Coca-Cola Enterprises Inc. Reports Fourth-Quarter and Full-Year 2003 Results.Business Editors ATLANTA--(BUSINESS WIRE)--Jan. 29, 2004 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 ): -- Fourth-quarter 2003 earnings 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 were 28 cents, including the net effect of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. items totaling 11 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . -- 2003 earnings per diluted common share totaled $1.46, including net favorable items of 14 cents per share. -- The Company has raised its full-year 2004 earnings guidance to a range of $1.42 to $1.46. Coca-Cola Enterprises Inc. ("CCE") today reported that fourth-quarter 2003 net income applicable to common shareowners increased to $128 million, or 28 cents per diluted common share. 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 to $346 million in the fourth quarter, up 38 percent versus prior year results. Full-year 2003 net income totaled $674 million, or $1.46 per diluted common share. Operating income totaled $1,577 million in 2003, an increase of 16 percent. Our reported 2003 results include favorable items consisting of a gain on the sale of a hot-fill manufacturing facility recorded in the first quarter, insurance proceeds received in the fourth quarter, favorable purchase accounting adjustments, and net favorable tax items. Adjusting for these items and for favorable tax items recorded in 2002, CCE generated the following comparable results for the fourth quarter and full year 2003: -- Comparable fourth-quarter 2003 net income per diluted common share was 17 cents, up 31 percent from comparable prior year results. Full-year 2003 net income per share totaled $1.32, an increase of 28 percent over comparable 2002 results. -- Comparable fourth-quarter 2003 operating income grew 5 percent to $264 million, while full-year 2003 comparable operating income increased 9 percent to $1,487 million. Our 2003 financial performance reflects strong growth in 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). ,
consistent pricing initiatives throughout our territories, and favorable
foreign currency translations. Foreign currency translations contributed
2 cents per diluted common share to earnings growth for the fourth
quarter and 10 cents per diluted common share for the full-year 2003.Please see the attached key financial information schedule for a reconciliation of reported and comparable operating income, net income and net income per diluted common share. "By every financial measure, the results of our company continue to improve, with strong earnings per share growth, increasing levels of free cash flow, improved returns on invested capital, and reduced net debt levels," 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 of the board. "We are achieving this improved performance through our strong commitment to value creation, including enhanced brand building activities and a clear, company-wide strategy of revenue management. "In 2004, we will build on these results by reinforcing re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. our value-oriented strategic direction, increasing our operating efficiencies, and further strengthening our solid partnership with The Coca-Cola Coca-Cola soft drink found throughout the world. [Trademarks:Crowley Trade, 115] See : Ubiquity Company," Mr. Kline said. 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 decreased 1 percent on a comparable basis for the fourth quarter, and increased 1 1/2 percent for full year 2003. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. volume was down approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1 percent in the fourth quarter, and flat for the full year. Our full year 2003 volume results in 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. were characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by growth in diet soft drink brands, including diet 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, strong sales of Dasani Dasani (pronounced [dəˈsɑːni]) is a popular brand of bottled water from the Coca-Cola company, launched in 1999, after the success of Aquafina (produced by Coca-Cola-rival PepsiCo). , and lemon-lime “Lymon” redirects here. For the recording artist, see Frankie Lymon. Lemon-lime is a common carbonated soft drink flavor, consisting of lemon and lime flavoring. Sprite, Sierra Mist, Mountain Dew, and 7 Up are the most popular examples. category growth from the introduction of Sprite Remix Sprite Remix is a brand of colorless, caffeine-free soft drinks flavored differently than, but based on the original Sprite made by the Coca-Cola company. Known flavors
In Europe, volume was down approximately 1 1/2 percent in the fourth quarter as we decreased promotional activity and deemphasized certain low value brands in our portfolio. For the full year, European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. volume increased 5 1/2 percent reflecting record-setting hot weather during the summer months, the success of local marketing programs, and new brand introductions, including Vanilla Coke and Diet Coke/Coke light 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. . "Our dedication to revenue management was essential to our success for the year, and we will enhance this strategic commitment in 2004," said John R. Alm See application lifecycle management and AppWare. ALM - Assembly Language for Multics , president and chief executive officer. "Strong, popular brands, in the right package, make revenue enhancement revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. possible and sustainable through a combination of rate and mix. It is vital that we continue to build our brands with even higher levels of demand creation, innovation and marketplace execution. "We plan continued product and package development, already demonstrated by the introduction of 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 Lime, as well as significant brand building activities in support of our existing brands, including the NCAA NCAA abbr. National Collegiate Athletic Association Final Four and a unique summer initiative," Mr. Alm said. "We believe these efforts will drive growth and increase value in the year ahead, benefiting customers and consumers in North America and Europe." Fourth-quarter 2003 consolidated net pricing per case increased 2 1/2 percent. Pricing growth in North America totaled 2 percent for the quarter, while European pricing was up 3 1/2 percent. Full-year 2003 pricing growth of 2 1/2 percent was comprised of North American growth of 2 percent and European growth of 2 1/2 percent. Bottle and can cost of sales per case increased 1 percent for both the fourth quarter and full year. All net pricing and cost of sales per case comparisons exclude the effects of foreign currency translations. Please see the attached key operating information schedule for a reconciliation of reported and comparable operating statistics used in this release. Full-Year 2004 Outlook Full-year 2004 earnings per diluted common share are now expected in a range of $1.42 to $1.46. 2004 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. is expected to increase 5 percent to 6 percent from comparable 2003 operating profit of $1,487 million. 2004 operating income expectations include the impact of a significant increase in pension expense, which will negatively impact 2004 growth by approximately 3 percent. We do not foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. a significant pension expense increase in 2005. Full-year 2004 physical case bottle and can volume growth is expected to total approximately 1 1/2 percent in both North America and Europe. While expected volume growth in Europe is below our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. trends, our outlook for 2004 reflects our strategic decision to develop a new water portfolio with The Coca-Cola Company, combined with hurdling hurdling Track-and-field event, a footrace over a series of obstacles called hurdles. Runners must remain in assigned lanes throughout a race, and, though they may knock hurdles down while running over them, they may do so only with a leg or foot, not a hand. the volume generated by last summer's record setting hot weather. We remain committed to a long-term growth rate of 4 percent to 6 percent for our European territories. A conference call to discuss our 2003 results with analysts and investors will be webcast 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 a.m.(ET). The call can be accessed through our web site 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 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. , 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 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 our 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 73 of our 2002 Annual Report and on page 34 of the Company's Third-Quarter 2003 Form 10-Q Form 10-Q See 10-Q. .
COCA-COLA ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; In Millions Except Per Share Data)
Fourth Quarter
----------------------
2003 2002(a) Change
------ ------ ------
Net Operating Revenues $4,312 $4,029 7%
Cost of Sales 2,549 2,376 7%
------ ------
Gross Profit 1,763 1,653 7%
Selling, Delivery, and
Administrative Expenses 1,417 1,402 1%
------ ------
Operating Income 346 251 38%
Interest Expense, Net 161 166
Other Nonoperating Income (Expense), Net (2) -
------ ------
Income Before Income Taxes 183 85
Income Tax Expense(b) 55 7
------ ------
Net Income 128 78
Preferred Stock Dividends - 1
------ ------
Net Income Applicable to
Common Shareowners $ 128 $ 77
====== ======
Basic Average Common Shares
Outstanding 456 451
====== ======
Basic Net Income Per Share
Applicable to Common Shareowners(c) $ 0.28 $ 0.17
====== ======
Diluted Average Common Shares
Outstanding 463 461
====== ======
Diluted Net Income Per Share
Applicable to Common Shareowners(c) $ 0.28 $ 0.17
====== ======
(a) Amounts shown above reflect the January 1, 2003 adoption of
EITF 02-16. To conform with the current year presentation,
fourth-quarter 2002 results include the following
reclassifications: 1) approximately $233 million of direct
marketing support, previously included in net operating revenues,
is reflected as a reduction to cost of sales; 2) approximately
$13 million of Jumpstart funding, previously included as a
reduction of SD&A expense, is reflected as a reduction to cost of
sales; and 3) approximately $13 million of equipment service
income, previously included as a reduction of SD&A expense, is
reflected as an increase to net operating revenues.
(b) In fourth quarter 2003, this amount includes the benefit of
favorable tax items totaling $20 million, offset by unfavorable
impact of a provincial rate change in Canada totaling $23 million.
In fourth quarter 2002, this amount includes the benefit of
favorable rate changes in Europe and certain provinces in Canada
totaling $16 million.
(c) 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
----------------------
2003 2002(a) Change
------- ------ ------
Net Operating Revenues $17,330 $16,058 8%
Cost of Sales 10,165 9,458 7%
------- -------
Gross Profit 7,165 6,600 9%
Selling, Delivery, and
Administrative Expenses 5,588 5,236 7%
------- -------
Operating Income 1,577 1,364 16%
Interest Expense, Net 607 662
Other Nonoperating Income (Expense), Net 2 3
------- -------
Income Before Income Taxes 972 705
Income Tax Expense(b) 296 211
------- -------
Net Income 676 494
Preferred Stock Dividends 2 3
------- -------
Net Income Applicable to Common
Shareowners $ 674 $ 491
======= =======
Basic Average Common Shares
Outstanding 454 449
======= =======
Basic Net Income Per Share
Applicable to Common Shareowners(c) $ 1.48 $ 1.09
======= =======
Diluted Average Common Shares
Outstanding 461 458
======= =======
Diluted Net Income Per Share
Applicable to Common Shareowners(c) $ 1.46 $ 1.07
======= =======
(a) Amounts shown above reflect the January 1, 2003 adoption of
EITF 02-16. To conform with the current year presentation,
full-year 2002 results include the following reclassifications:
1) approximately $882 million of direct marketing support,
previously included in net operating revenues, is reflected as a
reduction to cost of sales; 2) approximately $77 million of
Jumpstart funding, previously included as a reduction of SD&A
expense, is reflected as a reduction to cost of sales; and
3) approximately $51 million of equipment service income,
previously included as a reduction of SD&A expense, is reflected
as an increase to net operating revenues.
(b) For full year 2003, this amount includes the benefit of favorable
tax items totaling $31 million, offset by the unfavorable impact
of a provincial rate change in Canada totaling $23 million. For
full year 2002, this amount includes the benefit of favorable rate
changes in Europe and certain provinces in Canada totaling
$16 million and the benefit of other favorable tax items totaling
$4 mllion.
(c) Per share data calculated prior to rounding to millions.
COCA-COLA ENTERPRISES INC.
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions Except Per Share Data)
December 31,
-------------------
2003 2002
--------- --------
ASSETS (Unaudited)
Current
Cash and cash investments $ 80 $ 68
Trade accounts receivable, net 1,796 1,681
Inventories 706 719
Prepaid expenses and other current assets 423 376
-------- --------
Total Current Assets 3,005 2,844
Net Property, Plant, and Equipment 6,794 6,393
Goodwill, License Intangible Assets,
Long-Term Customer Contracts and
Other Noncurrent Assets, Net 15,906 15,138
-------- --------
$ 25,705 $ 24,375
======== ========
LIABILITIES AND SHAREOWNERS' EQUITY
Current
Accounts payable and accrued expenses $ 2,852 $ 2,668
Current portion of long-term debt 1,094 787
-------- --------
Total Current Liabilities 3,946 3,455
Long-Term Debt, Less Current Maturities 10,552 11,236
Retirement and Insurance Programs and
Other Long-Term Obligations 1,877 1,798
Long-Term Deferred Income Tax Liabilities 4,965 4,539
Shareowners' Equity 4,365 3,347
-------- --------
$ 25,705 $ 24,375
======== ========
COCA-COLA ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; In Millions)
December 31,
-----------------
2003 2002
------- -------
Cash Flows from Operating Activities
------------------------------------
Net income $ 676 $ 494
Adjustments to reconcile net income to net cash
derived from operating activities:
Depreciation 1,022 965
Amortization(a) 75 59
Other changes including changes in assets and
liabilities, net of bottling acquisition
effects(a) 32 (132)
------- -------
Net cash derived from operating activities 1,805 1,386
Cash Flows from Investing Activities
------------------------------------
Investments in capital assets (1,099) (1,029)
Other investing activities(a) 82 (10)
------- -------
Net cash used in investing activities (1,017) (1,039)
Cash Flows from Financing Activities
------------------------------------
Net payments of commercial
paper and long-term debt (761) (520)
Cash dividend payments (74) (75)
Other financing activities 59 32
------- -------
Net cash used in financing activities (776) (563)
Net Increase (Decrease) in Cash and Cash
Investments 12 (216)
Cash and Cash Investments at Beginning of Year 68 284
------- -------
Cash and Cash Investments at End of Year $ 80 $ 68
======= =======
(a) Certain amounts have been reclassified in 2002 to conform to
current year classifications.
Coca-Cola Enterprises Inc.
Key Financial Information
(Unaudited; In Millions, Except Per Share Data)
% %
4Q03 4Q02 Change 2003 2002 Change
---------------------- -------------------
Operating Income
Reconciliation
---------------
Reported Operating Income $ 346 $ 251 38% $1,577 $1,364 16%
Gain on Sale of Hot-Fill
Facility (8)
Net Insurance Proceeds (68) (68)
Purchase Accounting
Adjustments (14) (14)
------- ------ ------ ------ ----- -----
Comparable Operating
Income(a) $ 264 $ 251 5% $1,487 $1,364 9%
======= ====== ====== ====== ===== =====
Net Income Reconciliation
-------------------------
Reported Net Income
Applicable to Common $ 128 $ 77 66% $ 674 $ 491 37%
Shareowners
Gain on Sale of Hot-Fill
Facility (5)
Unfav/(Fav) Tax Rate Changes 23 (16) 23 (16)
Unfav/(Fav) Settlement of
Tax Related Items (20) (31) (4)
Net Insurance Proceeds (44) (44)
Purchase Accounting
Adjustments (9) (9)
------- ------ ------ ------ ----- -----
Comparable Net Income
Applicable to Common
Shareowners(a) $ 78 $ 61 28% $ 608 $ 471 29%
======= ====== ====== ====== ===== =====
Diluted Earnings Per Share
Reconciliation
--------------------------
Reported Diluted EPS $ 0.28 $ 0.17 65% $ 1.46 $ 1.07 36%
Gain on Sale of Hot-Fill
Facility (0.01)
Unfav/(Fav) Tax Rate Changes 0.05 (0.04) 0.05 (0.03)
Unfav/(Fav) Settlement of
Tax Related Items (0.04) (0.06) (0.01)
Net Insurance Proceeds (0.10) (0.10)
Purchase Accounting
Adjustments (0.02) (0.02)
------- ------ ------ ------ ----- -----
Comparable Diluted EPS(a) $ 0.17 $ 0.13 31% $ 1.32 $ 1.03 28%
======= ====== ====== ====== ===== =====
2003 2002
------- -------
Free Cash Flow(b)
-----------------
Net Cash Derived From
Operating Activities $ 1,805 $ 1,386
Less: Investments in Capital
Assets 1,099 1,029
------- -------
Free Cash Flow $ 706 $ 357
======= =======
Net Debt(c)
Current Portion of Long-Term
Debt $ 1,094 $ 787
Long-Term Debt 10,552 11,236
Less: Cash and Cash
Investments 80 68
------- -------
Net Debt $11,566 $11,955
======= =======
(a) Comparable financial information is provided to allow investors to
more clearly evaluate our operating performance and business
trends.
(b) The non-GAAP measure "Free Cash Flow" is provided to allow
investors to more clearly evaluate the cash available for
financing and other investing activities.
(c) The non-GAAP measure "Net Debt" is provided to allow investors to
more clearly evaluate our capital structure and leverage.
Coca-Cola Enterprises Inc.
Key Operating Information
(Unaudited)
Fourth-Quarter 2003 Change Full-Year 2003 Change
--------------------------- -------------------------
North North
Consolidated America Europe Consolidated America Europe
------------ ------- ------ ------------ ------- -----
Net Revenues Per Case
---------------------
Change in Net
Revenues per
Case 6.0 % 3.0 % 15.0 % 6.0 % 2.5 % 16.5 %
Impact of Excluding
Post Mix Sales
and Agency
Sales 0.5 % 0.5 % 0.0 % 0.5 % 0.0 % 0.5 %
------ ------ ------ ------ ------ -----
Bottle and Can
Net Pricing Per
Case(a) 6.5 % 3.5 % 15.0 % 6.5 % 2.5 % 17.0 %
Impact of
Currency
Exchange
Rate Changes (4.0)% (1.5)%(11.5)% (4.0)% (0.5)%(14.5)%
------ ------ ------ ------ ------ -----
Currency-Neutral
Bottle and Can
Net Pricing
per Case(c) 2.5 % 2.0 % 3.5 % 2.5 % 2.0 % 2.5 %
====== ====== ====== ===== ====== =====
Cost of Sales Per Case
----------------------
Change in Cost
of Sales per
Case 6.5 % 3.5 % 13.5 % 5.5 % 2.0 % 15.0 %
Impact of Excluding
Bottle and Can
Marketing Credits
and Jumpstart
Funding (1.5)% (1.5)% 0.0 % (0.5)% (1.0)% 0.0 %
Impact of Excluding
Post Mix Sales and
Agency Sales 0.0 % 0.0 % 0.0 % 0.5 % 0.5 % 0.0 %
------ ------ ------ ------ ------ -----
Bottle and Can
Cost of Sales
Per Case(b) 5.0 % 2.0 % 13.5 % 5.5 % 1.5 % 15.0 %
Impact of
Currency
Exchange
Rate Changes (4.0)% (1.5)%(11.5)% (4.5)% (1.0)%(14.0)%
------ ------ ------ ------ ------ -----
Currency-Neutral
Bottle and Can
Cost of Sales
per Case(c) 1.0 % 0.5 % 2.0 % 1.0 % 0.5 % 1.0 %
====== ====== ====== ===== ====== =====
Physical Case Bottle
and Can Volume
--------------------
Change in Volume 1.0 % 0.5 % 2.0 % 2.0 % 0.5 % 7.5 %
Impact of
Acquisitions (0.5)% 0.0 % (2.0)% (0.5)% (0.5)% (2.0)%
Impact of
Selling Day
Shift (1.5)% (1.5)% (1.5)% 0.0 % 0.0 % 0.0 %
------ ------ ------ ------ ------ -----
Comparable
Bottle and Can
Volume(d) (1.0)% (1.0)% (1.5)% 1.5 % 0.0 % 5.5 %
====== ====== ====== ===== ====== =====
Fountain Gallon Volume
----------------------
Change in Volume 2.0 % 1.0 % 8.0 % (2.5)% (3.5)% 3.5 %
Impact of
Acquisitions 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Impact of
Selling Day
Shift (1.0)% (1.5)% (1.5)% 0.0 % 0.0 % 0.0 %
------ ------ ------ ------ ------ -----
Comparable
Fountain Gallon
Volume(d) 1.0 % (0.5)% 6.5 % (2.5)% (3.5)% 3.5 %
====== ====== ====== ===== ====== =====
(a) The non-GAAP financial measure "Bottle and Can Net Pricing per
Case" is provided to allow investors to more clearly evaluate
bottle and can pricing trends in the marketplace. The measure
excludes the impact of fountain gallon volume and other items that
are not directly associated with bottle and can pricing in the
retail environment. Our bottle and can sales accounted for
approximately 91 percent of our net revenue in the full year of
2003.
(b) The non-GAAP financial measure "Bottle and Can Cost of Sales per
Case" is provided to allow investors to more clearly evaluate cost
trends for bottle and can products. The measure excludes the
impact of fountain ingredient costs as well as marketing credits
and Jumpstart funding, and allows investors to gain an
understanding of the change in bottle and can ingredient and
packaging costs.
(c) The non-GAAP financial measures "Currency-Neutral Bottle and Can
Net Pricing per Case" and "Currency-Neutral Bottle and Can Cost of
Sales per Case" are provided to allow investors to separate the
impact of currency exchange rates translations on our operations.
(d) "Comparable Volume" excludes the impact of acquisitions and
changes in the number of selling days between periods. The measure
allows investors to analyze the performance of our business on a
constant territory basis. In 2003, one selling day shifted from
the first quarter to the fourth quarter.
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