Molson Coors Reports 2020 Fourth Quarter and Full Year Results and Reinstates Guidance for 2021
Fourth Quarter Highlights:
-
Fourth Quarter Net Sales Revenue decreased 7.7% reported and 8.3% in constant currency, primarily driven by
Europe andCanada declines resulting from restrictions in the on-premise channel as a result of the coronavirus pandemic.
-
Fourth Quarter Net Sales Revenue in the
U.S. , the Company's largest market, increased 1.9%, on a brand volume basis, partially offsetting theEurope andCanada results.
-
Fourth Quarter
U.S. GAAP Net Loss of$1.4 billion ($6.32 per share) primarily driven by$1.5 billion Europe goodwill impairment charge. Fourth Quarter Non-GAAP EPS of$0.40 decreased 60.8%.
-
Fourth Quarter Underlying (Non-GAAP) EBITDA of
$375 million decreased 33.6% in constant currency.
Full Year Highlights:
-
Full Year
U.S. GAAP Net Loss of$949 million ($4.38 per share) primarily driven by$1.5 billion Europe goodwill impairment charge.
-
Full Year Underlying (Non-GAAP) EBITDA of
$2.1 billion decreased 10.0% in constant currency.
-
Full Year Operating Cash Flow of
$1.7 billion , and Underlying (Non-GAAP) Free Cash Flow of nearly$1.3 billion .
-
Full Year reduction in net debt of
$1.1 billion sinceDecember 31, 2019 .
Outlook Highlights:
-
Molson Coors is reinstating financial guidance for 2021, including current expectation that our board of directors will be in a position to reinstate a dividend in the second half of 2021.
- Strong progress against our revitalization plan, which aims to drive long-term revenue and underlying EBITDA growth.
Hattersley further explained that the company was able to accomplish all of this even with the challenges presented by the coronavirus pandemic, particularly in
Consolidated Performance - Fourth Quarter and Full Year 2020 |
||||||||||||||||||
Three Months Ended |
||||||||||||||||||
($ in millions, except per share data) (Unaudited) |
|
|
|
|
Reported Increase (Decrease) |
|
Foreign Exchange Impact |
|
Constant Currency Increase (Decrease)(2) |
|||||||||
|
$ |
2,294.3 |
|
|
|
$ |
2,486.2 |
|
|
(7.7 |
)% |
|
$ |
14.2 |
|
|
(8.3 |
)% |
|
$ |
(1,369.8 |
) |
|
|
$ |
163.7 |
|
|
N/M |
|
|
|
|
|
|||
Per diluted share |
$ |
(6.32 |
) |
|
|
$ |
0.75 |
|
|
N/M |
|
|
|
|
|
|||
Underlying Net income (loss)(2) |
$ |
86.6 |
|
|
|
$ |
221.5 |
|
|
(60.9 |
)% |
|
|
|
|
|||
Per diluted share |
$ |
0.40 |
|
|
|
$ |
1.02 |
|
|
(60.8 |
)% |
|
|
|
|
|||
Underlying EBITDA(2) |
$ |
375.1 |
|
|
|
$ |
563.1 |
|
|
(33.4 |
)% |
|
$ |
1.2 |
|
|
(33.6 |
)% |
|
Twelve Months Ended |
||||||||||||||||||
($ in millions, except per share data) (Unaudited) |
|
|
|
|
Reported Increase (Decrease) |
|
Foreign Exchange Impact |
|
Constant Currency Increase (Decrease)(2) |
||||||||||
|
$ |
9,654.0 |
|
|
|
$ |
10,579.4 |
|
|
(8.7 |
)% |
|
$ |
(4.2 |
) |
|
|
(8.7 |
)% |
|
$ |
(949.0 |
) |
|
|
$ |
241.7 |
|
|
N/M |
|
|
|
|
|
||||
Per diluted share |
$ |
(4.38 |
) |
|
|
$ |
1.11 |
|
|
N/M |
|
|
|
|
|
||||
Underlying Net income (loss)(2) |
$ |
851.7 |
|
|
|
$ |
985.0 |
|
|
(13.5 |
)% |
|
|
|
|
||||
Per diluted share |
$ |
3.92 |
|
|
|
$ |
4.54 |
|
|
(13.7 |
)% |
|
|
|
|
||||
Underlying EBITDA(2) |
$ |
2,132.1 |
|
|
|
$ |
2,364.0 |
|
|
(9.8 |
)% |
|
$ |
5.1 |
|
|
|
(10.0 |
)% |
N/M = Not meaningful
(1) |
Net income (loss) attributable to MCBC. |
(2) |
Represents net income (loss) and EBITDA adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. |
|
Three Months Ended |
||||||||||||||||
|
Reported |
|
|
||||||||||||||
Percent change |
Financial Volume |
|
Price, Product and Geography Mix |
|
Currency |
|
|
|
|
|
Brand Volume |
||||||
Consolidated |
(9.6 |
)% |
|
1.3 |
% |
|
0.6 |
% |
|
(7.7 |
)% |
|
3.7 |
% |
|
(11.3 |
)% |
|
(3.9 |
)% |
|
2.9 |
% |
|
0.2 |
% |
|
(0.8 |
)% |
|
3.1 |
% |
|
(6.9 |
)% |
|
(26.4 |
)% |
|
(13.0 |
)% |
|
2.2 |
% |
|
(37.2 |
)% |
|
(8.2 |
)% |
|
(23.4 |
)% |
|
Twelve Months Ended |
||||||||||||||||
|
Reported |
|
|
||||||||||||||
Percent change |
Financial Volume |
|
Price, Product and Geography Mix |
|
Currency |
|
|
|
|
|
Brand Volume |
||||||
Consolidated |
(8.9 |
)% |
|
0.1 |
% |
|
0.1 |
% |
|
(8.7 |
)% |
|
1.1 |
% |
|
(7.8 |
)% |
|
(6.0 |
)% |
|
1.7 |
% |
|
(0.1 |
)% |
|
(4.4 |
)% |
|
1.6 |
% |
|
(5.1 |
)% |
|
(17.3 |
)% |
|
(11.1 |
)% |
|
0.5 |
% |
|
(27.9 |
)% |
|
(8.1 |
)% |
|
(14.8 |
)% |
(1) |
Our net sales per hectoliter performance discussions are reflected on a brand volume ("BV") basis, reflecting owned and actively managed brand volume, along with royalty volume, in the denominator, as well as the financial impact of these sales (in constant currency) in the numerator, unless otherwise indicated. |
Quarterly Highlights (versus Fourth Quarter 2019 Results) |
-
Revenue: Net sales decreased 7.7% on a reported basis, and 8.3% in constant currency driven by financial volume declines, particularly including a 26.4% decrease of financial volumes in
Europe primarily related to further on-premise restrictions in theU.K. , as well as unfavorable channel mix. This was partially offset by higher net pricing inNorth America andEurope as well as positive brand and package mix in theU.S. , which resulted in a 1.9% increase inU.S. net sales revenue on a brand volume basis.North America shipment trends improved in the fourth quarter as we continued to build distributor inventory levels but remained impacted by aluminum can supply constraints.
- Cost of goods sold (COGS) per hectoliter: increased 1.8%on a reported basis primarily driven by cost inflation, volume deleverage and higher transportation costs, partially offset by changes to our unrealized mark-to-market commodity positions and cost savings. Underlying COGS per hectoliter: increased 6.4% in constant currency primarily driven by cost inflation, volume deleverage and higher transportation costs, partially offset by cost savings.
- Marketing, general & administrative (MG&A): increased 5.8%on a reported basis. Underlying MG&A: increased 5.8% in constant currency as a result of cycling lower incentive compensation and a non-recurring vendor benefit in the prior year as well as higher marketing investment to support core brands and new innovations, partially offset by lower marketing spend related to sporting events, including the impacts of the delayed start of the NHL season into 2021.
-
U.S. GAAP pretax loss:$1,337.3 million loss compared to income of$206.6 million in the prior year driven by higher special charges of approximately$1.5 billion primarily due to a$1.5 billion goodwill impairment charge recognized in ourEurope segment in the fourth quarter of 2020, as further discussed below, as well as lower financial volume and higher MG&A costs, partially offset by an approximate$72 million year-over-year favorable variance resulting from unrealized mark-to-market changes on our commodity positions.
-
Underlying EBITDA: decreased 33.6% in constant currency, driven by lower financial volume, primarily in
Europe , increased underlying COGS per hectoliter and higher MG&A costs, as described above, partially offset by higher pricing inNorth America andEurope .
Quarterly Segment Highlights (versus Fourth Quarter 2019 Results) |
North America Business
-
Revenue: Net sales on a reported basis, decreased 0.8% and 1.0% in constant currency due to financial volume declines of 3.9%, reflecting lower brand volume, partially offset by improved year-over-year shipment trends in the
U.S. reducing a year-to-date under-shipment position attributed to aluminum can supply constraints.North America brand volumes decreased 6.9% due to on-premise restrictions as well as aluminum can supply constraints contributing to declines in the economy and premium segments. In theU.S. , brand volumes decreased 6.2% compared to domestic shipment declines of 2.3% as we continued to build distributor inventories in the fourth quarter.Canada andLatin America brand volumes declined 13.2% and 6.8%, respectively, in the quarter primarily due to on-premise closures.
Net sales per hectoliter on a brand volume basis increased 3.1% in constant currency driven by net pricing increases in theU.S. andCanada as well as favorable brand and package mix in theU.S. , partially offset by negative channel and brand mix inCanada attributed to the shift of volume from on-premise to off-premise. In theU.S. , net sales per hectoliter on a brand volume basis increased 4.2% driven by positive mix aided by new brands Vizzy, Blue Moon LightSky andCoors Seltzer and net pricing increases which more than offset financial volume declines and resulted in a 1.9% increase in net sales revenue on a brand volume basis. InCanada , negative mix more than offset the net pricing increases, whileLatin America net sales per hectoliter on a brand volume basis was largely consistent with prior year.
-
U.S. GAAP pretax income: decreased 19.3% on a reported basis due to lower financial volume, inflation and higher transportation costs within COGS as well as higher MG&A expense, partially offset by net pricing increases in theU.S. andCanada , lower special charges and favorable brand and package mix in theU.S. The higher MG&A expense was driven by increased marketing investment on innovation brands, Coors Light and Miller Lite, as well as cycling lower incentive compensation and a non-recurring vendor benefit in the prior year. This was partially offset by lower marketing spend in areas impacted by the coronavirus pandemic, such as sports and live entertainment events, including the impacts of the delayed start of the NHL season into 2021, and other cost mitigating actions, as well as cost savings related to the revitalization plan.
-
Underlying EBITDA: decreased 17.7% in constant currency due to the same factors as
U.S. GAAP pretax income results with the exception of the lower special charges.
Europe Business
-
Revenue: Net sales on a reported basis, decreased 37.2% and 39.4% in constant currency due to lower volumes and lower net sales per hectoliter as a result of the impacts of the coronavirus pandemic. Net sales per hectoliter on a brand volume basis declined 8.2% driven by unfavorable geographic, channel and brand mix, particularly from our higher margin
U.K. business, which has a more significant exposure to the on-premise channel which, after re-opening with restrictions in the third quarter of 2020, was subject to further restrictions and closures in the fourth quarter of 2020, partially offset by positive pricing. Financial volume decreased 26.4% and brand volumes decreased 23.4%, driven by an approximate 40% decline in brand volumes in theU.K. related to further on-premise restrictions.
-
U.S. GAAP pretax loss: a reported loss of$1,556.8 million compared to income of$44.5 million in the prior year was due to higher special charges, driven by an approximate$1.5 billion goodwill impairment charge in the current year, and lower gross profit as a result of the impacts of the coronavirus pandemic. The goodwill impairment charge primarily resulted from the length and severity of the impacts of the coronavirus pandemic on ourEurope business, as well as the protracted recovery currently expected in certain on-premise markets.
-
Underlying EBITDA: loss of
$20.8 million compared to income of$85.7 million in the prior year driven by gross profit impacts of volume declines and unfavorable geographic and channel mix as a result of the coronavirus pandemic.
Full Year Highlights (versus 2019 Results) |
-
Revenue: Net sales decreased 8.7% on a reported and constant currency basis due to financial volume declines of 8.9% related to on-premise restrictions resulting from the coronavirus pandemic and the associated unfavorable channel mix, partially offset by higher net pricing in
North America andEurope as well as positive brand and package mix in theU.S. Overall,U.S. net sales revenue decreased 3.0% on a brand volume basis. The health of our core brands remains strong. The on-premise restrictions, particularly inEurope , andNorth America packaging material constraints contributed to lower brand and financial volumes.North America shipment trends improved in the second half of the year as we built distributor inventories but remained impacted by packaging material constraints.
-
Cost of goods sold (COGS) per hectoliter: increased 1.3%on a reported basis primarily driven by cost inflation, including higher transportation costs, volume deleverage and mix impacts from premiumization in
North America , partially offset by changes to our unrealized mark-to-market commodity positions and cost savings. Underlying COGS per hectoliter: increased 2.8% in constant currency due to the same factors described above, excluding changes to our unrealized mark-to-market commodity positions.
- Marketing, general & administrative (MG&A): decreased 10.7%on a reported basis. Underlying MG&A: decreased 9.9% in constant currency as a result of targeted action taken to adjust marketing spend in areas impacted by the coronavirus pandemic, particularly sports and live entertainment events, including the impacts of delayed and shortened seasons such as the delayed start of the NHL season into 2021, cost savings related to the revitalization plan and targeted cost mitigation actions. These reductions were partially offset by increased innovation spend and cycling lower incentive compensation and a non-recurring vendor benefit in the prior year.
-
U.S. GAAP pretax loss:$643.9 million loss compared to income of$479.9 million in the prior year was due to higher special charges of approximately$1.0 billion , lower financial volume, keg sales returns and other coronavirus-related costs, partially offset by an approximate$108 million year-over-year favorable variance resulting from unrealized mark-to-market changes on our commodity positions, as well as lower MG&A costs, as described above, and positive pricing inNorth America andEurope . Higher special charges are primarily due to the current year goodwill impairment charge recognized in ourEurope segment of approximately$1.5 billion compared to the prior year goodwill impairment charge in ourNorth America segment of$668.3 million , higher current year Irwindale brewery closure costs and the prior year gain on sale of theMontreal brewery.
-
Underlying EBITDA: decreased 10.0% in constant currency, driven by lower financial volume partially offset by lower MG&A costs, as described above, and positive pricing in
North America andEurope .
-
U.S. GAAP cash from operations: net cash provided by operating activitieswas$1,695.7 million for the full year 2020, which represents a decrease of$201.6 million from the prior year. This decrease was primarily driven by lower net income after adjusting for non-cash add-backs and higher cash paid for taxes, partially offset by favorable timing of working capital. Notably, working capital has benefited from the deferral of approximately$130 million in tax payments from various government-sponsored payment deferral programs initiated in response to the coronavirus pandemic, of which we currently anticipate the majority to be paid in 2021 as they become due.
-
Underlying free cash flow:
$1,266.3 million for the full year 2020, which represents a decrease of$103.5 million from the prior year, primarily due to lower underlying EBITDA and higher cash paid for taxes, partially offset by favorable timing of working capital, as discussed above.
-
Debt: Total debt at the end of 2020 was approximately
$8.2 billion , and cash and cash equivalents totaled$770.1 million , resulting in net debt of approximately$7.5 billion . This represents a reduction in net debt of approximately$1.1 billion sinceDecember 31, 2019 .
Segment Recast
Effective
Other Results |
|||||||||||
Effective Income Tax Rates |
|||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
|
|
|
|
|
|
||||
|
(2.7 |
)% |
|
19.6 |
% |
|
(46.9 |
)% |
|
48.7 |
% |
Underlying effective tax rate |
23.5 |
% |
|
22.5 |
% |
|
18.7 |
% |
|
21.7 |
% |
-
Our fourth quarter
U.S. GAAPeffective tax rate was (2.7)% compared to 19.6% a year ago, primarily driven by an approximate$1.5 billion goodwill impairment charge in ourEurope segment recognized in the fourth quarter of 2020, which related to nondeductible goodwill for income tax purposes. The change in our full yearU.S. GAAP effective tax rate was primarily driven by higher year-over year impairment charges related to nondeductible goodwill and further impacted by the tax expense recognized related to the hybrid regulations enacted in theU.S. in the second quarter of 2020.
- Our fourth quarter Underlyingeffective tax rate increased to 23.5% from 22.5% primarily driven by a larger portion of income earned in jurisdictions with higher statutory tax rates in the current year. The decrease in our full year underlying effective tax rate was primarily due to one-time benefits recognized in 2020 versus one-time tax expense recognized in 2019.
Special and Other Non-Core Items
The following special and other non-core items have been excluded from underlying results. See the Appendix for reconciliations of non-GAAP financial measures.
-
During the fourth quarter of 2020, we recognized net special charges of
$1,529.6 million , primarily driven by an approximate$1.5 billion goodwill impairment charge in ourEurope segment and$39.6 million of asset impairment charges in ourNorth America segment.
-
Additionally during the fourth quarter of 2020, we recorded other non-core net benefits of
$84.4 million primarily driven by changes in our unrealized mark-to-market positions on commodity hedges.
2021 Outlook |
While uncertainty remains regarding the coronavirus pandemic, including the timing and strength of the recovery, we currently expect the following for full year 2021, which we consider a year of investment:
- Net sales revenue: mid-single digit increase on a constant currency basis.
- Underlying EBITDA: approximately flat compared to 2020 on a constant currency basis.
- Deleverage: We intend to maintain our investment grade rating as demonstrated by our continued deleveraging. We expect to achieve a net debt to underlying EBITDA ratio of approximately 3.25x by the end of 2021 and below 3.0x by the end of 2022.
-
Underlying depreciation and amortization: approximately
$800 million .
-
Consolidated net interest expense: approximately
$270 million , plus or minus 5%.
- Underlying effective tax rate: in the range of 20% to 23% for 2021.
In addition, our current expectation is that our board of directors will be in a position to reinstate a dividend in the second half of 2021.
Notes |
Unless otherwise indicated in this release, all $ amounts are in
2020 Fourth Quarter Conference Call |
Overview of |
For more than two centuries
Our reporting segments include:
About |
Forward-Looking Statements |
This press release includes “forward-looking statements” within the meaning of the
Appendix |
|||||||||||||||||||
Statements of Operations - |
|||||||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(In millions, except per share data) (Unaudited) |
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
Financial volume in hectoliters |
19.676 |
|
|
|
21.766 |
|
|
|
84.479 |
|
|
|
92.722 |
|
|
||||
Sales |
$ |
2,777.8 |
|
|
|
$ |
3,091.0 |
|
|
|
$ |
11,723.8 |
|
|
|
$ |
13,009.1 |
|
|
Excise taxes |
(483.5 |
) |
|
|
(604.8 |
) |
|
|
(2,069.8 |
) |
|
|
(2,429.7 |
) |
|
||||
Net sales |
2,294.3 |
|
|
|
2,486.2 |
|
|
|
9,654.0 |
|
|
|
10,579.4 |
|
|
||||
Cost of goods sold |
(1,399.1 |
) |
|
|
(1,520.0 |
) |
|
|
(5,885.7 |
) |
|
|
(6,378.2 |
) |
|
||||
Gross profit |
895.2 |
|
|
|
966.2 |
|
|
|
3,768.3 |
|
|
|
4,201.2 |
|
|
||||
Marketing, general and administrative expenses |
(648.3 |
) |
|
|
(612.9 |
) |
|
|
(2,437.0 |
) |
|
|
(2,728.0 |
) |
|
||||
Special items, net |
(1,529.6 |
) |
|
|
(42.4 |
) |
|
|
(1,740.2 |
) |
|
|
(708.8 |
) |
|
||||
Operating income (loss) |
(1,282.7 |
) |
|
|
310.9 |
|
|
|
(408.9 |
) |
|
|
764.4 |
|
|
||||
Interest income (expense), net |
(64.8 |
) |
|
|
(68.2 |
) |
|
|
(271.3 |
) |
|
|
(272.7 |
) |
|
||||
Other pension and postretirement benefits (costs), net |
7.6 |
|
|
|
(22.1 |
) |
|
|
30.3 |
|
|
|
2.9 |
|
|
||||
Other income (expense), net |
2.6 |
|
|
|
(14.0 |
) |
|
|
6.0 |
|
|
|
(14.7 |
) |
|
||||
Income (loss) before income taxes |
(1,337.3 |
) |
|
|
206.6 |
|
|
|
(643.9 |
) |
|
|
479.9 |
|
|
||||
Income tax benefit (expense) |
(36.6 |
) |
|
|
(40.4 |
) |
|
|
(301.8 |
) |
|
|
(233.7 |
) |
|
||||
Net income (loss) |
(1,373.9 |
) |
|
|
166.2 |
|
|
|
(945.7 |
) |
|
|
246.2 |
|
|
||||
Net (income) loss attributable to noncontrolling interests |
4.1 |
|
|
|
(2.5 |
) |
|
|
(3.3 |
) |
|
|
(4.5 |
) |
|
||||
Net income (loss) attributable to MCBC |
$ |
(1,369.8 |
) |
|
|
$ |
163.7 |
|
|
|
$ |
(949.0 |
) |
|
|
$ |
241.7 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic net income (loss) attributable to MCBC per share: |
$ |
(6.32 |
) |
|
|
$ |
0.76 |
|
|
|
$ |
(4.38 |
) |
|
|
$ |
1.12 |
|
|
Diluted net income (loss) attributable to MCBC per share: |
$ |
(6.32 |
) |
|
|
$ |
0.75 |
|
|
|
$ |
(4.38 |
) |
|
|
$ |
1.11 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares - basic |
216.9 |
|
|
|
216.7 |
|
|
|
216.8 |
|
|
|
216.6 |
|
|
||||
Weighted average shares - diluted |
216.9 |
|
|
|
217.0 |
|
|
|
216.8 |
|
|
|
216.9 |
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Dividends per share |
$ |
— |
|
|
|
$ |
0.57 |
|
|
|
$ |
0.57 |
|
|
|
$ |
1.96 |
|
|
|
|
|
|
|
|
|
|
Balance Sheets - |
|||||||||
Condensed Consolidated Balance Sheets |
|||||||||
(In millions, except par value) (Unaudited) |
As of |
||||||||
|
|
|
|
||||||
Assets |
|
|
|
||||||
Current assets: |
|
|
|
||||||
Cash and cash equivalents |
$ |
770.1 |
|
|
|
$ |
523.4 |
|
|
Accounts and other receivables: |
|
|
|
||||||
Trade, less allowance for doubtful accounts of |
549.6 |
|
|
|
705.9 |
|
|
||
Affiliate receivables |
8.4 |
|
|
|
8.9 |
|
|
||
Other receivables, less allowance for doubtful accounts of |
129.1 |
|
|
|
105.5 |
|
|
||
Inventories, less allowance for obsolete inventories of |
664.3 |
|
|
|
615.9 |
|
|
||
Other current assets, net |
297.3 |
|
|
|
224.8 |
|
|
||
Total current assets |
2,418.8 |
|
|
|
2,184.4 |
|
|
||
Properties, less accumulated depreciation of |
4,250.3 |
|
|
|
4,546.5 |
|
|
||
|
6,151.0 |
|
|
|
7,631.4 |
|
|
||
Other intangibles, less accumulated amortization of |
13,556.1 |
|
|
|
13,656.0 |
|
|
||
Other assets |
954.9 |
|
|
|
841.5 |
|
|
||
Total assets |
$ |
27,331.1 |
|
|
|
$ |
28,859.8 |
|
|
Liabilities and equity |
|
|
|
||||||
Current liabilities: |
|
|
|
||||||
Accounts payable and other current liabilities (includes affiliate payables of |
$ |
2,889.5 |
|
|
|
$ |
2,767.3 |
|
|
Current portion of long-term debt and short-term borrowings |
1,020.1 |
|
|
|
928.2 |
|
|
||
Total current liabilities |
3,909.6 |
|
|
|
3,695.5 |
|
|
||
Long-term debt |
7,208.2 |
|
|
|
8,109.5 |
|
|
||
Pension and postretirement benefits |
763.2 |
|
|
|
716.6 |
|
|
||
Deferred tax liabilities |
2,381.6 |
|
|
|
2,258.6 |
|
|
||
Other liabilities |
447.2 |
|
|
|
406.5 |
|
|
||
Total liabilities |
14,709.8 |
|
|
|
15,186.7 |
|
|
||
|
|
|
|
||||||
Capital stock: |
|
|
|
||||||
Preferred stock, |
— |
|
|
|
— |
|
|
||
Class A common stock, |
— |
|
|
|
— |
|
|
||
Class B common stock, |
2.1 |
|
|
|
2.1 |
|
|
||
Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively) |
102.3 |
|
|
|
102.5 |
|
|
||
Class B exchangeable shares, no par value (issued and outstanding: 11.1 shares and 14.8 shares, respectively) |
417.8 |
|
|
|
557.8 |
|
|
||
Paid-in capital |
6,937.8 |
|
|
|
6,773.6 |
|
|
||
Retained earnings |
6,544.2 |
|
|
|
7,617.0 |
|
|
||
Accumulated other comprehensive income (loss) |
(1,167.8 |
) |
|
|
(1,162.2 |
) |
|
||
Class B common stock held in treasury at cost (9.5 shares and 9.5 shares, respectively) |
(471.4 |
) |
|
|
(471.4 |
) |
|
||
|
12,365.0 |
|
|
|
13,419.4 |
|
|
||
Noncontrolling interests |
256.3 |
|
|
|
253.7 |
|
|
||
Total equity |
12,621.3 |
|
|
|
13,673.1 |
|
|
||
Total liabilities and equity |
$ |
27,331.1 |
|
|
|
$ |
28,859.8 |
|
|
|
|
|
|
Cash Flow Statements - |
|||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||
(In millions) (Unaudited) |
Twelve Months Ended |
||||||||
|
|
|
|
||||||
Cash flows from operating activities: |
|
|
|
||||||
Net income (loss) including noncontrolling interests |
$ |
(945.7 |
) |
|
|
$ |
246.2 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||||
Depreciation and amortization |
922.0 |
|
|
|
859.0 |
|
|
||
Amortization of debt issuance costs and discounts |
8.1 |
|
|
|
13.6 |
|
|
||
Share-based compensation |
24.2 |
|
|
|
8.5 |
|
|
||
(Gain) loss on sale or impairment of properties and other assets, net |
1,553.5 |
|
|
|
614.7 |
|
|
||
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net |
(111.4 |
) |
|
|
18.9 |
|
|
||
Income tax (benefit) expense |
301.8 |
|
|
|
233.7 |
|
|
||
Income tax (paid) received |
(127.0 |
) |
|
|
(57.0 |
) |
|
||
Interest expense, excluding interest amortization |
266.0 |
|
|
|
272.4 |
|
|
||
Interest paid |
(271.9 |
) |
|
|
(285.0 |
) |
|
||
Change in current assets and liabilities and other |
76.1 |
|
|
|
(27.7 |
) |
|
||
Net cash provided by (used in) operating activities |
1,695.7 |
|
|
|
1,897.3 |
|
|
||
Cash flows from investing activities: |
|
|
|
||||||
Additions to properties |
(574.8 |
) |
|
|
(593.8 |
) |
|
||
Proceeds from sales of properties and other assets |
158.8 |
|
|
|
115.9 |
|
|
||
Other |
2.4 |
|
|
|
44.6 |
|
|
||
Net cash provided by (used in) investing activities |
(413.6 |
) |
|
|
(433.3 |
) |
|
||
Cash flows from financing activities: |
|
|
|
||||||
Exercise of stock options under equity compensation plans |
4.1 |
|
|
|
1.6 |
|
|
||
Dividends paid |
(125.3 |
) |
|
|
(424.4 |
) |
|
||
Payments on debt and borrowings |
(918.9 |
) |
|
|
(1,586.2 |
) |
|
||
Proceeds on debt and borrowings |
1.5 |
|
|
|
3.0 |
|
|
||
Net proceeds from (payments on) revolving credit facilities and commercial paper |
— |
|
|
|
(4.7 |
) |
|
||
Change in overdraft balances and other |
(31.8 |
) |
|
|
3.7 |
|
|
||
Net cash provided by (used in) financing activities |
(1,070.4 |
) |
|
|
(2,007.0 |
) |
|
||
Cash and cash equivalents: |
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents |
211.7 |
|
|
|
(543.0 |
) |
|
||
Effect of foreign exchange rate changes on cash and cash equivalents |
35.0 |
|
|
|
8.5 |
|
|
||
Balance at beginning of year |
523.4 |
|
|
|
1,057.9 |
|
|
||
Balance at end of period |
$ |
770.1 |
|
|
|
$ |
523.4 |
|
|
|
|
|
|
Summarized Segment Results (volume and $ in millions) (Unaudited) | ||||||||||||||||||||||||||||||||||||
|
Q4 2020 |
Q4 2019(1) |
Reported % Change |
FX Impact |
Constant Currency % Change |
YTD 2020 |
YTD 2019(1) |
Reported % Change |
FX Impact |
Constant Currency % Change |
||||||||||||||||||||||||||
Financial volume(2)(3) |
15.577 |
|
|
16.208 |
|
|
(3.9 |
) |
|
|
|
65.010 |
|
|
69.180 |
|
|
(6.0 |
) |
|
|
|
||||||||||||||
Net sales(3) |
$ |
1,994.8 |
|
|
$ |
2,010.7 |
|
|
(0.8 |
) |
|
$ |
3.5 |
|
|
(1.0 |
) |
|
$ |
8,237.0 |
|
|
$ |
8,618.2 |
|
|
(4.4 |
) |
|
$ |
(13.2 |
) |
|
(4.3 |
) |
|
COGS(3) |
(1,244.3 |
) |
|
(1,216.3 |
) |
|
2.3 |
|
|
|
|
(4,983.1 |
) |
|
(5,112.5 |
) |
|
(2.5 |
) |
|
|
|
||||||||||||||
MG&A |
(521.1 |
) |
|
(491.6 |
) |
|
6.0 |
|
|
|
|
(1,960.2 |
) |
|
(2,166.5 |
) |
|
(9.5 |
) |
|
|
|
||||||||||||||
Pretax income (loss) |
$ |
192.0 |
|
|
$ |
238.0 |
|
|
(19.3 |
) |
|
$ |
1.5 |
|
|
(20.0 |
) |
|
$ |
1,080.5 |
|
|
$ |
645.0 |
|
|
67.5 |
|
|
$ |
(0.3 |
) |
|
67.6 |
|
|
Underlying EBITDA |
$ |
388.3 |
|
|
$ |
469.0 |
|
|
(17.2 |
) |
|
$ |
2.1 |
|
|
(17.7 |
) |
|
$ |
1,970.3 |
|
|
$ |
2,009.4 |
|
|
(1.9 |
) |
|
$ |
(2.1 |
) |
|
(1.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
Q4 2020 |
Q4 2019(1) |
Reported % Change |
FX Impact |
Constant Currency % Change |
YTD 2020 |
YTD 2019(1) |
Reported % Change |
FX Impact |
Constant Currency % Change |
||||||||||||||||||||||||||
Financial volume(2)(3) |
4.117 |
|
|
5.594 |
|
|
(26.4 |
) |
|
|
|
19.560 |
|
|
23.660 |
|
|
(17.3 |
) |
|
|
|
||||||||||||||
Net sales(3) |
$ |
303.1 |
|
|
$ |
482.6 |
|
|
(37.2 |
) |
|
$ |
10.7 |
|
|
(39.4 |
) |
|
$ |
1,431.9 |
|
|
$ |
1,986.4 |
|
|
(27.9 |
) |
|
$ |
9.0 |
|
|
(28.4 |
) |
|
COGS(3) |
(241.3 |
) |
|
(322.0 |
) |
|
(25.1 |
) |
|
|
|
(1,025.1 |
) |
|
(1,290.1 |
) |
|
(20.5 |
) |
|
|
|
||||||||||||||
MG&A |
(127.2 |
) |
|
(121.3 |
) |
|
4.9 |
|
|
|
|
(476.8 |
) |
|
(561.5 |
) |
|
(15.1 |
) |
|
|
|
||||||||||||||
Pretax income (loss) |
$ |
(1,556.8 |
) |
|
$ |
44.5 |
|
|
N/M |
|
|
$ |
(78.3 |
) |
|
N/M |
|
|
$ |
(1,603.7 |
) |
|
$ |
102.4 |
|
|
N/M |
|
|
$ |
(74.3 |
) |
|
N/M |
|
|
Underlying EBITDA |
$ |
(20.8 |
) |
|
$ |
85.7 |
|
|
N/M |
|
|
$ |
(1.0 |
) |
|
N/M |
|
|
$ |
126.5 |
|
|
$ |
321.0 |
|
|
(60.6 |
) |
|
$ |
2.3 |
|
|
(61.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Unallocated & Eliminations |
Q4 2020 |
Q4 2019(1) |
Reported % Change |
FX Impact |
Constant Currency % Change |
YTD 2020 |
YTD 2019(1) |
Reported % Change |
FX Impact |
Constant Currency % Change |
||||||||||||||||||||||||||
Financial volume(2) |
(0.018 |
) |
|
(0.036 |
) |
|
(50.0 |
) |
|
|
|
(0.091 |
) |
|
(0.118 |
) |
|
(22.9 |
) |
|
|
|
||||||||||||||
|
$ |
(3.6 |
) |
|
$ |
(7.1 |
) |
|
(49.3 |
) |
|
|
|
$ |
(14.9 |
) |
|
$ |
(25.2 |
) |
|
(40.9 |
) |
|
|
|
||||||||||
COGS(3) |
86.5 |
|
|
18.3 |
|
|
N/M |
|
|
|
|
122.5 |
|
|
24.4 |
|
N/M |
|
|
|
|
|||||||||||||||
Pretax income (loss) |
$ |
27.5 |
|
|
$ |
(75.9 |
) |
|
N/M |
|
|
$ |
0.2 |
|
|
N/M |
|
|
$ |
(120.7 |
) |
|
$ |
(267.5 |
) |
|
(54.9 |
) |
|
$ |
5.8 |
|
|
(52.7 |
) |
|
Underlying EBITDA |
$ |
7.6 |
|
|
$ |
8.4 |
|
|
(9.5 |
) |
|
$ |
0.1 |
|
|
(10.7 |
) |
|
$ |
35.3 |
|
|
$ |
33.6 |
|
|
5.1 |
|
|
$ |
4.9 |
|
|
(9.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Consolidated |
Q4 2020 |
Q4 2019(1) |
Reported % Change |
FX Impact |
Constant Currency % Change |
YTD 2020 |
YTD 2019(1) |
Reported % Change |
FX Impact |
Constant Currency % Change |
||||||||||||||||||||||||||
Financial volume(2) |
19.676 |
|
|
21.766 |
|
|
(9.6 |
) |
|
|
|
84.479 |
|
|
92.722 |
|
|
(8.9 |
) |
|
|
|
||||||||||||||
Net sales |
$ |
2,294.3 |
|
|
$ |
2,486.2 |
|
|
(7.7 |
) |
|
$ |
14.2 |
|
|
(8.3 |
) |
|
$ |
9,654.0 |
|
|
$ |
10,579.4 |
|
|
(8.7 |
) |
|
$ |
(4.2 |
) |
|
(8.7 |
) |
|
COGS |
(1,399.1 |
) |
|
(1,520.0 |
) |
|
(8.0 |
) |
|
|
|
(5,885.7 |
) |
|
(6,378.2 |
) |
|
(7.7 |
) |
|
|
|
||||||||||||||
MG&A |
(648.3 |
) |
|
(612.9 |
) |
|
5.8 |
|
|
|
|
(2,437.0 |
) |
|
(2,728.0 |
) |
|
(10.7 |
) |
|
|
|
||||||||||||||
Pretax income (loss) |
$ |
(1,337.3 |
) |
|
$ |
206.6 |
|
|
N/M |
|
|
$ |
(76.6 |
) |
|
N/M |
|
|
$ |
(643.9 |
) |
|
$ |
479.9 |
|
|
N/M |
|
|
$ |
(68.8 |
) |
|
N/M |
|
|
Underlying EBITDA |
$ |
375.1 |
|
|
$ |
563.1 |
|
|
(33.4 |
) |
|
$ |
1.2 |
|
|
(33.6 |
) |
|
$ |
2,132.1 |
|
|
$ |
2,364.0 |
|
|
(9.8 |
) |
|
$ |
5.1 |
|
|
(10.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful
(1) |
Quarterly and year-to-date 2019 segment financial information has been recast to reflect the segment changes as part of the revitalization plan. Please see 2019 segment recast by quarter on the Investor Relations section of our website. |
(2) |
Financial volume in hectoliters for |
(3) |
Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals. The unrealized changes in fair value on our commodity swaps, which are economic hedges, are recorded as cost of goods sold within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. |
|
Worldwide Brand and Financial Volume | |||||||||||||||||||||||
(In millions of hectoliters) (Unaudited) |
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||||
|
|
|
|
|
Change |
|
|
|
|
|
Change |
||||||||||||
Financial Volume |
19.676 |
|
|
|
21.766 |
|
|
|
(9.6 |
) |
% |
|
84.479 |
|
|
|
92.722 |
|
|
|
(8.9 |
) |
% |
Contract brewing and wholesaler volume |
(1.453 |
) |
|
|
(1.794 |
) |
|
|
(19.0 |
) |
% |
|
(6.355 |
) |
|
|
(7.715 |
) |
|
|
(17.6 |
) |
% |
Royalty volume |
1.115 |
|
|
|
1.280 |
|
|
|
(12.9 |
) |
% |
|
3.783 |
|
|
|
4.226 |
|
|
|
(10.5 |
) |
% |
Sales-To-Wholesaler to Sales-To-Retail adjustment |
(0.022 |
) |
|
|
0.536 |
|
|
|
N/M |
|
|
0.126 |
|
|
|
(0.287 |
) |
|
|
N/M |
|
||
Total Worldwide Brand Volume |
19.316 |
|
|
|
21.788 |
|
|
|
(11.3 |
) |
% |
|
82.033 |
|
|
|
88.946 |
|
|
|
(7.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Worldwide Brand Volume by Segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
14.855 |
|
|
|
15.963 |
|
|
|
(6.9 |
) |
% |
|
61.313 |
|
|
|
64.640 |
|
|
|
(5.1 |
) |
% |
|
4.461 |
|
|
|
5.825 |
|
|
|
(23.4 |
) |
% |
|
20.720 |
|
|
|
24.306 |
|
|
|
(14.8 |
) |
% |
Total |
19.316 |
|
|
|
21.788 |
|
|
|
(11.3 |
) |
% |
|
82.033 |
|
|
|
88.946 |
|
|
|
(7.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful
Worldwide brand volume (or "brand volume" when discussed by segment) reflects only owned brands sold to unrelated external customers within our geographic markets (net of returns and allowances), royalty volume and our proportionate share of equity investment worldwide brand volume calculated consistently with MCBC owned volume. Contract brewing and wholesaler volume is included within financial volume, but is removed from worldwide brand volume, as this is non-owned volume for which we do not directly control performance. Our worldwide brand volume definition also includes an adjustment from Sales-to-Wholesaler (STW) volume to Sales-to-Retailer (STR) volume. We believe the brand volume metric is important because, unlike financial volume and STWs, it provides the closest indication of the performance of our brands in relation to market and competitor sales trends. Brand volumes presented for the
Use of Non-GAAP Measures |
In addition to financial measures presented on the basis of accounting principles generally accepted in the
We have provided reconciliations of all historical non-GAAP measures to their nearest
Our guidance for underlying depreciation and amortization, underlying effective tax rate and underlying EBITDA are also non-GAAP financial measures that exclude or otherwise have been adjusted for special items from our
Constant currency is a non-GAAP measure utilized by
Reconciliation to Nearest |
|||||||||||||
Underlying EBITDA |
|||||||||||||
($ in millions) (Unaudited) |
Three Months Ended |
||||||||||||
|
|
|
|
|
Change |
||||||||
|
$ |
(1,369.8 |
) |
|
|
$ |
163.7 |
|
|
|
N/M |
|
|
Add: Net income (loss) attributable to noncontrolling interests |
(4.1 |
) |
|
|
2.5 |
|
|
|
N/M |
|
|||
|
(1,373.9 |
) |
|
|
166.2 |
|
|
|
N/M |
|
|||
Add: Interest expense (income), net |
64.8 |
|
|
|
68.2 |
|
|
|
(5.0 |
) |
% |
||
Add: Income tax expense (benefit) |
36.6 |
|
|
|
40.4 |
|
|
|
(9.4 |
) |
% |
||
Add: Depreciation and amortization |
207.1 |
|
|
|
217.6 |
|
|
|
(4.8 |
) |
% |
||
Adjustments included in underlying income(1) |
1,445.2 |
|
|
|
82.3 |
|
|
|
N/M |
|
|||
Adjustments to arrive at underlying EBITDA(2) |
(4.7 |
) |
|
|
(11.6 |
) |
|
|
(59.5 |
) |
% |
||
Underlying EBITDA |
$ |
375.1 |
|
|
|
$ |
563.1 |
|
|
|
(33.4 |
) |
% |
|
|
|
|
|
|
($ in millions) (Unaudited) |
Twelve Months Ended |
||||||||||||
|
|
|
|
|
Change |
||||||||
|
$ |
(949.0 |
) |
|
|
$ |
241.7 |
|
|
|
N/M |
|
|
Add: Net income (loss) attributable to noncontrolling interests |
3.3 |
|
|
|
4.5 |
|
|
|
(26.7 |
) |
% |
||
|
(945.7 |
) |
|
|
246.2 |
|
|
|
N/M |
|
|||
Add: Interest expense (income), net |
271.3 |
|
|
|
272.7 |
|
|
|
(0.5 |
) |
% |
||
Add: Income tax expense (benefit) |
301.8 |
|
|
|
233.7 |
|
|
|
29.1 |
|
% |
||
Add: Depreciation and amortization |
922.0 |
|
|
|
859.0 |
|
|
|
7.3 |
|
% |
||
Adjustments included in underlying income(1) |
1,695.0 |
|
|
|
784.1 |
|
|
|
116.2 |
|
% |
||
Adjustments to arrive at underlying EBITDA(2) |
(112.3 |
) |
|
|
(31.7 |
) |
|
|
N/M |
|
|||
Underlying EBITDA |
$ |
2,132.1 |
|
|
|
$ |
2,364.0 |
|
|
|
(9.8 |
) |
% |
|
|
|
|
|
|
N/M = Not meaningful
(1) |
Includes adjustments to non-GAAP underlying income related to special and non-core items. See Reconciliations to Nearest |
(2) |
Represents adjustments to remove amounts related to interest, depreciation and amortization included in the adjustments to non-GAAP underlying income above, as these items are added back as adjustments to net income (loss) attributable to MCBC. |
Underlying Free Cash Flow | ||||||||||
(In millions) (Unaudited) |
Twelve Months Ended |
|||||||||
|
|
|
|
|
||||||
|
Net Cash Provided by (Used In) Operating Activities |
$ |
1,695.7 |
|
|
|
$ |
1,897.3 |
|
|
Less: |
Additions to properties(1) |
(574.8 |
) |
|
|
(593.8 |
) |
|
||
Add/Less: |
Cash impact of special items(2) |
89.4 |
|
|
|
33.9 |
|
|
||
Add/Less: |
Cash impact of other non-core items(3) |
56.0 |
|
|
|
32.4 |
|
|
||
Non-GAAP: |
Underlying Free Cash Flow |
$ |
1,266.3 |
|
|
|
$ |
1,369.8 |
|
|
|
|
|
|
|
(1) |
Included in net cash used in investing activities. |
(2) |
Included in net cash provided by (used in) operating activities and primarily reflects costs paid for restructuring activities for the twelve months ended |
(3) |
Included in net cash provided by (used in) operating activities and primarily reflects costs paid for on-premise keg sales returns and "thank you" pay for certain essential |
Reconciliation by Line Item | |||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||
(In millions, except per share data) (Unaudited) |
Net sales |
Cost of goods sold |
Marketing, general and administrative expenses |
Operating income (loss) |
Other income (expense), net |
Net income (loss) attributable to MCBC |
Net income (loss) attributable to MCBC per diluted share |
||||||||||||||||||||
Reported ( |
$ |
2,294.3 |
|
|
$ |
(1,399.1 |
) |
|
$ |
(648.3 |
) |
|
$ |
(1,282.7 |
) |
|
$ |
2.6 |
|
$ |
(1,369.8 |
) |
|
$ |
(6.32 |
) |
|
Adjustments to arrive at underlying: |
|
|
|
|
|
|
|
||||||||||||||||||||
Special items, net |
|
|
|
|
|
|
|
||||||||||||||||||||
Employee-related charges |
— |
|
|
— |
|
|
— |
|
|
5.8 |
|
|
— |
|
5.8 |
|
|
0.03 |
|
|
|||||||
Impairments or asset abandonment charges |
— |
|
|
— |
|
|
— |
|
|
1,526.6 |
|
|
— |
|
1,526.6 |
|
|
7.03 |
|
|
|||||||
Termination fees and other (gains) losses |
— |
|
|
— |
|
|
— |
|
|
(2.8 |
) |
|
— |
|
(2.8 |
) |
|
(0.01 |
) |
|
|||||||
Non-Core items |
|
|
|
|
|
|
|
||||||||||||||||||||
On-premise keg sales returns and inventory obsolescence(1) |
(0.8 |
) |
|
(0.5 |
) |
|
— |
|
|
(1.3 |
) |
|
— |
|
(1.3 |
) |
|
(0.01 |
) |
|
|||||||
Unrealized mark-to-market (gains) losses |
— |
|
|
(82.9 |
) |
|
— |
|
|
(82.9 |
) |
|
— |
|
(82.9 |
) |
|
(0.38 |
) |
|
|||||||
Other non-core items |
— |
|
|
(0.6 |
) |
|
0.1 |
|
|
(0.5 |
) |
|
0.3 |
|
(0.2 |
) |
|
— |
|
|
|||||||
Total Special and Other Non-Core items |
$ |
(0.8 |
) |
|
$ |
(84.0 |
) |
|
$ |
0.1 |
|
|
$ |
1,444.9 |
|
|
$ |
0.3 |
|
$ |
1,445.2 |
|
|
$ |
6.66 |
|
|
Tax effects on special and non-GAAP items |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
11.2 |
|
|
0.06 |
|
|
|||||||
Underlying (Non-GAAP) |
$ |
2,293.5 |
|
|
$ |
(1,483.1 |
) |
|
$ |
(648.2 |
) |
|
$ |
162.2 |
|
|
$ |
2.9 |
|
$ |
86.6 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
(1) |
Includes keg sales returns and finished goods obsolescence charges and adjustments related to the on-premise impacts resulting from the coronavirus pandemic. Non-GAAP adjustments do not include any estimates of lost revenue resulting from the coronavirus pandemic. |
Twelve Months Ended |
||||||||||||||||||||||||||
(In millions, except per share data) (Unaudited)
|
Net sales |
Cost of goods sold |
Marketing, general and administrative expenses |
Operating income (loss) |
Other income (expense), net |
Net income (loss) attributable to MCBC |
Net income (loss) attributable to MCBC per diluted share |
|||||||||||||||||||
Reported ( |
$ |
9,654.0 |
|
$ |
(5,885.7 |
) |
|
$ |
(2,437.0 |
) |
|
$ |
(408.9 |
) |
|
$ |
6.0 |
|
$ |
(949.0 |
) |
|
$ |
(4.38 |
) |
|
Adjustments to arrive at underlying: |
|
|
|
|
|
|
|
|||||||||||||||||||
Special items, net |
|
|
|
|
|
|
|
|||||||||||||||||||
Employee-related charges |
— |
|
— |
|
|
— |
|
|
67.6 |
|
|
— |
|
67.6 |
|
|
0.31 |
|
|
|||||||
Impairments or asset abandonment charges |
— |
|
— |
|
|
— |
|
|
1,675.3 |
|
|
— |
|
1,675.3 |
|
|
7.72 |
|
|
|||||||
Termination fees and other (gains) losses |
— |
|
— |
|
|
— |
|
|
(2.7 |
) |
|
— |
|
(2.7 |
) |
|
(0.01 |
) |
|
|||||||
Non-Core items |
|
|
|
|
|
|
|
|||||||||||||||||||
On-premise keg sales returns and inventory obsolescence(1) |
30.3 |
|
12.1 |
|
|
— |
|
|
42.4 |
|
|
— |
|
42.4 |
|
|
0.20 |
|
|
|||||||
Temporary "thank you" pay(1) |
— |
|
15.5 |
|
|
— |
|
|
15.5 |
|
|
— |
|
15.5 |
|
|
0.07 |
|
|
|||||||
Unrealized mark-to-market (gains) losses |
— |
|
(107.6 |
) |
|
— |
|
|
(107.6 |
) |
|
— |
|
(107.6 |
) |
|
(0.50 |
) |
|
|||||||
Other non-core items |
— |
|
(0.3 |
) |
|
2.3 |
|
|
2.0 |
|
|
2.4 |
|
4.4 |
|
|
0.02 |
|
|
|||||||
Non-core other pension and postretirement benefits (costs), net |
— |
|
— |
|
|
— |
|
|
— |
|
|
0.1 |
|
0.1 |
|
|
— |
|
|
|||||||
Total Special and Other Non-Core items |
$ |
30.3 |
|
$ |
(80.3 |
) |
|
$ |
2.3 |
|
|
$ |
1,692.5 |
|
|
$ |
2.5 |
|
$ |
1,695.0 |
|
|
$ |
7.81 |
|
|
Tax effects on special and non-GAAP items |
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
105.7 |
|
|
0.49 |
|
|
|||||||
Underlying (Non-GAAP) |
$ |
9,684.3 |
|
$ |
(5,966.0 |
) |
|
$ |
(2,434.7 |
) |
|
$ |
1,283.6 |
|
|
$ |
8.5 |
|
$ |
851.7 |
|
|
$ |
3.92 |
|
|
|
|
|
|
|
|
|
|
(1) |
Includes keg sales returns and finished goods obsolescence charges and adjustments related to the on-premise impacts resulting from the coronavirus pandemic. Additionally, includes temporary "thank you" pay for certain essential |
|
|||||||||||||||||||
Reconciliation to Underlying EBITDA by Segment |
|||||||||||||||||||
(In millions) (Unaudited) |
Three Months Ended |
||||||||||||||||||
|
|
|
|
|
Unallocated |
|
Consolidated |
||||||||||||
Income (loss) before income taxes |
$ |
192.0 |
|
|
|
$ |
(1,556.8 |
) |
|
|
$ |
27.5 |
|
|
|
$ |
(1,337.3 |
) |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||||||
Net sales(1) |
(0.9 |
) |
|
|
0.1 |
|
|
|
— |
|
|
|
(0.8 |
) |
|
||||
Cost of goods sold(1)(2) |
(1.1 |
) |
|
|
— |
|
|
|
(82.9 |
) |
|
|
(84.0 |
) |
|
||||
Marketing, general & administrative |
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
||||
Special items, net(3) |
40.0 |
|
|
|
1,489.6 |
|
|
|
— |
|
|
|
1,529.6 |
|
|
||||
Other income/expense non-core items |
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
||||
Total Special and other Non-Core items |
$ |
38.4 |
|
|
|
$ |
1,489.7 |
|
|
|
$ |
(82.9 |
) |
|
|
$ |
1,445.2 |
|
|
Underlying pretax income (loss) |
$ |
230.4 |
|
|
|
$ |
(67.1 |
) |
|
|
$ |
(55.4 |
) |
|
|
$ |
107.9 |
|
|
Interest expense (income), net |
0.4 |
|
|
|
1.4 |
|
|
|
63.0 |
|
|
|
64.8 |
|
|
||||
Depreciation and amortization |
160.3 |
|
|
|
46.8 |
|
|
|
— |
|
|
|
207.1 |
|
|
||||
Adjustments to arrive at underlying EBITDA(4) |
(2.8 |
) |
|
|
(1.9 |
) |
|
|
— |
|
|
|
(4.7 |
) |
|
||||
Underlying EBITDA |
$ |
388.3 |
|
|
|
$ |
(20.8 |
) |
|
|
$ |
7.6 |
|
|
|
$ |
375.1 |
|
|
|
|
|
|
|
|
|
|
(In millions) (Unaudited) |
Twelve Months Ended |
||||||||||||||||||
|
|
|
|
|
Unallocated |
|
Consolidated |
||||||||||||
Income (loss) before income taxes |
$ |
1,080.5 |
|
|
|
$ |
(1,603.7 |
) |
|
|
$ |
(120.7 |
) |
|
|
$ |
(643.9 |
) |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||||||
Net sales(1) |
13.2 |
|
|
|
17.1 |
|
|
|
— |
|
|
|
30.3 |
|
|
||||
Cost of goods sold(1)(2) |
24.4 |
|
|
|
2.9 |
|
|
|
(107.6 |
) |
|
|
(80.3 |
) |
|
||||
Marketing, general & administrative |
2.3 |
|
|
|
— |
|
|
|
— |
|
|
|
2.3 |
|
|
||||
Special items, net(3) |
212.5 |
|
|
|
1,527.7 |
|
|
|
— |
|
|
|
1,740.2 |
|
|
||||
Other income/expense non-core items |
2.4 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
2.5 |
|
|
||||
Total Special and other Non-Core items |
$ |
254.8 |
|
|
|
$ |
1,547.7 |
|
|
|
$ |
(107.5 |
) |
|
|
$ |
1,695.0 |
|
|
Underlying pretax income (loss) |
$ |
1,335.3 |
|
|
|
$ |
(56.0 |
) |
|
|
$ |
(228.2 |
) |
|
|
$ |
1,051.1 |
|
|
Interest expense (income), net |
2.4 |
|
|
|
5.4 |
|
|
|
263.5 |
|
|
|
271.3 |
|
|
||||
Depreciation and amortization |
743.0 |
|
|
|
179.0 |
|
|
|
— |
|
|
|
922.0 |
|
|
||||
Adjustments to arrive at underlying EBITDA(4) |
(110.4 |
) |
|
|
(1.9 |
) |
|
|
— |
|
|
|
(112.3 |
) |
|
||||
Underlying EBITDA |
$ |
1,970.3 |
|
|
|
$ |
126.5 |
|
|
|
$ |
35.3 |
|
|
|
$ |
2,132.1 |
|
|
|
|
|
|
|
|
|
|
(1) |
Includes keg sales returns and finished goods obsolescence charges and adjustments related to the on-premise impacts resulting from the coronavirus pandemic. Additionally, for the twelve months ended |
(2) |
The unrealized changes in fair value on our commodity swaps, which are economic hedges, are recorded as cost of goods sold within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. |
(3) |
See Part II—Item 8. Financial Statements and Supplementary Data, Note 7, "Special Items" of the Form 10-K for detailed discussion of special items. Special items for the three and twelve months ended |
(4) |
Represents adjustments to remove amounts related to interest, depreciation and amortization included in the adjustments to underlying income above, as these items are added back as adjustments to net income attributable to MCBC. |
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