Form 8-K

 

 

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):

May 8, 2012

 

 

COCA-COLA BOTTLING CO. CONSOLIDATED

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   0-9286   56-0950585

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

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)

 

 

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:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ 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 8, 2012, Coca-Cola Bottling Co. Consolidated (the “Company”) issued a news release announcing its financial results for the quarter ended April 1, 2012. 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 8, 2012, reporting the Company’s financial results for the quarter ended April 1, 2012.


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 10, 2012     BY:  

/s/    James E. Harris        

      James E. Harris
     

Principal Financial Officer of the Registrant

and

Senior Vice President, Shared Services

and

Chief Financial Officer


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC

EXHIBITS

CURRENT REPORT

ON

FORM 8-K

 

Date of Event Reported:          Commission File No:
May 8, 2012          0-9286

COCA-COLA BOTTLING CO. CONSOLIDATED

EXHIBIT INDEX

 

Exhibit
No.

  

Exhibit Description

99.1    News release issued on May 8, 2012, reporting the Company’s financial results for the quarter ended April 1, 2012.
News release

Exhibit 99.1

Coca-Cola Bottling Co. Consolidated, 4100 Coca-Cola Plaza, Charlotte, NC 28211

 

 

LOGO

        

News Release

 

      Media Contact:    Lauren C. Steele
         Senior VP - Corporate Affairs
         704-557-4551
     

 

Investor Contact:

  

 

James E. Harris

         Senior VP - Shared Services & CFO
         704-557-4582
        
        
        

 

FOR IMMEDIATE RELEASE   Symbol: COKE
May 8, 2012   Quoted: The NASDAQ Stock Market (Global Select Market)

Coca-Cola Bottling Co. Consolidated Reports First Quarter 2012 Results

CHARLOTTE, NC — Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) today announced it earned $4.6 million, or basic net income per share of $.50, on net sales of $377.2 million for the first quarter of 2012, compared to net income of $5.9 million, or basic net income per share of $.64, on net sales of $359.6 million for the first quarter of 2011. The results for the first quarter of 2012 included a $0.7 million increase in income tax expense due to recording of valuation allowance for certain deferred tax assets. 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.

On a comparable basis, the Company earned $5.5 million in the first quarter of 2012, or comparable basic net income per share of $.60, versus $6.4 million in the first quarter of 2011, or comparable basic net income per share of $.69.

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 2012 and 2011:


     First Quarter  
     Net Income      Basic Net Income  Per
Share
 
In Thousands, Except Per Share Amounts    2012      2011      2012      2011  

Reported net income (GAAP)

   $ 4,565       $ 5,913       $ 0.50       $ 0.64   

Net loss on fuel & aluminum hedges, net of tax

     —           396         —           0.04   

Valuation allowance for certain deferred tax assets

     701         —           0.08         —     

Other income tax changes

     211         62         0.02         0.01   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     912         458         0.10         0.05   
  

 

 

    

 

 

    

 

 

    

 

 

 

Comparable net income (a)

   $ 5,477       $ 6,371       $ 0.60       $ 0.69   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(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 2012 and 2011. 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 solid revenue growth in the first quarter which was driven by higher volume and increased pricing. We have an outstanding team that continues to find new and innovative ways to bring value to our customers and grow our business. We are also very pleased to see the trend from the prior year of positive share swing continue in the first quarter of 2012.”

William B. Elmore, President and COO, added, “Our first quarter results reflect strong revenue and gross margin growth with the value and drug channels leading the way. We continue to see positive results from new packaging including the 12.5-ounce bottle in the convenience channel and our 1.25-liter package. Lower than expected cost increases in certain raw material costs also helped drive gross margin growth for the quarter. The gross margin growth in the first quarter was generally offset by higher costs for labor and benefits as well as higher fuel costs for our delivery fleet. We have continued our focus on improving our supply chain to mitigate the cost increases we have seen in both raw material and operating costs.”


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 we face in 2012, including higher costs for labor and benefits, delivery fleet fuel costs, our continued focus on finding ways to bring value to our consumers and grow our business, our positive results from new packaging, our lower than expected cost increases in certain raw material costs and our continued focus on improving our supply chain to mitigate certain cost increases.

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 affecting 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 volatility in the financial markets on access to the credit markets; the impact of 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 1, 2012 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)

 

     First Quarter  
     2012      2011  

Net sales

   $ 377,185       $ 359,629   

Cost of sales

     221,591         210,468   
  

 

 

    

 

 

 

Gross margin

     155,594         149,161   

Selling, delivery and administrative expenses

     136,961         129,982   
  

 

 

    

 

 

 

Income from operations

     18,633         19,179   

Interest expense, net

     9,071         8,769   
  

 

 

    

 

 

 

Income before income taxes

     9,562         10,410   

Income taxes

     4,467         3,941   
  

 

 

    

 

 

 

Net income

     5,095         6,469   

Less: Net income attributable to noncontrolling interest

     530         556   
  

 

 

    

 

 

 

Net income attributable to Coca-Cola Bottling Co. Consolidated

   $ 4,565       $ 5,913   
  

 

 

    

 

 

 

Basic net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated:

     

Common Stock

   $ 0.50       $ 0.64   
  

 

 

    

 

 

 

Weighted average number of Common Stock shares outstanding

     7,141         7,141   

Class B Common Stock

   $ 0.50       $ 0.64   
  

 

 

    

 

 

 

Weighted average number of Class B Common Stock shares outstanding

     2,073         2,051   

Diluted net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated:

     

Common Stock

   $ 0.49       $ 0.64   
  

 

 

    

 

 

 

Weighted average number of Common Stock shares outstanding – assuming dilution

     9,254         9,232   

Class B Common Stock

   $ 0.49       $ 0.64   
  

 

 

    

 

 

 

Weighted average number of Class B Common Stock shares outstanding – assuming dilution

     2,113         2,091