Coca-Cola Enterprises Reports Fourth-Quarter and Full-Year 2000 Results.Business Editors ATLANTA--(BUSINESS WIRE)--Jan. 23, 2001 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 : -- Constant territory volume increased 2 1/2 percent in the fourth quarter of 2000, with volume growth of 1 1/2 percent in North America and 6 1/2 percent in Europe. -- 2000 net income per diluted common share was 50 cents, adjusting for nonrecurring items. -- Full-year 2000 cash operating profit increased 4 percent to $2.38 billion, excluding nonrecurring items. Coca-Cola Enterprises today reported that 2000 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. (a) increased 4 percent to $2.38 billion, and net income totaled 50 cents 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, excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items. On a reported basis, net income applicable to common shareowners was $233 million for the year, or 54 cents per diluted common share. Fourth-quarter cash operating profit was $517 million with diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of 4 cents. Fourth-quarter 2000 results include a nonrecurring reduction in income tax expense of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $14 million or 3 cents per common share. Currency translations reduced full-year 2000 cash operating profit growth by more than 2 percent. In the fourth quarter, currency translations reduced cash operating profit growth by more than 4 percent. "The year 2000 was a challenging period for the Company, with slower than expected volume growth 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. and difficult market conditions in 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. ," said Summerfield Summerfield is the name of some places in the United States of America:
Contraction of we have. we've have begun to see a return to volume growth on a foundation of improved pricing and profitability in the future consumption channels. "In Great Britain, strong fourth quarter volume growth demonstrates the strength of our brands in this market and the significant opportunities we have to build per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. consumption," Johnston said. "In addition, our other European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. territories - particularly France - continue to perform very well, achieving both volume growth and improved pricing." Operating Results Net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased over prior year by 5 percent to approximately $14.7 billion for full-year 2000, while fourth quarter net operating revenues increased 6 percent to $3.6 billion (currency neutral). For the full year, North America represented 76 percent of total revenues while 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). comprised 24 percent.
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 2 1/2 percent on a comparable basis for the quarter resulting in volume growth of 1/2 percent for full-year 2000. Consolidated fourth quarter results include a 1 1/2 percent increase in North America and a 6 1/2 percent increase in Europe. Volume growth was particularly strong in Great Britain, with volume up more than 8 percent in the fourth quarter. 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. volume strengthened significantly during December December: see month. , bringing comparable United States growth to more than 2 percent for the quarter and a decline of 1/2 percent for the full year. North America volume declined by less than 1 percent in 2000, while volume in Europe rose 5 percent. Volume in the cold drink channels of North America grew 3 percent in the fourth quarter and 5 percent for the full year. "Our positive fourth quarter United States volume results reflect strong consumer response to our December promotional calendar and local market activity," 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. . "In addition, we continue to see improved customer and consumer acceptance of higher pricing levels as we continue to refine market-based promotional activities focused on multiple packages and brands. "We expect these positive trends to accelerate this year on the strength of enhanced national marketing programs from The Coca-Cola Coca-Cola soft drink found throughout the world. [Trademarks:Crowley Trade, 115] See : Ubiquity Company, our own local brand-building initiatives and more moderate, market-based price increases," Alm said. "We believe this will enable us to realize physical case bottle and can volume growth in North America of 3 percent to 4 percent, and 4 percent to 6 percent in Europe." Currency-neutral bottle and can net revenues per case continued to show strong growth in North America, increasing 4 1/2 percent in the quarter and 6 percent for full-year 2000. Both the quarter and full-year results reflect continued price realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. in the supermarket channel and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product, package, and channel mix shifts. Currency-neutral consolidated bottle and can net revenues per case increased 3 1/2 percent in the quarter and 5 percent on a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis. Total bottle and can cost of sales per case increased 4 1/2 percent for the quarter and 2000, excluding currency translation and nonrecurring items. Fourth quarter 2000 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. totaled $200 million while full-year results reached $1.12 billion, excluding nonrecurring items. These results include $43 million or 6 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. for the fourth quarter and $161 million or 23 cents per share for the full year, which relate to revisions in depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. lives of certain equipment categories adopted in early 2000. Excluding the impact of these revisions as well as 1999 and 2000 nonrecurring items, operating income would have declined 5 percent for the quarter and increased 2 percent for full-year 2000. The 2000 effective tax rate was 33 percent excluding the impact of nonrecurring items. Fourth-quarter results include a nonrecurring reduction in income tax expense of approximately $14 million due to a revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of income tax liabilities and a reduction of the income tax rate in France. 2001 Outlook The Company projects 2001 cash operating profit to increase in a range of 6 percent to 7 percent, reaching $2.525 billion to $2.550 billion. 2001 net income per diluted common share is projected to grow in a range of 15 percent to 22 percent, with a majority of this growth occurring in the second and third quarters. These projections exclude the potential effects of currency translations. 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 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 74 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, 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 with the detailed cautionary statements found on page 48 of the Company's 1999 Annual Report, and on page 19 of the Company's Third-Quarter 2000 Form 10-Q Form 10-Q See 10-Q. . (a) Cash operating profit is defined as earnings before deducting interest, taxes, depreciation, amortization, and other nonoperating items.
COCA-COLA ENTERPRISES INC.
KEY OPERATING INFORMATION
Reported Comparable
Fourth-Quarter 2000 Change Change (a)
------------------- --------- -----------
Cash Operating Profit - Consolidated Flat Flat
Physical Case Bottle and Can Volume
Consolidated 3 % 2 1/2 %
North America 2 % 1 1/2 %
Europe 6 1/2 % 6 1/2 %
Fountain Gallon Volume (1/2)% (1)%
Net Revenues Per Case (Bottle and Can) (1/2)% (1/2)%
Cost of Sales Per Case (Bottle and Can) Flat Flat
Reported Comparable
Full-Year 2000 Change Change (a)
-------------- --------- -----------
Cash Operating Profit - Consolidated 9 % 4 %
Physical Case Bottle and Can Volume
Consolidated 1/2 % 1/2 %
North America (1)% [LESS THAN](1)%
Europe 6 % 5 %
Fountain Gallon Volume 1 % 1 %
Net Revenues Per Case (Bottle and Can) 2 % 2 %
Cost of Sales Per Case (Bottle and Can) 1/2 % 1 1/2 %
(a) To determine comparable results, financial results exclude
nonrecurring items, and 1999 volume results have been adjusted
to include the same number of fiscal days as 2000.
COCA-COLA ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; In Millions Except Per Share Data)
Fourth Quarter
-----------------------------------
2000 (a) 1999 Change
------- ------- --------
Net Operating Revenues $ 3,561 $ 3,509 1 %
Cost of Sales 2,219 2,179 2 %
------- -------
Gross Profit 1,342 1,330 1 %
Selling, Delivery, and
Administrative Expenses 1,142 1,164 (2)%
------- -------
Operating Income 200 166 20 %
Interest Expense, Net 197 192 3 %
Other Nonoperating Expense, Net 3 -
------- -------
Income (Loss) Before Income Taxes 0 (26)
Income Tax Benefit 16 8
------- -------
Net Income (Loss) 16 (18)
Preferred Stock Dividends 1 -
------- -------
Net Income (Loss) Applicable to
Common Shareowners $ 15 $ (18)
======= =======
Basic Average Common Shares
Outstanding 418 426
======= =======
Basic Net Income (Loss) Per Share
Applicable to Common
Shareowners (b) $ 0.04 $ (0.04)
======= =======
Diluted Average Common Shares
Outstanding 427 426
======= =======
Diluted Net Income (Loss) Per Share
Applicable to Common
Shareowners (b) $ 0.04 $ (0.04)
======= =======
Cash Operating Profit Data:
Operating Income $ 200 $ 166 20 %
Depreciation 206 236 (13)%
Amortization 111 114 (3)%
------- -------
Cash Operating Profit $ 517 $ 516 Flat
======= =======
(a) 2000 results include an adjustment reducing the Company's
annual effective tax rate to 33 percent and a nonrecurring
reduction in income tax expense of approximately $14 million.
(b) Per share data calculated prior to rounding to millions.
COCA-COLA ENTERPRISES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; In Millions Except Per Share Data)
Full Year
-----------------------------------
2000 (a) 1999 (a) Change
------- ------- --------
Net Operating Revenues $14,750 $14,406 2 %
Cost of Sales 9,083 9,015 1 %
------- -------
Gross Profit 5,667 5,391 5 %
Selling, Delivery, and
Administrative Expenses 4,541 4,552 - %
------- -------
Operating Income 1,126 839 34 %
Interest Expense, Net 791 751 5 %
Other Nonoperating Expense, Net 2 -
------- -------
Income Before Income Taxes 333 88
Income Tax Expense 97 29
------- -------
Net Income 236 59
Preferred Stock Dividends 3 3
------- -------
Net Income Applicable to
Common Shareowners $ 233 $ 56
======= =======
Basic Average Common Shares
Outstanding 419 425
======= =======
Basic Net Income Per
Share Applicable to Common
Shareowners (b) $ 0.56 $ 0.13
======= =======
Diluted Average Common Shares
Outstanding 429 436
======= =======
Diluted Net Income Per
Share Applicable to Common
Shareowners (b) $ 0.54 $ 0.13
======= =======
Cash Operating Profit Data:
Operating Income $ 1,126 $ 839 34 %
Depreciation 810 899 (10)%
Amortization 451 449 - %
------- -------
Cash Operating Profit $ 2,387 $ 2,187 9 %
======= =======
(a) 2000 results include a nonrecurring charge of $12 million
related to Great Britain, insurance proceeds of $20 million
related to the 1999 product recall in Europe, and a
$14 million nonrecurring reduction in income tax expense.
1999 results include nonrecurring product recall costs of
$103 million.
(b) Per share data calculated prior to rounding to millions.
COCA-COLA ENTERPRISES INC.
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions)
December 31, December 31,
2000 1999
------------ ------------
(Unaudited)
ASSETS
Current
Cash and cash investments $ 294 $ 141
Trade accounts receivable,
net 1,297 1,347
Inventories 602 669
Prepaid expenses and other
current assets 438 424
------------ ------------
Total Current Assets 2,631 2,581
Net Property, Plant, and Equipment 5,783 5,594
Franchises and Other Noncurrent
Assets, Net 13,748 14,555
------------ ------------
$22,162 $22,730
============ ============
LIABILITIES AND SHAREOWNERS' EQUITY
Current
Accounts payable and accrued
expenses $ 2,321 $ 2,389
Current portion of long-term debt 773 1,225
------------ ------------
Total Current Liabilities 3,094 3,614
Long-Term Debt, Less Current
Maturities 10,348 10,153
Retirement and Insurance Programs
And Other Long-Term Obligations 1,112 1,088
Long-Term Deferred Income Tax
Liabilities 4,774 4,951
Shareowners' Equity 2,834 2,924
------------ ------------
$22,162 $22,730
============ ============
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