U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter ended June 28, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
Commission file number 0-8251
ADOLPH COORS COMPANY
(Exact name of registrant as specified in its charter)
COLORADO 84-0178360
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Golden, Colorado 80401
(Address of principal executive offices) (Zip Code)
303-279-6565
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
Class B Common Stock (non-voting), no par value
(Title of class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
YES [X] NO [ ]
State the aggregate market value of the voting stock held by
non-affiliates of the registrant: All voting shares are held by
Adolph Coors, Jr. Trust.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of August 7, 1998:
Class A Common Stock - 1,260,000 shares
Class B Common Stock - 35,041,066 shares
PART I. FINANCIAL INFORMATION (UNAUDITED)
Item 1. Financial Statements
ADOLPH COORS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Thirteen weeks ended
June 28, June 29,
1998 1997
(In thousands, except per share data)
Sales - domestic and international $654,893 $629,853
Less: beer excise taxes 112,949 109,268
Net sales 541,944 520,585
Cost of goods sold 309,347 303,133
Gross profit 232,597 217,452
Marketing, general and administrative 167,944 157,733
Special (credit) charge - net -- (32,515)
Operating income 64,653 92,234
Other (income) expense - net (163) 400
Income before income taxes 64,816 91,834
Income tax expense 25,278 40,816
Net income 39,538 51,018
Other comprehensive (income) expense, net of tax:
Foreign currency translation adjustments (237) 701
Unrealized gain on available-for-sale
securities (204) --
Comprehensive income $ 39,979 $ 50,317
Net income per common share - basic $ 1.09 $ 1.37
Net income per common share - diluted $ 1.06 $ 1.34
Weighted average number of outstanding
common shares - basic 36,158 37,234
Weighted average number of outstanding
common shares - diluted 37,320 38,014
Cash dividends declared and paid per
common share $ 0.150 $ 0.125
See notes to consolidated financial statements.
ADOLPH COORS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Twenty-six weeks ended
June 28, June 29,
1998 1997
(In thousands, except per share data)
Sales - domestic and international $1,155,907 $1,113,014
Less: beer excise taxes 199,818 193,648
Net sales 956,089 919,366
Cost of goods sold 571,274 559,334
Gross profit 384,815 360,032
Marketing, general and administrative 305,166 284,964
Special (credit) charge - net -- (31,517)
Operating income 79,649 106,585
Other (income) expense - net (1,210) 1,115
Income before income taxes 80,859 105,470
Income tax expense 31,535 46,407
Net income 49,324 59,063
Other comprehensive (income) expense, net of tax:
Foreign currency translation adjustments 867 3,474
Unrealized gain on available-for-sale
securities (204) --
Comprehensive income $ 48,661 $ 55,589
Net income per common share - basic $ 1.36 $ 1.58
Net income per common share - diluted $ 1.32 $ 1.55
Weighted average number of outstanding
common shares - basic 36,288 37,473
Weighted average number of outstanding
common shares - diluted 37,368 38,042
Cash dividends declared and paid per
common share $ 0.300 $ 0.250
See notes to consolidated financial statements.
ADOLPH COORS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 28, December 28,
1998 1997
(In thousands)
Assets
Current assets:
Cash and cash equivalents $ 192,905 $ 168,875
Short-term marketable investments 39,032 42,163
Accounts and notes receivable, net 153,676 124,485
Inventories:
Finished 44,807 44,729
In process 23,981 20,119
Raw materials 14,601 35,654
Packaging materials 6,434 5,977
Total inventories 89,823 106,479
Other assets 65,831 75,192
Total current assets 541,267 517,194
Properties, at cost and net 711,950 733,117
Long-term marketable investments 28,258 47,100
Other assets 124,969 114,672
Total assets $ 1,406,444 $ 1,412,083
See notes to consolidated financial statements.
ADOLPH COORS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 28, December 28,
1998 1997
(In thousands)
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 140,639 $ 131,936
Accrued expenses and other liabilities 198,719 199,710
Current portion of long-term debt 25,000 27,500
Total current liabilities 364,358 359,146
Long-term debt 120,000 145,000
Deferred tax liability 72,830 76,219
Other long-term liabilities 94,089 95,150
Total liabilities 651,277 675,515
Shareholders' equity:
Capital stock:
Preferred stock, non-voting, $1 par
value (authorized: 25,000,000 shares;
issued: none) -- --
Class A common stock, voting, $1 par value
(authorized and issued: 1,260,000 shares) 1,260 1,260
Class B common stock, non-voting, no par
value, $0.24 stated value (authorized:
100,000,000 shares; issued: 35,031,926 in
1998 and 35,883,833 in 1997) 8,341 8,476
Total capital stock 9,601 9,736
Paid-in capital 175 --
Retained earnings 749,850 730,628
Accumulated other comprehensive income (4,459) (3,796)
Total shareholders' equity 755,167 736,568
Total liabilities and shareholders' equity $ 1,406,444 $ 1,412,083
See notes to consolidated financial statements.
ADOLPH COORS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Twenty-six weeks ended
June 28, June 29,
1998 1997
(In thousands)
Cash flows from operating activities:
Net income $ 49,324 $ 59,063
Adjustments to reconcile net income to net
cash provided by operating activities:
Equity in net earnings of joint ventures (16,526) (9,590)
Reserve for joint venture investment -- 22,378
Depreciation and amortization 57,771 59,163
Loss on sale or abandonment of
properties 1,462 3,752
Impairment charge -- 10,595
Deferred income taxes (3,159) (6,304)
Change in current assets and current
liabilities 6,781 29,586
Net cash provided by operating
activities 95,653 168,643
Cash flows from investing activities:
Purchases of investments (13,165) (41,856)
Sales and maturities of investments 35,342 7,995
Capital expenditures (37,439) (22,414)
Proceeds from sales of properties 404 2,479
Distributions from joint ventures 4,969 703
Other (343) (848)
Net cash used in investing activities (10,232) (53,941)
Cash flows from financing activities:
Issuances of stock under stock plans 2,814 7,382
Purchases of stock (25,582) (30,095)
Dividends paid (10,920) (9,409)
Payment of current portion of long-term debt (27,500) (14,000)
Other (76) --
Net cash used in financing activities (61,264) (46,122)
Cash and cash equivalents:
Net increase in cash and cash equivalents 24,157 68,580
Effect of exchange rate changes on
cash and cash equivalents (127) (984)
Balance at beginning of year 168,875 110,905
Balance at end of quarter $ 192,905 $ 178,501
See notes to consolidated financial statements.
ADOLPH COORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 28, 1998
1. BUSINESS
Founded in 1873 and incorporated in Colorado in 1913, Adolph
Coors Company (ACC or the Company) is the holding company for
Coors Brewing Company (CBC), the third-largest U.S. brewer.
2. SIGNIFICANT ACCOUNTING POLICIES
Unaudited consolidated financial statements - In the opinion of management,
the accompanying unaudited financial statements reflect all adjustments,
consisting only of normal recurring accruals, which are necessary for a
fair presentation of the financial position of the Company at June 28, 1998,
and the results of its operations for the thirteen and twenty-six weeks
ended June 28, 1998. The accompanying financial statements include the
accounts of ACC, CBC and the majority-owned and controlled domestic and
foreign subsidiaries of both ACC and CBC. All significant intercompany
transactions and balances have been eliminated in consolidation. These
financial statements should be read in conjunction with the notes to the
consolidated financial statements contained in the Company's Form 10-K for
the year ended December 28, 1997.
Statements of cash flows - Cash paid for interest for the six months ended June
28, 1998, and June 29, 1997, was $7.6 million and $8.3 million, respectively.
Cash paid for income taxes for the six months ended June 28, 1998, and June 29,
1997, was $22.3 million and $12.6 million, respectively. During the six-month
periods ended June 28, 1998, and June 29, 1997, ACC issued restricted common
stock under its management incentive program resulting in non-cash increases to
the equity accounts of $2.5 million and $0.8 million, respectively.
Reclassifications - Certain reclassifications have been made to the 1997
financial statements to conform with the 1998 presentation.
3. COMMITMENTS AND CONTINGENCIES
In July 1998, the Company announced a long-term sponsorship and promotion
agreement with the owners of the Pepsi Center, aproposed arena in Denver,
Colorado, which will be the future home of two of the city's professional
sports teams. With the addition of this agreement, the Company's total
commitments for advertising and promotions at sports arenas, stadiums, and
other venues and events are approximately $97 million over the next ten years.
4. YEAR 2000 (Unaudited)
ACC recognizes the need to ensure that its operations will not be adversely
impacted by Year 2000 software failures. The Company is addressing this issue
to ensure the availability and integrity of its financial systems and the
reliability of its operational systems. ACC has established processes for
evaluating and managing the risks and costs associated with this problem. The
Company has made and will continue to make certain investments in its
information systems and applications to ensure that they are Year 2000
compliant. The financial impact to ACC is anticipated to be in the range of
$10 million to $15 million for each of fiscal years 1998 and 1999.
Project-to-date, the Company has spent approximately $7.3 million on Year 2000
remediation efforts. In addition, ACC is working with its suppliers and
customers to ensure their compliance with Year 2000 issues in order to avoid
any interruptions in its business. While ACC does not at this time anticipate
significant problems with suppliers or customers, it is developing appropriate
plans with these third parties.
5. EARNINGS PER SHARE (EPS)
Basic and diluted net income per common share were arrived at
using the calculations outlined below:
Thirteen weeks ended Twenty-six weeks ended
June 28, June 29, June 28, June 29,
1998 1997 1998 1997
(In thousands, except per share data)
Net income available to
common shareholders $39,538 $51,018 $49,324 $59,063
Weighted average shares
for basic EPS 36,158 37,234 36,288 37,473
Basic EPS $1.09 $1.37 $1.36 $1.58
Effect of dilutive securities:
Stock options 1,030 688 957 487
Contingent shares not included
in shares outstanding
for basic EPS 132 92 123 82
Weighted average shares
for diluted EPS 37,320 38,014 37,368 38,042
Diluted EPS $1.06 $1.34 $1.32 $1.55
The dilutive effects of stock options were determined by applying
the treasury stock method, assuming the Company were to purchase
common shares with the proceeds from stock option exercises.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Special (Credit) Charge
The Company recorded no special items during the second quarter of 1998. In
the second quarter of 1997, ACC recorded a net special credit of $32.5 million,
which is composed of the following items: a $71.5 million payment from Molson
Breweries (Molson) to settle legal disputes with ACC, less approximately
$2.2 million in related legal expenses; a $22.4 million reserve related to
the recoverability of CBC's investment in Jinro-Coors Brewing Company (JCBC);
and a $14.4 million charge related to CBC's brewery in Zaragoza, Spain, for the
impairment of certain long-lived assets and goodwill and for severance costs
for a limited workforce reduction.
The Company's operating results including and excluding these
special items is summarized as follows:
Thirteen weeks ended Twenty-six weeks ended
June 28, June 29, June 28, June 29,
1998 1997 1998 1997
(In thousands, except per share data)
Operating income:
As reported $64,653 $92,234 $79,649 $106,585
Excluding special items 64,653 59,719 79,649 75,068
Net income:
As reported 39,538 51,018 49,324 59,063
Excluding special items 39,538 36,456 49,324 45,111
Earnings per share:
As reported - basic $ 1.09 $1.37 $1.36 $1.58
- diluted $ 1.06 $1.34 $1.32 $1.55
Excluding special items - basic $ 1.09 $0.98 $1.36 $1.20
- diluted $ 1.06 $0.96 $1.32 $1.19
Consolidated Results of Continuing Operations (Excluding Special Items)
Sales and volume - ACC reported net sales of $541.9 million and $956.1 million
for the second quarter and first half of 1998, respectively, representing
increases of 4.1% and 4.0% over the same periods of 1997. Net sales for the
three months ended June 28, 1998, were impacted favorably by a unit volume
increase of 3.8%; CBC sold 6,036,000 barrels of malt beverages in the second
quarter of 1998 compared to sales of 5,814,000 barrels in the second quarter
of 1997. Net sales for the three months ended June 28, 1998, were also impacted
favorably by higher export sales, which generate greater net revenue per barrel
than domestic volume. These positive factors were partially offset by slightly
lower domestic net pricing realization and lower Canadian income as a result
of the new partnership agreement between ACC and Molson, which yields less
income to ACC than the interim agreement that was in effect during 1997. Net
sales for the six months ended June 28, 1998, were impacted by essentially the
same factors, with unit volume up 4.1% over the same period of 1997.
Gross profit - Gross profit in the second quarter of 1998 rose 7.0% to $232.6
million over the second quarter of 1997, while gross profit in the first half
of 1998 rose 6.9% to $384.8 million, compared to the same period of 1997. As
a percentage of net sales, gross profit increased to 42.9% and 40.2% in the
second quarter and first half of 1998, respectively, from 41.8% and 39.2% for
the same periods a year earlier. These improvements were attributable to the
increases in net sales, as discussed above, offset by significantly smaller
increases versus the prior year in cost of goods sold of 2.0% in the second
quarter of 1998 and 2.1% in the first half of 1998. Cost of goods sold
increased as a result of higher sales volume and higher costs of packaging
materials. These factors were partially offset by the favorable impact of
increased absorption of costs as a result of higher production levels and
distribution and shipping efficiencies.
Operating income - Operating income was $64.7 million and $79.6 million for
the second quarter and first half of 1998, respectively, compared to $59.7
million and $75.1 million for the same periods a year earlier. These increases
were primarily due to the increases in gross profit, as discussed above,
offset in part by increases in marketing, general and administrative
expenses. Marketing, general and administrative expenses rose because of
greater spending for advertising and costs related to the Year 2000 issue.
Non-operating income and expense - Net non-operating income for the second
quarter and first half of 1998 improved from the same periods of 1997
primarily because of reductions in net interest expense. The decrease in net
interest expense in 1998 compared to 1997 was attributable to lower outstanding
principal balances of ACC's medium-term notes and increased interest income as
a result of higher cash and investment balances. The favorable impact of
net interest expense was offset by lower royalty income.
Effective tax rate - The consolidated effective tax rate for both
the second quarter and first half of both 1998 and 1997 was 39.0%.
Net income - Net earnings for the second quarter and first half of 1998
were $39.5 million, or $1.09 per basic share ($1.06 per diluted share), and
$49.3 million, or $1.36 per basic share ($1.32 per diluted share),
respectively. This compares to net earnings of $36.5 million, or $0.98 per
basic share ($0.96 per diluted share), and $45.1 million, or $1.20 per basic
share ($1.19 per diluted share), respectively, for the second quarter
and first half of 1997.
Liquidity and Capital Resources
Liquidity - The Company's primary sources of liquidity are cash provided by
operating activities and external borrowings. As of June 28, 1998, ACC had
working capital of $176.9 million, and its net cash position was $192.9 million
compared to $168.9 million as of December 28, 1997. In addition to its cash
resources, ACC had short-term, highly liquid investments of $39.0 million at
June 28, 1998, compared to $42.2 million at December 28, 1997. ACC also had
$28.3 million of marketable securities with maturities exceeding one year at
June 28, 1998, compared to $47.1 million at December 28, 1997. The Company
believes that cash flows from operations and short-term borrowings will be
sufficient to meet its ongoing operating requirements, scheduled principal and
interest payments on indebtedness, dividend payments, anticipated capital
expenditures and potential repurchases of its common stock under the
previously-announced stock repurchase plan.
Operating activities - Net cash provided by operating activities was $95.7
million for the first half of 1998 compared to $168.6 million for the first
half of 1997. Cash flow from operating activities in the second quarter of
1997 included approximately $68 million (net of certain withholdings) related
to a payment in settlement of a dispute with Molson.
Investing activities - During the first six months of 1998, ACC spent $10.2
million on net investing activities compared to $53.9 million for the first
six months of 1997. The net impact of ACC's marketable investment activities
was a cash inflow of $22.2 million during the first half of 1998, compared to
an outflow of $33.9 million during the same period of 1997, resulting in a
larger share of ACC's cash and marketable securities having current maturities.
Capital expenditures increased to $37.4 million for the six months ended June
28, 1998, from $22.4 million a year earlier.
Financing activities - ACC spent $61.3 million on financing activities during
the six months ended June 28, 1998, primarily on purchases of Class B common
stock under the stock repurchase program of $21.7 million, dividend payments
of $10.9 million and principal payments on its debt of $27.5 million.
Cautionary Statement Pursuant to Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995
This report contains "forward-looking statements" within the meaning of the
federal securities laws. These forward-looking statements may include, among
others, statements concerning the Company's outlook for 1998; overall volume
trends; pricing trends and industry forces; cost reduction strategies and
their results; the Company's expectations for funding its 1998 capital
expenditures and operations; the Company's expectations for funding work on
computer software to make it compliant with Year 2000; and other statements
of expectations, beliefs, future plans and strategies, anticipated events or
trends and similar expressions concerning matters that are not historical
facts. These forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those expressed in
or implied by the statements.
To improve its financial performance, the Company must grow premium beverage
volume, achieve modest price increases for its products and reduce its overall
cost structure. The most important factors that could influence the
achievement of these goals -- and cause actual results to differ materially
from those expressed in the forward-looking statements -- include, but are
not limited to, the following:
- - the inability of the Company and its distributors to develop and execute
effective marketing and sales strategies for Coors products;
- - the potential erosion of sales revenues through discounting or a higher
proportion of sales in value-packs;
- - a potential shift in consumer preferences toward lower-priced products;
- - a potential shift in consumer preferences away from the premium light beer
category, including Coors Light;
- - the intensely competitive, slow-growth nature of the beer industry;
- - demographic trends and social attitudes that can reduce beer sales;
- - the continued growth in the popularity of imports and other specialty beers;
- - increases in the cost of aluminum, paper packaging and other raw materials;
- - the Company's inability to reduce manufacturing, freight and overhead costs
to more competitive levels;
- - changes in significant laws and government regulations affecting
environmental compliance and income taxes;
- - the inability to achieve targeted improvements in CBC's distribution system;
- - the imposition of restrictions on advertising (e.g., media, outdoor ads or
sponsorships);
- - labor issues, including union activities that could require a substantial
increase in cost of goods sold or lead to a strike;
- - significant increases in federal, state or local beer or other excise taxes;
- - increases in rail transportation rates or interruptions of rail service;
- - the potential impact of industry consolidation;
- - risks associated with investments and operations in foreign countries,
including those related to foreign regulatory requirements; exchange rate
fluctuations and local political, social and economic factors; and
- - the risk that computer systems of the Company or its significant suppliers
and customers may not be Year 2000 compliant.
These and other risks and uncertainties affecting the Company are
discussed in greater detail in the Company's 1997 Form 10-K filed
with the Securities and Exchange Commission.
Outlook
The Company's performance in the first half of 1998 benefited from domestic
and export volume gains, which are expected to continue throughout 1998.
However, the pricing environment is expected to continue to be extremely
competitive, restraining expectations of net sales per barrel. Also, increased
value-pack activity may have an unfavorable impact on top-line performance
due to lower margins.
Income from the Company's Canadian business is expected to be 25% to 30% lower
per barrel in 1998 than in 1997, based on current sales trends and 1998 plans
for marketing investments. Revenue received under the Company's interim
agreement with Molson Breweries of Canada, Ltd., which expired at year-end
1997, provided higher earnings per barrel than those expected as a result of
the partnership with The Molson Companies Ltd. On the other hand, the partner
of the Coors Canada Partnership sees considerable growth potential for Coors
products in Canada in the future.
For fiscal year 1998, raw material costs, including commodities and packaging
costs, are expected to be up slightly, but fixed costs and freight costs are
expected to be down slightly. Significant changes in market prices for these
items could alter this outlook. CBC continues to pursue improvements in its
operations and technology functions to achieve cost reductions over time.
Advertising and other general and administrative costs are expected to increase
but at a lower rate than in 1997. This plan could change as management
continues to monitor CBC's market opportunities and to invest behind its brands
and sales efforts accordingly.
See the item titled "Year 2000" under "Contingencies" below for a
discussion of the expected financial impact of this issue.
Net interest is expected to improve in 1998 based on CBC's more favorable cash
position and its lower outstanding debt relative to its 1997 financial
position. However, improvements year-over-year in interest income should
flatten in the second half of the year as cash balances become more comparable
as a result of the Molson award late in the second quarter of 1997. Net
interest could be less favorable than expected if the Company invests a
substantial portion of its cash balances in non-interest-bearing assets with
longer-term returns. Additional outstanding common stock may be repurchased in
1998 as approved by the ACC board of directors in November 1997.
The effective tax rate for the rest of 1998 is not expected to differ
significantly from the rate applied to income during the first half of the
year. The level and mix of pretax income for 1998 could affect the actual
rate for the year.
In 1998, CBC has planned capital expenditures (including contributions to its
container joint ventures for capital improvements, which will be recorded on
the books of the joint ventures) in the range of $75 to $85 million. In
addition to CBC's 1998 planned capital expenditures, incremental strategic
investments will be considered on a case-by-case basis.
CONTINGENCIES
Year 2000 - ACC recognizes the need to ensure that its operations will not
be adversely impacted by Year 2000 software failures. The Company is addressing
this issue to ensure the availability and integrity of its financial systems
and the reliability of its operational systems. ACC has established processes
for evaluating and managing the risks and costs associated with this problem.
The Company has made and will continue to make certain investments in its
information systems and applications to ensure that they are Year 2000
compliant. The financial impact to ACC is anticipated to be in the range of
$10 million to $15 million for each of fiscal years 1998 and 1999. Project-
to-date, the Company has spent approximately $7.3 million on Year 2000
remediation efforts. In addition, ACC is working with its suppliers and
customers to ensure their compliance with Year 2000 issues in order to avoid
any interruptions in its business. While ACC does not at this time anticipate
significant problems with suppliers or customers, it is developing appropriate
plans with these third parties.
Labor issues - The United Auto Workers (UAW) has been engaged in an effort to
organize and represent employees at the Golden brewery. Hearings were held
with the National Labor Relations Board (NLRB) to determine whether the UAW's
organizing efforts could take place only in the Company's brewing unit or in
the Company's larger, integrated unit of brewery, can manufacturing, end
manufacturing and glass manufacturing. The larger, integrated unit is the
recognized unit in an existing agreement with the AFL-CIO, with whom the UAW
is affiliated.
On June 5, 1998, the NLRB upheld the Company's position that Coors is an
integrated unit. As a result, the current UAW petition for election has been
dismissed. The UAW appealed the NLRB's decision in early June of 1998 and the
Company responded by filing an appeal objection.
As the NLRB has no definitive timeline for its decision, the Company cannot
predict when a decision on the appeal will be made.
ACCOUNTING CHANGES
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133 "Accounting for Derivative Instruments
and Hedging Activities" (FAS 133). FAS 133 requires all derivatives be
recognized as either assets or liabilities in the statement of financial
position and requires that those assets and liabilities be measured at fair
value. FAS 133 is effective for all fiscal quarters of fiscal years beginning
after June 15, 1999. Early application of all provisions of this statement is
permitted but only as of the beginning of any fiscal quarter beginning after
issuance of the statement. Adoption of FAS 133 is not expected to have a
significant impact on the Company's financial position or results of
operations. The Company currently plans to adopt FAS 133 beginning with the
first quarter of fiscal year 1999.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
No significant legal proceedings.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None
(b) Reports on Form 8-K
None for the quarter ended June 28, 1998.
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 thereunto duly authorized.
ADOLPH COORS COMPANY
By /s/ Timothy V. Wolf
Timothy V. Wolf
Vice President and
Chief Financial Officer
(Principal Financial Officer)
(Principal Accounting Officer)
August 12, 1998