net sales by approximately 1%.
Other Products
-
Sales of other products were driven by the unfavorable impact of
foreign exchange rates, the loss of a customer in our away from home
channel and our decision to focus and allocate resources on our pod
business.
-
For the quarter, GAAP gross margin declined 530 basis points to 32.3%
of net sales from 37.6% in the prior year period. Non-GAAP gross
margin declined approximately 300 basis points to 34.7% of net sales
from 37.6% in the prior year period. An $8.6 million obsolescence
charge related to BOLT® brewers negatively impacted both GAAP and
Non-GAAP gross margin. An abandonment and impairment of packaging
lines negatively impacted GAAP gross profit by $24 million and was
excluded from Non-GAAP gross profit. The following table quantifies
the changes in gross margin period to period:
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Change from Q4 Fiscal 2014 to Q4 Fiscal 2015
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Impairment and abandonment of packaging lines
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-230
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bps
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Unfavorable green coffee costs
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-220
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bps
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Shift in sales mix between pods, brewers and accessories, and other
products
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210
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bps
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Higher obsolescence expense of finished goods
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-120
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bps
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Mix primarily associated with pods
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-110
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bps
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Sales return favorability
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70
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bps
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Foreign currency rates
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-60
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bps
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Other items
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-70
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bps
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GAAP margin change
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-530
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bps
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Impairment and abandonment of packaging lines
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230
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bps
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Non-GAAP margin change
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-300
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bps
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|
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-
GAAP SG&A declined 20%, representing 17.0% of net sales for the
quarter as compared to 18.5% in the prior year period. Non-GAAP SG&A
decreased 20% representing 15.7% of sales for the quarter as compared
to 16.9% in the prior year period. The decrease in Non-GAAP SG&A over
the prior year period was primarily driven by declines in marketing
expense and compensation expense.
-
GAAP operating income declined 37%, representing 13.9% of net sales
for the quarter, compared to 19.1% in the prior year period.
-
Non-GAAP operating income declined 21%, representing 19.0% of net
sales in the quarter, compared to 20.7% in the prior year period.
-
The Company’s effective income tax rate was 32.3% for the quarter as
compared to 35.2% in the prior year period.
-
Diluted weighted average shares outstanding for the fourth quarter
were 155.2 million, down 6% from 164.4 million in the prior year
period. The reduction in shares outstanding from the prior year
quarter was driven by the Company’s share repurchases under its
previously announced share repurchase authorizations including a $700
million accelerated share repurchase (ASR) program, open market
purchases and 10(b)5-1 plans and the previously announced repurchase
of 5.2 million shares from Luigi Lavazza S.p.A. on March 3, 2015.
-
GAAP diluted EPS declined 29% from the prior year period to $0.61.
-
Non-GAAP diluted EPS declined 10% from the prior year period to $0.85.
Fiscal Year 2015 Financial Review
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($ in millions except earnings per share)
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Fiscal 2015
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Fiscal 2014
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% Increase / (Decrease)
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Net sales
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$
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4,520.0
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$
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4,707.7
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(4
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)%
|
Operating income:
|
|
|
|
|
|
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GAAP
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$
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765.4
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$
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947.2
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(19
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)%
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Non-GAAP
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$
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861.0
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$
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1,001.2
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(14
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)%
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Net income:
|
|
|
|
|
|
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GAAP
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$
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498.3
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$
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596.5
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(16
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)%
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Non-GAAP
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$
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565.8
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$
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632.9
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(11
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)%
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Diluted income per share:
|
|
|
|
|
|
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GAAP
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$
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3.14
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$
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3.74
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(16
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)%
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Non-GAAP
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$
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3.56
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$
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3.97
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(10
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)%
|
|
|
|
|
|
|
|
Note: Complete GAAP to Non-GAAP reconciliation tables provided with
this release.
|
|
Net Sales by Product
For the year, net sales of $4.5 billion declined 4% over the prior year.
The 4% net sales decline includes an unfavorable impact from foreign
currency exchange rates of approximately 1%.
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Net Sales by Product
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($ in millions)
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Fiscal 2015
|
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Fiscal 2014
|
|
$ Increase (Decrease)
|
|
% Increase (Decrease)
|
Pods
|
|
$
|
3,645.1
|
|
$
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3,604.5
|
|
$
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40.6
|
|
|
1
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%
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Brewers and accessories
|
|
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632.6
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|
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822.3
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|
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(189.7
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)
|
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(23
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)%
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Subtotal
|
|
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4,277.7
|
|
|
4,426.8
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|
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(149.1
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)
|
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(3
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)%
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Other products and royalties
|
|
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242.3
|
|
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280.9
|
|
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(38.6
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)
|
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(14
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)%
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Total net sales
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$
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4,520.0
|
|
$
|
4,707.7
|
|
$
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(187.7
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)
|
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(4
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)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pods
-
For the year, approximately 10.5 billion equivalent pod servings were
sold.
-
Pod sales were driven by an increase of approximately 7% due to
equivalent servings volume and a 2% increase due to net price
realization partially offset by a roughly 7% decrease due to product
mix. Foreign currency exchange rates negatively impacted pod net sales
by approximately 1%.
Brewers and Accessories
-
For the year, 9.2 million Keurig® hot system brewers were sold
including 8.7 million sold by Keurig with 0.5 million reported sold by
Keurig’s licensed brewer partners. This brewer shipment number does
not account for consumer returns.
-
Brewer net sales were driven by a decrease of 16% due to sales volume,
a 5% decline in net pricing and a roughly 1% decrease due to product
mix. Foreign currency exchange rates negatively impacted brewer net
sales by approximately 1%.
-
Additionally, accessories net sales decreased by $15 million.
Other Products
-
Sales of other products were primarily driven by the unfavorable
impact of foreign exchange rates as well as the loss of a customer in
our away from home channel and our decision to focus and allocate
resources on our pod business.
-
For the year, GAAP gross margin declined 300 basis points to 35.6% of
net sales from 38.6% in the prior year period. Non-GAAP gross margin
declined 250 basis points to 36.1% of net sales from 38.6% in the
prior year period. GAAP and Non-GAAP gross margin were negatively
impacted by $36 million in obsolescence charges related to Rivo®,
Bolt® and certain Keurig 2.0 brewers. Losses on abandonment and
impairment of packaging lines negatively impacted GAAP gross profit by
$24 million and was excluded from Non-GAAP gross profit. The following
table quantifies the changes in gross margin period to period:
|
|
|
|
|
|
|
|
Change from Fiscal 2014 to Fiscal 2015
|
Shift in sales mix between pods, brewers and accessories, and other
products
|
|
250
|
|
bps
|
Mix primarily associated with brewers
|
|
-160
|
|
bps
|
Higher obsolescence expense of finished goods
|
|
-160
|
|
bps
|
Unfavorable green coffee costs
|
|
-140
|
|
bps
|
Mix primarily associated with pods
|
|
-90
|
|
bps
|
Impairment and abandonment of packaging lines
|
|
-50
|
|
bps
|
Other items
|
|
50
|
|
bps
|
GAAP margin change
|
|
-300
|
|
bps
|
Impairment and abandonment of packaging lines
|
|
50
|
|
bps
|
Non-GAAP margin change
|
|
-250
|
|
bps
|
|
|
|
|
|
-
GAAP SG&A declined 5%, representing 18.3% of sales for the year as
compared to 18.5% in the prior year period. Non-GAAP SG&A decreased 5%
representing 17.0% of sales for the year as compared to 17.3% in the
prior year period. The decrease in Non-GAAP SG&A over the prior year
period was driven by declines in compensation expense and marketing
expense partially offset by higher research and development expenses
and significant investments in the Keurig KOLDTM beverage
®system.
-
GAAP operating income declined by 19%, representing 16.9% of net sales
for the year, down 320 basis points from 20.1% in the prior year
period.
-
Non-GAAP operating income decreased by 14%, representing 19.0% of net
sales in fiscal year 2015, down 230 basis points from 21.3% in the
prior year.
-
The Company’s effective income tax rate was 33.6% for the year as
compared to 35.4% in the prior year.
-
Diluted weighted average shares outstanding for the full year were
158.9 million, down from 159.6 million in 2014. The reduction in
shares outstanding was driven by the Company’s share repurchases under
its share repurchase program including a $700 million accelerated
share repurchase (ASR) program, open market purchases and 10(b)5-1
plans and the previously announced repurchase of 5.2 million shares
from Luigi Lavazza S.p.A. on March 3, 2015, partially offset by
dilution from the Coca-Cola and Lavazza equity transactions4.
-
GAAP diluted EPS decreased 16% from the prior year period to $3.14;
non-GAAP diluted EPS decreased 10% from the prior year period to $3.56.
Balance Sheet & Cash Flow Highlights
|
|
|
|
|
|
|
Balance Sheet & Cash Flow Highlights ($ in millions)
|
|
September 26, 2015
|
|
September 27, 2014
|
|
% Change
|
Cash and cash equivalents, including restricted cash
|
|
$
|
89.8
|
|
$
|
761.6
|
|
(88
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)%
|
Accounts receivables, net
|
|
$
|
517.9
|
|
$
|
621.5
|
|
(17
|
)%
|
Inventories
|
|
$
|
692.0
|
|
$
|
835.2
|
|
(17
|
)%
|
Raw materials & supplies
|
|
$
|
227.5
|
|
$
|
169.9
|
|
34
|
%
|
Coffee
|
|
$
|
126.4
|
|
$
|
74.4
|
|
70
|
%
|
Packaging & other raw materials
|
|
$
|
101.1
|
|
$
|
95.5
|
|
6
|
%
|
Finished goods
|
|
$
|
464.5
|
|
$
|
665.3
|
|
(30
|
)%
|
Brewers & accessories
|
|
$
|
314.7
|
|
$
|
477.5
|
|
(34
|
)%
|
Pods
|
|
$
|
133.7
|
|
$
|
164.9
|
|
(19
|
)%
|
Other
|
|
$
|
16.1
|
|
$
|
22.9
|
|
(30
|
)%
|
Debt outstanding and capital lease and financing obligations
|
|
$
|
451.5
|
|
$
|
278.5
|
|
62
|
%
|
Cash provided by operating activities (1)
|
|
$
|
754.9
|
|
$
|
719.4
|
|
5
|
%
|
Free cash flow (1)
|
|
$
|
343.8
|
|
$
|
381.6
|
|
(10
|
)%
|
|
|
|
|
|
|
|
(1) Free cash flow is calculated by subtracting capital
expenditures for fixed assets from net cash provided by operating
activities as reported in the unaudited statement of cash flows.
Productivity Program
The Company previously announced a multi-year productivity program and
continues to expect $300 million in savings over the next three years
with approximately $100 million of savings in fiscal 2016.
The Company incurred $16 million in pre-tax charges related to its
restructuring and productivity programs in its fiscal fourth quarter
2015 of which $12 million are expected to result in cash expenditures.
Pre-tax restructuring charges associated with the productivity program
are expected to be $14-$19 million in fiscal year 2016 of which
approximately $10-14 million are expected to be cash expenditures.
Share Repurchases
Pursuant to the Company’s share repurchase program, the Company
repurchased 9.5 million shares in fiscal year 2015 at a cost of $1,033
million. This includes 1.99 million shares repurchased in the fiscal
fourth quarter at a cost of $115 million. From the end of the Company’s
fiscal year 2015 through November 18, 2015, the Company repurchased an
additional 4.4 million shares at a cost of $235 million.
As of November 18, 2015, the Company has $914 million remaining on its
share repurchase authorization.
Dividend Declaration
Reflecting its commitment to return capital to shareholders and its
expectation for continued strong cash flow generation, the Company
announced a 13% increase in its indicated annualized dividend to $1.30
per share from $1.15. The increase will take effect with the February
16, 2016 quarterly dividend payment of $0.325 declared by the Board
payable to shareholders of record as of the close of business on January
15, 2016.
Business Outlook and Other Forward-Looking Information
The Company provided its outlook for fiscal year 2016:
Fiscal Year 2016
-
Currency neutral net sales growth of flat to low single digits
compared to fiscal year 2015. At current exchange rates, foreign
currency is expected to negatively impact net sales growth by
approximately 1%.
-
An annual effective tax rate of approximately 33.0 % to 33.5%.
-
Non-GAAP earnings per share of $3.25-$3.45. This includes an expected
$100 million in productivity savings, additional share repurchase, an
approximately $0.16 negative impact from foreign currency at current
exchange rates. The midpoint of the guidance range includes a pre-tax
estimated income statement loss of $125 million from the Keurig® KOLDTM
beverage system. Non-GAAP EPS guidance excludes any restructuring or
one-time charges related to the Company’s productivity initiative.
-
Free cash flow in the range of $420 million to $500 million.
-
Capital investment in the range of $225 million to $275 million, with
total depreciation and amortization expense of $290 million.
Conference Call and Webcast
Keurig will be discussing these financial results with analysts and
investors in a conference call and live webcast available via the
Internet at 5:00 p.m. ET today, November 18, 2015. The call is
accessible via live webcast from the events section of the Investor
Relations portion of the Company’s website at http://investor.keuriggreenmountain.com/events.cfm.
The Company archives the latest conference call for a period of time. A
replay of the conference call also will be available by telephone at
(719) 457-0820, passcode 784384 from 9:00 p.m. ET on November 18, 2014
through 9:00 p.m. ET on Monday, November 23, 2014.
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with generally
accepted accounting principles (GAAP), the Company provides non-GAAP
operating results that exclude legal and accounting expenses related to
the pending securities and stockholder derivative class action
litigation, pending antitrust litigation against the Company, and the
now concluded SEC inquiry; non-cash acquisition-related items such as
amortization of identifiable intangibles; fixed asset impairment and
abandonment write-downs; and restructuring and productivity expenses
related to our multi-year productivity program, each of which include
adjustments to show the tax impact of excluding these items. In each
case these amounts are not in accordance with, or an alternative to,
GAAP. The Company’s management believes that these measures provide
investors with transparency by helping illustrate the underlying
financial and business trends relating to the Company’s results of
operations and financial condition and comparability between current and
prior periods. Management uses the measures to establish and monitor
budgets and operational goals and to evaluate the performance of the
Company. Please see the “GAAP to Non-GAAP Reconciliation” table that
accompanies this document for a full reconciliation of the Company’s
GAAP to non-GAAP results.
About Keurig Green Mountain, Inc.
Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR) is reimagining how
beverages can be created, personalized, and enjoyed, fresh-made in homes
and workplaces. We are a personal beverage system company
revolutionizing the beverage experience through the power of innovative
technology and strategic brand partnerships. With an expanding family of
more than 80 beloved brands and more than 575 beverage varieties, our
Keurig® hot and Keurig KOLD™ beverage systems deliver great taste,
convenience, and choice at the push of a button. As a company founded on
social responsibility, we are committed to using the power of business
to brew a better world through our work to build resilient supply
chains, sustainable products, thriving communities, and a water-secure
world.
For more information visit: www.KeurigGreenMountain.com. To
purchase Keurig products: www.keurig.com, www.keurig.ca, www.keurig.co.uk.
Keurig routinely posts information that may be of importance to
investors in the Investor Relations section of its website, www.KeurigGreenMountain.com,
including news releases and its complete financial statements, as filed
with the SEC. The Company encourages investors to consult this section
of its website regularly for important information and news.
Additionally, by subscribing to the Company's automatic email news
release delivery, individuals can receive news directly from Keurig as
it is released.
Forward-Looking Statements
Certain information in this press release constitutes "forward-looking
statements." Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts. They
often include words such as "believes," "expects," "anticipates,"
"estimates," "intends," "plans," "seeks" or words of similar meaning, or
future or conditional verbs, such as "will," "should," "could," "may,"
"aims," "intends," or "projects." However, the absence of these words or
similar expressions does not mean that a statement is not
forward-looking. These statements may relate to: the expected impact of
raw material costs and our pricing actions on our results of operations
and gross margins, expected trends in net sales and earnings performance
and other financial measures, estimates of future financial results, the
expected productivity program charges and working capital improvements,
the success of introducing and producing new product offerings, the
impact of foreign exchange fluctuations, the adequacy of internally
generated funds and existing sources of liquidity, such as the
availability of bank financing, the expected results of operations of
businesses acquired by us, our ability to issue debt or additional
equity securities, projections for future capital expenditures, our
expectations regarding purchasing shares of our common stock under the
existing authorizations, projections of payment of dividends, the impact
of pending and future stockholder claims and other litigation, and the
impact of antitrust litigation pending against the Company in the United
States and Canada. A forward-looking statement is neither a prediction
nor a guarantee of future events or circumstances, and those future
events or circumstances may not occur. Management believes that these
forward-looking statements are reasonable as and when made. However,
caution should be taken not to place undue reliance on any such
forward-looking statements because such statements speak only as of the
date when made. We expressly disclaim any obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. In addition, forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from our historical experience and our
present expectations or projections. These risks and uncertainties
include, but are not limited to, those described in Part I, "Item 1A.
Risk Factors" and Part II "Item 7. Management's Discussion and Analysis
of Financial Condition and Results of Operations" in our fiscal 2015
Annual Report filed on Form 10-K, elsewhere in that report and those
described from time to time in our future reports filed with the
Securities and Exchange Commission.
1 Certain items in this press release are designated as
“Non-GAAP” and represent non-GAAP financial measures that exclude
certain items. Please see the attached “GAAP to Non-GAAP Reconciliation”
to find disclosure and reconciliation of non-GAAP financial measures, as
well as a discussion in this release as to why the Company is presenting
such non-GAAP measures.
2 Equivalent servings translates our multiple pod sizes,
including K-Cup®, Vue®, K-CarafeTM and Bolt® pods ,
into a common serving.
3 Numbers do not sum due to rounding.
4 The Company issued 16.7 million shares as part of the
transaction with The Coca-Cola Company, which closed February 27, 2014
and another 1.4 million shares as part of the transaction with Luigi
Lavazza S.p.A., which closed April 17, 2014.
KGM-G, KGM-US, KGM-CA
|
KEURIG GREEN MOUNTAIN, INC.
|
Unaudited Consolidated Balance Sheets
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
September 26, 2015
|
|
September 27, 2014
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
59,334
|
|
|
$
|
761,214
|
|
Restricted cash and cash equivalents
|
|
|
30,460
|
|
|
|
378
|
|
Short-term investment
|
|
|
—
|
|
|
|
100,000
|
|
Receivables, less uncollectible accounts and return allowances of
$35,459 and $66,120 at September 26, 2015 and September 27, 2014,
respectively
|
|
|
517,936
|
|
|
|
621,451
|
|
Inventories
|
|
|
691,980
|
|
|
|
835,167
|
|
Income taxes receivable
|
|
|
51,786
|
|
|
|
—
|
|
Other current assets
|
|
|
95,526
|
|
|
|
69,272
|
|
Deferred income taxes, net
|
|
|
70,181
|
|
|
|
58,038
|
|
Total current assets
|
|
|
1,517,203
|
|
|
|
2,445,520
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
1,293,563
|
|
|
|
1,171,425
|
|
Intangibles, net
|
|
|
423,887
|
|
|
|
365,444
|
|
Goodwill
|
|
|
747,406
|
|
|
|
755,895
|
|
Deferred income taxes, net
|
|
|
854
|
|
|
|
131
|
|
Long-term restricted cash
|
|
|
278
|
|
|
|
—
|
|
Other long-term assets
|
|
|
18,386
|
|
|
|
58,892
|
|
|
|
|
|
|
Total assets
|
|
$
|
4,001,577
|
|
|
$
|
4,797,307
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
279
|
|
|
$
|
19,077
|
|
Current portion of capital lease and financing obligations
|
|
|
3,271
|
|
|
|
2,226
|
|
Accounts payable
|
|
|
298,609
|
|
|
|
411,107
|
|
Accrued expenses
|
|
|
226,519
|
|
|
|
305,677
|
|
Income tax payable
|
|
|
1,085
|
|
|
|
53,586
|
|
Dividend payable
|
|
|
44,048
|
|
|
|
40,580
|
|
Deferred income taxes, net
|
|
|
264
|
|
|
|
340
|
|
Other current liabilities
|
|
|
28,049
|
|
|
|
10,395
|
|
Total current liabilities
|
|
|
602,124
|
|
|
|
842,988
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
330,766
|
|
|
|
140,937
|
|
Capital lease and financing obligations, less current portion
|
|
|
117,187
|
|
|
|
116,240
|
|
Deferred income taxes, net
|
|
|
195,063
|
|
|
|
202,936
|
|
Other long-term liabilities
|
|
|
42,525
|
|
|
|
23,085
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
4,554
|
|
|
|
12,440
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock, $0.10 par value: Authorized - 1,000,000 shares; No
shares issued or outstanding
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.10 par value: Authorized - 500,000,000 shares;
Issued and outstanding - 153,209,256 and 162,318,246 shares at
September 26, 2015 and September 27, 2014, respectively
|
|
|
15,321
|
|
|
|
16,232
|
|
Additional paid-in capital
|
|
|
879,060
|
|
|
|
1,808,881
|
|
Retained earnings
|
|
|
2,014,279
|
|
|
|
1,687,619
|
|
Accumulated other comprehensive loss
|
|
|
(199,302
|
)
|
|
|
(54,051
|
)
|
Total stockholders' equity
|
|
$
|
2,709,358
|
|
|
$
|
3,458,681
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
4,001,577
|
|
|
$
|
4,797,307
|
|
|
|
|
|
|
|
KEURIG GREEN MOUNTAIN, INC.
|
Unaudited Consolidated Statements of Operations
|
(Dollars in thousands except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
Thirteen weeks ended
|
|
|
|
|
|
|
Sept 26, 2015
|
|
Sept 27, 2014
|
|
Fiscal 2015
|
|
Fiscal 2014
|
Net sales
|
|
$
|
1,036,964
|
|
|
$
|
1,195,567
|
|
|
$
|
4,520,031
|
|
|
$
|
4,707,680
|
|
Cost of sales
|
|
|
701,630
|
|
|
|
745,778
|
|
|
|
2,912,507
|
|
|
|
2,891,820
|
|
Gross profit
|
|
|
335,334
|
|
|
|
449,789
|
|
|
|
1,607,524
|
|
|
|
1,815,860
|
|
|
|
|
|
|
|
|
|
|
Selling and operating expenses
|
|
|
111,357
|
|
|
|
140,498
|
|
|
|
539,259
|
|
|
|
561,573
|
|
General and administrative expenses
|
|
|
64,566
|
|
|
|
80,509
|
|
|
|
287,591
|
|
|
|
307,046
|
|
Restructuring expenses
|
|
|
15,250
|
|
|
|
—
|
|
|
|
15,250
|
|
|
|
—
|
|
Operating income
|
|
|
144,161
|
|
|
|
228,782
|
|
|
|
765,424
|
|
|
|
947,241
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
(1,224
|
)
|
|
|
(1,673
|
)
|
|
|
1,123
|
|
|
|
262
|
|
Gain on financial instruments, net
|
|
|
2,967
|
|
|
|
3,689
|
|
|
|
8,077
|
|
|
|
8,307
|
|
Loss on foreign currency, net
|
|
|
(5,988
|
)
|
|
|
(9,323
|
)
|
|
|
(22,166
|
)
|
|
|
(19,746
|
)
|
Interest expense
|
|
|
(128
|
)
|
|
|
(3,635
|
)
|
|
|
(1,882
|
)
|
|
|
(11,691
|
)
|
Income before income taxes
|
|
|
139,788
|
|
|
|
217,840
|
|
|
|
750,576
|
|
|
|
924,373
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
(45,126
|
)
|
|
|
(76,590
|
)
|
|
|
(251,948
|
)
|
|
|
(326,959
|
)
|
Net income
|
|
$
|
94,662
|
|
|
$
|
141,250
|
|
|
$
|
498,628
|
|
|
$
|
597,414
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
66
|
|
|
|
194
|
|
|
|
353
|
|
|
|
896
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Keurig
|
|
$
|
94,596
|
|
|
$
|
141,056
|
|
|
$
|
498,275
|
|
|
$
|
596,518
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Keurig per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.61
|
|
|
$
|
0.87
|
|
|
$
|
3.17
|
|
|
$
|
3.80
|
|
Diluted
|
|
$
|
0.61
|
|
|
$
|
0.86
|
|
|
$
|
3.14
|
|
|
$
|
3.74
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.2875
|
|
|
$
|
0.25
|
|
|
$
|
1.15
|
|
|
$
|
1.00
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
153,938,926
|
|
|
|
162,540,994
|
|
|
|
157,286,303
|
|
|
|
157,085,574
|
|
Diluted
|
|
|
155,202,057
|
|
|
|
164,446,353
|
|
|
|
158,898,678
|
|
|
|
159,568,342
|
|
|
|
|
|
|
|
|
|
|
|
KEURIG GREEN MOUNTAIN, INC.
|
Unaudited Consolidated Statements of Cash Flows
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
Fiscal 2015
|
|
Fiscal 2014
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
498,628
|
|
|
$
|
597,414
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization of fixed assets
|
|
|
217,515
|
|
|
|
214,607
|
|
Amortization of intangibles
|
|
|
48,148
|
|
|
|
43,032
|
|
Amortization of deferred financing fees
|
|
|
4,606
|
|
|
|
5,651
|
|
Loss on impairment of fixed assets
|
|
|
16,256
|
|
|
|
—
|
|
Unrealized (gain) loss on foreign currency, net
|
|
|
(2,862
|
)
|
|
|
15,196
|
|
Provision for doubtful accounts
|
|
|
5,452
|
|
|
|
1,782
|
|
Provision for sales returns
|
|
|
114,392
|
|
|
|
114,057
|
|
Gain on derivatives, net
|
|
|
(20,959
|
)
|
|
|
(1,582
|
)
|
Excess tax benefits from equity-based compensation plans
|
|
|
(40,843
|
)
|
|
|
(55,444
|
)
|
Deferred income taxes
|
|
|
(8,591
|
)
|
|
|
(52,708
|
)
|
Deferred compensation and stock compensation
|
|
|
32,471
|
|
|
|
30,882
|
|
Other
|
|
|
10,563
|
|
|
|
4,224
|
|
Changes in assets and liabilities, net of acquisitions
|
|
|
|
|
Receivables
|
|
|
(24,303
|
)
|
|
|
(274,884
|
)
|
Inventories
|
|
|
128,423
|
|
|
|
(166,473
|
)
|
Income tax payable/receivable, net
|
|
|
(64,337
|
)
|
|
|
120,553
|
|
Other current assets
|
|
|
(23,573
|
)
|
|
|
(838
|
)
|
Other long-term assets, net
|
|
|
2,369
|
|
|
|
3,162
|
|
Accounts payable and accrued expenses
|
|
|
(155,922
|
)
|
|
|
133,818
|
|
Other current liabilities
|
|
|
(1,191
|
)
|
|
|
(7,521
|
)
|
Other long-term liabilities
|
|
|
18,620
|
|
|
|
(5,495
|
)
|
Net cash provided by operating activities
|
|
|
754,862
|
|
|
|
719,433
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Change in restricted cash
|
|
|
(5,383
|
)
|
|
|
182
|
|
Purchase of short-term investment
|
|
|
—
|
|
|
|
(100,000
|
)
|
Maturity of short-term investment
|
|
|
100,000
|
|
|
|
—
|
|
Purchase of long-term investment
|
|
|
(1,000
|
)
|
|
|
(35,905
|
)
|
Acquisition, net of cash acquired
|
|
|
(180,698
|
)
|
|
|
—
|
|
Proceeds from the sale of subsidiary, net of cash retained
|
|
|
765
|
|
|
|
—
|
|
Capital expenditures for fixed assets
|
|
|
(411,099
|
)
|
|
|
(337,860
|
)
|
Other investing activities
|
|
|
(1,016
|
)
|
|
|
1,164
|
|
Net cash used in investing activities
|
|
|
(498,431
|
)
|
|
|
(472,419
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Net change in revolving line of credit
|
|
|
330,000
|
|
|
|
—
|
|
Proceeds from issuance of common stock under compensation plans
|
|
|
29,272
|
|
|
|
40,681
|
|
Proceeds from sale of common stock
|
|
|
—
|
|
|
|
1,348,414
|
|
Repurchase of common stock
|
|
|
(1,033,321
|
)
|
|
|
(1,052,430
|
)
|
Excess tax benefits from equity-based compensation plans
|
|
|
40,843
|
|
|
|
55,444
|
|
Payments on capital lease and financing obligations
|
|
|
(2,823
|
)
|
|
|
(1,931
|
)
|
Proceeds from borrowings of long-term debt
|
|
|
—
|
|
|
|
403
|
|
Deferred financing fees
|
|
|
(4,123
|
)
|
|
|
—
|
|
Repayment of long-term debt
|
|
|
(158,730
|
)
|
|
|
(13,361
|
)
|
Dividends paid
|
|
|
(175,707
|
)
|
|
|
(118,358
|
)
|
Purchase of noncontrolling interest
|
|
|
—
|
|
|
|
(4,752
|
)
|
Other financing activities
|
|
|
2,710
|
|
|
|
(1,124
|
)
|
Net cash (used in) provided by financing activities
|
|
|
(971,879
|
)
|
|
|
252,986
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
13,568
|
|
|
|
1,122
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(701,880
|
)
|
|
|
501,122
|
|
Cash and cash equivalents at beginning of period
|
|
|
761,214
|
|
|
|
260,092
|
|
Cash and cash equivalents at end of period
|
|
$
|
59,334
|
|
|
$
|
761,214
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
Cash paid for interest (net of amounts capitalized)
|
|
$
|
(2,785
|
)
|
|
$
|
4,012
|
|
Cash paid for income taxes
|
|
$
|
320,239
|
|
|
$
|
270,367
|
|
Dividends declared not paid at the end of each period
|
|
$
|
44,048
|
|
|
$
|
40,580
|
|
Fixed asset purchases included in accounts payable and not disbursed
at the end of each year
|
|
$
|
32,122
|
|
|
$
|
64,202
|
|
Noncash investing and financing activities:
|
|
|
|
|
Fixed assets acquired under capital lease and financing obligations
|
|
$
|
375
|
|
|
$
|
40,125
|
|
|
|
|
|
|
|
|
|
|
|
KEURIG GREEN MOUNTAIN, INC.
|
GAAP to Non-GAAP Reconciliation
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
|
|
|
|
|
September 26, 2015
|
|
|
Fiscal 2015
|
|
% Change Net Sales - Reported (GAAP)
|
|
|
(13
|
)%
|
|
|
|
(4
|
)%
|
|
% Foreign Exchange Impact
|
|
|
2
|
%
|
|
|
|
1
|
%
|
|
% Change Constant Currency Net Sales (Non-GAAP)
|
|
|
(11
|
)%
|
|
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
|
Thirteen weeks ended
|
|
|
|
September 26, 2015
|
|
|
September 27, 2014
|
|
Gross profit
|
|
$
|
335,334
|
|
|
|
$
|
449,789
|
|
|
Losses on fixed asset impairment and abandonment (1)
|
|
|
23,975
|
|
|
|
|
—
|
|
|
Non-GAAP gross profit
|
|
$
|
359,309
|
|
|
|
$
|
449,789
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
|
Thirteen weeks ended
|
|
|
|
September 26, 2015
|
|
|
September 27, 2014
|
|
Selling and operating expenses
|
|
$
|
111,357
|
|
|
|
$
|
140,498
|
|
|
General and administrative expenses
|
|
|
64,566
|
|
|
|
|
80,509
|
|
|
Total SG&A
|
|
$
|
175,923
|
|
|
|
$
|
221,007
|
|
|
Expenses related to SEC inquiry (2)
|
|
|
—
|
|
|
|
|
(1,031
|
)
|
|
Expenses related to antitrust litigation (3)
|
|
|
—
|
|
|
|
|
(7,771
|
)
|
|
Amortization of identifiable intangibles (4)
|
|
|
(12,380
|
)
|
|
|
|
(10,405
|
)
|
|
Restructuring and productivity initiative expenses (5)
|
|
|
(1,242
|
)
|
|
|
|
—
|
|
|
Non-GAAP SG&A
|
|
$
|
162,301
|
|
|
|
$
|
201,800
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
|
Thirteen weeks ended
|
|
|
|
September 26, 2015
|
|
|
September 27, 2014
|
|
Operating income
|
|
$
|
144,161
|
|
|
|
$
|
228,782
|
|
|
Losses on fixed asset impairment and abandonment (1)
|
|
|
23,975
|
|
|
|
|
—
|
|
|
Expenses related to SEC inquiry (2)
|
|
|
—
|
|
|
|
|
1,031
|
|
|
Expenses related to antitrust litigation (3)
|
|
|
—
|
|
|
|
|
7,771
|
|
|
Amortization of identifiable intangibles (4)
|
|
|
12,380
|
|
|
|
|
10,405
|
|
|
Restructuring and productivity initiative expenses (5)
|
|
|
16,492
|
|
|
|
|
—
|
|
|
Non-GAAP operating income
|
|
$
|
197,008
|
|
|
|
$
|
247,989
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
|
Thirteen weeks ended
|
|
|
|
September 26, 2015
|
|
|
September 27, 2014
|
|
Net income attributable to Keurig
|
|
$
|
94,596
|
|
|
|
$
|
141,056
|
|
|
After tax:
|
|
|
|
|
|
|
Losses on fixed asset impairment and abandonment (1)
|
|
|
16,236
|
|
|
|
|
—
|
|
|
Expenses related to SEC inquiry (2)
|
|
|
—
|
|
|
|
|
676
|
|
|
Expenses related to antitrust litigation (3)
|
|
|
—
|
|
|
|
|
5,022
|
|
|
Amortization of identifiable intangibles (4)
|
|
|
9,290
|
|
|
|
|
7,078
|
|
|
Restructuring and productivity initiative expenses (5)
|
|
|
11,168
|
|
|
|
|
—
|
|
|
Non-GAAP net income attributable to Keurig
|
|
$
|
131,290
|
|
|
|
$
|
153,832
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
|
Thirteen weeks ended
|
|
|
|
September 26, 2015
|
|
|
September 27, 2014
|
|
Diluted income per share
|
|
$
|
0.61
|
|
|
|
$
|
0.86
|
|
|
After tax:
|
|
|
|
|
|
|
Losses on fixed asset impairment and abandonment (1)
|
|
|
0.10
|
|
|
|
|
—
|
|
|
Expenses related to SEC inquiry (2)
|
|
|
—
|
|
|
|
|
—
|
|
|
Expenses related to antitrust litigation (3)
|
|
|
—
|
|
|
|
|
0.03
|
|
|
Amortization of identifiable intangibles (4)
|
|
|
0.06
|
|
|
|
|
0.04
|
|
|
Restructuring and productivity initiative expenses (5)
|
|
|
0.07
|
|
|
|
|
—
|
|
|
Non-GAAP net income per share
|
|
$
|
0.85
|
|
*
|
|
$
|
0.94
|
|
*
|
|
|
|
|
|
|
|
* Does not sum due to rounding.
|
|
|
|
|
|
|
(1) Represents loss on impairment of the Company's Bolt® fixed assets
and other write-downs related to abandonment of packaging lines,
classified as cost of sales.
(2) Represents legal and accounting expenses related to the SEC inquiry
and pending securities and stockholder derivative class action
litigation classified as general and administrative expense.
(3) Represents legal expenses related to antitrust litigation classified
as general and administrative expense.
(4) Represents the amortization of intangibles related to the Company’s
acquisitions classified as general and administrative expense.
(5)Represents restructuring and productivity initiative expenses related
to the Company's multi-year productivity initiative.
|
KEURIG GREEN MOUNTAIN, INC.
|
GAAP to Non-GAAP Reconciliation
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Fiscal 2015
|
|
|
Fiscal 2014
|
|
Gross profit
|
|
$
|
1,607,524
|
|
|
|
$
|
1,815,860
|
|
|
Losses on fixed asset impairment and abandonment (1)
|
|
|
23,975
|
|
|
|
|
—
|
|
|
Non-GAAP gross profit
|
|
$
|
1,631,499
|
|
|
|
$
|
1,815,860
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2015
|
|
|
Fiscal 2014
|
|
Selling and operating expenses
|
|
$
|
539,259
|
|
|
|
$
|
561,573
|
|
|
General and administrative expenses
|
|
|
287,591
|
|
|
|
|
307,046
|
|
|
Total SG&A
|
|
$
|
826,850
|
|
|
|
$
|
868,619
|
|
|
Expenses related to SEC inquiry (2)
|
|
|
(1,442
|
)
|
|
|
|
(3,130
|
)
|
|
Expenses related to antitrust litigation (3)
|
|
|
(5,541
|
)
|
|
|
|
(7,771
|
)
|
|
Amortization of identifiable intangibles (4)
|
|
|
(48,148
|
)
|
|
|
|
(43,032
|
)
|
|
Restructuring and productivity initiative expenses (5)
|
|
|
(1,242
|
)
|
|
|
|
—
|
|
|
Non-GAAP SG&A
|
|
$
|
770,477
|
|
|
|
$
|
814,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2015
|
|
|
Fiscal 2014
|
|
Operating income
|
|
$
|
765,424
|
|
|
|
$
|
947,241
|
|
|
Losses on fixed asset impairment and abandonment (1)
|
|
|
23,975
|
|
|
|
|
—
|
|
|
Expenses related to SEC inquiry (2)
|
|
|
1,442
|
|
|
|
|
3,130
|
|
|
Expenses related to antitrust litigation (3)
|
|
|
5,541
|
|
|
|
|
7,771
|
|
|
Amortization of identifiable intangibles (4)
|
|
|
48,148
|
|
|
|
|
43,032
|
|
|
Restructuring and productivity initiative expenses (5)
|
|
|
16,492
|
|
|
|
|
—
|
|
|
Non-GAAP operating income
|
|
$
|
861,022
|
|
|
|
$
|
1,001,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2015
|
|
|
Fiscal 2014
|
|
Net income attributable to Keurig
|
|
$
|
498,275
|
|
|
|
$
|
596,518
|
|
|
After tax:
|
|
|
|
|
|
|
Losses on fixed asset impairment and abandonment (1)
|
|
|
16,236
|
|
|
|
|
—
|
|
|
Expenses related to SEC inquiry (2)
|
|
|
927
|
|
|
|
|
2,023
|
|
|
Expenses related to antitrust litigation (3)
|
|
|
3,699
|
|
|
|
|
5,020
|
|
|
Amortization of identifiable intangibles (4)
|
|
|
35,516
|
|
|
|
|
29,324
|
|
|
Restructuring and productivity initiative expenses (5)
|
|
|
11,168
|
|
|
|
|
—
|
|
|
Non-GAAP net income attributable to Keurig
|
|
$
|
565,821
|
|
|
|
$
|
632,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2015
|
|
|
Fiscal 2014
|
|
Diluted income per share
|
|
$
|
3.14
|
|
|
|
$
|
3.74
|
|
|
After tax:
|
|
|
|
|
|
|
Losses on fixed asset impairment and abandonment (1)
|
|
|
0.10
|
|
|
|
|
—
|
|
|
Expenses related to SEC inquiry (2)
|
|
|
0.01
|
|
|
|
|
0.01
|
|
|
Expenses related to antitrust litigation (3)
|
|
|
0.02
|
|
|
|
|
0.03
|
|
|
Amortization of identifiable intangibles (4)
|
|
|
0.22
|
|
|
|
|
0.18
|
|
|
Restructuring and productivity initiative expenses (5)
|
|
|
0.07
|
|
|
|
|
—
|
|
|
Non-GAAP net income per share
|
|
$
|
3.56
|
|
|
|
$
|
3.97
|
|
*
|
|
|
|
|
|
|
|
* Does not sum due to rounding.
|
|
|
|
|
|
|
(1) Represents loss on impairment of the Company's Bolt® fixed assets
and other write-downs related to abandonment of packaging lines,
classified as cost of sales.
(2) Represents legal and accounting expenses related to the SEC inquiry
and pending securities and stockholder derivative class action
litigation classified as general and administrative expense.
(3) Represents legal expenses related to antitrust litigation classified
as general and administrative expense.
(4) Represents the amortization of intangibles related to the Company’s
acquisitions classified as general and administrative expense.
(5) Represents restructuring and productivity initiative expenses
related to the Company's multi-year productivity initiative.
CONTACT:
Keurig Green Mountain, Inc.
For Media:
Suzanne
DuLong, 781-418-8075
pr@keurig.com
or
For Investors:
Kristi
Bonner, 646-762-8095
kristi.bonner@keurig.com
Keurig Green Mountain, Inc. (NASDAQ:GMCR)
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From Mar 2024 to Apr 2024
Keurig Green Mountain, Inc. (NASDAQ:GMCR)
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From Apr 2023 to Apr 2024