UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
May 10, 2011
COCA-COLA BOTTLING CO. CONSOLIDATED
(Exact name of registrant as specified in its charter)
| Delaware | 0-9286 | 56-0950585 | ||
| (State or other jurisdiction | (Commission File Number) | (IRS Employer Identification No.) | ||
| of incorporation) |
4100 Coca-Cola Plaza, Charlotte, North Carolina 28211
(Address of principal executive offices) (Zip Code)
(704) 557-4400
(Registrant’s telephone number, including area code)
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On May 10, 2011, Coca-Cola Bottling Co. Consolidated (the “Company”) issued a news
release announcing its financial results for the quarter ended April 3, 2011. A copy of
the news release is furnished as Exhibit 99.1 hereto. |
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. |
| 99.1 | News release issued on May 10, 2011, reporting the Company’s
financial results for the quarter ended April 3, 2011. |
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COCA-COLA BOTTLING CO. CONSOLIDATED (REGISTRANT) |
||||
| Date: May 12, 2011 | BY: | /s/ James E. Harris | ||
| James E. Harris Principal Financial Officer of the Registrant and Senior Vice President and Chief Financial Officer |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC
SECURITIES AND EXCHANGE COMMISSION
Washington, DC
EXHIBITS
CURRENT REPORT
ON
FORM 8-K
ON
FORM 8-K
Date of Event Reported:
|
Commission File No: | |
May 10, 2011
|
0-9286 |
COCA-COLA BOTTLING CO. CONSOLIDATED
EXHIBIT INDEX
| Exhibit No. | Exhibit Description | |
99.1
|
News release issued on May 10, 2011, reporting the Company’s financial results for the quarter ended April 3, 2011. |
Exhibit 99.1
Coca-Cola Bottling Co. Consolidated, 4100 Coca-Cola Plaza, Charlotte, NC 28211
News Release
|
Media Contact: Investor Contact: |
Lauren C. Steele VP — Corporate Affairs 704-557-4551 James E. Harris Senior VP — CFO 704-557-4582 |
FOR IMMEDIATE RELEASE
|
Symbol: COKE | |
May 10, 2011
|
Quoted: The NASDAQ Stock Market (Global Select Market) |
Coca-Cola Bottling Co. Consolidated Reports First Quarter 2011 Results
CHARLOTTE, NC — Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) today announced it earned $5.9
million, or basic net income per share of $.64, on net sales of $359.6 million for the first
quarter of 2011, compared to net income of $4.7 million, or basic net income per share of $.51, on
net sales of $347.5 million for the first quarter of 2010. The results for the first quarter of
2011 included $0.4 million of after-tax losses ($0.7 million on a pre-tax basis) due to
mark-to-market adjustments on fuel and aluminum hedges. The results for the first quarter of 2010
included $0.1 million of after-tax gains ($0.2 million on a pre-tax basis) due to mark-to-market
adjustments on fuel and aluminum hedges and a $0.5 million increase in income tax expense due to
the change in tax law eliminating the tax deduction once available for Medicare Part D subsidies.
On a comparable basis, the Company earned $6.4 million in the first quarter of 2011, or comparable
basic net income per share of $.69, versus $4.9 million in the first quarter of 2010, or comparable
basic net income per share of $.54.
The following table reconciles reported GAAP net income and basic net income per share to
comparable net income and basic net income per share for the first quarter of 2011 and 2010:
| First Quarter | ||||||||||||||||
| Basic Net Income | ||||||||||||||||
| Net Income | Per Share | |||||||||||||||
| In Thousands, Except Per Share Amounts | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Reported net income (GAAP) |
$ | 5,913 | $ | 4,660 | $ | 0.64 | $ | 0.51 | ||||||||
Net (gain) loss on fuel & aluminum hedges, net of tax |
396 | (149 | ) | 0.04 | (0.02 | ) | ||||||||||
Impact of change in tax law regarding Medicare Part D subsidy |
— | 464 | — | 0.05 | ||||||||||||
Other income tax changes |
62 | (35 | ) | 0.01 | (0.00 | ) | ||||||||||
Total |
458 | 280 | 0.05 | 0.03 | ||||||||||||
Comparable net income (a) |
$ | 6,371 | $ | 4,940 | $ | 0.69 | $ | 0.54 | ||||||||
(a) This non-GAAP financial information is provided to allow investors to more clearly
evaluate operating performance and business trends for the first quarters of 2011 and 2010.
Management uses this information to review results excluding items that are not necessarily
indicative of ongoing results.
J. Frank Harrison, III, Chairman and CEO, said, “We are pleased with our first quarter results.
We continued to grow our revenue and effectively control costs which resulted in a strong start to
2011. Our first quarter results reflect strong execution across our entire business. We continue
to face many challenges including the potential for significant increases in commodity costs and
persistently high unemployment in the areas we serve. ”
William B. Elmore, President and COO, added, “Our strong first quarter results are a great start
for the year. However, we believe that our greatest challenges in 2011 lie in the months ahead.
As we look to the remainder of 2011, the challenges are expected to get tougher as higher commodity
prices will have greater impact on costs. We are also starting to see lower sales trends in our
convenience store business as consumers react to higher fuel prices. As we have been doing over
the past several years, we will continue to look for ways to improve our supply chain and minimize
our operating costs. We will also review our pricing and make adjustments as necessary to
maintain our profitability.”
Cautionary Information Regarding Forward-Looking Statements
Included in this news release and other information that we make publicly available from time to
time are forward-looking management comments and other statements that reflect management’s current
outlook for future periods. These statements include, among others, statements regarding the
challenges that lie ahead in 2011, including the impact of higher commodity prices and lower sales
trends in our convenience store business resulting from consumer reaction to higher fuel prices;
our continued focus on improving our supply chain and minimizing operating costs; and our intention
to make pricing adjustments as necessary to maintain profitability.
These statements and expectations are based on currently available competitive, financial and
economic data along with our operating plans, and are subject to future events and uncertainties
that could cause anticipated events not to occur or actual results to differ materially from
historical or anticipated results. Among the events or uncertainties which could adversely affect
future periods are: lower than expected selling pricing resulting from increased marketplace
competition; changes in how significant customers market or promote our products; changes in our
top customer relationships; changes in public and consumer preferences related to nonalcoholic
beverages; unfavorable changes in the general economy; miscalculation of our need for
infrastructure investment; our inability to meet requirements under beverage agreements; material
changes in the performance requirements for marketing funding support or our inability to meet such
requirements; decreases from historic levels of marketing funding support; changes in The Coca-Cola
Company’s and other beverage companies’ levels of advertising, marketing and spending on brand
innovation; the inability of our aluminum can or plastic bottle suppliers to meet our purchase
requirements; our inability to offset higher raw material costs with higher selling prices,
increased bottle/can sales volume or reduced expenses; sustained increases in fuel costs or our
inability to secure adequate supplies of fuel; sustained increases in workers’ compensation,
employment practices and vehicle accident claims costs; sustained increases in the cost of employee
benefits; product liability claims or product recalls; technology failures; changes in interest
rates; the impact of debt levels on operating flexibility and access to capital and credit markets;
adverse changes in our credit rating (whether as a result of our operations or prospects or as a
result of those of The Coca-Cola Company or other bottlers in the Coca-Cola system); changes in
legal contingencies; legislative changes effecting our distribution and packaging; adoption of
significant product labeling or warning requirements; additional taxes resulting from tax audits;
natural disasters and unfavorable weather; global climate change or legal or regulatory responses
to such change; issues surrounding labor relations; bottler system disputes; our use of estimates
and assumptions; changes in accounting standards; impact of obesity and health concerns on product
demand; public policy challenges regarding the sale of soft drinks in schools; the impact of recent
volatility in the financial markets to access the credit markets; the impact of recently announced
and completed acquisitions of bottlers by their franchisors; and the concentration of our capital
stock ownership. The forward-looking statements in this news release should be read in conjunction
with the more detailed descriptions of the above factors located in our Annual Report on Form 10-K
for the year ended January 2, 2011 under Part I, Item 1A “Risk Factors” as well as those additional
factors we may describe from time to time in other filings with the Securities and Exchange
Commission. Except as required by law, the Company undertakes no obligation to update or revise
any forward-looking statements contained in this release as a result of new information or future
events or developments.
—Enjoy Coca-Cola—
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
In Thousands (Except Per Share Data)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
In Thousands (Except Per Share Data)
| First Quarter | ||||||||
| 2011 | 2010 | |||||||
Net sales |
$ | 359,629 | $ | 347,498 | ||||
Cost of sales |
210,468 | 200,795 | ||||||
Gross margin |
149,161 | 146,703 | ||||||
Selling, delivery and administrative expenses |
129,982 | 129,044 | ||||||
Income from operations |
19,179 | 17,659 | ||||||
Interest expense |
8,769 | 8,810 | ||||||
Income before income taxes |
10,410 | 8,849 | ||||||
Income taxes |
3,941 | 3,714 | ||||||
Net income |
6,469 | 5,135 | ||||||
Less: Net income attributable to the
noncontrolling interest |
556 | 475 | ||||||
Net income attributable to Coca-Cola Bottling Co.
Consolidated |
$ | 5,913 | $ | 4,660 | ||||
Basic net income per share based on net
income attributable to Coca-Cola Bottling Co.
Consolidated: |
||||||||
Common Stock |
$ | 0.64 | $ | 0.51 | ||||
Weighted average number of Common
Stock shares outstanding |
7,141 | 7,141 | ||||||
Class B Common Stock |
$ | 0.64 | $ | 0.51 | ||||
Weighted average number of Class B
Common Stock shares outstanding |
2,051 | 2,029 | ||||||
Diluted net income per share based on net
income attributable to Coca-Cola Bottling Co.
Consolidated: |
||||||||
Common Stock |
$ | 0.64 | $ | 0.51 | ||||
Weighted average number of Common
Stock shares outstanding — assuming dilution |
9,232 | 9,210 | ||||||
Class B Common Stock |
$ | 0.64 | $ | 0.50 | ||||
Weighted average number of Class B Common
Stock shares outstanding — assuming dilution |
2,091 | 2,069 | ||||||
Coca-Cola Bottling Co. Consolidated
CONDENSED BALANCE SHEETS (UNAUDITED)
In Thousands
CONDENSED BALANCE SHEETS (UNAUDITED)
In Thousands
| April 3, | January 2, | April 4, | ||||||||||
| 2011 | 2011 | 2010 | ||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash |
$ | 33,882 | $ | 49,372 | $ | 52,825 | ||||||
Trade accounts receivable, net |
110,809 | 96,787 | 111,397 | |||||||||
Accounts receivable, other |
23,706 | 27,910 | 28,034 | |||||||||
Inventories |
72,606 | 64,870 | 64,734 | |||||||||
Prepaids and other current assets |
27,306 | 25,760 | 32,590 | |||||||||
Total current assets |
268,309 | 264,699 | 289,580 | |||||||||
Property, plant and equipment, net |
319,682 | 322,143 | 321,488 | |||||||||
Leased property under capital leases, net |
64,188 | 46,856 | 50,375 | |||||||||
Other assets |
51,457 | 46,332 | 46,796 | |||||||||
Franchise rights, goodwill and other intangibles, net |
627,469 | 627,592 | 627,948 | |||||||||
Total |
$ | 1,331,105 | $ | 1,307,622 | $ | 1,336,187 | ||||||
LIABILITIES AND EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Current portion of debt and capital lease obligations |
$ | 3,946 | $ | 3,866 | $ | 23,851 | ||||||
Accounts payable and accrued expenses |
170,341 | 172,874 | 168,565 | |||||||||
Total current liabilities |
174,287 | 176,740 | 192,416 | |||||||||
Deferred income taxes |
144,972 | 143,962 | 159,591 | |||||||||
Pension, postretirement and other liabilities |
225,533 | 224,045 | 198,336 | |||||||||
Long-term debt and obligations under capital leases |
596,026 | 578,458 | 611,271 | |||||||||
Total liabilities |
1,140,818 | 1,123,205 | 1,161,614 | |||||||||
Stockholders’ equity |
133,209 | 127,895 | 121,294 | |||||||||
Noncontrolling interest |
57,078 | 56,522 | 53,279 | |||||||||
Total |
$ | 1,331,105 | $ | 1,307,622 | $ | 1,336,187 | ||||||