PepsiAmericas, Inc. (NYSE: PAS) today reported full year 2009
net income of $181.2 million, or diluted earnings per share (EPS)
of $1.46. Net income for the full year 2009 included various
non-comparable items that in total decreased net income by $27.8
million, or EPS by $0.23, resulting in adjusted EPS of $1.69.
Results were also negatively impacted by significant foreign
currency movements, which reduced net income by $101 million, or
EPS by $0.82. These results compare to full year 2008 reported net
income of $226.4 million, or EPS of $1.78, which included
non-comparable items and discontinued operations that in total
reduced EPS by $0.17.
In the fourth quarter of 2009, PepsiAmericas reported net income
of $34.6 million, or EPS of $0.28. Net income for the fourth
quarter of 2009 included various non-comparable items which in
total increased net income by $14.2 million, or EPS by $0.12. These
non-comparable items included a $0.17 EPS gain from the termination
of an interest rate swap. These results compare to reported net
income in the prior year period of $37.8 million, or EPS of $0.30,
which included a $0.04 net reduction related to non-comparable
items.
Chairman and Chief Executive Officer Robert C. Pohlad said, "We
began 2009 with a pragmatic view of the challenges and took actions
to help mitigate the impacts. Importantly, we also continued to
invest in capability and capacity to strengthen our position across
our markets.
“We maintained good focus on working capital management to
deliver cash flow of over $240 million, ahead of our expectations.
Our full year results were impacted by significant currency
headwinds, as well as global topline pressures that accelerated in
the fourth quarter. To help offset these challenges, global
productivity efforts drove over $40 million in cost savings while
improving our operational and selling capabilities.
Pohlad continued, “It is this capability and productivity, along
with strong cash flow, marketplace strength and the growth
potential of our Central and Eastern European markets that, going
forward, can add value to the Pepsi system.”
Full Year 2009 Worldwide Financial Highlights
While operating income decreased $92.3 million to $380.9
million, including non-comparable items that decreased operating
income by $42.9 million and $125.3 million of foreign currency
headwinds, strong global pricing and controlled costs drove
operating income up $64.9 million or 14 percent on a comparable
currency neutral basis. Foreign currency had a significant impact
on full year 2009 results and decreased revenue by approximately 6
percentage points, decreased cost of goods sold and selling,
delivery and administrative expenses (SD&A) by 4 percentage
points each, and decreased operating income by 27 percentage
points.
As a result of the company’s reporting calendar, fiscal year
2008 consisted of an additional week of operations impacting the
U.S. and the Caribbean. The 53rd week in fiscal year 2008
contributed approximately 1 percentage point to the year over year
decline in worldwide volume, net sales, cost of goods sold and
SD&A and 1.5 percentage points to the operating profit decline.
These impacts are excluded from the comparable figures presented
below.
Additionally, the deconsolidation of the company’s Caribbean
business related to its strategic joint venture with The Central
America Beverage Corporation reduced worldwide volume and SD&A
by approximately 2 percentage points each, decreased revenue and
cost of goods sold by approximately 3 percentage points each and
decreased operating income by 1 percentage point. These impacts are
excluded from the comparable figures presented below.
- Reported revenue of $4.4 billion
decreased 10 percent. Comparable currency neutral revenue was lower
by 1 percent as a result of volume declines in both the U.S. and
Central and Eastern Europe (CEE), partially offset by strong
pricing across all geographies.
- Constant territory volume
declined 7 percent. CEE volume declined 12.8 percent reflecting
continued difficult economic conditions in the company’s emerging
markets, particularly impacting its third-party distributor
business in Romania and its export business in Ukraine. U.S. volume
declined 3.6 percent reflecting a 10 percent decline in
non-carbonated beverages, while carbonated soft drinks declined 2
percent.
- Cost of goods sold per unit was
favorable to the prior year by 0.8 percent, driven by the impact of
foreign currency. On a comparable currency neutral basis, cost of
goods sold per unit increased 3.7 percent, reflecting increases in
raw material costs partially offset by system efficiencies.
- SD&A was favorable to prior
year by 9 percent. Comparable currency neutral SD&A decreased 3
percent reflecting the company’s productivity and cost control
initiatives and lower fuel costs, as well as lower volume.
- The results included an increase
in the company’s effective tax rate, which reflected the
deconsolidation of the company’s Caribbean business and a change in
the geographic mix of earnings and the associated varying statutory
tax rates. The effective tax rate for fiscal year 2009 was 36
percent compared to 30.4 percent in the prior year.
- Full year net cash provided by
operating activities of continuing operations was $308.6 million.
The company delivered adjusted operating cash flow of $242.3
million as a result of its strong working capital management.
Fourth Quarter 2009 Worldwide Financial Highlights
Reported revenue of $968.3 million decreased 17 percent.
Comparable currency neutral revenue was lower by 6 percent as a
result of constant territory volume declines of 8.9 percent. Net
pricing on a currency neutral basis increased 2.2 percent, which
included a softer mix impact in the U.S. Operating income in the
fourth quarter decreased $48.6 million to $42.5 million, due mainly
to the negative impact of foreign currency headwinds,
non-comparable items, as well as lower revenues and higher raw
material costs in the company’s U.S. business. Foreign currency
decreased revenue by approximately 2 percentage points, increased
cost of goods sold by less than 1 percentage point, decreased
SD&A by 1 percentage point, and negatively impacted operating
income by $17.2 million. Non-comparable items had a $10.7 million
negative impact on operating income compared to $5.8 million in the
prior year period. The company’s continued focus on costs and
productivity helped to partially offset the revenue declines in the
quarter.
The lapping of the 53rd week in the prior year period, which
contributed approximately 4 percentage points to the decline in
worldwide volume, revenue, and cost of goods sold, 3 percentage
points to the decrease in SD&A and 5 percentage points to the
operating income decline, is excluded from the comparable figures
presented above.
Additionally, the deconsolidation of the company’s Caribbean
business, which reduced worldwide volume and revenue by
approximately 5 percentage points each, lowered cost of goods sold
by 7 percentage points, decreased SD&A by 4 percentage points
and decreased operating income by 3 percentage points, is excluded
from the comparable figures presented above.
The net income included in this release refers to the “net
income attributable to PepsiAmericas, Inc.” line item on the
Condensed Consolidated Statements of Income.
About PepsiAmericasPepsiAmericas is the world's
second-largest manufacturer, seller and distributor of PepsiCo
beverages. With annual sales of $4.4 billion in 2009, PepsiAmericas
serves territories with a population of more than 240 million in a
significant portion of a 19-state region in the U.S.; Central and
Eastern Europe, including Ukraine, Poland, Romania, Hungary, the
Czech Republic and Slovakia; and through our joint venture, the
Caribbean and Central America. For more information, please visit
www.pepsiamericas.com.
Cautionary StatementThis release contains certain
forward-looking statements of expected future developments, as
defined in the Private Securities Litigation Reform Act of 1995.
The forward-looking statements in this release refer to our
expectations regarding continuing operating improvement and other
matters. These forward-looking statements reflect our expectations
and are based on currently available data; however, actual results
are subject to future risks and uncertainties, which could
materially affect actual performance. Risks and uncertainties that
could affect such performance include, but are not limited to, the
following: the outcome of, or developments concerning, our pending
merger with PepsiCo; competition, including product and pricing
pressures; changing trends in consumer tastes; changes in our
relationship and/or support programs with PepsiCo and other brand
owners; market acceptance of new product and package offerings;
weather conditions; cost and availability of raw materials;
changing legislation, including tax laws; cost and outcome of
environmental claims; availability and cost of capital, including
changes in our debt ratings; labor and employee benefit costs;
unfavorable foreign currency rate fluctuations; cost and outcome of
legal proceedings; integration of acquisitions; failure of
information technology systems; and general economic, business,
regulatory and political conditions in the countries and
territories where we operate. For additional information on these
and other risks and uncertainties that could cause our actual
results to materially differ from those set forth herein, please
see our SEC reports, including “Risk Factors” in our 2008 Annual
Report on Form 10-K and “Risk Factors” in our Quarterly Report on
Form 10-Q for the third quarter of 2009. We undertake no obligation
to update any of the forward-looking statements set forth herein.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date
hereof.
PEPSIAMERICAS, INC. CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (unaudited and in millions, except per share
data) Fourth Quarter
Fiscal Year 2009 2008 2009
2008 Net sales $ 968.3 $ 1,170.2 $ 4,421.3 $ 4,937.2
Cost of goods sold 601.8 701.4
2,654.4 2,955.6
Gross profit 366.5
468.8 1,766.9 1,981.6 Selling, delivery and administrative expenses
321.3 362.4 1,357.5 1,485.4 Intangible assets impairment - - 17.4 -
Special charges and adjustments 2.7 15.3
11.1 23.0
Operating
income 42.5 91.1 380.9 473.2 Interest (income) expense (9.6 )
25.5 65.6 111.1 Loss from deconsolidation of business - - 25.8 -
Other expense, net 2.9 6.3 13.9
7.9
Income from continuing operations
before income taxes and equity in net earnings (loss) of
nonconsolidated companies 49.2 59.3 275.6 354.2 Income taxes
16.4 20.4 99.3 107.8 Equity in net earnings (loss) of
nonconsolidated companies 1.4
(0.4
)
1.4 (1.1 )
Income from continuing
operations 34.2 38.5 177.7 245.3
Loss from discontinued
operations, net of tax - - -
9.2
Net income 34.2 38.5 177.7 236.1
Less: Net (loss) income attributable to noncontrolling interests
(0.4 ) 0.7 (3.5 ) 9.7
Net income attributable to PepsiAmericas, Inc. $ 34.6
$ 37.8 $ 181.2 $ 226.4
Weighted
average common shares: Basic 121.4 124.4 121.6 125.2
Incremental effect of stock options and awards 2.3
1.7 2.3 2.0 Diluted
123.7 126.1 123.9
127.2
Earnings per share attributable to
PepsiAmericas, Inc. common shareholders: Basic: Income from
continuing operations $ 0.29 $ 0.30 $ 1.49 $ 1.88 Loss from
discontinued operations - - -
(0.07 )
Total $ 0.29 $ 0.30 $
1.49 $ 1.81 Diluted: Income from continuing
operations $ 0.28 $ 0.30 $ 1.46 $ 1.85 Loss from discontinued
operations - - -
(0.07 )
Total $ 0.28 $ 0.30 $ 1.46 $
1.78
Cash dividends declared per share $ 0.14
$ 0.135 $ 0.56 $ 0.54
Amounts attributable to
PepsiAmericas, Inc. common shareholders: Income from continuing
operations $ 34.6 $ 37.8 $ 181.2 $ 235.6 Loss from discontinued
operations - - -
9.2
Net income attributable to PepsiAmericas, Inc. $
34.6 $ 37.8 $ 181.2 $ 226.4
PEPSIAMERICAS, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (unaudited and in millions) End
of Fiscal End of Fiscal Year Year
2009 2008 ASSETS: Current assets: Cash and
cash equivalents $ 193.9 $ 242.4 Receivables, net 413.8 305.5
Inventories 197.5 238.5 Other current assets 146.8
119.7 Total current assets 952.0 906.1
Property and equipment, net 1,276.6 1,355.7 Goodwill 2,181.8
2,244.6 Intangible assets, net 477.7 498.6 Other assets
204.6 49.1
Total assets $
5,092.7 $ 5,054.1
LIABILITIES AND EQUITY: Current liabilities:
Short-term debt, including current maturities of long-term debt $
141.5 $ 525.0 Payables and other current liabilities 527.8
523.2 Total current liabilities 669.3 1,048.2
Long-term debt 1,990.8 1,642.3 Deferred income taxes 273.7
237.6 Other liabilities 228.6 295.0
Total liabilities 3,162.4 3,223.1
Equity: PepsiAmericas, Inc. shareholders' equity:
Preferred stock - - Common stock 1,295.9 1,296.9 Retained income
939.8 828.2 Accumulated other comprehensive loss (160.9 ) (200.8 )
Treasury stock (343.1 ) (324.3 ) Total PepsiAmericas,
Inc. shareholders' equity 1,731.7 1,600.0 Noncontrolling interests
198.6 231.0
Total equity
1,930.3 1,831.0
Total liabilities
and equity $ 5,092.7
$ 5,054.1 PEPSIAMERICAS,
INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in millions) Fiscal Year
2009 2008 CASH FLOWS FROM OPERATING
ACTIVITIES: Net income $ 177.7 $ 236.1 Loss from discontinued
operations - 9.2 Income from continuing
operations 177.7 245.3 Adjustments to reconcile to net cash
provided by operating activities of continuing operations:
Depreciation and amortization 184.3 204.3 Deferred income taxes
19.0 (0.4 ) Loss from deconsolidation of business, net of tax 23.0
- Intangible assets impairment 17.4 - Special charges and
adjustments 11.1 23.0 Cash outlays related to special charges (5.2
) (6.7 ) Non-operating assets impairment 4.9 - Loss from
multi-employer pension plans 3.4 - Marketable securities impairment
2.1 - Gain on sale of non-core property - - Pension contributions
(21.2 ) (4.0 ) Equity in net (earnings) loss of nonconsolidated
companies (1.4 ) 1.1 Excess tax benefits from share-based payment
arrangements (2.5 ) (1.0 ) Share-based compensation 26.9 13.6 Other
(9.0 ) 9.3 Changes in assets and liabilities, exclusive of
acquisitions and divestitures: Decrease in securitization
receivables (150.0 ) - Decrease (increase) in remaining receivables
8.4 (7.8 ) Decrease in inventories 12.3 29.2 Increase in payables
8.2 7.8 Net change in other assets and liabilities (0.8 )
(13.1 ) Net cash provided by operating activities of
continuing operations 308.6 500.6
CASH FLOWS FROM INVESTING ACTIVITIES: Capital
investments (235.7 ) (248.9 ) Distribution rights acquired (12.8 )
- Cash divested from deconsolidation of business (7.1 ) -
Acquisitions and investments in nonconsolidated companies, net of
cash acquired (0.3 ) (1.0 ) Proceeds from sales of property and
equipment and investments 21.6 7.7 Net
cash used in investing activities (234.3 ) (242.2 )
CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings
of short-term debt (229.3 ) 75.3 Proceeds from issuance of
long-term debt 345.4 - Repayment of long-term debt (155.0 ) (47.5 )
Excess tax benefits from share-based payment arrangements
2.5
1.0 Contribution from noncontrolling interests 6.4 26.0 Issuance of
common stock 7.5 3.1 Treasury stock purchases (45.2 ) (135.0 ) Cash
dividends (52.4 ) (85.0 ) Net cash used in financing
activities
(120.1
)
(162.1 ) Net operating cash flows used in
discontinued operations (2.2 ) (9.4 ) Effects of exchange rate
changes on cash and cash equivalents (0.5 ) (34.2 )
Change in cash and cash equivalents
(48.5
)
52.7 Cash and cash equivalents as of beginning of fiscal year
242.4 189.7 Cash and cash equivalents
as of end of fiscal year
$
193.9
$ 242.4
Notes to condensed consolidated financial statements
(unaudited):
1. Adoption of Accounting and Reporting Standards for
Noncontrolling Interests: In the first quarter of fiscal year 2009,
we adopted accounting and reporting standards for noncontrolling
interests, previously called minority interest, that required
noncontrolling interests be reported in the equity section of the
Condensed Consolidated Balance Sheets but separate from
PepsiAmericas, Inc. shareholders' equity for all periods presented.
Additionally, a clear presentation of net income attributable to
PepsiAmericas, Inc. and the noncontrolling interest is required to
be reported on the face of the Condensed Consolidated Statements of
Income for all periods presented.
2. Reconciliation of Non-GAAP disclosures: In response to the
U.S. Securities and Exchange Commission's Final Rule, "Conditions
for Use of Non-GAAP Financial Measures," included below is a
reconciliation of certain non-GAAP financial measures compared to
U.S. GAAP measures.
Non-GAAP Adjusted Comparisons: In order to provide a
supplemental comparison of current period results of operations to
prior periods, we have adjusted for and summarized the nature of
certain transactions or events. These adjustments relate to
operating income, net income attributable to PepsiAmericas, Inc.
and basic and diluted earnings per share attributable to
PepsiAmericas, Inc. common shareholders. To calculate the adjusted
comparisons, management has excluded the impairment of intangible
assets, special charges relating to various restructuring
initiatives and adjustments, fees associated with the pending
merger with PepsiCo, Inc., impairment of non-operating assets, loss
from multi-employer pension plans, unrealized losses (gains) on
derivatives not designated as hedging instruments, loss from
deconsolidation of businesses, impairment of marketable securities,
gain from interest rate swap termination, and the impact of the
53rd week, which reflects the impact of an extra week of operations
in fiscal year 2008 financial statements due to an accounting
convention. Management believes that the adjusted comparisons
provide a supplemental view of operations that excludes items that
are unusual, infrequent or unrelated to the ongoing core operations
or involve special charges.
These supplemental comparisons are consistent with the manner in
which management internally reviews results of operations and
evaluates performance in that management reviews the results of
operations on both a GAAP basis and using adjusted comparisons.
Management does not use the adjusted comparisons in lieu of the
comparable GAAP measures, but rather uses the adjusted comparisons
to supplement its review of operations.
Non-GAAP Adjusted Operating Cash Flow: Adjusted operating cash
flow is the primary measure that management uses to monitor our
cash flow performance, and therefore, management believes this
information is useful to investors. We define adjusted operating
cash flow as our cash generated from operating activities of
continuing operations, plus proceeds from the sales of property and
equipment, less the impact of accounts receivable securitization,
capital investments and net operating cash flows used in
discontinued operations. The costs of acquisitions and divestitures
are excluded from the calculation.
Management believes these non-GAAP measures provide useful
information to investors through the summarization of transactions
impacting the current period results of operations that are not
necessarily indicative of our future results, nor comparable with
prior period results. These non-GAAP adjusted comparisons and
operating cash flow are provided as supplemental information and
should not be considered in lieu of the GAAP measures. There are
limitations in the use of adjusted comparisons and adjusted
operating cash flow due to the subjective nature of items excluded
by management in calculating adjusted comparisons and operating
cash flow.
Notes to condensed consolidated financial statements
(unaudited) - continued:
We have provided the tables below that summarize these
adjustments that impact comparability of the periods presented:
Fourth Quarter 2009 Fourth Quarter 2008
Net Income Net Income Operating attributable
Operating attributable Income to PAS Income to PAS (unaudited, in
millions)
As reported $ 42.5 $
34.6 $ 91.1 $ 37.8
Items impacting comparability:
Special charges and adjustments 2.7 1.7 15.3 10.9 PepsiCo merger
fees 2.1 1.3 - - Loss from multi-employer pension plans 3.4 2.1 - -
Unrealized losses (gains) on derivatives 2.5 1.6 (0.6 ) (0.4 ) Gain
from interest rate swap termination - (20.9 ) - - Impact of 53rd
week - - (8.9 ) (5.7 ) Adjusted
comparisons $ 53.2 $ 20.4 $ 96.9 $ 42.6
Weighted average
common shares: Basic 121.4 124.4 Incremental effect of stock
options and awards 2.3 1.7 Diluted
123.7 126.1
Earnings per
share attributable to PepsiAmericas, Inc. common
shareholders: Basic As reported
$
0.29 $ 0.30 As adjusted $ 0.17 $ 0.34
Diluted As reported
$ 0.28 $
0.30 As adjusted $ 0.16 $ 0.34
Notes to condensed consolidated financial statements
(unaudited) - continued:
We have provided the tables below that summarize these
adjustments that impact comparability of the periods presented:
Fiscal Year 2009 Fiscal Year 2008
Net Income Net Income from from
Continuing Continuing Operations Net Income Operations Net Income
Operating attributable attributable Operating attributable
attributable Income to PAS to PAS Income to PAS to PAS (unaudited,
in millions)
As reported $ 380.9 $
181.2 $ 181.2 $ 473.2 $
235.6 $ 226.4 Items impacting comparability:
Intangible assets impairment 17.4 7.9 7.9 - - - Special charges and
adjustments 11.1 7.4 7.4 23.0 18.0 18.0 PepsiCo merger fees 6.1 3.9
3.9 - - - Non-operating assets impairment 4.9 3.1 3.1 - - - Loss
from multi-employer pension plans 3.4 2.1 2.1 - - - Loss from
deconsolidation of businesses - 23.0 23.0 - - - Marketable
securities impairment - 1.3 1.3 - - - Gain from interest rate swap
termination - (20.9 ) (20.9 ) - - - Impact of 53rd week -
- - (8.9 ) (5.7 )
(5.7 ) Adjusted comparisons $ 423.8 $ 209.0 $ 209.0 $ 487.3 $ 247.9
$ 238.7
Weighted average common shares: Basic 121.6
125.2 Incremental effect of stock options and awards 2.3
2.0 Diluted 123.9 127.2
Earnings per share attributable to
PepsiAmericas, Inc. common shareholders: Basic -
As reported Continuing operations $ 1.49
$ 1.88 Discontinued operations -
(0.07 ) Total $
1.49 $ 1.81 Basic - As adjusted
Continuing operations $ 1.72 $ 1.98 Discontinued operations
- (0.07 ) Total $ 1.72 $ 1.91
Diluted - As reported Continuing operations $
1.46 $ 1.85 Discontinued operations
- (0.07 ) Total
$ 1.46 $ 1.78 Diluted -
As adjusted Continuing operations $ 1.69 $ 1.95 Discontinued
operations - (0.07 ) Total $ 1.69 $
1.88
Notes to condensed consolidated financial statements
(unaudited) - continued:
Adjustments included in this
earnings release were as follows:
Intangible asset
impairment: In fiscal year 2009, we recorded a $17.4 million
impairment charge ($7.9 million net of taxes and noncontrolling
interests) on our Sandora and Sadochok brands. This non-cash charge
resulted from our determination that the carrying amount of these
indefinite life intangible assets exceeded their fair value.
Special charges and
adjustments: In the fourth quarter and fiscal year 2009, we
recorded special charges totaling $2.7 million and $11.1 million,
respectively. In Central and Eastern Europe (CEE), we recorded
special charges of $2.8 million and $9.8 million in the fourth
quarter and fiscal year 2009, respectively, related to the
restructuring of our Hungary operations, primarily for severance,
fixed asset impairments and lease exit costs. We also recorded $1.3
million of special charges, net of recoveries, in the Caribbean and
the U.S. related to restructuring costs in fiscal year 2009.
In the fourth quarter and fiscal year 2008, we recorded special
charges and adjustments totaling $15.3 million and $23.0 million,
respectively. We recorded special charges of $9.1 million and $16.8
million in the fourth quarter and fiscal year 2008, respectively.
In the Caribbean, we recorded $3.1 million and $9.0 million of
special charges in the fourth quarter and fiscal year 2008,
respectively, which consisted of severance and impairment charges
related to an intangible asset and fixed assets. As a result of
various realignment initiatives in the fourth quarter and fiscal
year 2008, we recorded special charges of $2.9 million and $4.1
million, respectively, in the U.S. and $0.7 million and $1.3
million, respectively, in CEE related to severance, fixed asset
impairment and lease termination costs. We also recorded a legal
contingency of $2.4 million in our CEE operations in the fourth
quarter of fiscal year 2008.
In the fourth quarter of fiscal year 2008, we determined that we
had improperly accounted for certain U.S. employee benefit
obligations in prior years. Accordingly, we recorded an
out-of-period accounting adjustment of $6.2 million to increase the
benefit obligation as of the end of fiscal year 2008.
PepsiCo merger fees: We
have entered into a merger agreement with PepsiCo, dated August 3,
2009, whereby PepsiAmericas will merge with and into a wholly owned
subsidiary of PepsiCo, subject to the satisfaction or waiver of
customary closing conditions, including the receipt of regulatory
approval and approval of the transaction by our stockholders. In
the fourth quarter and fiscal year 2009, we recorded $2.1 million
and $6.1 million, respectively, of fees associated with the pending
merger with PepsiCo in SD&A in our U.S. geographic segment. In
connection with this merger transaction, we have retained certain
external advisors and expect to incur aggregate fees in the range
of $25 million to $30 million.
Non-operating assets
impairment: In fiscal year 2009, we recorded a $4.9 million
write-down of non-operating assets in the U.S. in SD&A.
Unrealized losses (gains) on
derivatives: Unrealized losses (gains) on derivatives
consists of the change in market value of derivative instruments
that were not designated as hedging instruments. In the fourth
quarter of fiscal year 2009, we recorded $2.5 million of unrealized
losses on derivatives in the U.S. related to commodity contracts;
$2.2 million was recorded in costs of goods sold and $0.3 million
was recorded in SD&A. In the fourth quarter of fiscal year
2008, we recorded $0.6 million of unrealized gains on derivatives
in the U.S. related to commodity contracts; $0.1 million loss was
recorded in costs of goods sold and $0.7 million gain was recorded
in SD&A.
Loss from multi-employer pension
plans: During the fourth quarter of 2009, we recorded a $3.4
million loss related to our decision to exit a multi-employer
pension plan in the U.S. in SD&A.
Loss from deconsolidation of
business: On July 3, 2009, we formed a strategic joint
venture with The Central America Beverage Corporation (CABCORP) to
combine PepsiAmericas’ Caribbean operations, excluding the Bahamas,
with CABCORP’s Central American operations. Upon execution of the
joint venture agreement, we deconsolidated our Caribbean business
resulting in a non-cash loss of $25.8 million ($23.0 million net of
taxes). This loss included the recognition of deferred losses
associated with cumulative translation adjustments of $19.2 million
and unrecognized pension losses of $6.5 million, which were
previously included in accumulated other comprehensive loss.
Marketable securities
impairment: In fiscal year 2009, we recorded an
other-than-temporary loss of $2.1 million ($1.3 million net of
taxes) to write-off an equity security, Northfield Laboratories,
Inc., that was classified as available-for-sale on our Condensed
Consolidated Balance Sheet. The loss was recorded in other expense,
net.
Gain from interest rate swap
termination: In the fourth quarter of fiscal year 2009, we
recognized a gain of $33.0 million ($20.9 million net of taxes)
from the termination of an interest rate swap based on our
determination that interest payments associated with a forecasted
debt issuance for which the interest rate swap was designated was
probable not to occur. The gain was recorded in interest (income)
expense.
Impact of 53rd Week: Our
fiscal year ends on the Saturday closest to December 31 and, as a
result, an additional week is added every five to six years. Fiscal
year 2009 consisted of 52 weeks ending on January 2, 2010. Fiscal
year 2008 consisted of 53 weeks ending on January 3, 2009. Our CEE
operations are based on a calendar year ending December 31 and,
therefore, are not impacted by the 53rd week. Various estimates and
assumptions were made to quantify the impact of the additional week
of operations. We estimated that the 53rd week impacted quarter and
fiscal year 2008 results as follows:
53rd Week Impact U.S. Caribbean
Worldwide Net sales $ 48.5 $ 4.2 $ 52.7 Cost
of goods sold 28.4 3.2 31.6 Selling, delivery and administrative
expenses 11.3 0.9 12.2 Operating income 8.8 0.1 8.9 Net income
attributable to PepsiAmericas, Inc. - - 5.7
Notes to condensed consolidated financial statements
(unaudited) - continued:
We have provided the table below that summarizes the adjustments
to the most comparable U.S. GAAP measurement:
Fiscal Year (unaudited, in millions)
2009
2008 Net cash provided by operating activities of
continuing operations $ 308.6 $ 500.6 Accounts receivable
securitization 150.0 - Capital investments (235.7 ) (248.9 )
Proceeds from the sale of property and equipment 21.6 7.5 Net
operating cash flows used in discontinued operations (2.2 )
(9.4 ) Adjusted operating cash flow
$
242.3 $ 249.8
Included in adjusted operating cash flow for fiscal year 2009
were $5.3 million of fees incurred related to our pending merger
with PepsiCo, Inc.
Included in adjusted operating cash flow for fiscal year 2008
was the benefit of an additional week of operating results and
related cash flow.
Adjusted operating cash flow in any one year may be affected by
investment initiatives or by the timing of routine cash receipts
and disbursements.
Notes to condensed consolidated financial statements
(unaudited) - continued:
Cause of Change Tables
Fiscal Year 2009 compared to
Fiscal Year 2008 U.S. CEE Caribbean
Worldwide
Volume Change
Constant territory volume (3.6 %) (12.8 %) (15.9 %) (7.0 %) Impact
of 53rd week (1.4 %) - - (0.9 %) Deconsolidation of Caribbean* -
- (42.3 %) (2.2 %) Change in reported volume (5.0 %)
(12.8 %) (58.2 %) (10.1 %)
Net Sales Change
Volume impact** (3.1 %) (11.8 %) (13.8 %) (6.1 %) Net price per
case, excluding impact of foreign currency 4.1 % 7.7 % 7.0 % 5.6 %
Impact of foreign currency - (21.5 %) (7.4 %) (5.9 %) Impact of
53rd week (1.4 %) - - (1.0 %) Deconsolidation of Caribbean* - -
(43.5 %) (2.6 %) Non-core (0.3 %) (1.8 %) (1.4 %) (0.4 %)
Change in reported net sales
(0.7 %) (27.4 %) (59.1 %) (10.4 %)
Cost of Goods Sold Change
Volume impact** (3.0 %) (11.6 %) (13.9 %) (5.9 %) Cost per case,
excluding impact of foreign currency 4.6 % - 6.7 % 3.7 % Impact of
foreign currency - (12.3 %) (7.7 %) (3.5 %) Impact of 53rd week
(1.4 %) - - (1.0 %) Deconsolidation of Caribbean* - - (42.8 %) (3.2
%) Non-core (0.5 %) (0.8 %) (1.5 %) (0.3 %) Change in reported cost
of goods sold (0.3 %) (24.7 %) (59.2 %) (10.2 %)
SD&A Expense Change
Cost impact, excluding impact of foreign currency (1.8 %) (7.0 %)
(6.7 %) (3.2 %) Impact of foreign currency - (14.8 %) (8.1 %) (3.8
%) Impact of 53rd week (1.1 %) - - (0.8 %) Deconsolidation of
Caribbean* - - (42.4 %) (1.8 %) Other non-comparable items*** 1.4 %
- - 1.0 % Change in reported SD&A expense (1.5 %)
(21.8 %) (57.2 %) (8.6 %)
Operating Income Change
Operating results, excluding impact of foreign currency 6.2 % 30.5
% 37.5 % 13.5 % Impact of foreign currency - (86.2 %) 75.0 % (26.6
%) Impact of 53rd week (2.8 %) - - (1.5 %) Deconsolidation of
Caribbean* - - (145.6 %) (0.6 %) Other non-comparable items*** (1.2
%) (16.1 %) 111.9 % (4.3 %) Change in reported operating income 2.2
% (71.8 %) 78.8 % (19.5 %) * The amounts in this table
represent the impact of excluding the operating results for the
Caribbean business in the third and fourth quarters of fiscal year
2008. ** The amounts in this table represent the dollar
impact on net sales and cost of goods sold due to changes in volume
and are not intended to equal the absolute change in volume.
*** Other non-comparable items in SD&A expense include PepsiCo
merger fees, loss from multi-employer pension plans and
non-operating assets impairment. Other non-comparable items in
operating income include intangible assets impairment, special
charges and adjustments, PepsiCo merger fees, non-operating assets
impairment and loss from multi-employer pension plans.
Pepsiamericas (NYSE:PAS)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Pepsiamericas (NYSE:PAS)
Gráfica de Acción Histórica
De May 2023 a May 2024