2008-07-23 17:30:00
Tupperware Brands Reports Second-Quarter Results
- Sales Up 18%, 10% in local currency
- GAAP diluted earnings per share $0.56; $0.75, up 29% (15% in local
currency), excluding items impacting comparability
- Full Year Sales and Earnings per Share Outlook Raised
Tupperware Segments' Sales Grow 19% and Beauty Segments' Sales Grow 17%;
Second Quarter Active Representatives Increase 10%
ORLANDO, Fla., July 23 /EMWNews/ -- (NYSE: TUP) Tupperware
Brands Corporation today reported its fifth consecutive quarter of
double-digit sales growth. Second quarter 2008 sales grew 18% year over
year (10% in local currency) to $584 million with growth in all 5 segments.
Chairman and CEO, Rick Goings commented, "We are pleased to report
another quarter of double-digit sales growth with contributions from all
segments. Even with a back drop of spotty economic conditions in some of
our markets, we are optimistic entering the third quarter with a
double-digit sales force size advantage. Our geographic and product
diversity coupled with our emerging market presence continues to act as a
natural hedge to help mitigate challenges we see in isolated markets."
"Our gross margin percentage remained strong in the quarter even with
the big increase in oil and natural gas prices. The 66% gross margin in
this year's second quarter was essentially in line with the prior year.
Given our relatively low cost of sales, to date we've been able to mitigate
the impact of rising resin costs. This reflects our product category mix of
35% consumables and 65% durables; the mix of the resins we use, with about
40% more highly engineered where there has been less cost pressure; pricing
in line with consumer inflation in each market; and managing our sales mix
given our price points and promotional strategies. Resins used in our
Tupperware products account for about 17% of our overall cost of goods sold
and about 6% of sales. Our current expectations for resin costs going
forward are factored into our raised earnings outlook for the remainder of
the year."
"We expect to continue to achieve local currency sales growth in the
second half of the year and have raised our full-year sales guidance range
by 1 point, now calling for an increase in sales in the 14% to 16% range
(7% to 9% in local currency). This includes full year mid-teen local
currency growth from the approximately 50% of our business that we generate
in emerging market economies and, on average, a low single digit growth
rate from the remainder of our business that comes from markets operating
in established economies."
"We are also raising our GAAP diluted earnings per share guidance range
to $2.54 to $2.59 versus our previous guidance of $2.44 to $2.54. This
reflects a 5 cent increase versus our previous guidance from higher profit
from our segments and a 1-point improvement in our tax rate. We're also
raising our adjusted full-year diluted earnings per share range today by 5
cents to $2.77 to $2.82 versus our previous guidance of $2.67 to $2.77.
We've also raised by $10 million our full-year expectation for cash flow
from operating activities, net of cash outflow from investing activities,
to $110 to $120 million." See detail in Non-GAAP Financial Measures Outlook
Reconciliation Schedule.
In the second quarter of 2008, diluted earnings per share was 56 cents,
equal with last year. This year's results included a non-cash impairment
charge related to purchase accounting intangibles of $9.0 million (13 cents
per share). Excluding this charge and certain other adjustment items
impacting comparability, earnings per share rose to 75 cents from 58 cents
in 2007, or 29% (15% in local currency). This diluted earnings per share
number was 8 cents above the high end of the guidance range given by the
Company in April from better than expected results in the Tupperware Europe
and Asia Pacific and Beauty Other segments and a lower tax rate. Versus
2007, stronger foreign currencies had a 7 cent positive impact on the
comparison, at the low end of the previous guidance range of 7 to 9 cents.
Profit from the segments rose 24% (15% in local currency). See detail in
Non-GAAP Financial Measures Reconciliation Schedule.
Tupperware Brands will conduct a conference call tomorrow, Thursday,
July 24, at 10:00 am Eastern time. The conference call will be webcast and
archived, along with a copy of this news release on
http://www.tupperwarebrands.com.
Second Quarter Segment Highlights*
Tupperware Segments
In Europe, second quarter sales rose by 25% (12% in local currency)
over the prior year. The positive sales force trends continued in the
emerging markets leading to 38% (32% in local currency) growth coming most
notably in Russia, Turkey and Tupperware South Africa. Established markets
grew 20% (4% in local currency) with Germany achieving a 2% local currency
sales increase, its third consecutive quarter of year-over-year
improvement. The total sales force size advantage for the whole segment at
the end of the quarter was 16%; which included an 11 percentage point
improvement in the quarter in the year-over-year sales force size
comparison in Germany, from -8% at the end of the first quarter to +3%. The
average active sales force for the segment was up 8%. Segment profit
increased 21% (9% in local currency) reflecting a slight decrease in return
on sales mainly from additional promotional investment in sales force
recruiting in Germany.
Asia Pacific achieved a 23% (13% in local currency) sales increase with
emerging markets up 36% (33% in local currency) led by strong double-digit
growth in Indonesia, Malaysia/Singapore and China. The established markets
were up 14% (-1% in local currency) reflecting lower sales in Japan
partially offset by a double-digit sales increase in Australia/New Zealand.
Total sale force was up 26% and the number of active sellers was up 14% led
by Indonesia, India and Malaysia/Singapore. Operating profit increased 48%
(35% in local currency), an improvement in return on sales of 3 percentage
points, primarily reflecting leverage from the higher sales in the emerging
markets.
Tupperware North America had 3% (1% in local currency) higher sales,
reflecting an increase in Mexico and a slight decrease in the U.S./Canadian
market. The quarter end total sales force size was up 7% versus the prior
year and active sellers in the segment were up 19%. There was a 12%
increase (9% in local currency) in operating profit primarily reflecting a
better gross margin percentage as a result of leverage from higher
production volume and sales mix.
Beauty Segments
In the Beauty North America segment, a 10% (6% in local currency) sales
increase reflected a low-double-digit increase by Fuller Mexico and a
low-single-digit increase by BeautiControl North America. Total sales force
size increased 7% coming primarily from Fuller Mexico. The active sales
force was up 10%. Segment profit was in line with last year (down 4% in
local currency), reflecting a lower return on sales, principally at
BeautiControl.
The Beauty Other segment achieved a 32% (21% in local currency) sales
increase, reflecting higher sales forces and sales throughout Central and
South America, most notably in Venezuela, Brazil and Argentina. The
Nutrimetics units were down slightly in local currency as a group. The
total sales force in the segment was up 10% and the active sales force was
up 9% in the quarter. The segment had a small loss of $0.4 million in the
quarter, versus a $3.4 million dollar loss in the prior year. The
improvement was primarily from the profit associated with higher sales in
Tupperware Brazil and Venezuela.
* Amounts discussed in Segment Highlights are on a GAAP basis including
purchase accounting amortization. See Non-GAAP Financial Measures
Reconciliation Schedule for information excluding this item.
Year to Date Results
For the first half of 2008 total company sales grew 19% (10% in local
currency) to $1.1 billion. The Tupperware brand segments grew 20% (10% in
local currency) and the Beauty brand segments by 16% (10% in local
currency). Businesses operating in emerging markets, comprising 49% of
total company sales, grew 25% (19% in local currency) and the remaining
businesses that operate in established markets grew 13% (2% in local
currency). The total sales force was 12% higher at the end of June versus
the prior year, and active sellers were up 10% for the year-to-date period.
Profit from the operating segments rose 26% (17% in local currency), driven
primarily by an increase in profit in the Tupperware Europe and Asia
Pacific segments led by the emerging markets, notably Russia, South Africa,
China and Indonesia, as well as the established markets of Australia and
France. Diluted earnings per share was $1.07, up 22% (6% in local
currency). Excluding certain adjustment items for the first half of 2008,
diluted earnings per share was $1.31, up 39% (23% in local currency).
2008 Outlook
The full year 2008 sales guidance is raised 1 percentage point compared
with April 2008, to an increase of 14 to 16% versus 2007 (7 to 9% increase
in local currency) and the GAAP diluted earnings per share outlook is
raised 5 cents and is expected to be $2.54 to $2.59, including a 23 to 25
cent benefit versus 2007 from stronger foreign currencies. Excluding
certain adjustment items full-year diluted earnings per share guidance is
also raised 5 cents to $2.77 to $2.82, up 12% to 14% in local currency
compared with 2007, versus 8 to 12% previously (see detail in the Non-GAAP
Financial Measures Outlook Reconciliation schedule). The new outlook
includes gains from property sales and insurance settlements in the second
half of the year, which offset the impact of the non-cash impairment charge
recorded in the second quarter, none of which were included in the
Company's previous full-year outlook.
Including the benefit of stronger foreign currencies, sales in the
Tupperware segments are expected to increase 15% to 17% and in the Beauty
segments to increase 12% to 14%. Both are expected to increase 7 to 9% in
local currency. The GAAP segment profit return on sales in the Tupperware
segments is expected to be even with, to slightly higher than, 2007. The
GAAP return on sales in the Beauty North America segment is expected to be
even with to slightly lower than 2007, and a small loss of less than the
purchase accounting amortization recorded in this segment is expected in
Beauty Other.
Third Quarter 2008 Outlook
Third quarter sales are projected to increase 13 to 15% (6 to 8% in
local currency) and GAAP diluted earnings per share is expected to be 39 to
44 cents versus 11 cents last year. Excluding certain adjustment items
diluted earnings per share is expected to be 37 to 42 cents versus 37 cents
last year. This includes a 5 to 6 cent benefit versus 2007 from stronger
foreign currencies, partially offset by an income tax rate about 11
percentage points higher than 2007, accounting for a negative impact on the
comparison of about 6 cents.
Rick Goings, Chairman and CEO of Tupperware Brands commented, "We
expect our portfolio of direct selling companies to continue to act as a
natural hedge to help offset negative trends that we might see in isolated
markets. While we can't control what has been going on in the world we can
help mitigate its impact on our businesses. The heavy lifting for sustained
growth is largely completed, we have established business units in all the
emerging markets with the highest potential, we have repositioned our
company from a durables direct selling company to a global portfolio of
direct selling companies and our flexible business model allows us to react
to changes within the market. All of these factors provide us confidence in
our improved outlook for sales and profit in 2008 and going forward."
Tupperware Brands Corporation is a portfolio of global direct selling
companies, selling premium innovative products across multiple brands and
categories through an independent sales force of 2.2 million. Product
brands and categories include design-centric preparation, storage and
serving solutions for the kitchen and home through the Tupperware brand and
beauty and personal care products for consumers through the Avroy Shlain,
BeautiControl, Fuller Cosmetics, NaturCare, Nutrimetics, Nuvo and
Swissgarde brands.
The Company's stock is listed on the New York Stock Exchange (NYSE:
TUP). Statements contained in this release, which are not historical fact
and use predictive words such as "outlook" or "target" are forward-looking
statements. These statements involve risks and uncertainties which include
recruiting and activity of the Company's independent sales forces, the
success of new product introductions and promotional programs, the ability
to obtain all government approvals on land sales, the success of buyers in
attracting tenants for commercial developments, the effects of economic and
political conditions generally and foreign exchange risk in particular and
other risks detailed in the Company's most recent periodic report as filed
in accordance with the Securities Exchange Act of 1934. The Company does
not intend to regularly update forward-looking information other than
through its quarterly earnings releases or in between such releases in the
event it expects earnings per share, excluding adjustment items, to be
significantly below its previous guidance.
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. The adjustment items materially impact the
comparability of the Company's results of operations. The adjusted
information is intended to be more indicative of Tupperware Brands' primary
operations, and to assist readers in evaluating performance and analyzing
trends across periods.
The non-GAAP financial measures exclude gains from the sale of
property, plant and equipment and insurance settlements; re-engineering
costs; purchase accounting intangible asset amortization; purchase
accounting intangible asset and goodwill impairment costs; and costs
associated with terminating the Company's previous credit agreement. While
the Company is engaged in a multi- year program to sell land adjacent to
its Orlando, Florida headquarters, and also disposes of other excess land
and facilities periodically, these activities are not part of the Company's
primary business operation. Additionally, gains recognized in any given
period are not indicative of gains which may be recognized in any
particular future period. For this reason, these gains are excluded as
indicated. Further, the Company excludes significant charges related to
casualty losses caused by significant weather events, fires or similar
circumstances. It also excludes any related gains resulting from the
settlement of associated insurance claims. While these types of events can
and do recur periodically, they are excluded from indicated financial
information due to their distinction from ongoing business operations,
inherent volatility and impact on the comparability of earnings across
quarters. Also, the Company periodically records exit costs as defined
under Statement of Financial Accounting Standards No. 146, "Accounting for
Costs
Associated with Exit or Disposal Activities" and other amounts related
to rationalizing manufacturing and other re-engineering activities, and
believes these amounts are similarly volatile and impact the comparability
of earnings across quarters. Therefore, they are also excluded from
indicated financial information to provide what the Company believes
represents a more useful measure for analysis and predictive purposes.
The Company has also elected to present financial measures excluding
the impact of amortizing the purchase accounting carrying value of certain
definite-lived intangible assets, primarily the value of independent sales
forces, recorded in connection with the Company's December 2005 acquisition
of the direct selling businesses of Sara Lee Corporation. The amortization
expense related to these assets will continue for several years; however,
based on the Company's current estimates, this amortization will decline
significantly as the years progress. Similarly in connection with its
evaluation of the carrying value of acquired intangible assets and goodwill
in the third quarter of 2007 and second quarter of 2008, the Company has
recognized impairment charges. The Company believes that these types of
non- cash charges will not be representative in any single year of amounts
recorded in prior years or expected to be recorded in future years.
Therefore, they are excluded from indicated financial information to also
provide a more useful measure for analysis and predictive purposes.
Finally, in the third quarter of 2007, the Company entered into a new
credit agreement, which triggered the non-cash write off of previously
deferred debt costs and costs associated with the settlement of
floating-to- fixed interest rate swaps that were hedging the borrowings
under the previous agreement. These costs are also not expected to be
incurred in most reporting periods and for comparison purposes have also
been excluded from the indicated financial information.
TUPPERWARE BRANDS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
June 28, June 30, June 28, June 30,
(In millions, except per share data) 2008 2007 2008 2007
Net sales $583.6 $492.9 $1,127.0 $949.8
Cost of products sold 199.3 167.6 394.1 328.8
Gross margin 384.3 325.3 732.9 621.0
Delivery, sales and administrative
expense 316.8 272.2 614.6 529.8
Re-engineering and impairment
charges 3.5 0.8 5.7 3.6
Impairment of goodwill and
intangible assets 9.0 - 9.0 -
Gains on disposal of assets 0.6 2.1 0.6 4.6
Operating income 55.6 54.4 104.2 92.2
Interest income 1.4 0.9 2.5 2.0
Interest expense 10.1 10.9 18.8 22.7
Other expense 0.7 0.6 2.1 1.5
Income before income taxes 46.2 43.8 85.8 70.0
Provision for income taxes 10.2 8.3 17.7 14.9
Net income $36.0 $35.5 $68.1 $55.1
Net income per common share:
Basic earnings per share: $0.59 $0.58 $1.11 $0.91
Diluted earnings per share: $0.56 $0.56 $1.07 $0.88
TUPPERWARE BRANDS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Amounts in millions, 13 Weeks 13 Weeks Reported Restated Foreign
except per share) Ended Ended % % Exchange
June 28, June 30, Inc (Dec) Inc (Dec) Impact
Net Sales:
Europe $203.3 $162.1 25 12 $19.9
Asia Pacific 85.6 69.4 23 13 6.2
TW North America 84.2 81.5 3 1 1.9
Beauty North America 134.0 122.1 10 6 3.9
Beauty Other 76.5 57.8 32 21 5.6
$583.6 $492.9 18 10 $37.5
Segment profit (loss):
Europe $29.9 $24.8 21 9 $2.6
Asia Pacific 17.2 11.6 48 35 1.1
TW North America 9.4 8.3 12 9 0.3
Beauty North America 20.1 20.1 0 (4) 0.9
Beauty Other (0.4) (3.4) (86) (87) (0.2)
76.2 61.4 24 15 $4.7
Unallocated expenses (9.4) (8.9) 7
Gains on disposal of
assets 0.6 2.1 (73)
Re-engineering and
impairment charges (3.5) (0.8) +
Impairment of goodwill
and intangible assets (9.0) - +
Interest expense, net (8.7) (10.0) (14)
Income before taxes 46.2 43.8 5
Provision for income
taxes 10.2 8.3 23
Net income $36.0 $35.5 1
Net income per common
share (diluted) $0.56 $0.56 0
Weighted Average number
of diluted shares 63.6 62.9
TUPPERWARE BRANDS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Amounts in millions, 26 Weeks 26 Weeks
except per share) Ended Ended Reported Restated Foreign
June 28, June 30, % % Exchange
2008 2007 Inc (Dec) Inc (Dec) Impact
Net Sales:
Europe $423.5 $340.5 24 11 $42.6
Asia Pacific 155.8 126.0 24 13 12.0
TW North America 153.7 144.1 7 4 3.3
Beauty North America 248.7 226.3 10 7 6.2
Beauty Other 145.3 112.9 29 16 12.5
$1,127.0 $949.8 19 10 $76.6
Segment profit (loss):
Europe $68.0 $53.6 27 14 $6.0
Asia Pacific 27.1 17.6 54 40 1.8
TW North America 12.4 9.5 30 26 0.3
Beauty North America 34.5 34.0 2 (2) 1.4
Beauty Other (6.0) (7.1) (15) (21) (0.5)
136.0 107.6 26 17 $9.0
Unallocated expenses (19.8) (17.9) 11
Gains on disposal of
assets 0.6 4.6 (87)
Re-engineering and
impairment charges (5.7) (3.6) 56
Impairment of goodwill
and intangible assets (9.0) - +
Interest expense, net (16.3) (20.7) (21)
Income before taxes 85.8 70.0 22
Provision for income
taxes 17.7 14.9 19
Net income $68.1 $55.1 24
Net income per common
share (diluted) $1.07 $0.88 22
Weighted Average number
of diluted shares 63.3 62.4
TUPPERWARE BRANDS CORPORATION
RECONCILIATION
(In millions except
per share data)
13 Weeks Ended 13 Weeks Ended
June 28, 2008 June 30, 2007
Excl Excl
Reported Adj's Adj's Reported Adj's Adj's
Segment profit (loss)
Europe $29.9 $0.1 a $30.0 $24.8 0.2 a $25.0
Asia Pacific 17.2 0.4 a 17.6 11.6 0.6 a 12.2
TW North America 9.4 - 9.4 8.3 8.3
Beauty North America 20.1 1.0 a 21.1 20.1 1.5 a 21.6
Beauty Other (0.4) 0.9 a 0.5 (3.4) 1.1 a (2.3)
76.2 2.4 78.6 61.4 3.4 64.8
Unallocated expenses (9.4) - (9.4) (8.9) (8.9)
Gain on disposal of assets 0.6 (0.6)b - 2.1 (2.1)b -
Re-eng and impairment chgs (3.5) 3.5 c - (0.8) 0.8 c -
Impairment of goodwill and
intangible assets (9.0) 9.0 d - - - -
Interest expense, net (8.7) (8.7) (10.0) (10.0)
Income before taxes 46.2 14.3 60.5 43.8 2.1 45.9
Provision for income taxes 10.2 2.4 e 12.6 8.3 0.8 e 9.1
Net income $36.0 $11.9 $47.9 $35.5 $1.3 $36.8
Net income per common share
(diluted) $0.56 $0.19 $0.75 $0.56 $0.02 $0.58
26 Weeks Ended 26 Weeks Ended
June 28, 2008 June 30, 2007
Excl Excl
Reported Adj's Adj's Reported Adj's Adj's
Segment profit (loss)
Europe $68.0 0.2 a $68.2 $53.6 0.5 a $54.1
Asia Pacific 27.1 0.8 a 27.9 17.6 1.1 a 18.7
TW North America 12.4 - 12.4 9.5 9.5
Beauty North America 34.5 1.9 a 36.4 34.0 3.0 a 37.0
Beauty Other (6.0) 1.8 a (4.2) (7.1) 2.1 a (5.0)
136.0 4.7 140.7 107.6 6.7 114.3
Unallocated expenses (19.8) - (19.8) (17.9) (17.9)
Gain on disposal of assets 0.6 (0.6)b - 4.6 (4.6)b -
Re-eng and impairment chgs (5.7) 5.7 c - (3.6) 3.6 c -
Impairment of goodwill and
intangible assets (9.0) 9.0 d - - - -
Interest expense, net (16.3) - (16.3) (20.7) (20.7)
Income before taxes 85.8 18.8 104.6 70.0 5.7 75.7
Provision for income taxes 17.7 3.6 e 21.3 14.9 1.9 e 16.8
Net income $68.1 $15.2 $83.3 $55.1 $3.8 $58.9
Net income per common share
(diluted) $1.07 $0.24 $1.31 $0.88 $0.06 $0.94
(a) Amortization of intangibles of acquired beauty units.
(b) Other income of $0.6 million for the second quarter 2008 was
insurance proceeds from flood damage in Indonesia. In the second quarter of
2007, there was a $2.1 million gain related to sale of excess land in
Australia. In addition, in 2007, a $2.5 million gain reported in the first
quarter related to insurance recovery from 2006 fire at a former
manufacturing facility in Tennessee
(c) The first six months of 2008 includes $0.3 million related to the
relocation of the Company's Belgium and BeautiControl manufacturing
facilities, $0.5 million impairment charge for obsolete software in the
South Africa beauty business, and $4.9 million for severance costs incurred
to reduce headcount in the Company's BeautiControl, Belgium, France,
Germany, Italy, Mexico, Malaysia, Netherlands and Philippines operations,
of which $3.5 million was incurred in the second quarter. The first half of
2007 includes $1.8 million related to the relocation of the Company's
BeautiControl manufacturing facility, $0.5 million for impairment charges
related to facilities in Japan and Philippines, and $1.3 million related to
severance costs incurred to reduce headcount in the Company's Australia,
Mexico, Japan, Philippines and Switzerland operations, of which $0.8
million was recorded in the second quarter.
(d) In the second quarter of 2008, the Company reviewed the value of
intangible assets of its acquired beauty businesses. As a result of this
review, its Nutrimetics and Naturcare tradenames were deemed to be
impaired, resulting in a non-cash impairment charge of $9.0 million.
(e) Provision for income taxes represents the net tax impact of
adjusted amounts.
See note regarding non-GAAP financial measures in the attached press
release.
TUPPERWARE BRANDS CORPORATION
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE
July 23, 2008
($ in millions, except per share amounts)
Full Year Full Year
2007 Actual 2008 Outlook
Range
Low High
Income before income taxes $141.4 $210.0 $214.0
% change from prior year 48% 51%
Income tax $24.5 $48.8 $49.5
Effective Rate 17% 23% 23%
Net Income (GAAP) $116.9 $161.2 $164.5
% change from prior year 38% 41%
Adjustments(1):
Gain on disposal of assets and
insurance settlements $(11.8) $(13.6) $(13.6)
Re-engineering costs 9.0 10.0 10.0
Acquired intangible asset
amortization 13.6 9.5 9.5
Purchase accounting intangibles
and impairment 11.3 9.0 9.0
Costs associated with implementing
new credit agreement 9.6
Income tax (2) (7.4) (0.8) (0.8)
Net Income (Adjusted) $141.2 $175.3 $178.6
% change from prior year 24% 26%
Exchange rate impact (3) 15.1 - -
Net Income (Adjusted and 2007
restated for currency changes) $156.3 $175.3 $178.6
% change from prior year 12% 14%
Net income (GAAP) per common share
(diluted) $1.87 $2.54 $2.59
Net Income (Adjusted) per common
share (diluted) $2.25 $2.77 $2.82
Average number of diluted shares
(millions) 62.6 63.4 63.4
(1) Refer to Non-GAAP Financial Measures section of attached release
for description of the general nature of adjustment items
(2) Represents income tax impact of adjustments
(3) 2007 restated at current currency exchange rates
TUPPERWARE BRANDS CORPORATION
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE
July 23, 2008
($ in millions, except per share amounts)
Third
Quarter Third Quarter
2007 Actual 2008 Outlook
Range
Low High
Income before income taxes $4.8 $33.6 $37.0
% change from prior year 600% 671%
Income tax $(2.0) $8.5 $9.1
Effective Rate -42% 25% 25%
Net Income (GAAP) $6.8 $25.1 $27.9
% change from prior year 269% 311%
Adjustments(1):
Gains on the disposal of assets
and insurance settlements $(5.5) $(5.6) $(5.6)
Re-engineering costs 3.0 1.2 1.2
Acquired intangible asset
amortization 3.4 2.4 2.4
Purchase accounting intangibles
and impairment 11.3
Costs associated with implementing
new credit agreement 9.6
Income tax (2) (5.1) 0.9 0.9
Net Income (Adjusted) $23.4 $23.8 $26.8
% change from prior year 2% 15%
Exchange rate impact (3) 3.0 - -
Net Income (Adjusted and 2007 restated
for currency changes) $26.4 $23.8 $26.8
% change from prior year -10% 2%
Net income (GAAP) per common share
(diluted) $0.11 $0.39 $0.44
Net Income (Adjusted) per common share
(diluted) $0.37 $0.37 $0.42
Average number of diluted shares
(millions) 62.9 63.6 63.6
(1) Refer to Non-GAAP Financial Measures section of attached release for
description of the general nature of adjustment items
(2) Represents income tax impact of adjustments
(3) 2007 restated at current currency exchange rates
TUPPERWARE BRANDS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
Jun. 28, Dec. 29,
(In millions) 2008 2007
Assets
Cash and cash equivalents $89.8 $102.7
Other current assets 665.3 596.8
Total current assets 755.1 699.5
Property, plant and equipment, net 274.8 266.0
Other assets 943.5 903.2
Total assets $1,973.4 $1,868.7
Liabilities and Shareholders' Equity
Short-term borrowings and current portion
of long-term debt $21.5 $3.5
Accounts payable and other current
liabilities 453.3 446.8
Total current liabilities 474.8 450.3
Long-term debt 591.5 589.8
Other liabilities 297.4 305.9
Total shareholders' equity 609.7 522.7
Total liabilities and shareholders'
equity $1,973.4 $1,868.7
Total Debt to Capital Ratio 50%
Capital is defined as total debt plus
shareholders' equity
TUPPERWARE BRANDS CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
26 weeks ended 26 weeks ended
June 28, June 30,
(In millions) 2008 2007
OPERATING ACTIVITIES
Net cash provided by operating activities $5.4 $63.8
INVESTING ACTIVITIES
Capital expenditures (24.4) (19.2)
Proceeds from disposal of property,
plant & equipment 2.4 4.6
Proceeds from insurance settlements 7.5 3.7
Net cash used in investing activities (14.5) (10.9)
FINANCING ACTIVITIES
Dividend payments to shareholders (27.1) (26.7)
Payments to acquire treasury stock (7.3) -
Repayment of long-term debt and
capital lease obligations (1.8) (68.2)
Net change in short-term debt 15.7 -
Other, net 13.6 24.5
Net cash used in financing activities (6.9) (70.4)
Effect of exchange rate changes on cash and
cash equivalents 3.1 1.1
Net change in cash and cash equivalents (12.9) (16.4)
Cash and cash equivalents at beginning
of year 102.7 102.2
Cash and cash equivalents at end of period $89.8 $85.8
TUPPERWARE BRANDS CORPORATION
SUPPLEMENTAL INFORMATION
Second Quarter Ended June 28, 2008
Sales Force Statistics (a):
Segment AVG. ACTIVE % CHG. TOTAL % CHG.
Europe 105,365 8 475,603 16
Asia Pacific 43,837 14 344,892 26
TW North America 86,252 19 233,902 7
Tupperware 235,454 13 1,054,397 17
Beauty North America 376,403 10 641,891 7
Beauty Other 243,386 9 534,462 10
Beauty 619,789 9 1,176,353 8
Total 855,243 10 2,230,750 12
(a) As collected by the Company and provided by distributors and sales
force.
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