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):
April 23, 2015
(Exact name of registrant as specified in its charter)
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Delaware | | 001-33829 | | 98-0517725 |
(State or other jurisdiction | | (Commission File Number) | | (IRS Employer |
of incorporation) | | | | Identification No.) |
5301 Legacy Drive, Plano, Texas 75024
(Address of principal executive offices, including zip code)
(972) 673-7000
(Registrant’s telephone number including area code)
Not Applicable
(Former name or former address if changed since last report)
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-14(c) under the Exchange Act (17 CFR 240.13e-14(c))
Item 2.02 Results of Operations and Financial Condition.
On April 23, 2015, Dr Pepper Snapple Group, Inc. (the "Company") issued a press release announcing its financial results for the first quarter of its fiscal year ended March 31, 2015. A copy of such press release is attached as Exhibit 99.1 and will be published on the Company’s web site at http://www.drpeppersnapple.com. The press release includes certain non-generally accepted accounting principles ("non-GAAP") financial measures. Reconciliations to the most directly comparable generally accepted accounting principles ("GAAP") financial measures are included in the press release.
On April 23, 2015, the Company will hold a telephone conference and webcast to discuss the Company’s financial results for the first quarter of its fiscal year ended March 31, 2015. During this conference, the Company will present certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures and supplementary information related to these reconciliations will be posted to the Company’s website at http://www.drpeppersnapple.com prior to the start of the call.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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EXHIBIT | | |
NUMBER | | DESCRIPTION |
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99.1 |
| | Dr Pepper Snapple Group, Inc. Press Release dated April 23, 2015 — ''Dr Pepper Snapple Group Reports First Quarter 2015 Results''. |
Pursuant to the rules and regulations of the Securities and Exchange Commission, the information in this Current Report on Form 8-K, including the press release attached as Exhibit 99.1, is deemed to be furnished and shall not be deemed to be "filed" under the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
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.
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| DR PEPPER SNAPPLE GROUP, INC. | |
Date: April 23, 2015 | | |
| By: | /s/ James L. Baldwin | |
| | Name: | James L. Baldwin | |
| | Title: | Executive Vice President, General Counsel & Secretary | |
EXHIBIT INDEX
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Exhibit | | |
Number | | Description |
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99.1 |
| | Dr Pepper Snapple Group, Inc. Press Release dated April 23, 2015 — ''Dr Pepper Snapple Group Reports First Quarter 2015 Results''. |
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| | | Exhibit 99.1 |
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FOR IMMEDIATE RELEASE | Contacts: | | Media Relations Chris Barnes, (972) 673-5539 |
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| | | | Investor Relations Heather Catelotti, (972) 673-5869 |
DR PEPPER SNAPPLE GROUP REPORTS FIRST QUARTER 2015 RESULTS
Reported EPS were $0.81 for the quarter. Core EPS were $0.81 for the quarter, up 9%.
Net sales increased 4% for the quarter.
Year-to-date, the company returned $214 million to shareholders.
Plano, TX, April 23, 2015 - Dr Pepper Snapple Group, Inc. (NYSE: DPS) reported first quarter 2015 EPS of $0.81 compared to $0.78 in the prior year period, an increase of 4%. Core EPS were also $0.81, compared to $0.74 in the prior year, an increase of 9%.
For the quarter, reported net sales increased 4%, as a sales volume increase of 2% and favorable segment and product mix were partially offset by 1 percentage point of unfavorable foreign currency translation. Reported segment operating profit (SOP) increased 7%, or $23 million, on net sales growth, ongoing productivity improvements and a planned reduction in marketing investments. On a currency neutral basis, SOP increased 10%.
Reported income from operations for the quarter was $270 million, up 4% compared to the prior year period, including a $1 million unrealized commodity mark-to-market loss. Reported income from operations was $260 million in the prior year period, including $12 million of unrealized commodity mark-to-market gains. Core income from operations was $271 million, up 9% compared to the prior year period.
DPS President and CEO Larry Young said, “We had a strong start to 2015. Our teams continued to persevere though a challenging environment by executing against our key priorities of building our brands with consumers and executing with excellence in the marketplace. We grew both dollar and volume share in CSDs in Nielsen-measured markets, outperforming the category. We expanded distribution and availability across our tea and juice portfolios and launched relevant innovation to address consumers’ changing needs. Our Rapid Continuous Improvement (RCI) capabilities continue to develop across the organization and are helping to drive top-line growth, and we still have a tremendous amount of runway ahead of us.”
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EPS reconciliation | First Quarter |
| | 2015 | | 2014 | | Percent Change |
Reported EPS | | $ | 0.81 |
| | $ | 0.78 |
| | 4 |
| | | | | | |
Unrealized commodity mark-to-market net (gain) | | — |
| | (0.04 | ) | | |
Core EPS | | $ | 0.81 |
| | $ | 0.74 |
| | 9 |
EPS - earnings per share
Net sales and SOP in the tables and commentary below are presented on a currency neutral basis. For a reconciliation of non-GAAP to GAAP measures see pages A-5 through A-8 accompanying this release.
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Summary of 2015 results | First Quarter |
(Percent change) | As Reported | | Currency Neutral |
| |
BCS Volume | 3 | | 3 |
Sales Volume | 2 | | 2 |
Net Sales | 4 | | 5 |
SOP | 7 | | 10 |
BCS - bottler case sales
BCS Volume
For the quarter, BCS volume increased 3% with carbonated soft drinks (CSDs) increasing 3% and non-carbonated beverages (NCBs) increasing 5%.
By geography, U.S. and Canada volume increased 2%, and Mexico and the Caribbean volume increased 13%.
In CSDs, Peñafiel increased 20% on distribution gains. Our Core 4 brands increased 4%, as a double-digit increase in Canada Dry was partially offset by low-single-digit declines in Sunkist soda and 7UP. A&W was flat in the quarter. Squirt increased 15%, and Schweppes increased 8%. These increases were partially offset by a 1% decline in brand Dr Pepper on continued declines in diet. Fountain foodservice volume increased 1% in the quarter.
In NCBs, Hawaiian Punch volume increased 7% on increased promotional activity and package innovation. Clamato increased 20%, and our water category increased 9%. Snapple increased 5%, driven primarily by high-single-digit growth in Snapple Premium, which was partially offset by our de-emphasis of our value products.
Sales Volume
Sales volumes increased 2% for the quarter.
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2015 Segment results | | First Quarter |
(Percent Change) | | As Reported | | Currency Neutral |
| | Sales | | Net | | | | Sales | Net | | |
| | Volume | | Sales | | SOP | | Volume | Sales | | SOP |
Beverage Concentrates | | (2) | | 1 | | 5 | | (2) | 2 | | 6 |
Packaged Beverages | | 4 | | 5 | | 8 | | 4 | 5 | | 10 |
Latin America Beverages | | 13 | | 2 | | 31 | | 13 | 14 | | 89 |
Total | | 2 | | 4 | | 7 | | 2 | 5 | | 10 |
Beverage Concentrates
Net sales for the quarter increased 2%, as concentrate price increases taken at the beginning of the year and lower discounts in the quarter were partially offset by a 2% decline in concentrate shipments. SOP increased 6% on net sales growth, a planned reduction in marketing investments and lower IT costs.
Packaged Beverages
Net sales for the quarter increased 5%, as a sales volume increase of 4% and favorable product mix were partially offset by increased promotional activity in the quarter. SOP increased 10% on net sales growth and ongoing productivity improvements.
Latin America Beverages
Net sales for the quarter increased 14%, driven primarily by a 13% increase in sales volumes. SOP increased 89% as net sales growth and ongoing productivity improvements were partially offset by increases in logistics costs and other operating expenses.
Corporate and Other Items
For the quarter, corporate costs totaled $71 million, including a $1 million unrealized commodity mark-to-market loss. Corporate costs in the prior year period were $57 million, including a $12 million unrealized commodity mark-to-market gain.
Net interest expense increased $2 million for the quarter compared to the prior year.
For the quarter, the reported effective tax rate was 35.7%. The prior year effective tax rate was 34.3%, as a $2 million deferred tax benefit due to a New York State law change decreased the effective tax rate by 0.9%.
Cash Flow
For the quarter, the company generated $101 million of cash from operating activities compared to $129 million in the prior year period. Capital spending totaled $20 million compared to $37 million in the prior year period. The company returned $214 million to shareholders in the form of stock repurchases ($135 million) and dividends ($79 million).
2015 Full-Year Guidance
The company continues to expect full-year reported net sales to be up approximately 1% and core EPS to be in the $3.80 to $3.88 range after the impact of foreign currency, which is now expected to negatively impact net sales and core EPS growth by approximately 1% and 3%, respectively.
Packaging and ingredient costs are expected to decrease COGS by about 1% on a constant volume/mix basis.
The company expects its core tax rate to be approximately 35.5%.
The company continues to expect capital spending to be approximately 3% of net sales.
The company expects to repurchase $500 million to $550 million of its common stock.
Definitions
Bottler case sales (BCS) volume: Sales of finished beverages, in equivalent 288 fluid ounce cases, sold by the company and its bottling partners to retailers and independent distributors and excludes contract manufacturing volume. Volume for products sold by the company and its bottling partners is reported on a monthly basis, with the first quarter comprising January, February and March.
Sales volume: Sales of concentrates and finished beverages, in equivalent 288 fluid ounce cases, shipped by the company to its bottlers, retailers and independent distributors and includes contract manufacturing volume.
Pricing refers to the impact of list price changes.
Unrealized mark-to-market: We recognize the change in the fair value of open commodity derivative positions between periods in corporate unallocated expenses, as these instruments do not qualify for hedge accounting treatment. As the underlying commodity is delivered, the realized gains and losses are subsequently reflected in the segment results.
EPS represents diluted earnings per share.
Core financial measures are determined utilizing reported financial numbers adjusted for the unrealized mark-to-market impact of commodity derivatives and certain items that are excluded for comparison to prior year periods.
Core metrics are determined based on the core financial measures.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, statements about future events, future financial performance including earnings estimates, plans, strategies, expectations, prospects, competitive environment, regulation, and cost and availability of raw materials. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “may,” “will,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend” or the negative of these terms or similar expressions. These forward-looking statements have been based on our current views with respect to future events and financial performance. Our actual financial performance could differ materially from those projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and our financial performance may be better or worse than anticipated. Given these uncertainties, you should not put undue reliance on any forward-looking statements. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014, and our other filings with the Securities and Exchange Commission. Forward-looking statements represent our estimates and assumptions only as of the date that they were made. We do not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, after the date of this release, except to the extent required by applicable securities laws.
Conference Call
At 10 a.m. (CDT) today, the company will host a conference call with investors to discuss first quarter results and the outlook for 2015. The conference call and slide presentation will be accessible live through DPS’s website at http://www.drpeppersnapple.com and will be archived for replay for a period of 14 days.
In discussing financial results and guidance, the company may refer to certain non-GAAP measures. Reconciliations of any such non-GAAP measures to the most directly comparable financial measures in accordance with GAAP can be found on pages A-5 through A-8 accompanying this release and under "Financial Press Releases" on the company's website at http://www.drpeppersnapple.com in the “Investors” section.
About Dr Pepper Snapple Group
Dr Pepper Snapple Group (NYSE: DPS) is a leading producer of flavored beverages in North America and the Caribbean. Our success is fueled by more than 50 brands that are synonymous with refreshment, fun and flavor. We have 6 of the top 10 non-cola soft drinks, and 13 of our 14 leading brands are No. 1 or No. 2 in their flavor categories. In addition to our flagship Dr Pepper and Snapple brands, our portfolio includes 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr & Mrs T mixers, Peñafiel, Rose's, Schweppes, Squirt and Sunkist soda. To learn more about our iconic brands and Plano, Texas-based company, please visit www.DrPepperSnapple.com. For our latest news and updates, follow us at www.Facebook.com/DrPepperSnapple or www.Twitter.com/DrPepperSnapple.
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DR PEPPER SNAPPLE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended March 31, 2015 and 2014
(Unaudited, in millions, except per share data)
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| For the |
| Three Months Ended |
| March 31, |
| 2015 | | 2014 |
Net sales | $ | 1,451 |
| | $ | 1,398 |
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Cost of sales | 602 |
| | 554 |
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Gross profit | 849 |
| | 844 |
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Selling, general and administrative expenses | 552 |
| | 554 |
|
Depreciation and amortization | 27 |
| | 29 |
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Other operating expense, net | — |
| | 1 |
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Income from operations | 270 |
| | 260 |
|
Interest expense | 27 |
| | 26 |
|
Interest income | — |
| | (1 | ) |
Other income, net | (1 | ) | | (1 | ) |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | 244 |
| | 236 |
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Provision for income taxes | 87 |
| | 81 |
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Income before equity in earnings of unconsolidated subsidiaries | 157 |
| | 155 |
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Equity in earnings of unconsolidated subsidiaries, net of tax | — |
| | — |
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Net income | $ | 157 |
| | $ | 155 |
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Earnings per common share: | | | |
Basic | $ | 0.82 |
| | $ | 0.78 |
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Diluted | 0.81 |
| | 0.78 |
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Weighted average common shares outstanding: | | | |
Basic | 193.0 |
| | 197.9 |
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Diluted | 194.6 |
| | 199.5 |
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DR PEPPER SNAPPLE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2015 and December 31, 2014
(Unaudited, in millions, except share and per share data)
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| | | | | | | |
| March 31, | | December 31, |
| 2015 | | 2014 |
Assets |
Current assets: | | | |
Cash and cash equivalents | $ | 93 |
| | $ | 237 |
|
Accounts receivable: | | | |
Trade, net | 572 |
| | 556 |
|
Other | 65 |
| | 61 |
|
Inventories | 228 |
| | 204 |
|
Deferred tax assets | 73 |
| | 67 |
|
Prepaid expenses and other current assets | 163 |
| | 86 |
|
Total current assets | 1,194 |
| | 1,211 |
|
Property, plant and equipment, net | 1,115 |
| | 1,141 |
|
Investments in unconsolidated subsidiaries | 13 |
| | 14 |
|
Goodwill | 2,990 |
| | 2,990 |
|
Other intangible assets, net | 2,680 |
| | 2,684 |
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Other non-current assets | 193 |
| | 159 |
|
Non-current deferred tax assets | 67 |
| | 74 |
|
Total assets | $ | 8,252 |
| | $ | 8,273 |
|
Liabilities and Stockholders' Equity |
Current liabilities: | | | |
Accounts payable | $ | 350 |
| | $ | 289 |
|
Deferred revenue | 64 |
| | 64 |
|
Short-term borrowings and current portion of long-term obligations | 504 |
| | 3 |
|
Income taxes payable | 50 |
| | 10 |
|
Other current liabilities | 587 |
| | 672 |
|
Total current liabilities | 1,555 |
| | 1,038 |
|
Long-term obligations | 2,113 |
| | 2,588 |
|
Non-current deferred tax liabilities | 828 |
| | 801 |
|
Non-current deferred revenue | 1,232 |
| | 1,250 |
|
Other non-current liabilities | 303 |
| | 302 |
|
Total liabilities | 6,031 |
| | 5,979 |
|
Commitments and contingencies |
| |
|
Stockholders' equity: | | | |
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued | — |
| | — |
|
Common stock, $0.01 par value, 800,000,000 shares authorized, 192,342,028 and 192,957,696 shares issued and outstanding for 2015 and 2014, respectively | 2 |
| | 2 |
|
Additional paid-in capital | 546 |
| | 658 |
|
Retained earnings | 1,835 |
| | 1,771 |
|
Accumulated other comprehensive loss | (162 | ) | | (137 | ) |
Total stockholders' equity | 2,221 |
| | 2,294 |
|
Total liabilities and stockholders' equity | $ | 8,252 |
| | $ | 8,273 |
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DR PEPPER SNAPPLE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2015 and 2014
(Unaudited, in millions)
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| | | | | | | |
| For the |
| Three Months Ended |
| March 31, |
| 2015 | | 2014 |
Operating activities: | | | |
Net income | $ | 157 |
| | $ | 155 |
|
Adjustments to reconcile net income to net cash provided by operating activities: | | | |
Depreciation expense | 48 |
| | 50 |
|
Amortization expense | 8 |
| | 10 |
|
Amortization of deferred revenue | (16 | ) | | (16 | ) |
Employee stock-based compensation expense | 9 |
| | 11 |
|
Deferred income taxes | 15 |
| | 14 |
|
Other, net | (17 | ) | | (19 | ) |
Changes in assets and liabilities, net of effects of acquisition: | | | |
Trade accounts receivable | (19 | ) | | 6 |
|
Other accounts receivable | (4 | ) | | (5 | ) |
Inventories | (26 | ) | | (26 | ) |
Other current and non-current assets | (81 | ) | | (66 | ) |
Other current and non-current liabilities | (99 | ) | | (55 | ) |
Trade accounts payable | 67 |
| | 32 |
|
Income taxes payable | 59 |
| | 38 |
|
Net cash provided by operating activities | 101 |
| | 129 |
|
Investing activities: | | | |
Purchase of property, plant and equipment | (20 | ) | | (37 | ) |
Purchase of cost method investment | (15 | ) | | — |
|
Proceeds from disposals of property, plant and equipment | 1 |
| | — |
|
Other, net | (6 | ) | | (1 | ) |
Net cash used in investing activities | (40 | ) | | (38 | ) |
Financing activities: | | | |
Net issuance of commercial paper | — |
| | 85 |
|
Repurchase of shares of common stock | (135 | ) | | (60 | ) |
Cash paid for shares not yet received | — |
| | (90 | ) |
Dividends paid | (79 | ) | | (75 | ) |
Tax withholdings related to net share settlements of certain stock awards | (26 | ) | | (15 | ) |
Proceeds from stock options exercised | 19 |
| | 24 |
|
Excess tax benefit on stock-based compensation | 19 |
| | 8 |
|
Net cash used in financing activities | (202 | ) | | (123 | ) |
Cash and cash equivalents — net change from: | | | |
Operating, investing and financing activities | (141 | ) | | (32 | ) |
Effect of exchange rate changes on cash and cash equivalents | (3 | ) | | (1 | ) |
Cash and cash equivalents at beginning of period | 237 |
| | 153 |
|
Cash and cash equivalents at end of period | $ | 93 |
| | $ | 120 |
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DR PEPPER SNAPPLE GROUP, INC.
OPERATIONS BY OPERATING SEGMENT
For the Three Months Ended March 31, 2015 and 2014
(Unaudited, in millions)
|
| | | | | | | |
| For the Three Months Ended March 31, |
| 2015 | | 2014 |
Segment Results – Net sales |
| |
|
Beverage Concentrates | $ | 285 |
| | $ | 281 |
|
Packaged Beverages | 1,053 |
| | 1,006 |
|
Latin America Beverages | 113 |
| | 111 |
|
Net sales | $ | 1,451 |
| | $ | 1,398 |
|
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| | | | | | | |
| For the Three Months Ended March 31, |
| 2015 | | 2014 |
Segment Results – SOP | | | |
Beverage Concentrates | $ | 183 |
| | $ | 174 |
|
Packaged Beverages | 141 |
| | 131 |
|
Latin America Beverages | 17 |
| | 13 |
|
Total SOP | 341 |
| | 318 |
|
Unallocated corporate costs | 71 |
| | 57 |
|
Other operating expense, net | — |
| | 1 |
|
Income from operations | 270 |
| | 260 |
|
Interest expense, net | 27 |
| | 25 |
|
Other income, net | (1 | ) | | (1 | ) |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | $ | 244 |
| | $ | 236 |
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DR PEPPER SNAPPLE GROUP, INC.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
(Unaudited)
The company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP measures that reflect the way management evaluates the business may provide investors with additional information regarding the company's results, trends and ongoing performance on a comparable basis. Specifically, investors should consider the following with respect to our quarterly results:
Net sales and Segment Operating Profit, as adjusted to currency neutral: Net sales and Segment Operating Profit are on a currency neutral basis.
Free Cash Flow: Free cash flow is defined as net cash provided by operating activities adjusted for capital spending and certain items excluded for comparison to prior year periods. For the three months ended March 31, 2015 and 2014, there were no certain items excluded for comparison to prior year periods.
Core earnings: Core earnings is defined as net income adjusted for the unrealized mark-to-market impact of commodity derivatives and certain items that are excluded for comparison to prior year periods. For the three months ended March 31, 2015 and 2014, there were no certain items excluded for comparison to prior year periods.
The tables on the following pages provide these reconciliations.
RECONCILIATION OF NET SALES AND SOP
AS REPORTED TO AS ADJUSTED TO CURRENCY NEUTRAL
(Unaudited)
|
| | | | | | | | | | | | |
| | For the Three Months Ended March 31, 2015 |
| | Beverage | | Packaged | | Latin America | | |
Percent change | | Concentrates | | Beverages | | Beverages | | Total |
Reported net sales | | 1 | % | | 5 | % | | 2 | % | | 4 | % |
Impact of foreign currency | | 1 | % | | — | % | | 12 | % | | 1 | % |
Net sales, as adjusted to currency neutral | | 2 | % | | 5 | % | | 14 | % | | 5 | % |
|
| | | | | | | | | | | | |
| | For the Three Months Ended March 31, 2015 |
| | Beverage | | Packaged | | Latin America | | |
Percent change | | Concentrates | | Beverages | | Beverages | | Total |
Reported SOP | | 5 | % | | 8 | % | | 31 | % | | 7 | % |
Impact of foreign currency | | 1 | % | | 2 | % | | 58 | % | | 3 | % |
SOP, as adjusted to currency neutral | | 6 | % | | 10 | % | | 89 | % | | 10 | % |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(Unaudited, in millions)
|
| | | | | | | | | | | | |
| | For the | | |
| | Three Months Ended | | |
| | March 31, | | |
| | 2015 | | 2014 | | Change |
Net cash provided by operating activities | | $ | 101 |
| | $ | 129 |
| | $ | (28 | ) |
Purchase of property, plant and equipment | | (20 | ) | | (37 | ) | | |
Free Cash Flow | | $ | 81 |
| | $ | 92 |
| | $ | (11 | ) |
RECONCILIATION OF NET INCOME TO CORE EARNINGS
(Unaudited, in millions, except per share data)
|
| | | | | | | | | | | |
| For the Three Months Ended March 31, 2015 |
| Reported | | Mark to Market | | Core |
Net sales | $ | 1,451 |
| | $ | — |
| | $ | 1,451 |
|
Cost of sales | 602 |
| | (2 | ) | | 600 |
|
Gross profit | 849 |
| | 2 |
| | 851 |
|
Selling, general and administrative expenses | 552 |
| | 1 |
| | 553 |
|
Depreciation and amortization | 27 |
| | — |
| | 27 |
|
Other operating expense, net | — |
| | — |
| | — |
|
Income from operations | 270 |
| | 1 |
| | 271 |
|
Interest expense | 27 |
| | — |
| | 27 |
|
Interest income | — |
| | — |
| | — |
|
Other income, net | (1 | ) | | — |
| | (1 | ) |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | 244 |
| | 1 |
| | 245 |
|
Provision for income taxes | 87 |
| | — |
| | 87 |
|
Income before equity in earnings of unconsolidated subsidiaries | 157 |
| | 1 |
| | 158 |
|
Equity in earnings of unconsolidated subsidiaries, net of tax | — |
| | — |
| | — |
|
Net income | $ | 157 |
| | $ | 1 |
| | $ | 158 |
|
| | | | | |
Diluted earnings per common share | $ | 0.81 |
| | $ | — |
| | $ | 0.81 |
|
Effective tax rate | 35.7 | % | | | | 35.5 | % |
Operating margin | 18.6 | % | | | | 18.7 | % |
RECONCILIATION OF NET INCOME TO CORE EARNINGS - (Continued)
(Unaudited, in millions, except per share data)
|
| | | | | | | | | | | |
| For the Three Months Ended March 31, 2014 |
| Reported | | Mark to Market | | Core |
Net sales | $ | 1,398 |
| | $ | — |
| | $ | 1,398 |
|
Cost of sales | 554 |
| | 12 |
| | 566 |
|
Gross profit | 844 |
| | (12 | ) | | 832 |
|
Selling, general and administrative expenses | 554 |
| | — |
| | 554 |
|
Depreciation and amortization | 29 |
| | — |
| | 29 |
|
Other operating expense, net | 1 |
| | — |
| | 1 |
|
Income from operations | 260 |
| | (12 | ) | | 248 |
|
Interest expense | 26 |
| | — |
| | 26 |
|
Interest income | (1 | ) | | — |
| | (1 | ) |
Other income, net | (1 | ) | | — |
| | (1 | ) |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | 236 |
| | (12 | ) | | 224 |
|
Provision for income taxes | 81 |
| | (4 | ) | | 77 |
|
Income before equity in earnings of unconsolidated subsidiaries | 155 |
| | (8 | ) | | 147 |
|
Equity in earnings of unconsolidated subsidiaries, net of tax | — |
| | — |
| | — |
|
Net income | $ | 155 |
| | $ | (8 | ) | | $ | 147 |
|
| | | | | |
Diluted earnings per common share | $ | 0.78 |
| | $ | (0.04 | ) | | $ | 0.74 |
|
Effective tax rate | 34.3 | % | | | | 34.4 | % |
Operating margin | 18.6 | % | | | | 17.7 | % |
Keurig Dr Pepper (NYSE:KDP)
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From Mar 2024 to Apr 2024
Keurig Dr Pepper (NYSE:KDP)
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From Apr 2023 to Apr 2024
