Coca-Cola Bottling Co. Consolidated
UNITED STATES
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
Date of Report (Date of Earliest Event Reported):
April 27, 2007
COCA-COLA BOTTLING CO. CONSOLIDATED
(Exact name of registrant as specified in its charter)
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Delaware
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0-9286
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56-0950585 |
(State or other jurisdiction
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(Commission File Number)
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(IRS Employer Identification No.) |
of incorporation) |
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4100
Coca-Cola Plaza, Charlotte, North Carolina 28211
(Address of principal executive offices) (Zip Code)
(704) 557-4400
(Registrants 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.
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On April 27, 2007, Coca-Cola Bottling Co. Consolidated (the Company) issued a news
release announcing its financial results for the quarter ended April 1, 2007. A copy of
the news release is furnished as Exhibit 99.1 hereto. |
Item 9.01. Financial Statements and Exhibits.
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99.1 |
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News release issued on April 27, 2007, reporting the
Companys financial results for the quarter ended April 1, 2007. |
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.
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COCA-COLA BOTTLING CO. CONSOLIDATED |
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(REGISTRANT) |
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Date: May 1, 2007
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BY:
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/s/ Steven D. Westphal |
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Steven D. Westphal
Principal Financial Officer of the Registrant
and
Senior Vice President and Chief Financial Officer |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC
EXHIBITS
CURRENT REPORT
ON
FORM 8-K
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Date of Event Reported:
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Commission File No: |
April 27, 2007
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0-9286 |
COCA-COLA BOTTLING CO. CONSOLIDATED
EXHIBIT INDEX
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Exhibit No. |
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Exhibit Description |
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99.1
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News release issued on April 27, 2007, reporting the Companys financial results for
the quarter ended April 1, 2007. |
Exhibit 99.1
Exhibit 99.1
Coca-Cola Bottling Co. Consolidated, 4100 Coca-Cola Plaza, Charlotte, NC 28211
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Media Contact:
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Lauren C. Steele
VP Corporate Affairs
704-557-4551 |
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Investor Contact:
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Steven D. Westphal
Senior VP CFO
704-557-4456 |
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FOR IMMEDIATE RELEASE
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Symbol: COKE |
April 27, 2007
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Quoted: The NASDAQ Stock Market (Global Market) |
Coca-Cola Bottling Co. Consolidated Reports First Quarter 2007 Results
CHARLOTTE, NC Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) today announced it earned
$4.7 million, or basic net income per share of $.51, in the first quarter of 2007 compared to net
income of $.8 million, or basic net income per share of $.09, in the first quarter of 2006. The
first quarter of 2007 results include the after-tax impact of restructuring costs of $1.3 million,
or basic net income per share of $.14, related to the previously announced simplification of the
Companys operating management structure and reduction in workforce in order to improve operating
efficiencies across the Companys business. The Company anticipates the total restructuring costs
after-tax will be in the range of $1.5 million to $2.1 million, substantially all of which will be
incurred during 2007.
J. Frank Harrison, III, Chairman and CEO, indicated he was encouraged by the trend in operating
expenses over the most recent six months of 2006-2007, which were down about 2% as compared to the
corresponding six months of 2005-2006. Mr. Harrison said, We anticipate significant increases in
packaging and sweetener costs in 2007 and our heightened focus on resource efficiency, in
conjunction with our restructuring and reduction in workforce, will help to offset these higher raw
material costs and assist us in maintaining our operating margins.
William B. Elmore, President and COO, said, While results from our sparkling beverage portfolio
were soft in the first quarter, the Company experienced solid revenue and gross margin growth in
its still beverage portfolio, primarily in the water and tea product categories. Gross margin in
the first quarter increased by approximately 3% for water and increased by more than 100% for tea.
The improvements in margin in the tea category resulted from a combination of product innovation
and increased promotional activity. We introduced two new tea products from The Coca-Cola Company
during the first quarter, Gold Peak and Enviga. The Company looks forward to the introduction
later in 2007 of Diet Coke Plus, a vitamin enhanced diet cola, and Dasani Plus, an enhanced water
beverage. Continued product innovation will be critical to respond to consumer demand in the
ever-changing nonalcoholic beverage environment.
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 managements
current outlook for future periods. These statements include, among others, statements about the
Companys expectations related to the amount and timing of its restructuring costs, operating
expense trends, the impact of the restructuring announced in February 2007, the introduction during
2007 of Diet Coke Plus and Dasani Plus and continued product innovation.
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 public
and consumer preferences related to nonalcoholic beverages; our inability to meet requirements
under bottling contracts; 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 Companys 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 costs; sustained
increases in the cost of employee benefits; changes in interest rates; 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;
additional taxes resulting from tax audits; natural disasters and unfavorable weather; issues
surrounding labor relations; recent bottler litigation; our use of estimates and assumptions;
public policy challenges regarding the sale of soft drinks in schools; 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 December 31, 2006 under Part I, Item 1A Risk Factors. 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)
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First Quarter |
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2007 |
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2006 |
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Net sales |
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$ |
337,556 |
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$ |
333,179 |
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Cost of sales |
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186,065 |
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187,153 |
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Gross margin |
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151,491 |
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146,026 |
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Selling, delivery and administrative expenses |
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130,831 |
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131,728 |
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Amortization of intangibles |
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111 |
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148 |
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Income from operations |
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20,549 |
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14,150 |
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Interest expense |
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12,218 |
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12,220 |
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Minority interest |
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681 |
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556 |
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Income before income taxes |
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7,650 |
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1,374 |
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Income taxes |
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2,999 |
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559 |
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Net income |
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$ |
4,651 |
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$ |
815 |
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Basic net income per share: |
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Common Stock |
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$ |
.51 |
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$ |
.09 |
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Weighted average number of Common
Stock shares outstanding |
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6,643 |
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6,643 |
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Class B Common Stock |
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$ |
.51 |
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$ |
.09 |
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Weighted average number of Class B
Common Stock shares outstanding |
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2,480 |
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2,460 |
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Diluted net income per share: |
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Common Stock |
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$ |
.51 |
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$ |
.09 |
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Weighted average number of Common
Stock shares outstanding assuming dilution |
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9,131 |
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9,112 |
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Class B Common Stock |
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$ |
.51 |
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$ |
.09 |
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Weighted average number of Class B Common
Stock shares outstanding assuming dilution |
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2,488 |
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2,469 |
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