COCA-COLA ENTERPRISES INC. ANNOUNCES CHANGE TO EXISTING SHARE REPURCHASE PROGRAM AND INCREASE IN FOURTH-QUARTER 1995 AND FULL-YEAR 1996 NONCASH EXPENSES.ATLANTA--(BUSINESS WIRE)--Dec. 19, 1995--The Coca-Cola Enterprises Coca-Cola Enterprises NYSE: CCE is the largest bottler by volume in the Coca-Cola System. It is the anchor bottler for North America and parts of Europe. The company is the bottler of Coca-Cola and its other soft drink products, and in some areas a few other soft drink Board of Directors today approved the use of debt in addition to free cash flow to fund transactions under the Company's existing share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. Under the August 1994 program, Coca-Cola Enterprises can repurchase up to 10 million shares of the Company's common stock in open market and privately negotiated transactions, depending on market conditions. As of December 15, 1995, share repurchase transactions under the program totaled 3.3 million shares. Repurchased shares will be available for general corporate purposes, including the funding of acquisitions and various employee benefits and compensation plans. "With the Ouachita acquisition as well as other potential acquisitions ahead of us, we wanted the flexibility to continue share repurchase activity even after using free cash flow for acquisitions," commented Summerfield K. Johnston, Jr., vice chairman and chief executive officer of Coca-Cola Enterprises. "We continue to believe that the repurchase of our own shares represents a high return reinvestment in our business." Coca-Cola Enterprises also reported that certain noncash Selling, General And Administrative Expenses are expected to increase above third-quarter 1995 levels in the fourth quarter of 1995, as well as impact results in 1996. The more than 60 percent increase in the Company's stock price as of the date of this press release, has resulted in increased expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc existing performance-based stock compensation. The Company also expects to implement additional stock-based compensation plans in 1996. The Company believes these performance-based stock compensation plans are effective tools for maximizing results and share-owner value. In addition, depreciation expense will increase in the fourth quarter of 1995 and in 1996 as a result of 1995 capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. levels which are now expected to reach approximately $500 million, almost $100 million above estimates at the beginning of 1995. The current 1995 capital spending levels reflect the opportunities identified in the Company's strategic, on-going investment in the revenue-enhancing cold drink channel of its business. The incremental Selling, General And Administrative Expenses are expected to reduce reported fourth-quarter 1995 results by approximately 15 cents per common share. In 1996, increases in Selling, General And Administrative Expenses are expected to reduce reported earnings by approximately 9 to 11 cents per common share. The exact impact of these expenses on 1996 results will depend in part on the Company's stock performance in 1996. While the incremental noncash expenses will reduce reported earnings per common share for fourth-quarter and full-year 1995, as well as for 1996, there is no impact on cash operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. (operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before deducting depreciation or amortization) or cash flow. "As we close 1995, we are confident that we can produce 8 percent to 9 percent comparable cash operating profit growth, ahead of original 1995 expectations," stated Henry A. Schimberg, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Coca-Cola Enterprises. "Our 1996 plans build on our current momentum and should translate into another year of strong operating growth and profit enhancement. We expect to increase comparable cash operating profit by at least 8 percent again in 1996," continued Mr. Schimberg. Coca-Cola Enterprises Inc. (NYSE NYSE See: New York Stock Exchange : CCE CCE Cornell Cooperative Extension CCE Corporate and Continuing Education CCE Coca-Cola Enterprises Inc. CCE Commission de Coopération Environnementale CCE Centre for Continuing Education CCE College of Continuing Education CCE Certified Computer Examiner ) is the world's largest bottler of products of The Coca-Cola Company, distributing approximately 55 percent of The Coca-Cola Company's United States bottle and can volume. Coca-Cola Enterprises is also the sole licensed bottler for products of The Coca-Cola Company in the Netherlands. CONTACT: Coca-Cola Enterprises, Atlanta Laura Asman, 770/989-3023 (Media Relations) Margaret Carton, 770/989-3622 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion