Date of Report (Date of earliest event reported) October 24, 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: October 24, 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 |
• | Third quarter sales down 10% versus last year and 2% in local currency+. Includes 3-point negative impact from 2017 closure of Beauticontrol and combination of Japanese businesses. |
• | GAAP diluted E.P.S. $0.79 versus $0.61 in prior year. |
• | Adjusted*, diluted E.P.S. $0.91, up 1% in local currency; 6-cents above high end of guidance range, including 5-cent benefit from lower than forecast tax rate. |
• | The Company repurchased $50 million in shares in the third quarter. |
• | Net sales were $485.8 million, down 10% (2% local currency), including a 3-point impact from the 2017 closure of Beauticontrol and the combination of the NaturCare and Tupperware businesses in Japan. Emerging markets**, accounting for 72% of sales, were down 9% (up 2% local currency). The operating units with the most significant local currency sales growth in the third quarter were China, Tupperware Mexico and Tupperware South Africa, partially offset by a significant decrease in Indonesia. Established market sales decreased 13% (11% local currency), including a 9-point negative impact from the Beauticontrol closure and combination of units in Japan. The local currency sales decreases were most significant in Tupperware Australia and New Zealand, France, and Italy, partially offset by a meaningful business-to-business arrangement in Germany. |
• | GAAP net income and diluted earnings per share were $39.1 million and $0.79, versus $31.4 million and $0.61 in 2017, respectively, primarily reflecting in 2018 the benefit of lower income tax expense, as well as lower re-engineering and corporate costs. There was also a negative comparison impact from foreign currency exchange rates. Adjusted, diluted earnings per share were $0.91 compared with $1.03 in the prior year, up 1% in local currency before a 13-cent, or 13% negative impact from weaker exchange rates. This was above the July guidance range, and included a 2-cent benefit of lower shares, partially offset by a negative 1-cent impact versus guidance from weaker foreign currency exchange rates. |
• | Total sales force of 3.1 million was slightly up compared with the prior year, adjusting for the 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 third quarter were down 10%, including a negative 3-point impact related to Beauticontrol and NaturCare, and fewer active sellers in Fuller Mexico, Indonesia and Venezuela. |
• | Emerging markets in Europe increased 4% (13% local currency), mainly in Tupperware South Africa, up 16% (22% local currency) and CIS, up 10% (20% local currency). |
• | Established markets were down 1% (even in local currency), primarily due to fewer active sellers in continental Europe, offset by significant business-to-business sales in Germany. |
• | Emerging markets in Asia Pacific were down 5% (2% local currency), primarily in Indonesia, down 31% (25% local currency) from trends in additions and removal of sellers that led to fewer active sellers, including in response to product programs. In addition, India was down 27% (21% local currency), reflecting challenges with adding sales force members and less active sales force managers. These decreases were partially offset by increased sales in China, up 9% (12% local currency), primarily reflecting expansion in the number of studios to 6,700 studios (14% advantage over 2017). |
• | Tupperware United States and Canada sales were down 3% (2% local currency). |
• | Tupperware Mexico sales were up 1% (6% local currency) and Fuller Mexico sales were down 6% (1% local currency). |
• | Local currency sales increase was primarily from Argentina due to price increases in connection with high inflation, partially offset by Brazil, down 23% (2% local currency). This reflected the consumer spending environment in connection with political and macro-economic instability, as well as lingering impact early in the quarter from the 10-day road blockade in May 2018. |
13 Weeks Ended | 13 Weeks | 52 Weeks Ended | 52 Weeks | ||||||||||||||||||
Dec. 29, 2018 | Ended | Dec. 29, 2018 | Ended | ||||||||||||||||||
Low | High | Dec. 30, 2017 | Low | High | Dec 30, 2017 | ||||||||||||||||
USD Sales Growth vs Prior Year | (9 | )% | (7 | )% | (2 | )% | (7 | )% | (6 | )% | 2 | % | |||||||||
GAAP EPS | $1.28 | $1.33 | ($6.41 | ) | $4.01 | $4.06 | ($5.22 | ) | |||||||||||||
GAAP Pre-Tax ROS | 15.0 | % | 15.3 | % | 13.1 | % | 13.6 | % | 13.6 | % | 8.2 | % | |||||||||
Local Currency+ Sales Growth vs Prior Year | (2 | )% | — | % | (4 | )% | (b) | (4 | )% | (3 | )% | 1 | % | (b) | |||||||
EPS Excluding Items* | $1.31 | $1.36 | $1.59 | $4.30 | $4.35 | $4.84 | |||||||||||||||
Pre-Tax ROS Excluding Items* | 16.0 | % | 16.3 | % | 17.8 | % | 14.1 | % | 14.2 | % | 14.6 | % | |||||||||
FX Impact on EPS Comparison (a) | ($0.16) | ($0.16) | ($0.29) | ($0.29 | ) |
• | There is a negative 2-point impact in the 2018 full year sales comparisons 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 29.4% on a U.S. GAAP basis and 27.3% excluding items. |
• | Excludes Orlando, Florida land sales and additional re-engineering program related asset sales that may occur. |
• | For the full year, sales are expected to be down by a low single digit percentage in Europe and North America, down mid-single digit in dollars and local currency in Asia Pacific and down about 20% in dollars and slightly in local currency in South America. |
• | Segment profit return on sales, excluding items, in dollars and local currency is expected to be about even with 2017 in Europe, down about 1-point in Asia Pacific, up between 1.0 and 1.5-points in North America and down about 3.5- points in South America. |
TUPPERWARE BRANDS CORPORATION | |||||||||||||
THIRD QUARTER 2018 SALES FORCE STATISTICS* | |||||||||||||
(UNAUDITED) | |||||||||||||
Sales | |||||||||||||
All Units | Reported Inc/(Dec) vs. Q3 '17 % | Restated+ Inc/(Dec) vs. Q3 '17 % | j | Active Sales Force | Inc/(Dec) vs. Q3 '17 % | j | Total Sales Force | Inc/(Dec) vs. Q3 '17 % | j | ||||
Europe | 1 | 6 | 98,682 | 4 | f | 795,889 | (6) | ||||||
Asia Pacific | (8) | (4) | (2) | c | 169,205 | (14) | (12) | g | 981,960 | (7) | (5) | ||
North America | (11) | (9) | 1 | d | 196,611 | (13) | (6) | 754,499 | (2) | (2) | |||
South America | (24) | 1 | e | 129,650 | (7) | h | 555,451 | — | |||||
Total All Units | (10) | (2) | 1 | a | 594,148 | (10) | (7) | 3,087,799 | (4) | (4) | |||
Emerging Market Units | |||||||||||||
Europe | 4 | 13 | 80,430 | 11 | f | 623,772 | (5) | ||||||
Asia Pacific | (5) | (2) | c | 148,499 | (13) | g | 898,466 | (6) | |||||
North America | (3) | 2 | d | 181,402 | (6) | 634,929 | (4) | ||||||
South America | (24) | 1 | e | 129,650 | (7) | h | 555,451 | — | |||||
Total Emerging Market Units | (9) | 2 | 539,981 | (6) | 2,712,618 | (4) | |||||||
Established Market Units | |||||||||||||
Europe | (1) | — | b | 18,252 | (19) | f | 172,117 | (7) | |||||
Asia Pacific | (22) | (17) | (6) | 20,706 | (22) | (6) | 83,494 | (21) | 2 | ||||
North America | (21) | (20) | (2) | 15,209 | (52) | (1) | i | 119,570 | 5 | 5 | |||
South America | — | — | — | — | — | — | |||||||
Total Established Market Units | (13) | (11) | (1) | 54,167 | (33) | (10) | 375,181 | (8) | (2) |
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 29, 2018 | Sep 30, 2017 | Sep 29, 2018 | Sep 30, 2017 | ||||||||||||
Net sales | $ | 485.8 | $ | 539.5 | $ | 1,563.8 | $ | 1,667.2 | |||||||
Cost of products sold | 164.1 | 182.7 | 516.6 | 543.0 | |||||||||||
Gross margin | 321.7 | 356.8 | 1,047.2 | 1,124.2 | |||||||||||
Delivery, sales and administrative expense | 253.0 | 283.5 | 815.0 | 880.4 | |||||||||||
Re-engineering and impairment charges | 3.0 | 9.0 | 12.7 | 43.9 | |||||||||||
Impairment of goodwill | — | — | — | 62.9 | |||||||||||
Gains on disposal of assets | 1.5 | 4.1 | 16.1 | 7.3 | |||||||||||
Operating income | 67.2 | 68.4 | 235.6 | 144.3 | |||||||||||
Interest income | 0.6 | 0.8 | 2.0 | 2.0 | |||||||||||
Interest expense | 11.3 | 11.5 | 34.3 | 34.7 | |||||||||||
Other (income) expense, net | (0.6 | ) | 1.3 | (0.8 | ) | 3.7 | |||||||||
Income before income taxes | 57.1 | 56.4 | 204.1 | 107.9 | |||||||||||
Provision for income taxes | 18.0 | 25.0 | 65.5 | 46.8 | |||||||||||
Net income | $ | 39.1 | $ | 31.4 | $ | 138.6 | $ | 61.1 | |||||||
Net income per common share: | |||||||||||||||
Basic income per share | $ | 0.79 | $ | 0.62 | $ | 2.75 | $ | 1.20 | |||||||
Diluted income per share | $ | 0.79 | $ | 0.61 | $ | 2.74 | $ | 1.19 |
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 29, 2018 | Sep 30, 2017 | % | % | Exchange | Sep 29, 2018 | Sep 30, 2017 | % | % | Exchange | ||||||||||||||||||||||||||
Inc (Dec) | Inc (Dec) | Impact* | Inc (Dec) | Inc (Dec) | Impact* | ||||||||||||||||||||||||||||||
Net Sales: | |||||||||||||||||||||||||||||||||||
Europe | $ | 112.3 | $ | 110.8 | 1 | 6 | $ | (4.5 | ) | $ | 388.9 | $ | 395.7 | (2 | ) | (6 | ) | $ | 17.6 | ||||||||||||||||
Asia Pacific | 170.0 | 184.4 | (8 | ) | (4 | ) | (7.2 | ) | 522.2 | 545.2 | (4 | ) | (5 | ) | 3.6 | ||||||||||||||||||||
North America | 123.3 | 139.1 | (11 | ) | (9 | ) | (4.1 | ) | 395.1 | 412.2 | (4 | ) | (4 | ) | (2.3 | ) | |||||||||||||||||||
South America | 80.2 | 105.2 | (24 | ) | 1 | (25.8 | ) | 257.6 | 314.1 | (18 | ) | (1 | ) | (54.5 | ) | ||||||||||||||||||||
$ | 485.8 | $ | 539.5 | (10 | ) | (2 | ) | $ | (41.6 | ) | $ | 1,563.8 | $ | 1,667.2 | (6 | ) | (4 | ) | $ | (35.6 | ) | ||||||||||||||
Segment profit (loss): | |||||||||||||||||||||||||||||||||||
Europe | $ | 1.0 | $ | (2.4 | ) | + | + | $ | 0.4 | $ | 28.5 | $ | 29.4 | (3 | ) | (13 | ) | $ | 3.4 | ||||||||||||||||
Asia Pacific | 43.7 | 49.5 | (12 | ) | (9 | ) | (1.8 | ) | 127.0 | 135.7 | (6 | ) | (8 | ) | 2.1 | ||||||||||||||||||||
North America | 17.6 | 15.7 | 12 | 18 | (0.7 | ) | 59.3 | 52.2 | 13 | 15 | (0.6 | ) | |||||||||||||||||||||||
South America | 15.6 | 23.6 | (34 | ) | (11 | ) | (6.2 | ) | 50.7 | 69.7 | (27 | ) | (12 | ) | (12.4 | ) | |||||||||||||||||||
77.9 | 86.4 | (10 | ) | — | (8.3 | ) | 265.5 | 287.0 | (8 | ) | (5 | ) | (7.5 | ) | |||||||||||||||||||||
Unallocated expenses | (8.6 | ) | (14.4 | ) | (40 | ) | (44 | ) | (1.1 | ) | (32.5 | ) | (46.9 | ) | (31 | ) | (32 | ) | (0.9 | ) | |||||||||||||||
Gains on disposal of assets | 1.5 | 4.1 | (63 | ) | (63 | ) | — | 16.1 | 7.3 | + | + | — | |||||||||||||||||||||||
Re-engineering and impairment charges | (3.0 | ) | (9.0 | ) | (67 | ) | (67 | ) | — | (12.7 | ) | (43.9 | ) | (71 | ) | (71 | ) | — | |||||||||||||||||
Impairment of goodwill | — | — | — | — | — | — | (62.9 | ) | + | + | — | ||||||||||||||||||||||||
Interest expense, net | (10.7 | ) | (10.7 | ) | — | — | — | (32.3 | ) | (32.7 | ) | (1 | ) | (1 | ) | — | |||||||||||||||||||
Income before taxes | 57.1 | 56.4 | 1 | 21 | (9.4 | ) | 204.1 | 107.9 | 89 | + | (8.4 | ) | |||||||||||||||||||||||
Provision for income taxes | 18.0 | 25.0 | (28 | ) | (21 | ) | (2.4 | ) | 65.5 | 46.8 | 40 | 47 | (2.1 | ) | |||||||||||||||||||||
Net income | $ | 39.1 | $ | 31.4 | 24 | 60 | $ | (7.0 | ) | $ | 138.6 | $ | 61.1 | + | + | $ | (6.3 | ) | |||||||||||||||||
Net income per share (diluted) | $ | 0.79 | $ | 0.61 | 30 | 65 | $ | (0.13 | ) | $ | 2.74 | $ | 1.19 | + | + | $ | (0.12 | ) | |||||||||||||||||
Weighted average number of diluted shares | 49.4 | 51.3 | 50.5 | 51.3 |
TUPPERWARE BRANDS CORPORATION | |||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||
(In millions, except per share data) | 13 Weeks Ended Sep 29, 2018 | 13 Weeks Ended Sep 30, 2017 | |||||||||||||||||||||||||
Reported | Adj's | Excl Adj's | Reported | Foreign Exchange Impact | Adj's | Restated* Excl Adj's | |||||||||||||||||||||
Segment profit (loss): | |||||||||||||||||||||||||||
Europe | $ | 1.0 | $ | 0.2 | b,f | $ | 1.2 | $ | (2.4 | ) | $ | 0.4 | $ | — | $ | (2.0 | ) | ||||||||||
Asia Pacific | 43.7 | 0.3 | a | 44.0 | 49.5 | (1.8 | ) | 0.6 | a,f | 48.3 | |||||||||||||||||
North America | 17.6 | 1.7 | a,b,g | 19.3 | 15.7 | (0.7 | ) | 6.2 | a,b,g | 21.2 | |||||||||||||||||
South America | 15.6 | 0.9 | a,c | 16.5 | 23.6 | (6.2 | ) | 2.6 | a,c | 20.0 | |||||||||||||||||
77.9 | 3.1 | 81.0 | 86.4 | (8.3 | ) | 9.4 | 87.5 | ||||||||||||||||||||
Unallocated expenses | (8.6 | ) | — | (8.6 | ) | (14.4 | ) | (1.1 | ) | — | (15.5 | ) | |||||||||||||||
Gains on disposal of assets | 1.5 | (1.5 | ) | d | — | 4.1 | — | (4.1 | ) | d | — | ||||||||||||||||
Re-engineering and impairment charges | (3.0 | ) | 3.0 | e | — | (9.0 | ) | — | 9.0 | e | — | ||||||||||||||||
Interest expense, net | (10.7 | ) | — | (10.7 | ) | (10.7 | ) | — | — | (10.7 | ) | ||||||||||||||||
Income before taxes | 57.1 | 4.6 | 61.7 | 56.4 | (9.4 | ) | 14.3 | 61.3 | |||||||||||||||||||
Provision for income taxes | 18.0 | (1.2 | ) | j | 16.8 | 25.0 | (2.4 | ) | (7.0 | ) | j | 15.6 | |||||||||||||||
Net income | $ | 39.1 | $ | 5.8 | $ | 44.9 | $ | 31.4 | $ | (7.0 | ) | $ | 21.3 | $ | 45.7 | ||||||||||||
Net income per share (diluted) | $ | 0.79 | $ | 0.12 | $ | 0.91 | $ | 0.61 | $ | (0.13 | ) | $ | 0.42 | $ | 0.90 | ||||||||||||
39 Weeks Ended Sep 29, 2018 | 39 Weeks Ended Sep 30, 2017 | ||||||||||||||||||||||||||
Reported | Adj's | Excl Adj's | Reported | Foreign Exchange Impact | Adj's | Restated* Excl Adj's | |||||||||||||||||||||
Segment profit: | |||||||||||||||||||||||||||
Europe | $ | 28.5 | $ | 0.6 | b,f | $ | 29.1 | $ | 29.4 | $ | 3.4 | $ | 1.2 | b,f | $ | 34.0 | |||||||||||
Asia Pacific | 127.0 | 1.3 | a,b,f | 128.3 | 135.7 | 2.1 | 1.4 | a,f | 139.2 | ||||||||||||||||||
North America | 59.3 | 6.1 | a,b,g | 65.4 | 52.2 | (0.6 | ) | 9.0 | a,b,g | 60.6 | |||||||||||||||||
South America | 50.7 | 1.5 | a,c | 52.2 | 69.7 | (12.4 | ) | 4.7 | a,c | 62.0 | |||||||||||||||||
265.5 | 9.5 | 275.0 | 287.0 | (7.5 | ) | 16.3 | 295.8 | ||||||||||||||||||||
Unallocated expenses | (32.5 | ) | — | (32.5 | ) | (46.9 | ) | (0.9 | ) | — | (47.8 | ) | |||||||||||||||
Gains on disposal of assets | 16.1 | (16.1 | ) | d | — | 7.3 | — | (7.3 | ) | d | — | ||||||||||||||||
Re-engineering and impairment charges | (12.7 | ) | 12.7 | e | — | (43.9 | ) | — | 43.9 | e | — | ||||||||||||||||
Impairment of goodwill | — | — | — | (62.9 | ) | — | 62.9 | h | — | ||||||||||||||||||
Interest expense, net | (32.3 | ) | — | (32.3 | ) | (32.7 | ) | — | — | (32.7 | ) | ||||||||||||||||
Income before taxes | 204.1 | 6.1 | 210.2 | 107.9 | (8.4 | ) | 115.8 | 215.3 | |||||||||||||||||||
Provision for income taxes | 65.5 | (6.3 | ) | j | 59.2 | 46.8 | (2.1 | ) | 10.1 | j | 54.8 | ||||||||||||||||
Net income | $ | 138.6 | $ | 12.4 | $ | 151.0 | $ | 61.1 | $ | (6.3 | ) | $ | 105.7 | $ | 160.5 | ||||||||||||
Net income per share (diluted) | $ | 2.74 | $ | 0.25 | $ | 2.99 | $ | 1.19 | $ | (0.12 | ) | $ | 2.06 | $ | 3.13 |
TUPPERWARE BRANDS CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(UNAUDITED) | |||||||
(In millions) | 39 Weeks Ended | 39 Weeks Ended | |||||
September 29, 2018 | September 30, 2017 | ||||||
Operating Activities: | |||||||
Net cash provided by operating activities | $ | 13.6 | $ | 82.0 | |||
Investing Activities: | |||||||
Capital expenditures | (55.2 | ) | (52.6 | ) | |||
Proceeds from disposal of property, plant & equipment | 36.5 | 11.7 | |||||
Net cash used in investing activities | (18.7 | ) | (40.9 | ) | |||
Financing Activities: | |||||||
Dividend payments to shareholders | (104.1 | ) | (103.9 | ) | |||
Repurchase of common stock | (101.3 | ) | (0.6 | ) | |||
Repayment of long-term debt and capital lease obligations | (1.6 | ) | (1.6 | ) | |||
Net change in short-term debt | 200.7 | 76.1 | |||||
Proceeds from exercise of stock options | 0.3 | 9.9 | |||||
Net cash used in financing activities | (6.0 | ) | (20.1 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (13.5 | ) | 6.4 | ||||
Net change in cash, cash equivalents and restricted cash | (24.6 | ) | 27.4 | ||||
Cash, cash equivalents and restricted cash at beginning of year | 147.2 | 96.0 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 122.6 | $ | 123.4 |
TUPPERWARE BRANDS CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
(In millions) | Sep 29, 2018 | Dec 30, 2017 | |||||
Assets: | |||||||
Cash and cash equivalents | $ | 117.6 | $ | 144.1 | |||
Other current assets | 511.5 | 486.4 | |||||
Total current assets | 629.1 | 630.5 | |||||
Property, plant and equipment, net | 269.9 | 278.2 | |||||
Other assets | 450.2 | 479.3 | |||||
Total assets | $ | 1,349.2 | $ | 1,388.0 | |||
Liabilities and Shareholders' Equity: | |||||||
Short-term borrowings and current portion of long-term debt | $ | 332.3 | $ | 133.0 | |||
Accounts payable and other current liabilities | 431.4 | 525.8 | |||||
Total current liabilities | 763.7 | 658.8 | |||||
Long-term debt | 603.8 | 605.1 | |||||
Other liabilities | 210.5 | 243.5 | |||||
Total shareholders' equity | (228.8 | ) | (119.4 | ) | |||
Total liabilities and shareholders' equity | $ | 1,349.2 | $ | 1,388.0 |
TUPPERWARE BRANDS CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE | |||||||||||
October 24, 2018 | |||||||||||
(UNAUDITED) | |||||||||||
Fourth Quarter | Fourth Quarter | ||||||||||
(In millions, except per share data) | 2017 Actual | 2018 Outlook | |||||||||
Range | |||||||||||
Low | High | ||||||||||
Income before income taxes | $ | 77.1 | $ | 80.3 | $ | 83.7 | |||||
Income tax | $ | 403.7 | $ | 18.1 | $ | 19.0 | |||||
Effective Rate | 524 | % | 23 | % | 23 | % | |||||
Net Income (loss) (GAAP) | $ | (326.6 | ) | $ | 62.2 | $ | 64.7 | ||||
% change from prior year | + | + | |||||||||
Adjustments(1): | |||||||||||
Gains on disposal of assets | (1.8 | ) | — | — | |||||||
Re-engineering and pension settlements | 24.3 | 3.4 | 3.4 | ||||||||
Net impact of Venezuelan bolivar devaluations | 3.3 | — | — | ||||||||
Acquired intangible asset amortization | 1.9 | 1.9 | 1.9 | ||||||||
Income tax(2) | 380.4 | (3.6 | ) | (3.6 | ) | ||||||
Net Income (adjusted) | $ | 81.5 | $ | 63.9 | $ | 66.4 | |||||
Exchange rate impact(3) | (8.3 | ) | — | — | |||||||
Net Income (adjusted and 2017 restated for currency changes) | $ | 73.2 | $ | 63.9 | $ | 66.4 | |||||
% change from prior year | (13 | )% | (9 | )% | |||||||
Net income (GAAP) per common share (diluted) | $ | (6.41 | ) | $ | 1.28 | $ | 1.33 | ||||
% change from prior year | + | + | |||||||||
Net Income (adjusted) per common share (diluted) | $ | 1.59 | $ | 1.31 | $ | 1.36 | |||||
Net Income (adjusted & restated) per common share (diluted) | $ | 1.43 | $ | 1.31 | $ | 1.36 | |||||
% change from prior year | (8 | )% | (5 | )% | |||||||
Average number of diluted shares (millions) | 51.3 | 48.7 | 48.7 |
TUPPERWARE BRANDS CORPORATION | |||||||||||
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE | |||||||||||
October 24, 2018 | |||||||||||
(UNAUDITED) | |||||||||||
Full Year | Full Year | ||||||||||
(In millions, except per share data) | 2017 Actual | 2018 Outlook | |||||||||
Range | |||||||||||
Low | High | ||||||||||
Income before income taxes | $ | 185.1 | $ | 284.4 | $ | 287.7 | |||||
Income tax | $ | 450.5 | $ | 83.7 | $ | 84.4 | |||||
Effective Rate | 243 | % | 29 | % | 29 | % | |||||
Net Income (loss) (GAAP) | $ | (265.4 | ) | $ | 200.7 | $ | 203.3 | ||||
% change from prior year | + | + | |||||||||
Adjustments(1): | |||||||||||
Gains on disposal of assets | $ | (9.1 | ) | $ | (16.1 | ) | $ | (16.1 | ) | ||
Purchase accounting intangibles impairment | 62.9 | — | — | ||||||||
Re-engineering and pension settlements | 74.4 | 18.8 | 18.8 | ||||||||
Net impact of Venezuelan and Argentinian currency devaluations | 7.4 | 1.1 | 1.1 | ||||||||
Acquired intangible asset amortization | 7.9 | 7.6 | 7.6 | ||||||||
Income tax(2) | 370.2 | 2.8 | 2.7 | ||||||||
Net Income (adjusted) | $ | 248.3 | $ | 214.9 | $ | 217.4 | |||||
Exchange rate impact(3) | (14.4 | ) | — | — | |||||||
Net Income (adjusted and 2017 restated for currency changes) | $ | 233.9 | $ | 214.9 | $ | 217.4 | |||||
% change from prior year | (8 | )% | (7 | )% | |||||||
Net income, (loss) (GAAP) per common share (diluted) | $ | (5.22 | ) | $ | 4.01 | $ | 4.06 | ||||
Net Income (adjusted) per common share (diluted) | $ | 4.84 | $ | 4.30 | $ | 4.35 | |||||
Net Income (adjusted & restated) per common share (diluted) | $ | 4.55 | $ | 4.30 | $ | 4.35 | |||||
% change from prior year | (5 | )% | (4 | )% | |||||||
Average number of diluted shares (millions) | 51.3 | 50.0 | 50.0 |
TUPPERWARE BRANDS CORPORATION | |||
ADJUSTED EBITDA AND DEBT/ADJUSTED EBITDA* | |||
(UNAUDITED) | |||
As of and for the four quarters ended | |||
September 29, 2018 | |||
Adjusted EBITDA: | |||
Net income (loss) | $ | (187.9 | ) |
Add: | |||
Depreciation and amortization | 59.4 | ||
Gross interest expense | 45.7 | ||
Provision for income taxes | 469.2 | ||
Equity compensation | 19.2 | ||
Pre-tax re-engineering and impairment charges | 2.3 | ||
Other non-cash extraordinary, unusual or non-recurring charges | 33.0 | ||
Deduct: | |||
Cash paid for re-engineering | (39.1 | ) | |
Gains on land sales, insurance recoveries, etc. | (17.9 | ) | |
Total Adjusted EBITDA | $ | 383.9 | |
Consolidated total debt | $ | 936.1 | |
Divided by adjusted EBITDA | 383.9 | ||
Debt to Adjusted EBITDA Ratio | 2.44 |
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