Molson Coors Delivers First Quarter Double-Digit Top and Bottom-Line Growth with Highest Above Premium Mix Since the 2016 MillerCoors Acquisition
Company Reaffirms 2022 Guidance for Top and Bottom-Line Growth, Continuing to Deliver on its Revitalization Plan and Manage Costs
GOLDEN, Colo. & MONTREAL--(BUSINESS WIRE)--Molson Coors Beverage Company ("MCBC") (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) today reported results for the 2022 first quarter.
2022 FIRST QUARTER FINANCIAL HIGHLIGHTS
CEO AND CFO PERSPECTIVES
Molson Coors delivered against its revitalization plan in the first quarter of 2022 as the Company continues driving towards its goal of sustainable long-term top and bottom-line growth while managing global inflationary pressures. The Company grew its top line for a fourth consecutive quarter - the highest quarterly top-line growth in over a decade. It grew revenue of its core brands, Coors Light and Miller Lite, on the heels of doing the same in 2021. Fewer on-premise restrictions led to significant growth in European markets on the strength of flagship brands like Carling. The global above premium portfolio continued to grow and reached its highest percentage of total trailing twelve month net sales since the 2016 MillerCoors acquisition fueled in part by the national launch of Topo Chico Hard Seltzer.
Gavin Hattersley, President and Chief Executive Officer Statement:
“The start of 2022 brought continued momentum for Molson Coors. Many of our core brands continued to outperform their peers, we again earned the largest growth in U.S. hard seltzers among major brewers and our expansion beyond beer continued to track ahead of our $1 billion revenue target. All were factors in delivering not just a successful quarter, but the most quarterly top-line growth this company has had in more than ten years."
Tracey Joubert, Chief Financial Officer Statement:
“We had a strong first quarter, delivering double-digit top and bottom-line growth on a U.S. GAAP basis and triple-digit bottom-line growth on an underlying basis. Our performance benefited from strong pricing and sales mix and our efforts to mitigate the challenging inflationary environment, while still increasing investments behind our core brands and key innovations. Under our revitalization plan, we have built a strong foundation for future growth that has positioned us to manage through challenging times. This gives us the confidence to reaffirm our 2022 guidance for top and bottom-line growth."
CONSOLIDATED PERFORMANCE - FIRST QUARTER 2022 |
|||||||||||||||
|
For the Three Months Ended |
|
|||||||||||||
($ in millions, except per share data) (Unaudited) |
March 31,
|
|
March 31,
|
|
Reported
|
|
Foreign
|
|
Constant
|
||||||
Net sales |
$ |
2,214.6 |
|
$ |
1,898.4 |
|
16.7 |
% |
|
$ |
(17.2 |
) |
|
17.6 |
% |
U.S. GAAP Income (loss) before income taxes |
$ |
173.7 |
|
$ |
126.3 |
|
37.5 |
% |
|
$ |
(0.4 |
) |
|
37.8 |
% |
Underlying Income (loss) before income taxes(1) |
$ |
83.5 |
|
$ |
17.2 |
|
N/M |
|
|
$ |
0.4 |
|
|
N/M |
|
U.S. GAAP Net income (loss)(2) |
$ |
151.5 |
|
$ |
84.1 |
|
80.1 |
% |
|
|
|
|
|||
Per diluted share |
$ |
0.70 |
|
$ |
0.39 |
|
79.5 |
% |
|
|
|
|
|||
Underlying Net income (loss)(1) |
$ |
63.8 |
|
$ |
1.6 |
|
N/M |
|
|
|
|
|
|||
Per diluted share |
$ |
0.29 |
|
$ |
0.01 |
|
N/M |
|
|
|
|
|
N/M = Not meaningful | ||
(1) |
Represents income (loss) before income taxes and net income (loss) attributable to MCBC adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. |
|
(2) |
Net income (loss) attributable to MCBC. |
NET SALES DRIVERS |
|||||||||||||||||
|
For the Three Months Ended March 31, 2022 |
||||||||||||||||
|
Reported |
|
|
||||||||||||||
Percent change versus comparable prior year period |
Financial
|
|
Price and
|
|
Currency |
|
Net Sales |
|
Net Sales per
|
|
Brand Volume |
||||||
Consolidated |
5.1 |
% |
|
12.5 |
% |
|
(0.9 |
) % |
|
16.7 |
% |
|
10.2 |
% |
|
1.7 |
% |
Americas |
(0.8 |
) % |
|
9.4 |
% |
|
(0.1 |
) % |
|
8.5 |
% |
|
9.8 |
% |
|
(3.1 |
) % |
EMEA&APAC |
29.4 |
% |
|
62.9 |
% |
|
(8.1 |
) % |
|
84.2 |
% |
|
30.1 |
% |
|
19.8 |
% |
(1) |
Our net sales per hectoliter performance discussions are presented on a brand volume ("BV") basis, which reflects owned or actively managed brand volume, along with royalty volume, in the denominator, as well as the financial impact of these sales (in constant currency) in the numerator, unless otherwise indicated. |
QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS FIRST QUARTER 2021 RESULTS)
QUARTERLY SEGMENT HIGHLIGHTS (VERSUS FIRST QUARTER 2021 RESULTS)
Americas Segment
EMEA&APAC Segment
CASH FLOW AND LIQUIDITY HIGHLIGHTS
Tax Rates Table |
|||||
(Unaudited) |
For the Three Months Ended |
||||
|
March 31, 2022 |
|
March 31, 2021 |
||
U.S. GAAP effective tax rate |
21 |
% |
|
35 |
% |
Underlying effective tax rate(1) |
26 |
% |
|
103 |
% |
(1) |
See Appendix for definitions and reconciliations of non-GAAP financial measures. |
Special and Other Non-Core Items
The following special and other non-core items have been excluded from underlying results. See the Appendix for reconciliations of non-GAAP financial measures.
We continue to expect to achieve the following targets for full year 2022. However, the inherent uncertainties that exist in the macroeconomic environment, including significant cost inflation, the extent and duration of the ongoing Québec collective bargaining negotiations and related strike and the ongoing coronavirus pandemic could impact our financial performance.
We repaid our $500 million 3.5% USD notes upon their maturity on May 1, 2022 using a combination of commercial paper borrowings and cash on hand.
Unless otherwise indicated in this release, all $ amounts are in U.S. Dollars, and all quarterly comparative results are for the Company’s first quarter ended March 31, 2022, compared to the first quarter ended March 31, 2021. Some numbers may not sum due to rounding.
2022 FIRST QUARTER INVESTOR CONFERENCE CALL
Molson Coors Beverage Company will conduct an earnings conference call with financial analysts and investors at 11:00 a.m. Eastern Time today to discuss the Company’s 2022 first quarter results. The live webcast will be accessible via our website, ir.molsoncoors.com. An online replay of the webcast will be available until 11:59 p.m. Eastern Time on August 1, 2022. The Company will post this release and related financial statements on its website today.
OVERVIEW OF MOLSON COORS BEVERAGE COMPANY
For more than two centuries Molson Coors Beverage Company has been brewing beverages that unite people for all life’s moments. From Coors Light, Miller Lite, Molson Canadian, Carling, and Staropramen to Coors Banquet, Blue Moon Belgian White, Blue Moon LightSky, Vizzy, Coors Seltzer, Leinenkugel’s Summer Shandy, Creemore Springs, Hop Valley and more, Molson Coors produces many beloved and iconic beer brands. While the Company’s history is rooted in beer, Molson Coors offers a modern portfolio that expands beyond the beer aisle as well.
Our reporting segments include: Americas, operating in the U.S., Canada and various countries in the Caribbean, Latin and South America; and EMEA&APAC, operating in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries and certain countries within the Middle East, Africa and Asia Pacific. In addition to our reporting segments, we also have certain items that are unallocated to our reporting segments and reported as "Unallocated", which primarily include financing related costs and impacts of other treasury-related activities. Our Environmental, Social and Governance ("ESG") strategy is focused on People and Planet with a strong commitment to raising industry standards and leaving a positive imprint on our employees, consumers, communities and the environment. To learn more about Molson Coors Beverage Company, visit molsoncoors.com, MolsonCoorsOurImprint.com or on Twitter through @MolsonCoors.
ABOUT MOLSON COORS CANADA INC.
Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors Beverage Company. MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC’s annual proxy statement and Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies," and variations of such words and similar expressions are intended to identify forward-looking statements. Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements, and include, but are not limited to, statements under the heading "2022 Outlook," with respect to expectations regarding the impact of the coronavirus pandemic on our operations, liquidity, financial condition and financial results, expectations regarding future dividends, overall volume trends, consumer preferences, pricing trends, industry forces, cost reduction strategies, including our revitalization plan, expectations of cost inflation, anticipated results, expectations for funding future capital expenditures and operations, debt service capabilities, timing and amounts of debt and leverage levels, shipment levels and profitability, market share and the sufficiency of capital resources. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission (“SEC”). These factors include, among others, the impact of the coronavirus pandemic; the impact of increased competition resulting from further consolidation of brewers; competitive pricing and product pressures; the health of the beer industry and our brands in our markets; economic conditions in our markets; our ability to maintain brand image, reputation and product quality; ESG issues; the impact of climate change and the availability and quality of water; loss or closure of a major brewery or other key facility; our ability to maintain good labor relations; labor strikes, work stoppages and other employee-related issues; our reliance on third party service providers and internal and outsourced systems; a breach of our information systems; investment performance of pension plan holdings and related pension plan costs; failure to comply with debt covenants or deterioration in our credit rating; increase in the cost of commodities used in the business; dependence on the global supply chain and impacts of supply chain constraints and inflationary pressures, including the adverse impacts of the Russia-Ukraine conflict; additional impairment charges; estimates and assumptions on which our financial projections are based which may prove to be inaccurate; our ability to implement our strategic initiatives, including the executing and realizing cost savings; availability or increase in cost of packaging materials; unfavorable legal or regulatory outcomes affecting the business; risks relating to operations in developing and emerging markets; changes in legal and regulatory requirements, including the regulation of distribution systems; fluctuations in foreign currency exchange rates; success of our joint ventures; and other risks discussed in our filings with the SEC, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
MARKET AND INDUSTRY DATA
The market and industry data used, if any, in this press release are based on independent industry publications, customer specific data, trade or business organizations, reports by market research firms and other published statistical information from third parties, including Information Resources, Inc. for U.S. market data and Beer Canada for Canadian market data (collectively, the “Third Party Information”), as well as information based on management’s good faith estimates, which we derive from our review of internal information and independent sources. Such Third Party Information generally states that the information contained therein or provided by such sources has been obtained from sources believed to be reliable.
STATEMENTS OF OPERATIONS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Statements of Operations |
|||||||
(In millions, except per share data) (Unaudited) |
For the Three Months Ended |
||||||
|
March 31, 2022 |
|
March 31,
|
||||
Sales |
$ |
2,643.3 |
|
|
$ |
2,256.1 |
|
Excise taxes |
|
(428.7 |
) |
|
|
(357.7 |
) |
Net sales |
|
2,214.6 |
|
|
|
1,898.4 |
|
Cost of goods sold |
|
(1,286.8 |
) |
|
|
(1,167.4 |
) |
Gross profit |
|
927.8 |
|
|
|
731.0 |
|
Marketing, general and administrative expenses |
|
(675.7 |
) |
|
|
(542.9 |
) |
Special items, net |
|
(27.6 |
) |
|
|
(10.9 |
) |
Equity income (loss) |
|
(0.1 |
) |
|
|
— |
|
Operating income (loss) |
|
224.4 |
|
|
|
177.2 |
|
Interest income (expense), net |
|
(63.3 |
) |
|
|
(65.3 |
) |
Other pension and postretirement benefits (costs), net |
|
10.6 |
|
|
|
13.0 |
|
Other income (expense), net |
|
2.0 |
|
|
|
1.4 |
|
Income (loss) before income taxes |
|
173.7 |
|
|
|
126.3 |
|
Income tax benefit (expense) |
|
(36.4 |
) |
|
|
(44.3 |
) |
Net income (loss) |
|
137.3 |
|
|
|
82.0 |
|
Net (income) loss attributable to noncontrolling interests |
|
14.2 |
|
|
|
2.1 |
|
Net income (loss) attributable to MCBC |
$ |
151.5 |
|
|
$ |
84.1 |
|
|
|
|
|
||||
Basic net income (loss) attributable to MCBC per share |
$ |
0.70 |
|
|
$ |
0.39 |
|
Diluted net income (loss) attributable to MCBC per share |
$ |
0.70 |
|
|
$ |
0.39 |
|
|
|
|
|
||||
Weighted average shares outstanding - basic |
|
217.2 |
|
|
|
217.0 |
|
Weighted average shares outstanding - diluted |
|
217.8 |
|
|
|
217.4 |
|
|
|
|
|
||||
Dividends per share |
$ |
0.38 |
|
|
$ |
— |
|
|
|
|
|
BALANCE SHEETS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(In millions, except par value) (Unaudited) |
As of |
||||||
|
March 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
358.7 |
|
|
$ |
637.4 |
|
Accounts receivable, net |
|
761.2 |
|
|
|
678.9 |
|
Other receivables, net |
|
207.3 |
|
|
|
200.5 |
|
Inventories, net |
|
935.8 |
|
|
|
804.7 |
|
Other current assets, net |
|
607.6 |
|
|
|
457.2 |
|
Total current assets |
|
2,870.6 |
|
|
|
2,778.7 |
|
Properties, net |
|
4,210.5 |
|
|
|
4,192.4 |
|
Goodwill |
|
6,155.0 |
|
|
|
6,152.6 |
|
Other intangibles, net |
|
13,221.8 |
|
|
|
13,286.8 |
|
Other assets |
|
1,263.6 |
|
|
|
1,208.5 |
|
Total assets |
$ |
27,721.5 |
|
|
$ |
27,619.0 |
|
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and other current liabilities |
$ |
2,873.4 |
|
|
$ |
3,107.3 |
|
Current portion of long-term debt and short-term borrowings |
|
681.9 |
|
|
|
514.9 |
|
Total current liabilities |
|
3,555.3 |
|
|
|
3,622.2 |
|
Long-term debt |
|
6,631.5 |
|
|
|
6,647.2 |
|
Pension and postretirement benefits |
|
649.9 |
|
|
|
654.4 |
|
Deferred tax liabilities |
|
2,776.6 |
|
|
|
2,704.6 |
|
Other liabilities |
|
337.7 |
|
|
|
326.5 |
|
Total liabilities |
|
13,951.0 |
|
|
|
13,954.9 |
|
Molson Coors Beverage Company stockholders' equity |
|
|
|
||||
Capital stock |
|
|
|
||||
Preferred stock, $0.01 par value (authorized: 25.0 shares; none issued) |
|
— |
|
|
|
— |
|
Class A common stock, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares, respectively) |
|
— |
|
|
|
— |
|
Class B common stock, $0.01 par value (authorized: 500.0 shares; issued: 210.3 shares and 210.1 shares, respectively) |
|
2.1 |
|
|
|
2.1 |
|
Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively) |
|
102.2 |
|
|
|
102.2 |
|
Class B exchangeable shares, no par value (issued and outstanding: 11.1 shares and 11.1 shares, respectively) |
|
417.2 |
|
|
|
417.8 |
|
Paid-in capital |
|
6,975.6 |
|
|
|
6,970.9 |
|
Retained earnings |
|
7,469.8 |
|
|
|
7,401.5 |
|
Accumulated other comprehensive income (loss) |
|
(949.6 |
) |
|
|
(1,006.0 |
) |
Class B common stock held in treasury at cost (9.7 shares and 9.5 shares, respectively) |
|
(485.5 |
) |
|
|
(471.4 |
) |
Total Molson Coors Beverage Company stockholders' equity |
|
13,531.8 |
|
|
|
13,417.1 |
|
Noncontrolling interests |
|
238.7 |
|
|
|
247.0 |
|
Total equity |
|
13,770.5 |
|
|
|
13,664.1 |
|
Total liabilities and equity |
$ |
27,721.5 |
|
|
$ |
27,619.0 |
|
|
|
|
|
CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(In millions) (Unaudited) |
For the Three Months Ended |
||||||
|
March 31,
|
|
March 31,
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) including noncontrolling interests |
$ |
137.3 |
|
|
$ |
82.0 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
||||
Depreciation and amortization |
|
173.7 |
|
|
|
202.3 |
|
Amortization of debt issuance costs and discounts |
|
1.6 |
|
|
|
1.8 |
|
Share-based compensation |
|
8.5 |
|
|
|
8.3 |
|
(Gain) loss on sale or impairment of properties and other assets, net |
|
22.4 |
|
|
|
2.8 |
|
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net |
|
(169.6 |
) |
|
|
(122.6 |
) |
Equity (income) loss |
|
0.1 |
|
|
|
— |
|
Income tax (benefit) expense |
|
36.4 |
|
|
|
44.3 |
|
Income tax (paid) received |
|
(3.1 |
) |
|
|
(9.1 |
) |
Interest expense, excluding amortization of debt issuance costs and discounts |
|
62.2 |
|
|
|
64.1 |
|
Interest paid |
|
(81.2 |
) |
|
|
(86.6 |
) |
Change in current assets and liabilities and other |
|
(307.6 |
) |
|
|
(378.2 |
) |
Net cash provided by (used in) operating activities |
|
(119.3 |
) |
|
|
(190.9 |
) |
Cash flows from investing activities: |
|
|
|
||||
Additions to properties |
|
(243.8 |
) |
|
|
(102.5 |
) |
Proceeds from sales of properties and other assets |
|
13.2 |
|
|
|
1.1 |
|
Other |
|
4.4 |
|
|
|
16.8 |
|
Net cash provided by (used in) investing activities |
|
(226.2 |
) |
|
|
(84.6 |
) |
Cash flows from financing activities: |
|
|
|
||||
Exercise of stock options under equity compensation plans |
|
0.9 |
|
|
|
4.5 |
|
Dividends paid |
|
(82.4 |
) |
|
|
— |
|
Payments on debt and borrowings |
|
(1.1 |
) |
|
|
(0.9 |
) |
Proceeds on debt and borrowings |
|
5.0 |
|
|
|
— |
|
Purchases of treasury stock |
|
(14.1 |
) |
|
|
— |
|
Net proceeds from (payments on) revolving credit facilities and commercial paper |
|
156.3 |
|
|
|
0.5 |
|
Change in overdraft balances and other |
|
7.9 |
|
|
|
40.9 |
|
Net cash provided by (used in) financing activities |
|
72.5 |
|
|
|
45.0 |
|
Cash and cash equivalents |
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
(273.0 |
) |
|
|
(230.5 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
|
(5.7 |
) |
|
|
(6.9 |
) |
Balance at beginning of year |
|
637.4 |
|
|
|
770.1 |
|
Balance at end of period |
$ |
358.7 |
|
|
$ |
532.7 |
|
|
|
|
|
SUMMARIZED SEGMENT RESULTS (volume and $ in millions) (Unaudited) |
|||||||||||||
Americas |
Q1 2022 |
Q1 2021 |
Reported
|
FX
|
Constant
|
||||||||
Net sales(1) |
$ |
1,836.2 |
|
$ |
1,692.0 |
|
8.5 |
|
$ |
(0.5 |
) |
8.6 |
|
Income (loss) before income taxes |
$ |
87.1 |
|
$ |
144.2 |
|
(39.6 |
) |
$ |
1.0 |
|
(40.3 |
) |
Underlying income (loss) before income taxes |
$ |
166.7 |
|
$ |
152.2 |
|
9.5 |
|
$ |
0.8 |
|
9.0 |
|
Financial volume(1)(2) |
|
12.999 |
|
|
13.102 |
|
(0.8 |
) |
|
|
|||
Brand volume |
|
12.436 |
|
|
12.831 |
|
(3.1 |
) |
|
|
|||
|
|
|
|
|
|
||||||||
EMEA&APAC |
Q1 2022 |
Q1 2021 |
Reported
|
FX
|
Constant
|
||||||||
Net sales(1) |
$ |
381.2 |
|
$ |
206.9 |
|
84.2 |
|
$ |
(16.7 |
) |
92.3 |
|
Income (loss) before income taxes |
$ |
(32.2 |
) |
$ |
(89.4 |
) |
64.0 |
|
$ |
1.0 |
|
62.9 |
|
Underlying income (loss) before income taxes |
$ |
(31.2 |
) |
$ |
(85.0 |
) |
63.3 |
|
$ |
1.0 |
|
62.1 |
|
Financial volume(1)(2) |
|
4.039 |
|
|
3.122 |
|
29.4 |
|
|
|
|||
Brand volume |
|
4.095 |
|
|
3.417 |
|
19.8 |
|
|
|
|||
|
|
|
|
|
|
||||||||
Unallocated & Eliminations |
Q1 2022 |
Q1 2021 |
Reported
|
FX
|
Constant
|
||||||||
Net Sales |
$ |
(2.8 |
) |
$ |
(0.5 |
) |
N/M |
|
|
|
|||
Income (loss) before income taxes |
$ |
118.8 |
|
$ |
71.5 |
|
66.2 |
|
$ |
(2.4 |
) |
69.5 |
|
Underlying income (loss) before income taxes |
$ |
(52.0 |
) |
$ |
(50.0 |
) |
4.0 |
|
$ |
(1.4 |
) |
1.2 |
|
Financial volume(2) |
|
(0.001 |
) |
|
(0.007 |
) |
(85.7 |
) |
|
|
|||
|
|
|
|
|
|
||||||||
Consolidated |
Q1 2022 |
Q1 2021 |
Reported
|
FX
|
Constant
|
||||||||
Net sales |
$ |
2,214.6 |
|
$ |
1,898.4 |
|
16.7 |
|
$ |
(17.2 |
) |
17.6 |
|
COGS |
$ |
(1,286.8 |
) |
$ |
(1,167.4 |
) |
10.2 |
|
$ |
11.3 |
|
11.2 |
|
MG&A |
$ |
(675.7 |
) |
$ |
(542.9 |
) |
24.5 |
|
$ |
6.2 |
|
25.6 |
|
Income (loss) before income taxes |
$ |
173.7 |
|
$ |
126.3 |
|
37.5 |
|
$ |
(0.4 |
) |
37.8 |
|
Underlying income (loss) before income taxes |
$ |
83.5 |
|
$ |
17.2 |
|
N/M |
|
$ |
0.4 |
|
N/M |
|
Financial volume(2) |
|
17.037 |
|
|
16.217 |
|
5.1 |
|
|
|
|||
Brand volume |
|
16.531 |
|
|
16.248 |
|
1.7 |
|
|
|
|||
|
|
|
|
|
|
The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable. | ||
N/M = Not meaningful | ||
(1) |
Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals. The unrealized changes in fair value on our commodity swaps, which are economic hedges, are recorded as cost of goods sold within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. |
|
(2) |
Financial volume in hectoliters for Americas and EMEA&APAC excludes royalty volume of 0.601 million hectoliters and 0.319 million hectoliters for the three months ended March 31, 2022, respectively, and excludes royalty volume of 0.567 million hectoliters and 0.359 million hectoliters for three months ended March 31, 2021, respectively. |
WORLDWIDE BRAND AND FINANCIAL VOLUME |
||||||||
(In millions of hectoliters) (Unaudited) |
For the Three Months Ended |
|||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
Change |
|||
Financial Volume |
17.037 |
|
|
16.217 |
|
|
5.1 |
% |
Contract brewing and wholesale/factored volume |
(1.502 |
) |
|
(1.238 |
) |
|
21.3 |
% |
Royalty volume |
0.920 |
|
|
0.926 |
|
|
(0.6 |
) % |
Sales-To-Wholesaler to Sales-To-Retail adjustment |
0.076 |
|
|
0.343 |
|
|
(77.8 |
) % |
Total Worldwide Brand Volume |
16.531 |
|
|
16.248 |
|
|
1.7 |
% |
|
|
|
|
|
|
Worldwide brand volume (or "brand volume" when discussed by segment) reflects owned or actively managed brands sold to unrelated external customers within our geographic markets (net of returns and allowances), royalty volume and our proportionate share of equity investment worldwide brand volume calculated consistently with MCBC owned volume. Financial volume represents owned brands sold to unrelated external customers within our geographical markets, net of returns and allowances as well as contract brewing, wholesale non-owned brand volume and company-owned distribution volume. Contract brewing and wholesale/factored volume is included within financial volume, but is removed from worldwide brand volume, as this is non-owned volume for which we do not directly control performance. Factored volume in our EMEA&APAC segment is the distribution of beer, wine, spirits and other products owned and produced by other companies to the on-premise channel, which is a common arrangement in the U.K. Royalty volume consists of our brands produced and sold by third parties under various license and contract-brewing agreements and because this is owned volume, it is included in worldwide brand volume. Our worldwide brand volume definition also includes an adjustment from Sales-to-Wholesaler (STW) volume to Sales-to-Retailer (STR) volume. We believe the brand volume metric is important because, unlike financial volume and STWs, it provides the closest indication of the performance of our brands in relation to market and competitor sales trends.
As part of the revitalization plan strategy to grow our above premium portfolio and expand beyond the beer aisle, we have de-prioritized and rationalized certain non-core economy SKUs. This strategy is intended to drive sustainable net sales growth and earnings growth, despite potential volume declines as the portfolio mix shifts towards a higher composition of above premium products.
USE OF NON-GAAP MEASURES
In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. (“U.S. GAAP”), we also use non-GAAP financial measures, as listed and defined below for operational and financial decision making and to assess Company and segment business performance. These non-GAAP measures should be viewed as supplements to (not substitutes for) our results of operations presented under U.S. GAAP. We have provided reconciliations of all historical non-GAAP measures to their nearest U.S. GAAP measure and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure.
Our management uses these metrics to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe these measures are used by, and are useful to, investors and other users of our financial statements in evaluating our operating performance.
Our guidance for any of the measures noted above are also non-GAAP financial measures that exclude or otherwise have been adjusted for special items from our U.S. GAAP financial statements as well as other non-core items as described above. When we provide guidance for any of the various non-GAAP metrics described above, we do not provide reconciliations of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the special and other non-core items. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts.
RECONCILIATION TO NEAREST U.S. GAAP MEASURES |
||||||||||||||||||
Reconciliation by Line Item |
||||||||||||||||||
(In millions, except per share data) (Unaudited) |
|
|||||||||||||||||
|
Cost of
|
Marketing,
|
Other
|
Income
|
Net income
|
Net income
|
||||||||||||
Reported (U.S. GAAP) |
$ |
(1,286.8 |
) |
$ |
(675.7 |
) |
$ |
2.0 |
|
$ |
173.7 |
|
$ |
151.5 |
|
$ |
0.70 |
|
Adjustments to arrive at underlying: |
|
|
|
|
|
|
||||||||||||
Special items, net |
|
|
|
|
|
|
||||||||||||
Employee-related charges |
|
— |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
0.3 |
|
|
— |
|
Impairments or asset abandonment charges(1) |
|
— |
|
|
— |
|
|
— |
|
|
29.6 |
|
|
17.5 |
|
|
0.08 |
|
Termination fees and other (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
(2.3 |
) |
|
(2.3 |
) |
|
(0.01 |
) |
Non-Core items |
|
|
|
|
|
|
||||||||||||
Unrealized mark-to-market (gains) losses |
|
(170.8 |
) |
|
— |
|
|
— |
|
|
(170.8 |
) |
|
(170.8 |
) |
|
(0.78 |
) |
Other non-core items(2) |
|
— |
|
|
56.0 |
|
|
(3.0 |
) |
|
53.0 |
|
|
53.0 |
|
|
0.24 |
|
Total Special and Other Non-Core items |
$ |
(170.8 |
) |
$ |
56.0 |
|
$ |
(3.0 |
) |
$ |
(90.2 |
) |
$ |
(102.3 |
) |
$ |
(0.47 |
) |
Tax effects on special and other non-core items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
19.7 |
|
|
0.09 |
|
Discrete tax items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5.1 |
) |
|
(0.02 |
) |
Underlying (Non-GAAP) |
$ |
(1,457.6 |
) |
$ |
(619.7 |
) |
$ |
(1.0 |
) |
$ |
83.5 |
|
$ |
63.8 |
|
$ |
0.29 |
|
|
|
|
|
|
|
|
(1) |
During the three months ended March 31, 2022, we identified a triggering event related to the Truss LP joint venture asset group within our Americas segment and recognized an impairment loss of $28.6 million, of which $12.1 million was attributable to the noncontrolling interest. |
|
(2) |
During the three months ended March 31, 2022, we recorded an accrued liability of $56 million within MG&A related to potential losses as a result of the ongoing Keystone litigation case. |
Reconciliation to Underlying Income (Loss) Before Income Taxes by Segment |
||||||||||||||
(In millions) (Unaudited) |
For the Three Months Ended March 31, 2022 |
|||||||||||||
|
Americas |
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
|||||||
Income (loss) before income taxes |
$ |
87.1 |
|
$ |
(32.2 |
) |
|
$ |
118.8 |
|
|
$ |
173.7 |
|
Add/(less): |
|
|
|
|
|
|
|
|||||||
Special items, net |
|
26.6 |
|
|
1.0 |
|
|
|
— |
|
|
|
27.6 |
|
Other non-core items |
|
53.0 |
|
|
— |
|
|
|
(170.8 |
) |
|
|
(117.8 |
) |
Total Special and other Non-Core items |
$ |
79.6 |
|
$ |
1.0 |
|
|
$ |
(170.8 |
) |
|
$ |
(90.2 |
) |
Underlying income (loss) before income taxes |
$ |
166.7 |
|
$ |
(31.2 |
) |
|
$ |
(52.0 |
) |
|
$ |
83.5 |
|
|
|
|
|
|
|
|
|
Effective Tax Rate Reconciliation |
|||||
(Unaudited) |
For the Three Months Ended |
||||
|
March 31, 2022 |
|
March 31, 2021 |
||
GAAP Effective Tax Rate |
21 |
% |
|
35 |
% |
Add/(less):(1) |
|
|
|
||
Tax effect of special and other non-core items(2) |
2 |
% |
|
71 |
% |
Discrete and other non-core tax items(3) |
3 |
% |
|
(3 |
%) |
Underlying (Non-GAAP) Effective Tax Rate |
26 |
% |
|
103 |
% |
|
|
|
|
(1) |
Adjustments related to the tax effect of special items, net and non-core items as well as certain discrete tax items excluded from our underlying effective tax rate. Discrete and other non-core tax items include significant tax audit and prior year reserve adjustments, impact of significant tax legislation and tax rate changes and significant non-recurring and period specific tax items. |
|
(2) |
The decrease in the tax effect of special and other non-core items is primarily due to higher underlying income before income taxes in the first quarter of 2022 compared to prior year. For the three months ended March 31, 2021, there was a disproportionate impact from the discrete tax expense recorded during the first quarter on our underlying effective tax rate due to the significantly lower underlying income before income taxes for the first quarter of 2021. |
|
(3) |
The increase in discrete and other non-core tax expense in 2022 compared to the decrease in 2021 is primarily due to the removal of other non-core tax benefits in 2022 as compared to the removal of other non-core tax expense in 2021. |
Underlying Free Cash Flow |
||||||||
(In millions) (Unaudited) |
For the Three Months Ended |
|||||||
|
|
March 31, 2022 |
|
March 31, 2021 |
||||
U.S. GAAP: |
Net Cash Provided by (Used In) Operating Activities |
$ |
(119.3 |
) |
|
$ |
(190.9 |
) |
Less: |
Additions to properties(1) |
|
(243.8 |
) |
|
|
(102.5 |
) |
Add/Less: |
Cash impact of special items(2) |
|
4.3 |
|
|
|
12.4 |
|
Add/Less: |
Cash impact of other non-core items(3) |
|
— |
|
|
|
10.2 |
|
Non-GAAP: |
Underlying Free Cash Flow |
$ |
(358.8 |
) |
|
$ |
(270.8 |
) |
|
|
|
|
|
(1) |
Included in net cash provided by (used in) investing activities. |
|
(2) |
Included in net cash provided by (used in) operating activities and primarily reflects costs paid for restructuring activities for the three months ended March 31, 2022 and March 31, 2021. |
|
(3) |
Included in net cash provided by (used in) operating activities and primarily reflects costs paid for the cybersecurity incident, net of insurance recoveries, in the Americas segment for the three months ended March 31, 2021. |
Net Debt to Underlying EBITDA Ratio |
|||||
(In millions) (Unaudited) |
As of |
||||
|
|
March 31, 2022 |
March 31, 2021 |
||
U.S. GAAP |
Current portion of long-term debt and short-term borrowings |
$ |
681.9 |
$ |
1,063.5 |
Add: |
Long-term debt |
|
6,631.5 |
|
7,181.2 |
Less: |
Cash and cash equivalents |
|
358.7 |
|
532.7 |
|
Net debt |
$ |
6,954.7 |
$ |
7,712.0 |
|
Q1 Underlying EBITDA |
|
320.5 |
|
280.0 |
|
Q4 Underlying EBITDA |
|
457.3 |
|
375.1 |
|
Q3 Underlying EBITDA |
|
642.6 |
|
712.5 |
|
Q2 Underlying EBITDA |
|
697.8 |
|
692.3 |
Non-GAAP |
Underlying EBITDA(1) |
$ |
2,118.2 |
$ |
2,059.9 |
|
Net debt to underlying EBITDA ratio |
|
3.28 |
|
3.74 |
|
|
|
|
(1) |
Represents underlying EBITDA on a trailing twelve month basis. |
Underlying EBITDA Reconciliation |
||||||
(In millions) (Unaudited) |
For the Three Months Ended |
|||||
|
March 31, 2022 |
March 31, 2021 |
||||
|
|
|
||||
U.S. GAAP: Net income (loss) attributable to MCBC |
$ |
151.5 |
|
$ |
84.1 |
|
Add: Net income (loss) attributable to noncontrolling interests |
|
(14.2 |
) |
|
(2.1 |
) |
U.S. GAAP: Net income (loss) |
|
137.3 |
|
|
82.0 |
|
Add: Interest expense (income), net |
|
63.3 |
|
|
65.3 |
|
Add: Income tax expense (benefit) |
|
36.4 |
|
|
44.3 |
|
Add: Depreciation and amortization |
|
173.7 |
|
|
202.3 |
|
Adjustments included in underlying income(1) |
|
(90.2 |
) |
|
(109.1 |
) |
Adjustments to arrive at underlying EBITDA(1) |
|
— |
|
|
(4.8 |
) |
Non-GAAP Underlying EBITDA |
$ |
320.5 |
|
$ |
280.0 |
|
|
|
|
(1) |
Includes adjustments to income (loss) before income taxes related to special and non-core items. See Reconciliations to Nearest U.S. GAAP Measures by Line Item table for detailed adjustments. |
Molson Coors Демонстрирует Двузначный Рост Выручки и прибыли в Первом квартале с Самым высоким Соотношением выше Премиальных С момента приобретения MillerCoors В 2016 году
Компания подтверждает Руководство по росту прибыли и прибыли на 2022 год, Продолжая выполнять свой План активизации и управлять расходами
ЗОЛОТОЙ, Коло. & МОНРЕАЛЬ--(BUSINESS WIRE)--Компания Molson Coors Beverage ("MCBC") (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) сегодня сообщила о результатах за первый квартал 2022 года.
основные финансовые показатели первого квартала 2022 года
перспективы генерального директора и финансового директора
Molson Coors выполнила свой план активизации в первом квартале 2022 года, поскольку Компания продолжает двигаться к своей цели устойчивого долгосрочного роста прибыли и прибыли при одновременном управлении глобальным инфляционным давлением. Компания увеличивала свою выручку четвертый квартал подряд - это самый высокий квартальный рост выручки за последние десять лет. Компания увеличила выручку своих основных брендов Coors Light и Miller Lite вслед за тем, чтобы сделать то же самое в 2021 году. Меньшее количество локальных ограничений привело к значительному росту на европейских рынках благодаря таким флагманским брендам, как Carling. Глобальный портфель продуктов премиум-класса продолжал расти и достиг самого высокого процента от общего объема чистых продаж за последние двенадцать месяцев с момента приобретения MillerCoors в 2016 году, чему отчасти способствовал национальный запуск Topo Chico Hard Seltzer.
Гэвин Хаттерсли, Президент и Главный исполнительный директор Заявление:
“Начало 2022 года принесло компании Molson Coors дальнейший импульс. Многие из наших основных брендов продолжали превосходить своих конкурентов, мы снова добились наибольшего роста продаж крепких напитков в США среди крупных пивоваров, а наша экспансия за пределы пива продолжала опережать наш целевой показатель выручки в 1 миллиард долларов. Все это стало факторами, обеспечившими не просто успешный квартал, но и самый высокий квартальный рост выручки этой компании за последние более чем десять лет".
Трейси Жубер, Финансовый директор Заявление:
“У нас был сильный первый квартал, обеспечивший двузначный рост прибыли и прибыли на основе ОПБУ США и трехзначный рост прибыли на базовой основе. Наши показатели улучшились благодаря высокому соотношению цен и продаж, а также нашим усилиям по смягчению сложных инфляционных условий при одновременном увеличении инвестиций в наши основные бренды и ключевые инновации. В соответствии с нашим планом активизации мы заложили прочный фундамент для будущего роста, который позволил нам справиться с трудными временами. Это дает нам уверенность в том, что мы подтвердим наши рекомендации по росту прибыли и прибыли на 2022 год".
CONSOLIDATED PERFORMANCE - FIRST QUARTER 2022 |
|||||||||||||||
|
For the Three Months Ended |
|
|||||||||||||
($ in millions, except per share data) (Unaudited) |
March 31,
|
|
March 31,
|
|
Reported
|
|
Foreign
|
|
Constant
|
||||||
Net sales |
$ |
2,214.6 |
|
$ |
1,898.4 |
|
16.7 |
% |
|
$ |
(17.2 |
) |
|
17.6 |
% |
U.S. GAAP Income (loss) before income taxes |
$ |
173.7 |
|
$ |
126.3 |
|
37.5 |
% |
|
$ |
(0.4 |
) |
|
37.8 |
% |
Underlying Income (loss) before income taxes(1) |
$ |
83.5 |
|
$ |
17.2 |
|
N/M |
|
|
$ |
0.4 |
|
|
N/M |
|
U.S. GAAP Net income (loss)(2) |
$ |
151.5 |
|
$ |
84.1 |
|
80.1 |
% |
|
|
|
|
|||
Per diluted share |
$ |
0.70 |
|
$ |
0.39 |
|
79.5 |
% |
|
|
|
|
|||
Underlying Net income (loss)(1) |
$ |
63.8 |
|
$ |
1.6 |
|
N/M |
|
|
|
|
|
|||
Per diluted share |
$ |
0.29 |
|
$ |
0.01 |
|
N/M |
|
|
|
|
|
N/M = Not meaningful | ||
(1) |
Represents income (loss) before income taxes and net income (loss) attributable to MCBC adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. |
|
(2) |
Net income (loss) attributable to MCBC. |
NET SALES DRIVERS |
|||||||||||||||||
|
For the Three Months Ended March 31, 2022 |
||||||||||||||||
|
Reported |
|
|
||||||||||||||
Percent change versus comparable prior year period |
Financial
|
|
Price and
|
|
Currency |
|
Net Sales |
|
Net Sales per
|
|
Brand Volume |
||||||
Consolidated |
5.1 |
% |
|
12.5 |
% |
|
(0.9 |
) % |
|
16.7 |
% |
|
10.2 |
% |
|
1.7 |
% |
Americas |
(0.8 |
) % |
|
9.4 |
% |
|
(0.1 |
) % |
|
8.5 |
% |
|
9.8 |
% |
|
(3.1 |
) % |
EMEA&APAC |
29.4 |
% |
|
62.9 |
% |
|
(8.1 |
) % |
|
84.2 |
% |
|
30.1 |
% |
|
19.8 |
% |
(1) |
Our net sales per hectoliter performance discussions are presented on a brand volume ("BV") basis, which reflects owned or actively managed brand volume, along with royalty volume, in the denominator, as well as the financial impact of these sales (in constant currency) in the numerator, unless otherwise indicated. |
квартальные консолидированные основные показатели (по сравнению с результатами первого квартала 2021 года)
основные показатели квартального сегмента (по сравнению с результатами первого квартала 2021 года)
Сегмент Северной и Южной Америки
Сегмент EMEA и APAC
основные моменты движения денежных средств и ликвидности
Tax Rates Table |
|||||
(Unaudited) |
For the Three Months Ended |
||||
|
March 31, 2022 |
|
March 31, 2021 |
||
U.S. GAAP effective tax rate |
21 |
% |
|
35 |
% |
Underlying effective tax rate(1) |
26 |
% |
|
103 |
% |
(1) |
See Appendix for definitions and reconciliations of non-GAAP financial measures. |
Специальные и другие неосновные статьи
Следующие специальные и другие неосновные статьи были исключены из базовых результатов. См. Приложение для выверки финансовых показателей, не относящихся к GAAP.
Мы по-прежнему ожидаем достижения следующих целей на весь 2022 год. Однако присущая макроэкономической среде неопределенность, включая значительную инфляцию расходов, масштабы и продолжительность продолжающихся коллективных переговоров в Квебеке и связанной с ними забастовки, а также продолжающаяся пандемия коронавируса могут повлиять на наши финансовые показатели.
Мы погасили наши облигации на сумму 500 миллионов долларов США под 3,5% годовых после их погашения 1 мая 2022 года, используя комбинацию заимствований из коммерческих бумаг и наличных денег.
Если в этом выпуске не указано иное, все суммы в долларах США указаны в долларах США, а все квартальные сравнительные результаты относятся к первому кварталу Компании, закончившемуся 31 марта 2022 года, по сравнению с первым кварталом, закончившимся 31 марта 2021 года. Некоторые числа могут не суммироваться из-за округления.
телефонная конференция инвесторов за первый квартал 2022 года
Компания Molson Coors Beverage проведет телефонную конференцию с финансовыми аналитиками и инвесторами сегодня в 11:00 утра по восточному времени, чтобы обсудить результаты Компании за первый квартал 2022 года. Прямая трансляция будет доступна через наш веб-сайт, ir.molsoncoors.com . Онлайн-трансляция веб-трансляции будет доступна до 11:59 вечера по восточному времени 1 августа 2022 года. Компания опубликует этот релиз и соответствующие финансовые отчеты на своем веб-сайте сегодня.
обзор компании Molson Coors Beverage
Уже более двух столетий компания Molson Coors Beverage занимается производством напитков, которые объединяют людей на все моменты жизни. От Coors Light, Miller Lite, Molson Canadian, Carling и Staropramen до Coors Banquet, Blue Moon Belgian White, Blue Moon LightSky, Vizzy, Coors Seltzer, Leinenkugel's Summer Shandy, Creemore Springs, Hop Valley и многих других, Molson Coors производит множество любимых и культовых брендов пива. В то время как история компании уходит корнями в пиво, Molson Coors предлагает современное портфолио, которое выходит и за рамки пивного сегмента.
Наши отчетные сегменты включают: страны Северной и Южной Америки, работающие в США, Канаде и различных странах Карибского бассейна, Латинской и Южной Америки; и регион EMEA&APAC, работающие в Болгарии, Хорватии, Чехии, Венгрии, Черногории, Республике Ирландия, Румынии, Сербии, Великобритании, различных других европейских странах и некоторые страны Ближнего Востока, Африки и Азиатско-Тихоокеанского региона. В дополнение к нашим отчетным сегментам у нас также есть определенные статьи, которые не распределены по нашим отчетным сегментам и указаны как "Нераспределенные", которые в первую очередь включают расходы, связанные с финансированием, и последствия других видов деятельности, связанных с казначейством. Наша Экологическая, социальная и управленческая стратегия ("ESG") ориентирована на людей и Планету с твердой приверженностью повышению отраслевых стандартов и оставляет положительный отпечаток на наших сотрудниках, потребителях, сообществах и окружающей среде. Чтобы узнать больше о компании Molson Coors Beverage, посетите molsoncoors.com , MolsonCoorsOurImprint.com или в Твиттере через @MolsonCoors.
о компании molson coors canada inc.
Molson Coors Canada Inc. (MCCI) является дочерней компанией компании Molson Coors Beverage. Обмениваемые акции MCCI класса A и класса B предлагают практически те же экономические права и права голоса, что и соответствующие классы обыкновенных акций MCBC, как описано в годовом доверенном заявлении MCBC и форме 10-K, поданной в Комиссию по ценным бумагам и биржам США. Доверительный управляющий, владелец специальных голосующих акций класса А и специальных голосующих акций класса В, имеет право отдать количество голосов, равное количеству находящихся в обращении на тот момент обменных акций класса А и обменных акций класса В соответственно.
прогнозные заявления
Настоящий пресс-релиз содержит “прогнозные заявления” по смыслу федеральных законов США о ценных бумагах. Как правило, слова "ожидает", "намеревается", "цели", "планирует", "полагает", "продолжает", "может", "предвидеть", "стремиться", "оценивать", "перспективы", "тенденции", "будущие выгоды", "потенциал," "проекты", "стратегии" и варианты таких слов и подобных выражений предназначены для обозначения прогнозных заявлений. Заявления, которые касаются прогнозов наших будущих финансовых показателей, нашего ожидаемого роста и тенденций в нашем бизнесе, а также других характеристик будущих событий или обстоятельств, являются заявлениями прогнозного характера и включают, но не ограничиваются ими, заявления под заголовком "Прогноз на 2022 год" в отношении ожиданий относительно влияния пандемия коронавируса на нашу деятельность, ликвидность, финансовое состояние и финансовые результаты, ожидания относительно будущих дивидендов, общие тенденции объема, потребительские предпочтения, тенденции ценообразования, отраслевые силы, стратегии сокращения затрат, включая наш план активизации, ожидания инфляции затрат, ожидаемые результаты, ожидания финансирования будущих капитальных затрат и операций, долг возможности обслуживания, сроки и объемы задолженности и уровни левереджа, объемы поставок и прибыльность, доля рынка и достаточность капитальных ресурсов. Хотя Компания считает, что допущения, на которых основаны ее прогнозные заявления, являются разумными, она не может дать никаких гарантий в том, что эти допущения окажутся правильными. Важные факторы, которые могут привести к тому, что фактические результаты могут существенно отличаться от исторического опыта Компании, а также нынешние прогнозы и ожидания раскрываются в заявках Компании в Комиссию по ценным бумагам и биржам (“SEC”). Эти факторы включают, среди прочего, влияние коронавируса пандемией; влияние усиление конкуренции в результате дальнейшей консолидации Пивоваров; конкурентные цены и товара давления; здоровье пивной отрасли и наших брендов на рынках; экономические условия в наши рынки, наши возможности для поддержания бренда имидж, репутация и качество продукции; вопросы ЭСУ; воздействие изменения климата и наличия и качества водных ресурсов; утрату или закрытие крупной пивоварни или иных ключевых объектов; наша способность поддерживать хорошие трудовых отношений; забастовки, стачки и других работников, связанных с вопросами; нашу зависимость от сторонних поставщиков услуг и внутренних и внешних систем; нарушения наших информационных систем; эффективность инвестиций пенсионного плана предприятием и связанные с пенсионным планом расходов; невыполнение долговых обязательств или ухудшения кредитного рейтинга; увеличение стоимости сырьевых товаров, используемых в предпринимательской деятельности; зависимость от глобальной цепочки поставок и последствий ограничений цепочек поставок и инфляционными процессами, в том числе и негативных последствий российско-украинского конфликта; дополнительные расходы на обесценение; расчетные оценки и допущения, на которых наши финансовые прогнозы разрабатываются на основе которых могут оказаться неточными; нам возможность реализовать наши стратегические инициативы, в том числе выполнения и реализации экономии; наличие или увеличение стоимости упаковочных материалов; неблагоприятных юридических или нормативных решений, влияющих на бизнес; риски, связанные с деятельностью в развивающихся и развивающихся рынках; изменения в законодательных и нормативных требований, в том числе регулирование системы распределения; колебания валютных курсов; успех наших совместных предприятий; и другие риски обсудили в наш заявок в SEC, в том нашем последнем годовом отчете по форме 10-К и квартальные отчеты по форме 10-Q. Все прогнозные заявления в этом пресс-релизе прямо квалифицируются такими предостерегающими заявлениями и ссылкой на лежащие в их основе предположения. Вы не должны чрезмерно полагаться на прогнозные заявления, которые действуют только на дату их составления. Мы не берем на себя обязательство обновлять прогнозные заявления, будь то в результате новой информации, будущих событий или иным образом, за исключением случаев, предусмотренных законом.
рыночные и отраслевые данные
Рыночные и отраслевые данные, используемые, если таковые имеются, в этом пресс-релизе, основаны на независимых отраслевых публикациях, данных о конкретных клиентах, торговых или коммерческих организациях, отчетах фирм, занимающихся исследованиями рынка, и другой опубликованной статистической информации от третьих сторон, включая Information Resources, Inc. для данных о рынке США и Beer Canada для канадского рынка данные (совместно именуемые “Информация третьей стороны”), а также информация, основанная на добросовестных оценках руководства, которые мы получаем из нашего анализа внутренней информации и независимых источников. В такой информации третьих лиц обычно указывается, что информация, содержащаяся в ней или предоставленная такими источниками, была получена из источников, которые считаются надежными.
STATEMENTS OF OPERATIONS - Molson Coors Beverage COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Statements of Operations |
|||||||
(In millions, except per share data) (Unaudited) |
For the Three Months Ended |
||||||
|
March 31, 2022 |
|
March 31,
|
||||
Sales |
$ |
2,643.3 |
|
|
$ |
2,256.1 |
|
Excise taxes |
|
(428.7 |
) |
|
|
(357.7 |
) |
Net sales |
|
2,214.6 |
|
|
|
1,898.4 |
|
Cost of goods sold |
|
(1,286.8 |
) |
|
|
(1,167.4 |
) |
Gross profit |
|
927.8 |
|
|
|
731.0 |
|
Marketing, general and administrative expenses |
|
(675.7 |
) |
|
|
(542.9 |
) |
Special items, net |
|
(27.6 |
) |
|
|
(10.9 |
) |
Equity income (loss) |
|
(0.1 |
) |
|
|
— |
|
Operating income (loss) |
|
224.4 |
|
|
|
177.2 |
|
Interest income (expense), net |
|
(63.3 |
) |
|
|
(65.3 |
) |
Other pension and postretirement benefits (costs), net |
|
10.6 |
|
|
|
13.0 |
|
Other income (expense), net |
|
2.0 |
|
|
|
1.4 |
|
Income (loss) before income taxes |
|
173.7 |
|
|
|
126.3 |
|
Income tax benefit (expense) |
|
(36.4 |
) |
|
|
(44.3 |
) |
Net income (loss) |
|
137.3 |
|
|
|
82.0 |
|
Net (income) loss attributable to noncontrolling interests |
|
14.2 |
|
|
|
2.1 |
|
Net income (loss) attributable to MCBC |
$ |
151.5 |
|
|
$ |
84.1 |
|
|
|
|
|
||||
Basic net income (loss) attributable to MCBC per share |
$ |
0.70 |
|
|
$ |
0.39 |
|
Diluted net income (loss) attributable to MCBC per share |
$ |
0.70 |
|
|
$ |
0.39 |
|
|
|
|
|
||||
Weighted average shares outstanding - basic |
|
217.2 |
|
|
|
217.0 |
|
Weighted average shares outstanding - diluted |
|
217.8 |
|
|
|
217.4 |
|
|
|
|
|
||||
Dividends per share |
$ |
0.38 |
|
|
$ |
— |
|
|
|
|
|
BALANCE SHEETS - Molson Coors Beverage COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(In millions, except par value) (Unaudited) |
As of |
||||||
|
March 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
358.7 |
|
|
$ |
637.4 |
|
Accounts receivable, net |
|
761.2 |
|
|
|
678.9 |
|
Other receivables, net |
|
207.3 |
|
|
|
200.5 |
|
Inventories, net |
|
935.8 |
|
|
|
804.7 |
|
Other current assets, net |
|
607.6 |
|
|
|
457.2 |
|
Total current assets |
|
2,870.6 |
|
|
|
2,778.7 |
|
Properties, net |
|
4,210.5 |
|
|
|
4,192.4 |
|
Goodwill |
|
6,155.0 |
|
|
|
6,152.6 |
|
Other intangibles, net |
|
13,221.8 |
|
|
|
13,286.8 |
|
Other assets |
|
1,263.6 |
|
|
|
1,208.5 |
|
Total assets |
$ |
27,721.5 |
|
|
$ |
27,619.0 |
|
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and other current liabilities |
$ |
2,873.4 |
|
|
$ |
3,107.3 |
|
Current portion of long-term debt and short-term borrowings |
|
681.9 |
|
|
|
514.9 |
|
Total current liabilities |
|
3,555.3 |
|
|
|
3,622.2 |
|
Long-term debt |
|
6,631.5 |
|
|
|
6,647.2 |
|
Pension and postretirement benefits |
|
649.9 |
|
|
|
654.4 |
|
Deferred tax liabilities |
|
2,776.6 |
|
|
|
2,704.6 |
|
Other liabilities |
|
337.7 |
|
|
|
326.5 |
|
Total liabilities |
|
13,951.0 |
|
|
|
13,954.9 |
|
Molson Coors Beverage Company stockholders' equity |
|
|
|
||||
Capital stock |
|
|
|
||||
Preferred stock, $0.01 par value (authorized: 25.0 shares; none issued) |
|
— |
|
|
|
— |
|
Class A common stock, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares, respectively) |
|
— |
|
|
|
— |
|
Class B common stock, $0.01 par value (authorized: 500.0 shares; issued: 210.3 shares and 210.1 shares, respectively) |
|
2.1 |
|
|
|
2.1 |
|
Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively) |
|
102.2 |
|
|
|
102.2 |
|
Class B exchangeable shares, no par value (issued and outstanding: 11.1 shares and 11.1 shares, respectively) |
|
417.2 |
|
|
|
417.8 |
|
Paid-in capital |
|
6,975.6 |
|
|
|
6,970.9 |
|
Retained earnings |
|
7,469.8 |
|
|
|
7,401.5 |
|
Accumulated other comprehensive income (loss) |
|
(949.6 |
) |
|
|
(1,006.0 |
) |
Class B common stock held in treasury at cost (9.7 shares and 9.5 shares, respectively) |
|
(485.5 |
) |
|
|
(471.4 |
) |
Total Molson Coors Beverage Company stockholders' equity |
|
13,531.8 |
|
|
|
13,417.1 |
|
Noncontrolling interests |
|
238.7 |
|
|
|
247.0 |
|
Total equity |
|
13,770.5 |
|
|
|
13,664.1 |
|
Total liabilities and equity |
$ |
27,721.5 |
|
|
$ |
27,619.0 |
|
|
|
|
|
CASH FLOW STATEMENTS - Molson Coors Beverage COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(In millions) (Unaudited) |
For the Three Months Ended |
||||||
|
March 31,
|
|
March 31,
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) including noncontrolling interests |
$ |
137.3 |
|
|
$ |
82.0 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
||||
Depreciation and amortization |
|
173.7 |
|
|
|
202.3 |
|
Amortization of debt issuance costs and discounts |
|
1.6 |
|
|
|
1.8 |
|
Share-based compensation |
|
8.5 |
|
|
|
8.3 |
|
(Gain) loss on sale or impairment of properties and other assets, net |
|
22.4 |
|
|
|
2.8 |
|
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net |
|
(169.6 |
) |
|
|
(122.6 |
) |
Equity (income) loss |
|
0.1 |
|
|
|
— |
|
Income tax (benefit) expense |
|
36.4 |
|
|
|
44.3 |
|
Income tax (paid) received |
|
(3.1 |
) |
|
|
(9.1 |
) |
Interest expense, excluding amortization of debt issuance costs and discounts |
|
62.2 |
|
|
|
64.1 |
|
Interest paid |
|
(81.2 |
) |
|
|
(86.6 |
) |
Change in current assets and liabilities and other |
|
(307.6 |
) |
|
|
(378.2 |
) |
Net cash provided by (used in) operating activities |
|
(119.3 |
) |
|
|
(190.9 |
) |
Cash flows from investing activities: |
|
|
|
||||
Additions to properties |
|
(243.8 |
) |
|
|
(102.5 |
) |
Proceeds from sales of properties and other assets |
|
13.2 |
|
|
|
1.1 |
|
Other |
|
4.4 |
|
|
|
16.8 |
|
Net cash provided by (used in) investing activities |
|
(226.2 |
) |
|
|
(84.6 |
) |
Cash flows from financing activities: |
|
|
|
||||
Exercise of stock options under equity compensation plans |
|
0.9 |
|
|
|
4.5 |
|
Dividends paid |
|
(82.4 |
) |
|
|
— |
|
Payments on debt and borrowings |
|
(1.1 |
) |
|
|
(0.9 |
) |
Proceeds on debt and borrowings |
|
5.0 |
|
|
|
— |
|
Purchases of treasury stock |
|
(14.1 |
) |
|
|
— |
|
Net proceeds from (payments on) revolving credit facilities and commercial paper |
|
156.3 |
|
|
|
0.5 |
|
Change in overdraft balances and other |
|
7.9 |
|
|
|
40.9 |
|
Net cash provided by (used in) financing activities |
|
72.5 |
|
|
|
45.0 |
|
Cash and cash equivalents |
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
(273.0 |
) |
|
|
(230.5 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
|
(5.7 |
) |
|
|
(6.9 |
) |
Balance at beginning of year |
|
637.4 |
|
|
|
770.1 |
|
Balance at end of period |
$ |
358.7 |
|
|
$ |
532.7 |
|
|
|
|
|
SUMMARIZED SEGMENT RESULTS (volume and $ in millions) (Unaudited) |
|||||||||||||
Americas |
Q1 2022 |
Q1 2021 |
Reported
|
FX
|
Constant
|
||||||||
Net sales(1) |
$ |
1,836.2 |
|
$ |
1,692.0 |
|
8.5 |
|
$ |
(0.5 |
) |
8.6 |
|
Income (loss) before income taxes |
$ |
87.1 |
|
$ |
144.2 |
|
(39.6 |
) |
$ |
1.0 |
|
(40.3 |
) |
Underlying income (loss) before income taxes |
$ |
166.7 |
|
$ |
152.2 |
|
9.5 |
|
$ |
0.8 |
|
9.0 |
|
Financial volume(1)(2) |
|
12.999 |
|
|
13.102 |
|
(0.8 |
) |
|
|
|||
Brand volume |
|
12.436 |
|
|
12.831 |
|
(3.1 |
) |
|
|
|||
|
|
|
|
|
|
||||||||
EMEA&APAC |
Q1 2022 |
Q1 2021 |
Reported
|
FX
|
Constant
|
||||||||
Net sales(1) |
$ |
381.2 |
|
$ |
206.9 |
|
84.2 |
|
$ |
(16.7 |
) |
92.3 |
|
Income (loss) before income taxes |
$ |
(32.2 |
) |
$ |
(89.4 |
) |
64.0 |
|
$ |
1.0 |
|
62.9 |
|
Underlying income (loss) before income taxes |
$ |
(31.2 |
) |
$ |
(85.0 |
) |
63.3 |
|
$ |
1.0 |
|
62.1 |
|
Financial volume(1)(2) |
|
4.039 |
|
|
3.122 |
|
29.4 |
|
|
|
|||
Brand volume |
|
4.095 |
|
|
3.417 |
|
19.8 |
|
|
|
|||
|
|
|
|
|
|
||||||||
Unallocated & Eliminations |
Q1 2022 |
Q1 2021 |
Reported
|
FX
|
Constant
|
||||||||
Net Sales |
$ |
(2.8 |
) |
$ |
(0.5 |
) |
N/M |
|
|
|
|||
Income (loss) before income taxes |
$ |
118.8 |
|
$ |
71.5 |
|
66.2 |
|
$ |
(2.4 |
) |
69.5 |
|
Underlying income (loss) before income taxes |
$ |
(52.0 |
) |
$ |
(50.0 |
) |
4.0 |
|
$ |
(1.4 |
) |
1.2 |
|
Financial volume(2) |
|
(0.001 |
) |
|
(0.007 |
) |
(85.7 |
) |
|
|
|||
|
|
|
|
|
|
||||||||
Consolidated |
Q1 2022 |
Q1 2021 |
Reported
|
FX
|
Constant
|
||||||||
Net sales |
$ |
2,214.6 |
|
$ |
1,898.4 |
|
16.7 |
|
$ |
(17.2 |
) |
17.6 |
|
COGS |
$ |
(1,286.8 |
) |
$ |
(1,167.4 |
) |
10.2 |
|
$ |
11.3 |
|
11.2 |
|
MG&A |
$ |
(675.7 |
) |
$ |
(542.9 |
) |
24.5 |
|
$ |
6.2 |
|
25.6 |
|
Income (loss) before income taxes |
$ |
173.7 |
|
$ |
126.3 |
|
37.5 |
|
$ |
(0.4 |
) |
37.8 |
|
Underlying income (loss) before income taxes |
$ |
83.5 |
|
$ |
17.2 |
|
N/M |
|
$ |
0.4 |
|
N/M |
|
Financial volume(2) |
|
17.037 |
|
|
16.217 |
|
5.1 |
|
|
|
|||
Brand volume |
|
16.531 |
|
|
16.248 |
|
1.7 |
|
|
|
|||
|
|
|
|
|
|
The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable. | ||
N/M = Not meaningful | ||
(1) |
Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals. The unrealized changes in fair value on our commodity swaps, which are economic hedges, are recorded as cost of goods sold within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. |
|
(2) |
Financial volume in hectoliters for Americas and EMEA&APAC excludes royalty volume of 0.601 million hectoliters and 0.319 million hectoliters for the three months ended March 31, 2022, respectively, and excludes royalty volume of 0.567 million hectoliters and 0.359 million hectoliters for three months ended March 31, 2021, respectively. |
WORLDWIDE BRAND AND FINANCIAL VOLUME |
||||||||
(In millions of hectoliters) (Unaudited) |
For the Three Months Ended |
|||||||
|
March 31, 2022 |
|
March 31, 2021 |
|
Change |
|||
Financial Volume |
17.037 |
|
|
16.217 |
|
|
5.1 |
% |
Contract brewing and wholesale/factored volume |
(1.502 |
) |
|
(1.238 |
) |
|
21.3 |
% |
Royalty volume |
0.920 |
|
|
0.926 |
|
|
(0.6 |
) % |
Sales-To-Wholesaler to Sales-To-Retail adjustment |
0.076 |
|
|
0.343 |
|
|
(77.8 |
) % |
Total Worldwide Brand Volume |
16.531 |
|
|
16.248 |
|
|
1.7 |
% |
|
|
|
|
|
|
Мировой объем бренда (или "объем бренда", когда обсуждается по сегментам) отражает принадлежащие или активно управляемые бренды, проданные несвязанным внешним клиентам на наших географических рынках (за вычетом доходов и надбавок), объем роялти и нашу пропорциональную долю инвестиций в акционерный капитал мировой объем бренда, рассчитанный в соответствии с объемом, принадлежащим MCBC. Финансовый объем представляет собой принадлежащие бренды, проданные несвязанным внешним клиентам на наших географических рынках, за вычетом возвратов и надбавок, а также контрактного пивоварения, оптового объема, не принадлежащего бренду, и объема дистрибуции, принадлежащего компании. Контрактный пивоваренный и оптовый / учитываемый объем включен в финансовый объем, но исключен из объема мирового бренда, поскольку это не принадлежащий нам объем, для которого мы напрямую не контролируем производительность. Учитываемый объем в нашем сегменте EMEA и APAC - это распределение пива, вина, спиртных напитков и других продуктов, принадлежащих и производимых другими компаниями, по локальному каналу, что является обычной процедурой в Великобритании. Объем роялти состоит из наших брендов, произведенных и проданных третьими сторонами по различным лицензиям и контрактам - пивоварение соглашения, и поскольку это собственный объем, он включен в объем мирового бренда. Наше определение объема продаж бренда по всему миру также включает корректировку с объема продаж оптовым торговцам (STW) на объем продаж розничным торговцам (STR). Мы считаем, что показатель объема продаж бренда важен, поскольку, в отличие от финансового объема и STWS, он дает наиболее точное представление о производительности наших брендов по отношению к тенденциям продаж на рынке и у конкурентов.
В рамках стратегии плана активизации, направленной на расширение нашего портфеля продуктов премиум-класса и выход за рамки пивного сегмента, мы изменили приоритеты и рационализировали некоторые непрофильные товары эконом-класса. Эта стратегия направлена на обеспечение устойчивого роста чистых продаж и прибыли, несмотря на потенциальное снижение объемов, поскольку структура портфеля смещается в сторону увеличения доли продуктов премиум-класса.
использование показателей, не относящихся к gaap
В дополнение к финансовым показателям, представленным на основе принципов бухгалтерского учета, общепринятых в США (“ОПБУ США”), мы также используем финансовые показатели, не относящиеся к ОПБУ, как указано и определено ниже, для принятия операционных и финансовых решений, а также для оценки эффективности бизнеса Компании и сегмента. Эти показатели, не относящиеся к ОПБУ, следует рассматривать как дополнение (а не замену) к нашим результатам деятельности, представленным в соответствии с ОПБУ США. Мы обеспечили сверку всех исторических показателей, не относящихся к GAAP, с их ближайшим показателем по ОПБУ США и последовательно применяли корректировки в рамках наших выверок при расчете каждого показателя, не относящегося к GAAP.
Наше руководство использует эти показатели, чтобы помочь в сравнении результатов деятельности от периода к периоду на постоянной основе; в качестве меры для планирования и прогнозирования общих ожиданий и для оценки фактических результатов в соответствии с такими ожиданиями; в общении с советом директоров, акционерами, аналитиками и инвесторами относительно наших финансовых показателей; в качестве полезных сравнений с производительность наших конкурентов; и в качестве показателей для определенных расчетов вознаграждения за стимулирование руководства. Мы считаем, что эти показатели используются и полезны инвесторам и другим пользователям нашей финансовой отчетности при оценке наших операционных показателей.
Наши рекомендации по любым из указанных выше мер также являются финансовыми показателями, не относящимися к ОПБУ, которые исключают или иным образом были скорректированы с учетом специальных статей из нашей финансовой отчетности по ОПБУ США, а также других непрофильных статей, как описано выше. Когда мы предоставляем рекомендации по любому из различных показателей, не относящихся к GAAP, описанных выше, мы не предоставляем сверки показателей GAAP США, поскольку мы не можем с достаточной степенью уверенности предсказать фактическое влияние специальных и других непрофильных статей. По самой своей природе специальные и другие непрофильные статьи трудно предвидеть с точностью, поскольку они обычно связаны с неожиданными и незапланированными событиями, которые влияют на нашу компанию и ее финансовые результаты. Поэтому мы не в состоянии обеспечить согласование этих мер без необоснованных усилий.
RECONCILIATION TO NEAREST U.S. GAAP MEASURES |
||||||||||||||||||
Reconciliation by Line Item |
||||||||||||||||||
(In millions, except per share data) (Unaudited) |
|
|||||||||||||||||
|
Cost of
|
Marketing,
|
Other
|
Income
|
Net income
|
Net income
|
||||||||||||
Reported (U.S. GAAP) |
$ |
(1,286.8 |
) |
$ |
(675.7 |
) |
$ |
2.0 |
|
$ |
173.7 |
|
$ |
151.5 |
|
$ |
0.70 |
|
Adjustments to arrive at underlying: |
|
|
|
|
|
|
||||||||||||
Special items, net |
|
|
|
|
|
|
||||||||||||
Employee-related charges |
|
— |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
0.3 |
|
|
— |
|
Impairments or asset abandonment charges(1) |
|
— |
|
|
— |
|
|
— |
|
|
29.6 |
|
|
17.5 |
|
|
0.08 |
|
Termination fees and other (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
(2.3 |
) |
|
(2.3 |
) |
|
(0.01 |
) |
Non-Core items |
|
|
|
|
|
|
||||||||||||
Unrealized mark-to-market (gains) losses |
|
(170.8 |
) |
|
— |
|
|
— |
|
|
(170.8 |
) |
|
(170.8 |
) |
|
(0.78 |
) |
Other non-core items(2) |
|
— |
|
|
56.0 |
|
|
(3.0 |
) |
|
53.0 |
|
|
53.0 |
|
|
0.24 |
|
Total Special and Other Non-Core items |
$ |
(170.8 |
) |
$ |
56.0 |
|
$ |
(3.0 |
) |
$ |
(90.2 |
) |
$ |
(102.3 |
) |
$ |
(0.47 |
) |
Tax effects on special and other non-core items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
19.7 |
|
|
0.09 |
|
Discrete tax items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5.1 |
) |
|
(0.02 |
) |
Underlying (Non-GAAP) |
$ |
(1,457.6 |
) |
$ |
(619.7 |
) |
$ |
(1.0 |
) |
$ |
83.5 |
|
$ |
63.8 |
|
$ |
0.29 |
|
|
|
|
|
|
|
|
(1) |
During the three months ended March 31, 2022, we identified a triggering event related to the Truss LP joint venture asset group within our Americas segment and recognized an impairment loss of $28.6 million, of which $12.1 million was attributable to the noncontrolling interest. |
|
(2) |
During the three months ended March 31, 2022, we recorded an accrued liability of $56 million within MG&A related to potential losses as a result of the ongoing Keystone litigation case. |
Reconciliation to Underlying Income (Loss) Before Income Taxes by Segment |
||||||||||||||
(In millions) (Unaudited) |
For the Three Months Ended March 31, 2022 |
|||||||||||||
|
Americas |
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
|||||||
Income (loss) before income taxes |
$ |
87.1 |
|
$ |
(32.2 |
) |
|
$ |
118.8 |
|
|
$ |
173.7 |
|
Add/(less): |
|
|
|
|
|
|
|
|||||||
Special items, net |
|
26.6 |
|
|
1.0 |
|
|
|
— |
|
|
|
27.6 |
|
Other non-core items |
|
53.0 |
|
|
— |
|
|
|
(170.8 |
) |
|
|
(117.8 |
) |
Total Special and other Non-Core items |
$ |
79.6 |
|
$ |
1.0 |
|
|
$ |
(170.8 |
) |
|
$ |
(90.2 |
) |
Underlying income (loss) before income taxes |
$ |
166.7 |
|
$ |
(31.2 |
) |
|
$ |
(52.0 |
) |
|
$ |
83.5 |
|
|
|
|
|
|
|
|
|
Effective Tax Rate Reconciliation |
|||||
(Unaudited) |
For the Three Months Ended |
||||
|
March 31, 2022 |
|
March 31, 2021 |
||
GAAP Effective Tax Rate |
21 |
% |
|
35 |
% |
Add/(less):(1) |
|
|
|
||
Tax effect of special and other non-core items(2) |
2 |
% |
|
71 |
% |
Discrete and other non-core tax items(3) |
3 |
% |
|
(3 |
%) |
Underlying (Non-GAAP) Effective Tax Rate |
26 |
% |
|
103 |
% |
|
|
|
|
(1) |
Adjustments related to the tax effect of special items, net and non-core items as well as certain discrete tax items excluded from our underlying effective tax rate. Discrete and other non-core tax items include significant tax audit and prior year reserve adjustments, impact of significant tax legislation and tax rate changes and significant non-recurring and period specific tax items. |
|
(2) |
The decrease in the tax effect of special and other non-core items is primarily due to higher underlying income before income taxes in the first quarter of 2022 compared to prior year. For the three months ended March 31, 2021, there was a disproportionate impact from the discrete tax expense recorded during the first quarter on our underlying effective tax rate due to the significantly lower underlying income before income taxes for the first quarter of 2021. |
|
(3) |
The increase in discrete and other non-core tax expense in 2022 compared to the decrease in 2021 is primarily due to the removal of other non-core tax benefits in 2022 as compared to the removal of other non-core tax expense in 2021. |
Underlying Free Cash Flow |
||||||||
(In millions) (Unaudited) |
For the Three Months Ended |
|||||||
|
|
March 31, 2022 |
|
March 31, 2021 |
||||
U.S. GAAP: |
Net Cash Provided by (Used In) Operating Activities |
$ |
(119.3 |
) |
|
$ |
(190.9 |
) |
Less: |
Additions to properties(1) |
|
(243.8 |
) |
|
|
(102.5 |
) |
Add/Less: |
Cash impact of special items(2) |
|
4.3 |
|
|
|
12.4 |
|
Add/Less: |
Cash impact of other non-core items(3) |
|
— |
|
|
|
10.2 |
|
Non-GAAP: |
Underlying Free Cash Flow |
$ |
(358.8 |
) |
|
$ |
(270.8 |
) |
|
|
|
|
|
(1) |
Included in net cash provided by (used in) investing activities. |
|
(2) |
Included in net cash provided by (used in) operating activities and primarily reflects costs paid for restructuring activities for the three months ended March 31, 2022 and March 31, 2021. |
|
(3) |
Included in net cash provided by (used in) operating activities and primarily reflects costs paid for the cybersecurity incident, net of insurance recoveries, in the Americas segment for the three months ended March 31, 2021. |
Net Debt to Underlying EBITDA Ratio |
|||||
(In millions) (Unaudited) |
As of |
||||
|
|
March 31, 2022 |
March 31, 2021 |
||
U.S. GAAP |
Current portion of long-term debt and short-term borrowings |
$ |
681.9 |
$ |
1,063.5 |
Add: |
Long-term debt |
|
6,631.5 |
|
7,181.2 |
Less: |
Cash and cash equivalents |
|
358.7 |
|
532.7 |
|
Net debt |
$ |
6,954.7 |
$ |
7,712.0 |
|
Q1 Underlying EBITDA |
|
320.5 |
|
280.0 |
|
Q4 Underlying EBITDA |
|
457.3 |
|
375.1 |
|
Q3 Underlying EBITDA |
|
642.6 |
|
712.5 |
|
Q2 Underlying EBITDA |
|
697.8 |
|
692.3 |
Non-GAAP |
Underlying EBITDA(1) |
$ |
2,118.2 |
$ |
2,059.9 |
|
Net debt to underlying EBITDA ratio |
|
3.28 |
|
3.74 |
|
|
|
|
(1) |
Represents underlying EBITDA on a trailing twelve month basis. |
Underlying EBITDA Reconciliation |
||||||
(In millions) (Unaudited) |
For the Three Months Ended |
|||||
|
March 31, 2022 |
March 31, 2021 |
||||
|
|
|
||||
U.S. GAAP: Net income (loss) attributable to MCBC |
$ |
151.5 |
|
$ |
84.1 |
|
Add: Net income (loss) attributable to noncontrolling interests |
|
(14.2 |
) |
|
(2.1 |
) |
U.S. GAAP: Net income (loss) |
|
137.3 |
|
|
82.0 |
|
Add: Interest expense (income), net |
|
63.3 |
|
|
65.3 |
|
Add: Income tax expense (benefit) |
|
36.4 |
|
|
44.3 |
|
Add: Depreciation and amortization |
|
173.7 |
|
|
202.3 |
|
Adjustments included in underlying income(1) |
|
(90.2 |
) |
|
(109.1 |
) |
Adjustments to arrive at underlying EBITDA(1) |
|
— |
|
|
(4.8 |
) |
Non-GAAP Underlying EBITDA |
$ |
320.5 |
|
$ |
280.0 |
|
|
|
|
(1) |
Includes adjustments to income (loss) before income taxes related to special and non-core items. See Reconciliations to Nearest U.S. GAAP Measures by Line Item table for detailed adjustments. |