Date of Report (Date of earliest event reported) July 25, 2018 | |||
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 | |||
Exhibit Number | Description |
Exhibit 99.1 |
TUPPERWARE BRANDS CORPORATION | ||
(Registrant) | ||
Date: July 25, 2018 | By: | /s/ Karen M. Sheehan |
Karen M. Sheehan | ||
Executive Vice President, Chief Legal Officer & Secretary |
![]() | |
News Release | |
Tupperware Brands Corp. | |
14901 S. Orange Blossom Trail | |
Orlando, FL 32837 | |
Investor Contact: James Hunt (407) 826-4475 |
• | Second quarter sales down 7% versus last year and 4% in local currency+. Includes 2-point negative impact from 2017 closure of Beauticontrol and combination of Japanese businesses. |
• | GAAP diluted E.P.S. $1.26 versus $0.35 prior year loss. 2017 result included $1.24 impairment charge for purchase accounting goodwill and $0.46 for restructuring actions. |
• | Adjusted*, diluted E.P.S. $1.17 versus $1.21 in prior year, up 2% in local currency, within the April guidance range, notwithstanding 6-cent hit from changes in foreign currency exchange rates. Result includes a 10-cent benefit from lower than forecast tax rate. |
• | The Company has appointed a new Chief Marketing & Strategy Officer, Group Presidents in Asia Pacific and in Europe, Africa & Middle East, as well as a new President in the United States & Canada. |
• | Net sales were $535.4 million, down 7% (4% local currency), including a 2-point impact from the 2017 closure of Beauticontrol and the combination of the NaturCare and Tupperware businesses in Japan. Emerging markets**, accounting for 71% of sales, were down 5% (even in local currency). The operating units with the most significant local currency sales growth in the second quarter were China, Fuller Mexico, Tupperware Mexico and Tupperware South Africa. The significant decreases were in Brazil, India and Indonesia. Established market sales decreased 10% (13% local currency), including a 6-point negative impact from the Beauticontrol closure and combination of units in Japan. The local currency sales decreases were most significant in France and Tupperware Australia and New Zealand. |
• | GAAP net income and diluted earnings per share were $63.8 million and $1.26, versus net loss and diluted loss per share of $17.7 million and $0.35 in 2017. The 2017 result included a $62.9 million pre-tax, non-cash purchase accounting goodwill impairment charge in Fuller Mexico and $32.6 million in pretax charges for the Company's Revitalization Program, while gains on the sale of assets in 2018 were $9.3 million higher than the second quarter of 2017. Adjusted, diluted earnings per share were $1.17 compared with $1.21 in the prior year. This was within the April guidance range, due to a 10-cent benefit from a lower income tax rate, and included a negative 6-cent impact versus guidance from weaker foreign currency exchange rates. |
• | Total sales force of 3.0 million was slightly up compared with the prior year, adjusting for a 2-point negative impact from the wind-down of Beauticontrol and combination of businesses in Japan, as well as negative impact from higher standards being applied in calculating the sizes of the sales forces in the two South African businesses. Average active sellers in the second quarter were down 7%, including a negative 3-point impact related to Beauticontrol and NaturCare, and fewer active sellers in Indonesia. |
• | Emerging markets in Europe increased 8% (10% local currency), mainly in Tupperware South Africa, up 27% (26% local currency) and CIS, up 13% (22% local currency). |
• | Established markets were down 9% (14% local currency), in part, due to the smaller, less active sales forces in continental Europe following the closure of the French manufacturing facility in the first quarter of 2018, most significantly in Germany, up 2% ( down 4% local currency), including the benefit of a meaningful business-to-business sale, and France, down 29% (32% local currency). Sequentially, the sales force deficits in France and Germany were reduced in the second quarter. |
• | Emerging markets in Asia Pacific were even with prior year (down 2% local currency), primarily in Indonesia, down 23% (19% local currency) from fewer active sellers in response to product programs. In addition, India was down 29% (26% local currency), reflecting challenges with adding sales force members and sales force manager activity, as well as a negative 6% impact from the goods and services tax effective in July 2017. These decreases were partially offset by increased sales in China, up 20% (13% local currency), reflecting expansion in the number of studios to 6,600 studios (14% advantage over 2017). |
• | Tupperware United States and Canada sales were up 2% (1% local currency). |
• | Tupperware Mexico sales were up 6% (12% local currency) and Fuller Mexico sales were up 1% (6% local currency). |
• | Brazil was down 21% (11% local currency), reflecting political and macro-economic instability that included a 10-day road blockade by truck drivers that shut down the business and the local economy, incremental to the already tough consumer spending and credit environment. These factors negatively impacted the number of sales force additions, new sales force leaders promoted and the rhythm of sales force activity. |
13 Weeks Ended | 13 Weeks | 52 Weeks Ended | 52 Weeks | |||||||||||||||||
Sep. 29, 2018 | Ended | Dec. 29, 2018 | Ended | |||||||||||||||||
Low | High | Sep. 30, 2017 | Low | High | Dec 30, 2017 | |||||||||||||||
USD Sales Growth vs Prior Year | (12 | )% | (10 | )% | 3 | % | (7 | )% | (6 | )% | 2 | % | ||||||||
GAAP EPS | $0.74 | $0.79 | $0.61 | $4.01 | $4.11 | ($5.22 | ) | |||||||||||||
GAAP Pre-Tax ROS | 11.2 | % | 11.7 | % | 14.1 | % | 14.3 | % | 8.2 | % | ||||||||||
Local Currency+ Sales Growth vs Prior Year | (5 | )% | (3 | )% | 2 | % | (4 | )% | (3 | )% | 1 | % | ||||||||
EPS Excluding Items* | $0.80 | $0.85 | $1.03 | $4.25 | $4.35 | $4.84 | ||||||||||||||
Pre-Tax ROS Excluding Items* | 12.2 | % | 12.7 | % | 13.1 | % | 14.6 | % | 14.8 | % | 14.6 | % | ||||||||
FX Impact on EPS Comparison (a) | ($0.12) | ($0.12) | ($0.25) | ($0.25 | ) |
• | There is a negative 3-point and 2-point impact in the 2018 third quarter and full year sales comparisons, respectively, from the closure of Beauticontrol in 2017 and the combination of NaturCare and Tupperware in Japan, effective at the beginning of 2018. |
• | Tax rates estimated at 31.6% on a U.S. GAAP basis and 29.9% excluding items. |
• | Excludes Orlando, Florida land sales and additional re-engineering program related asset sales that may occur. |
• | Excludes the impact on earnings per share of future share repurchases. |
• | For the full year, sales are expected to be down about 4% in dollars (6 to 7% local currency) in Europe; down 4 to 5% in Asia Pacific; down 2 to 3% in dollars (1 to 2% local currency) in North America, including a 6 pp negative impact from the wind-down of Beauticontrol; and down by a mid-teen percentage in dollars (up low-single digit local currency) in South America. |
• | Segment profit return on sales, excluding items, is expected to be about even with prior year in Europe and Asia Pacific, to increase almost 2-points in North America and to be down about 2-points in South America. |
TUPPERWARE BRANDS CORPORATION | |||||||||||||
SECOND QUARTER 2018 SALES FORCE STATISTICS* | |||||||||||||
(UNAUDITED) | |||||||||||||
Sales | |||||||||||||
All Units | Reported Inc/(Dec) vs. Q2 '17 % | Restated+ Inc/(Dec) vs. Q2 '17 % | f | Active Sales Force | Inc/(Dec) vs. Q2 '17 % | f | Total Sales Force | Inc/(Dec) vs. Q2 '17 % | f | ||||
Europe | (2) | (4) | a | 101,782 | 5 | d | 747,461 | (9) | |||||
Asia Pacific | (2) | (4) | b | 172,595 | (12) | 981,912 | (8) | ||||||
North America | (4) | (1) | 6 | c | 217,178 | (7) | (1) | 776,219 | (5) | 2 | |||
South America | (23) | (7) | 131,493 | (5) | 528,092 | — | |||||||
Total All Units | (7) | (4) | (2) | 623,048 | (7) | (4) | 3,033,684 | (6) | (4) | ||||
Emerging Market Units | |||||||||||||
Europe | 8 | 10 | 78,273 | 12 | d | 570,394 | (9) | ||||||
Asia Pacific | — | (2) | b | 149,572 | (12) | e | 896,549 | (6) | |||||
North America | 4 | 9 | c | 202,439 | (1) | 663,958 | 1 | ||||||
South America | (23) | (7) | 131,493 | (5) | 528,092 | — | |||||||
Total Emerging Market Units | (5) | — | 561,777 | (4) | 2,658,993 | (4) | |||||||
Estab. Market Units | |||||||||||||
Europe | (9) | (14) | 23,509 | (14) | d | 177,067 | (6) | ||||||
Asia Pacific | (11) | (11) | 23,023 | (15) | 85,363 | (20) | |||||||
North America | (12) | (13) | 1 | 14,739 | (51) | 6 | 112,261 | (29) | 3 | ||||
South America | — | — | — | — | — | — | |||||||
Total Established Market Units | (10) | (13) | (8) | 61,271 | (27) | (10) | 374,691 | (18) | (8) |
TUPPERWARE BRANDS CORPORATION | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(In millions, except per share data) | 13 Weeks Ended | 13 Weeks Ended | 26 Weeks Ended | 26 Weeks Ended | |||||||||||
Jun 30, 2018 | Jul 1, 2017 | Jun 30, 2018 | Jul 1, 2017 | ||||||||||||
Net sales | $ | 535.4 | $ | 572.9 | $ | 1,078.0 | $ | 1,127.7 | |||||||
Cost of products sold | 173.5 | 182.6 | 352.5 | 360.3 | |||||||||||
Gross margin | 361.9 | 390.3 | 725.5 | 767.4 | |||||||||||
Delivery, sales and administrative expense | 272.8 | 299.0 | 562.0 | 596.9 | |||||||||||
Re-engineering and impairment charges | 2.1 | 32.6 | 9.7 | 34.9 | |||||||||||
Impairment of goodwill | — | 62.9 | — | 62.9 | |||||||||||
Gains on disposal of assets | 12.4 | 3.1 | 14.6 | 3.2 | |||||||||||
Operating income (loss) | 99.4 | (1.1 | ) | 168.4 | 75.9 | ||||||||||
Interest income | 0.7 | 0.7 | 1.4 | 1.2 | |||||||||||
Interest expense | 11.9 | 11.6 | 23.0 | 23.2 | |||||||||||
Other (income) expense, net | (0.4 | ) | 0.7 | (0.2 | ) | 2.4 | |||||||||
Income before income taxes | 88.6 | (12.7 | ) | 147.0 | 51.5 | ||||||||||
Provision for income taxes | 24.8 | 5.0 | 47.5 | 21.8 | |||||||||||
Net income (loss) | $ | 63.8 | $ | (17.7 | ) | $ | 99.5 | $ | 29.7 | ||||||
Net income (loss) per common share: | |||||||||||||||
Basic income (loss) per share | $ | 1.26 | $ | (0.35 | ) | $ | 1.96 | $ | 0.59 | ||||||
Diluted income (loss) per share | $ | 1.26 | $ | (0.35 | ) | $ | 1.95 | $ | 0.58 |
TUPPERWARE BRANDS CORPORATION | |||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||
(In millions, except per share data) | 13 Weeks Ended | 13 Weeks Ended | Reported | Restated* | Foreign | 26 Weeks Ended | 26 Weeks Ended | Reported | Restated* | Foreign | |||||||||||||||||||||||||
Jun 30, 2018 | Jul 1, 2017 | % | % | Exchange | Jun 30, 2018 | Jul 1, 2017 | % | % | Exchange | ||||||||||||||||||||||||||
Inc (Dec) | Inc (Dec) | Impact* | Inc (Dec) | Inc (Dec) | Impact* | ||||||||||||||||||||||||||||||
Net Sales: | |||||||||||||||||||||||||||||||||||
Europe | $ | 132.7 | $ | 135.4 | (2 | ) | (4 | ) | $ | 3.5 | $ | 276.6 | $ | 284.9 | (3 | ) | (10 | ) | $ | 22.1 | |||||||||||||||
Asia Pacific | 180.0 | 183.5 | (2 | ) | (4 | ) | 3.2 | 352.2 | 360.8 | (2 | ) | (5 | ) | 10.8 | |||||||||||||||||||||
North America | 136.8 | 141.8 | (4 | ) | (1 | ) | (3.2 | ) | 271.8 | 273.1 | — | (1 | ) | 1.8 | |||||||||||||||||||||
South America | 85.9 | 112.2 | (23 | ) | (7 | ) | (19.5 | ) | 177.4 | 208.9 | (15 | ) | (2 | ) | (28.7 | ) | |||||||||||||||||||
$ | 535.4 | $ | 572.9 | (7 | ) | (4 | ) | $ | (16.0 | ) | $ | 1,078.0 | $ | 1,127.7 | (4 | ) | (5 | ) | $ | 6.0 | |||||||||||||||
Segment profit: | |||||||||||||||||||||||||||||||||||
Europe | $ | 15.1 | $ | 11.9 | 28 | 25 | $ | 0.2 | $ | 27.5 | $ | 31.8 | (13 | ) | (21 | ) | $ | 3.0 | |||||||||||||||||
Asia Pacific | 45.4 | 46.2 | (2 | ) | (5 | ) | 1.8 | 83.3 | 86.2 | (3 | ) | (7 | ) | 3.9 | |||||||||||||||||||||
North America | 22.7 | 20.7 | 9 | 13 | (0.7 | ) | 41.7 | 36.5 | 14 | 14 | 0.1 | ||||||||||||||||||||||||
South America | 17.8 | 27.9 | (36 | ) | (23 | ) | (4.9 | ) | 35.1 | 46.1 | (24 | ) | (12 | ) | (6.2 | ) | |||||||||||||||||||
101.0 | 106.7 | (5 | ) | (2 | ) | (3.6 | ) | 187.6 | 200.6 | (6 | ) | (7 | ) | 0.8 | |||||||||||||||||||||
Unallocated expenses | (11.5 | ) | (16.1 | ) | (29 | ) | (30 | ) | (0.3 | ) | (23.9 | ) | (32.5 | ) | (27 | ) | (26 | ) | 0.2 | ||||||||||||||||
Gains on disposal of assets | 12.4 | 3.1 | + | + | — | 14.6 | 3.2 | + | + | — | |||||||||||||||||||||||||
Re-engineering and impairment charges | (2.1 | ) | (32.6 | ) | (94 | ) | (94 | ) | — | (9.7 | ) | (34.9 | ) | (72 | ) | (72 | ) | — | |||||||||||||||||
Impairment of goodwill | — | (62.9 | ) | — | — | — | — | (62.9 | ) | + | + | — | |||||||||||||||||||||||
Interest expense, net | (11.2 | ) | (10.9 | ) | 3 | 3 | — | (21.6 | ) | (22.0 | ) | (2 | ) | (2 | ) | — | |||||||||||||||||||
Income (loss) before taxes | 88.6 | (12.7 | ) | — | — | (3.9 | ) | 147.0 | 51.5 | + | + | 1.0 | |||||||||||||||||||||||
Provision for income taxes | 24.8 | 5.0 | + | + | (0.9 | ) | 47.5 | 21.8 | + | + | 0.3 | ||||||||||||||||||||||||
Net income (loss) | $ | 63.8 | $ | (17.7 | ) | — | — | $ | (3.0 | ) | $ | 99.5 | $ | 29.7 | + | + | $ | 0.7 | |||||||||||||||||
Net income (loss) per share (diluted) | $ | 1.26 | $ | (0.35 | ) | — | — | $ | (0.06 | ) | $ | 1.95 | $ | 0.58 | + | + | $ | 0.01 | |||||||||||||||||
Weighted average number of diluted shares | 50.7 | 50.8 | 51.0 | 51.2 |
TUPPERWARE BRANDS CORPORATION | |||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||
(In millions, except per share data) | 13 Weeks Ended Jun 30, 2018 | 13 Weeks Ended Jul 1, 2017 | |||||||||||||||||||||||||
Reported | Adj's | Excl Adj's | Reported | Foreign Exchange Impact | Adj's | Restated* Excl Adj's | |||||||||||||||||||||
Segment profit: | |||||||||||||||||||||||||||
Europe | $ | 15.1 | $ | — | $ | 15.1 | $ | 11.9 | $ | 0.2 | $ | 0.5 | f | $ | 12.6 | ||||||||||||
Asia Pacific | 45.4 | 0.4 | a,f | 45.8 | 46.2 | 1.8 | 0.4 | a | 48.4 | ||||||||||||||||||
North America | 22.7 | 1.6 | a,b | 24.3 | 20.7 | (0.7 | ) | 1.4 | a | 21.4 | |||||||||||||||||
South America | 17.8 | 0.2 | a,c | 18.0 | 27.9 | (4.9 | ) | 1.6 | a,c | 24.6 | |||||||||||||||||
101.0 | 2.2 | 103.2 | 106.7 | (3.6 | ) | 3.9 | 107.0 | ||||||||||||||||||||
Unallocated expenses | (11.5 | ) | — | (11.5 | ) | (16.1 | ) | (0.3 | ) | — | (16.4 | ) | |||||||||||||||
Gains on disposal of assets | 12.4 | (12.4 | ) | d | — | 3.1 | — | (3.1 | ) | d | — | ||||||||||||||||
Re-engineering and impairment charges | (2.1 | ) | 2.1 | e | — | (32.6 | ) | — | 32.6 | e | — | ||||||||||||||||
Impairment of goodwill | — | — | — | (62.9 | ) | — | 62.9 | h | — | ||||||||||||||||||
Interest expense, net | (11.2 | ) | — | (11.2 | ) | (10.9 | ) | — | — | (10.9 | ) | ||||||||||||||||
Income (loss) before taxes | 88.6 | (8.1 | ) | 80.5 | (12.7 | ) | (3.9 | ) | 96.3 | 79.7 | |||||||||||||||||
Provision for income taxes | 24.8 | (3.8 | ) | j | 21.0 | 5.0 | (0.9 | ) | 16.1 | j | 20.2 | ||||||||||||||||
Net income (loss) | $ | 63.8 | $ | (4.3 | ) | $ | 59.5 | $ | (17.7 | ) | $ | (3.0 | ) | $ | 80.2 | $ | 59.5 | ||||||||||
Net income (loss) per share (diluted) | $ | 1.26 | $ | (0.09 | ) | $ | 1.17 | $ | (0.35 | ) | $ | (0.06 | ) | $ | 1.56 | $ | 1.15 | ||||||||||
26 Weeks Ended June 30, 2018 | 26 Weeks Ended July 1, 2017 | ||||||||||||||||||||||||||
Reported | Adj's | Excl Adj's | Reported | Foreign Exchange Impact | Adj's | Restated* Excl Adj's | |||||||||||||||||||||
Segment profit: | |||||||||||||||||||||||||||
Europe | $ | 27.5 | $ | 0.4 | f | $ | 27.9 | $ | 31.8 | $ | 3.0 | $ | 1.2 | b,f | $ | 36.0 | |||||||||||
Asia Pacific | 83.3 | 1.0 | a,b,f | 84.3 | 86.2 | 3.9 | 0.8 | a | 90.9 | ||||||||||||||||||
North America | 41.7 | 4.4 | a,b,g | 46.1 | 36.5 | 0.1 | 2.8 | a,b | 39.4 | ||||||||||||||||||
South America | 35.1 | 0.6 | a,c | 35.7 | 46.1 | (6.2 | ) | 2.1 | a,c | 42.0 | |||||||||||||||||
187.6 | 6.4 | 194.0 | 200.6 | 0.8 | 6.9 | 208.3 | |||||||||||||||||||||
Unallocated expenses | (23.9 | ) | (23.9 | ) | (32.5 | ) | 0.2 | — | (32.3 | ) | |||||||||||||||||
Gains on disposal of assets | 14.6 | (14.6 | ) | d | — | 3.2 | — | (3.2 | ) | d | — | ||||||||||||||||
Re-engineering and impairment charges | (9.7 | ) | 9.7 | e | — | (34.9 | ) | — | 34.9 | e | — | ||||||||||||||||
Impairment of goodwill | — | — | — | (62.9 | ) | — | 62.9 | h | — | ||||||||||||||||||
Interest expense, net | (21.6 | ) | — | (21.6 | ) | (22.0 | ) | — | — | (22.0 | ) | ||||||||||||||||
Income before taxes | 147.0 | 1.5 | 148.5 | 51.5 | 1.0 | 101.5 | 154.0 | ||||||||||||||||||||
Provision for income taxes | 47.5 | (5.1 | ) | j | 42.4 | 21.8 | 0.3 | 17.1 | j | 39.2 | |||||||||||||||||
Net income | $ | 99.5 | $ | 6.6 | $ | 106.1 | $ | 29.7 | $ | 0.7 | $ | 84.4 | $ | 114.8 | |||||||||||||
Net income per share (diluted) | $ | 1.95 | $ | 0.13 | $ | 2.08 | $ | 0.58 | $ | 0.01 | $ | 1.65 | $ | 2.24 |
TUPPERWARE BRANDS CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(UNAUDITED) | |||||||
(In millions) | 26 Weeks Ended | 26 Weeks Ended | |||||
June 30, 2018 | July 1, 2017 | ||||||
Operating Activities: | |||||||
Net cash (used in) provided by operating activities | $ | (38.8 | ) | $ | 14.2 | ||
Investing Activities: | |||||||
Capital expenditures | (37.6 | ) | (32.0 | ) | |||
Proceeds from disposal of property, plant & equipment | 33.1 | 5.3 | |||||
Net cash used in investing activities | (4.5 | ) | (26.7 | ) | |||
Financing Activities: | |||||||
Dividend payments to shareholders | (70.2 | ) | (69.3 | ) | |||
Repurchase of common stock | (51.1 | ) | (0.6 | ) | |||
Repayment of long-term debt and capital lease obligations | (1.3 | ) | (1.2 | ) | |||
Net change in short-term debt | 127.6 | 60.1 | |||||
Proceeds from exercise of stock options | 0.3 | 9.9 | |||||
Net cash provided by (used in) financing activities | 5.3 | (1.1 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7.1 | ) | 5.5 | ||||
Net change in cash, cash equivalents and restricted cash | (45.1 | ) | (8.1 | ) | |||
Cash, cash equivalents and restricted cash at beginning of year | 147.2 | 96.0 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 102.1 | $ | 87.9 |
TUPPERWARE BRANDS CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
(In millions) | Jun 30, 2018 | Dec 30, 2017 | |||||
Assets: | |||||||
Cash and cash equivalents | $ | 98.0 | $ | 144.1 | |||
Other current assets | 533.1 | 486.4 | |||||
Total current assets | 631.1 | 630.5 | |||||
Property, plant and equipment, net | 271.5 | 278.2 | |||||
Other assets | 435.5 | 479.3 | |||||
Total assets | $ | 1,338.1 | $ | 1,388.0 | |||
Liabilities and Shareholders' Equity: | |||||||
Short-term borrowings and current portion of long-term debt | $ | 257.8 | $ | 133.0 | |||
Accounts payable and other current liabilities | 437.5 | 525.8 | |||||
Total current liabilities | 695.3 | 658.8 | |||||
Long-term debt | 604.0 | 605.1 | |||||
Other liabilities | 214.3 | 243.5 | |||||
Total shareholders' equity | (175.5 | ) | (119.4 | ) | |||
Total liabilities and shareholders' equity | $ | 1,338.1 | $ | 1,388.0 |
TUPPERWARE BRANDS CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE | |||||||||||
July 25, 2018 | |||||||||||
(UNAUDITED) | |||||||||||
Third Quarter | Third Quarter | ||||||||||
(In millions, except per share data) | 2017 Actual | 2018 Outlook(4) | |||||||||
Range | |||||||||||
Low | High | ||||||||||
Income before income taxes | $ | 56.4 | $ | 53.5 | $ | 57.1 | |||||
Income tax | $ | 25.0 | $ | 16.4 | $ | 17.6 | |||||
Effective Rate | 44 | % | 31 | % | 31 | % | |||||
Net Income (GAAP) | $ | 31.4 | $ | 37.1 | $ | 39.5 | |||||
% change from prior year | + | + | |||||||||
Adjustments(1): | |||||||||||
Gains on disposal of assets | 4.1 | — | — | ||||||||
Re-engineering and pension settlements | 13.8 | 3.0 | 3.0 | ||||||||
Net impact of Venezuelan bolivar devaluations | 2.4 | — | — | ||||||||
Acquired intangible asset amortization | 2.0 | 1.8 | 1.8 | ||||||||
Income tax(2) | (1.0 | ) | (1.6 | ) | (1.6 | ) | |||||
Net Income (adjusted) | $ | 52.7 | $ | 40.3 | $ | 42.7 | |||||
Exchange rate impact(3) | (6.4 | ) | — | — | |||||||
Net Income (adjusted and 2017 restated for currency changes) | $ | 46.3 | $ | 40.3 | $ | 42.7 | |||||
% change from prior year | (13 | )% | (8 | )% | |||||||
Net income (GAAP) per common share (diluted) | $ | 0.61 | $ | 0.74 | $ | 0.79 | |||||
% change from prior year | + | + | |||||||||
Net Income (adjusted) per common share (diluted) | $ | 1.03 | $ | 0.80 | $ | 0.85 | |||||
Net Income (adjusted & restated) per common share (diluted) | $ | 0.91 | $ | 0.80 | $ | 0.85 | |||||
% change from prior year | (12 | )% | (7 | )% | |||||||
Average number of diluted shares (millions) | 51.3 | 50.2 | 50.2 |
TUPPERWARE BRANDS CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE | |||||||||||
July 25, 2018 | |||||||||||
(UNAUDITED) | |||||||||||
Full Year | Full Year | ||||||||||
(In millions, except per share data) | 2017 Actual | 2018 Outlook(4) | |||||||||
Range | |||||||||||
Low | High | ||||||||||
Income before income taxes | $ | 185.1 | $ | 296.6 | $ | 304.1 | |||||
Income tax | $ | 450.5 | $ | 93.7 | $ | 96.0 | |||||
Effective Rate | 243 | % | 32 | % | 32 | % | |||||
Net Income (loss) (GAAP) | $ | (265.4 | ) | $ | 202.9 | $ | 208.1 | ||||
% change from prior year | + | + | |||||||||
Adjustments(1): | |||||||||||
Gains on disposal of assets | $ | (9.1 | ) | $ | (14.6 | ) | $ | (14.6 | ) | ||
Purchase accounting intangibles impairment | 62.9 | — | — | ||||||||
Re-engineering and pension settlements | 74.4 | 16.8 | 16.8 | ||||||||
Net impact of Venezuelan bolivar devaluations | 7.4 | 0.3 | 0.3 | ||||||||
Acquired intangible asset amortization | 7.9 | 7.5 | 7.5 | ||||||||
Income tax(2) | 370.2 | 2.1 | 2.1 | ||||||||
Net Income (adjusted) | $ | 248.3 | $ | 215.0 | $ | 220.2 | |||||
Exchange rate impact(3) | (12.7 | ) | — | — | |||||||
Net Income (adjusted and 2017 restated for currency changes) | $ | 235.6 | $ | 215.0 | $ | 220.2 | |||||
% change from prior year | (9 | )% | (7 | )% | |||||||
Net income, (loss) (GAAP) per common share (diluted) | $ | (5.22 | ) | $ | 4.01 | $ | 4.11 | ||||
Net Income (adjusted) per common share (diluted) | $ | 4.84 | $ | 4.25 | $ | 4.35 | |||||
Net Income (adjusted & restated) per common share (diluted) | $ | 4.59 | $ | 4.25 | $ | 4.35 | |||||
% change from prior year | (7 | )% | (5 | )% | |||||||
Average number of diluted shares (millions) | 51.3 | 50.6 | 50.6 |
TUPPERWARE BRANDS CORPORATION | |||
ADJUSTED EBITDA AND DEBT/ADJUSTED EBITDA* | |||
(UNAUDITED) | |||
As of and for the four quarters ended | |||
June 30, 2018 | |||
Adjusted EBITDA: | |||
Net income (loss) | $ | (195.6 | ) |
Add: | |||
Depreciation and amortization | 60.7 | ||
Gross interest expense | 45.9 | ||
Provision for income taxes | 476.2 | ||
Equity compensation | 20.4 | ||
Pre-tax re-engineering and impairment charges | 3.1 | ||
Other non-cash extraordinary, unusual or non-recurring charges | 38.5 | ||
Deduct: | |||
Cash paid for re-engineering | (35.8 | ) | |
Gains on land sales, insurance recoveries, etc. | (20.5 | ) | |
Total Adjusted EBITDA | $ | 392.9 | |
Consolidated total debt | $ | 861.8 | |
Divided by adjusted EBITDA | 392.9 | ||
Debt to Adjusted EBITDA Ratio | 2.19 |
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