Exhibit 99.1
Tupperware Reports Second Quarter EPS Up 66 Percent From
Improved Segment Results
ORLANDO, Fla., July 21 /PRNewswire-FirstCall/ -- Tupperware Corporation
(NYSE: TUP) announced today that net income for the second quarter of 2004 was
$23.7 million or 40 cents per diluted share, compared with prior year net income
of $14.1 million or 24 cents per diluted share. This represented a 66 percent
increase in per share earnings. The 2004 quarter included one cent per diluted
share of unusual costs and the 2003 quarter included one cent per diluted share
from a gain on land development.
The quarter included a 13 cent increase in earnings from the Company's
segments, along with a six cent improvement from the combination of lower
hedging costs and stronger foreign currencies compared with the second quarter
of 2003.
Sales were $302.1 million, a three percent decline from last year. Excluding
the impact of foreign currency compared with prior year, sales were five percent
lower primarily due to declines in Japan and the United States.
"We are pleased that the year is progressing as we anticipated, including
quarterly profit improvements in four out of five of our segments," said Rick
Goings, Chairman and Chief Executive Officer. "Additionally, year-over-year
North America sales and sales force size declines are stabilizing, and we are
seeing more impact from our cost reduction efforts," Goings continued.
Tupperware will conduct a conference call on Wednesday, July 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.
Second Quarter Segment Highlights
Europe
This segment performed as expected during the second quarter, and it is
still anticipated that this region will contribute sales and profit improvements
for the full year of 2004 compared with 2003.
Sales were $137.0 million, up one percent over last year. Excluding the
impact of foreign currency on the comparison, sales were down three percent or
$4.4 million due to a planned lower level of business to business sales.
Profit was $30.8 million compared with $25.3 million last year, a 22 percent
increase. Excluding a $1.0 million positive foreign currency impact on the
comparison, profit increased $4.5 million or 17 percent. Return on sales
improved due to a stronger gross margin and lower operating expenses.
North America
Sales were $52.5 million, down 15 percent from last year primarily due to a
24 percent decline in average active sales force and absence of sales to Target.
There was a loss for the quarter of $5.1 million, which was 7 percent higher
than last year.
Although year-over-year North America sales force and sales declines are
stabilizing, as previously indicated, this segment is expected to have a
significant loss in 2004, in an amount close to last year's loss. Year-over-year
sales force comparisons are not expected to turn positive until the second half
of 2005.
Asia Pacific
Sales were $54.9 million, down eight percent or $4.6 million. Excluding the
impact of foreign currency from the comparison, sales were down 12 percent from
last year. The sales decline is primarily isolated to Japan and to a lesser
extent, Indonesia, due to smaller sales forces. Most other markets in Asia
Pacific are performing in line with expectations including growth in the
emerging markets.
Profit improved 23 percent compared with the same quarter last year.
Excluding the impact of foreign currency, profit improved 13 percent in spite of
the sales decline primarily due to cost structure improvements in Korea along
with better capacity utilization in the Philippines.
For the full year, Asia Pacific is expected to have moderate year-over-year
sales and profit declines due to current trends in Japan and Indonesia.
Latin America
Latin America sales were $27.9 million compared with $30.2 million last
year. Excluding the impact of foreign currency from the comparison, sales
increased one percent.
Profit increased $2.1 million or over 100 percent from last year due to an
improved mix of sales in Mexico, higher volume in Venezuela and improvements to
the value chains.
This segment continues to be expected to have a full-year positive
comparison versus 2003 in sales. An even greater improvement in profit is
expected from the same factors impacting the second quarter.
BeautiControl North America
Sales were $29.8 million, up 28 percent from last year due to total sales
force growth of 23 percent and average active sales force growth of 16 percent.
Profit improved over 100 percent to $3.0 million from $0.2 million in the
prior year primarily from the higher sales and more effective promotional
spending.
Sales and profit growth are expected to continue in BeautiControl throughout
2004 in light of the significant sales force size advantage.
Year To Date
Net income was $38.2 million or 65 cents per diluted share including two
cents from a gain on land development partially offset by one cent of unusual
costs. This is an 85 percent increase in earnings per share compared with $20.5
million or 35 cents per diluted share last year, which included one cent from a
gain on land development.
Sales were up three percent from $581.5 million to $598.5 million. Excluding
foreign currency, sales were down three percent compared with the prior year.
Outlook
The full-year 2004 earnings outlook remains the same as April 2004 at $1.28
- - $1.38 per diluted share. The full-year sales outlook is for a slight increase
versus 2003, and excluding the impact of foreign exchange, sales are still
expected to be about flat with last year.
This outlook includes twelve cents from gains on land development and five
to six cents of unusual costs related to rationalizing manufacturing and other
exit costs. Compared with 2003, the earnings outlook for 2004 includes 14 cents
positive impact from foreign currency at current rates and 18 cents from lower
hedging costs.
Consistent with historical trends, the third quarter is the smallest of the
year, and approximately 10 percent of second half earnings are expected in the
quarter. Included in this expectation are ten cents from a gain on land
development, which has been recognized in July, and four to five cents of
unusual charges for manufacturing rationalization and other exit costs. These
unusual costs had previously been expected to be incurred in the second quarter.
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 almost 100 countries through its Tupperware brand.
In partnership with 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 26 Weeks Ended
June 26, June 28, June 26, June 28,
(In millions, except per share data) 2004 2003 2004 2003
Net sales $302.1 $310.0 $598.5 $581.5
Cost of products sold 99.7 108.6 199.8 197.9
Gross margin 202.4 201.4 398.7 383.6
Delivery, sales and administrative
expense 169.1 179.4 345.9 344.2
Re-engineering and impairment charge 0.7 -- 0.7 --
Gains on disposal of assets 0.1 1.2 1.5 1.2
Operating income 32.7 23.2 53.6 40.6
Interest income 0.5 0.4 1.0 1.0
Other income 0.3 0.6 0.6 0.6
Interest expense 3.7 2.5 6.9 7.5
Other expense 1.0 3.5 1.0 8.3
Income before income taxes 28.8 18.2 47.3 26.4
Provision for income taxes 5.1 4.1 9.1 5.9
Net income $23.7 $14.1 $38.2 $20.5
Net income per common share:
Basic $0.40 $0.24 $0.65 $0.35
Diluted $0.40 $0.24 $0.65 $0.35
TUPPERWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(Amounts in millions, except per share)
13 Weeks Ended Reported Restated Foreign
June 26, June 28, % % Exchange
2004 2003 Inc Inc Impact
(Dec) (Dec)
SALES
Europe $137.0 $135.4 1 (3) $6.0
Asia Pacific 54.9 59.5 (8) (12) 3.2
Latin America 27.9 30.2 (7) 1 (2.6)
North America 52.5 61.6 (15) (15) 0.1
BeautiControl North
America 29.8 23.3 28 28 --
$302.1 $310.0 (3) (5) $6.7
SEGMENT PROFIT (LOSS)
Europe $30.8 $25.3 22 17 $1.0
Asia Pacific 7.5 6.1 23 13 0.6
Latin America 4.2 2.1 + + (0.2)
North America (5.1) (4.8) (7) (7) --
BeautiControl North
America 3.0 0.2 + + --
40.4 28.9 40 34 1.4
Unallocated expenses (6.9) (6.8) (2)
Hedge costs (0.9) (3.6) +
Other income 0.1 1.8 (94)
Re-engineering and impairment
charges (0.7) -- --
Interest expense, net (3.2) (2.1) (59)
Income before taxes 28.8 18.2 58
Provision for income taxes 5.1 4.1 25
Net income $23.7 $14.1 67
Net income per common share
(diluted) $0.40 $0.24 66
Average number of diluted
shares 58.9 58.4
TUPPERWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(Amounts in millions, except per share)
26 Weeks Ended Reported Restated Foreign
June 26, June 28, % % Exchange
2004 2003 Inc Inc Impact
(Dec) (Dec)
SALES
Europe $298.5 $270.7 10 -- $27.4
Asia Pacific 96.9 98.5 (2) (8) 7.1
Latin America 50.8 50.7 -- 6 (2.6)
North America 97.9 117.3 (17) (17) 0.5
BeautiControl North
America 54.4 44.3 23 23 --
$598.5 $581.5 3 (3) $32.4
SEGMENT PROFIT (LOSS)
Europe $66.9 54.8 22 11 $5.7
Asia Pacific 8.1 7.2 13 1 0.9
Latin America 4.9 0.1 + + (0.5)
North America (17.6) (12.5) (41) (40) --
BeautiControl North
America 2.5 1.6 54 54 --
64.8 51.2 27 13 6.1
Unallocated expenses (11.5) (12.3) 7
Hedge costs (0.9) (7.8) +
Other income 1.5 1.8 (17)
Re-engineering and
impairment charges (0.7) -- --
Interest expense, net (5.9) (6.5) 9
Income before taxes 47.3 26.4 79
Provision for income taxes 9.1 5.9 54
Net income $38.2 $20.5 86
Net income per common
share (diluted) $0.65 $0.35 85
Average number of
diluted shares 58.9 58.4
TUPPERWARE CORPORATION
CONSOLIDATED BALANCE SHEET
ASSETS
(UNAUDITED)
June 26, Dec. 27,
(In millions) 2004 2003
Cash and cash equivalents $23.5 $45.0
Accounts receivable 115.5 127.3
Less allowances for doubtful
accounts (22.8) (25.2)
92.7 102.1
Inventories 169.6 160.5
Deferred income tax benefits 59.1 59.2
Non-trade accounts receivable 37.5 28.6
Prepaid expenses 19.1 16.0
Total current assets 401.5 411.4
Deferred income tax benefits 146.8 136.8
Property, plant and equipment 1,053.1 1,059.3
Less accumulated depreciation (842.2) (837.9)
210.9 221.4
Long-term receivables, net of
allowance of $28.3 million at
June 26, 2004 and $26.8 million
at December 27, 2003 42.8 45.4
Goodwill, net of accumulated
amortization of $1.6 million at
June 26, 2004 and
December 27, 2003 56.2 56.2
Other assets 20.9 18.7
Total assets $879.1 $889.9
TUPPERWARE CORPORATION
CONSOLIDATED BALANCE SHEET
LIABILITIES AND SHAREHOLDERS' EQUITY
(UNAUDITED)
(Dollars in millions, except per Jun. 26, Dec. 27,
share amounts) 2004 2003
Accounts payable $64.8 $86.0
Short-term borrowings and current
portion of long-term debt 3.5 5.6
Accrued liabilities 193.0 182.6
Total current liabilities 261.3 274.2
Long-term debt 257.2 263.5
Accrued post-retirement benefit cost 37.3 36.4
Other liabilities 91.1 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 24.6 23.1
Subscription receivable (18.6) (20.6)
Retained earnings 540.6 529.0
Treasury Stock, 3,815,011 shares
at June 26, 2004 and
3,850,343 shares at December 27, 2003
at cost (104.2) (105.5)
Unearned portion of restricted
stock issued for future service (1.3) (1.6)
Accumulated other comprehensive
loss (209.5) (196.8)
Total shareholders' equity 232.2 228.2
Total liabilities and
shareholders' equity $879.1 $889.9
TUPPERWARE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
26 weeks ended
June 26, June 28,
(In millions) 2004 2003
OPERATING ACTIVITIES
Net income $38.2 $20.5
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and
amortization 25.0 26.4
Gain on sale of assets (1.0) (0.6)
Non-cash impact of re-
engineering and
impairment charge 0.3 --
Changes in assets and liabilities:
Decrease in accounts
receivable 10.4 5.0
Increase in inventories (9.8) (0.5)
(Decrease) increase in accounts payable and accrued
liabilities (12.8) 2.2
Decrease in income
taxes payable (2.8) (10.3)
Increase in net
deferred income taxes (11.6) (5.0)
Net cash impact from
fair value hedge activity (8.0) 11.6
Other, net (6.6) (7.5)
Net cash provided by
operating activities 21.3 41.8
INVESTING ACTIVITIES
Capital expenditures (20.2) (17.4)
Proceeds from disposal of
property, plant & equipment 2.8 3.0
Net cash used in
investing activities (17.4) (14.4)
FINANCING ACTIVITIES
Dividend payments to shareholders (25.8) (25.7)
Proceeds from exercise of stock
options 1.0 0.9
Proceeds from payments of
subscriptions receivable 1.5 --
Net (decrease) increase in short-
term debt (1.5) 1.2
Payment of long-term debt -- (15.0)
Net cash used in
financing activities (24.8) (38.6)
Effect of exchange rate changes on
cash and cash equivalents (0.6) 0.5
Net decrease in cash and cash
equivalents (21.5) (10.7)
Cash and cash equivalents at
beginning of period 45.0 32.6
Cash and cash equivalents at end of
period $23.5 $21.9
TUPPERWARE CORPORATION
SUPPLEMENTAL INFORMATION
Second Quarter Ended June 2004
Sales Force Statistics (a):
AVG.
Segment DIST. % CHG. ACTIVE % CHG. TOTAL % CHG.
Europe 698 1 65,818 12 237,106 12
Asia Pacific 692 4 40,778 2 318,145 (10)
Latin America 185 (8) 59,488 (10) 229,800 (27)
North America 357 (1) 15,708 (24) 101,752 (17)
Tupperware 1,932 1 181,792 (2) 886,803 (12)
BeautiControl N.A. n/a n/a 28,370 16 81,957 23
Total (b) 1,932 1 210,162 -- 968,760 (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 501,357 351,694
Average Active 44,240 39,848
Total
Sales Force 1,218,733 1,069,070
Average Active 214,875 210,483
UNAUDITED SELECTED FINANCIAL DATA SECOND QUARTER 2004
(In millions)
Cash 23.5 Net Debt to Capital Ratio 51%
Net Current Receivables 92.7 Equity 232.2
Net Inventory 169.6 Capital Expenditures 20.2
Short-Term Debt 3.5 Depreciation and
Long-Term Debt 257.2 Amortization 25.0
SOURCE Tupperware Corporation
-0- 07/21/2004
/CONTACT: Jane Garrard, Tupperware Corporation, +1-407-826-4522/
/Web site: http://www.tupperware.com/
(TUP)