ORLANDO, Fla., Jan. 27,
2016 /PRNewswire/ -- (NYSE: TUP) Tupperware Brands Corporation
today announced fourth quarter 2015 operating results.
Rick Goings, Chairman and CEO,
commented, "We had a disappointing quarter as we lapped a tough
comparison and continued to see an impact from economic and
political headwinds in many of our units. While I don't want to
take away from the strong performances in a number of units, our
internal actions did not overcome the impact of worse than expected
externals in some of our units."
Goings continued, "Given today's environment, we're making some
defensive moves to allow us to perform financially and to play
better offense in implementing our growth strategies. We remain
confident the strong fundamentals of our business model coupled
with these actions will set a path to success for our 3.1 million
global sales force, our associates and for delivery of value to our
shareholders."
Fourth Quarter Executive Summary
- Fourth quarter 2015 net sales were $592.1 million up 2% in local currency and down
13% in dollars. Emerging markets**, accounting for 63% of sales,
achieved a 4% increase in local currency. The most significant
contributions to the fourth quarter growth were in Argentina, Brazil, China, and Tupperware Mexico. Established
markets were down 1% in local currency, primarily from France and Italy, partially offset by good performance in
Germany and Tupperware United
States and Canada.
- GAAP net income of $58.1 million,
was down 29% versus prior year net income of $82.3 million. Excluding the impact of foreign
currency rates on the comparison, adjusted net income was down 1%
versus prior year. Adjusted diluted earnings per share of
$1.35 was 2
cents below the October outlook range including an
additional negative 5 cent impact
versus 2014 compared with the guidance from changes in foreign
exchange rates. Adjusted earnings per share was down 22% versus
last year in dollars, including a negative 36 cent impact from changes in exchange rates on
the comparison.
- Total sales force of 3.1 million was up 5% versus prior year at
the end of the quarter, and there were 2% more active sellers in
the quarter, the third consecutive quarter with a year-over-year
active seller increase.
Fourth Quarter Business Highlights
Europe: Strong increases by
the two South African businesses and Germany, offset by France, Italy
and Turkey
- Segment sales were down 3% in local currency (down 18% in
dollars).
- Emerging markets were down 2% in local currency. Tupperware
South Africa, up 14% and Avroy Shlain in South Africa, up 16% both with higher active
sellers, offset by Turkey, down
25% from lower productivity including impacts related to the
external environment.
- Established markets were down 3% in local currency.
Germany, up 9%, was offset by
France, down 11% and Italy, down 15%.
Asia Pacific: China up double-digits offset by results in
Indonesia, Korea, and Malaysia/Singapore
- Sales for the segment were down 3% in local currency (down 13%
in dollars).
- Emerging Markets were down 4% in local currency. China, up 18% was offset by Indonesia, down 4%, Malaysia/Singapore, down 13%, and Korea, down 21% from
lapping business to business sales from last year.
- Established markets were down 1% in local currency compared
with prior year. Nutrimetics Australia and New Zealand, up 10% on higher sales force
activity, offset by Tupperware Japan, down 14%.
Tupperware North America: Both Tupperware Mexico and
Tupperware United States and Canada leveraged strong fundamentals,
growing segment sales in local currency by 16%
- Segment sales up 16% in local currency (up 6% in dollars).
Tupperware Mexico sales up 25% on higher activity and productivity.
Sales force size up 7% compared with prior year.
- Tupperware United States and Canada local currency sales were up 10% on a
double-digit increase in active sellers. Sales force size closed
16% above prior year.
Beauty North America:
Segment sales were down 6% in local currency (down 19% in
dollars)
- BeautiControl local currency sales down 13% from lower sales
force activity in light of sales force compensation changes in the
second quarter.
- Fuller Mexico sales were down
4% in local currency from the prior year reflecting lower sales
force additions and activity. Total sales force size down 3% at the
end of the year.
South America: Leveraged 5%
larger sales force for higher volume along with inflation driven
price increases
- Segment sales up 22% in local currency (down 17% in dollars),
driven by increases in Argentina
and Brazil. Brazil was up 22% in local currency,
reflecting higher volume from a large sales force size advantage
and some pricing.
- Argentina was up 48% in local
currency, primarily due to inflation related higher prices.
- Segment's active sales force was up 1%. The 21 point difference
between the local currency sales and active seller comparisons
primarily reflected the higher prices throughout the segment as
well as improved productivity and a mix shift toward Brazil that has a larger than average order
size.
2016 Outlook (Unaudited)
Based on current business trends and foreign currency rates, the
Company's first quarter and fiscal 2016 full year guidance is
provided below.
Company Level
|
13 Weeks
Ending
|
|
13 Weeks
|
|
53 Weeks
Ending
|
|
52 Weeks
|
|
Mar 26,
2016
|
|
Ended
|
|
Dec 31,
2016
|
|
Ended
|
|
Low
|
High
|
|
Mar 28,
2015
|
|
Low
|
High
|
|
Dec 26,
2015
|
|
|
|
|
|
|
|
|
|
|
USD Sales Growth vs
Prior Year
|
(12)%
|
|
(10)
|
%
|
|
(12)
|
%
|
|
(6)
|
%
|
(4)
|
%
|
|
(12)
|
%
|
GAAP EPS
|
$0.74
|
$0.79
|
|
$0.59
|
|
$3.81
|
$3.91
|
|
$3.69
|
GAAP Pre-Tax
ROS
|
9.7
|
%
|
10.2
|
%
|
|
7.1
|
%
|
|
11.9
|
%
|
12.0
|
%
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Local
Currency+ Sales Growth vs Prior
Year
|
1
|
%
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
5
|
%
|
|
4
|
%
|
EPS Excluding
Items*
|
$0.81
|
$0.86
|
|
$1.02
|
|
$4.07
|
$4.17
|
|
$4.37
|
Pre-Tax ROS Excluding
Items*
|
10.7
|
%
|
11.1
|
%
|
|
11.8
|
%
|
|
12.8
|
%
|
12.9
|
%
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
FX Impact on EPS
Comparison (a)
|
($0.23)
|
|
($0.23)
|
|
|
|
|
($0.58)
|
($0.58)
|
|
|
|
(a)
|
Impact of changes in
foreign currency versus prior year are updated monthly and posted
at: Tupperware Brands Foreign Exchange Translation Impact
Update.
|
Full Year 2016
- Fiscal year includes a 53rd week estimated to have a positive
impact on the year-over-year comparison of 1 point.
- Tax rate excluding items is expected to be 25.5%, and 24.8% on
a U.S. GAAP basis.
- Excludes land sales that may occur.
Segment Level
- For the full year, sales in local currency are expected to be
about even in Europe and Beauty
North America, up low-single digit in Asia Pacific, up 6-8% in Tupperware North
America and to increase in the mid-to-high teens in South America.
- Pre-tax profit in each segment in local currency is expected to
improve by about 25% of incremental sales in local currency.
Dividend Declaration
The Company's Board of Directors declared today the Company's
regular quarterly dividend. The dividend declared was 68 cents per share, even with the previous
quarter. It is payable on April 4,
2016 to shareholders of record as of March 18, 2016.
* See Non-GAAP Financial Measures Reconciliation Schedules.
** The Company classifies Established Market Units as those
operating in Western Europe,
including Scandinavia, the United
States, Canada,
Australia and Japan and its remaining units as Emerging
Market Units.
+ Local currency changes are measured by comparing
current year results with those of the prior year translated at the
current year's foreign exchange rates.
Fourth Quarter Earnings Conference Call
Tupperware Brands will conduct a conference call today,
Wednesday, January 27, 2016, at 8:30 am
Eastern time. The conference call will be webcast and
accessible, along with a copy of this news release, on
www.tupperwarebrands.com.
Tupperware Brands Corporation, through an independent
sales force of 3.1 million, is the leading global marketer of
innovative, premium products across multiple brands utilizing a
relationship based selling method. Product brands and categories
include design-centric preparation, storage and serving solutions
for the kitchen and home through the Tupperware brand and beauty
and personal care products through the Avroy Shlain, BeautiControl,
Fuller Cosmetics, NaturCare, Nutrimetics, and Nuvo brands.
The Company's stock is listed on the New York Stock Exchange
(NYSE: TUP). Statements contained in this release, which are not
historical fact and use predictive words such as "outlook",
"guidance", "expects" or "target" are forward-looking
statements. These statements involve risks and uncertainties
that include recruiting and activity of the Company's independent
sales forces relating to governmental actions and otherwise, the
success of new product introductions and promotional programs,
governmental approvals of materials for use in food containers and
beauty and personal care products, the success of buyers in
obtaining financing or attracting tenants for commercial and
residential developments, the effects of economic and political
conditions generally and foreign exchange risk in particular and
other risks detailed in the Company's periodic reports as filed in
accordance with the Securities Exchange Act of 1934 as amended.
The Company updates each month the impact of changes in foreign
exchange rates versus the prior year, posting it on, Tupperware
Brands Foreign Exchange Translation Impact Update. Other than
updating for changes in foreign currency exchange rates, the
Company does not intend to update forward-looking information,
except through its quarterly earnings releases, unless it expects
diluted earnings per share for the current quarter, excluding items
impacting comparability and changes versus its guidance of the
impact of changes in foreign exchange rates, to be significantly
below its previous guidance.
Non-GAAP Financial Measures
The Company has utilized non-GAAP financial measures in this
release, which are provided to assist readers' understanding of the
Company's results of operations. These amounts, identified as items
impacting comparability, at times materially impact the
comparability of the Company's results of operations. The adjusted
information is intended to be indicative of Tupperware Brands'
primary operations, and to assist readers in evaluating performance
and analyzing trends across periods. These results should be
considered in addition to, not as a substitute for, results
reported in accordance with GAAP.
The non-GAAP financial measures exclude gains from the sale of
property, plant and equipment and insurance settlements related to
casualty losses, inventory obsolescence in conjunction with
decisions to exit or significantly restructure businesses, asset
retirement obligations, re-engineering and fixed asset impairment
charges and beginning in 2015 pension settlements. While the
Company is engaged in a multi-year program to sell land adjacent to
its Orlando, Florida headquarters,
and also disposes of other excess land and facilities periodically,
these activities are not part of the Company's primary business
operations. Additionally, amounts recognized in any given
period are not indicative of amounts that may be recognized in any
particular future period. For this reason, these
amounts are excluded as indicated. The Company excludes
significant charges related to casualty losses caused by
significant weather events, fires or similar circumstances. It also
excludes any related gains resulting from the settlement of
associated insurance claims. While these types of events can and do
recur periodically, they are excluded from indicated financial
information due to their distinction from ongoing business
operations, inherent volatility and impact on the comparability of
earnings across quarters. Also, the Company periodically
records exit costs accounted for using the applicable accounting
guidance for exit or disposal cost obligations and other amounts
related to rationalizing its supply chain operations and other
restructuring activities, including upon liquidation of operations
in a country the recognition in income of amounts previously
recorded in equity as a cumulative translation adjustment, and
pension settlements, and believes these amounts are similarly
volatile and impact the comparability of earnings across
quarters. Therefore, they are also excluded from indicated
financial information to provide what the Company believes
represents a useful measure for analysis and predictive
purposes.
The Company believes that excluding from reported financial
information costs incurred in connection with a significant change
in its capital structure that is of a nature that would be expected
to recur sporadically, also provides a useful measure for analysis
and predictive purposes. The Venezuelan government over the
last several years has severely restricted the ability to translate
bolivars into U.S. dollars and has mandated at various levels the
exchange rate for U.S. dollars. Due to the sporadic timing and
magnitude of changes in the mandated exchange rates, the Company's
non-GAAP measures exclude for analysis and predictive purposes, the
impact from devaluations on the bolivar denominated net monetary
assets and other balance sheet positions that impact near term
income since they appear in the income statement at the exchange
rate at which they were originally translated rather than the
exchange rate at which current operating activity is being
translated, as well as gains from obtaining U.S. dollars at
exchange rates more favorable than those at which the bolivars were
last recorded.
The Company has also elected to present financial measures
excluding the impact of amortizing the purchase accounting carrying
value of certain definite-lived intangible assets, primarily the
value of its Fuller trade name recorded in connection with the
Company's December 2005 acquisition
of the direct selling businesses of Sara Lee Corporation. The
amortization expense related to these assets will continue for
several years. Similarly, in connection with its evaluation
of the carrying value of acquired intangible assets and goodwill,
the Company has periodically recognized impairment charges.
The Company believes that these types of non-cash charges will not
be representative in any single reporting period of amounts
recorded in prior reporting periods or expected to be recorded in
future reporting periods. Therefore, they are excluded from
indicated financial information to also provide a useful measure
for analysis and predictive purposes.
As the impact of changes in exchange rates is an important
factor in understanding period-to-period comparisons, the Company
believes the presentation of results on a local currency basis, in
addition to reported results, helps improve readers' ability to
understand the Company's operating results and evaluate performance
in comparison with prior periods. The Company presents local
currency information that compares results between periods as if
current period exchange rates had been the exchange rates in the
prior period. This includes the translation impact on sales and
earnings from currency devaluations. The Company uses results
on a local currency basis as one measure to evaluate
performance. The Company generally refers to such
amounts as calculated on a local currency basis, as restated or
excluding the impact of foreign currency. These results should be
considered in addition to, not as a substitute for, results
reported in accordance with GAAP. Results on a local currency basis
may not be comparable to similarly titled measures used by other
companies and are not measures of performance presented in
accordance with GAAP.
In information included with this release, the Company has
referred to Adjusted EBITDA and a Debt/Adjusted EBITDA ratio, which
are non-GAAP financial measures used in the Company's credit
agreement. The Company uses these measures in its capital
allocation decision process and in discussions with investors,
analysts and other interested parties and therefore believes it is
useful to disclose this amount and ratio. The Company's calculation
of these measures is in accordance with its credit agreement, and
is set forth in the reconciliation from GAAP amounts in an
attachment to this release; however, the reader is cautioned that
other companies define these measures in different ways, and
consequently they will likely not be comparable with similarly
labeled amounts disclosed by others.
TUPPERWARE
BRANDS CORPORATION
|
FOURTH QUARTER
SALES STATISTICS*
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
All
Units
|
Reported
Sales
Inc/(Dec)%
|
Restated+
Sales
Inc/(Dec)%
|
|
Active
Sales
Force
|
Inc/(Dec)
vs. Q4
'14
%
|
|
Total
Sales
Force
|
Inc/(Dec)
vs. Q4
'14
%
|
|
Europe
|
(18)
|
(3)
|
|
100,876
|
|
8
|
a
|
708,486
|
|
7
|
|
Asia
Pacific
|
(13)
|
(3)
|
|
252,183
|
|
(1)
|
|
1,123,389
|
|
4
|
b
|
TW North
America
|
6
|
16
|
|
114,498
|
|
20
|
|
393,143
|
|
9
|
d
|
Beauty North
America
|
(19)
|
(6)
|
|
211,465
|
|
(5)
|
|
430,757
|
|
(4)
|
|
South
America
|
(17)
|
22
|
|
109,255
|
|
1
|
e
|
420,116
|
|
5
|
|
Total All
Units
|
(13)
|
2
|
|
788,277
|
|
2
|
|
3,075,891
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
Emerging Market
Units
|
|
|
|
|
|
|
|
|
|
Europe
|
(23)
|
(2)
|
|
69,407
|
|
12
|
a
|
517,755
|
|
10
|
|
Asia
Pacific
|
(13)
|
(4)
|
|
214,831
|
|
(2)
|
|
996,937
|
|
4
|
b
|
TW North
America
|
5
|
25
|
|
102,218
|
|
21
|
|
293,477
|
|
7
|
d
|
Beauty North
America
|
(20)
|
(4)
|
|
188,767
|
|
(5)
|
|
370,442
|
|
(3)
|
|
South
America
|
(17)
|
22
|
|
109,255
|
|
1
|
e
|
420,116
|
|
5
|
|
Total Emerging Market
Units
|
(14)
|
4
|
|
684,478
|
|
2
|
|
2,598,727
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
Established Market
Units
|
|
|
|
|
|
|
|
|
|
Europe
|
(16)
|
(3)
|
|
31,469
|
|
(1)
|
|
190,731
|
|
2
|
|
Asia
Pacific
|
(13)
|
(1)
|
|
37,352
|
|
6
|
c
|
126,452
|
|
6
|
|
TW North
America
|
6
|
10
|
|
12,280
|
|
12
|
|
99,666
|
|
16
|
|
Beauty North
America
|
(14)
|
(13)
|
|
22,698
|
|
(11)
|
|
60,315
|
|
(10)
|
|
South
America
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
Total Established
Market Units
|
(10)
|
(1)
|
|
103,799
|
|
—
|
|
477,164
|
|
4
|
|
* Sales force statistics as collected by the Company and, in
some cases, provided by distributors and sales force. The
Company classifies Established Market Units as those operating in
Western Europe, including
Scandinavia, the United States,
Canada, Australia and Japan, and its remaining units as Emerging
Market Units. Active Sales Force is defined as the average
number of people ordering in each cycle over the course of the
quarter, and Total Sales Force is defined as the number of sales
force members of the units as of the end of the quarter.
+ Local currency, or restated, changes are measured by
comparing current year results with those of the prior year
translated at the current year's foreign exchange rates.
Notes
a The decrease in local currency sales in
Europe, despite an active seller
increase, reflected the curtailment of shipments to Egypt due to slow collections and currency
controls. It also reflected, in Turkey, the timing of a promoted period, the
nature of activity driving programs used, and smaller order sizes
in light of qualifications used and the external environment.
b The decrease in active sellers, despite a total seller
increase in Asia Pacific emerging
markets, reflected most significantly a larger advantage in total
than active sellers in the Philippines. There were good sales
force additions in the quarter in the
Philippines, which impacted the active seller comparison as
this group is onboarded into the business. As well, there was some
impact on supply to outer islands due to government restrictions
related to the Asia Pacific Economic Cooperation conference held in
the country. Based on its model, the Philippine business has an
outsized impact on the active seller comparison in relation to its
sales.
c More active sellers with lower sales in Asia Pacific established markets primarily
reflected a mix shift in the quarter toward the segment's beauty
businesses that have lower than average order sizes.
d The larger increase in active sellers compared with
total sellers in Tupperware North America emerging markets
reflected good results under Tupperware Mexico's onboarding
approach, along with its product and promotional programs to spur
activity.
e The much higher local currency sales increase in
South America, compared with the
increase in active sellers, primarily reflected price increases
throughout the segment and increased productivity in Brazil, as well as a mix shift away from
Venezuela that has a lower than
average order size and toward Brazil that has a larger than average order
size.
TUPPERWARE
BRANDS CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
(In millions,
except per share data)
|
13 Weeks
Ended
|
|
52 Weeks
Ended
|
|
Dec 26,
2015
|
|
Dec 27,
2014
|
|
Dec 26,
2015
|
|
Dec 27,
2014
|
Net sales
|
$
|
592.1
|
|
|
$
|
679.9
|
|
|
$
|
2,283.8
|
|
|
$
|
2,606.1
|
|
Cost of products
sold
|
191.2
|
|
|
227.5
|
|
|
744.4
|
|
|
884.0
|
|
Gross
margin
|
400.9
|
|
|
452.4
|
|
|
1,539.4
|
|
|
1,722.1
|
|
|
|
|
|
|
|
|
|
Delivery, sales and
administrative expense
|
305.6
|
|
|
331.3
|
|
|
1,217.6
|
|
|
1,346.1
|
|
Re-engineering and
impairment charges
|
2.3
|
|
|
2.7
|
|
|
20.3
|
|
|
11.0
|
|
Gains on disposal of
assets
|
0.3
|
|
|
0.4
|
|
|
13.7
|
|
|
2.7
|
|
Operating
income
|
93.3
|
|
|
118.8
|
|
|
315.2
|
|
|
367.7
|
|
|
|
|
|
|
|
|
|
Interest
income
|
0.9
|
|
|
1.0
|
|
|
2.4
|
|
|
3.0
|
|
Interest
expense
|
11.0
|
|
|
10.6
|
|
|
47.6
|
|
|
46.5
|
|
Other expense
(income), net
|
1.5
|
|
|
(0.3)
|
|
|
10.1
|
|
|
26.0
|
|
Income before income
taxes
|
81.7
|
|
|
109.5
|
|
|
259.9
|
|
|
298.2
|
|
Provision for income
taxes
|
23.6
|
|
|
27.2
|
|
|
74.1
|
|
|
83.8
|
|
Net income
|
$
|
58.1
|
|
|
$
|
82.3
|
|
|
$
|
185.8
|
|
|
$
|
214.4
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
1.16
|
|
|
$
|
1.65
|
|
|
$
|
3.72
|
|
|
$
|
4.28
|
|
Diluted earnings per
share
|
$
|
1.15
|
|
|
$
|
1.63
|
|
|
$
|
3.69
|
|
|
$
|
4.20
|
|
|
|
|
TUPPERWARE
BRANDS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
52 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
Dec 26,
2015
|
|
Dec 27,
2014
|
|
%
|
|
%
|
|
Exchange
|
|
Dec 26,
2015
|
|
Dec 27,
2014
|
|
%
|
|
%
|
|
Exchange
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
159.7
|
|
|
$
|
194.0
|
|
|
(18)
|
|
(3)
|
|
$
|
(29.9)
|
|
|
$
|
604.9
|
|
|
$
|
730.3
|
|
|
(17)
|
|
—
|
|
$
|
(125.3)
|
|
Asia
Pacific
|
200.7
|
|
|
230.2
|
|
|
(13)
|
|
(3)
|
|
(23.0)
|
|
|
779.0
|
|
|
849.9
|
|
|
(8)
|
|
1
|
|
(81.3)
|
|
TW North
America
|
95.5
|
|
|
90.4
|
|
|
6
|
|
16
|
|
(8.0)
|
|
|
353.7
|
|
|
349.9
|
|
|
1
|
|
11
|
|
(30.4)
|
|
Beauty North
America
|
57.7
|
|
|
70.9
|
|
|
(19)
|
|
(6)
|
|
(9.3)
|
|
|
240.0
|
|
|
290.9
|
|
|
(17)
|
|
(6)
|
|
(35.9)
|
|
South
America
|
78.5
|
|
|
94.4
|
|
|
(17)
|
|
22
|
|
(30.2)
|
|
|
306.2
|
|
|
385.1
|
|
|
(20)
|
|
25
|
|
(140.2)
|
|
|
$
|
592.1
|
|
|
$
|
679.9
|
|
|
(13)
|
|
2
|
|
$
|
(100.4)
|
|
|
$
|
2,283.8
|
|
|
$
|
2,606.1
|
|
|
(12)
|
|
4
|
|
$
|
(413.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
profit (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
31.7
|
|
|
$
|
43.7
|
|
|
(27)
|
|
(14)
|
|
$
|
(6.5)
|
|
|
$
|
93.3
|
|
|
$
|
118.2
|
|
|
(21)
|
|
(5)
|
|
$
|
(19.6)
|
|
Asia
Pacific
|
51.2
|
|
|
58.2
|
|
|
(12)
|
|
(2)
|
|
(5.9)
|
|
|
175.0
|
|
|
191.0
|
|
|
(8)
|
|
1
|
|
(17.7)
|
|
TW North
America
|
18.9
|
|
|
18.9
|
|
|
—
|
|
13
|
|
(2.2)
|
|
|
67.4
|
|
|
68.3
|
|
|
(1)
|
|
12
|
|
(8.3)
|
|
Beauty North
America
|
(0.9)
|
|
|
0.2
|
|
|
—
|
|
(7)
|
|
(0.9)
|
|
|
2.3
|
|
|
1.3
|
|
|
82
|
|
+
|
|
(4.6)
|
|
South
America
|
16.7
|
|
|
18.5
|
|
|
(10)
|
|
39
|
|
(6.4)
|
|
|
46.5
|
|
|
27.1
|
|
|
71
|
|
+
|
|
(33.8)
|
|
|
117.6
|
|
|
139.5
|
|
|
(16)
|
|
—
|
|
(21.9)
|
|
|
384.5
|
|
|
405.9
|
|
|
(5)
|
|
20
|
|
(84.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(23.8)
|
|
|
(18.1)
|
|
|
33
|
|
21
|
|
(1.7)
|
|
|
(72.8)
|
|
|
(55.9)
|
|
|
31
|
|
15
|
|
(7.7)
|
|
Gains on disposal of
assets
|
0.3
|
|
|
0.4
|
|
|
(29)
|
|
(29)
|
|
—
|
|
|
13.7
|
|
|
2.7
|
|
|
+
|
|
+
|
|
—
|
|
Re-engineering and
impairment charges
|
(2.3)
|
|
|
(2.7)
|
|
|
(16)
|
|
(16)
|
|
—
|
|
|
(20.3)
|
|
|
(11.0)
|
|
|
84
|
|
84
|
|
—
|
|
Interest expense,
net
|
(10.1)
|
|
|
(9.6)
|
|
|
5
|
|
5
|
|
—
|
|
|
(45.2)
|
|
|
(43.5)
|
|
|
4
|
|
4
|
|
—
|
|
Income before
taxes
|
81.7
|
|
|
109.5
|
|
|
(25)
|
|
(5)
|
|
(23.6)
|
|
|
259.9
|
|
|
298.2
|
|
|
(13)
|
|
26
|
|
(91.7)
|
|
Provision for income
taxes
|
23.6
|
|
|
27.2
|
|
|
(13)
|
|
10
|
|
(5.8)
|
|
|
74.1
|
|
|
83.8
|
|
|
(12)
|
|
21
|
|
(22.4)
|
|
Net income
|
$
|
58.1
|
|
|
$
|
82.3
|
|
|
(29)
|
|
(10)
|
|
$
|
(17.8)
|
|
|
$
|
185.8
|
|
|
$
|
214.4
|
|
|
(13)
|
|
28
|
|
$
|
(69.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share (diluted)
|
$
|
1.15
|
|
|
$
|
1.63
|
|
|
(29)
|
|
(9)
|
|
$
|
(0.36)
|
|
|
$
|
3.69
|
|
|
$
|
4.20
|
|
|
(12)
|
|
30
|
|
$
|
(1.36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares
|
50.5
|
|
|
50.6
|
|
|
|
|
|
|
|
|
50.4
|
|
|
51.0
|
|
|
|
|
|
|
|
* 2015 actual compared with 2014 translated at 2015 exchange
rates
+ Greater than 100% increase
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(UNAUDITED)
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks Ended Dec
26, 2015
|
|
13 Weeks Ended Dec
27, 2014
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
Segment
profit (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
31.7
|
|
|
$
|
0.5
|
|
a,b
|
$
|
32.2
|
|
|
$
|
43.7
|
|
|
$
|
—
|
|
|
$
|
43.7
|
|
Asia
Pacific
|
51.2
|
|
|
1.0
|
|
a,b
|
52.2
|
|
|
58.2
|
|
|
0.7
|
|
a
|
58.9
|
|
TW North
America
|
18.9
|
|
|
0.4
|
|
b
|
19.3
|
|
|
18.9
|
|
|
—
|
|
|
18.9
|
|
Beauty North
America
|
(0.9)
|
|
|
2.0
|
|
a,b
|
1.1
|
|
|
0.2
|
|
|
2.1
|
|
a,e
|
2.3
|
|
South
America
|
16.7
|
|
|
1.9
|
|
a,c
|
18.6
|
|
|
18.5
|
|
|
0.4
|
|
a,c
|
18.9
|
|
|
117.6
|
|
|
5.8
|
|
|
123.4
|
|
|
139.5
|
|
|
3.2
|
|
|
142.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(23.8)
|
|
|
—
|
|
|
(23.8)
|
|
|
(18.1)
|
|
|
—
|
|
|
(18.1)
|
|
Gains on disposal of
assets
|
0.3
|
|
|
(0.3)
|
|
d
|
—
|
|
|
0.4
|
|
|
(0.4)
|
|
|
—
|
|
Re-engineering and
impairment charges
|
(2.3)
|
|
|
2.3
|
|
e
|
—
|
|
|
(2.7)
|
|
|
2.7
|
|
e
|
—
|
|
Interest expense,
net
|
(10.1)
|
|
|
—
|
|
|
(10.1)
|
|
|
(9.6)
|
|
|
—
|
|
|
(9.6)
|
|
Income before
taxes
|
81.7
|
|
|
7.8
|
|
|
89.5
|
|
|
109.5
|
|
|
5.5
|
|
|
115.0
|
|
Provision for income
taxes
|
23.6
|
|
|
(2.5)
|
|
f
|
21.1
|
|
|
27.2
|
|
|
1.0
|
|
f
|
28.2
|
|
Net income
|
$
|
58.1
|
|
|
$
|
10.3
|
|
|
$
|
68.4
|
|
|
$
|
82.3
|
|
|
$
|
4.5
|
|
|
$
|
86.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share (diluted)
|
$
|
1.15
|
|
|
$
|
0.20
|
|
|
$
|
1.35
|
|
|
$
|
1.63
|
|
|
$
|
0.09
|
|
|
$
|
1.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 Weeks Ended Dec
26, 2015
|
|
52 Weeks Ended Dec
27, 2014
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
93.3
|
|
|
$
|
0.5
|
|
a,b
|
$
|
93.8
|
|
|
$
|
118.2
|
|
|
$
|
0.1
|
|
a
|
$
|
118.3
|
|
Asia
Pacific
|
175.0
|
|
|
2.9
|
|
a,b
|
177.9
|
|
|
191.0
|
|
|
3.1
|
|
a,e
|
194.1
|
|
TW North
America
|
67.4
|
|
|
0.4
|
|
b
|
67.8
|
|
|
68.3
|
|
|
—
|
|
|
68.3
|
|
Beauty North
America
|
2.3
|
|
|
7.4
|
|
a,b
|
9.7
|
|
|
1.3
|
|
|
10.5
|
|
a,e
|
11.8
|
|
South
America
|
46.5
|
|
|
15.4
|
|
a,c
|
61.9
|
|
|
27.1
|
|
|
43.0
|
|
a,c
|
70.1
|
|
|
384.5
|
|
|
26.6
|
|
|
411.1
|
|
|
405.9
|
|
|
56.7
|
|
|
462.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(72.8)
|
|
|
—
|
|
|
(72.8)
|
|
|
(55.9)
|
|
|
—
|
|
|
(55.9)
|
|
Gains on disposal of
assets
|
13.7
|
|
|
(13.7)
|
|
d
|
—
|
|
|
2.7
|
|
|
(2.7)
|
|
d
|
—
|
|
Re-engineering and
impairment charges
|
(20.3)
|
|
|
20.3
|
|
e
|
—
|
|
|
(11.0)
|
|
|
11.0
|
|
e
|
—
|
|
Interest expense,
net
|
(45.2)
|
|
|
—
|
|
|
(45.2)
|
|
|
(43.5)
|
|
|
—
|
|
|
(43.5)
|
|
Income before
taxes
|
259.9
|
|
|
33.2
|
|
|
293.1
|
|
|
298.2
|
|
|
65.0
|
|
|
363.2
|
|
Provision for income
taxes
|
74.1
|
|
|
(1.5)
|
|
f
|
72.6
|
|
|
83.8
|
|
|
4.8
|
|
f
|
88.6
|
|
Net income
|
$
|
185.8
|
|
|
$
|
34.7
|
|
|
$
|
220.5
|
|
|
$
|
214.4
|
|
|
$
|
60.2
|
|
|
$
|
274.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share (diluted)
|
$
|
3.69
|
|
|
$
|
0.68
|
|
|
$
|
4.37
|
|
|
$
|
4.20
|
|
|
$
|
1.18
|
|
|
$
|
5.38
|
|
a Amortization of intangibles of acquired beauty
units.
b Pension settlement costs.
c As a result of step devaluations in the Venezuelan
bolivar from 6.3 bolivars per U.S.
dollar to 10.8, 50 and 172 bolivars
per U.S dollar as of the end of March
2014, June 2014 and
January 2015 and the ongoing
devaluation to 199 bolivars per U.S.
dollar as of the end of December
2015, the Company had negative impacts of $1.8 million and $14.9
million in the fourth quarter and December year-to-date
periods of 2015 and $0.2 million and
$42.4 million in the fourth quarter
and December year-to-date periods of 2014. These amounts
related to expense from re-measuring bolivar denominated net
monetary assets at the lower exchange rates at the times of
devaluations, along with the impact of recording in income amounts
on the balance sheet when the devaluations occurred, primarily
inventory, at the exchange rates at the time the amounts were
purchased, rather than the exchange rates in use when they were
included in income. Also includes, in the December
year-to-date period of 2014, $5.6
million the Company received for approximately 51 million bolivars at an average exchange rate
of 9.1 bolivars per U.S. dollar,
which generated an exchange gain of $4.6
million.
d Gains on disposal of assets is primarily from
transactions related to land held near the Orlando, FL headquarters.
e In both years, re-engineering and impairment charges
were primarily related to severance costs incurred for headcount
reduction in several of the Company's operations in connection with
changes in its management and organizational structures. Also
included in the year-to-date amounts were a $13.5 million fixed asset impairment in
Venezuela in 2015, and in 2014,
costs related to the decision to cease operating the Armand
Dupree business in the United
States, the Nutrimetics business in Thailand and a manufacturing plant in
India.
f Provision for income taxes represents the net tax
impact of adjusted amounts.
See note regarding non-GAAP financial measures in the attached
press release.
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
52 Weeks
Ended
|
|
52 Weeks
Ended
|
|
December 26,
2015
|
|
December 27,
2014
|
Operating
Activities:
|
|
|
|
Net cash provided by
operating activities
|
$
|
227.2
|
|
|
$
|
284.1
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(62.6)
|
|
|
(69.4)
|
|
Proceeds from
disposal of property, plant & equipment
|
18.0
|
|
|
7.1
|
|
Net cash used in
investing activities
|
(44.6)
|
|
|
(62.3)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Dividend payments to
shareholders
|
(138.0)
|
|
|
(135.5)
|
|
Repurchase of common
stock
|
(1.5)
|
|
|
(92.3)
|
|
Repayment of
long-term debt and capital lease obligations
|
(2.6)
|
|
|
(3.0)
|
|
Net change in
short-term debt
|
(36.4)
|
|
|
(2.2)
|
|
Debt issuance
costs
|
(0.7)
|
|
|
—
|
|
Proceeds from
exercise of stock options
|
16.1
|
|
|
15.7
|
|
Excess tax benefits
from share-based payment arrangements
|
6.0
|
|
|
6.3
|
|
Net cash used in
financing activities
|
(157.1)
|
|
|
(211.0)
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(22.7)
|
|
|
(61.1)
|
|
Net change in cash
and cash equivalents
|
2.8
|
|
|
(50.3)
|
|
Cash and cash
equivalents at beginning of year
|
77.0
|
|
|
127.3
|
|
Cash and cash
equivalents at end of period
|
$
|
79.8
|
|
|
$
|
77.0
|
|
|
|
|
|
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
Dec 26,
2015
|
|
Dec 27,
2014
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
79.8
|
|
|
$
|
77.0
|
|
Other current
assets
|
463.9
|
|
|
557.5
|
|
Total current
assets
|
543.7
|
|
|
634.5
|
|
|
|
|
|
Property, plant and
equipment, net
|
255.6
|
|
|
290.3
|
|
Other
assets
|
785.6
|
|
|
855.2
|
|
Total
assets
|
$
|
1,584.9
|
|
|
$
|
1,780.0
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Short-term borrowings
and current portion of long-term debt
|
$
|
162.5
|
|
|
$
|
221.4
|
|
Accounts payable and
other current liabilities
|
439.9
|
|
|
523.9
|
|
Total current
liabilities
|
602.4
|
|
|
745.3
|
|
|
|
|
|
Long-term
debt
|
608.2
|
|
|
612.1
|
|
Other
liabilities
|
211.6
|
|
|
236.8
|
|
Total shareholders'
equity
|
162.7
|
|
|
185.8
|
|
Total liabilities and
shareholders' equity
|
$
|
1,584.9
|
|
|
$
|
1,780.0
|
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
January 27,
2016
|
(UNAUDITED)
|
|
|
|
|
|
|
|
First
Quarter
|
|
First
Quarter
|
(In millions,
except per share data)
|
2015
Actual
|
|
2016
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
41.2
|
|
|
$
|
50.0
|
|
|
$
|
53.4
|
|
|
|
|
|
|
|
Income tax
|
$
|
11.7
|
|
|
$
|
12.3
|
|
|
$
|
13.2
|
|
Effective
Rate
|
28
|
%
|
|
25
|
%
|
|
25
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
29.5
|
|
|
$
|
37.7
|
|
|
$
|
40.2
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
28
|
%
|
|
36
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
(0.6)
|
|
|
—
|
|
|
—
|
|
Re-engineering and
impairment charges
|
16.2
|
|
|
2.5
|
|
|
2.5
|
|
Net impact of
Venezuelan bolivar devaluations
|
9.3
|
|
|
—
|
|
|
—
|
|
Acquired intangible
asset amortization
|
2.7
|
|
|
2.6
|
|
|
2.6
|
|
Income
tax(2)
|
(5.9)
|
|
|
(1.8)
|
|
|
(1.8)
|
|
Net Income
(adjusted)
|
$
|
51.2
|
|
|
$
|
41.0
|
|
|
$
|
43.5
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
(11.1)
|
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2015 restated for currency changes)
|
$
|
40.1
|
|
|
$
|
41.0
|
|
|
$
|
43.5
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
2
|
%
|
|
8
|
%
|
|
|
|
|
|
|
Net income (GAAP) per
common share (diluted)
|
$
|
0.59
|
|
|
$
|
0.74
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
25
|
%
|
|
34
|
%
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
1.02
|
|
|
$
|
0.81
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
0.79
|
|
|
$
|
0.81
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
3
|
%
|
|
9
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
50.3
|
|
|
50.6
|
|
|
50.6
|
|
(1) Refer to Non-GAAP Financial Measures section of
attached release for description of the general nature of
adjustment items
(2) Represents income tax impact of adjustments on an
item-by-item basis
(3) Difference between 2015 actual and 2015 translated
at current currency exchange rates
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
January 27,
2016
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Full
Year
|
|
Full
Year
|
(In millions,
except per share data)
|
2015
Actual
|
|
2016
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
259.9
|
|
|
$
|
256.1
|
|
|
$
|
262.9
|
|
|
|
|
|
|
|
Income tax
|
$
|
74.1
|
|
|
$
|
63.4
|
|
|
$
|
65.1
|
|
Effective
Rate
|
29
|
%
|
|
25
|
%
|
|
25
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
185.8
|
|
|
$
|
192.7
|
|
|
$
|
197.8
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
4
|
%
|
|
6
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
$
|
(13.7)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Re-engineering,
impairments and pension settlements
|
21.8
|
|
|
10.0
|
|
|
10.0
|
|
Net impact of
Venezuelan bolivar devaluations
|
14.9
|
|
|
—
|
|
|
—
|
|
Acquired intangible
asset amortization
|
10.2
|
|
|
10.3
|
|
|
10.3
|
|
Income
tax(2)
|
1.5
|
|
|
(7.0)
|
|
|
(7.1)
|
|
Net Income
(adjusted)
|
$
|
220.5
|
|
|
$
|
206.0
|
|
|
$
|
211.0
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
(29.3)
|
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2015 restated for currency changes)
|
$
|
191.2
|
|
|
$
|
206.0
|
|
|
$
|
211.0
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
8
|
%
|
|
10
|
%
|
|
|
|
|
|
|
Net income (GAAP) per
common share (diluted)
|
$
|
3.69
|
|
|
$
|
3.81
|
|
|
$
|
3.91
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
3
|
%
|
|
6
|
%
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
4.37
|
|
|
$
|
4.07
|
|
|
$
|
4.17
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
3.79
|
|
|
$
|
4.07
|
|
|
$
|
4.17
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
7
|
%
|
|
10
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
50.4
|
|
|
50.6
|
|
|
50.6
|
|
(1) Refer to Non-GAAP Financial Measures section of
attached release for description of the general nature of
adjustment items
(2) Represents income tax impact of adjustments on an
item-by-item basis
(3) Difference between 2015 actual and 2015 translated
at current currency exchange rates
TUPPERWARE BRANDS
CORPORATION
|
ADJUSTED EBITDA
AND DEBT/ADJUSTED EBITDA*
|
(UNAUDITED)
|
|
|
|
|
As of and for the
four quarters ended
|
|
|
December 26,
2015
|
|
Adjusted
EBITDA:
|
|
|
Net income
|
$
|
185.8
|
|
|
Add:
|
|
|
Depreciation and
amortization
|
62.4
|
|
|
Gross interest
expense
|
47.6
|
|
|
Provision for income
taxes
|
74.1
|
|
|
Pretax non-cash
re-engineering and impairment charges
|
13.5
|
|
|
Equity
compensation
|
20.0
|
|
|
Deduct:
|
|
|
Gains on land sales,
insurance recoveries, etc.
|
(13.7)
|
|
|
Total Adjusted
EBITDA
|
$
|
389.7
|
|
|
|
|
|
Consolidated total
debt
|
$
|
770.7
|
|
|
Divided by adjusted
EBITDA
|
389.7
|
|
|
Debt to Adjusted
EBITDA Ratio
|
1.98
|
|
a
|
* Amounts and calculations are based on the definitions and
provisions of the Company's $600
million Credit Agreement dated September 11, 2013, as amended and restated
("Credit Agreement") and, where applicable, are based on the
trailing four quarter amounts. "Adjusted EBITDA" is
calculated as defined for "Consolidated EBITDA" in the Credit
Agreement.
a There is a $28.3 million
impact on adjusted EBITDA from the Venezuelan fixed asset
impairment and bolivar devaluations occurring in the four quarters
ended December 26, 2015 that
increased the debt to adjusted EBITDA ratio by 0.13.
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SOURCE Tupperware Brands Corporation