Green Mountain Coffee Roasters, Inc. Reports Third Quarter Fiscal Year 2012 Results
Reports Q3 In-Line with Guidance; Refines 2012 Outlook; Announces
Board Authorization of
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Third Quarter Fiscal Year 2012 Performance Highlights |
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| ($ in millions except earnings per share) |
|
|
% Increase |
|||||
| Net Sales | $ | 869.2 | $ | 717.2 | 21% | |||
| Operating Income: | ||||||||
| GAAP | $ | 129.7 | $ | 119.3 | 9% | |||
| Non-GAAP | $ | 144.2 | $ | 131.9 | 9% | |||
| Net Income: | ||||||||
| GAAP | $ | 73.3 | $ | 56.3 | 30% | |||
| Non-GAAP | $ | 82.9 | $ | 75.7 | 9% | |||
| Diluted Income Per Share: | ||||||||
| GAAP | $ | 0.46 | $ | 0.37 | 25% | |||
| Non-GAAP | $ | 0.52 | $ | 0.49 | 6% | |||
| EBITDA - LTM(*) | $ | 714.9 | $ | 390.8 | 83% | |||
| Note: Complete GAAP to Non-GAAP reconciliation tables provided with this release. | ||||||||
| (*) EBITDA is earnings before interest, taxes, depreciation, and amortization. LTM is last twelve months. | ||||||||
"Our third quarter results demonstrate continued business strength and
solid fundamentals, particularly in light of the robust comparable
quarter we reported in the year ago period," said
"As we become larger, however, our sales growth trajectory will understandably moderate from hyper-growth to a level more in-line with other successful growth businesses," continued Blanford. "Based upon our current analysis of business fundamentals and the single-serve opportunity, we believe we will deliver annual sales growth in the range of 15% to 20% with annual earnings growth in the mid-teens over the longer term."
Board Authorized Share Repurchase
GMCR's Board of Directors has authorized the Company to repurchase up to
"Based on expectations for future growth and the Company's ability to
generate meaningful free cash flow in 2013 and 2014, the Board of
Directors has decided to strategically deploy its capital by authorizing
the repurchase of common shares from time to time depending on market
conditions," said
|
Third Quarter Fiscal Year 2012 Financial Review |
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|
Net Sales |
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| Net Sales by Product | Thirteen weeks ended | |||||||||||
| ($ in millions) |
|
|
$ Increase |
% Increase |
||||||||
| 2012 | 2011 |
(Decrease) |
(Decrease) |
|||||||||
| Single-Serve Packs | $ | 638.0 | $ | 485.4 | $ | 152.6 | 31% | |||||
| Brewers and Accessories | 139.1 | 105.4 | 33.7 | 32% | ||||||||
| Other Products and Royalties | 92.1 | 126.4 | (34.3 | ) | (27)% | |||||||
| Total Net Sales | $ | 869.2 | $ | 717.2 | $ | 152.0 | 21% | |||||
-
Approximately 89% of consolidated third quarter fiscal year 2012 net
sales were from sales of
Keurig ® Single Cup Brewers, single-serve packs, andKeurig ®-related accessories, with the remainder of net sales consisting primarily of sales of bagged coffee and sales from the office coffee services business.- The increase in single-serve pack sales was driven by a 28 percentage point increase in sales volume and a 3 percentage point increase in K-Cup® pack net price realization due primarily to price increases implemented during fiscal 2011 to offset higher green coffee and other input costs.
-
GMCR sold 1.4 million
Keurig ® Single Cup Brewers during the third quarter of fiscal year 2012. This brewer shipment number does not account for consumer returns. -
The Company estimates that the combination of brewer shipments
from GMCR and its licensed partners resulted in shipments of 1.5
million
Keurig ® Single Cup Brewers in the third quarter of fiscal year 2012. -
The third fiscal quarter's net sales included
$20.0 million of sales of new Vue® brewers and Vue® packs. According to data fromThe NPD Group , Vue® brewer sales were more than two times that of other coffee and espresso makers in its price category in the quarter endingJune 2012 . -
Other products and royalties declined year-over-year primarily as
a result of the sale of the Filterfresh on
October 3, 2011 .
Operating Metrics
-
In the third quarter of fiscal 2012, gross margin declined to 34.9%
from 36.8% in the prior year period.
- The decline compared to the prior year period was due in part to under-utilization of the Company's manufacturing base as a result of lower than expected manufacturing through-put primarily due to lower K-Cup® pack demand and lower-than-planned production levels. An increase in single-serve pack obsolescence also adversely impacted gross margin in the quarter.
- These adverse impacts were partially offset by the single-serve pack net price realization from price increases taken in fiscal 2011 to offset higher green coffee and other input costs experienced in fiscal 2011 and the first half of fiscal 2012, as well as by a decrease in green coffee costs in the third quarter of fiscal 2012 compared to the prior year period.
- The following table quantifies the changes in gross margin period to period:
|
Change Q3 |
|||
| Manufacturing base under-utilization | -320 bps | ||
| Net price realization | +250 bps | ||
| Increase in obsolescence | -120 bps | ||
| Favorable green coffee costs | +110 bps | ||
| Vue®-related impact | -110 bps | ||
| Lower warranty expense | +60 bps | ||
| Other | - 60 bps |
- GAAP operating margin of 14.9% of net sales in the third quarter of fiscal year 2012 decreased from 16.6% in the prior year period as a result of the lower gross margin.
-
Non-GAAP operating margin, which excludes
$3.0 million in expenses associated with theSEC inquiry and pending litigation in the quarter, as well as$11.5 million in amortization of identifiable intangibles related to the Company's acquisitions, was 16.6% of net sales in the third quarter of fiscal year 2012 compared to 18.4% in the prior year period. - The Company's effective income tax rate was 39.6% for the third quarter of fiscal year 2012 as compared to a 35.8% effective tax rate for the prior year period. The increase is attributable to the extension of the 2011 Federal R&D credit in the third quarter of the prior year and lower stock option activity in the current quarter.
- Diluted weighted average shares outstanding as of the end of the third quarter of fiscal year 2012 increased to 159.3 million from 153.3 million from the prior year period.
Balance Sheet & Cash Flow Highlights
"We are pleased with the strength of our balance sheet including our low
debt ratio," said
"Our higher overall inventory dollar balance in the third quarter of
fiscal 2012 compared to the same period in fiscal 2011 is largely driven
by increases in
| Balance Sheet & Cash Flow Highlights | |||||||||||||
| ($ in millions) |
|
|
$ Increase |
% Increase |
|||||||||
| 2012 | 2011 |
(Decrease) |
(Decrease) |
||||||||||
| Cash and cash equivalents | $ | 149.1 | $ | 106.8 | $ | 42.3 | 40% | ||||||
| Accounts receivable, net | $ | 265.9 | $ | 229.4 | $ | 36.5 | 16% | ||||||
| Inventories | $ | 667.0 | $ | 417.5 | $ | 249.5 | 60% | ||||||
| Raw materials & supplies | $ | 243.0 | $ | 116.9 | $ | 126.1 | 108% | ||||||
| Coffee | $ | 153.0 | $ | 70.8 | $ | 82.2 | 116% | ||||||
| Packaging & other raw materials | $ | 90.0 | $ | 46.1 | $ | 43.9 | 95% | ||||||
| Finished goods | $ | 424.0 | $ | 300.6 | $ | 123.4 | 41% | ||||||
| Brewers & accessories | $ | 301.5 | $ | 174.2 | $ | 127.3 | 73% | ||||||
| Single-serve packs | $ | 95.6 | $ | 103.0 | $ | (7.4 | ) | (7)% | |||||
| Other | $ | 26.9 | $ | 23.4 | $ | 3.5 | 15% | ||||||
| Debt outstanding and capital lease obligations | $ | 409.1 | $ | 421.9 | $ | (12.8 | ) | (3)% | |||||
| Thirty-nine weeks cash provided by operating activities | $ | 488.2 | $ | 174.7 | $ | 313.5 | 179% | ||||||
| Thirty-nine weeks free cash flow (*) | $ | 182.7 | $ | (0.8 | ) | $ | 183.5 | N/A | |||||
|
(*)Free cash flow is calculated by subtracting capital expenditures for fixed assets from net cash provided by operating activities as reported in the unaudited statement of cash flows. |
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Business Outlook and Other Forward-Looking Information
Company Estimates for Fourth Quarter and Fiscal Year 2012
In its guidance for its fourth quarter (which contains 14 weeks), the Company refined estimates for its fiscal year 2012.
For the fourth quarter of fiscal year 2012, the Company anticipates:
-
Total net sales in the range of
$889.9 million to $925.5 million , or net growth of 25% to 30%, from$711.9 million in the fourth quarter of fiscal year 2011. -
Fourth quarter 2012 non-GAAP earnings per diluted share in a range of
$0.45 to $0.50 per diluted share, excluding any acquisition-related transaction expenses; legal and accounting expenses related to theSEC inquiry and the Company's pending litigation; amortization of identifiable intangibles related to the Company's acquisitions; and any impact from anticipated Company share repurchases. -
We anticipate the fiscal 2012 fourth quarter tax rate to be similar to
the 37.7% year to date tax rate. Last year's fourth quarter tax rate
was 23.7% primarily attributable to the release of valuation
allowances related to a
$17.7 million capital loss carryforward and a$5.4 million net operating loss carryforward in the fourth quarter of fiscal 2011.
For its fiscal year 2012, the Company anticipates:
-
Total net sales in the range of
$3.79 billion to $3.84 billion , or net growth of 43% to 45%, from$2.65 billion in fiscal year 2011. -
Fiscal year 2012 non-GAAP earnings per diluted share in a range of
$2.21 to $2.26 per diluted share, excluding approximately$0.20 per share due to the amortization of identifiable intangibles related to the Company's acquisitions; any acquisition-related transaction expenses; legal and accounting expenses related to theSEC inquiry and the Company's pending litigation; any gain from the sale of the Filterfresh business; and any impact from anticipated Company share repurchases. -
Capital expenditures in the range of
$475 to $525 million , down from prior estimates of$525 to $575 million . - Slightly negative free cash flow for fiscal 2012.
Company Outlook for Fiscal Year 2013
The Company provided its outlook for its fiscal year 2013:
- Total net sales growth in the range of 15% to 20% over fiscal 2012.
-
Fiscal year 2013 non-GAAP earnings per diluted share in a range of
$2.55 to $2.65 per diluted share, excluding approximately$0.18 per share due to the amortization of identifiable intangibles related to the Company's acquisitions; any acquisition-related transaction expenses; legal and accounting expenses related to theSEC inquiry and the Company's pending litigation; and, any impact from anticipated Company share repurchases. -
Capital expenditures in the range of
$380 million to $430 million . -
Free cash flow in the range of
$100 million to $150 million .
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with generally
accepted accounting principles (GAAP), the Company provides non-GAAP
operating results that exclude certain charges or credits such as
transaction expenses related to the Company's acquisitions including the
foreign exchange impact of hedging the risk associated with the Canadian
dollar purchase price of the Van Houtte acquisition; any gain from sale
of the Filterfresh U.S.-based coffee services business; legal and
accounting expenses related to the
Conference Call and Webcast
About
As a leader in specialty coffee and coffee makers,
GMCR routinely posts information that may be of importance to investors
in the Investor Relations section of its website, including news
releases and its complete financial statements, as filed with the
Forward-Looking Statements
Certain information contained in this release, including statements
concerning expected performance such as those relating to net sales,
earnings, cost savings, acquisitions and brand marketing support, are
"forward-looking statements" within the meaning of Section 21E of the
Securities Exchange Act of 1934. Generally, these statements may be
identified by the use of words such as "may," "will," "would," "expect,"
"should," "anticipate," "estimate," "believe," "forecast," "intend,"
"plan" and similar expressions intended to identify forward-looking
statements. These statements may relate to: the expected impact of raw
material costs and our pricing actions on our results of operations and
gross margins, expected trends in net sales and earnings performance and
other financial measures, the expected productivity and working capital
improvements, the ability to maximize or successfully assert our
intellectual property rights, the success of introducing and producing
new product offerings, ability to attract and retain senior management,
the impact of foreign exchange fluctuations, the adequacy of internally
generated funds and existing sources of liquidity, such as the
availability of bank financing, the expected results of operations of
businesses acquired by us, our ability to issue debt or additional
equity securities, our expectations regarding purchasing shares of our
common stock under the existing authorizations, and the impact of the
inquiry initiated by the
These and other forward-looking statements are based on management's
current views and assumptions and involve risks and uncertainties that
could significantly affect expected results. Results may be materially
affected by external factors such as damage to our reputation or brand
name, business interruptions due to natural disasters or similar
unexpected events, actions of competitors, customer relationships and
financial condition, the ability to achieve expected cost savings and
margin improvements, the successful acquisition and integration of new
businesses, fluctuations in the cost and availability of raw and
packaging materials, changes in regulatory requirements, and global
economic conditions generally which would include the availability of
financing, interest, inflation rates and investment return on retirement
plan assets, as well as foreign currency fluctuations, risks associated
with our information technology systems, the threat of data breaches or
cyber-attacks, and other risks described in the Company's filings with
the
Actual results could differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or revise publicly, any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
GMCR-C
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| Unaudited Consolidated Statements of Operations | ||||||||
| (Dollars in thousands except per share data) | ||||||||
| Thirteen | Thirteen | |||||||
| weeks ended | weeks ended | |||||||
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| 2012 | 2011 | |||||||
| Net sales | $ | 869,194 | $ | 717,210 | ||||
| Cost of sales | 565,883 | 453,130 | ||||||
| Gross profit | 303,311 | 264,080 | ||||||
| Selling and operating expenses | 117,982 | 95,512 | ||||||
| General and administrative expenses | 55,601 | 49,258 | ||||||
| Operating income | 129,728 | 119,310 | ||||||
| Other income (expense), net | 229 | (233 | ) | |||||
| Loss on financial instruments, net | 3,032 | 482 | ||||||
| Gain on foreign currency, net | (5,068 | ) | (981 | ) | ||||
| Interest expense | (6,157 | ) | (29,830 | ) | ||||
| Income before income taxes | 121,764 | 88,748 | ||||||
| Income tax expense | (48,244 | ) | (31,778 | ) | ||||
| Net Income | $ | 73,520 | $ | 56,970 | ||||
| Net income attributable to noncontrolling interests | 224 | 622 | ||||||
| Net income attributable to GMCR | $ | 73,296 | $ | 56,348 | ||||
| Basic income per share: | ||||||||
| Basic weighted average shares outstanding | 155,459,690 | 147,663,350 | ||||||
| Net income per common share - basic | $ | 0.47 | $ | 0.38 | ||||
| Diluted income per share: | ||||||||
| Diluted weighted average shares outstanding | 159,299,578 | 153,344,389 | ||||||
| Net income per common share - diluted | $ | 0.46 | $ | 0.37 | ||||
|
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||||||||
| Unaudited Consolidated Statements of Operations | ||||||||
| (Dollars in thousands except per share data) | ||||||||
| Thirty-nine | Thirty-nine | |||||||
| weeks ended | weeks ended | |||||||
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|
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| 2012 | 2011 | |||||||
| Net sales | $ | 2,912,462 | $ | 1,939,016 | ||||
| Cost of sales | 1,959,509 | 1,288,481 | ||||||
| Gross profit | 952,953 | 650,535 | ||||||
| Selling and operating expenses | 370,445 | 253,546 | ||||||
| General and administrative expenses | 157,349 | 134,788 | ||||||
| Operating income | 425,159 | 262,201 | ||||||
| Other income (expense), net | 1,589 | 933 | ||||||
| Loss on financial instruments, net | (214 | ) | (11,819 | ) | ||||
| Gain on foreign currency, net | 1,231 | 4,643 | ||||||
| Gain on sale of subsidiary | 26,311 | - | ||||||
| Interest expense | (18,662 | ) | (52,560 | ) | ||||
| Income before income taxes | 435,414 | 203,398 | ||||||
| Income tax expense | (163,949 | ) | (78,171 | ) | ||||
| Net Income | $ | 271,465 | $ | 125,227 | ||||
| Net income attributable to noncontrolling interests | 724 | 1,095 | ||||||
| Net income attributable to GMCR | $ | 270,741 | $ | 124,132 | ||||
| Basic income per share: | ||||||||
| Basic weighted average shares outstanding | 155,071,117 | 143,606,691 | ||||||
| Net income per common share - basic | $ | 1.75 | $ | 0.86 | ||||
| Diluted income per share: | ||||||||
| Diluted weighted average shares outstanding | 159,364,440 | 149,357,480 | ||||||
| Net income per common share - diluted | $ | 1.70 | $ | 0.83 | ||||
|
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| Unaudited Consolidated Balance Sheets | ||||||||
| (Dollars in thousands) | ||||||||
|
|
|
|||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 138,988 | $ | 12,989 | ||||
| Restricted cash and cash equivalents | 10,096 | 27,523 | ||||||
|
Receivables, less uncollectible accounts and return allowances of
|
265,862 | 310,321 | ||||||
| Inventories | 667,005 | 672,248 | ||||||
| Income taxes receivable | 7,810 | 18,258 | ||||||
| Other current assets | 23,812 | 28,072 | ||||||
| Deferred income taxes, net | 45,598 | 36,231 | ||||||
| Current assets held for sale | - | 25,885 | ||||||
| Total current assets | 1,159,171 | 1,131,527 | ||||||
| Fixed assets, net | 846,323 | 579,219 | ||||||
| Intangibles, net | 496,793 | 529,494 | ||||||
| Goodwill | 791,197 | 789,305 | ||||||
| Other long-term assets | 43,646 | 47,759 | ||||||
| Long-term assets held for sale | - | 120,583 | ||||||
| Total assets | $ | 3,337,130 | $ | 3,197,887 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt and capital lease obligations | $ | 9,271 | $ | 6,669 | ||||
| Accounts payable | 215,153 | 265,511 | ||||||
| Accrued compensation costs | 37,913 | 43,260 | ||||||
| Accrued expenses | 108,085 | 92,120 | ||||||
| Income tax payable | 77,626 | 9,617 | ||||||
| Deferred income taxes, net | - | 243 | ||||||
| Other current liabilities | 23,827 | 34,613 | ||||||
| Current liabilities related to assets held for sale | - | 19,341 | ||||||
| Total current liabilities | 471,875 | 471,374 | ||||||
| Long-term debt and capital lease obligations | 399,841 | 575,969 | ||||||
| Deferred income taxes, net | 212,101 | 189,637 | ||||||
| Other long-term liabilities | 28,603 | 27,184 | ||||||
| Long-term liabilities related to assets held for sale | - | 474 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interests | 9,828 | 21,034 | ||||||
| Stockholders' equity: | ||||||||
|
Preferred stock, |
- | - | ||||||
|
Common stock, |
15,553 | 15,447 | ||||||
| Additional paid-in capital | 1,534,166 | 1,499,616 | ||||||
| Retained earnings | 678,891 | 411,727 | ||||||
| Accumulated other comprehensive income (loss) | (13,728 | ) | (14,575 | ) | ||||
| Total stockholders' equity | 2,214,882 | 1,912,215 | ||||||
| Total liabilities and stockholders' equity | $ | 3,337,130 | $ | 3,197,887 | ||||
|
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| Unaudited Consolidated Statements of Cash Flows | ||||||||
| (Dollars in thousands) | ||||||||
| Thirty-nine | Thirty-nine | |||||||
| weeks ended | weeks ended | |||||||
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| 2012 | 2011 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 271,465 | $ | 125,227 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 89,221 | 50,176 | ||||||
| Amortization of intangibles | 34,496 | 29,587 | ||||||
| Amortization deferred financing fees | 4,538 | 4,643 | ||||||
| Loss on extinguishment of debt | - | 19,732 | ||||||
| Unrealized gain of foreign currency | (535 | ) | (4,956 | ) | ||||
| Loss on disposal of fixed assets | 2,103 | 421 | ||||||
| Gain on sale of subsidiary, excluding transaction costs | (28,914 | ) | - | |||||
| Provision for doubtful accounts | 2,084 | 2,315 | ||||||
| Provision for sales returns | 83,170 | 48,755 | ||||||
| Unrealized loss on financial instruments, net | 112 | 7,671 | ||||||
| Tax benefit from exercise of non-qualified options and disqualified dispositions of incentive stock options | 4 | 38 | ||||||
| Excess tax benefits from equity-based compensation plans | (12,449 | ) | (29,175 | ) | ||||
| Deferred income taxes | 13,198 | 3,343 | ||||||
| Deferred compensation and stock compensation | 13,811 | 7,686 | ||||||
| Changes in assets and liabilities, net of effects of acquisition: | ||||||||
| Receivables | (37,895 | ) | (58,229 | ) | ||||
| Inventories | 6,464 | (118,113 | ) | |||||
| Income tax receivable/payable, net | 91,032 | 25,533 | ||||||
| Other current assets | 4,014 | 2,371 | ||||||
| Other long-term assets, net | (608 | ) | (11,552 | ) | ||||
| Accounts payable | (59,130 | ) | 49,134 | |||||
| Accrued compensation costs | (5,024 | ) | (1,106 | ) | ||||
| Accrued expenses | 15,341 | 12,054 | ||||||
| Other current liabilities | (3,909 | ) | (2,388 | ) | ||||
| Other long-term liabilities | 5,593 | 11,541 | ||||||
| Net cash provided by operating activities | 488,182 | 174,708 | ||||||
| Cash flows from investing activities: | ||||||||
| Change in restricted cash | (461 | ) | 98 | |||||
| Proceeds from notes receivable | 240 | 449 | ||||||
|
Acquisition of |
- | (907,835 | ) | |||||
| Proceeds from sale of subsidiary, net of cash transferred | 137,733 | - | ||||||
| Capital expenditures for fixed assets | (305,532 | ) | (175,474 | ) | ||||
| Proceeds from disposal of fixed assets | 340 | 850 | ||||||
| Other investing activities | - | (158 | ) | |||||
| Net cash used in investing activities | (167,680 | ) | (1,082,070 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net change in revolving line of credit | (208,678 | ) | 165,835 | |||||
| Proceeds from issuance of common stock under compensation plans | 8,392 | 9,577 | ||||||
| Proceeds from issuance of common stock for private placement | - | 291,096 | ||||||
| Cash distributions to redeemable noncontrolling interests shareholders | (513 | ) | (702 | ) | ||||
| Proceeds from issuance of common stock in public equity offering | - | 673,048 | ||||||
| Financing costs in connection with public equity offering | - | (25,685 | ) | |||||
| Excess tax benefits from equity-based compensation plans | 12,449 | 29,175 | ||||||
| Principal payments under capital lease obligations | (4,255 | ) | (7 | ) | ||||
| Proceeds from borrowings of long-term debt | - | 796,375 | ||||||
| Deferred financing fees | - | (45,821 | ) | |||||
| Repayment of long-term debt | (6,231 | ) | (906,708 | ) | ||||
| Net cash (used in) provided by financing activities | (198,836 | ) | 986,183 | |||||
| Change in cash balances included in current assets held for sale | 5,160 | (8,248 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (827 | ) | 1,164 | |||||
| Net increase in cash and cash equivalents | 125,999 | 71,737 | ||||||
| Cash and cash equivalents at beginning of period | 12,989 | 4,401 | ||||||
| Cash and cash equivalents at end of period | $ | 138,988 | $ | 76,138 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
|
Fixed asset purchases included in accounts payable and not disbursed at the end of each period |
$ | 34,293 | $ | 26,970 | ||||
| Non cash financing and investing activities: | ||||||||
| Fixed Assets acquired under capital lease obligations/vendor notes | $ | 44,174 | $ | - | ||||
|
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| GAAP to Non-GAAP Reconciliation | ||||||||
| (Dollars in thousands, except per share data) | ||||||||
|
Thirteen |
Thirteen |
|||||||
| Operating income | $ | 129,728 | $ | 119,310 | ||||
|
Expenses related to |
2,996 | 799 | ||||||
| Amortization of identifiable intangibles (2) | 11,475 | 11,794 | ||||||
| Non-GAAP operating income | $ | 144,199 | $ | 131,903 | ||||
|
Thirteen |
Thirteen |
|||||||
| Net income attributable to GMCR | $ | 73,296 | $ | 56,348 | ||||
| After tax: | ||||||||
|
Expenses related to |
1,759 | 513 | ||||||
| Amortization of identifiable intangibles (2) | 7,876 | 7,859 | ||||||
| Loss on extinguishment of debt (3) | - | 11,027 | ||||||
| Non-GAAP net income | $ | 82,931 | $ | 75,747 | ||||
|
Thirteen |
Thirteen |
|||||||
| Diluted income per share | $ | 0.46 | $ | 0.37 | ||||
| After tax: | ||||||||
|
Expenses related to |
0.01 | 0.00 | ||||||
| Amortization of identifiable intangibles (2) | 0.05 | 0.05 | ||||||
| Loss on extinguishment of debt (3) | - | 0.07 | ||||||
| Non-GAAP net income per share | $ | 0.52 | $ | 0.49 | ||||
| (1) |
Represents legal and accounting expenses related to the |
|||||||
| (2) | Represents the amortization of intangibles related to the Company's acquisitions classified as general and administrative expense. | |||||||
| (3) | Represents the write-off of debt issuance costs and original issue discount, net of tax, primarily associated with the extinguishment of the Term B loan under the Credit Agreement. | |||||||
|
|
|||||||||
| GAAP to Non-GAAP Reconciliation | |||||||||
| (Dollars in thousands, except per share data) | |||||||||
|
Thirty-nine |
Thirty-nine |
||||||||
| Operating income | $ | 425,159 | $ | 262,201 | |||||
| Acquisition-related expenses (1) | - | 10,573 | |||||||
|
Expenses related to |
4,811 | 7,193 | |||||||
| Amortization of identifiable intangibles (3) | 34,496 | 29,587 | |||||||
| Non-GAAP operating income | $ | 464,466 | $ | 309,554 | |||||
|
Thirty-nine |
Thirty-nine |
||||||||
| Net income attributable to GMCR | $ | 270,741 | $ | 124,132 | |||||
| After tax: | |||||||||
| Acquisition-related expenses (1) | - | 14,524 | |||||||
|
Expenses related to |
2,889 | 4,442 | |||||||
| Amortization of identifiable intangibles (3) | 23,658 | 19,514 | |||||||
| Loss on extinguishment of debt (4) | - | 11,027 | |||||||
| Gain on sale of subsidiary (5) | (16,685 | ) | - | ||||||
| Non-GAAP net income | $ | 280,603 | $ | 173,639 | |||||
|
Thirty-nine |
Thirty-nine |
||||||||
| Diluted income per share | $ | 1.70 | $ | 0.83 | |||||
| After tax: | |||||||||
| Acquisition-related expenses (1) | - | 0.10 | |||||||
|
Expenses related to |
0.02 | 0.03 | |||||||
| Amortization of identifiable intangibles (3) | 0.15 | 0.13 | |||||||
| Loss on extinguishment of debt (4) | - | 0.07 | |||||||
| Gain on sale of subsidiary (5) | (0.10 | ) | - | ||||||
| Non-GAAP net income per share | $ | 1.76 | * | $ | 1.16 | ||||
| * Does not sum due to rounding. | |||||||||
| (1) |
Represents direct acquisition-related expenses of |
||||||||
| (2) |
Represents legal and accounting expenses related to the |
||||||||
| (3) | Represents the amortization of intangibles related to the Company's acquisitions classified as general and administrative expense. | ||||||||
| (4) | Represents the write-off of debt issuance costs and original issue discount, net of tax, primarily associated with the extinguishment of the Term B loan under the Credit Agreement. | ||||||||
| (5) |
Represents the gain recognized on the sale of Filterfresh, net of
income taxes of |
||||||||
VP
IR & Corporate Comm
Investor.Services@GMCR.com
Source:
News Provided by Acquire Media