ORLANDO, Fla., Feb. 1 /PRNewswire-FirstCall/ -- -- Fourth Quarter
Sales up 10% in local currency, versus October guidance of up 6 to
8%, and up 20% over last year reported -- Fourth Quarter GAAP
diluted E.P.S. $1.31, up 25% over last year; excluding certain
items impacting comparability*, diluted E.P.S. $1.22, versus
October guidance range of 98 cents to $1.03, up 36% over last year
** -- Full Year GAAP diluted E.P.S. $2.75, up 8% over last year;
excluding certain items impacting comparability*, diluted E.P.S.
$3.08, up 15% over last year ** -- Stock repurchase authorization
increased to $350 million from $150 million and term extended to
February 1, 2015 Tupperware Brands Corporation (NYSE:TUP) today
reported fourth quarter 2009 sales and profit. Fourth quarter 2009
sales increased in local currency by 10% versus 2008, before a
positive impact from foreign exchange rates of 10%. This resulted
in GAAP sales that were 20% above the fourth quarter of 2008.
Chairman and CEO, Rick Goings commented, "We are pleased to have
finished the year with another strong quarter of local currency
sales growth, which was above the high end of the guidance given in
October. All five segments delivered top line growth in local
currency. Our emerging markets, which comprised 51% of total sales
in the quarter, were up 20% in local currency, continuing the
significant improvement in the trend as we've moved through the
year. There were a significant number of markets with double digit
increases, including Tupperware Brazil, India, Indonesia, Malaysia,
Mexico, Russia, South Africa, Turkey and Venezuela. The established
markets were up 1% in local currency, which included strong
increases by Tupperware Australia and Austria, as well as France
which had record sales in the quarter that were 33% higher in local
currency compared with 2008. Tupperware Japan and BeautiControl
continued to have disappointing results." "We had a strong close to
2009, as our management teams continued to focus on the
fundamentals that drive our business. The heavy lifting of
contemporizing our business model is resulting in enhanced
performance. We were able to achieve 16% local currency diluted
earnings per share growth, excluding items impacting comparability,
and ended the quarter with a 6% advantage in our total sales force.
We'll look to leverage our larger sales force and strong business
models in 2010," said Rick Goings. Diluted GAAP earnings per share
of $1.31 for the fourth quarter of 2009 was up 26 cents versus last
year. The 2009 fourth quarter included net positive 9 cents from
items impacting comparability*, while 2008 had net positive 15
cents from those items.** There was also a positive 15 cent impact
versus 2008 from stronger foreign currencies. Adjusted diluted
earnings per share of $1.22 in the quarter was 19 cents better than
the high end of the guidance range given in October. This was up 32
cents, or 36% versus the prior year. Excluding the 15 cent positive
impact of currency on the comparison, adjusted diluted earnings per
share increased by 16%. The increase came from the contribution
margin on higher sales, lower resin costs and more efficient
promotional spending in some units, which was in part offset by
investment in brand building and other sales enhancing investments,
along with higher unallocated corporate expenses and a higher
income tax rate. The fourth quarter included $3.5 million of pretax
cost recorded when the year end balance sheet in Venezuela was
translated for the first time at the "parallel" exchange rate
available in that market. The Company had previously indicated that
it would incur $8 million of cost in the fourth quarter of 2009 to
convert cash in Venezuela at this exchange rate, but it did not do
so. Tupperware Brands will conduct a conference call tomorrow,
Tuesday February 2, at 10:00 am Eastern time. The conference call
will be webcast and archived along with a copy of this news release
on http://www.tupperwarebrands.com/. Fourth Quarter Segment
Highlights* Tupperware Segments In Europe, fourth quarter sales
were up 12% versus prior year in local currency (up 26% reported),
continuing the trend of increasing sales growth every quarter in
2009. Established markets were up 6% compared to last year in local
currency (up 21% reported) led by a 33% increase in France, as well
as a high teen increase in Austria. The German business made
progress on shrinking its salesforce deficit, and had a slight
decrease in local currency sales versus 2008. The emerging markets
were up 25% in local currency (up 36% reported). Growth came
primarily from strong double digit increases in Tupperware Russia,
South Africa and Turkey, as well as Avroy Shlain, one of the beauty
businesses in South Africa. For Europe overall, pre-tax operating
profit was up 31% versus prior year in local currency (up 48%
reported). Total sales force in the segment was up 15% at the end
of the fourth quarter. Asia Pacific continued double digit sales
growth with a 14% increase in local currency sales (up 29%
reported) in the quarter. Emerging markets were up 27% in local
currency (up 40% reported). Indonesia accounted for the majority of
the growth, with a local currency sales increase of 87% in the
quarter (up 129% reported). Tupperware India and Malaysia/Singapore
were up strongly versus the prior year, partially offset by a low
double digit decrease in China. The established markets were down
1% versus prior year in local currency (up 16% reported) from low
double digit growth in Tupperware Australia offset by low double
digit decreases in both businesses in Japan. Profit was up 24% in
local currency (up 45% reported). Total sales force was up 25% at
the end of the fourth quarter. Tupperware North America sales were
up 6% in local currency (up 8% reported) versus prior year, mainly
from a double digit increase in Mexico, reflecting growth in the
core business along with higher business to business sales in the
quarter. Sales in the United States and Canada were down slightly
for the quarter, after being up in the second and third quarters of
2009. Profit for the segment was up 55% in local currency (up 57%
reported). The total sales force size at the end of December was up
6%. Beauty Segments Beauty North America sales were up 2% in local
currency (up 3% reported) reflecting an increase by Fuller Mexico,
partially offset by a decrease by BeautiControl. BeautiControl
implemented a new sales force compensation plan at the beginning of
2010 that better aligns the earning opportunity for the sales force
with the focus on selling through spa parties and recruiting. The
segment's profit in the quarter increased 26% in local currency (up
30% reported) reflecting better value chain performance by both
units. The total sales force size at the end of the quarter was
down 8%, with both units contributing to the decreases. Beauty
Other sales were up 15% in local currency (up 28% reported), with
most of the increase coming from Tupperware Brazil and Venezuela,
although Nutrimetics France and Nuvo Uruguay had double digit
increases as well. Fourth quarter reported profit grew from $3.2
million in 2008 to $7.5 million in 2009 primarily from the
contribution margin associated with the higher local currency
sales, along with value chain improvement in Brazil that included
not having the loss that was incurred in 2008 by the separate
Brazilian beauty business. There was also less amortization expense
from purchase accounting intangible assets in 2009 than in 2008.
Included in the segment's results was the $3.5 million cost
recorded from translating the year end balance sheet of Venezuela
at the "parallel" exchange rate. The total sales force size
advantage for the segment at year end 2009 was 2%. Full Year 2009
Results** Full year company sales grew 6% in local currency (down
2% reported). Businesses operating in emerging markets, comprising
51% of total company sales grew 14% in local currency (even with
last year reported) led by Tupperware Brazil, Indonesia, Malaysia,
Mexico, Russia, South Africa, and Venezuela, while sales in China
decreased. The rest of the businesses that operate in established
markets were down 1% in local currency (down 4% reported) with
notable increases by Tupperware Austria and France, and decreases
by BeautiControl and Germany. The Tupperware brand segments grew 8%
in local currency (up 1% reported) and the Beauty brand segments
were up 3% in local currency (down 7% reported). The total sales
force was up 6% at the end of December and active sellers for the
year were even with 2008. Profit from the operating segments rose
34% in local currency (up 22% reported), including double-digit
improvements in all three Tupperware segments, a high single digit
improvement by Beauty North America and $19.7 million in profit by
the Beauty Other segment versus a $5.0 million loss in 2008.
Diluted earnings per share was $2.75, up 25% in local currency (up
8% reported). Excluding certain adjustment items, diluted earnings
per share was $3.08, up 32% in local currency (up 15% in dollars).
Full Year 2010 Outlook The outlook for full year local currency
sales growth remains at up 6 to 8%, and with a 1% benefit from
foreign exchange is an increase of 7 to 9% on a reported basis. The
local currency increase foreseen for units operating in emerging
markets is 12 to 14%, and the increase for units operating in
established markets is 1 to 2%. The diluted earnings per share
guidance is raised 8 cents from what was provided in October 2009
to a GAAP range of $3.25 to $3.35, with negative 16 cents from
items impacting comparability. Excluding these items, diluted
earnings per share is forecast to be $3.41 to $3.51 (see detail in
the Non-GAAP Financial Measures Outlook Reconciliation schedule),
which would represent a local currency increase of 9 to 12% versus
2009. The 8 cent increase from the previous guidance reflects the
19 cents 2009 actual results exceeded the 2009 guidance provided in
October, offset in part by weaker foreign currencies since last
October, particularly the euro. The positive impact, based on
current exchange rates, on the comparison of 2010 earnings per
share with 2009 is now 5 cents. There is no impact to the previous
2010 guidance from Venezuela, as the lower 2010 value of
Venezuela's earnings from beginning in 2010 to use the parallel
rate, is about offset by not incurring 2009 foreign exchange losses
of $8.4 million. Unallocated corporate expense for 2010 is expected
to be about $50 million and net interest expense is expected to be
about $27 million. At the high end of the sales and earnings per
share range, excluding items impacting comparability, this would
result in a 2010 pre-tax return on sales of 12.9% versus 2009
actual of 12.1%, along with a tax rate of 25.0% versus 23.5% in
2009. First Quarter 2010 Outlook The first quarter sales outlook is
for an increase of 8 to 10% in local currency. Including a positive
impact from exchange rates of 9%, sales in dollars are expected to
increase by 17 to 19%. GAAP diluted earnings per share is expected
to be 51 to 56 cents, with a negative 4 cent impact from items
impacting comparability. Excluding these items, diluted earnings
per share is forecast to be 55 to 60 cents. This compares with GAAP
diluted earnings per share of 41 cents last year and 45 cents
excluding certain items, indicating a 22% local currency increase
in pretax profit at the high end of the range. The guidance
reflects a positive impact on the comparison of 7 cents from
stronger foreign currencies. Rick Goings, Chairman and CEO,
commented, "When the world seemed to stop at the beginning of 2009,
our management teams didn't panic. Instead of going into cutback
mode we introduced vigilance plans to take a proactive stance
against the uncertainty of the year. We were pleased to see
improvements in our results every quarter during 2009. Our
continued focus on differentiated products, dynamic selling
situations and compelling earning opportunities is paying off." "In
2010 we will work to continue the momentum we've seen in our
markets with dynamic sales growth. The tremendous progress we
achieved in 2009 at Tupperware Brazil, France, Indonesia and South
Africa illustrates how well our business models can work in both
emerging and established markets. We will continue to apply what
we've learned from our success stories and years of experience in
direct selling to our other markets that are not growing as fast as
we would like and where we're not profitable enough. I believe
management's most important job is sustainability of the
enterprise, and we will build off our larger sales force and strong
business models in 2010 and beyond," said Rick Goings. Share
Repurchases The Company's board today increased the Company's share
repurchase authorization by $200 million to $350 million, and
extended the term of the program to February 1, 2015. Repurchases
are expected to be made using proceeds from stock option exercises
and cash generated by the business to offset dilution associated
with the Company's equity incentive plans. The goal of the program
is to keep the number of shares outstanding at approximately 63
million. The Company had 63,054,627 shares outstanding at the end
of its 2009 fiscal year. Since May 2007 to date, the Company has
repurchased 3.8 million shares for $141.3 million, including the
repurchase of 1.1 million shares for $50.6 million in the fourth
quarter of 2009. * See Non-GAAP Financial Measures Reconciliation
Schedule. ** 2008 Basic and Diluted earnings per share has been
recast to conform to new earnings per share accounting guidance
adopted in the first quarter of 2009. This reduced 2008 fourth
quarter and full year diluted earnings per share by $0.01 versus
the originally reported amounts. Tupperware Brands Corporation is a
portfolio of global direct selling companies, selling innovative,
premium products across multiple brands and categories through an
independent sales force of 2.4 million. 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 for consumers through the Armand
Dupree, Avroy Shlain, BeautiControl, Fuller Cosmetics, NaturCare,
Nutrimetics, Nuvo and Swissgarde 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", "expects" or "target" are
forward-looking statements. These statements involve risks and
uncertainties which include recruiting and activity of the
Company's independent sales forces, the success of new product
introductions and promotional programs, governmental approvals for
use in food containers of materials such as polycarbonate, 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 most recent
periodic report as filed in accordance with the Securities Exchange
Act of 1934. The Company does not intend to update forward-looking
information other than through its quarterly earnings releases
unless it expects diluted earnings per share for the current
quarter, excluding adjustment items and 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. The adjustment items materially impact the
comparability of the Company's results of operations. The adjusted
information is intended to be more indicative of Tupperware Brands'
primary operations, and to assist readers in evaluating performance
and analyzing trends across periods. The non-GAAP financial
measures exclude gains from the sale of property, plant and
equipment and insurance settlements; re-engineering costs; purchase
accounting intangible asset amortization; and purchase accounting
intangible asset and goodwill impairment costs. 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, gains
recognized in any given period are not indicative of gains which
may be recognized in any particular future period. For this reason,
these gains are excluded as indicated. Further, 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 manufacturing and other restructuring activities, and
believe 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 more useful measure for analysis and
predictive purposes. 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 independent sales forces 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;
however, based on the Company's current estimates, this
amortization will decline as the years progress. Similarly in
connection with its evaluation of the carrying value of acquired
intangible assets and goodwill in the second quarters of 2009 and
2008, the Company recognized impairment charges. The Company
believes that these types of non-cash charges will not be
representative in any single year of amounts recorded in prior
years or expected to be recorded in future years. Therefore, they
are excluded from indicated financial information to also provide a
more useful measure for analysis and predictive purposes. Included
on the Company's website at
http://ir.tupperwarebrands.com/history.cfm is information detailing
the calculation of the Company's financial covenants for the most
recent period, under its Credit Agreement dated September 28, 2007.
TUPPERWARE BRANDS CORPORATION CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) 13 Weeks 13 Weeks 52 Weeks 52 Weeks Ended Ended Ended
Ended Dec 26, Dec 27, Dec 26, Dec 27, 2009 2008 2009 2008 --------
-------- -------- -------- (In millions, except Per share data) Net
sales $626.0 $521.7 $2,127.5 $2,161.8 Cost of products sold 210.1
183.9 718.5 764.1 ----- ----- ----- ----- Gross margin 415.9 337.8
1,409.0 1,397.7 Delivery, sales and administrative expense 301.7
261.6 1,119.1 1,161.0 Re-engineering and impairment charges 1.5 2.1
8.0 9.0 Impairment of goodwill and intangible assets - - 28.1 9.0
Gains on disposal of assets including insurance recoveries 11.8
22.1 21.9 24.9 ---- ---- ---- ---- Operating income 124.5 96.2
275.7 243.6 Interest income 0.3 1.0 2.9 4.8 Interest expense 7.8
12.6 31.6 41.7 Other expense 3.5 1.0 9.9 4.8 --- --- --- --- Income
before income taxes 113.5 83.6 237.1 201.9 Provision for income
taxes 29.4 17.8 62.0 40.5 ---- ---- ---- ---- Net income $84.1
$65.8 $175.1 $161.4 ===== ===== ====== ====== Net income per common
share: Basic earnings per share: $1.34 $1.06 $2.80 $2.61 Diluted
earnings per share: $1.31 $1.05 $2.75 $2.55 TUPPERWARE BRANDS
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Amounts in millions, except per share) 13 Weeks 13 Weeks Ended
Ended Reported Restated Foreign Dec 26, Dec 27, % % Exchange 2009
2008 Inc (Dec) Inc (Dec) Impact * ------- -------- ---------
-------- -------- Net Sales: ------- Europe $234.8 $186.9 26 12
$23.3 Asia Pacific 118.8 92.0 29 14 12.5 TW North America 75.0 69.5
8 6 1.5 Beauty North America 103.9 100.5 3 2 1.9 Beauty Other 93.5
72.8 28 15 8.4 ---- ---- --- $626.0 $521.7 20 10 $47.6 ======
====== ===== Segment profit (loss): -------- Europe $62.6 $42.3 48
31 $5.4 Asia Pacific 28.3 19.6 45 24 3.3 TW North America 13.5 8.6
57 55 0.1 Beauty North America 15.4 11.9 30 26 0.4 Beauty Other 7.5
3.2 + 70 1.2 --- --- --- 127.3 85.6 49 33 $10.4 Unallocated
expenses (16.6) (10.4) 58 69 0.7 Gains on Disposal of assets
including insurance recoveries 11.8 22.1 (46) (46) - Re-engineering
and impairment charges (1.5) (2.1) (27) (27) - Impairment of
goodwill and intangible assets - - - - - Interest expense, net
(7.5) (11.6) (35) (35) - ---- ----- --- Income before taxes 113.5
83.6 36 20 11.1 Provision for income taxes 29.4 17.8 66 51 1.7 ----
---- --- Net income $84.1 $65.8 28 12 9.4 ===== ===== === Net
income per common share (diluted) $1.31 $1.05 25 9 0.15 Weighted
Average number of diluted shares 64.3 62.2 52 Weeks 52 Weeks Ended
Ended Reported Restated Foreign Dec 26, Dec 27, % % Exchange 2009
2008 Inc (Dec) Inc (Dec) Impact * Net Sales: ---------- Europe
$749.6 $769.6 (3) 5 $(56.8) Asia Pacific 385.0 336.1 15 15 (1.6) TW
North America 292.3 303.3 (4) 4 (23.2) Beauty North America 391.6
460.7 (15) (3) (57.6) Beauty Other 309.0 292.1 6 13 (18.3) -----
----- ----- $2,127.5 $2,161.8 (2) 6 $(157.5) ======== ========
======= Segment profit (loss): -------------- Europe $143.3 $123.8
16 25 $(9.2) Asia Pacific 78.6 64.7 22 26 (2.2) TW North America
38.1 27.7 37 52 (2.7) Beauty North America 52.2 60.5 (14) 8 (12.1)
Beauty Other 19.7 (5.0) + + 2.3 ---- ---- --- 331.9 271.7 22 34
$(23.9) Unallocated Expenses (51.9) (39.8) 30 19 (3.7) Gains on
disposal of assets including insurance recoveries 21.9 24.9 (12)
(12) - Re-engineering and impairment charges (8.0) (9.0) (11) (11)
- Impairment of Goodwill and intangible assets (28.1) (9.0) + + -
Interest expense, net (28.7) (36.9) (22) (22) - ----- ----- ---
Income before taxes 237.1 201.9 17 36 (27.6) Provision for income
taxes 62.0 40.5 53 75 (5.0) ---- ---- ---- Net income $175.1 $161.4
8 26 (22.6) ====== ====== ===== Net income per Common share
(diluted) $2.75 $2.55 8 25 (0.35) Weighted Average number of
diluted shares 63.4 63.0 * 2009 actual compared with 2008
translated at 2009 exchange rates. TUPPERWARE BRANDS CORPORATION
RECONCILIATION (In millions except per share data) 13 Weeks Ended
Dec 26, 13 Weeks Ended Dec 27, 2009 2008 -------------------------
---------------------------------- Excl Reported Adj's Adj's
Reported Adj's Excl Adj's -------- ----- ------ -------- -----
---------- Segment profit (loss) Europe $62.6 $0.1 a $62.7 $42.3
$0.1 a $42.4 Asia Pacific 28.3 0.3 a 28.6 19.6 0.4 a 20.0 TW North
America 13.5 - 13.5 8.6 - 8.6 Beauty North America 15.4 0.5 a 15.9
11.9 0.7 a 12.6 Beauty Other 7.5 0.4 a 7.9 3.2 1.8 a, c 5.0 --- ---
--- --- --- --- 127.3 1.3 128.6 85.6 3.0 88.6 ----- --- ----- ----
--- ---- Unallocated expenses (16.6) - (16.6) (10.4) - (10.4) Gains
on disposal of assets including insurance recoveries 11.8 (11.8)b -
22.1 (22.1)b - Re-eng and impairment chgs (1.5) 1.5 c - (2.1) 2.1 c
- Impairment of goodwill and intangible assets - - d - - - d -
Interest expense, net (7.5) - (7.5) (11.6) - (11.6) ----- --- ----
---- --- ----- Income before taxes 113.5 (9.0) 104.5 83.6 (17.0)
66.6 Provision for Income Taxes 29.4 (3.3)e 26.1 17.8 (7.6)e 10.2
---- ----- ---- ---- ----- ---- Net income $84.1 $(5.7) $78.4 $65.8
$(9.4) $56.4 ===== ===== ==== ==== ==== ==== Net income per common
share ----- ----- ---- ---- ---- ---- (diluted) $1.31 $(0.09) $1.22
$1.05 $(0.15) $0.90 ===== ===== ==== ==== ==== ==== 52 Weeks Ended
Dec 26, 52 Weeks Ended Dec 27, 2009 2008
--------------------------- ----------------------------- Excl Excl
Reported Adj's Adj's Reported Adj's Adj's -------- ----- ------
-------- ---- -------- Segment profit (loss) Europe $143.3 $0.3 a $
143.6 $123.8 $0.5 a $124.3 Asia Pacific 78.6 1.2 a 79.8 64.7 1.5 a
66.2 TW North America 38.1 - 38.1 27.7 - 27.7 Beauty North America
52.2 2.0 a 54.2 60.5 3.7 a 64.2 Beauty Other 19.7 1.6 a 21.3 (5.0)
6.2 a,c 1.2 ---- --- ---- ---- --- --- 331.9 5.1 337.0 271.7 11.9
283.6 ----- --- ----- ----- ---- ----- Unallocated expenses (51.9)
- (51.9) (39.8) - (39.8) Gains on disposal of assets including
insurance recoveries 21.9 (21.9) b - 24.9 (24.9)b - Re-eng and
impairment chgs (8.0) 8.0 c - (9.0) 9.0 c - Impairment of goodwill
and intangible assets (28.1) 28.1 d - (9.0) 9.0 d - Interest
expense, net (28.7) - (28.7) (36.9) - (36.9) ----- --- ----- -----
---- ----- Income before taxes 237.1 19.3 256.4 201.9 5.0 06.9
Provision for income taxes 62.0 (1.7) e 60.3 40.5 (3.3) e 37.2
----- ---- ----- ----- ---- ---- Net income $175.1 $21.0 $196.1
$161.4 $8.3 $169.7 ===== ==== ===== ===== ==== ===== Net income per
common share ----- --- ----- ----- ---- ----- (diluted) $2.75 $0.33
$3.08 $2.55 $0.13 $2.68 ===== ==== ===== ===== ==== ===== (a)
Amortization of intangibles of acquired beauty units. (b) Gain on
disposal of assets of $21.9 million in 2009 includes $8.9 million
in insurance recoveries related to the 2007 fire in South Carolina
and $2.9 million related to the sale of property in Australia in
the fourth quarter. The 2009 full year amount also includes $10.1
million in insurance recoveries in the second quarter related to
the South Carolina fire. Gain on disposal of assets including
insurance recoveries of $24.9 million in full year 2008, includes
$22.2 million for insurance recoveries in the fourth quarter
related to the 2007 fire, along with smaller insurance recoveries
and costs related to disposing of an asset, netting to $0.1 million
of expense. The 2008 full year amount also includes $2.2 million
for the sale of land held for development near the Company's
Orlando, Florida headquarters (Land Sales) and $0.6 million for
another insurance recovery. (c) Full year 2009 expense of $8.0
million includes $0.7 million for the relocation of the
BeautiControl and China manufacturing facilities and a new facility
in India, of which $0.3 million was in the fourth quarter; $5.2
million related to severance costs incurred to reduce headcount in
the Company's operations in France, BeautiControl, Mexico, Japan
and Australia, of which $1.0 million was in the fourth quarter; and
$2.1 million of impairment charges for obsolete software and
equipment and the write off of beauty manufacturing assets in
Brazil, of which $0.2 million was in the fourth quarter. Full year
2008 expense of $9.0 million includes $1.2 million in the fourth
quarter for asset impairments and severance related to the decision
to begin selling beauty products in Brazil through the Tupperware
sales force and cease operating the beauty business in Brazil; $0.9
million of impairment charges for obsolete software and equipment
in the South Africa beauty business, as well as various machinery
and equipment in other manufacturing units, of which $0.1 million
was incurred in the fourth quarter; $0.8 million related to the
relocation of the Company's Belgium and BeautiControl manufacturing
facilities, of which $0.1 million was incurred in the fourth
quarter; and $6.1 million related to severance costs incurred to
reduce headcount in the Company's operations in Germany,
BeautiControl and France operations, of which $0.7 million was
incurred in the fourth quarter. (d) The Company reviewed the value
of the intangible assets of its acquired beauty businesses. As a
result of these reviews, the intangibles of Nutrimetics, Avroy
Shlain, and NaturCare were deemed to be impaired in 2009, resulting
in a non-cash impairment charge of $28.1 million. In 2008, there
was a $9.0 million non-cash impairment charge for the trade names
of Nutrimetics and NaturCare. (e) Provision for income taxes
represents the net tax impact of adjusted amounts, which is
calculated by using the tax rates for the countries affected by the
adjustments. See note regarding non-GAAP financial measures in the
attached press release. TUPPERWARE BRANDS CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) Dec. 26, Dec. 27, (In
millions) 2009 2008 ---- ---- Assets Cash and cash equivalents
$112.4 $124.8 Other current assets 567.6 579.0 ----- ----- Total
current assets 680.0 703.8 ----- ----- Property, plant and
equipment, net 254.6 245.4 Other assets 921.9 866.4 ----- -----
Total assets $1,856.5 $1,815.6 ======== ======== Liabilities and
Shareholders' Equity Short-term borrowings and current portion of
long-term debt $1.9 $3.8 Accounts payable and other current
liabilities 449.7 447.7 ----- ----- Total current liabilities 451.6
451.5 ----- ----- Long-term debt 426.2 567.4 Other liabilities
339.4 322.7 Total shareholders' equity 639.3 474.0 ----- -----
Total liabilities and shareholders' equity $1,856.5 $1,815.6
======== ======== Total Debt to Total Capital Ratio 40% Total
Capital is defined as total debt plus shareholders' equity
TUPPERWARE BRANDS CORPORATION CONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS (UNAUDITED) Year Ended Year Ended December 26, December
27, (In millions) 2009 2008 ---- ---- OPERATING ACTIVITIES Net cash
provided by operating activities $250.9 $131.0 INVESTING ACTIVITIES
Capital expenditure (46.4) (54.4) Proceeds from disposal of
property, plant & equipment 8.8 6.5 Proceeds from insurance
settlements 10.7 8.8 ---- --- Net cash used in investing activities
(26.9) (39.1) ----- ----- FINANCING ACTIVITIES Dividend payments to
shareholders (55.0) (54.4) Payments to acquire treasury stock
(83.2) (22.7) Repayment of long-term debt and capital lease
obligations (141.8) (21.5) Net change in short-term debt (1.9)
(2.5) Proceeds from exercise of stock options 39.4 24.6 Other, net
14.7 10.0 ---- ---- Net cash used in financing activities (227.8)
(66.5) ------ ----- Effect of exchange rate changes on cash and
cash equivalents (8.6) (3.3) ---- ---- Net change in cash and cash
equivalents (12.4) 22.1 Cash and cash equivalents at beginning of
year 124.8 102.7 ----- ----- Cash and cash equivalents at end of
period $112.4 $124.8 ====== ====== TUPPERWARE BRANDS CORPORATION
SUPPLEMENTAL INFORMATION Fourth Quarter Ended December 26, 2009
Sales Force Statistics (a): % % Segment AVG. ACTIVE CHG. TOTAL CHG.
----------- ---- ----- ---- Europe 106,645 6 573,021 15 Asia
Pacific 62,419 32 437,841 25 TW North America 86,382 14 263,182 6
------ ------- Tupperware 255,446 14 1,274,044 16 Beauty North
America 326,251 (4) 570,162 (8) Beauty Other 232,137 (4) 569,669 2
------- ------- Beauty 558,388 (4) 1,139,831 (3) ------- ---------
Total 813,834 1 2,413,875 6 ======= ========= (a) As collected by
the Company and provided by distributors and sales force.
TUPPERWARE BRANDS CORPORATION NON-GAAP FINANCIAL MEASURES OUTLOOK
RECONCILIATION SCHEDULE February 1, 2010 ($ in millions, except per
share amounts) First Quarter First Quarter 2009 Actual 2010 Outlook
------------ ------------- Range Low High --- ---- Income before
income taxes $32.3 $43.4 $47.8 % change from prior year 34% 48%
------------------------ --- --- Income tax $6.7 $10.8 $11.9
Effective Rate 21% 25% 25% Net Income (GAAP) $25.6 $32.6 $35.9 %
change from prior year 27% 40% ------------------------ --- ---
Adjustments(1): Re-engineering and other restructuring costs 2.7
2.5 2.5 Acquired intangible asset amortization 1.2 1.0 1.0 Income
tax (2) (1.3) (1.0) (1.0) ---- ---- ---- Net Income (Adjusted)
$28.2 $35.1 $38.4 % change from prior year 24% 36%
------------------------ --- --- Exchange rate impact (3) 4.6 - -
Net Income (Adjusted and 2009 ----- ----- ----- restated for
currency changes) $32.8 $35.1 $38.4 % change from prior year 7% 17%
------------------------ --- --- Net income (GAAP) per common share
(diluted) $0.41 $0.51 $0.56 Net Income (Adjusted) per common share
(diluted) $0.45 $0.55 $0.60 Average number of diluted shares
(millions) 62.3 64.1 64.1 ==== ==== ==== (1) Refer to Non-GAAP
Financial Measures section of attached release for description of
the general nature of adjustment items (2) Represents income tax
impact of adjustments (3) 2009 restated at current currency
exchange rates TUPPERWARE BRANDS CORPORATION NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE February 1, 2010 ($ in
millions, except per share amounts) Full Year Full Year 2009 Actual
2010 Outlook ----------- ------------ Range Low High --- ----
Income before income taxes $237.1 $277.8 $286.2
--------------------------------- -- -- % change from prior year
17% 21% --------------------------------- -- -- Income tax $62.2
$69.5 $71.4 Effective Rate 26% 25% 25% Net Income (GAAP) $174.9
$208.4 $214.8 --------------------------------- -- -- % change from
prior year 19% 23% --------------------------------- -- --
Adjustments(1): Gains on disposal of assets including insurance
recoveries $(21.9) $- $- Re-engineering and other restructuring
costs 8.0 10.0 10.0 Acquired intangible asset amortization 5.1 3.8
3.8 Purchase accounting intangible impairments 28.1 - - Income tax
(2) 1.7 (3.6) (3.6) --- ---- ---- Net Income (Adjusted) $195.9
$218.6 $225.0 --------------------------------- -- -- % change from
prior year 12% 15% --------------------------------- -- -- Exchange
rate impact (3) 3.3 - - --- --- --- Net Income (Adjusted and 2009
restated for currency changes) $199.2 $218.6 $225.0
--------------------------------- -- -- % change from prior year
10% 13% --------------------------------- -- -- Net income (GAAP)
per common share (diluted) $2.75 $3.25 $3.35 Net Income (Adjusted)
per common share (diluted) $3.08 $3.41 $3.51 Average number of
diluted shares (millions) 63.4 64.1 64.1 ==== ==== ==== (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 (3) 2009 restated at
current currency exchange rates DATASOURCE: Tupperware Brands
Corporation CONTACT: Nicole Decker of Tupperware Brands
Corporation, +1-407-826-4560 Web Site:
http://www.tupperwarebrands.com/
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