ORLANDO, Fla., July 24,
2019 /PRNewswire/ -- (NYSE: TUP) Tupperware Brands
Corporation today announced second quarter 2019 operating results
and updated its outlook for full year 2019.
Second Quarter Financial & Operational Updates
- Second quarter sales down 11% versus last year and 7% in local
currency+
- Adjusted pre-tax return on sales of 14%; within guidance
range
- GAAP diluted E.P.S. $0.81 versus
$1.26 in prior year
- Adjusted* diluted E.P.S. $0.98;
within guidance range
- Reducing full-year 2019 sales and E.P.S. guidance
- Total sales force size up 1%
- Tricia Stitzel elected Chairman
of the Board of Directors, effective May 22,
2019
- Sandra Harris appointed Chief
Financial Officer, effective April 1,
2019
"Overall, the business fell short of our expectations in some
markets as geopolitical concerns and lower consumer spending
headwinds in two of our key markets resulted in a miss of our local
currency sales expectations as we worked to adjust our product and
promotion mix accordingly," said Tricia
Stitzel, Chairman and Chief Executive Officer of Tupperware
Brands. "Despite these challenges, we met the low end of our
adjusted earnings per share guidance for the quarter after
considering two cents worse foreign
currency since we provided guidance."
Stitzel continued, "In my first quarter as Chairman, my primary
objective was to accelerate our work toward refocusing our
leadership team on the next wave of growth by revitalizing the
core, expanding access to our products through harmonized channels
and continuing to streamline the organization. We believe this
realignment will allow us to adapt our business to the dynamically
changing consumer trends and to better enable our network of 3
million sellers, and ultimately drive sustainable shareholder
value."
Second Quarter Results: (as compared with last year)
- Second quarter 2019 sales were $475.3
million, down 11% and local currency sales were down 7%
- Europe - Sales $121.5 million, down 8% and local currency sales
down 2%
- Asia Pacific - Sales
$155.5 million, down 14% and local
currency sales down 10%
- North America - Sales
$124.7 million, down 9% and local
currency sales down 9%
- South America - Sales
$73.6 million, down 14% and local
currency sales down 3%
- Net income of $39.4 million or
$0.81 diluted per share compared with
$63.8 million and $1.26 diluted per share last year
- Adjusted Net Income of $47.7
million or $0.98 diluted per
share compared with $55.5 million or
$1.09 diluted per share last
year
2019 Outlook
Based on current business trends and foreign currency rates, the
Company's third quarter and revised fiscal 2019 full year outlook
is provided below.
Company Level
|
13 Weeks
Ended
|
|
52 Weeks
Ended
|
|
|
Sep 28,
2019
|
|
Sep 29,
2018
|
|
Dec 28,
2019
|
|
Dec 29,
2018
|
|
|
Low
|
High
|
|
|
|
Low
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD Sales Growth vs
Prior Year
|
(12)
|
%
|
(10)
|
%
|
|
(10)
|
%
|
|
(11)
|
%
|
(9)
|
%
|
|
(8)
|
%
|
|
GAAP EPS
|
$0.67
|
|
$0.72
|
|
|
$0.79
|
|
|
$2.94
|
|
$3.09
|
|
|
$3.11
|
|
|
GAAP Pre-Tax
ROS
|
10.3
|
%
|
10.9
|
%
|
|
11.8
|
%
|
|
11.7
|
%
|
12.0
|
%
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
Currency+ Sales Growth vs Prior Year
|
(11)
|
%
|
(9)
|
%
|
(b)
|
(2)
|
%
|
(c)
|
(8)
|
%
|
(6)
|
%
|
|
(5)
|
%
|
|
EPS Excluding
Items*
|
$0.61
|
|
$0.66
|
|
|
$0.91
|
|
|
$3.45
|
|
$3.60
|
|
|
$4.30
|
|
|
Pre-Tax ROS Excluding
Items*
|
9.9
|
%
|
10.4
|
%
|
|
12.7
|
%
|
|
12.9
|
%
|
13.1
|
%
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
FX Impact on EPS
Comparison (a)
|
$0.01
|
|
$0.01
|
|
|
|
|
($0.17)
|
|
($0.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
Operations
|
|
|
|
|
|
$80M
|
$95M
|
|
$97M
|
|
Unallocated
Expenses
|
|
|
|
|
|
Low $30M
|
|
|
|
Net Interest
Expense
|
|
|
|
|
|
$40M
|
|
|
|
Tax Rate
|
|
|
|
|
|
28.6%
|
|
24.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of Change in
Hedge Accounting
|
$4.5M
|
|
|
|
$16.1M
|
|
|
|
|
(a) Impact of changes
in foreign currency vs. prior year is updated monthly at:
Tupperware Brands Foreign Exchange Translation Impact
Update.
|
(b) Includes 2-point
negative impact of lower B2B sales in 2019 vs 2018.
|
(c) Includes 2-point
negative impact from 2017 closure of BeautiControl and combination
of Japanese businesses.
|
|
* See Non-GAAP
Financial Measures Reconciliation Schedules.
|
+ 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.
|
Segment Level Guidance - Full Year Restated
The sales and profit for the remainder of the year are lower and
reflective of the consumer trends in key markets. Lower GDP in both
China and Brazil coupled with changing consumer and
sales force behavior are contributing to the reduction.
- Europe, Asia Pacific and South America sales down 5-8%. North America down 8-10%.
- Segment profit return on sales will be 130-150 basis points
below last year.
Share Repurchases
For 2019, the Company believes it is most important to invest in
our transformation, continue to pay the dividend and reduce
leverage rather than repurchasing shares. The Company targets, over
time, a debt-to-EBITDA ratio, as defined under its revolving Credit
Agreement, of below 2 times.
Second Quarter Earnings Conference Call
Tupperware Brands will conduct a conference call today,
Wednesday, July 24, 2019, at 8:30 am
Eastern time. The conference call will be webcast and
accessible, along with a copy of this news release and slides
presented during the conference call, on
ir.tupperwarebrands.com.
About Tupperware Brands Corporation
Through an independent sales force of 3.1 million, Tupperware
Brands Corporation is the leading global marketer of innovative,
premium household, beauty and personal care products across
multiple brands utilizing social selling. 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, Fuller
Cosmetics, NaturCare, Nutrimetics and Nuvo brands. The Company's
stock is listed on the New York Stock Exchange (NYSE: TUP).
Safe Harbor Statement
Statements contained in this release that are not historical
fact and use predictive words such as "estimates", "outlook",
"guidance", "expects", "intends", "target", "plans", "may", "will",
and similar words are forward-looking statements. These
forward-looking statements and related assumptions involve risks
and uncertainties that could cause actual results and outcomes to
differ materially from any forward-looking statements or views
expressed herein. These risks and uncertainties include, but are
not limited to, the following: the success and timing of growth and
transformation initiatives; impairment and other charges related to
purchase accounting goodwill and restructuring actions; risk of
foreign-currency fluctuations and the currency translation impact
on the Company's business associated with these fluctuations;
uncertainties related to the interpretation of, and regulations
under, the recently enacted U.S. Tax Cuts and Jobs Act of 2017 (the
"Tax Act"); the Company's future tax-planning initiatives; any
prospective or retrospective increases in duties on the Company's
products; and any adverse results of tax audits or unfavorable
changes to tax laws in the Company's various markets; risk that
direct selling laws and regulations in any of the Company's markets
may be modified, interpreted or enforced in a manner that results
in negative changes to the Company's business models or negatively
impacts its revenue, sales force or business, including through the
interruption of recruiting and sales activities, loss of licenses,
imposition of fines, or any other adverse actions or events;
unpredictable economic and political conditions and events
globally; the success of new product introductions and promotional
programs to generate interest among the Company's sales force and
customers and generate selling activities on a sustained basis;
success in arranging and success of business-to-business selling
arrangements and their timing; success of buyers in obtaining
financing or attracting tenants for commercial and residential
developments; the timing and success of closing asset sales related
to re-engineering actions; risks related to accurately predicting,
delivering or maintaining sufficient quantities of products to
support planned initiatives or launch strategies; governmental
approvals of materials for use in food containers and beauty,
personal care, nutritional and nutraceutical products; continued
competitive pressures for products or sales force in the Company's
markets; leadership development and succession changes; 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 exclude certain
items that at times materially impact the comparability of the
Company's results of operations. The adjusted information is
intended to be indicative of the Company's 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 include comparisons related to
profit. They exclude gains from the sale of property, plant and
equipment and insurance settlements related to casualty losses,
other income in connection with real estate related operations,
inventory obsolescence and operating losses in conjunction with
decisions to exit, wind-down or significantly restructure
businesses, along with asset sales related to exited or
restructured businesses, certain asset retirement obligations,
re-engineering including the exit of businesses and fixed asset
impairment charges, pension settlements and significant discrete
impacts of new tax laws upon adoption. 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 its 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 periods. 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 re-engineering activities, including the
exit of businesses and upon liquidation of operations in a country,
the recognition in income of amounts previously recorded in equity
as a cumulative translation adjustment. Also, the Company excludes
the impact of changes in tax laws on cumulative deferred taxes from
items previously recorded as cumulative translation adjustments.
The Company believes these amounts are similarly volatile and
impact the comparability of earnings across periods. 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 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 Company accounts for its operations in
Argentina and Venezuela using hyper-inflation rules under
GAAP. Due to volatility in changes in exchange rates, the Company's
non-GAAP measures exclude for analysis and predictive purposes, the
impact from devaluations on the Argentine peso and Venezuelan
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.
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.
The Company enters into a limited number of business-to-business
transactions, in which it sells products to a partner company.
Since the level of these sales is volatile from quarter-to-quarter
and year-to-year, and is largely independent of the activities of
its sales force, the Company at times in addition to disclosing
reported sales, discloses "core" sales amounts and comparisons,
which exclude amounts sold under business-to-business transactions.
This illustrates sales results and trends directly associated with
activities of its independent sales force. Also, 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. 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 core sales and local currency
results should be considered in addition to, not as a substitute
for, results reported in accordance with GAAP. Core sales and
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 may not be comparable with similarly labeled
amounts disclosed by others.
TUPPERWARE BRANDS
CORPORATION
|
SECOND QUARTER
2019 SALES FORCE STATISTICS*
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
All
Units
|
Reported
Inc/(Dec)
vs. Q2
'18
%
|
Restated+
Inc/(Dec)
vs. Q2
'18
%
|
|
Active
Sales
Force
|
Inc/(Dec)
vs. Q2
'18
%
|
|
Total
Sales
Force
|
Inc/(Dec)
vs. Q2
'18
%
|
Europe
|
(8)
|
(2)
|
|
98,696
|
|
(3)
|
|
772,917
|
|
3
|
Asia
Pacific
|
(14)
|
(10)
|
|
143,687
|
|
(17)
|
|
914,370
|
|
(7)
|
North
America
|
(9)
|
(9)
|
|
199,346
|
|
(8)
|
|
783,235
|
|
1
|
South
America
|
(14)
|
(3)
|
|
123,487
|
|
(6)
|
b
|
591,003
|
|
12
|
Total All
Units
|
(11)
|
(7)
|
|
565,216
|
|
(9)
|
|
3,061,525
|
|
1
|
|
|
|
|
|
|
|
|
|
Emerging Market
Units
|
|
|
|
|
|
|
|
|
Europe
|
(17)
|
(8)
|
|
78,630
|
|
—
|
|
614,622
|
|
8
|
Asia
Pacific
|
(13)
|
(9)
|
|
123,655
|
|
(17)
|
|
833,498
|
|
(7)
|
North
America
|
(5)
|
(7)
|
|
185,420
|
|
(8)
|
|
666,164
|
|
—
|
South
America
|
(14)
|
(3)
|
|
123,487
|
|
(6)
|
|
591,003
|
|
12
|
Total Emerging Market
Units
|
(12)
|
(7)
|
|
511,192
|
|
(9)
|
|
2,705,287
|
|
2
|
|
|
|
|
|
|
|
|
|
Established Market
Units
|
|
|
|
|
|
|
|
|
Europe
|
(2)
|
2
|
a
|
20,066
|
|
(15)
|
|
158,295
|
|
(11)
|
Asia
Pacific
|
(17)
|
(14)
|
|
20,032
|
|
(13)
|
|
80,872
|
|
(5)
|
North
America
|
(14)
|
(13)
|
|
13,926
|
|
(6)
|
c
|
117,071
|
|
4
|
South
America
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
Total Established
Market Units
|
(9)
|
(6)
|
|
54,024
|
|
(12)
|
|
356,238
|
|
(5)
|
|
* Sales force
statistics as collected by the Company and, in some cases, provided
by distributors and sales force. The Company classifies Established
Markets as those operating in Western Europe, including Australia,
Japan, Scandinavia, and the United States and Canada, while the
remaining units are classified as Emerging Market Units. Active
Sales Force is defined as the average number of sellers ordering in
each cycle over the course of the quarter, whereas Total Sales
Force is defined as the number of sales force members of the units
at 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
lower active sales force than local currency sales comparison in
Europe's established markets was mainly due to business-to-business
(B2B) sales mainly in Tupperware France, which do not relate to
sales force statistics.
|
b The
lower active than total sales force comparison in South America was
mainly from Brazil, which had a lower removals, but lower active
sellers reflecting the difficulty in generating sales in a
challenging economic environment.
|
c The
lower active than total sales force comparison in North America
established markets was mainly from the United States and Canada,
which reflected a weak response to promotional offers.
|
TUPPERWARE
BRANDS CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
(In millions,
except per share data)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
26 Weeks
Ended
|
|
26 Weeks
Ended
|
|
Jun
29,
2019
|
|
Jun
30,
2018
|
|
Jun
29,
2019
|
|
Jun
30,
2018
|
Net sales
|
$
|
475.3
|
|
|
$
|
535.4
|
|
|
$
|
962.6
|
|
|
$
|
1,078.0
|
|
Cost of products
sold
|
154.6
|
|
|
173.5
|
|
|
315.8
|
|
|
352.5
|
|
Gross
margin
|
320.7
|
|
|
361.9
|
|
|
646.8
|
|
|
725.5
|
|
|
|
|
|
|
|
|
|
Delivery, sales and
administrative expense
|
247.7
|
|
|
272.8
|
|
|
510.4
|
|
|
562.0
|
|
Re-engineering and
impairment charges
|
4.1
|
|
|
2.1
|
|
|
8.4
|
|
|
9.7
|
|
Gain (loss) on
disposal of assets
|
(0.1)
|
|
|
12.4
|
|
|
(1.0)
|
|
|
14.6
|
|
Operating
income
|
68.8
|
|
|
99.4
|
|
|
127.0
|
|
|
168.4
|
|
|
|
|
|
|
|
|
|
Interest
income
|
0.4
|
|
|
0.7
|
|
|
1.0
|
|
|
1.4
|
|
Interest
expense
|
10.8
|
|
|
11.9
|
|
|
21.0
|
|
|
23.0
|
|
Other (income)
expense, net
|
(3.4)
|
|
|
(0.4)
|
|
|
(6.7)
|
|
|
(0.2)
|
|
Income before income
taxes
|
61.8
|
|
|
88.6
|
|
|
113.7
|
|
|
147.0
|
|
Provision for income
taxes
|
22.4
|
|
|
24.8
|
|
|
37.4
|
|
|
47.5
|
|
Net income
|
$
|
39.4
|
|
|
$
|
63.8
|
|
|
$
|
76.3
|
|
|
$
|
99.5
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
Basic income per
share
|
$
|
0.81
|
|
|
$
|
1.26
|
|
|
$
|
1.57
|
|
|
$
|
1.96
|
|
Diluted income per
share
|
$
|
0.81
|
|
|
$
|
1.26
|
|
|
$
|
1.56
|
|
|
$
|
1.95
|
|
TUPPERWARE
BRANDS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks
Ended
|
|
13 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
26 Weeks
Ended
|
|
26 Weeks
Ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
Jun
29,
2019
|
|
Jun
30,
2018
|
|
%
Inc
(Dec)
|
|
%
Inc
(Dec)
|
|
Exchange
|
|
Jun
29,
2019
|
|
Jun
30,
2018
|
|
%
|
|
%
|
|
Exchange
|
|
|
|
Impact*
|
|
|
|
Inc
(Dec)
|
|
Inc
(Dec)
|
|
Impact*
|
Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
121.5
|
|
|
$
|
132.7
|
|
|
(8)
|
|
|
(2)
|
|
|
$
|
(8.5)
|
|
|
$
|
260.1
|
|
|
$
|
276.6
|
|
|
(6)
|
|
|
3
|
|
|
$
|
(24.6)
|
|
Asia
Pacific
|
155.5
|
|
|
180.0
|
|
|
(14)
|
|
|
(10)
|
|
|
(7.2)
|
|
|
311.6
|
|
|
352.2
|
|
|
(12)
|
|
|
(7)
|
|
|
(15.9)
|
|
North
America
|
124.7
|
|
|
136.8
|
|
|
(9)
|
|
|
(9)
|
|
|
0.9
|
|
|
244.3
|
|
|
271.8
|
|
|
(10)
|
|
|
(9)
|
|
|
(1.9)
|
|
South
America
|
73.6
|
|
|
85.9
|
|
|
(14)
|
|
|
(3)
|
|
|
(10.3)
|
|
|
146.6
|
|
|
177.4
|
|
|
(17)
|
|
|
(3)
|
|
|
(26.7)
|
|
|
$
|
475.3
|
|
|
$
|
535.4
|
|
|
(11)
|
|
|
(7)
|
|
|
$
|
(25.1)
|
|
|
$
|
962.6
|
|
|
$
|
1,078.0
|
|
|
(11)
|
|
|
(5)
|
|
|
$
|
(69.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
12.8
|
|
|
$
|
15.1
|
|
|
(15)
|
|
|
(7)
|
|
|
$
|
(1.4)
|
|
|
$
|
30.5
|
|
|
$
|
27.5
|
|
|
11
|
|
|
25
|
|
|
$
|
(3.1)
|
|
Asia
Pacific
|
37.2
|
|
|
45.4
|
|
|
(18)
|
|
|
(14)
|
|
|
(2.3)
|
|
|
67.2
|
|
|
83.3
|
|
|
(19)
|
|
|
(15)
|
|
|
(4.4)
|
|
North
America
|
20.4
|
|
|
22.7
|
|
|
(10)
|
|
|
(11)
|
|
|
0.2
|
|
|
37.8
|
|
|
41.7
|
|
|
(9)
|
|
|
(9)
|
|
|
(0.3)
|
|
South
America
|
13.1
|
|
|
17.8
|
|
|
(27)
|
|
|
(20)
|
|
|
(1.5)
|
|
|
22.0
|
|
|
35.1
|
|
|
(37)
|
|
|
(29)
|
|
|
(4.4)
|
|
|
83.5
|
|
|
101.0
|
|
|
(17)
|
|
|
(13)
|
|
|
(5.0)
|
|
|
157.5
|
|
|
187.6
|
|
|
(16)
|
|
|
(10)
|
|
|
(12.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(7.1)
|
|
|
(11.5)
|
|
|
(39)
|
|
|
(42)
|
|
|
(0.4)
|
|
|
(14.4)
|
|
|
(23.9)
|
|
|
(40)
|
|
|
(43)
|
|
|
(1.1)
|
|
Gain (loss) on
disposal of assets
|
(0.1)
|
|
|
12.4
|
|
|
+
|
|
|
+
|
|
|
—
|
|
|
(1.0)
|
|
|
14.6
|
|
|
+
|
|
|
+
|
|
|
—
|
|
Re-engineering and
impairment charges
|
(4.1)
|
|
|
(2.1)
|
|
|
94
|
|
|
94
|
|
|
—
|
|
|
(8.4)
|
|
|
(9.7)
|
|
|
(14)
|
|
|
(14)
|
|
|
—
|
|
Interest expense,
net
|
(10.4)
|
|
|
(11.2)
|
|
|
(7)
|
|
|
(7)
|
|
|
—
|
|
|
(20.0)
|
|
|
(21.6)
|
|
|
(7)
|
|
|
(7)
|
|
|
—
|
|
Income before
taxes
|
61.8
|
|
|
88.6
|
|
|
(30)
|
|
|
(26)
|
|
|
(5.4)
|
|
|
113.7
|
|
|
147.0
|
|
|
(23)
|
|
|
(15)
|
|
|
(13.3)
|
|
Provision for income
taxes
|
22.4
|
|
|
24.8
|
|
|
(10)
|
|
|
(4)
|
|
|
(1.4)
|
|
|
37.4
|
|
|
47.5
|
|
|
(21)
|
|
|
(14)
|
|
|
(3.8)
|
|
Net income
|
$
|
39.4
|
|
|
$
|
63.8
|
|
|
(38)
|
|
|
(34)
|
|
|
$
|
(4.0)
|
|
|
$
|
76.3
|
|
|
$
|
99.5
|
|
|
(23)
|
|
|
(15)
|
|
|
$
|
(9.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
(diluted)
|
$
|
0.81
|
|
|
$
|
1.26
|
|
|
(36)
|
|
|
(31)
|
|
|
$
|
(0.08)
|
|
|
$
|
1.56
|
|
|
$
|
1.95
|
|
|
(20)
|
|
|
(12)
|
|
|
$
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares
|
48.8
|
|
|
50.7
|
|
|
|
|
|
|
|
|
48.8
|
|
|
51.0
|
|
|
|
|
|
|
|
|
|
|
|
|
* 2019 actual
compared with 2018 translated at 2019 exchange rates
|
|
|
|
|
+ Change greater than 100%
|
|
|
|
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(UNAUDITED)
|
|
|
|
|
(In
millions, except per share data)
|
13 Weeks Ended Jun
29, 2019
|
|
13 Weeks Ended Jun
30, 2018
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Foreign
Exchange
Impact
|
|
Adj's
|
|
Restated*
Excl
Adj's
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
12.8
|
|
|
$
|
(0.1)
|
|
f
|
$
|
12.7
|
|
|
$
|
15.1
|
|
|
$
|
(1.4)
|
|
|
$
|
—
|
|
|
$
|
13.7
|
|
Asia
Pacific
|
37.2
|
|
|
0.4
|
|
a
|
37.6
|
|
|
45.4
|
|
|
(2.3)
|
|
|
0.4
|
|
a,f
|
43.5
|
|
North
America
|
20.4
|
|
|
1.3
|
|
a
|
21.7
|
|
|
22.7
|
|
|
0.2
|
|
|
1.6
|
|
a,b
|
24.5
|
|
South
America
|
13.1
|
|
|
0.1
|
|
a,c
|
13.2
|
|
|
17.8
|
|
|
(1.5)
|
|
|
0.2
|
|
a,c
|
16.5
|
|
|
83.5
|
|
|
1.7
|
|
|
85.2
|
|
|
101.0
|
|
|
(5.0)
|
|
|
2.2
|
|
|
98.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(7.1)
|
|
|
0.1
|
|
b
|
(7.0)
|
|
|
(11.5)
|
|
|
(0.4)
|
|
|
—
|
|
|
(11.9)
|
|
Gain (loss) on
disposal of assets
|
(0.1)
|
|
|
0.1
|
|
d
|
—
|
|
|
12.4
|
|
|
—
|
|
|
(12.4)
|
|
d
|
—
|
|
Re-engineering and
impairment charges
|
(4.1)
|
|
|
4.1
|
|
e
|
—
|
|
|
(2.1)
|
|
|
—
|
|
|
2.1
|
|
e
|
—
|
|
Interest expense,
net
|
(10.4)
|
|
|
—
|
|
|
(10.4)
|
|
|
(11.2)
|
|
|
—
|
|
|
—
|
|
|
(11.2)
|
|
Income before
taxes
|
61.8
|
|
|
6.0
|
|
|
67.8
|
|
|
88.6
|
|
|
(5.4)
|
|
|
(8.1)
|
|
|
75.1
|
|
Provision for income
taxes
|
22.4
|
|
|
(2.3)
|
|
h
|
20.1
|
|
|
24.8
|
|
|
(1.4)
|
|
|
(3.8)
|
|
h
|
19.6
|
|
Net income
|
$
|
39.4
|
|
|
$
|
8.3
|
|
|
$
|
47.7
|
|
|
$
|
63.8
|
|
|
$
|
(4.0)
|
|
|
$
|
(4.3)
|
|
|
$
|
55.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
(diluted)
|
$
|
0.81
|
|
|
$
|
0.17
|
|
|
$
|
0.98
|
|
|
$
|
1.26
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.09)
|
|
|
$
|
1.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26 Weeks Ended Jun
29, 2019
|
|
26 Weeks Ended Jun
30, 2018
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Foreign
Exchange
Impact
|
|
Adj's
|
|
Restated*
Excl
Adj's
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
30.5
|
|
|
$
|
0.1
|
|
b,f
|
$
|
30.6
|
|
|
$
|
27.5
|
|
|
$
|
(3.1)
|
|
|
$
|
0.4
|
|
f
|
$
|
24.8
|
|
Asia
Pacific
|
67.2
|
|
|
0.8
|
|
a
|
68.0
|
|
|
83.3
|
|
|
(4.4)
|
|
|
1.0
|
|
a,b,f
|
79.9
|
|
North
America
|
37.8
|
|
|
2.7
|
|
a,g
|
40.5
|
|
|
41.7
|
|
|
(0.3)
|
|
|
4.4
|
|
a,b,g
|
45.8
|
|
South
America
|
22.0
|
|
|
0.5
|
|
a,c
|
22.5
|
|
|
35.1
|
|
|
(4.4)
|
|
|
0.6
|
|
a,c
|
31.3
|
|
|
157.5
|
|
|
4.1
|
|
|
161.6
|
|
|
187.6
|
|
|
(12.2)
|
|
|
6.4
|
|
|
181.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
(14.4)
|
|
|
0.1
|
|
|
(14.3)
|
|
|
(23.9)
|
|
|
(1.1)
|
|
|
—
|
|
|
(25.0)
|
|
Gain (loss) on
disposal of assets
|
(1.0)
|
|
|
1.0
|
|
d
|
—
|
|
|
14.6
|
|
|
—
|
|
|
(14.6)
|
|
d
|
—
|
|
Re-engineering and
impairment charges
|
(8.4)
|
|
|
8.4
|
|
e
|
—
|
|
|
(9.7)
|
|
|
—
|
|
|
9.7
|
|
e
|
—
|
|
Interest expense,
net
|
(20.0)
|
|
|
—
|
|
|
(20.0)
|
|
|
(21.6)
|
|
|
—
|
|
|
—
|
|
|
(21.6)
|
|
Income before
taxes
|
113.7
|
|
|
13.6
|
|
|
127.3
|
|
|
147.0
|
|
|
(13.3)
|
|
|
1.5
|
|
|
135.2
|
|
Provision for income
taxes
|
37.4
|
|
|
(1.7)
|
|
h
|
35.7
|
|
|
47.5
|
|
|
(3.8)
|
|
|
(5.1)
|
|
h
|
38.6
|
|
Net income
(loss)
|
$
|
76.3
|
|
|
$
|
15.3
|
|
|
$
|
91.6
|
|
|
$
|
99.5
|
|
|
$
|
(9.5)
|
|
|
$
|
6.6
|
|
|
$
|
96.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share (diluted)
|
$
|
1.56
|
|
|
$
|
0.32
|
|
|
$
|
1.88
|
|
|
$
|
1.95
|
|
|
$
|
(0.18)
|
|
|
$
|
0.13
|
|
|
$
|
1.90
|
|
|
* 2019 actual
compared with 2018 translated at 2019 exchange rates.
|
a Amortization of intangibles of
acquired beauty units.
|
b Pension settlement
costs.
|
c As a
result of devaluations in the Venezuelan bolivar, and beginning
July 1, 2018, Argentine peso, as Venezuela and Argentina are
accounted for as hyperinflationary, the Company had negative
impacts of $0.4 million and $0.3 million in the first half of 2019
and 2018, respectively. These amounts were related to expense from
re-measuring bolivar and peso 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 made or purchased, rather than
the exchange rates in use when they were included in
income.
|
d Loss on disposal of assets in 2019
mainly relate to the write-off of assets in Tupperware France and
in Tupperware Brazil. In 2018, gains on disposal of assets mainly
relate to the sale of a warehouse in Japan and a building owned by
BeautiControl.
|
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, and in 2018, the costs
associated with the closure of BeautiControl and the French supply
chain facility.
|
f
Write-off of inventory and bad debt associated with changes in
business model.
|
g BeautiControl wind down loss and
inventory write-off.
|
h 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 STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
26 Weeks
Ended
|
|
26 Weeks
Ended
|
|
June
29,
2019
|
|
June
30,
2018
|
Operating
Activities:
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
|
1.3
|
|
|
$
|
(38.8)
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(27.2)
|
|
|
(37.6)
|
|
Proceeds from
disposal of property, plant & equipment
|
4.7
|
|
|
33.1
|
|
Net cash used in
investing activities
|
(22.5)
|
|
|
(4.5)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Dividend payments to
shareholders
|
(47.3)
|
|
|
(70.2)
|
|
Repurchase of common
stock
|
(0.8)
|
|
|
(51.1)
|
|
Repayment of
long-term debt and finance lease obligations
|
(1.0)
|
|
|
(1.3)
|
|
Net change in
short-term debt
|
85.2
|
|
|
127.6
|
|
Debt issuance
costs
|
(2.2)
|
|
|
—
|
|
Proceeds from
exercise of stock options
|
—
|
|
|
0.3
|
|
Net cash provided by
financing activities
|
33.9
|
|
|
5.3
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
2.0
|
|
|
(7.1)
|
|
Net change in cash,
cash equivalents and restricted cash
|
14.7
|
|
|
(45.1)
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
151.9
|
|
|
147.2
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
166.6
|
|
|
$
|
102.1
|
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
Jun 29,
2019
|
|
Dec 29,
2018
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
163.0
|
|
|
$
|
149.0
|
|
Other current
assets
|
496.0
|
|
|
471.6
|
|
Total current
assets
|
659.0
|
|
|
620.6
|
|
|
|
|
|
Property, plant and
equipment, net
|
275.7
|
|
|
276.0
|
|
Other
assets
|
497.7
|
|
|
412.2
|
|
Total
assets
|
$
|
1,432.4
|
|
|
$
|
1,308.8
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Short-term borrowings
and current portion of long-term debt
|
$
|
370.2
|
|
|
$
|
285.5
|
|
Accounts payable and
other current liabilities
|
404.1
|
|
|
473.6
|
|
Total current
liabilities
|
774.3
|
|
|
759.1
|
|
|
|
|
|
Long-term
debt
|
602.8
|
|
|
603.4
|
|
Other
liabilities
|
220.0
|
|
|
181.5
|
|
Total shareholders'
equity
|
(164.7)
|
|
|
(235.2)
|
|
Total liabilities and
shareholders' equity
|
$
|
1,432.4
|
|
|
$
|
1,308.8
|
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
July 24,
2019
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Third
Quarter
|
(In millions,
except per share data)
|
2018
Actual
|
|
2019
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
57.1
|
|
|
$
|
44.2
|
|
|
$
|
47.7
|
|
|
|
|
|
|
|
Income tax
|
$
|
18.0
|
|
|
$
|
11.3
|
|
|
$
|
12.4
|
|
Effective
Rate
|
32
|
%
|
|
26
|
%
|
|
26
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
39.1
|
|
|
$
|
32.9
|
|
|
$
|
35.3
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(16)
|
%
|
|
(10)
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
(1.5)
|
|
|
(13.2)
|
|
|
(13.2)
|
|
Re-engineering and
pension settlements
|
3.4
|
|
|
9.5
|
|
|
9.5
|
|
Net impact of
Venezuelan and Argentine currency devaluations
|
0.8
|
|
|
—
|
|
|
—
|
|
Acquired intangible
asset amortization
|
1.9
|
|
|
1.8
|
|
|
1.8
|
|
Income
tax(2)
|
1.2
|
|
|
(1.0)
|
|
|
(1.0)
|
|
Net Income
(adjusted)
|
$
|
44.9
|
|
|
$
|
30.0
|
|
|
$
|
32.4
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
0.4
|
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2018 restated for currency changes)
|
$
|
45.3
|
|
|
$
|
30.0
|
|
|
$
|
32.4
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(34)
|
%
|
|
(28)
|
%
|
|
|
|
|
|
|
Net income (GAAP) per
common share (diluted)
|
$
|
0.79
|
|
|
$
|
0.67
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(15)
|
%
|
|
(9)
|
%
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
0.91
|
|
|
$
|
0.61
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
0.92
|
|
|
$
|
0.61
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(34)
|
%
|
|
(28)
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
49.4
|
|
|
48.9
|
|
|
48.9
|
|
|
(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 2019 actual
and 2018 translated at 2019 currency exchange rates.
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES OUTLOOK RECONCILIATION SCHEDULE
|
July 24,
2019
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Full
Year
|
|
Full
Year
|
(In millions,
except per share data)
|
2018
Actual
|
|
2019
Outlook
|
|
|
|
Range
|
|
|
|
Low
|
|
High
|
Income before income
taxes
|
$
|
276.2
|
|
|
$
|
215.5
|
|
|
$
|
225.8
|
|
|
|
|
|
|
|
Income tax
|
$
|
120.3
|
|
|
$
|
72.1
|
|
|
$
|
75.1
|
|
Effective
Rate
|
44
|
%
|
|
33
|
%
|
|
33
|
%
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
155.9
|
|
|
$
|
143.4
|
|
|
$
|
150.7
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(8)
|
%
|
|
(3)
|
%
|
|
|
|
|
|
|
Adjustments(1):
|
|
|
|
|
|
Gains on disposal of
assets
|
$
|
(18.7)
|
|
|
$
|
(25.0)
|
|
|
$
|
(25.0)
|
|
Re-engineering and
pension settlements
|
19.3
|
|
|
37.9
|
|
|
37.9
|
|
Net impact of
Venezuelan and Argentine currency devaluations
|
2.1
|
|
|
0.3
|
|
|
0.3
|
|
Acquired intangible
asset amortization
|
7.6
|
|
|
7.2
|
|
|
7.2
|
|
Income
tax(2)
|
49.6
|
|
|
4.8
|
|
|
4.8
|
|
Net Income
(adjusted)
|
$
|
215.8
|
|
|
$
|
168.6
|
|
|
$
|
175.9
|
|
|
|
|
|
|
|
Exchange rate
impact(3)
|
(8.2)
|
|
|
—
|
|
|
—
|
|
Net Income (adjusted
and 2018 restated for currency changes)
|
$
|
207.6
|
|
|
$
|
168.6
|
|
|
$
|
175.9
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(19)
|
%
|
|
(15)
|
%
|
|
|
|
|
|
|
Net income, (GAAP)
per common share (diluted)
|
$
|
3.11
|
|
|
$
|
2.94
|
|
|
$
|
3.09
|
|
|
|
|
|
|
|
Net Income (adjusted)
per common share (diluted)
|
$
|
4.30
|
|
|
$
|
3.45
|
|
|
$
|
3.60
|
|
|
|
|
|
|
|
Net Income (adjusted
& restated) per common share (diluted)
|
$
|
4.13
|
|
|
$
|
3.45
|
|
|
$
|
3.60
|
|
|
|
|
|
|
|
% change from prior
year
|
|
|
(16)
|
%
|
|
(13)
|
%
|
|
|
|
|
|
|
Average number of
diluted shares (millions)
|
50.2
|
|
|
48.8
|
|
|
48.8
|
|
|
(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, as well as in 2018, a $46.5
million impact from adoption of 2017 tax law in the United
States.
|
(3) Difference between 2019 actual
and 2018 translated at 2019 currency exchange rates.
|
TUPPERWARE BRANDS
CORPORATION
|
ADJUSTED EBITDA
AND DEBT/ADJUSTED EBITDA*
|
(UNAUDITED)
|
|
|
|
As of and for
the
four quarters ended
|
|
June
29,
2019
|
Adjusted
EBITDA:
|
|
Net income
(loss)
|
$
|
132.7
|
|
Add:
|
|
Depreciation and
amortization
|
56.1
|
|
Gross interest
expense
|
44.5
|
|
Provision for income
taxes
|
110.2
|
|
Equity
compensation
|
12.0
|
|
Pre-tax
re-engineering and impairment charges
|
1.3
|
|
Other non-cash
extraordinary, unusual or non-recurring charges
|
11.5
|
|
Deduct:
|
|
Cash paid for
re-engineering
|
(36.3)
|
|
Gains on land sales,
insurance recoveries, etc.
|
(3.1)
|
|
Total Adjusted
EBITDA
|
$
|
328.9
|
|
|
|
Consolidated total
debt
|
$
|
973.0
|
|
Divided by adjusted
EBITDA
|
328.9
|
|
Debt to Adjusted
EBITDA Ratio
|
2.96
|
|
|
* Amounts and
calculations are based on the definitions and provisions of the
Company's $650 million Credit Agreement dated March 29, 2019
("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.
|
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SOURCE Tupperware Brands Corporation