UNITED STATES 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 the quarterly period ended October 2, 1994
Commission File Number 0-9286
COCA-COLA BOTTLING CO. CONSOLIDATED
(Exact name of registrant as specified in its charter)
Delaware 56-0950585
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1900 Rexford Road, Charlotte, North Carolina 282ll
(Address of principal executive offices) (Zip Code)
(704) 551-4400
(Registrant's telephone number, including area code)
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
Indicate the number of shares outstanding of each
of the issuer's classes of common stock, as of the
latest practicable date.
Class Outstanding at November 4, 1994
Common Stock, $1 Par Value 7,958,059
Class B Common Stock, $1 Par Value 1,336,362
PART I - FINANCIAL INFORMATION
Item l. Financial Statements.
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
In Thousands of Dollars
Oct. 2, Jan. 2, Oct. 3,
1994 1994 1993
ASSETS
Current Assets:
Cash $ 2,200 $ 1,262 $ 1,562
Accounts receivable, trade, less
allowance for doubtful accounts
of $419, $425 and $634 7,522 4,960 5,257
Accounts receivable from
The Coca-Cola Company 5,991 6,698 2,842
Due from Piedmont Coca-Cola
Bottling Partnership 1,907 2,454 2,268
Accounts receivable, other 6,583 10,758 12,952
Inventories 30,320 27,533 30,592
Prepaid expenses and other
current assets 8,321 4,734 5,159
Total current assets 62,844 58,399 60,632
Property, plant and equipment,
at cost 317,030 297,561 292,273
Less - accumulated depreciation
and amortization 138,022 134,546 131,876
Property,
plant and equipment,
net 179,008 163,015 160,397
Investment in Piedmont Coca-Cola
Bottling Partnership 68,801 68,400 70,343
Other assets 19,317 18,700 19,865
Identifiable intangible assets,
less accumulated amortization of
$73,200, $65,803 and $63,398 260,318 267,715 279,134
Excess of cost over fair value
of net assets of businesses
acquired, less accumulated
amortization of $21,117, $19,399
and $18,826 70,502 72,220 72,793
Total $660,790 $648,449 $663,164
See Accompanying Notes to Consolidated Financial Statements
LIABILITIES AND SHAREHOLDERS' EQUITY
Oct. 2, Jan. 2, Oct. 3,
1994 1994 1993
Current Liabilities:
Portion of long-term debt payable
within one year $ 376 $ 711 $ 1,133
Accounts payable and accrued
liabilities 54,948 69,232 62,027
Accounts payable to The Coca-Cola
Company 1,993 1,876 4,494
Accrued interest payable 5,593 10,108 4,680
Total current liabilities 62,910 81,927 72,334
Deferred income taxes 88,302 80,065 89,044
Other liabilities 21,630 22,470 21,765
Senior long-term debt 454,392 434,358 444,587
Total liabilities 627,234 618,820 627,730
Shareholders' Equity:
Convertible Preferred Stock, $100 par
value: Authorized-50,000 shares;
Issued-None
Nonconvertible Preferred Stock, $100
par value: Authorized-50,000 shares;
Issued-None
Preferred Stock, $.01 par value:
Authorized-20,000,000 shares;
Issued-None
Common Stock, $1 par value:
Authorized-30,000,000 shares;
Issued-10,090,859 shares 10,090 10,090 10,090
Class B Common Stock, $1 par value:
Authorized-10,000,000 shares;
Issued-1,964,476 shares 1,965 1,965 1,965
Class C Common Stock, $1 par value:
Authorized-20,000,000 shares;
Issued-None
Capital in excess of par value 132,351 139,322 141,246
Accumulated deficit (87,590) (98,488) (100,221)
Minimum pension liability adjustment (5,614) (5,614)
51,202 47,275 53,080
Less-Treasury stock, at cost:
Common-2,132,800 shares 17,237 17,237 17,237
Class B Common-628,114 shares 409 409 409
Total shareholders' equity 33,556 29,629 35,434
Total $660,790 $648,449 $663,164
See Accompanying Notes to Consolidated Financial Statements
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
In Thousands (Except Per Share Data)
Third Quarter Nine Months
1994 1993 1994 1993
Net sales (includes sales to
Piedmont of $23,121, $23,886,
$67,932 and $23,886) $ 188,418 $ 182,149 $ 552,927 $ 530,922
Cost of products sold,
excluding depreciation shown
below (includes $19,679,
$20,953, $59,785 and $20,953
related to sales to Piedmont) 112,554 108,758 328,979 302,054
Gross margin 75,864 73,391 223,948 228,868
Selling expenses 37,524 34,508 111,473 111,869
General and administrative
expenses 13,565 13,499 39,732 39,927
Depreciation expense 5,895 5,755 17,659 17,403
Amortization of goodwill
and intangibles 3,081 3,144 9,235 11,766
Income from operations 15,799 16,485 45,849 47,903
Interest expense 7,999 7,292 23,358 23,795
Other income (expense), net 761 (686) 474 (2,386)
Income before income taxes and
effect of accounting change 8,561 8,507 22,965 21,722
Federal and state income taxes 3,662 2,791 9,856 8,622
Income before effect of
accounting change 4,899 5,716 13,109 13,100
Effect of accounting change (2,211)
Net income $ 4,899 $ 5,716 $ 10,898 $ 13,100
Income per share:
Income before effect of
accounting change $ .53 $ .62 $ 1.41 $ 1.42
Effect of accounting change (.24)
Net income $ .53 $ .62 $ 1.17 $ 1.42
Cash dividends per share:
Common Stock $ .25 $ .22 $ .75 $ .66
Class B Common Stock .25 .13 .75 .39
Weighted average number of
Common and Class B Common
shares outstanding 9,294 9,294 9,294 9,245
See Accompanying Notes to Consolidated Financial Statements
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
In Thousands of Dollars
Capital Minimum
Class B in Pension
Common Common Excess of Accumulated Liability Treasury
Stock Stock Par Value Deficit Adjustment Stock
Balance on
January 3,
1993 $ 9,977 $ 1,965 $ 144,831 $ (113,321) $ 17,646
Net income 13,100
Cash dividends
declared:
Common (5,741)
Issuance of
Common Stock 113 2,156
Balance on
October 3, 1993 $10,090 $ 1,965 $ 141,246 $ (100,221) $ 17,646
Balance on
January 2,
1994 $10,090 $ 1,965 $ l39,322 $ (98,488) $ (5,614) $ 17,646
Net income 10,898
Cash dividends
declared:
Common (6,971)
Balance on
October 2, 1994 $10,090 $ 1,965 $ 132,351 $ (87,590) $ (5,614) $ 17,646
See Accompanying Notes to Consolidated Financial Statements
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
In Thousands of Dollars
Nine Months
1994 1993
Cash Flows from Operating Activities
Net income $ 10,898 $ 13,100
Adjustments to reconcile net income to net
cash provided by operating activities:
Effect of accounting change 2,211
Depreciation expense 17,659 17,403
Amortization of goodwill and intangibles 9,235 11,766
Deferred income taxes 9,856 8,602
(Gains) losses on sale of property, plant
and equipment (1,432) 1,334
Amortization of debt costs 341 400
Undistributed earnings of Piedmont
Coca-Cola Bottling Partnership (401) (343)
Increase in current assets less current
liabilities (26,004) (12,128)
Decrease (increase) in other noncurrent
assets (710) 264
Decrease in other noncurrent liabilities (301) (618)
Other 490 (80)
Total adjustments 10,944 26,600
Net cash provided by operating
activities 21,842 39,700
Cash Flows from Financing Activities
Proceeds from the issuance of long-term debt 21,246
Repayments of long-term debt (1,213) (110,540)
Issuance of Common Stock 2,269
Cash dividends paid (6,971) (5,741)
Other (1,260) (1,584)
Net cash provided by (used in) financing
activities 11,802 (115,596)
Cash Flows from Investing Activities
Additions to property, plant and equipment (36,748) (19,068)
Proceeds from the sale of property, plant
and equipment 4,042 611
Acquisition of companies, net of cash
acquired (1,572)
Net proceeds from sale and contribution
of assets to Piedmont Coca-Cola Bottling
Partnership 96,073
Net cash provided by (used in) investing
activities (32,706) 76,044
Net increase in cash 938 148
Cash at beginning of period 1,262 1,414
Cash at end of period $ 2,200 $ 1,562
See Accompanying Notes to Consolidated Financial Statements
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements
(Unaudited)
1. Accounting Policies
The consolidated financial statements include the
accounts of Coca-Cola Bottling Co. Consolidated
and its wholly owned subsidiaries ("the Company").
All significant intercompany accounts and
transactions have been eliminated.
The information contained in the financial
statements is unaudited. The statements reflect
all adjustments which, in the opinion of
management, are necessary for a fair statement of
the results for the interim periods presented.
Except for the accounting change discussed in Note
2, all such adjustments are of a normal, recurring
nature.
The accounting policies followed in the
presentation of interim financial results are the
same as those followed on an annual basis. These
policies are presented in Note 1 to the
consolidated financial statements included in the
Company's Annual Report on Form 10-K for the year
ended January 2, 1994 filed with the Securities
and Exchange Commission.
Certain prior year amounts have been reclassified
to conform to current year classifications.
2. Accounting Change
In November 1992, the Financial Accounting
Standards Board issued Statement of Financial
Accounting Standards No. 112, "Employers'
Accounting for Postemployment Benefits" ("SFAS
112"). SFAS 112 requires the accrual, during the
years that employees render service, of the
expected cost of providing postemployment benefits
if certain criteria are met. The Company adopted
the provisions of SFAS 112 in the first quarter of
1994, effective January 3, 1994. As a result, the
Company recorded a one-time, after-tax charge of
$2.2 million. This charge appears within the
caption "Effect of accounting change."
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements
(Unaudited)
3. Summarized Income Statement Data of Piedmont
Coca-Cola Bottling
Partnership
On July 2, 1993, the Company and The Coca-Cola
Company formed Piedmont Coca-Cola Bottling
Partnership ("Piedmont") to distribute and market
soft drink products primarily in portions of North
Carolina and South Carolina. The Company and The
Coca-Cola Company, through their respective
subsidiaries, each beneficially own a 50% interest
in Piedmont. The Company provides a majority of
the soft drink products to Piedmont and receives a fee
for managing the business of Piedmont pursuant to a
management agreement. Summarized income statement
data for Piedmont is as follows:
Third Quarter Nine Months
In Thousands 1994 1993 1994 1993
Net sales $51,837 $50,427 $149,470 $50,427
Gross margin 22,534 21,619 64,313 21,619
Income from operations 2,576 2,579 6,397 2,579
Net income 1,612 686 802 686
4. Inventories
Inventories are summarized as follows:
Oct. 2, Jan. 2, Oct. 3,
In Thousands 1994 1994 1993
Finished products $18,272 $16,622 $19,546
Manufacturing materials 10,444 9,498 10,173
Used bottles and cases 1,604 1,413 873
Total inventories $30,320 $27,533 $30,592
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements (Unaudited)
5. Long-Term Debt
Long-term debt is summarized as follows:
Fixed(F) or
Interest Variable Interest Oct. 2, Jan. 2, Oct. 3,
In Thousands Maturity Rate (V) Rate Paid 1994 1994 1993
Lines of Credit 1997 4.98% - V Varies $114,601 $ 18,335 $ 18,420
5.55%
Commercial Paper 9,987
Term Loan Agreement 75,000 75,000
Term Loan Agreement 2000 5.75% V Semi- 60,000 60,000 60,000
annually
Term Loan Agreement 2001 5.69% V Semi- 60,000 60,000 60,000
annually
Medium-Term Notes 1998 5.61% V Quarterly 10,000 10,000 10,000
Medium-Term Notes 1999 7.99% F Semi- 66,500 66,500 66,500
annually
Medium-Term Notes 2000 10.05% F Semi- 57,000 57,000 57,000
annually
Medium-Term Notes 2002 8.56% F Semi- 66,500 66,500 66,500
annually
Notes acquired in
Sunbelt acquisition 2001 8.00% F Quarterly 5,421 5,442 5,441
Capital leases and
other notes payable 1994 - 6.85% - F Varies 14,746 16,292 16,872
2001 12.00%
454,768 435,069 445,720
Less: Portion of
long-term debt
payable within
one year 376 711 1,133
Senior long-term debt $454,392 $434,358 $444,587
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements
(Unaudited)
5. Long-Term Debt (cont.)
As of October 2, 1994, the Company was in
compliance with all of the covenants of its
various borrowing agreements.
It is the Company's intent to renew its lines of
credit, commercial paper borrowings and borrowings
under the revolving credit facility as they
mature. To the extent that these borrowings do
not exceed the amount available under the
Company's $170 million revolving credit facility,
they are classified as noncurrent liabilities.
A $100 million commercial paper program was
established in January 1990 with funds to be used
for general corporate purposes. There were no
balances outstanding under this program on October
2, 1994 or January 2, 1994. On October 3, 1993,
approximately $10.0 million was outstanding under
the commercial paper program.
In June 1992, the Company entered into a three-
year arrangement under which it has the right to
sell an undivided interest in a designated pool
of trade accounts receivable for up to a maximum
of $40 million. The Company had sold trade
receivables of $35 million, $33 million and $34.5
million as of October 2, 1994, January 2, 1994 and
October 3, 1993, respectively.
6. Financial Instruments with Off-Balance-Sheet
Risk
The Company uses interest rate hedging products to
cost effectively modify risk from interest rate
fluctuations in its underlying debt. The Company
alters its fixed/floating interest rate mix based
upon anticipated operating cash flows of the
Company relative to its debt level and the
Company's ability to absorb increases in interest
rates. The Company has entered into interest rate
hedging transactions that resulted in weighted
average interest rates for the debt portfolio of
approximately 6.6%, 6.7% and 6.1% as of October 2,
1994, January 2, 1994 and October 3, 1993,
respectively. Including the effect of hedging
activities, approximately 55%, 43% and 44% of the
total debt portfolio was subject to changes in
short-term interest rates as of October 2, 1994,
January 2, 1994 and October 3, 1993, respectively.
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements
(Unaudited)
6. Financial Instruments with Off-Balance-Sheet
Risk (cont.)
Off-balance-sheet financial instruments were as
follows:
October 2, 1994 January 2, 1994 October 3, 1993
Remaining Remaining Remaining
In Thousands Amount Term Amount Term Amount Term
Interest swaps-
floating $221,600 6-9 years $221,600 7-10 years $221,600 7-10 years
Interest swaps-
fixed 215,000 1-9 years 368,000 1-10 years 308,000 1-10 years
Interest caps 110,000 1 year 110,000 1.5 years 110,000 2 years
Financial
guarantees 26,861 7-10 years 13,094 7 years 16,961 8 years
7. Income Taxes
Reported income tax expense differs from the
amount computed at the statutory rate due to
amortization of nondeductible goodwill, state
income taxes, nondeductible premiums on officers'
life insurance and other nondeductible expenses.
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements
(Unaudited)
8. Supplemental Disclosures of Cash Flow
Information
Changes in current assets and current liabilities
affecting cash, net of effects from acquisitions
and divestitures and effect of accounting change,
are as follows:
Nine Months
In Thousands 1994 1993
Accounts receivable, trade, net $ (2,562) $ (9,616)
Due from Piedmont 547 (2,268)
Accounts receivable, other 4,882 (1,862)
Inventories (2,787) (5,999)
Prepaid expenses and other current assets (3,587) (2,113)
Portion of long-term debt payable within
one year (335) (370)
Accounts payable and accrued liabilities (17,647) 16,462
Accrued interest payable (4,515) (6,362)
Increase $(26,004) $(12,128)
Cash payments during the period were as follows:
Nine Months
In Thousands 1994 1993
Interest $ 27,533 $ 29,757
Income taxes 55 1,252
Noncash items related to the formation of Piedmont on July 2, 1993 were as
follows:
In Thousands
Assets contributed to Piedmont $48,254
Assumption of Company liabilities by Piedmont 4,800
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Introduction:
The following discussion presents management's
analysis of the results of operations for the
first nine months of 1994 compared to the first
nine months of 1993 and changes in financial
condition from October 3, 1993 and January 2, 1994
to October 2, 1994.
On July 2, 1993, the Company and The Coca-Cola
Company formed Piedmont Coca-Cola Bottling
Partnership ("Piedmont") to distribute and market
soft drink products primarily in certain portions
of North Carolina and South Carolina. The Company
provides a majority of the soft drink products to
Piedmont and receives a fee for managing the
business of Piedmont pursuant to a management
agreement. The Company sold or contributed to
Piedmont its territories located in South
Carolina, as well as certain territories located
in North Carolina. Assets were sold or
contributed at their approximate carrying values.
Proceeds from the sale of territories to Piedmont,
net of the Company's cash contribution, totaled
approximately $96 million and were used to reduce
the Company's long-term debt. The Company is
accounting for its investment in Piedmont using
the equity method of accounting.
The Company filed a registration statement with
the Securities and Exchange Commission on July 20,
1994 (which became effective October 12, 1994)
pursuant to which the Company may offer from time
to time debt or equity securities in an aggregate
amount of $400 million. Upon any future
commencement of an offering, any net proceeds from
sales of the securities would be used for general
corporate purposes, including repayment of debt,
future acquisitions, capital expenditures or
working capital. There are no current plans with
respect to any specific significant acquisition or
use of proceeds.
The Company reported net income of $4.9 million or
$.53 per share for the third quarter of 1994
compared with $5.7 million or $.62 per share for
the same period in 1993. For the first nine
months of 1994, the Company reported net income of
$10.9 million or $1.17 per share compared to $13.1
million or $1.42 per share in the first nine
months of 1993. A one-time, after-tax noncash
charge of $2.2 million or $.24 per share was
recorded in the first quarter of 1994 due to the
adoption of Statement of Financial Accounting
Standards No. 112, "Employers' Accounting for
Postemployment Benefits" ("SFAS 112"). The
Company does not expect any significant impact on
the results of future operations due to the
adoption of this accounting standard.
The results for interim periods are not
necessarily indicative of the results to be
expected for the year due to seasonal factors.
Result of Operations:
For the third quarter of 1994, net sales increased
approximately 3.5% over the 1993 period. Case volume increased
by slightly more than 1% and average selling
prices were slightly higher. The volume growth
was slower in the third quarter of 1994 than in
the first half of 1994, reflecting milder
temperatures in July and August within the
franchise territories.
Net sales for the first nine months of 1994
increased 4.1% over the same period of 1993;
however, results of operations for the nine-month
periods are not directly comparable due to the
formation of Piedmont on July 2, 1993.
Excluding the results of the branches sold or
contributed to Piedmont from 1993 results,
franchise net sales increased by 5.5% for the
first nine months of 1994. This increase in
franchise net sales was primarily due to increased
volume. The introduction of certain New Age
beverages, such as Nestea and PowerAde,
contributed approximately 1.4% of the increase in
franchise sales in the first nine months of 1994.
Average net selling prices were slightly higher
than those of the 1993 periods, sustaining the
increases realized in 1993 versus 1992. Sales to
other bottlers increased for the first nine months
of 1994 over the same period in 1993 primarily due
to the sale of finished products to Piedmont.
Soft drink products are sold to Piedmont at cost.
When the results for the first nine months are
adjusted to reflect comparable territories, gross
margin increased 4.3%. Cost of goods sold as a
percentage of net sales was slightly higher as
increases in the costs of ingredients were
partially offset by lower packaging costs.
Packaging costs are expected to increase
significantly at the end of the fourth quarter of
1994 and during the first quarter of 1995 as a
result of increases in the cost of PET and
aluminum. The Company expects to increase selling
prices to cover the expected increased cost of raw
materials.
Excluding the results of the branches sold or
contributed to Piedmont from 1993 results, selling
expenses increased from approximately 23.3% of net
sales in the first nine months of 1993 to
approximately 24.7% of net sales in the first nine
months of 1994. Higher employment costs resulted
from normal wage rate adjustments and planned
increases in certain sales and operations
functions to improve customer service and reduce
turnover. Also, the sales and operations
functions increased as a result of increased
volume in the first half of 1994. Expenses
associated with the introduction of New Age
beverages also increased 1994 selling expenses.
General and administrative expenses as a
percentage of net sales for the comparable
franchise territories were slightly lower than for
the 1993 periods.
Amortization of goodwill and intangibles declined
21.5% for the first nine months of 1994,
reflecting the sale and contribution of franchise
territories to Piedmont.
Interest expense increased almost 10% from the
third quarter of 1993 to the third quarter of 1994
but was slightly lower for the first nine months
of 1994 versus the comparable period in 1993. The
third quarter increase was due to higher short-
term interest rates. Interest expense had been
lower during the first half of 1994 due primarily
to the decrease of more than $100 million in
outstanding debt during the third quarter of 1993.
Proceeds from the sale of territories to Piedmont,
net of the Company's cash contribution, were used
to reduce the Company's long-term debt.
The change in "other income (expense), net" for
the first nine months of 1994 was due primarily to
a third quarter 1994 gain on the sale of one of
the Company's aircraft and a first quarter 1994
gain on the sale of an idle production facility.
This facility was acquired in the 1991 Sunbelt
acquisition and was closed in April 1992. For the
first nine months of 1994, gains of approximately
$1.4 million on sales of property, plant and
equipment were included in "other income
(expense), net." Losses of approximately $1.3
million on sales of property, plant and equipment
were included in "other income (expense), net" for
the first nine months of 1993.
The estimated annual effective tax rate for
federal and state income taxes was 43% for both
the third quarter and the first nine months of
1994. The difference between the effective rate
and the statutory rate was due primarily to
amortization of nondeductible goodwill, state
income taxes, nondeductible premiums on officers'
life insurance and other nondeductible expenses.
Changes in Financial Condition:
Working capital increased $23.5 million from
January 2, 1994 and $11.6 million from October 3,
1993 to October 2, 1994. These increases resulted
principally from increases in trade accounts
receivable and decreases in accounts payable.
Inventory balances increased from January 2, 1994
in order to support Piedmont's inventory
requirements. The increase in trade accounts
receivable resulted primarily from increases in
net sales.
Capital expenditures in 1994 will be higher than
in 1993. The Company is purchasing rather than
leasing new vehicles and is making certain
manufacturing improvements needed to produce new
packages. Expenditures for capital additions in
1995 are expected to be lower than in 1994.
The Company uses interest rate hedging products to
cost effectively modify risk from interest rate
fluctuations in its underlying debt. The Company
alters its fixed/floating interest rate mix based
upon anticipated operating cash flows of the
Company relative to its debt level and the
Company's ability to absorb increases in interest
rates. As of October 2, 1994, the debt portfolio
had a weighted average interest rate of
approximately 6.6% and approximately 55% of the
total portfolio was subject to changes in
short-term interest rates. As a result of
increases in short-term interest rates, the
Company expects that interest expense in the
remainder of 1994 will increase versus the fourth
quarter of 1993.
Long-term debt increased $20.0 million from
January 2, 1994 due primarily to the increase in
working capital. As of October 2, 1994, the
Company was in compliance with all of the
covenants of its various borrowing agreements.
It is the Company's intent to renew any borrowings
under its $170 million revolving credit facility
and the informal lines of credit as they mature.
To the extent that any borrowings under the
revolving credit facility, the informal lines of
credit and commercial paper program do not exceed
the amount available under the Company's $170
million revolving credit facility, they are
classified as noncurrent liabilities. As of
October 2, 1994, the Company had no balances
outstanding under the revolving credit facility or
the commercial paper program and had $114.6
million outstanding under the informal lines of
credit. The Company had sold trade accounts
receivable of $35 million as of October 2, 1994
compared to $33 million and $34.5 million on
January 2, 1994 and October 3, 1993, respectively.
In February 1994, the Board of Directors approved
an increase in the dividend for the first quarter
of 1994. Quarterly dividends were increased to
$.25 per share on both the Common and Class B
Common shares outstanding. This dividend rate has
been maintained during 1994. Annual dividend
payments will total approximately $9.3 million in
1994.
Management believes that the Company, through the
generation of cash flow from operations and the
utilization of unused borrowing capacity, has
sufficient financial resources available to
maintain its current operations and provide for
its current capital expenditure requirements. The
Company considers the acquisition of additional
franchise territories on an ongoing basis.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit
Number Description
10.1 Agreement, dated as of December 23, 1993, between the Company and
Western Container Corporation covering purchase of PET bottles.
10.2 Lease Funding No. 94007, dated as of August 12, 1994, of a Master
Equipment Lease between the Company and Coca-Cola Financial
Corporation covering various vending machines.
10.3 Lease Funding No. 94008, dated as of September 7, 1994, of a Master
Equipment Lease between the Company and Coca-Cola Financial
Corporation covering various vending machines.
10.4 Lease Funding No. 94009, dated as of October 10, 1994, of a Master
Equipment Lease between the Company and Coca-Cola Financial
Corporation covering various vending machines.
10.5 Lease Funding No. 94010, dated as of October 26, 1994, of a Master
Equipment Lease between the Company and Coca-Cola Financial
Corporation covering various vending machines.
27 Financial data schedule for period ended October 2, 1994.
(b) Reports on Form 8-K
None.
SIGNATURES
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.
COCA-COLA BOTTLING CO. CONSOLIDATED
(REGISTRANT)
Date: November 14, 1994 By: /s/ David V. Singer
David V. Singer
Principal Financial Officer
of the Registrant
and
Vice President - Chief Financial
Officer