Coca-Cola Enterprises Inc. reports first-quarter 1997 increase in noncash stock-performance related expenses and one-time charge relating to debt redemption.ATLANTA--(BUSINESS WIRE)--April 1, 1997--Coca-Cola Enterprises today announced that first-quarter 1997 noncash expenses related to certain stock-based compensation plans will be higher than the Company's original 1997 expectations. The Company's stock price increased as much as 36 percent during the first quarter of 1997 and ended the quarter up approximately 25 percent. This growth in market value, along with the Company's outlook for strong full-year 1997 performance, will result in higher stock-related Selling, General, and Administrative (SG&A) Expenses, primarily noncash amortization expenses. Based on current expectations, total noncash franchise and stock-related amortization expenses will be $96 million in first-quarter 1997 and approximately $330 million for full-year 1997. The full-year 1997 amortization of $330 million represents approximately $273 million of franchise amortization and $57 million of stock-related amortization. Since the incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. associated with the performance-based restricted stock and stock option plans are noncash amortization expenses, 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. (earnings before interest, taxes, depreciation, amortization, and other nonoperating expenses), cash flow, or amortization adjusted earnings per share. The implementation of changes to the Company's stock-based employee benefit plans at the end of 1996 eliminated certain cash SG&A Expenses associated with the stock performance. The Company believes these performanced-based stock compensation plans are effective tools for maximizing results and share-owner value since they increase employee ownership in 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 . "While SG&A Expenses will be higher than originally anticipated due to our strong first-quarter 1997 stock price performance, we continue to expect full-year 1997 comparable cash operating profit growth of 9 percent, which should generate 1997 earnings per share growth of 10 percent to 15 percent above 1996 adjusted earnings of 80 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. ," stated Summerfield K. Johnston, Jr., vice chairman and chief executive officer of Coca-Cola Enterprises. "The fundamentals of our operating performance remain strong and on target, even with the highly competitive marketplace conditions that currently exist. Our domestic volume growth is higher than the industry rate, our international growth is outpacing domestic growth, and in most territories our growth rate is exceeding our competitors." Coca-Cola Enterprises also reported that effective April 1, 1997, the Company redeemed all of its outstanding 8 3/4 percent Debentures due April 1, 2017. The Company had approximately $142 million outstanding under this debt issue. The Company's first-quarter 1997 results will include a one-time charge associated with this debt redemption of approximately $6 million, or 3 cents per common share after tax based on shares outstanding prior to the proposed 3-for-1 stock split. The Company has already refinanced this debt issue with lower cost debt, enhancing the Company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. portfolio. The forward-looking statements in this news release should be read in conjunction with cautionary statements found on page 27 of the Company's 1996 Annual Report. 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 liquid nonalcoholic non·al·co·hol·ic adj. A beverage usually containing less than 0.5 percent alcohol by volume. refreshment, distributing more than 58 percent of The Coca-Cola Company's United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. bottle and can volume. Coca-Cola Enterprises is also the sole licensed bottler for products of The Coca-Cola Company in Belgium, 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. , the Netherlands, and most of France. CONTACT: Coca-Cola Enterprises Laura Asman - Media Relations 770/989-3023 or Margaret Carton - Investor Relations Investor relations The process by which the corporation communicates with its investors. 770/989-3622 |
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