Coca-Cola Enterprises Inc. Reports Fourth-Quarter and Full-Year 2002 Results.Business Editors ATLANTA--(BUSINESS WIRE)--Jan. 29, 2003 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 (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 ) -- Constant territory full year volume increased 4 percent in 2002, with volume growth of 3 1/2 percent in North America and 4 1/2 percent in Europe. -- 2002 net income per diluted common share was $1.07, including one-time tax benefits of 4 cents. -- The Company reaffirmed its 2003 earnings per share guidance of $1.15 to $1.22. Coca-Cola Enterprises today reported that 2002 net income applicable to common shareowners totaled $1.07 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share, or $491 million, as 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. grew 23 percent versus comparable(a) 2001 results to $1.36 billion (see Table 1). Full-year 2002 results include one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. reductions in income tax expense totaling approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4 cents per diluted common share. "The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results we achieved in 2002 reflect our success in managing all aspects of our business," said Lowry Low·ry , (Clarence) Malcolm 1909-1957. British writer. His novel Under the Volcano (1947) is recognized as a masterpiece of modern fiction. Noun 1. Lowry - English painter (1887-1976) L. S. F. Kline, chairman and chief executive officer. "With product and package innovation and excellent local marketing and execution, we've we've Contraction of we have. we've have grown volume and added even more depth to our brand portfolio. Importantly, we achieved this while closely managing our costs to make our operations as efficient as possible. "In 2003, our challenge remains the same: operating efficiently and succeeding in the marketplace with strong, growing brands and effective pricing initiatives. We remain confident in our ability to successfully manage this equation and deliver solid earnings growth this year, including a stronger return on invested capital," Mr. Kline said. (a) All comparable prior-year figures include the Herb acquisition, and exclude nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items. Operating Results Full-year consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: physical case bottle and can volume increased by 4 percent on a comparable basis, with North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. achieving growth of 3 1/2 percent and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). 4 1/2 percent. In the
fourth quarter, consolidated volume grew 2 1/2 percent, with a 2
percent increase in North America and a 5 1/2 percent increase in
Europe.
"Our solid volume growth in 2002 reflects our ability to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. the benefits of the strongest brand portfolio our system has ever had," said John R. Alm See application lifecycle management and AppWare. ALM - Assembly Language for Multics , 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. . "We successfully introduced Vanilla vanilla, a plant of the genus Vanilla of the family Orchidaceae (orchid family). Vines of hot, damp climates, most are indigenous to Central and South America, especially Mexico, but are now cultivated in other tropical regions. Coke and diet Vanilla Coke, the industry's most successful new products in more than a decade, reigniting important growth in our carbonated car·bon·ate tr.v. car·bon·at·ed, car·bon·at·ing, car·bon·ates 1. To charge (a beverage, for example) with carbon dioxide gas. 2. To burn to carbon; carbonize. 3. To change into a carbonate. soft drink brands. We continued to build on the success of the Minute Maid Minute Maid is a product line of beverages, usually associated with orange juice, but now extends to soft drinks of many kinds, including Hi-C. Minute Maid was the first company to market orange juice concentrate, allowing it to be distributed nationwide and served juice drink product line, and further developed our water brands. "In Europe, we again generated both positive volume and pricing growth. We successfully launched diet Coke Diet Coke (sometimes known as Diet Coca-Cola, Coca-Cola Light or Coke Light) is a sugar-free soft drink produced and distributed by The Coca-Cola Company. with Lemon lemon, one of the citrus fruits, from a tree (Citrus limon) of the family Rutaceae (orange family), probably native to India. A small tree (to about 15 ft/5 m tall) with thorny branches and purple-edged white blossoms, it requires a mild, equable climate. and greatly strengthened our Fanta FANTA Food and Nutrition Technical Assistance brand with new flavors New Flavors - An object-oriented Lisp from Symbolics, the successor to Flavors, it led to CLOS. ["Reference Guide to Symbolics-Lisp", Symbolics, March 1985]. and packaging," Mr. Alm said. "We expect these positive trends to continue in 2003 as we build on our successes through enhanced marketing programs from The Coca-Cola Coca-Cola soft drink found throughout the world. [Trademarks:Crowley Trade, 115] See : Ubiquity Company, a strong new media campaign, additional brand initiatives, and our own ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution and market at the local level," Mr. Alm said. "We will take full advantage of these brand and organizational strengths as we work to generate the balance of volume and pricing growth necessary to meet our 2003 targets." Operating income increased 23 percent on a comparable basis for the full year and 11 percent in the fourth quarter, reflecting a combination of strong volume growth, gross margin expansion and controlled growth in operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. . In addition, comparisons to 2001 benefited from our Sales Growth Initiative with The Coca-Cola Company, the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). we undertook in 2001, and the immediate savings we realized from the acquisition of Herb Coca-Cola.
Table 1 Operating Income Comparison
------- ----------------------------
% %
4Q02 4Q01 Change 2002 2001 Change
Reported Operating Income $251 $ 92 173% $1,364 $601 127%
Franchise Amortization 98 391
Restructuring Charge 37 78
Herb Operating Income - 39
Comparable Operating Income $251 $227 11% $1,364 $1,109 23%
Currency-neutral consolidated bottle and can net revenue per case increased 1 1/2 percent in the fourth quarter and 1/2 percent for the full year. Net revenue per case growth realized in our North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. in the fourth quarter was 2 percent and 1/2 percent for full-year 2002. Total bottle and can cost of sales per case was flat versus prior year for full-year 2002 and up 1/2 percent in the fourth quarter, excluding the effects of currency translations. The 2002 effective tax rate was 33 percent excluding the impact of nonrecurring items. 2002 income tax expense included one-time benefits totaling approximately $20 million, or 4 cents per diluted common share, primarily related to tax rate reductions in Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . 2003 Outlook The Company expects continued volume growth in 2003, with approximately 3 percent growth expected in North America and growth in a range of 4 percent to 6 percent in Europe. The Company projects 2003 operating income to grow to a range of $1.45 billion to $1.5 billion. 2003 earnings per diluted common share are expected in a range of $1.15 to $1.22. The Company will webcast its conference call with analysts and investors live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the today at 10:00 a.m. ET. The call can be accessed through the Company's website at www.cokecce.com. Coca-Cola Enterprises Inc. (NYSE: CCE) is the world's largest marketer, distributor, and producer of bottle and can liquid nonalcoholic non·al·co·hol·ic adj. A beverage usually containing less than 0.5 percent alcohol by volume. refreshment. Coca-Cola Enterprises sells approximately 80 percent of The Coca-Cola Company's bottle and can volume in North America and is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. , Luxembourg Luxembourg, province, Belgium Luxembourg, Du. Luxemburg, province (1991 pop. 232,813), 1,706 sq mi (4,419 sq km), SE Belgium, in the Ardennes, bordering on the Grand Duchy of Luxembourg in the east and on France in the south. , Monaco Monaco (mŏn`əkō, mōnä`kō, Fr. mônäkō`), officially Principality of Monaco, independent principality (2005 est. pop. 32,400), c. , and the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. . Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Included in this news release are several forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. management comments and other statements that reflect management's current outlook for future periods. As always, these expectations are based on the currently available competitive, financial, and economic data along with the Company's operating plans and are subject to future events and uncertainties. The forward-looking statements in this news release should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the detailed cautionary statements found on page 48 of the Company's 2001 Annual Report, and on page 38 of the Company's Amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Third-Quarter 2002 Form 10-Q Form 10-Q See 10-Q. .
COCA-COLA ENTERPRISES INC.
KEY OPERATING INFORMATION
Currency
Neutral
Fourth Quarter 2002 Change Change
------------------------------------------------------------- --------
Net Pricing Per Case (Bottle and Can) (a) 3 1/2 % 1 1/2 %
Cost of Sales Per Case (Bottle and Can) 2 1/2 % 1/2 %
Physical Case Bottle and Can Volume (b)
Consolidated 2 1/2 %
North America 2 %
Europe 5 1/2 %
Fountain Gallon Volume (1 1/2)%
Currency
Neutral
Full Year 2002 Change Change
------------------------------------------------------------- --------
Net Pricing Per Case (Bottle and Can) (a) 1 1/2 % 1/2 %
Cost of Sales Per Case (Bottle and Can) 1 % Flat
Physical Case Bottle and Can Volume (b)
Consolidated 4 %
North America 3 1/2 %
Europe 4 1/2 %
Fountain Gallon Volume Flat
(a) Net pricing per case is calculated as invoice pricing less
allowances.
(b) Volume results have been adjusted to include acquisitions
completed in 2001, and the shift of one selling day from the
first quarter to the fourth quarter.
COCA-COLA ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; In Millions Except Per Share Data)
Fourth Quarter
------------------------
2002 2001(a) Change
------- ------- ------
Net Operating Revenues $4,249 $3,944 8 %
Cost of Sales 2,622 2,467 6 %
------- -------
Gross Profit 1,627 1,477 10 %
Selling, Delivery, and
Administrative Expenses 1,376 1,385 (1)%
------- -------
Operating Income 251 92 173 %
Interest Expense, Net 166 185
Other Nonoperating Income, Net - (1)
------- -------
Income (Loss) Before Income Taxes 85 (92)
Income Tax Expense (Benefit) 23 (52)
Nonrecurring Income Tax Benefit (16) (4)
------- -------
Net Income (Loss) 78 (36)
Preferred Stock Dividends 1 -
------- -------
Net Income (Loss) Applicable to
Common Shareowners $ 77 $ (36)
======= =======
Basic Average Common Shares
Outstanding 451 446
======= =======
Basic Net Income (Loss) Per Share
Applicable to Common
Shareowners (b) $ 0.17 $(0.08)
======= =======
Diluted Average Common Shares
Outstanding 461 446
======= =======
Diluted Net Income (Loss) Per Share
Applicable to Common
Shareowners (b) $ 0.17 $(0.08)
======= =======
EBITDA Data:
Income (Loss) Before Income Taxes $ 85 $ (92)
Interest Expense, Net 166 185
Depreciation 254 236
Amortization 24 113
------- -------
EBITDA $ 529 $ 442 20 %
======= =======
(a) As described on page 28 of the Company's 2001 Annual Report,
approximately $23 million of selling expenses have been
reclassified as deductions from net operating revenue in
accordance with EITF 01-09.
(b) Per share data calculated prior to rounding to millions.
COCA-COLA ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; In Millions Except Per Share Data)
Full Year
--------------------------
2002 2001(a) Change
-------- -------- ------
Net Operating Revenues $16,889 $15,605 8 %
Cost of Sales 10,417 9,740 7 %
-------- --------
Gross Profit 6,472 5,865 10 %
Selling, Delivery, and
Administrative Expenses 5,108 5,264 (3)%
-------- --------
Operating Income 1,364 601 127 %
Interest Expense, Net 662 753
Other Nonoperating Income, Net (3) (2)
-------- --------
Income (Loss) Before Income Taxes and
Cumulative Effect of Accounting Change 705 (150)
Income Tax Expense (Benefit) 231 (75)
Nonrecurring Income Tax Benefit (20) (56)
-------- --------
Net Income (Loss) Before Cumulative Effect
of Accounting Change 494 (19)
Cumulative Effect of Accounting Change - (302)
-------- --------
Net Income (Loss) 494 (321)
Preferred Stock Dividends 3 3
-------- --------
Net Income (Loss) Applicable to
Common Shareowners $ 491 $ (324)
======== ========
Basic Average Common Shares
Outstanding 449 432
======== ========
Basic Net Income (Loss) Per Share
Applicable to Common Shareowners
Before Cumulative Effect (b) $ 1.09 $ (0.05)
======== ========
Basic Net Income (Loss) Per Share
Applicable to Common Shareowners (b) $ 1.09 $ (0.75)
======== ========
Diluted Average Common Shares
Outstanding 458 432
======== ========
Diluted Net Income (Loss) Per Share
Applicable to Common Shareowners
Before Cumulative Effect (b) $ 1.07 $ (0.05)
======== ========
Diluted Net Income (Loss) Per Share
Applicable to Common Shareowners (b) $ 1.07 $ (0.75)
======== ========
EBITDA Data:
Income (Loss) Before Income Taxes and
Cumulative Effect of Accounting
Change $ 705 $ (150)
Interest Expense, Net 662 753
Depreciation 965 901
Amortization 80 452
-------- --------
EBITDA $ 2,412 $ 1,956 23 %
======== ========
(a) As described on page 28 of the Company's 2001 Annual Report,
approximately $95 million of selling expenses have been
reclassified as deductions from net operating revenue in
accordance with EITF 01-09.
(b) Per share data calculated prior to rounding to millions.
Coca-Cola Enterprises Inc.
Pro Forma Consolidated Statements of Income Excluding
Nonrecurring Items
Unaudited
(In millions, except per share data)
Fourth Quarter
--------------------------------
2002(a) 2001(b)(c) Change
------- ------- ---------
Net Operating Revenues $4,249 $3,935 8%
Cost of Sales 2,622 2,467 6%
------- -------
Gross Profit 1,627 1,468 11%
Selling, Delivery, and
Administrative Expenses 1,376 1,241 11%
------- -------
Operating Income 251 227 11%
Interest Expense, Net 166 185
Other Nonoperating Income, Net - (1)
------- -------
Income Before Income Taxes 85 43
Income Tax Expense (Benefit) 23 (3)
------- -------
Net Income 62 46
Preferred Stock Dividends 1 -
------- -------
Net Income Applicable to
Common Shareowners $ 61 $ 46
======= =======
Basic Average Common Shares
Outstanding (d) 451 446
======= =======
Basic Net Income Per Share
Applicable to Common Shareowners
(d) $ 0.14 $ 0.10
======= =======
Diluted Average Common Shares
Outstanding (d) 461 453
======= =======
Diluted Net Income Per Share
Applicable to Common Shareowners
(d) $ 0.13 $ 0.10
======= =======
EBITDA Data:
Income Before Income Taxes $ 85 $ 43
Interest Expense, Net 166 185
Depreciation 254 236
Amortization 24 15
------- -------
EBITDA $ 529 $ 479 10%
======= =======
Note: This comparable information is provided solely for the
purpose of additional analysis of the results of the Company excluding
nonrecurring items, including the effects of the change in accounting
method adopted as of January 1, 2001 excluding franchise amortization
as if FASB Statement 142 was adopted as of January 1, 2001, and
reflecting the current business arrangement with The Coca-Cola Company
regarding local media expenses, described on page 21 of the Company's
2001 Annual Report, as of January 1, 2001. The presentation is not
intended to be in conformity with the rules governing the preparation
of pro forma financial information, nor is it intended to be a
forecast of future operating results.
(a) Fourth-quarter 2002 results exclude a nonrecurring reduction
in income taxes of $16 million.
(b) Fourth-quarter 2001 results exclude a nonrecurring reduction
in income taxes of $4 million, exclude franchise amortization
of $98 million and the related income tax effect, exclude
restructuring and other charges of $37 million and the related
income tax effect, and reclassify approximately $9 million of
local media to reductions in net operating revenues.
(c) As described on page 28 of the Company's 2001 Annual Report,
approximately $23 million of selling expenses have been
reclassified as deductions from net operating revenue in
accordance with EITF 01-09.
(d) Per share data calculated prior to rounding to millions.
Coca-Cola Enterprises Inc.
Pro Forma Consolidated Statements of Income Excluding
Nonrecurring Items
Adjusted to Include the Herb Acquisition as of January 1, 2001
Unaudited
(In millions, except per share data)
Full Year
-------------------------------
2002(a) 2001(b)(c) Change
-------- -------- ------
Net Operating Revenues $16,889 $16,015 5%
Cost of Sales 10,417 10,021 4%
-------- --------
Gross Profit 6,472 5,994 8%
Selling, Delivery, and
Administrative Expenses 5,108 4,885 5%
-------- --------
Operating Income 1,364 1,109 23%
Interest Expense, Net 662 783
Other Nonoperating Income, Net (3) (2)
-------- --------
Income Before Income Taxes 705 328
Income Tax Expense 231 100
-------- --------
Net Income 474 228
Preferred Stock Dividends 3 3
-------- --------
Net Income Applicable to
Common Shareowners $ 471 $ 225
======== ========
Basic Average Common Shares
Outstanding (d) 449 444
======== ========
Basic Net Income Per Share
Applicable to Common Shareowners
(d) $ 1.05 $ 0.51
======== ========
Diluted Average Common Shares
Outstanding (d) 458 452
======== ========
Diluted Net Income Per Share
Applicable to Common Shareowners
(d) $ 1.03 $ 0.50
======== ========
EBITDA Data:
Income Before Income Taxes $ 705 $ 328
Interest Expense, Net 662 783
Depreciation 965 924
Amortization 80 62
-------- --------
EBITDA $ 2,412 $ 2,097 15%
======== ========
Note: This comparable information is provided solely for the
purpose of additional analysis of the results of the Company including
the results of the Herb acquisition as if acquired on January 1, 2001,
excluding nonrecurring items, including the effects of the change in
accounting method adopted as of January 1, 2001, excluding franchise
amortization as if FASB Statement 142 was adopted as of
January 1, 2001, and reflecting the current business arrangement with
The Coca-Cola Company regarding local media expenses, described on
page 21 of the Company's 2001 Annual Report, as of January 1, 2001.
The presentation is not intended to be in conformity with the rules
governing the preparation of pro forma financial information, nor is
it intended to be a forecast of future operating results.
(a) 2002 results exclude nonrecurring reductions in income taxes
of $20 million.
(b) 2001 results exclude the cumulative effect of a change in
accounting principle of $302 million, exclude a nonrecurring
reduction in income taxes of $56 million, exclude franchise
amortization of $391 million and the related income tax
effect, exclude $78 million in restructuring and other charges
and the related income tax effect, reclassify approximately
$46 million of local media to reductions in net operating
revenues, and include the results of the Herb acquisition. The
addition of the Herb acquisition resulted in an increase in
EBITDA of $63 million, an increase in operating income of
$39 million, and an increase to net income of $14 million.
(c) As described on page 28 of the Company's 2001 Annual Report,
approximately $95 million of selling expenses have been
reclassified as deductions from net operating revenue in
accordance with EITF 01-09.
(d) Basic and diluted shares outstanding have been adjusted to
reflect the balances that would have been outstanding had the
shares issued in connection with the Herb acquisition been
outstanding as of January 1, 2001. Per share data calculated
prior to rounding to millions.
COCA-COLA ENTERPRISES INC.
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions)
December 31, December 31,
2002 2001
------------ ------------
(Unaudited)
ASSETS
Current
Cash and cash investments $ 68 $ 284
Trade accounts receivable, net 1,673 1,540
Inventories 719 690
Prepaid expenses and other current
assets 384 362
------------ ------------
Total Current Assets 2,844 2,876
Net Property, Plant, and Equipment 6,393 6,206
Goodwill, Franchise Licenses and Other
Noncurrent Assets, Net 15,138 14,637
------------ ------------
$24,375 $23,719
============ ============
LIABILITIES AND SHAREOWNERS' EQUITY
Current
Accounts payable and accrued expenses $ 2,668 $ 2,718
Current portion of long-term debt 787 1,804
------------ ------------
Total Current Liabilities 3,455 4,522
Long-Term Debt, Less Current Maturities 11,236 10,365
Retirement and Insurance Programs and
Other Long-Term Obligations 1,798 1,676
Long-Term Deferred Income Tax Liabilities 4,539 4,336
Shareowners' Equity 3,347 2,820
------------ ------------
$24,375 $23,719
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion