Date of Report (Date of earliest event reported) October 25, 2017 | |||
TUPPERWARE BRANDS CORPORATION | |||
(Exact name of registrant as specified in its charter) | |||
Delaware | 1-11657 | 36-4062333 | |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |
14901 South Orange Blossom Trail, Orlando, Florida | 32837 | ||
(Address of principal executive offices) | (Zip Code) | ||
Registrant's telephone number, including area code 407-826-5050 | |||
____________________________________ | |||
(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 (see General Instruction A.2. below): | |||
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-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. | |||
o Emerging growth company | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | |||
TUPPERWARE BRANDS CORPORATION | ||
(Registrant) | ||
Date: October 25, 2017 | By: | /s/ Karen M. Sheehan |
Karen M. Sheehan | ||
Senior Vice President, General Counsel & Secretary |
Exhibit Number | Description |
Exhibit 99.1 |
![]() | |
News Release | |
Tupperware Brands Corp. | |
14901 S. Orange Blossom Trail | |
Orlando, FL 32837 | |
Investor Contact: James Hunt (407) 826-4475 |
• | Third quarter sales up 3% versus last year, 2% in local currency+. |
• | Diluted E.P.S. $0.61 versus $0.96 in prior year, which included higher gains on sale of land. The 2017 result includes higher restructuring charges than in 2016. |
• | Adjusted*, diluted E.P.S. 1.03, up 18% and 17% in local currency, was 7-cents above the high-end of guidance range. There was a 1-cent negative impact from weaker exchange rates versus July guidance. |
• | Third quarter 2017 net sales were $539.5 million, up 3% (2% local currency). Emerging markets**, accounting for 71% of sales, were up 4% (3% local currency). The most significant contributions to the third quarter growth in local currency were in Brazil and China, partially offset by India and Indonesia. Established market sales increased 3% (decreased 1% local currency). Contributing to the local currency sales decrease were France, Germany and Nutrimetics Australia, partially offset by Beauticontrol and the United States and Canada. |
• | Net income and diluted earnings per share were $31.4 million and $0.61, versus $48.8 million and $0.96 in 2016, respectively. In 2017, net income included $20 million lower pre-tax gains from real estate transactions and higher pre-tax restructuring costs of $11 million, including from the winding down of Beauticontrol. Adjusted, diluted earnings per share of $1.03 was 18% higher (17% local currency). This was 7-cents above the high-end of the July guidance range. Versus the July guidance, there was a 1-cent negative impact on diluted earnings per share comparison from net weaker foreign exchange rates, while there was a 1-cent benefit versus the same period in 2016. |
• | Total sales force of 3.2 million was up 4%. This was a 1-point sequential improvement from the end of the second quarter, including a 2-point negative impact from removing the Beauticontrol sales force. Average active sellers in the third quarter were down 4%. This was a 3-point improvement from the second quarter. |
• | Emerging markets in Europe were up 9% (7% local currency), mainly in CIS, up 23% (13% local currency) and Tupperware South Africa, up 12% (7% local currency). |
• | Established markets were down 1% (7% local currency), primarily in France, which was down 19% (24% local currency), and Germany down 2% (8% local currency). |
• | Emerging markets in Asia Pacific were down 2% (even in local currency), reflecting sales in China, up 33% on the strength of 62% more members and continued leveraging of the product portfolio, digital technologies and its 5,900 studios (7% advantage over 2016). This was offset by decreases in India, down 30% (32% local currency), reflecting challenges in reaching a sales force size advantage under the government direct selling guidelines, along with a negative 6% impact from a new goods and services tax effective in July, as well as in Indonesia, down 18% (17% local currency) from fewer active sellers. |
• | Segment's total sales force was 3% lower year-over-year, primarily reflecting a negative 6 percentage point impact from the comparison in India. |
• | Tupperware United States and Canada sales were up 8% (7% local currency). |
• | Tupperware Mexico sales were up 9% (3% local currency), despite impact from natural disasters during the quarter. |
• | Beauticontrol sales were up 25%, or $2.5 million, in connection with sales force stocking during the wind-down period. Beauticontrol lost $3.2 million, $0.9 million and $2.6 million in the third and fourth quarters of 2016 and first seven months of 2017, respectively. It had $9.8 million and $11.5 million of sales in the third and fourth quarters of 2016 and $30.9 million the first nine months of 2017. |
• | Fuller Mexico sales were down 4% (9% local currency), including disruption from natural disasters during the quarter. |
• | Brazil was up 11% (8% local currency), leveraging a 15% sales force size advantage to overcome challenges in the consumer spending environment and lower sales force additions in light of credit scores of some potential sellers. |
• | Sales in Argentina were up 12% (31% local currency) mainly from price increases related to the highly inflationary environment. |
13 Weeks Ended | 14 Weeks | 52 Weeks Ended | 53 Weeks | |||||||||||||||||
Dec. 30, 2017 | Ended | Dec. 30, 2017 | Ended | |||||||||||||||||
Low | High | Dec. 31, 2016 | Low | High | Dec 31, 2016 | |||||||||||||||
USD Sales Growth vs Prior Year | — | % | 2 | % | 1 | % | 2 | % | 3 | % | (3 | )% | ||||||||
GAAP EPS | $0.96 | $1.01 | $1.55 | $2.15 | $2.20 | $4.41 | ||||||||||||||
GAAP Pre-Tax ROS | 12.8 | % | 13.1 | % | 15.6 | % | 8.1 | % | 8.2 | % | 13.6 | % | ||||||||
Local Currency+ Sales Growth vs Prior Year | (3 | )% | (1 | )% | 3 | % | 2 | % | 2 | % | 2 | % | ||||||||
EPS Excluding Items* | $1.48 | $1.53 | $1.45 | $4.74 | $4.79 | $4.39 | ||||||||||||||
Pre-Tax ROS Excluding Items* | 17.0 | % | 17.2 | % | 16.3 | % | 14.4 | % | 14.4 | % | 13.4 | % | ||||||||
FX Impact on EPS Comparison (a) | $0.06 | $0.06 | $0.08 | $0.08 |
• | Fiscal year 2017 includes 52 weeks, while 2016 had 53 weeks. The Company estimates this will have a negative 1 percentage point impact on the year-over-year sales comparison. |
• | The fourth quarter of 2017 will have 13 weeks, while 2016 had 14 weeks. Together with a calendar shift in 2017 from the fourth to the first quarter, there is an estimated negative 5.5 percentage point impact on the fourth quarter comparison. There is also a negative 2% impact on the fourth quarter sales comparison from the wind-down of Beauticontrol in 2017. |
• | Tax rate estimated at 39.9% on a U.S. GAAP basis and 25.5% excluding items. |
• | The losses of Beauticontrol from August onward have been treated as an "item" in reporting non-GAAP information. |
• | Excludes Orlando, Florida land sales that may occur. |
• | For the full year, sales are expected to be about even (down 2 or 3% local currency) in Europe; down 1% in Asia Pacific (even to down 1% in local currency); down 1% in dollars and local currency in North America, including a 3% negative impact from winding down Beauticontrol; and up 20 or 21% (17 or 18% local currency) in South America. |
• | Segment profit return on sales, excluding items, is expected to be down about 1½ points in Europe, to increase about 1½ points in Asia Pacific, to increase almost 2 points in North America and to increase about ½ point in South America. |
TUPPERWARE BRANDS CORPORATION | ||||||||||
THIRD QUARTER 2017 SALES FORCE STATISTICS* | ||||||||||
(UNAUDITED) | ||||||||||
Sales | ||||||||||
All Units | Reported Inc/(Dec) vs. Q3 '16 % | Restated+ Inc/(Dec) vs. Q3 '16 % | Active Sales Force | Inc/(Dec) vs. Q3 '16 % | Total Sales Force | Inc/(Dec) vs. Q3 '16 % | ||||
Europe | 3 | (2) | b | 94,861 | 7 | f | 842,882 | 15 | ||
Asia Pacific | (2) | (1) | c | 197,361 | (13) | g | 1,059,089 | (3) | ||
TW North America | 7 | 4 | 54,764 | 7 | 456,508 | 11 | ||||
Beauty North America | 3 | (1) | e | 170,491 | (9) | 315,864 | (19) | |||
South America | 12 | 13 | 139,580 | 10 | 552,771 | 13 | ||||
Total All Units | 3 | 2 | a | 657,057 | (4) | 3,227,114 | 4 | |||
Emerging Market Units | ||||||||||
Europe | 9 | 7 | 72,190 | 11 | f | 657,099 | 22 | |||
Asia Pacific | (2) | — | c | 170,829 | (11) | g | 953,008 | (2) | ||
TW North America | 7 | 1 | 39,466 | 2 | h | 342,154 | 11 | |||
Beauty North America | (4) | (9) | 153,982 | (8) | 315,864 | (3) | ||||
South America | 12 | 13 | 139,580 | 10 | 552,771 | 13 | ||||
Total Emerging Market Units | 4 | 3 | 576,047 | (2) | 2,820,896 | 7 | ||||
Established Market Units | ||||||||||
Europe | (1) | (7) | 22,671 | (4) | 185,783 | (5) | ||||
Asia Pacific | (7) | (7) | c | 26,532 | (25) | g | 106,081 | (9) | ||
TW North America | 8 | 7 | d | 15,298 | 23 | h | 114,354 | 10 | ||
Beauty North America | 25 | 25 | e | 16,509 | (14) | i | — | — | ||
South America | — | — | — | — | — | — | ||||
Total Established Market Units | 3 | (1) | 81,010 | (11) | 406,218 | (15) |
TUPPERWARE BRANDS CORPORATION | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(In millions, except per share data) | 13 Weeks Ended | 13 Weeks Ended | 39 Weeks Ended | 39 Weeks Ended | |||||||||||
Sep 30, 2017 | Sep 24, 2016 | Sep 30, 2017 | Sep 24, 2016 | ||||||||||||
Net sales | $ | 539.5 | $ | 521.8 | $ | 1,667.2 | $ | 1,612.2 | |||||||
Cost of products sold | 182.7 | 168.4 | 543.0 | 518.3 | |||||||||||
Gross margin | 356.8 | 353.4 | 1,124.2 | 1,093.9 | |||||||||||
Delivery, sales and administrative expense | 283.9 | 284.2 | 882.5 | 871.1 | |||||||||||
Re-engineering and impairment charges | 9.0 | 2.4 | 43.9 | 5.4 | |||||||||||
Impairment of goodwill | — | — | 62.9 | — | |||||||||||
Gains on disposal of assets | 4.1 | 24.2 | 7.3 | 25.1 | |||||||||||
Operating income | 68.0 | 91.0 | 142.2 | 242.5 | |||||||||||
Interest income | 0.8 | 0.8 | 2.0 | 2.3 | |||||||||||
Interest expense | 11.5 | 12.8 | 34.7 | 36.1 | |||||||||||
Other expense, net | 0.9 | (0.3 | ) | 1.6 | 1.0 | ||||||||||
Income before income taxes | 56.4 | 79.3 | 107.9 | 207.7 | |||||||||||
Provision for income taxes | 25.0 | 30.5 | 46.8 | 63.1 | |||||||||||
Net income | $ | 31.4 | $ | 48.8 | $ | 61.1 | $ | 144.6 | |||||||
Net income per common share: | |||||||||||||||
Basic earnings per share | $ | 0.62 | $ | 0.97 | $ | 1.22 | $ | 2.86 | |||||||
Diluted earnings per share | $ | 0.61 | $ | 0.96 | $ | 1.21 | $ | 2.85 |
TUPPERWARE BRANDS CORPORATION | |||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||
(In millions, except per share data) | 13 Weeks Ended | 13 Weeks Ended | Reported | Restated* | Foreign | 39 Weeks Ended | 39 Weeks Ended | Reported | Restated* | Foreign | |||||||||||||||||||||||||
Sep 30, 2017 | Sep 24, 2016 | % | % | Exchange | Sep 30, 2017 | Sep 24, 2016 | % | % | Exchange | ||||||||||||||||||||||||||
Inc (Dec) | Inc (Dec) | Impact* | Inc (Dec) | Inc (Dec) | Impact* | ||||||||||||||||||||||||||||||
Net Sales: | |||||||||||||||||||||||||||||||||||
Europe | $ | 110.8 | $ | 107.3 | 3 | (2 | ) | $ | 5.1 | $ | 395.7 | $ | 399.6 | (1 | ) | (2 | ) | $ | 4.1 | ||||||||||||||||
Asia Pacific | 184.4 | 188.9 | (2 | ) | (1 | ) | (2.1 | ) | 545.2 | 554.8 | (2 | ) | — | (7.6 | ) | ||||||||||||||||||||
TW North America | 94.7 | 88.1 | 7 | 4 | 2.7 | 283.6 | 264.4 | 7 | 8 | (1.4 | ) | ||||||||||||||||||||||||
Beauty North America | 44.4 | 43.2 | 3 | (1 | ) | 1.8 | 128.6 | 145.5 | (12 | ) | (10 | ) | (2.2 | ) | |||||||||||||||||||||
South America | 105.2 | 94.3 | 12 | 13 | (1.1 | ) | 314.1 | 247.9 | 27 | 22 | 9.9 | ||||||||||||||||||||||||
$ | 539.5 | $ | 521.8 | 3 | 2 | $ | 6.4 | $ | 1,667.2 | $ | 1,612.2 | 3 | 3 | $ | 2.8 | ||||||||||||||||||||
Segment profit (loss): | |||||||||||||||||||||||||||||||||||
Europe | $ | (2.4 | ) | $ | (1.8 | ) | (34 | ) | (52 | ) | $ | 0.2 | $ | 29.4 | $ | 38.0 | (23 | ) | (26 | ) | $ | 1.6 | |||||||||||||
Asia Pacific | 49.5 | 46.8 | 6 | 6 | (0.3 | ) | 135.7 | 130.4 | 4 | 5 | (1.6 | ) | |||||||||||||||||||||||
TW North America | 20.3 | 17.2 | 18 | 13 | 0.8 | 57.8 | 51.2 | 13 | 14 | (0.6 | ) | ||||||||||||||||||||||||
Beauty North America | (4.6 | ) | (2.0 | ) | — | — | 0.1 | (5.6 | ) | (2.3 | ) | — | — | (0.2 | ) | ||||||||||||||||||||
South America | 23.6 | 23.9 | (1 | ) | (1 | ) | — | 69.7 | 52.5 | 33 | 27 | 2.5 | |||||||||||||||||||||||
86.4 | 84.1 | 3 | 2 | 0.8 | 287.0 | 269.8 | 6 | 6 | 1.7 | ||||||||||||||||||||||||||
Unallocated expenses | (14.4 | ) | (14.6 | ) | (1 | ) | — | (0.1 | ) | (46.9 | ) | (48.0 | ) | (2 | ) | (2 | ) | (0.1 | ) | ||||||||||||||||
Gains on disposal of assets | 4.1 | 24.2 | (83 | ) | (83 | ) | — | 7.3 | 25.1 | (71 | ) | (71 | ) | — | |||||||||||||||||||||
Re-engineering and impairment charges | (9.0 | ) | (2.4 | ) | + | + | — | (43.9 | ) | (5.4 | ) | + | + | — | |||||||||||||||||||||
Impairment of goodwill | — | — | — | — | — | (62.9 | ) | — | + | + | — | ||||||||||||||||||||||||
Interest expense, net | (10.7 | ) | (12.0 | ) | (10 | ) | (10 | ) | — | (32.7 | ) | (33.8 | ) | (3 | ) | (3 | ) | — | |||||||||||||||||
Income before taxes | 56.4 | 79.3 | (29 | ) | (30 | ) | 0.7 | 107.9 | 207.7 | (48 | ) | (48 | ) | 1.6 | |||||||||||||||||||||
Provision for income taxes | 25.0 | 30.5 | (18 | ) | (18 | ) | 0.2 | 46.8 | 63.1 | (26 | ) | (26 | ) | 0.4 | |||||||||||||||||||||
Net income | $ | 31.4 | $ | 48.8 | (36 | ) | (36 | ) | $ | 0.5 | $ | 61.1 | $ | 144.6 | (58 | ) | (58 | ) | $ | 1.2 | |||||||||||||||
Net income per common share (diluted) | $ | 0.61 | $ | 0.96 | (36 | ) | (37 | ) | $ | 0.01 | $ | 1.21 | $ | 2.85 | (58 | ) | (58 | ) | $ | 0.03 | |||||||||||||||
Weighted average number of diluted shares | 51.3 | 50.8 | 50.5 | 50.7 |
TUPPERWARE BRANDS CORPORATION | |||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||
(In millions, except per share data) | 13 Weeks Ended Sep 30, 2017 | 13 Weeks Ended Sep 24, 2016 | |||||||||||||||||||||||||
Reported | Adj's | Excl Adj's | Reported | Foreign Exchange Impact | Adj's | Restated* Excl Adj's | |||||||||||||||||||||
Segment profit (loss): | |||||||||||||||||||||||||||
Europe | $ | (2.4 | ) | $ | — | $ | (2.4 | ) | $ | (1.8 | ) | $ | 0.2 | $ | 0.3 | b | $ | (1.3 | ) | ||||||||
Asia Pacific | 49.5 | 0.6 | a, f | 50.1 | 46.8 | (0.3 | ) | 0.4 | a | 46.9 | |||||||||||||||||
TW North America | 20.3 | 0.1 | b | 20.4 | 17.2 | 0.8 | 0.2 | b | 18.2 | ||||||||||||||||||
Beauty North America | (4.6 | ) | 6.1 | a,h | 1.5 | (2.0 | ) | 0.1 | 1.3 | a | (0.6 | ) | |||||||||||||||
South America | 23.6 | 2.6 | a,c | 26.2 | 23.9 | — | 0.4 | a,c | 24.3 | ||||||||||||||||||
86.4 | 9.4 | 95.8 | 84.1 | 0.8 | 2.6 | 87.5 | |||||||||||||||||||||
Unallocated expenses | (14.4 | ) | — | (14.4 | ) | (14.6 | ) | (0.1 | ) | (0.4 | ) | b | (15.1 | ) | |||||||||||||
Gains on disposal of assets | 4.1 | (4.1 | ) | d | — | 24.2 | — | (24.2 | ) | d | — | ||||||||||||||||
Re-engineering and impairment charges | (9.0 | ) | 9.0 | e | — | (2.4 | ) | — | 2.4 | e | — | ||||||||||||||||
Interest expense, net | (10.7 | ) | — | (10.7 | ) | (12.0 | ) | — | — | (12.0 | ) | ||||||||||||||||
Income before taxes | 56.4 | 14.3 | 70.7 | 79.3 | 0.7 | (19.6 | ) | 60.4 | |||||||||||||||||||
Provision for income taxes | 25.0 | (7.0 | ) | j | 18.0 | 30.5 | 0.2 | (15.0 | ) | j | 15.7 | ||||||||||||||||
Net income | $ | 31.4 | $ | 21.3 | $ | 52.7 | $ | 48.8 | $ | 0.5 | $ | (4.6 | ) | $ | 44.7 | ||||||||||||
Net income per common share (diluted) | $ | 0.61 | $ | 0.42 | $ | 1.03 | $ | 0.96 | $ | 0.01 | $ | (0.09 | ) | $ | 0.88 | ||||||||||||
39 Weeks Ended Sep 30, 2017 | 39 Weeks Ended Sep 24, 2016 | ||||||||||||||||||||||||||
Reported | Adj's | Excl Adj's | Reported | Foreign Exchange Impact | Adj's | Restated* Excl Adj's | |||||||||||||||||||||
Segment profit (loss): | |||||||||||||||||||||||||||
Europe | $ | 29.4 | $ | 1.2 | b,f | $ | 30.6 | $ | 38.0 | $ | 1.6 | $ | 0.3 | a,b | $ | 39.9 | |||||||||||
Asia Pacific | 135.7 | 1.4 | a,f | 137.1 | 130.4 | (1.6 | ) | 1.3 | a | 130.1 | |||||||||||||||||
TW North America | 57.8 | 0.2 | b | 58.0 | 51.2 | (0.6 | ) | 0.8 | b | 51.4 | |||||||||||||||||
Beauty North America | (5.6 | ) | 8.8 | a,h | 3.2 | (2.3 | ) | (0.2 | ) | 4.2 | a | 1.7 | |||||||||||||||
South America | 69.7 | 4.7 | a,c | 74.4 | 52.5 | 2.5 | 4.4 | a,c | 59.4 | ||||||||||||||||||
287.0 | 16.3 | 303.3 | 269.8 | 1.7 | 11.0 | 282.5 | |||||||||||||||||||||
Unallocated expenses | (46.9 | ) | — | (46.9 | ) | (48.0 | ) | (0.1 | ) | (0.2 | ) | b,i | (48.3 | ) | |||||||||||||
Gains on disposal of assets | 7.3 | (7.3 | ) | d | — | 25.1 | — | (25.1 | ) | d | — | ||||||||||||||||
Re-engineering and impairment charges | (43.9 | ) | 43.9 | e | — | (5.4 | ) | — | 5.4 | e | — | ||||||||||||||||
Impairment of goodwill | (62.9 | ) | 62.9 | g | — | — | — | — | — | ||||||||||||||||||
Interest expense, net | (32.7 | ) | — | (32.7 | ) | (33.8 | ) | — | — | (33.8 | ) | ||||||||||||||||
Income before taxes | 107.9 | 115.8 | 223.7 | 207.7 | 1.6 | (8.9 | ) | 200.4 | |||||||||||||||||||
Provision for income taxes | 46.8 | 10.1 | j | 56.9 | 63.1 | 0.4 | (13.1 | ) | j | 50.4 | |||||||||||||||||
Net income | $ | 61.1 | $ | 105.7 | $ | 166.8 | $ | 144.6 | $ | 1.2 | $ | 4.2 | $ | 150.0 | |||||||||||||
Net income per common share (diluted) | $ | 1.21 | $ | 2.09 | $ | 3.30 | $ | 2.85 | $ | 0.03 | $ | 0.09 | $ | 2.97 |
TUPPERWARE BRANDS CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(UNAUDITED) | |||||||
(In millions) | 39 Weeks Ended | 39 Weeks Ended | |||||
September 30, 2017 | September 24, 2016 | ||||||
Operating Activities: | |||||||
Net cash provided by operating activities | $ | 80.8 | $ | 92.3 | |||
Investing Activities: | |||||||
Capital expenditures | (52.6 | ) | (38.2 | ) | |||
Proceeds from disposal of property, plant & equipment | 11.7 | 31.8 | |||||
Net cash used in investing activities | (40.9 | ) | (6.4 | ) | |||
Financing Activities: | |||||||
Dividend payments to shareholders | (103.9 | ) | (104.0 | ) | |||
Repurchase of common stock | (0.6 | ) | (1.1 | ) | |||
Repayment of long-term debt and capital lease obligations | (1.6 | ) | (1.7 | ) | |||
Net change in short-term debt | 76.1 | 33.0 | |||||
Proceeds from exercise of stock options | 9.9 | 0.6 | |||||
Excess tax benefits from share-based payment arrangements | — | 0.3 | |||||
Net cash used in financing activities | (20.1 | ) | (72.9 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 5.9 | 5.7 | |||||
Net change in cash and cash equivalents | 25.7 | 18.7 | |||||
Cash and cash equivalents at beginning of year | 93.2 | 79.8 | |||||
Cash and cash equivalents at end of period | $ | 118.9 | $ | 98.5 |
TUPPERWARE BRANDS CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
(In millions) | Sep 30, 2017 | Dec 31, 2016 | |||||
Assets: | |||||||
Cash and cash equivalents | $ | 118.9 | $ | 93.2 | |||
Other current assets | 504.7 | 452.1 | |||||
Total current assets | 623.6 | 545.3 | |||||
Property, plant and equipment, net | 276.0 | 259.8 | |||||
Other assets | 782.7 | 782.7 | |||||
Total assets | $ | 1,682.3 | $ | 1,587.8 | |||
Liabilities and Shareholders' Equity: | |||||||
Short-term borrowings and current portion of long-term debt | $ | 193.1 | $ | 105.9 | |||
Accounts payable and other current liabilities | 414.9 | 441.7 | |||||
Total current liabilities | 608.0 | 547.6 | |||||
Long-term debt | 605.3 | 606.0 | |||||
Other liabilities | 230.9 | 221.4 | |||||
Total shareholders' equity | 238.1 | 212.8 | |||||
Total liabilities and shareholders' equity | $ | 1,682.3 | $ | 1,587.8 |
TUPPERWARE BRANDS CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE | |||||||||||
October 25, 2017 | |||||||||||
(UNAUDITED) | |||||||||||
Fourth Quarter | Fourth Quarter | ||||||||||
(In millions, except per share data) | 2016 Actual | 2017 Outlook | |||||||||
Range | |||||||||||
Low | High | ||||||||||
Income before income taxes | $ | 93.6 | $ | 76.4 | $ | 79.9 | |||||
Income tax | $ | 14.6 | $ | 27.2 | $ | 28.2 | |||||
Effective Rate | 16 | % | 36 | % | 35 | % | |||||
Net Income (GAAP) | $ | 79.0 | $ | 49.2 | $ | 51.7 | |||||
% change from prior year | (38 | )% | (35 | )% | |||||||
Adjustments(1): | |||||||||||
Gains on disposal of assets | (2.2 | ) | — | — | |||||||
Re-engineering and pension settlements | 4.8 | 23.4 | 23.4 | ||||||||
Net impact of Venezuelan bolivar devaluations | 0.1 | — | — | ||||||||
Acquired intangible asset amortization | 1.8 | 2.0 | 2.0 | ||||||||
Income tax(2) | (9.8 | ) | 1.3 | 1.3 | |||||||
Net Income (adjusted) | $ | 73.7 | $ | 75.9 | $ | 78.4 | |||||
Exchange rate impact(3) | 2.8 | — | — | ||||||||
Net Income (adjusted and 2016 restated for currency changes) | $ | 76.5 | $ | 75.9 | $ | 78.4 | |||||
% change from prior year | (1 | )% | 2 | % | |||||||
Net income (GAAP) per common share (diluted) | $ | 1.55 | $ | 0.96 | $ | 1.01 | |||||
% change from prior year | (38 | )% | (35 | )% | |||||||
Net Income (adjusted) per common share (diluted) | $ | 1.45 | $ | 1.48 | $ | 1.53 | |||||
Net Income (adjusted & restated) per common share (diluted) | $ | 1.51 | $ | 1.48 | $ | 1.53 | |||||
% change from prior year | (2 | )% | 1 | % | |||||||
Average number of diluted shares (millions) | 50.8 | 51.2 | 51.2 |
TUPPERWARE BRANDS CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE | |||||||||||
October 25, 2017 | |||||||||||
(UNAUDITED) | |||||||||||
Full Year | Full Year | ||||||||||
(In millions, except per share data) | 2016 Actual | 2017 Outlook | |||||||||
Range | |||||||||||
Low | High | ||||||||||
Income before income taxes | $ | 301.3 | $ | 184.4 | $ | 187.8 | |||||
Income tax | $ | 77.7 | $ | 74.1 | $ | 74.9 | |||||
Effective Rate | 26 | % | 40 | % | 40 | % | |||||
Net Income (GAAP) | $ | 223.6 | $ | 110.3 | $ | 112.9 | |||||
% change from prior year | (51 | )% | (50 | )% | |||||||
Adjustments(1): | |||||||||||
Gains on disposal of assets | $ | (27.3 | ) | $ | (7.3 | ) | $ | (7.3 | ) | ||
Purchase accounting intangibles impairment | — | 62.9 | 62.9 | ||||||||
Re-engineering and pension settlements | 11.0 | 73.6 | 73.6 | ||||||||
Net impact of Venezuelan bolivar devaluations | 4.3 | 4.0 | 4.0 | ||||||||
Acquired intangible asset amortization | 7.6 | 7.9 | 7.9 | ||||||||
Income tax(2) | 3.3 | (8.7 | ) | (8.8 | ) | ||||||
Net Income (adjusted) | $ | 222.5 | $ | 242.7 | $ | 245.2 | |||||
Exchange rate impact(3) | 3.9 | — | — | ||||||||
Net Income (adjusted and 2016 restated for currency changes) | $ | 226.4 | $ | 242.7 | $ | 245.2 | |||||
% change from prior year | 7 | % | 8 | % | |||||||
Net income (GAAP) per common share (diluted) | $ | 4.41 | $ | 2.15 | $ | 2.20 | |||||
% change from prior year | (51 | )% | (50 | )% | |||||||
Net Income (adjusted) per common share (diluted) | $ | 4.39 | $ | 4.74 | $ | 4.79 | |||||
Net Income (adjusted & restated) per common share (diluted) | $ | 4.47 | $ | 4.74 | $ | 4.79 | |||||
% change from prior year | 6 | % | 7 | % | |||||||
Average number of diluted shares (millions) | 50.7 | 51.2 | 51.2 |
TUPPERWARE BRANDS CORPORATION | |||
ADJUSTED EBITDA AND DEBT/ADJUSTED EBITDA* | |||
(UNAUDITED) | |||
As of and for the four quarters ended | |||
September 30, 2017 | |||
Adjusted EBITDA: | |||
Net income | $ | 140.1 | |
Add: | |||
Depreciation and amortization | 59.0 | ||
Gross interest expense | 47.4 | ||
Provision for income taxes | 61.4 | ||
Equity compensation | 21.1 | ||
Pre-tax re-engineering and impairment charges | 66.8 | ||
Other non-cash extraordinary, unusual or non-recurring charges | 36.7 | ||
Deduct: | |||
Cash paid for re-engineering | (4.5 | ) | |
Gains on land sales, insurance recoveries, etc. | (9.5 | ) | |
Total Adjusted EBITDA | $ | 418.5 | |
Consolidated total debt | $ | 798.4 | |
Divided by adjusted EBITDA | 418.5 | ||
Debt to Adjusted EBITDA Ratio | 1.91 |
!"M7<&TR4) HUB5@\W&H(E]1M*@2_]M_&],STL,;'*(**XZ9$@[#:"*,QB;
M 6 CP4&RC;=ZG@;.YS
MY.)/IE#^]CK&GJ3:?YS:MQ^[[CJ<9$EF![^& W_A7-KTP$<@:+&%E(N7?J=KP&JBE.5[\#I_0W8^MX#V'/,
ML*3.G4?IOBNP 1G7NX;!Z^EWUZMQ/?IAZGW=\0GC_!1A/ 9W<(!!(
M;B$0"/2^%C]*J L(!,)F@9R8BLN)*8E9;!C) 3> *I8F *!;)Q\ #/-<>8'/ (2AX+M<#\Q@B[E6TY'"^F!>1((!.5B]R
M3$CJ-BBIMX D32L[KH?GVGL@[%^U,C8GO-EAU6A+PH-S$VPB=$P_'HZ89G&B<=8?@Z3
M1R> 3N-++$A7:W4=0*U)^1[!N8!@TO#)B:D&41WL6BBK^[O_WI1C:<=N['WB
M1ZF)MFS%WI./X,PG/Y6<%'BX_NS]V-UQ%U[Z\!TIUXSILH&N9@#HT5]X[L7N
M;FQJ 0 /-QGTB/K>F-C:RL)'XQK=45575V6-?4T_NO4X]>_>75555U84G?ZG.
M_<=/U!=ON4V=>SBL7?N[_T]]_OT?5%_\X$?4YW^O255553W[A55AY>7^SZLO
MWG*;^OQ[6]3G/_1':N(;WU)/O?&=*6E455479YY:=\(&@4 H8I"P0[)?5E$%(B*%4.1FGX/M+9G0P$5NF08P
M:>6\5%9&.Q6YN4.1FX.\TU ';9^!YI]C*&=BHP9]M0+%W.W0&D"$>AMEA)AR
M[3,A1^RTP GUC9&RF3J@UPGD@83T@8&
H* F'=H1M 7@1X554I
M(M;&0J
-C(X'&
MII9N;OW.FM1H;&JQ(C0;QL=&)@WI59-R5$,;)5$=5KXW^#)$Z;CK/= L*F)F
M=;+T$X;K[3GTDY7L8>:(U=W8U!)[_*98M6%],99MM99XQL=&BF;/>HJ?"NUC
M4X3UC>BCA@] -UJ[ * 3P[T#-LKLP7!OP%$[[/AR2*TC/8_(/T1KEU?PW*6L
MVF%,IRGG(AU"[R\ :,!P[R2GS,C/OPQ
M>_
F(_EHC1L[&,-M_#%O>
M^CM8.?,"EO_[#$KV7*:EO?QU4.
659F>\V:&TP!+"JD<@.?N+LFN'2 1"Y(JAL@RFW<75*)HX
M"XQU9B3P6F'R;*X%3*;B9=AH$'Z26U<48JBJANGF76L^,U1H#R]S;O>=:?]7
M'M@F#]K< @ $E$050/[N3#VDY.)@&CX,5C[G__7RS\>!K-AF?U,V#Q,*%&*3P,:\F:AZ*PG#I[0)
M50BZF.>%-C6/(UG0M>G7C/Y(&+X LK\%:PW#YU'QKG%49WUY%
*3@Y+\A"!XV6AEH@4Y3K#[;V&>,%H@B!NF)6F(P@VKAGR(0H:8C#@A
MFSMH"_(( :-0OUX(7D8LHC<,">(DYI#&Y YEG*?EGD3!"T%LC3YSY&]09MV#
M^>!WA) FC.679F#^L O<\'%L_Y
(80^26'NJW\/5"9PX]#_7)/N
MTA._A*EZ#[9Y[EOY+'GA"LKNN!U&2QV03""UL @L&F"LOP')V5>Q].R+2"VE
MD'CY(JY]+X2K__*/:6E>'?D^4I