Exhibit 99.1
Tupperware Reports First Quarter EPS of 25 Cents,
an Increase of 127 Percent From Last Year
ORLANDO, Fla., April 20 /PRNewswire-FirstCall/ -- Tupperware Corporation
(NYSE: TUP) announced today that net income for the first quarter of 2004 was
$14.5 million or 25 cents per share, an increase of 127 percent from 2003.
The 2004 results included two cents from a gain on land development and 12
cents from both lower hedging costs and a positive impact of stronger foreign
currencies compared with the first quarter of 2003. First quarter 2003 net
income was $6.4 million or 11 cents per share.
Sales were $296.4 million, a nine percent increase from last year.
Excluding the impact of foreign currency, sales were flat compared with prior
year.
"Europe, Latin America and BeautiControl North America had improved
operating results," said Rick Goings, Chairman and Chief Executive Officer.
"Additionally, we had growth in emerging markets and beauty, indicating good
progress on these strategic initiatives," Goings continued.
The balance sheet improved compared with the first quarter of last year
primarily due to a reduction in receivables, which along with increased net
income, contributed to a $29 million year-over-year improvement in cash
provided by operating activities. The net-debt-to-total capital ratio
improved from March 2003 by 13 percentage points to 49 percent.
Tupperware will conduct a conference call on Wednesday, April 21, 2004, at
10:00 am Eastern time. The conference call will be simulcast and archived,
along with a copy of this news release, at www.Tupperware.com.
First Quarter Segment Highlights
Europe
Sales were $161.5 million, up 19 percent over last year. Excluding the
impact of foreign currency on the comparison, sales were up three percent or
$4.8 million due to a sales force and average active sales force size
advantage of 15 percent over the first quarter of the prior year. Germany
continued to be strong along with Italy, the Netherlands, South Africa and all
three of the primary emerging markets, Poland, Russia and Turkey.
Profit was $36.1 million compared with $29.5 million last year, a 22
percent increase. Excluding a $4.5 million positive foreign currency impact
on the comparison, profit improved $2.1 million or six percent.
The expectation for 2004 remains positive as the sales force and average
active sales force size advantage, along with effective promotional and
operating cost management, should lead to an increase in sales and profit.
North America
Sales were $45.4 million, down 19 percent from last year primarily due to
a 24 percent decline from prior year in the average active sales force and the
absence of sales to Target. The decline in sales resulted in a loss of $12.5
million in 2004 compared with $7.7 million in the 2003 quarter.
North America is expected to have a significant loss in 2004. Although
the cost savings initiatives announced in 2003 are being realized and further
opportunities are being identified, continuing declines in sales and
additional investments to refresh the party and opportunity and grow the sales
force are a drag on profitability.
Asia Pacific
Sales were $42.0 million, up eight percent or $3.0 million from last year,
and profit was $0.6 million, down $0.5 million from the prior year.
Local currency sales declined two percent, and profit in local currency
was down $0.8 million compared with last year.
Many markets in Asia Pacific performed well including Malaysia/Singapore,
Australia, China and India. Additionally, both Korea and the Philippines had
positive profit comparisons with prior year. Sales in Japan, the largest
market in the segment, were down in the first quarter along with Indonesia,
but strong efforts are in place to build active sellers in these markets.
For the full year, Asia Pacific is expected to contribute sales and profit
improvements.
Latin America
Latin America continued with positive comparisons delivering sales of
$22.9 million, up 12 percent or $2.4 million compared with prior year due to
improved sales force productivity.
Profit was $0.7 million, up $2.7 million from prior year. Profit
increased more than sales due to lower promotion and distribution expenses
along with better capacity utilization.
Trends have been improving in Mexico as well as Brazil and Venezuela.
These improvements lead to an expectation that for the full year there will be
an improvement versus 2003 in sales and even more in profit due to prior cost
reductions.
BeautiControl North America
Sales were $24.6 million, up 18 percent from last year due to total sales
force and average active sales force growth of 23 percent.
The impact of $2.5 million of costs associated with executive retirement
and an accrual for legal matters resulted in a loss of $0.5 million.
Excluding these items, profit was up 35 percent.
The current sales force size advantage bodes well for continuing sales and
profit growth in BeautiControl throughout 2004.
Outlook
The full-year 2004 outlook for the total company is for mid-single-digit
growth in sales. Excluding the positive impact of foreign currency, the
expectation is for sales to be about flat with 2003.
The outlook for earnings per share is raised five cents to $1.28-1.38,
reflecting a higher expectation for pending gains on land development, which
will increase to eleven to thirteen cents. These gains will be partially
offset by six to seven cents related to rationalizing manufacturing. Compared
with 2003, the earnings outlook for 2004 includes 15 cents positive impact
from foreign currency at March 2004 rates and 18 cents from lower hedging
costs.
For the second quarter of 2004, the outlook for sales is a low-single-
digit increase. Excluding the positive impact of foreign currency, sales are
expected to decrease low-single-digit.
Net income and earnings per share for the second quarter are expected to
increase significantly primarily due to higher segment profit from Europe and
BeautiControl, lower hedging costs and the impact of stronger foreign
currencies. Additionally, the second quarter is expected to include the six
to seven cents of costs related to rationalizing manufacturing. The
combination of these items results in second quarter earnings of between 21
and 23 percent of annual earnings.
Tupperware Corporation, a $1.2 billion multinational company, is one of
the world's leading direct sellers, supplying premium food storage,
preparation and serving items to consumers in more than 100 countries through
its Tupperware brand. In partnership with nearly one million independent
sales consultants worldwide, Tupperware reaches consumers through informative
and entertaining home parties; retail access points in malls and other
convenient venues; corporate and sales force Internet web sites; and
television shopping. Additionally, premium beauty and skin care products are
brought to customers through its BeautiControl brand in North America, Latin
America and Asia Pacific. Consumers can access the brands' web sites at
www.tupperware.com and www.beauticontrol.com.
Tupperware 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 development, 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 report on Form
8-K dated April 10, 2001, as filed with the Securities and Exchange
Commission.
TUPPERWARE CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
13 Weeks Ended
Mar 27, Mar 29,
(In millions, except per share data) 2004 2003
Net sales $296.4 $271.5
Cost of products sold 100.1 89.3
Gross margin 196.3 182.2
Delivery, sales and administrative expense 176.8 164.8
Gains on disposal of assets 1.4 --
Operating income 20.9 17.4
Interest income 0.5 0.6
Other income 0.3 --
Interest expense 3.2 5.0
Other expense -- 4.8
Income before income taxes 18.5 8.2
Provision for income taxes 4.0 1.8
Net income $14.5 $6.4
Net income per common share:
Basic $0.25 $0.11
Diluted $0.25 $0.11
TUPPERWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(Dollars in millions, except per share)
13 Weeks Ended Reported Restated Foreign
Mar 27, Mar 29, % % Exchange
2004 2003 Inc (Dec) Inc (Dec) Impact
SALES
Europe $161.5 $135.3 19 % 3 % $21.4
Asia Pacific 42.0 39.0 8 (2) 3.9
Latin America 22.9 20.5 12 12 --
North America 45.4 55.7 (19) (19) 0.4
BeautiControl
North America 24.6 21.0 18 17 --
$296.4 $271.5 9 -- $25.7
SEGMENT PROFIT (LOSS)
Europe $36.1 $29.5 22 6 $4.5
Asia Pacific 0.6 1.1 (43) (54) 0.3
Latin America 0.7 (2.0) + + (0.2)
North America (12.5) (7.7) (62) (61) --
BeautiControl
North America (0.5) 1.4 -- -- --
24.4 22.3 9 (9) 4.6
Unallocated expenses (4.6) (5.5) (16)
Translation hedge -- (4.2) +
Other income 1.4 -- +
Interest expense, net (2.7) (4.4) (39)
Income before taxes 18.5 8.2 +
Provision for income taxes 4.0 1.8 +
Net income $14.5 $6.4 +
Net income per common
share (diluted) $0.25 $0.11 +
Average number of shares 58.8 58.4
TUPPERWARE CORPORATION
CONSOLIDATED BALANCE SHEET
ASSETS
(UNAUDITED)
Mar. 27, Dec. 27,
(In millions) 2004 2003
Cash and cash equivalents $39.5 $45.0
Accounts receivable 116.7 127.3
Less allowances for doubtful accounts (23.6) (25.2)
93.1 102.1
Inventories 168.1 160.5
Deferred income tax benefits 59.9 59.2
Non-trade accounts receivable 34.5 27.1
Prepaid expenses 19.6 17.5
Total current assets 414.7 411.4
Deferred income tax benefits 144.6 136.8
Property, plant and equipment 1,066.2 1,059.3
Less accumulated depreciation (851.7) (837.9)
214.5 221.4
Long-term receivables, net of allowance
of $28.3 million at March 27, 2004 and
$26.8 million at December 27, 2003 43.2 45.4
Goodwill, net of accumulated amortization
of $1.6 million at March 27, 2004 and
December 27, 2003 56.2 56.2
Other assets 23.2 18.7
Total assets $896.4 $889.9
TUPPERWARE CORPORATION
CONSOLIDATED BALANCE SHEET
LIABILITIES AND SHAREHOLDERS' EQUITY
(UNAUDITED)
(Dollars in millions, except per Mar. 27, Dec. 27,
share amounts) 2004 2003
Accounts payable $78.2 $86.0
Short-term borrowings and current
portion of long-term debt 3.7 5.6
Accrued liabilities 191.7 182.6
Total current liabilities 273.6 274.2
Long-term debt 262.3 263.5
Accrued post-retirement benefit cost 36.6 36.4
Other liabilities 91.0 87.6
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.01 par value,
200,000,000 shares authorized; none issued -- --
Common stock, $0.01 par value, 600,000,000
shares authorized; 62,367,289 shares issued 0.6 0.6
Paid-in Capital 24.0 23.1
Subscription receivable (20.2) (20.6)
Retained earnings 530.1 529.0
Treasury Stock, 3,828,142 shares at
March 27, 2004 and 3,850,343 shares
at December 27, 2003 at cost (104.7) (105.5)
Unearned portion of restricted stock
issued for future service (1.4) (1.6)
Accumulated other comprehensive loss (195.5) (196.8)
Total shareholders' equity 232.9 228.2
Total liabilities and shareholders' equity $896.4 $889.9
TUPPERWARE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
13 weeks ended
March 27, March 29,
(In millions) 2004 2003
OPERATING ACTIVITIES
Net income $14.5 $6.4
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 12.7 13.5
(Gain) loss on sale of assets (1.1) 0.2
Changes in assets and liabilities:
Decrease in accounts receivable 11.4 0.2
Increase in inventories (7.9) (5.8)
Decrease in accounts payable and
accrued liabilities (5.6) (13.9)
Decrease in income taxes payable (2.9) (8.8)
(Increase) decrease in net
deferred income taxes (7.4) 0.5
Net cash impact from fair value
hedge activity (0.2) 0.2
Other, net 2.6 (5.2)
Net cash provided by (used in)
operating activities 16.1 (12.7)
INVESTING ACTIVITIES
Capital expenditures (9.6) (7.4)
Proceeds from disposal of property,
plant & equipment 2.2 0.2
Net cash used in investing activities (7.4) (7.2)
FINANCING ACTIVITIES
Dividend payments to shareholders (12.9) (12.8)
Proceeds from exercise of stock options 0.7 --
Net (decrease) increase in short-term debt (2.0) 20.7
Net cash (used in) provided by
financing activities (14.2) 7.9
Effect of exchange rate changes on
cash and cash equivalents -- (0.7)
Net decrease in cash and cash equivalents (5.5) (12.7)
Cash and cash equivalents at
beginning of period 45.0 32.6
Cash and cash equivalents at end of period $39.5 $19.9
TUPPERWARE CORPORATION
SUPPLEMENTAL INFORMATION
First Quarter Ended March 2004
Sales Force Statistics (a):
AVG.
Segment DIST. % CHG. ACTIVE % CHG. TOTAL % CHG.
Europe 699 -- 72,600 15 232,710 15
Asia Pacific (b) 685 -- 38,784 13 304,483 (10)
Latin America 186 (11) 53,391 (11) 231,742 (25)
North America 361 1 15,450 (24) 101,196 (22)
Tupperware 1,931 180,225 1 870,131 (11)
BeautiControl N.A. n/a n/a 28,111 23 70,998 23
Total (b) 1,931 (1) 208,336 4 941,129 (9)
(a) As collected by the Company and provided by distributors.
(b) Sales force statistics in Asia Pacific had evolved to include
individuals that are more customers than sellers. These customer
members have been reclassified to improve the sales force to sales
trends relationship. There is no impact on sales. Prior year amounts
reclassified:
From To
Asia Pacific
Sales Force 453,367 336,643
Average Active 37,321 34,429
Total
Sales Force 1,150,076 1,033,352
Average Active 203,555 200,663
UNAUDITED SELECTED FINANCIAL DATA FIRST QUARTER 2004
(In millions)
Cash 39.5 Net Debt to Capital Ratio 49%
Net Current Receivables 93.1 Equity 232.9
Net Inventory 168.1 Capital Expenditures 9.6
Short-Term Debt 3.7 Depreciation and Amortization 12.7
Long-Term Debt 262.3
SOURCE Tupperware Corporation
-0- 04/20/2004
/CONTACT: Jane Garrard of Tupperware Corporation, +1-407-826-4522/
/Web site: http://www.tupperware.com
http://www.beauticontrol.com /
(TUP)
CO: Tupperware Corporation; BeautiControl North America
ST: Florida
IN: HOU
SU: ERN CCA