ORLANDO, Fla., July 29, 2020 /PRNewswire/ -- (NYSE: TUP)
Tupperware Brands Corporation (the "Company") today reported
operating results for the second quarter ended June 27,
2020.
Second Quarter Financial & Operational Updates
- Second quarter sales down 16% versus last year and 8% in local
currency; excluding estimated COVID-19 impact, sales were estimated
to be flat with last year
- GAAP diluted E.P.S. of $1.30
versus $0.81 in the prior year
period
- Adjusted* diluted E.P.S. of $0.84
vs. $0.83 in the prior year
period
- Retired approximately $100
million of Senior Notes through cash tender offers and open
market purchases
- Realized approximately $60
million of $180 million
($150 million net) cost reduction
target for FY 2020
"In the second quarter we pivoted to a new way to lead the
business, a new way to operate the company and embraced a new
growth strategy. Our performance reflects progress made to
right size our cost structure and improve liquidity. We are
now increasing our efforts to contemporize Tupperware and become a
global leader in sustainable consumer solutions while leveraging
the consumer influence of our iconic brand," said Miguel Fernandez, President and Chief Executive
Officer of Tupperware Brands. "While we continue to navigate an
ever changing environment impacted by COVID-19, I want to thank all
of our team members and our sales force for quickly embracing
digital tools that contributed favorably to our performance.
We will also continue to focus on improving access for consumers to
our products while delivering new, innovative products that meet
their needs."
"The improvements in profitability achieved in the second
quarter demonstrate the ongoing commitment to improve operating
margins and deliver $180 million in
gross cost reductions in 2020. As we head into the second
half of the year, we will continue to explore initiatives designed
to improve our liquidity, proactively address near term debt
obligations, and build a stronger balance sheet," said Sandra Harris, Chief Financial Officer.
"Although our 4.75% 2021 Senior Notes became current in June, we
have successfully retired approximately $100
million of those notes at a discount to par.
Additionally, we continue to work with our advisors to explore
opportunities to repurchase, refinance or extend the maturity on
our debt, and we believe that our improved profitability and
revenue growth through the Turnaround Plan, together with the
anticipated sale of our Orlando
real estate and other non-core assets, will contribute to our
ability to meet our future debt obligations."
Second Quarter Results: (as compared with last year)
Second quarter 2020 sales were $397.4
million, down 16% and local currency sales were down
8%. While average active sales force was down 17%, sales per
active sales force was up 11% reflecting strong engagement by the
sales force utilizing digital tools and techniques to bring
Tupperware's relevant products to market during unprecedented
times.
- Europe - Sales $90.8 million, down 25% and local currency sales
down 20%
- Asia Pacific - Sales
$134.4 million, down 14% and local
currency sales down 11%
- North America - Sales
$124.0 million, down 1% and local
currency sales up 10%
- South America - Sales
$48.2 million, down 34% and local
currency sales down 12%
- Local currency sales would have been essentially flat,
excluding the estimated net adverse COVID-19 impact of $35 million
Net income improved 62% to $63.8
million or $1.30 diluted
earnings per share compared with net income of $39.4 million and $0.81 diluted earnings per share last year due to
savings from the cost reduction program and net gains on retirement
of debt and non-core assets, which were partially offset by higher
restructuring investments.
Liquidity and Capital Allocation
As of June 27, 2020, the Company
continues to be in compliance with its financial covenants under
its Credit Agreement.
As part of the Turnaround Plan, the Company continued to
prioritize the use of cash for the repayment of debt and
investments to right size the business.
The 4.75% 2021 Senior Notes became a current liability in June
of 2020. The Company expects to continue to address this
indebtedness through exploring with its advisors open-market
purchases, future tender offers, exchange offers of debt for debt,
cash or equity, or otherwise. The Company has successfully retired
$98.7 million of those senior notes
at a discount to par during the second quarter and an additional
$13.4 million subsequent to the
second quarter and through July 29,
2020.
Additionally the Company believes that improved profitability
and revenue growth through the Turnaround Plan, together with the
anticipated sale of its Orlando
real estate and other non-core assets in the coming year, will
contribute to its ability to meet future debt obligations. During
the second quarter ended June 27,
2020 the Company generated $101.8
million of cash flow from operating activities, net of
investing activities, through reductions in discretionary spending,
improvements in working capital including inventory reductions, and
reducing payroll costs, including through organizational redesign,
employee furloughs, and permanent reductions in employee
headcount.
Second Quarter Earnings Conference Call
Tupperware Brands will conduct a conference call today,
Wednesday, July 29, 2020, at 8:30 am
Eastern time. The conference call will be webcast and
accessible, along with a copy of this news release, on
ir.tupperwarebrands.com.
About Tupperware Brands Corporation
Tupperware Brands Corporation (NYSE: TUP) is a leading global
consumer products company that designs innovative, functional and
environmentally responsible products that people love and trust.
Founded in 1946, Tupperware's signature container created the
modern food storage category that revolutionized the way the world
stores, serves and prepares food. Today, this iconic brand has more
than 8,500 functional design and utility patents for
solution-oriented kitchen and home products. With a purpose to
nurture a better future, Tupperware products are
an alternative to single-use items. The Company
primarily distributes its products into nearly 80 countries through
independent representatives around the world. For more information,
visit Tupperwarebrands.com or follow Tupperware on Twitter,
Facebook, Instagram and LinkedIn.
Forward-Looking Statements
Statements contained in this release that are not historical
fact and use predictive words such as "estimates", "outlook",
"guidance", "expect", "believe", "intend", "designed", "target",
"plans", "may", "will", "we are confident" 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 effects of the outbreak of the novel coronavirus (COVID-19)
pandemic; the success of the Company's efforts to improve its
profitability and liquidity position and any capital structure
actions that it may take, including the Company's ability to repay
or refinance its Senior Notes; the potential impact of management's
determination that the Company may not be able to continue to
operate as a going concern; the success and timing of growth and
turnaround initiatives; leadership development and succession
changes; 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 U.S. Tax Cuts and Jobs Act of 2017; the Company's future
tax-planning initiatives; any prospective or retrospective
increases in duties on the Company's products; 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 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; 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; 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.
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 by providing what the Company believes is a useful
measure for predictive purposes. 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 that exclude:
- gains from the sale of property, plant and equipment and other
real estate related operations
- insurance settlement gains or significant charges related to
casualty losses caused by significant weather events, fires or
similar circumstances
- exit or disposal cost obligations related to rationalizing
supply chain operations and other re-engineering activities
performed to wind-down or significantly restructure businesses,
including cumulative translation adjustments recognized in income
upon liquidation of operations in a country, asset sales or fixed
asset impairments, inventory obsolescence and other operating
losses incurred in conjunction with such activities
- certain asset retirement obligations
- pension settlements
- significant discrete impacts of new tax laws upon adoption,
including the impact on cumulative deferred taxes from items
previously recorded as cumulative translation adjustments
- amortization of definite-lived intangible assets
- non-cash impairment charges related to the carrying value of
acquired intangible assets and goodwill
- infrequent costs incurred in connection with a change in
capital structure
- the impact from hyper-inflationary economies on net monetary
assets and other balance sheet positions that impact near term
income
- non-recurring costs associated with the Turnaround Plan
While these types of events can and do recur periodically, they
are not part of the Company's primary business operations and 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, as
amounts recognized in any given period are not indicative of
amounts that may be recognized in any particular future period.
Additionally, the Company engages in B2B 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 excludes
amounts sold under B2B transactions. This illustrates sales results
and trends directly associated with activities of its independent
sales force. All financial information disclosed and presented
includes B2B transactions unless specifically stated as "core"
sales or otherwise indicated.
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 and generally refers to such
amounts 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.
Information included with this release includes references 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
2020 SALES FORCE STATISTICS*
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
All
Units
|
Reported Inc/(Dec) vs. Q2
'19 %
|
Restated1
Inc/(Dec) vs. Q2
'19 %
|
|
Active Sales Force
|
Inc/(Dec) vs. Q2
'19 %
|
|
Total
Sales Force
|
Inc/(Dec) vs. Q2
'19 %
|
Europe
|
(25)
|
(20)
|
|
76,284
|
|
(23)
|
|
607,322
|
|
(21)
|
Asia
Pacific
|
(14)
|
(11)
|
|
91,264
|
|
(36)
|
|
872,093
|
|
(5)
|
North
America
|
(1)
|
10
|
|
180,632
|
|
(9)
|
|
692,123
|
|
(12)
|
South
America
|
(34)
|
(12)
|
|
119,168
|
|
(3)
|
|
527,110
|
|
(11)
|
Total All
Units
|
(16)
|
(8)
|
|
467,348
|
|
(17)
|
|
2,698,648
|
|
(12)
|
|
*Sales force
statistics as collected by the Company and, in some cases, provided
by distributors and sales force. 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.
|
|
1Local
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.
|
TUPPERWARE
BRANDS CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
(In millions,
except per share data)
|
13 weeks
ended
|
|
26 weeks
ended
|
|
Jun
27, 2020
|
|
Jun
29, 2019
|
|
Jun
27, 2020
|
|
Jun
29, 2019
|
Net sales
|
$
|
397.4
|
|
|
$
|
475.3
|
|
|
$
|
773.3
|
|
|
$
|
962.6
|
|
Cost of products
sold
|
133.5
|
|
|
154.6
|
|
|
263.2
|
|
|
315.8
|
|
Gross
margin
|
263.9
|
|
|
320.7
|
|
|
510.1
|
|
|
646.8
|
|
|
|
|
|
|
|
|
|
Delivery, sales and
administrative expense
|
208.1
|
|
|
247.7
|
|
|
451.0
|
|
|
510.4
|
|
Re-engineering
charges
|
23.2
|
|
|
4.1
|
|
|
27.1
|
|
|
8.4
|
|
Gain (loss) on
disposal of assets
|
13.9
|
|
|
(0.1)
|
|
|
13.8
|
|
|
(1.0)
|
|
Operating income
(loss)
|
46.5
|
|
|
68.8
|
|
|
45.8
|
|
|
127.0
|
|
|
|
|
|
|
|
|
|
Interest
income
|
0.2
|
|
|
0.4
|
|
|
0.7
|
|
|
1.0
|
|
Interest
expense
|
12.1
|
|
|
10.8
|
|
|
22.3
|
|
|
21.0
|
|
Other expense
(income), net
|
(48.0)
|
|
|
(3.4)
|
|
|
(50.1)
|
|
|
(6.7)
|
|
Income (loss) before
income taxes
|
82.6
|
|
|
61.8
|
|
|
74.3
|
|
|
113.7
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
18.8
|
|
|
22.4
|
|
|
18.3
|
|
|
37.4
|
|
Net income
(loss)
|
$
|
63.8
|
|
|
$
|
39.4
|
|
|
$
|
56.0
|
|
|
$
|
76.3
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
1.30
|
|
|
$
|
0.81
|
|
|
$
|
1.14
|
|
|
$
|
1.57
|
|
Diluted
|
$
|
1.30
|
|
|
$
|
0.81
|
|
|
$
|
1.14
|
|
|
$
|
1.56
|
|
TUPPERWARE
BRANDS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share data)
|
13 weeks
ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
26 weeks
ended
|
|
Reported
|
|
Restated*
|
|
Foreign
|
|
Jun
27, 2020
|
|
Jun
29, 2019
|
|
%
Inc
(Dec)
|
|
%
Inc
(Dec)
|
|
Exchange
Impact*
|
|
Jun
27, 2020
|
|
Jun
29, 2019
|
|
%
Inc
(Dec)
|
|
%
Inc
(Dec)
|
|
Exchange
Impact*
|
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
90.8
|
|
|
$
|
121.5
|
|
|
(25)
|
|
(20)
|
|
$
|
(7.7)
|
|
|
$
|
196.5
|
|
|
$
|
260.1
|
|
|
(24)
|
|
(20)
|
|
$
|
(15.1)
|
|
Asia
Pacific
|
134.4
|
|
|
155.5
|
|
|
(14)
|
|
(11)
|
|
(4.6)
|
|
|
254.8
|
|
|
311.6
|
|
|
(18)
|
|
(16)
|
|
(10.0)
|
|
North
America
|
124.0
|
|
|
124.7
|
|
|
(1)
|
|
10
|
|
(12.5)
|
|
|
225.3
|
|
|
244.3
|
|
|
(8)
|
|
—
|
|
(19.0)
|
|
South
America
|
48.2
|
|
|
73.6
|
|
|
(34)
|
|
(12)
|
|
(19.0)
|
|
|
96.7
|
|
|
146.6
|
|
|
(34)
|
|
(16)
|
|
(31.9)
|
|
Total net
sales
|
$
|
397.4
|
|
|
$
|
475.3
|
|
|
(16)
|
|
(8)
|
|
$
|
(43.8)
|
|
|
$
|
773.3
|
|
|
$
|
962.6
|
|
|
(20)
|
|
(13)
|
|
$
|
(76.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
10.9
|
|
|
$
|
12.8
|
|
|
(15)
|
|
(4)
|
|
$
|
(1.4)
|
|
|
$
|
13.4
|
|
|
$
|
30.5
|
|
|
(56)
|
|
(52)
|
|
$
|
(2.4)
|
|
Asia
Pacific
|
34.4
|
|
|
37.2
|
|
|
(8)
|
|
(4)
|
|
(1.4)
|
|
|
51.7
|
|
|
67.2
|
|
|
(23)
|
|
(20)
|
|
(2.5)
|
|
North
America
|
18.7
|
|
|
20.4
|
|
|
(8)
|
|
8
|
|
(3.0)
|
|
|
25.2
|
|
|
37.8
|
|
|
(33)
|
|
(23)
|
|
(5.0)
|
|
South
America
|
11.3
|
|
|
13.1
|
|
|
(13)
|
|
20
|
|
(3.6)
|
|
|
14.3
|
|
|
22.0
|
|
|
(35)
|
|
(15)
|
|
(5.2)
|
|
Total segment
profit
|
75.3
|
|
|
83.5
|
|
|
(10)
|
|
2
|
|
(9.4)
|
|
|
104.6
|
|
|
157.5
|
|
|
(34)
|
|
(27)
|
|
(15.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
28.5
|
|
|
(7.1)
|
|
|
—
|
|
—
|
|
(0.7)
|
|
|
4.6
|
|
|
(14.4)
|
|
|
—
|
|
—
|
|
(1.3)
|
|
Gain (loss) on
disposal of assets
|
13.9
|
|
|
(0.1)
|
|
|
—
|
|
—
|
|
—
|
|
|
13.8
|
|
|
(1.0)
|
|
|
—
|
|
—
|
|
—
|
|
Re-engineering
charges
|
(23.2)
|
|
|
(4.1)
|
|
|
+
|
|
+
|
|
—
|
|
|
(27.1)
|
|
|
(8.4)
|
|
|
+
|
|
+
|
|
—
|
|
Interest
expense
|
(11.9)
|
|
|
(10.4)
|
|
|
14
|
|
14
|
|
—
|
|
|
(21.6)
|
|
|
(20.0)
|
|
|
8
|
|
8
|
|
—
|
|
Income (loss) before
taxes
|
82.6
|
|
|
61.8
|
|
|
34
|
|
60
|
|
(10.1)
|
|
|
74.3
|
|
|
113.7
|
|
|
(35)
|
|
(24)
|
|
(16.4)
|
|
Provision (benefit)
for income taxes
|
18.8
|
|
|
22.4
|
|
|
(16)
|
|
(3)
|
|
(3.0)
|
|
|
18.3
|
|
|
37.4
|
|
|
(51)
|
|
(44)
|
|
(4.6)
|
|
Net income
(loss)
|
$
|
63.8
|
|
|
$
|
39.4
|
|
|
62
|
|
98
|
|
$
|
(7.1)
|
|
|
$
|
56.0
|
|
|
$
|
76.3
|
|
|
(27)
|
|
(13)
|
|
$
|
(11.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(diluted)
|
$
|
1.30
|
|
|
$
|
0.81
|
|
|
60
|
|
97
|
|
$
|
(0.15)
|
|
|
$
|
1.14
|
|
|
$
|
1.56
|
|
|
(27)
|
|
(14)
|
|
$
|
(0.24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
49.2
|
|
|
48.8
|
|
|
|
|
|
|
|
|
49.2
|
|
|
48.8
|
|
|
|
|
|
|
|
|
* 2020 actual
compared with 2019 translated at 2020 exchange rates
|
|
+ Change greater than
±100%
|
TUPPERWARE BRANDS
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(UNAUDITED)
|
|
|
|
|
(In
millions, except per share data)
|
13 weeks ended Jun
27, 2020
|
|
13 weeks ended Jun
29, 2019
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Foreign
Exchange
Impact
|
|
Adj's
|
|
Restated* Excl Adj's
|
Segment
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
10.9
|
|
|
$
|
—
|
|
|
$
|
10.9
|
|
|
$
|
12.8
|
|
|
$
|
(1.4)
|
|
|
$
|
(0.1)
|
|
f
|
$
|
11.3
|
|
Asia
Pacific
|
34.4
|
|
|
—
|
|
|
34.4
|
|
|
37.2
|
|
|
(1.4)
|
|
|
0.4
|
|
a
|
36.2
|
|
North
America
|
18.7
|
|
|
0.6
|
|
a ,b
|
19.3
|
|
|
20.4
|
|
|
(3.0)
|
|
|
1.3
|
|
a
|
18.7
|
|
South
America
|
11.3
|
|
|
0.3
|
|
c
|
11.6
|
|
|
13.1
|
|
|
(3.6)
|
|
|
0.1
|
|
a,c
|
9.6
|
|
Total Segment
profit
|
75.3
|
|
|
0.9
|
|
|
76.2
|
|
|
83.5
|
|
|
(9.4)
|
|
|
1.7
|
|
|
75.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
28.5
|
|
|
(34.5)
|
|
b.g,h
|
(6.0)
|
|
|
(7.1)
|
|
|
(0.7)
|
|
|
0.1
|
|
b
|
(7.7)
|
|
Gain (loss) on
disposal of assets
|
13.9
|
|
|
(13.9)
|
|
d
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
0.1
|
|
d
|
—
|
|
Re-engineering
charges
|
(23.2)
|
|
|
23.2
|
|
e
|
—
|
|
|
(4.1)
|
|
|
—
|
|
|
4.1
|
|
e
|
—
|
|
Interest
expense
|
(11.9)
|
|
|
—
|
|
|
(11.9)
|
|
|
(10.4)
|
|
|
—
|
|
|
—
|
|
|
(10.4)
|
|
Income (loss) before
taxes
|
82.6
|
|
|
(24.3)
|
|
|
58.3
|
|
|
61.8
|
|
|
(10.1)
|
|
|
6.0
|
|
|
57.7
|
|
Provision (benefit)
for income taxes
|
18.8
|
|
|
(2.0)
|
|
i
|
16.8
|
|
|
22.4
|
|
|
(3.0)
|
|
|
(2.3)
|
|
i
|
17.1
|
|
Net income
(loss)
|
$
|
63.8
|
|
|
$
|
(22.3)
|
|
|
$
|
41.5
|
|
|
$
|
39.4
|
|
|
$
|
(7.1)
|
|
|
$
|
8.3
|
|
|
$
|
40.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(diluted)
|
$
|
1.30
|
|
|
$
|
(0.46)
|
|
|
$
|
0.84
|
|
|
$
|
0.81
|
|
|
$
|
(0.15)
|
|
|
$
|
0.17
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26 weeks ended Jun
27, 2020
|
|
26 weeks ended Jun
29, 2019
|
|
Reported
|
|
Adj's
|
|
Excl
Adj's
|
|
Reported
|
|
Foreign
Exchange
Impact
|
|
Adj's
|
|
Restated* Excl Adj's
|
Segment
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
|
13.4
|
|
|
$
|
—
|
|
|
$
|
13.4
|
|
|
$
|
30.5
|
|
|
$
|
(2.4)
|
|
|
$
|
0.1
|
|
b,f
|
$
|
28.2
|
|
Asia
Pacific
|
51.7
|
|
|
—
|
|
|
51.7
|
|
|
67.2
|
|
|
(2.5)
|
|
|
0.8
|
|
a
|
65.5
|
|
North
America
|
25.2
|
|
|
1.0
|
|
a ,b
|
26.2
|
|
|
37.8
|
|
|
(5.0)
|
|
|
2.7
|
|
a
|
35.5
|
|
South
America
|
14.3
|
|
|
0.1
|
|
c
|
14.4
|
|
|
22.0
|
|
|
(5.2)
|
|
|
0.5
|
|
a,c
|
17.3
|
|
Total Segment
profit
|
104.6
|
|
|
1.1
|
|
|
105.7
|
|
|
157.5
|
|
|
(15.1)
|
|
|
4.1
|
|
|
146.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
expenses
|
4.6
|
|
|
(24.9)
|
|
b.g,h
|
(20.3)
|
|
|
(14.4)
|
|
|
(1.3)
|
|
|
0.1
|
|
b
|
(15.6)
|
|
Gain (loss) on
disposal of assets
|
13.8
|
|
|
(13.8)
|
|
d
|
—
|
|
|
(1.0)
|
|
|
—
|
|
|
1.0
|
|
d
|
—
|
|
Re-engineering
charges
|
(27.1)
|
|
|
27.1
|
|
e
|
—
|
|
|
(8.4)
|
|
|
—
|
|
|
8.4
|
|
e
|
—
|
|
Interest
expense
|
(21.6)
|
|
|
—
|
|
|
(21.6)
|
|
|
(20.0)
|
|
|
—
|
|
|
—
|
|
|
(20.0)
|
|
Income before
taxes
|
74.3
|
|
|
(10.5)
|
|
|
63.8
|
|
|
113.7
|
|
|
(16.4)
|
|
|
13.6
|
|
|
110.9
|
|
Provision (benefit)
for income taxes
|
18.3
|
|
|
(0.5)
|
|
i
|
17.8
|
|
|
37.4
|
|
|
(4.6)
|
|
|
(1.7)
|
|
i
|
31.1
|
|
Net income
(loss)
|
$
|
56.0
|
|
|
$
|
(10.0)
|
|
|
$
|
46.0
|
|
|
$
|
76.3
|
|
|
$
|
(11.8)
|
|
|
$
|
15.3
|
|
|
$
|
79.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(diluted)
|
$
|
1.14
|
|
|
$
|
(0.20)
|
|
|
$
|
0.94
|
|
|
$
|
1.56
|
|
|
$
|
(0.24)
|
|
|
$
|
0.32
|
|
|
$
|
1.64
|
|
|
* 2020 actual
compared with 2019 translated at 2020 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 hyper-inflationary, the Company had negative
impacts of $0.1 million and $0.4 million in the first half of 2020
and 2019, 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 Gain on disposal of assets in 2020
mainly relate to the sale of land in Australia. In 2019
mainly relate to the write-off of assets in Tupperware France and
in Tupperware Brazil.
|
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.
|
f Write-off of inventory and bad debt
associated with changes in business model.
|
g Consultant fees and CEO transition
costs.
|
h Gain on debt
extinguishing.
|
i 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 BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
Jun
27, 2020
|
|
Dec
28, 2019
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
120.0
|
|
|
$
|
123.2
|
|
Other current
assets
|
393.6
|
|
|
415.3
|
|
Total current
assets
|
513.6
|
|
|
538.5
|
|
|
|
|
|
Property, plant and
equipment, net
|
242.1
|
|
|
267.5
|
|
Other
assets
|
438.6
|
|
|
456.4
|
|
Total
assets
|
$
|
1,194.3
|
|
|
$
|
1,262.4
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Short-term borrowings
and current portion of long-term debt and finance lease
obligations
|
$
|
801.5
|
|
|
$
|
273.2
|
|
Accounts payable and
other current liabilities
|
442.9
|
|
|
415.7
|
|
Total current
liabilities
|
1,244.4
|
|
|
688.9
|
|
|
|
|
|
Long-term debt and
finance lease obligations
|
2.1
|
|
|
602.2
|
|
Other
liabilities
|
230.1
|
|
|
248.3
|
|
Total shareholders'
equity (deficit)
|
(282.3)
|
|
|
(277.0)
|
|
Total liabilities and
shareholders' equity
|
$
|
1,194.3
|
|
|
$
|
1,262.4
|
|
TUPPERWARE BRANDS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
(In
millions)
|
26 weeks
ended
|
|
June
27, 2020
|
|
June
29, 2019
|
Operating
Activities
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
|
45.3
|
|
|
$
|
1.3
|
|
|
|
|
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(14.1)
|
|
|
(27.2)
|
|
Proceeds from
disposal of property, plant & equipment
|
15.9
|
|
|
4.7
|
|
Net cash provided by
(used in) investing activities
|
1.8
|
|
|
(22.5)
|
|
|
|
|
|
Financing
Activities
|
|
|
|
Common stock cash
dividends paid
|
—
|
|
|
(47.3)
|
|
Common stock
repurchase
|
—
|
|
|
(0.8)
|
|
Senior notes
repayment
|
(56.4)
|
|
|
—
|
|
Finance lease
repayments
|
(0.3)
|
|
|
(1.0)
|
|
Net increase in
short-term debt
|
17.8
|
|
|
85.2
|
|
Debt issuance
costs
|
(2.0)
|
|
|
(2.2)
|
|
Net cash provided by
(used in) financing activities
|
(40.9)
|
|
|
33.9
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(8.6)
|
|
|
2.0
|
|
Net change in cash,
cash equivalents and restricted cash
|
(2.4)
|
|
|
14.7
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
126.1
|
|
|
151.9
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
123.7
|
|
|
$
|
166.6
|
|
TUPPERWARE BRANDS
CORPORATION
|
ADJUSTED EBITDA
AND DEBT/ADJUSTED EBITDA*
|
(UNAUDITED)
|
|
|
|
As of and for the
four
quarters ended
|
|
June
27, 2020
|
Adjusted
EBITDA:
|
|
Net income
(loss)
|
$
|
(7.9)
|
|
Add:
|
|
Depreciation and
amortization
|
50.0
|
|
Gross interest
expense
|
42.8
|
|
Provision for income
taxes
|
71.9
|
|
Stock based
compensation
|
9.8
|
|
Pre-tax re-engineering
and impairment charges
|
40.0
|
|
Other non-cash
extraordinary, unusual or non-recurring charges
|
38.6
|
|
Deduct:
|
|
Cash paid for
re-engineering charges
|
(53.7)
|
|
Gain on land sales,
insurance recoveries, etc.
|
(27.7)
|
|
Total Adjusted
EBITDA
|
$
|
163.8
|
|
|
|
Consolidated total
debt
|
$
|
803.6
|
|
Divided by adjusted
EBITDA
|
163.8
|
|
Debt to Adjusted
EBITDA Ratio
|
4.91
|
|
|
* 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