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 CHARLOTTE, N.C., Oct. 25 /PRNewswire/ -- Coca-Cola Bottling Co. Consolidated (NASDAQ-NMS: COKE) today reported net income applicable to common shareholders of $5.7 million, or $.62 per share, for the third quarter of 1993. For the first nine months of 1993, the company reported net income applicable to common shareholders of $13.1 million or $1.42 per share. These results compare to a loss of approximately $200,000, or $.02 per share, for the third quarter of 1992 and a loss of $2 million, or $.22 per share, for the first nine months of 1992. Both the third quarter and nine months results represent record earnings for the company. All above comparisons exclude one-time charges in the first quarter of 1992 associated with the adoption of SFAS 106 and SFAS 109.
 The reported financial results for the third quarter and first nine months of 1993 are not directly comparable to the same periods from 1992 due to several issues described below. Management believes the most relevant measure for comparing reported financial results for 1993 to 1992 is the trend in income applicable to common shareholders for the first nine months which has increased by $15.1 million, or $1.64 per share, in 1993 versus 1992. James L. Moore, president and chief executive officer, said that when viewed on an "apples-to-apples" basis, adjusting for all relevant changes, the company's franchise net sales have grown about 5 percent for both the third quarter and first nine months. While more than half of this growth reflects increased net selling prices, the company has also experienced modest volume growth. Operating cash flow, when similarly adjusted, was up about 25 percent for both the third quarter and the nine months ending September 1993.
 In addition to the record financial results, Moore said that the company strengthened its balance sheet considerably during the quarter. Long-term debt was reduced by over $100 million due largely to the Joint Venture transaction with The Coca-Cola Company (NYSE: KO) which was completed at the end of the second quarter. This debt reduction, along with lower interest rates and improved operating profitability, has resulted in a significant improvement in the company's interest coverage. For the third quarter this year, income from operations covered interest expense by 2.2 times versus 1.3 times in 1992, a 70 percent improvement. These balance sheet and coverage improvements significantly enhance the company's financial flexibility for the future.
 Moore attributed the lack of comparability between the 1993 and 1992 results to the joint venture, the timing of major holiday sales, changes in the corporate tax rate and the refinancing of preferred stock. The joint venture transaction reduced franchise sales as a result of the sale of certain territories to the joint venture. This reduction in sales was partially offset by a management fee and an increase in contract sales, which reflect the management and supply agreements with the joint venture. Operating expenses were reduced due to the transfer of selling costs associated with the territories that were sold to the joint venture. Amortization and interest expense were also lower reflecting the sale of franchise rights and the debt reduction associated with the proceeds from the sale of territories to the joint venture. In addition to the impact of the joint venture on the third quarter, comparisons were influenced by the Fourth of July holiday sales which primarily benefitted the second quarter this year as compared to the third quarter in 1992. This tends to understate the growth rates in sales and profit for the third quarter of 1993.
 As a result of the enactment of the Omnibus Budget Reconciliation Act of 1993, the company recorded an additional income tax charge of approximately $2.1 million to reflect the increase in the maximum corporate tax rate from 34 percent to 35 percent. Due to the company's significant increase in profitability and restructuring related to the joint venture, the company realized the benefit of some previously unrecognized tax credits which offset the $2.1 million charge. Additionally, as a result of the increase in profitability and the joint venture transaction, the company has reduced its expected effective annual tax rate to 40 percent to reflect the anticipated income tax expense for the year. Lastly, the company incurred preferred stock dividends in 1992 but had none in 1993 due to its fourth quarter 1992 refinancing of all preferred stock through the issuance of public debt.
 In Thousands (Except Per Share Data)
 Third Quarter Nine Months Ended
 1993 1992 10/3/93 9/27/92
 Net sales $181,893 $170,851 $530,666 $492,860
 Cost of products sold 108,758 98,417 302,054 281,627
 Gross margin 73,135 72,434 228,612 211,233
 S,G&A expenses 48,007 50,618 151,796 148,258
 Depreciation expense 5,755 5,377 17,403 17,108
 Amortization of goodwill
 and intangibles 3,144 4,500 11,766 13,393
 Income from operations 16,229 11,939 47,647 32,474
 Interest expense 7,292 9,250 23,795 27,098
 Other expense, net 430 393 2,130 1,531
 Income before income taxes and
 effect of accounting changes 8,507 2,296 21,722 3,845
 Federal and state income taxes 2,791 1,310 8,622 2,194
 Income before effect of
 accounting changes and
 preferred stock dividends 5,716 986 13,100 1,651
 Preferred stock dividends 1,182 3,679
 Income (loss) before effect of
 accounting changes 5,716 (196) 13,100 (2,028)
 Effect of accounting changes (116,199)
 Net income (loss) applicable
 to common shareholders $5,716 $(196) $13,100 $(118,227)
 Income (loss) per share:
 Income (loss) before effect
 of accounting changes $.62 $(.02) $1.42 $(.22)
 Effect of accounting changes (12.66)
 Net income (loss) applicable
 to common shareholders $.62 $(.02) $1.42 $(12.88)
 Net income (loss) per share
 after preferred dividends,
 plus amortization (A) $.96 $.47 $2.69 $1.24
 Weighted average number of
 Common and Class B Common
 shares outstanding 9,294 9,181 9,245 9,181
 (A) Excludes effect of accounting changes related to adoption of SFAS 106 and SFAS 109 in 1992.
 -0- 10/25/93
 /CONTACT: Lauren C. Steele, vice president-Corporate Affairs, of Coca-Cola Bottling Co. Consolidated, 704-551-4551/

CO: Coca-Cola Bottling Co. Consolidated ST: North Carolina IN: FOD SU: ERN

MM -- CH003 -- 6162 10/25/93 09:23 EDT
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Publication:PR Newswire
Date:Oct 25, 1993

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