ORLANDO, Fla., April 22,
2015 /PRNewswire/ -- (NYSE: TUP) Tupperware Brands
Corporation today announced first quarter 2015 operating
results.
Rick Goings, Chairman and CEO,
commented, "We delivered right in the middle of our sales guidance
in the first quarter, up 3% in local currency, despite a difficult
comparison and a few challenged markets, demonstrating the strength
of our diversified global portfolio. Significant contributors to
sales growth were Argentina,
Brazil, China, Tupperware U.S. and Canada, and the South African businesses."
Goings continued, "We feel confident in our ability to deliver
improved results in the quarter ahead through the levers in our
business model. At the same time, we look toward the future
and executing our strategies to contemporize the business model,
strengthen our core business fundamentals and extend our reach to
better support and grow our 2.9 million global sales
force."
First Quarter Executive Summary
- First quarter 2015 net sales were $582
million. Emerging markets**, accounting for 66% of sales,
achieved an 8% increase in local currency. Established markets were
down 6% in local currency primarily from Europe.
- GAAP net income of $29.5 million,
down 44% versus prior year GAAP net income of $52.2 million. Excluding the impact of foreign
currency rates on the comparison, net income was down 16% versus
prior year. Adjusted diluted E.P.S. of $1.02 included a 33
cent negative impact versus 2014 from changes in foreign
exchange rates, which was four cents
worse than the 29 cent impact
included in January's guidance. Earnings per share without items
was down 22% versus last year in dollars and up 4% in local
currency.
- Total sales force of 2.9 million was up 2% versus prior year at
the end of the quarter.
First Quarter Business Highlights
Europe: Strong increases by
Portugal and the two South African
businesses offset by lower sales in France and Germany
- Segment sales were down 3% in local currency (down 20% in
dollars).
- Emerging markets were up 9% in local currency. Increase driven
by Tupperware South Africa up 17%, Avroy Shlain in South Africa, up 15%, the small Middle East businesses, up 86%, and CIS, up
1%.
- Established markets were down 9% in local currency.
Germany was down 11% unable to
recover from low sales in January. France was down 14% with some offset by
Portugal, up 35% and Austria, up 9%.
Asia Pacific: China, Korea, Tupperware Australia and
New Zealand sales up double digits
partly offset by lower sales in Indonesia
- Sales for the segment were up 3% in local currency (down 4% in
dollars), driven by the emerging markets up 3% in local
currency.
- Emerging Market growth led by China, up 19%, and Korea, up 16%. Malaysia/Singapore was up 6% partly overcoming
difficult externals. Indonesia was
down 6% due to a lower sales force size and poorly accepted
promotional offers. India was down
5% on lower activity, which was a sequential improvement and had a
2% larger sales force size at the end of the quarter.
- Established markets even with prior year from Tupperware
Australia and New Zealand up 16%
on higher active sales force and Nutrimetics Australia and
New Zealand up 9% offset by
Tupperware Japan, down 20%.
Tupperware North America: Sales increase by Tupperware U.S.
and Canada and Tupperware Mexico
core business partly offset by business to business impact in
Tupperware Mexico
- Segment sales up 4% in local currency (down 2% in dollars),
with 3% negative impact from absence of business to business sales.
Tupperware United States and Canada sales were up 7% in local currency with
strong underlying indicators. Sales force size closed 8% above
prior year.
- Tupperware Mexico sales up 1%, including lapping a large
business to business sale in the first quarter 2014. Core business
was up 7%. Sales force size up 3% at the end of first quarter
compared with prior year.
Beauty North America:
BeautiControl and Fuller Mexico sales down driven by lower sales
force size
- Sales for the segment were down 7% in local currency (down 14%
in dollars), 1/2 of which was from the closing in April 2014 of the Armand Dupree business in
the United States.
- BeautiControl sales were down 9%, primarily from lower sales
force activity in light of announced sales force compensation
changes.
- Fuller Mexico local currency
sales were down 2% from the prior year. Continued focus on
stabilizing and growing the number of sales force managers and
total sales force size in a highly challenging external
environment.
South America: Leveraged 8%
larger sales force along with inflation driven price
increases
- Segment sales up 37% in local currency and down 21% in dollars
(excluding Venezuela, up 16% in
dollars), driven by increases in Argentina and Brazil. Brazil was up 46% in local currency, primarily
reflecting higher volume from a large sales force size advantage
and a good activity rate and some timing benefit.
- Argentina was up 36% primarily
due to inflation related higher prices.
- Segment's active sales force was up 5%. The 32 point difference
between the local currency sales and active seller comparisons
reflected pricing in Argentina and
a mix shift towards Brazil that
has a larger average order size, along with its timing
benefit.
2015 Outlook (Unaudited)
Based on current business trends and foreign currency rates, the
Company's second quarter and fiscal 2015 full year guidance is
provided below.
Company Level
|
13 Weeks
Ended
|
|
13 Weeks
|
|
52 Weeks
Ended
|
|
52 Weeks
|
|
Jun 27,
2015
|
|
Ended
|
|
Dec 26,
2015
|
|
Ended
|
|
Low
|
High
|
|
Jun 28,
2014
|
|
Low
|
High
|
|
Dec 27,
2014
|
|
|
|
|
|
|
|
|
|
|
USD Sales Growth vs
Prior Year
|
(13)%
|
(11)%
|
|
(2)%
|
|
(10)%
|
(8)%
|
|
(2)%
|
GAAP EPS
|
0.99
|
$1.04
|
|
$0.93
|
|
$3.80
|
$3.90
|
|
$4.20
|
GAAP Pre-Tax
ROS
|
11.8%
|
12.1%
|
|
10.4%
|
|
11.3%
|
11.4%
|
|
11.4%
|
|
|
|
|
|
|
|
|
|
|
Local
Currency+ Sales Growth vs Prior
Year
|
5%
|
7%
|
|
3%
|
|
4%
|
6%
|
|
5%
|
EPS Excluding
Items*
|
$1.14
|
$1.19
|
|
$1.47
|
|
$4.60
|
$4.70
|
|
$5.38
|
Pre-Tax ROS Excluding
Items*
|
13.1%
|
13.4%
|
|
14.7%
|
|
13.2%
|
13.3%
|
|
13.9%
|
|
|
|
|
|
|
|
|
|
|
FX Impact on EPS
Comparison (a)
|
($0.40)
|
($0.40)
|
|
|
|
($1.13)
|
($1.13)
|
|
|
(a) Impact of changes in foreign currency versus prior
year are updated monthly and posted at: Tupperware Brands
Foreign Exchange Impact.
Full year 2015
- Tax rate excluding items is expected to be 25.5%, and 27.8% on
a U.S. GAAP basis.
- Venezuela:
- For full year 2015, in the table above, of the $1.13 negative year-over-year impact of changes
in rates on diluted earnings per share, 28
cents relates to weaker rates for the Venezuelan bolivar.
The bolivar to U.S. dollar exchange rate used in translating the
Company's first quarter 2014 operating activity was 6.3 bolivars to the U.S. dollar, was 10.8 bolivars to the U.S. dollar in the second
quarter and was 50.0 in the second half of 2014 and January 2015. In February
2015, the Venezuelan government launched an overhaul of its
foreign currency exchange structure for obtaining U.S. dollars,
eliminating the SICAD 2 auction process and introducing the
Marginal Currency System, or Simadi, whose rate was approximately
195.0 bolivars to the U.S. dollar as
of April 20, 2015. The Company used
the Simadi rate to translate its February and March 2015 operating activity and has assumed it
will use the Simadi rate to translate its future operating
activity.
- As a unit accounted for as hyperinflationary under U.S. GAAP,
Venezuela's functional currency is
the U.S. dollar and the impact of changes in the bolivar to U.S.
dollar exchange rate on the unit's net monetary assets are
reflected as a transactional impact in the Company's net income
rather than as a cumulative translation adjustment. Assuming that
the current Simadi exchange rate of approximately 195.0 continues
in 2015, there will be a negative translation impact from
Venezuela on the Company's second
quarter sales comparisons of 3.3 percentage points and 2.3
percentage points on the full year comparison, and a negative
impact on the diluted earnings per share comparisons with 2014 in
the second quarter, and full year of 13
cents, and 28 cents,
respectively. Second quarter 2014 sales and segment profit in
Venezuela were $24 million and $9
million, respectively. In the second half of 2014, sales and
segment profit in Venezuela were
$10 million and $1.4 million respectively.
Segment Level
- For the full year, sales in local currency are expected to be
about even in Europe, up
mid-single digit in Asia Pacific,
even to up low single digit in Tupperware North America, even to
down low single digit in Beauty North America and up high 20s% in
South America.
- Pre-tax return on sales without items for the full year, versus
2014, is expected to be about even in Europe and Asia
Pacific, down around 1 point in Tupperware North America, up
about 2 points in Beauty North America, and down about 0.5 points
in dollars and up about 2.5 points in local currency in
South America.
* See Non-GAAP Financial Measures Reconciliation Schedules.
** The Company classifies Established Market Units as those
operating in Western Europe,
including Scandinavia, the United
States, Canada,
Australia and Japan and its remaining units as Emerging
Market Units.
+ Local currency changes are measured by comparing
current year results with those of the prior year translated at the
current year's foreign exchange rates.
First Quarter Earnings Conference Call
Tupperware Brands will conduct a conference call today,
Wednesday, April 22, 2015, at 8:30 am
Eastern time. The conference call will be webcast and
accessible, along with a copy of this news release, on
www.tupperwarebrands.com.
Tupperware Brands Corporation is the leading global
marketer of innovative, premium products across multiple brands
utilizing a relationship based selling method through an
independent sales force of 2.9 million. Product brands and
categories include design-centric preparation, storage and serving
solutions for the kitchen and home through the Tupperware brand and
beauty and personal care products through the Avroy Shlain,
BeautiControl, Fuller Cosmetics, NaturCare, Nutrimetics, and Nuvo
brands.
The Company's stock is listed on the New York Stock Exchange
(NYSE: TUP). Statements contained in this release, which are not
historical fact and use predictive words such as "outlook",
"guidance", "expects" or "target" are forward-looking
statements. These statements involve risks and uncertainties
that include recruiting and activity of the Company's independent
sales forces, the success of new product introductions and
promotional programs, governmental approvals of materials for use
in food containers and beauty and personal care products, the
success of buyers in obtaining financing or attracting tenants for
commercial and residential developments, the effects of economic
and political conditions generally and foreign exchange risk in
particular and other risks detailed in the Company's periodic
reports as filed in accordance with the Securities Exchange Act of
1934.
The Company updates each month the impact of changes in foreign
exchange rates versus the prior year, posting it on; Tupperware
Brands Foreign Exchange Impact. Other than updating for
changes in foreign currency exchange rates, the Company does not
intend to update forward-looking information, except through its
quarterly earnings releases, unless it expects diluted earnings per
share for the current quarter, excluding items impacting
comparability and changes versus its guidance of the impact of
changes in foreign exchange rates, to be significantly below its
previous guidance.
Non-GAAP Financial Measures
The Company has utilized non-GAAP financial measures in this
release, which are provided to assist readers' understanding of the
Company's results of operations. These amounts, identified as items
impacting comparability, at times materially impact the
comparability of the Company's results of operations. The adjusted
information is intended to be indicative of Tupperware Brands'
primary operations, and to assist readers in evaluating performance
and analyzing trends across periods. These results should be
considered in addition to, not as a substitute for, results
reported in accordance with GAAP.
The non-GAAP financial measures exclude gains from the sale of
property, plant and equipment and insurance settlements related to
casualty losses, inventory obsolescence in conjunction with
decisions to exit or significantly restructure businesses, asset
retirement obligations, re-engineering and fixed asset impairment
charges and beginning in 2015 pension settlements. Further,
while the Company is engaged in a multi-year program to sell land
adjacent to its Orlando, Florida
headquarters, and also disposes of other excess land and facilities
periodically, these activities are not part of the Company's
primary business operations. Additionally, amounts recognized
in any given period are not indicative of amounts that may be
recognized in any particular future period. For this
reason, these amounts are excluded as indicated. Further, the
Company excludes significant charges related to casualty losses
caused by significant weather events, fires or similar
circumstances. It also excludes any related gains resulting from
the settlement of associated insurance claims. While these types of
events can and do recur periodically, they are excluded from
indicated financial information due to their distinction from
ongoing business operations, inherent volatility and impact on the
comparability of earnings across quarters. Also, the Company
periodically records exit costs accounted for using the applicable
accounting guidance for exit or disposal cost obligations and other
amounts related to rationalizing its supply chain operations and
other restructuring activities, including upon liquidation of
operations in a country the recognition in income of amounts
previously recorded in equity as a cumulative translation
adjustment, and pension settlements, and believes these amounts are
similarly volatile and impact the comparability of earnings across
quarters. Therefore, they are also excluded from indicated
financial information to provide what the Company believes
represents a useful measure for analysis and predictive
purposes.
The Company believes that excluding from indicated financial
information costs incurred in connection with a significant change
in its capital structure that is of a nature that would be expected
to recur sporadically, also provides a useful measure for analysis
and predictive purposes. The Venezuelan government over the
last several years has severely restricted the ability to translate
bolivars into U.S. dollars and has mandated at various levels the
exchange rate for U.S. dollars. Due to the sporadic timing and
magnitude of changes in the mandated exchange rates, the Company's
non-GAAP measures exclude for analysis and predictive purposes, the
impact from devaluations on the bolivar denominated net monetary
assets and other balance sheet positions that impact near term
income since they appear in the income statement at the exchange
rate at which they were originally translated rather than the
exchange rate at which current operating activity is being
translated, as well as gains from obtaining U.S. dollars at
exchange rates more favorable than those at which the bolivars were
last recorded. These items have occurred recently for
reporting purposes in the first, second and third quarters of 2014
and the first quarter of 2015.
The Company has also elected to present financial measures
excluding the impact of amortizing the purchase accounting carrying
value of certain definite-lived intangible assets, primarily the
value of its Fuller trade name recorded in connection with the
Company's December 2005 acquisition
of the direct selling businesses of Sara Lee Corporation. The
amortization expense related to these assets will continue for
several years. Similarly, in connection with its evaluation
of the carrying value of acquired intangible assets and goodwill,
the Company has periodically recognized impairment charges.
The Company believes that these types of non-cash charges will not
be representative in any single reporting period of amounts
recorded in prior reporting periods or expected to be recorded in
future reporting periods. Therefore, they are excluded from
indicated financial information to also provide a useful measure
for analysis and predictive purposes.
As the impact of changes in exchange rates is an important
factor in understanding period-to-period comparisons, the Company
believes the presentation of results on a local currency basis, in
addition to reported results, helps improve readers' ability to
understand the Company's operating results and evaluate performance
in comparison with prior periods. The Company presents local
currency information that compares results between periods as if
current period exchange rates had been the exchange rates in the
prior period. This includes the impact on sales and earnings from
currency devaluations in Venezuela. The Company uses results
on a local currency basis as one measure to evaluate
performance. The Company generally refers to such
amounts as calculated on a local currency basis, as restated or
excluding the impact of foreign currency. These results should be
considered in addition to, not as a substitute for, results
reported in accordance with GAAP. Results on a local currency basis
may not be comparable to similarly titled measures used by other
companies and are not measures of performance presented in
accordance with GAAP.
In information included with this release, the Company has
referred to Adjusted EBITDA and a Debt/Adjusted EBITDA ratio, which
are non-GAAP financial measures used in the Company's credit
agreement. The Company uses these measures in its capital
allocation decision process and in discussions with investors,
analysts and other interested parties and therefore believes it is
useful to disclose this amount and ratio. The Company's calculation
of these measures is in accordance with its credit agreement, and
is set forth in the reconciliation from GAAP amounts in an
attachment to this release; however, the reader is cautioned that
other companies define these measures in different ways, and
consequently they will likely not be comparable with similarly
labeled amounts disclosed by others.
TUPPERWARE
BRANDS CORPORATION
|
FIRST QUARTER
SALES STATISTICS*
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
All
Units
|
Reported
Sales
Inc/(Dec)%
|
Restated+
Sales
Inc/(Dec)%
|
|
Active
Sales
Force
|
Inc/(Dec)
vs. Q1
'14
%
|
|
Total
Sales
Force
|
Inc/(Dec)
vs. Q1
'14
%
|
|
Europe
|
(20)
|
(3)
|
|
102,566
|
|
(1)
|
a,b
|
681,239
|
|
—
|
|
Asia
Pacific
|
(4)
|
3
|
|
238,627
|
|
2
|
c
|
1,045,518
|
|
2
|
|
TW North
America
|
(2)
|
4
|
|
100,470
|
|
4
|
d
|
355,043
|
|
4
|
|
Beauty North
America
|
(14)
|
(7)
|
|
220,491
|
|
(8)
|
e
|
440,755
|
|
(5)
|
|
South
America
|
(21)
|
37
|
|
103,852
|
|
5
|
f
|
403,652
|
|
8
|
|
Total All
Units
|
(12)
|
3
|
|
766,006
|
|
(1)
|
|
2,926,207
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Emerging Market
Units
|
|
|
|
|
|
|
|
|
|
Europe
|
(6)
|
9
|
|
65,740
|
|
3
|
a
|
490,172
|
|
—
|
|
Asia
Pacific
|
(2)
|
3
|
|
208,291
|
|
1
|
|
930,551
|
|
2
|
|
TW North
America
|
(10)
|
1
|
|
89,074
|
|
3
|
|
265,113
|
|
3
|
|
Beauty North
America
|
(12)
|
(2)
|
|
195,635
|
|
(7)
|
|
373,863
|
|
(4)
|
|
South
America
|
(21)
|
37
|
|
103,852
|
|
5
|
f
|
403,652
|
|
8
|
|
Total Emerging Market
Units
|
(9)
|
8
|
|
662,592
|
|
(1)
|
|
2,463,351
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Established Market
Units
|
|
|
|
|
|
|
|
|
|
Europe
|
(26)
|
(9)
|
|
36,826
|
|
(9)
|
b
|
191,067
|
|
1
|
b
|
Asia
Pacific
|
(13)
|
—
|
|
30,336
|
|
9
|
c
|
114,967
|
|
6
|
|
TW North
America
|
5
|
7
|
|
11,396
|
|
16
|
d
|
89,930
|
|
8
|
|
Beauty North
America
|
(21)
|
(20)
|
|
24,856
|
|
(13)
|
e
|
66,892
|
|
(12)
|
|
South
America
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
Total Established
Market Units
|
(18)
|
(6)
|
|
103,414
|
|
(3)
|
|
462,856
|
|
1
|
|
* Sales force statistics as collected by the Company and, in
some cases, provided by distributors and sales force. The
Company classifies Established Market Units as those operating in
Western Europe, including
Scandinavia, the United States,
Canada, Australia and Japan, and its remaining units as Emerging
Market Units. Active Sales Force is defined as the average
number of people ordering in each cycle over the course of the
quarter, and Total Sales Force is defined as the number of sales
force members of the units as of the end of the quarter.
+ Local currency, or restated, changes are measured by
comparing current year results with those of the prior year
translated at the current year's foreign exchange rates.
Notes
a The higher local currency sales than active seller
increase in Europe emerging
markets reflected lower active sellers and higher productivity in
CIS, in light of a change in standards and approach, as well as a
mix shift away from units with a lower than average order size.
b The decrease in active sellers in Europe established markets, with a small
increase in total sellers, most significantly reflected a poor
response to promotional offers in Germany in January.
c More active sellers with even sales in Asia Pacific established markets reflected a
lower order average in Tupperware Australia/New Zealand, as well as a better engagement of
casual sellers in the Nutrimetics Australia/New Zealand unit.
d More new sellers in the
United States and Canada
contributed to the higher number of active sellers in Tupperware
North America established markets caption, at a smaller average
order size as the new sellers got engaged in the business.
e The more significant decrease in sales than in active
sellers in Beauty North America established markets reflected a
lower order size at BeautiControl from smaller orders following a
change in the sales force compensation approach, and the absence of
sales by the high order size Armand Dupree business in the United States, which stopped operating in
the second quarter of 2014.
f The much higher local currency sales increase in
South America, compared with the
increase in active sellers, primarily reflected inflation driven
price increases in Argentina, a
mix shift toward Brazil that has a
higher than average order size and lapping of 2014 supply chain
issues and orders prior to a price increase in Brazil.
TUPPERWARE
BRANDS CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
(In millions,
except per share data)
|
13 Weeks
Ended
|
|
Mar 28,
2015
|
|
Mar 29,
2014
|
Net sales
|
$
|
581.8
|
|
|
$
|
663.2
|
|
Cost of products
sold
|
191.6
|
|
|
221.6
|
|
Gross
margin
|
390.2
|
|
|
441.6
|
|
|
|
|
|
Delivery, sales and
administrative expense
|
313.4
|
|
|
344.5
|
|
Re-engineering and
impairment charges
|
16.2
|
|
|
2.3
|
|
Gains on disposal of
assets
|
0.6
|
|
|
1.8
|
|
Operating
income
|
61.2
|
|
|
96.6
|
|
|
|
|
|
Interest
income
|
0.5
|
|
|
0.7
|
|
Interest
expense
|
13.3
|
|
|
12.4
|
|
Other expense,
net
|
7.2
|
|
|
14.1
|
|
Income before income
taxes
|
41.2
|
|
|
70.8
|
|
Provision for income
taxes
|
11.7
|
|
|
18.6
|
|
Net income
|
$
|
29.5
|
|
|
$
|
52.2
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
Basic earnings per
share
|
$
|
0.59
|
|
|
$
|
1.04
|
|
Diluted earnings per
share
|
$
|
0.59
|
|
|
$
|
1.02
|
|
TUPPERWARE
BRANDS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
Mar 28,
2015
|
|
Mar 29,
2014
|
|
%
|
|
%
|
|
Exchange
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
Net
Sales:
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
171.7
|
|
|
$
|
213.3
|
|
|
(20)
|
|
|
(3)
|
|
|
$
|
(36.0)
|
|
Asia
Pacific
|
191.7
|
|
|
199.0
|
|
|
(4)
|
|
|
3
|
|
|
(12.2)
|
|
TW North
America
|
79.5
|
|
|
81.5
|
|
|
(2)
|
|
|
4
|
|
|
(5.1)
|
|
Beauty North
America
|
62.9
|
|
|
73.5
|
|
|
(14)
|
|
|
(7)
|
|
|
(6.0)
|
|
South
America
|
76.0
|
|
|
95.9
|
|
|
(21)
|
|
|
37
|
|
|
(40.4)
|
|
|
$
|
581.8
|
|
|
$
|
663.2
|
|
|
(12)
|
|
|
3
|
|
|
$
|
(99.7)
|
|
|
|
|
|
|
|
|
|
|
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
29.3
|
|
|
$
|
40.3
|
|
|
(27)
|
|
|
(14)
|
|
|
$
|
(6.3)
|
|
Asia
Pacific
|
39.0
|
|
|
40.9
|
|
|
(5)
|
|
|
1
|
|
|
(2.2)
|
|
TW North
America
|
13.0
|
|
|
13.6
|
|
|
(4)
|
|
|
6
|
|
|
(1.3)
|
|
Beauty North
America
|
(0.3)
|
|
|
(0.7)
|
|
|
(56)
|
|
|
(80)
|
|
|
(0.9)
|
|
South
America
|
3.2
|
|
|
3.4
|
|
|
(4)
|
|
|
—
|
|
|
(10.3)
|
|
|
84.2
|
|
|
97.5
|
|
|
(14)
|
|
|
10
|
|
|
(21.0)
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(14.6)
|
|
|
(14.4)
|
|
|
2
|
|
|
(9)
|
|
|
(1.8)
|
|
Gains on disposal of
assets
|
0.6
|
|
|
1.8
|
|
|
(64)
|
|
|
(64)
|
|
|
—
|
|
Re-engineering and
impairment charges
|
(16.2)
|
|
|
(2.3)
|
|
|
+
|
|
+
|
|
—
|
|
Interest expense,
net
|
(12.8)
|
|
|
(11.8)
|
|
|
10
|
|
|
10
|
|
|
—
|
|
Income before
taxes
|
41.2
|
|
|
70.8
|
|
|
(42)
|
|
|
(14)
|
|
|
(22.8)
|
|
Provision for income
taxes
|
11.7
|
|
|
18.6
|
|
|
(37)
|
|
|
(9)
|
|
|
(5.7)
|
|
Net income
|
$
|
29.5
|
|
|
$
|
52.2
|
|
|
(44)
|
|
|
(16)
|
|
|
$
|
(17.1)
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share (diluted)
|
$
|
0.59
|
|
|
$
|
1.02
|
|
|
(42)
|
|
|
(14)
|
|
|
$
|
(0.33)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares
|
50.3
|
|
|
51.1
|
|
|
|
|
|
|
|
* 2015 actual compared with 2014 translated at 2015 exchange
rates
+ Greater than 100% change
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(UNAUDITED)
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks Ended Mar
28, 2015
|
|
13 Weeks Ended Mar
29, 2014
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
29.3
|
|
|
$
|
—
|
|
|
$
|
29.3
|
|
|
$
|
40.3
|
|
|
$
|
—
|
|
|
$
|
40.3
|
|
Asia
Pacific
|
39.0
|
|
|
0.6
|
|
a
|
39.6
|
|
|
40.9
|
|
|
0.6
|
|
a
|
41.5
|
|
TW North
America
|
13.0
|
|
|
—
|
|
|
13.0
|
|
|
13.6
|
|
|
—
|
|
|
13.6
|
|
Beauty North
America
|
(0.3)
|
|
|
2.0
|
|
a
|
1.7
|
|
|
(0.7)
|
|
|
3.7
|
|
a,d
|
3.0
|
|
South
America
|
3.2
|
|
|
9.4
|
|
a,b
|
12.6
|
|
|
3.4
|
|
|
13.6
|
|
a,b
|
17.0
|
|
|
84.2
|
|
|
12.0
|
|
|
96.2
|
|
|
97.5
|
|
|
17.9
|
|
|
115.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(14.6)
|
|
|
—
|
|
|
(14.6)
|
|
|
(14.4)
|
|
|
—
|
|
|
(14.4)
|
|
Gains on disposal of
assets
|
0.6
|
|
|
(0.6)
|
|
c
|
—
|
|
|
1.8
|
|
|
(1.8)
|
|
c
|
—
|
|
Re-engineering and
impairment charges
|
(16.2)
|
|
|
16.2
|
|
d
|
—
|
|
|
(2.3)
|
|
|
2.3
|
|
d
|
—
|
|
Interest expense,
net
|
(12.8)
|
|
|
—
|
|
|
(12.8)
|
|
|
(11.8)
|
|
|
—
|
|
|
(11.8)
|
|
Income before
taxes
|
41.2
|
|
|
27.6
|
|
|
68.8
|
|
|
70.8
|
|
|
18.4
|
|
|
89.2
|
|
Provision for income
taxes
|
11.7
|
|
|
5.9
|
|
e
|
17.6
|
|
|
18.6
|
|
|
3.7
|
|
e
|
22.3
|
|
Net income
|
$
|
29.5
|
|
|
$
|
21.7
|
|
|
$
|
51.2
|
|
|
$
|
52.2
|
|
|
$
|
14.7
|
|
|
$
|
66.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share (diluted)
|
$
|
0.59
|
|
|
$
|
0.43
|
|
|
$
|
1.02
|
|
|
$
|
1.02
|
|
|
$
|
0.29
|
|
|
$
|
1.31
|
|
a Amortization of intangibles of acquired beauty
units.
b As a result of step devaluations in the Venezuelan
bolivar from 6.3 bolivars per U.S.
dollar to 10.8 bolivars per U.S
dollar as of the end of March 2014
and 50 bolivars per U.S. dollar to
172 and 190 bolivars per U.S. dollar
as of the end of January 2015 and
February 2015, respectively, the
Company had impacts of $9.3 million
in 2015 and $13.4 million in
2014. These amounts related to expense from re-measuring
bolivar denominated net monetary assets at the lower exchange rates
at the times of devaluations, along with the impact of recording in
income amounts on the balance sheet when the devaluations occurred,
primarily inventory, at which the amounts went on the balance
sheet, rather than the exchange rates in use when they were
included in income.
c Gain on disposal of assets of $0.6 million in 2015 and $1.8 million in 2014 was primarily from the sale
of land near the Orlando, FL
headquarters.
d In both years, re-engineering and impairment charges
were primarily related to severance costs incurred for headcount
reduction in several of the Company's operations in connection with
changes in its management and organizational structures. Also
included was a $13.5 million fixed
asset impairment in Venezuela in
2015, and in 2014, a $1.6 million
inventory obsolescence charge related to the decision to cease
operating the Armand Dupree business in the United States.
e Provision for income taxes represents the net tax
impact of adjusted amounts.
See note regarding non-GAAP financial measures in the attached
press release.
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
March 28,
2015
|
|
March 29,
2014
|
Operating
Activities:
|
|
|
|
Net cash used in
operating activities
|
$
|
(13.8)
|
|
|
$
|
(18.3)
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(13.9)
|
|
|
(14.4)
|
|
Proceeds from
disposal of property, plant & equipment
|
2.1
|
|
|
4.2
|
|
Net cash used in
investing activities
|
(11.8)
|
|
|
(10.2)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Dividend payments to
shareholders
|
(33.7)
|
|
|
(32.6)
|
|
Repurchase of common
stock
|
(0.9)
|
|
|
(16.9)
|
|
Repayment of
long-term debt and capital lease obligations
|
(0.9)
|
|
|
(1.0)
|
|
Net change in
short-term debt
|
71.7
|
|
|
58.5
|
|
Proceeds from
exercise of stock options
|
3.1
|
|
|
4.8
|
|
Excess tax benefits
from share-based payment arrangements
|
0.8
|
|
|
5.8
|
|
Net cash provided by
financing activities
|
40.1
|
|
|
18.6
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(7.6)
|
|
|
(17.8)
|
|
Net change in cash
and cash equivalents
|
6.9
|
|
|
(27.7)
|
|
Cash and cash
equivalents at beginning of year
|
77.0
|
|
|
127.3
|
|
Cash and cash
equivalents at end of period
|
$
|
83.9
|
|
|
$
|
99.6
|
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
Mar 28,
2015
|
|
Dec 27,
2014
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
83.9
|
|
|
$
|
77.0
|
|
Other current
assets
|
667.8
|
|
|
675.7
|
|
Total current
assets
|
751.7
|
|
|
752.7
|
|
|
|
|
|
Property, plant and
equipment, net
|
264.7
|
|
|
290.3
|
|
Other
assets
|
714.6
|
|
|
734.9
|
|
Total
assets
|
$
|
1,731.0
|
|
|
$
|
1,777.9
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Short-term borrowings
and current portion of long-term debt
|
$
|
268.5
|
|
|
$
|
219.3
|
|
Accounts payable and
other current liabilities
|
470.7
|
|
|
526.0
|
|
Total current
liabilities
|
739.2
|
|
|
745.3
|
|
|
|
|
|
Long-term
debt
|
609.9
|
|
|
612.1
|
|
Other
liabilities
|
216.7
|
|
|
234.7
|
|
Total shareholders'
equity
|
165.2
|
|
|
185.8
|
|
Total liabilities and
shareholders' equity
|
$
|
1,731.0
|
|
|
$
|
1,777.9
|
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
April 22,
2015
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Second
Quarter
|
(In millions,
except per share data)
|
2014
Actual
|
|
2015
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
70.0
|
|
$
|
69.6
|
|
|
$
|
72.9
|
|
|
|
|
|
|
|
Income tax
|
$
|
22.4
|
|
$
|
19.8
|
|
|
$
|
20.6
|
|
Effective
Rate
|
32%
|
|
28
|
%
|
|
28
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
47.6
|
|
$
|
49.8
|
|
|
$
|
52.3
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
5
|
%
|
|
10
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
(0.5)
|
|
—
|
|
|
—
|
|
Re-engineering and
impairment charges
|
4.1
|
|
3.6
|
|
|
3.6
|
|
Net impact of
Venezuelan bolivar devaluations
|
22.2
|
|
1.0
|
|
|
1.0
|
|
Acquired intangible
asset amortization
|
3.1
|
|
2.7
|
|
|
2.7
|
|
Income
tax(2)
|
(1.4)
|
|
0.2
|
|
|
0.2
|
|
Net Income
(adjusted)
|
$
|
75.1
|
|
$
|
57.3
|
|
|
$
|
59.8
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
(20.7)
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2014 restated for currency changes)
|
$
|
54.4
|
|
$
|
57.3
|
|
|
$
|
59.8
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
5
|
%
|
|
10
|
%
|
|
|
|
|
|
|
Net income (GAAP) per
common share (diluted)
|
$
|
0.93
|
|
$
|
0.99
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
6
|
%
|
|
12
|
%
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
1.47
|
|
$
|
1.14
|
|
|
$
|
1.19
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
1.07
|
|
$
|
1.14
|
|
|
$
|
1.19
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
7
|
%
|
|
11
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
51.1
|
|
50.4
|
|
|
50.4
|
|
(1) Refer to Non-GAAP Financial Measures section of
attached release for description of the general nature of
adjustment items
(2) Represents income tax impact of adjustments on an
item-by-item basis
(3) Difference between 2014 actual and 2014 translated
at current currency exchange rates
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
April 22,
2015
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Full
Year
|
|
Full
Year
|
(In millions,
except per share data)
|
2014
Actual
|
|
2015
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
298.2
|
|
$
|
265.3
|
|
$
|
272.1
|
|
|
|
|
|
|
Income tax
|
$
|
83.8
|
|
$
|
73.8
|
|
$
|
75.5
|
Effective
Rate
|
28%
|
|
28%
|
|
28%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
214.4
|
|
$
|
191.5
|
|
$
|
196.6
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(11)%
|
|
(8)%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
$
|
(2.7)
|
|
$
|
(0.7)
|
|
$
|
(0.7)
|
Re-engineering,
impairments and pension settlements
|
13.4
|
|
24.6
|
|
24.6
|
Net impact of
Venezuelan bolivar devaluations
|
42.4
|
|
10.3
|
|
10.3
|
Acquired intangible
asset amortization
|
11.9
|
|
10.9
|
|
10.9
|
Income
tax(2)
|
(4.8)
|
|
(5.3)
|
|
(5.3)
|
Net Income
(adjusted)
|
$
|
274.6
|
|
$
|
231.3
|
|
$
|
236.4
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
(57.9)
|
|
—
|
|
—
|
Net Income (adjusted
and 2014 restated for currency changes)
|
$
|
216.7
|
|
$
|
231.3
|
|
$
|
236.4
|
|
|
|
|
|
|
% change from prior
year
|
|
|
7%
|
|
9%
|
|
|
|
|
|
|
Net income (GAAP) per
common share (diluted)
|
$
|
4.20
|
|
$
|
3.80
|
|
$
|
3.90
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(10)%
|
|
(7)%
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
5.38
|
|
$
|
4.60
|
|
$
|
4.70
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
4.25
|
|
$
|
4.60
|
|
$
|
4.70
|
|
|
|
|
|
|
% change from prior
year
|
|
|
8%
|
|
11%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
51.0
|
|
50.3
|
|
50.3
|
(1) Refer to Non-GAAP Financial Measures section of
attached release for description of the general nature of
adjustment items
(2) Represents income tax impact of adjustments on an
item-by-item basis
(3) Difference between 2014 actual and 2014 translated
at current currency exchange rates
TUPPERWARE BRANDS
CORPORATION
|
ADJUSTED EBITDA
AND DEBT/ADJUSTED EBITDA*
|
(UNAUDITED)
|
|
|
|
|
As of and for
the
four quarters ended
|
|
|
March 28,
2015
|
|
Adjusted
EBITDA:
|
|
|
Net income
|
$
|
191.7
|
|
Add:
|
|
|
Depreciation and
amortization
|
63.4
|
|
Gross interest
expense
|
47.4
|
|
Provision for income
taxes
|
76.9
|
|
Pretax non-cash
re-engineering and impairment charges
|
15.5
|
|
Equity
compensation
|
17.7
|
|
Deduct:
|
|
|
Gains on land sales,
insurance recoveries, etc.
|
(1.5)
|
|
Total Adjusted
EBITDA
|
$
|
411.1
|
|
|
|
|
Consolidated total
debt
|
$
|
878.4
|
|
Divided by adjusted
EBITDA
|
411.1
|
|
Debt to Adjusted
EBITDA Ratio
|
2.14
|
a
|
* Amounts and calculations are based on the definitions and
provisions of the Company's $650
million Credit Agreement dated September 11, 2013 and, where applicable, are
based on the trailing four quarter amounts. "Adjusted EBITDA"
is calculated as defined for "Consolidated EBITDA" in the Credit
Agreement.
a There is a $37.8 million
impact on adjusted EBITDA from the Venezuelan fixed asset
impairment and bolivar devaluations occurring in the four quarters
ending March 2015 that increased the
debt to adjusted EBITDA ratio by 0.18.
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SOURCE Tupperware Brands Corporation