Coca-Cola Bottling Co. Consolidated Reports Fiscal Year and Fourth Quarter 2012 Results

Wed Mar 6, 2013 4:15pm EST

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CHARLOTTE, N.C.--(Business Wire)--
Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) today announced it earned
$27.2 million, or basic net income per share of $2.95, on net sales of $1.61
billion for fiscal 2012, compared to net income of $28.6 million, or basic net
income per share of $3.11, on net sales of $1.56 billion for fiscal 2011. The
results for 2012 included $0.3 million of after-tax gains ($0.5 million on a
pre-tax basis) due to mark-to-market adjustments on commodity hedges and $2.7
million of incremental income tax charges related to an increase in our reserve
for uncertain tax positions and other income tax changes. The results for 2011
included $4.1 million of after-tax losses ($6.8 million on a pre-tax basis) due
to mark-to-market adjustments on commodity hedges and $0.6 million of
incremental income tax charges related to an increase in our reserve for
uncertain tax positions and other income tax changes. 

On a comparable basis, the Company earned $29.6 million in fiscal 2012, or
comparable basic net income per share of $3.21, versus $33.3 million in fiscal
2011, or comparable basic net income per share of $3.62. 

The following table reconciles reported GAAP net income and basic net income per
share to comparable net income and basic net income per share for fiscal 2012
and 2011:

                                                                                                  Fiscal Year                                                           
                                                                                                  Net Income                            Basic Net Income Per            
                                                                                                                                        
Share                          
 In Thousands, Except Per Share Amounts                                                           2012                  2011            2012                    2011    
                                                                                                                                                                        
 Reported net income (GAAP)                                                                       $ 27,217              $ 28,608        $ 2.95                  $ 3.11  
                                                                                                                                                                        
 Net (gain) loss on commodity hedges, net of tax                                                  (304      )           4,146           (0.03   )               0.45    
 Incremental income tax charges related to an                                                                                                                           
 increase in our reserve for uncertain tax positions                                                                                                                    
 and other income tax changes                                                                     2,659                 582             0.29                    0.06    
                                                                                                                                                                        
 Total                                                                                            2,355                 4,728           0.26                    0.51    
                                                                                                                                                                        
 Comparable net income (a)                                                                        $ 29,572              $ 33,336        $ 3.21                  $ 3.62  


(a) This non-GAAP financial information is provided to allow investors to more
clearly evaluate operating performance and business trends on a comparable basis
for fiscal 2012 and 2011. Management uses this information to review results
after excluding items that are not necessarily indicative of ongoing results. 

The Company earned $1.8 million, or basic net income per share of $0.20, on net
sales of $386.7 million in the fourth quarter of 2012, compared to net income of
$1.8 million, or basic net income per share of $0.20, on net sales of $372.9
million in the fourth quarter of 2011. The fourth quarter of 2012 results
included $0.3 million of after-tax losses ($0.5 million on a pre-tax basis) due
to mark-to-market adjustments on commodity hedges and $0.9 million of
incremental income tax charges related to an increase in our reserve for
uncertain tax positions and other income tax changes. The fourth quarter of 2011
results included $1.6 million of after-tax losses ($2.6 million on a pre-tax
basis) due to mark-to-market adjustments on commodity hedges and $1.3 million of
after-tax losses related to other income tax changes. 

On a comparable basis, the Company earned $3.1 million in the fourth quarter of
2012, or comparable basic net income per share of $0.33, versus $4.7 million in
the fourth quarter of 2011, or comparable basic net income per share of $0.51.
The following table reconciles reported GAAP net income and basic net income per
share to comparable net income and basic net income per share for the fourth
quarter of 2012 and 2011:

                                                              Fourth Quarter                                             
                                                              Net Income                   Basic Net Income Per          
                                                                                           
Share                        
 In Thousands, Except Per Share Amounts                       2012           2011          2012                2011      
                                                                                                                         
 Reported net income (GAAP)                                   $ 1,826        $ 1,826       $ 0.20              $ 0.20    
                                                                                                                         
 Net loss on commodity hedges, net of tax                     327            1,583         0.03                0.17      
 Incremental income tax charges related to an                                                                            
 increase in our reserve for uncertain tax positions                                                                     
 and other income tax changes                                 904            1,283         0.10                0.14      
                                                                                                                         
 Total                                                        1,231          2,866         0.13                0.31      
                                                                                                                         
 Comparable net income (a)                                    $ 3,057        $ 4,692       $ 0.33              $ 0.51    


(a) This non-GAAP financial information is provided to allow investors to more
clearly evaluate operating performance and business trends on a comparable basis
for the fourth quarter of 2012 and 2011. Management uses this information to
review results after excluding items that are not necessarily indicative of
ongoing results. 

J. Frank Harrison, III, Chairman and CEO, said, "We are pleased to report
another solid year with over three percent growth in revenue offset by an
increase in operating costs due to investments we made in people and marketing
to support our long-term growth strategy. We are committed to, and focused on,
profitably growing our business." 

Henry W. Flint, President and COO, added, "We are pleased with our results for
2012. Our strong revenue growth was a reflection of our efforts to deliver the
right products to our customers and consumers at attractive price points. Our
overall results for the year were down from 2011 due to increased SD&A costs. We
made significant investments during 2012 in people, marketing and technology to
help us grow both volume and market share in the very competitive marketplace in
which we operate. We continue to innovate and evolve packaging and marketing
strategies to respond to ever-changing consumer tastes." 

Cautionary Information Regarding Forward-Looking Statements

Included in this news release and other information that we make publicly
available from time to time are forward-looking management comments and other
statements that reflect management`s current outlook for future periods.These
statements include, among others, statements regarding our commitment and focus
on profitably growing our business and our plans for continuing to innovate and
evolve packaging and marketing strategies to respond to ever-changing consumer
tastes.

These statements and expectations are based on currently available competitive,
financial and economic data along with our operating plans and are subject to
future events and uncertainties that could cause anticipated events not to occur
or actual results to differ materially from historical or anticipated
results.Among the events or uncertainties which could adversely affect future
periods are: lower than expected selling pricing resulting from increased
marketplace competition; changes in how significant customers market or promote
our products; changes in our top customer relationships; changes in public and
consumer preferences related to nonalcoholic beverages; unfavorable changes in
the general economy; miscalculation of our need for infrastructure investment;
our inability to meet requirements under beverage agreements; material changes
in the performance requirements for marketing funding support or our inability
to meet such requirements; decreases from historic levels of marketing funding
support; changes in The Coca-Cola Company`s and other beverage companies` levels
of advertising, marketing and spending on brand innovation; the inability of our
aluminum can or plastic bottle suppliers to meet our purchase requirements; our
inability to offset higher raw material costs with higher selling prices,
increased bottle/can sales volume or reduced expenses; consolidation of raw
material suppliers could impact our profitability; increased purchases of
finished goods subject us to incremental risks that could impact our
profitability; sustained increases in fuel costs or our inability to secure
adequate supplies of fuel; sustained increases in workers` compensation,
employment practices and vehicle accident claims costs; sustained increases in
the cost of employee benefits; product liability claims or product recalls;
technology failures; changes in interest rates; the impact of debt levels on
operating flexibility and access to capital and credit markets; adverse changes
in our credit rating (whether as a result of our operations or prospects or as a
result of those of The Coca-Cola Company or other bottlers in the Coca-Cola
system); changes in legal contingencies; legislative changes affecting our
distribution and packaging; adoption of significant product labeling or warning
requirements; additional taxes resulting from tax audits; natural disasters and
unfavorable weather; global climate change or legal or regulatory responses to
such change; issues surrounding labor relations; bottler system disputes; our
use of estimates and assumptions; changes in accounting standards; impact of
obesity and health concerns on product demand; public policy challenges
regarding the sale of soft drinks in schools; the impact of volatility in the
financial markets on access to the credit markets; the impact of acquisitions of
bottlers by their franchisors; and the concentration of our capital stock
ownership.The forward-looking statements in this news release should be read in
conjunction with the more detailed descriptions of the above factors located in
our Annual Report on Form 10-K for the year ended January 1, 2012 under Part I,
Item 1A "Risk Factors" as well as those additional factors we may describe from
time to time in other filings with the Securities and Exchange Commission.Except
as required by law, the Company undertakes no obligation to update or revise any
forward-looking statements contained in this release as a result of new
information or future events or developments.

-Enjoy Coca-Cola-

 Coca-Cola Bottling Co. Consolidated                                                                                                              
 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)                                                                                                
 In Thousands (Except Per Share Data)                                                                                                             
                                                                                                                                                  
                                                                                                                                                  
                                                                                        Fourth             Quarter      Fiscal        Year        
                                                                                        2012               2011         2012          2011        
                                                                                                                                                  
 Net sales                                                                              $ 386,700          $ 372,859    $1,614,433    $1,561,239  
 Cost of sales                                                                          232,326            221,066      960,124       931,996     
 Gross margin                                                                           154,374            151,793      654,309       629,243     
 Selling, delivery and administrative expenses                                          140,308            136,826      565,623       541,713     
 Income from operations                                                                 14,066             14,967       88,686        87,530      
 Interest expense, net                                                                  8,155              9,081        35,338        35,979      
 Income before income taxes                                                             5,911              5,886        53,348        51,551      
 Income taxes                                                                           2,661              3,301        21,889        19,528      
 Net income                                                                             3,250              2,585        31,459        32,023      
 Less: Net income attributable to                                                                                                                 
 noncontrolling interest                                                                1,424              759          4,242         3,415       
 Net income attributable to Coca-Cola Bottling Co.                                                                                                
 Consolidated                                                                           $ 1,826            $ 1,826      $ 27,217      $ 28,608    
                                                                                                                                                  
                                                                                                                                                  
 Basic net income per share based on net                                                                                                          
 income attributable to Coca-Cola Bottling Co.                                                                                                    
 Consolidated:                                                                                                                                    
 Common Stock                                                                           $ 0.20             $ 0.20       $ 2.95        $ 3.11      
 Weighted average number of Common                                                                                                                
 Stock shares outstanding                                                               7,141              7,141        7,141         7,141       
                                                                                                                                                  
 Class B Common Stock                                                                   $ 0.20             $ 0.20       $ 2.95        $ 3.11      
 Weighted average number of Class B                                                                                                               
 Common Stock shares outstanding                                                        2,089              2,067        2,085         2,063       
                                                                                                                                                  
 Diluted net income per share based on net                                                                                                        
 income attributable to Coca-Cola Bottling Co.                                                                                                    
 Consolidated:                                                                                                                                    
 Common Stock                                                                           $ 0.20             $ 0.20       $ 2.94        $ 3.09      
 Weighted average number of Common                                                                                                                
 Stock shares outstanding - assuming dilution                                           9,270              9,248        9,266         9,244       
                                                                                                                                                  
 Class B Common Stock                                                                   $ 0.19             $ 0.19       $ 2.92        $ 3.08      
 Weighted average number of Class B Common                                                                                                        
 Stock shares outstanding - assuming dilution                                           2,129              2,107        2,125         2,103       


Coca-Cola Bottling Co. Consolidated
Media Contact:
Lauren C. Steele, 704-557-4551
Senior VP - Corporate Affairs
or
Investor Contact:
James E. Harris, 704-557-4582
Senior VP - Shared Services & CFO


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