Exhibit 99.1
TUPPERWARE ANNOUNCES SECOND QUARTER EPS UP 14% INCLUDING
IMPROVED U.S. PROFITABILITY
ORLANDO, FLA, July 26 /PRNewswire-FirstCall/ -- Tupperware Corporation
(NYSE: TUP) announced today second quarter earnings per share up 14%. This
quarter is the sixth consecutive quarter of earnings improvement over the
previous year.
Summary:
* EPS increased to 46 cents including 4 cents favorable foreign exchange
* Sales up 5% as reported and up 1% in local currency
* Sales force size up 3%; average active sales force down 1%
* Excluding re-engineering costs, EPS up 10% from prior year to 45 cents
(See Non-GAAP Financial Measures reconciliation schedule)
* Quarter includes net 3 cents positive impact from tax rate
"We continued to have strong growth in our BeautiControl business and our
emerging markets, while significantly reducing the operating loss in Tupperware
North America," said Rick Goings, Chairman and Chief Executive Officer. "Latin
America had nice progress due to increased sales force productivity, while
Germany and Japan continued to be challenging," Goings continued.
Tupperware will conduct a conference call tomorrow, Wednesday, July 27th, at
10:00 am Eastern time. The conference call will be simulcast and archived, along
with a copy of the news release, at http://www.tupperware.com .
Second Quarter Segment Highlights
Europe
Sales increased 5% as reported and were up 1% in local currency. Strong
sales growth in Russia and South Africa, combined with $7.9 million higher
business-to-business sales coming from a number of markets, were partially
offset by a decline in Germany. European profit was down 2% as reported and down
5% in local currency.
Asia Pacific
Sales were down 5% as reported and 8% in local currency. Strength in most of
the Asian markets only partially offset continued softness in Japan. The sales
decline led to Asia Pacific profit being down $2.9 million as reported and $3.3
million in local currency.
Latin America
Sales increased 21% as reported and 17% in local currency due to growth in
all markets, particularly Mexico. Sales of BeautiControl in Mexico grew 17% to
11% of sales. Profit was up 10% as reported and in local currency.
North America
Sales were down 13% due to a decline in the average active sales force.
Profit was $0.6 million including a net $3.1 million positive impact related to
a shift in manufacturing capacity. Excluding these items, the loss compared with
last year decreased 50% due to improvements in the value chain. (See Non-GAAP
Financial Measures Reconciliation schedule.)
BeautiControl North America
Sales were up 36% on average active sales force growth of 32%. Profit for
the quarter was up 17%, which was lower than sales due to costs associated with
recent record growth. Progress is being made towards mitigating these costs,
which is expected to lead to an improved return on sales later this year.
Year to Date Actual Results
* EPS up 32% to 86 cents including 5 cents favorable foreign exchange
* Sales up 6% and up 4% in local currency
* Excluding net two cents expense of re-engineering costs offset by land
gains, EPS up 38% to 88 cents (see Non-GAAP Financial Measures reconciliation
schedule)
Full-Year Outlook
* Sales up 2-3% as reported and up slightly in local currency
* No change in earnings expectations from operations
* Outlook revised only for foreign exchange
* EPS at $1.46-$1.56; no impact from foreign exchange vs. 9 cents previously
* 8 cents of gains for land sales - no change
* 4 cents of re-engineering costs - no change
* 4-5 percentage point increase from last year in the effective tax rate to
19-20% vs. 22% in prior outlook
* Excluding land sales and re-engineering costs, EPS is expected to be
$1.42-$1.52 vs. $1.41 in 2004. (See Non-GAAP Financial Measures outlook
reconciliation schedule.)
Third Quarter Outlook
* Sales up 4-5% as reported and in local currency
* Quarter is expected to be about breakeven including 1-3 cents of
re-engineering costs
* 1 cent favorable foreign exchange
* Excluding re-engineering costs, EPS is expected to be 1-3 cents vs. 13
cents last year, which included 3 cents for a positive tax audit
resolution. (See Non-GAAP Financial Measures outlook reconciliation
schedule.)
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 http://www.tupperware.com and http://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 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 report on Form 8-K dated April 10, 2001, as filed with the
Securities and Exchange Commission.
Non-GAAP Financial Measures
The Company has utilized non-GAAP financial measures in this release, which
are provided to assist in investors' 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's primary operations, and to assist investors in
evaluating performance and analyzing trends across periods. The non-GAAP
financial measures exclude gains on land sales and re- engineering costs
primarily associated with shifting capacity from its South Carolina
manufacturing facility to other facilities. While the Company is engaged in a
multi-year program to sell land, this activity is not part of the Company's
primary business operation. Additionally, the gains recognized in any given
period are not necessarily indicative of gains which may be recognized in any
particular future period. For this reason, these gains are excluded from
indicated earnings per share amounts. 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.
TUPPERWARE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
13 Weeks 13 Weeks 27 Weeks 26 Weeks
Ended Ended Ended Ended
July 2, June 26, July 2, June 26,
(In millions, except per share data) 2005 2004* 2005 2004*
- --------------------------------------------- ---------- ---------- ---------- ----------
Net sales $ 320.4 $ 306.4 $ 646.8 $ 607.3
Cost of products sold 109.7 102.7 224.2 206.4
Gross margin 210.7 203.7 422.6 400.9
Delivery, sales and administrative
expense 174.9 170.4 350.5 348.1
Re-engineering and impairment charges 1.2 0.7 7.2 0.7
Gains on disposal of assets -- 0.1 3.4 1.5
Operating income 34.6 32.7 68.3 53.6
Interest income 0.9 0.5 1.5 1.0
Other income 0.2 0.3 0.3 0.6
Interest expense 4.3 3.7 8.6 6.9
Other expense (0.3) 1.0 -- 1.0
Income before income taxes 31.7 28.8 61.5 47.3
Provision for income taxes 4.0 5.1 9.9 9.1
Net income $ 27.7 $ 23.7 $ 51.6 $ 38.2
Net income per common share:
Basic $ 0.46 $ 0.40 $ 0.87 $ 0.65
Diluted $ 0.46 $ 0.40 $ 0.86 $ 0.65
* Certain prior year amounts have been reclassified on the consolidated
statements of income to conform with current year presentation.
TUPPERWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
13 Weeks 13 Weeks
Ended Ended Reported Restated Foreign
(Amounts in millions, July 2, June 26, % % Exchange
except per share) 2005 2004* Inc (Dec) Inc (Dec) Impact
- ------------------------------ ---------- ---------- ---------- ---------- ----------
SALES
Europe $ 145.4 $ 138.4 5 1 $ 6.1
Asia Pacific 52.9 55.6 (5) (8) 1.8
Latin America 33.7 28.0 21 17 1.0
North America 47.3 54.3 (13) (13) 0.4
BeautiControl
North America 41.1 30.1 36 36 --
$ 320.4 $ 306.4 5 1 $ 9.3
SEGMENT PROFIT
(LOSS)
Europe $ 30.4 $ 30.8 (2) (5) $ 1.2
Asia Pacific 4.6 7.5 (38) (41) 0.4
Latin America 4.6 4.2 10 10 --
North America 0.6 (5.1) + + --
BeautiControl
North America 3.6 3.0 17 17 --
43.8 40.4 8 4 $ 1.6
Unallocated expenses (8.4) (6.9) 22
Hedge income (costs) 0.9 (0.9) +
Other income -- 0.1 --
Re-engineering and
impairment charges (1.2) (0.7) 68
Interest expense, net (3.4) (3.2) 4
Income before taxes 31.7 28.8 10
Provision for income
taxes 4.0 5.1 (21)
Net income $ 27.7 $ 23.7 17
Net income per
common share
(diluted) $ 0.46 $ 0.40 14
Average number of
diluted shares 60.5 58.9
27 Weeks 26 Weeks
Ended Ended Reported Restated Foreign
July 2, June 26, % % Exchange
2005 2004* Inc (Dec) Inc (Dec) Impact
---------- ---------- ---------- ---------- ----------
SALES
Europe $ 324.7 $ 301.9 8 3 $ 12.3
Asia Pacific 98.5 98.0 -- (2) 2.6
Latin America 61.4 50.8 21 20 0.5
North America 86.5 101.2 (15) (15) 0.7
BeautiControl
North America 75.7 55.4 37 37 --
$ 646.8 $ 607.3 6 4 $ 16.1
SEGMENT PROFIT
(LOSS)
Europe $ 68.9 $ 66.9 3 (1) $ 2.5
Asia Pacific 5.9 8.1 (27) (29) 0.3
Latin America 6.4 4.9 32 34 (0.1)
North America (3.2) (17.6) 82 82 --
BeautiControl
North America 6.4 2.5 + + --
84.4 64.8 30 25 $ 2.7
Unallocated expenses (12.7) (11.5) 10
Hedge income (costs) 0.7 (0.9) +
Other income 3.4 1.5 +
Re-engineering and
impairment charges (7.2) (0.7) +
Interest expense,
net (7.1) (5.9) 21
Income before taxes 61.5 47.3 30
Provision for income
taxes 9.9 9.1 9
Net income $ 51.6 $ 38.2 35
Net income per
common share
(diluted) $ 0.86 $ 0.65 32
Average number of
diluted shares 60.1 58.9
* Certain prior year amounts have been reclassified on the condensed
consolidated statements of income to conform with current year presentation.
TUPPERWARE CORPORATION
RECONCILIATION
13 Weeks Ended 13 Weeks Ended
July 2, 2005 June 26, 2004
-------------------------------------- --------------------------------------
Excl Excl
(In millions except per share data) Reported Adj's Adj's Reported Adj's Adj's
- ----------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Segment profit (loss)
Europe $ 30.4 0.1 a $ 30.5 $ 30.8 $ 30.8
Asia Pacific 4.6 0.2 a 4.8 7.5 7.5
Latin America 4.6 0.3 a 4.9 4.2 4.2
North America 0.6 (3.1)b (2.5) (5.1) (5.1)
BeautiControl
North America 3.6 3.6 3.0 3.0
43.8 (2.5) 41.3 40.4 -- 40.4
Unallocated expenses (8.4) (8.4) (6.9) (6.9)
Hedge costs 0.9 0.9 (0.9) (0.9)
Other income -- -- 0.1 (0.1)d --
Re-eng and impairment
chgs (1.2) 1.2 c -- (0.7) 0.7 c --
Interest expense, net (3.4) (3.4) (3.2) (3.2)
Income before taxes 31.7 (1.3) 30.4 28.8 0.6 29.4
Provision for income
taxes 4.0 (0.7) e 3.3 5.1 0.2 e 5.3
Net income $ 27.7 $ (0.6) $ 27.1 $ 23.7 $ 0.4 $ 24.1
Net income per common
share (diluted) $ 0.46 $ (0.01) $ 0.45 $ 0.40 $ 0.01 $ 0.41
27 Weeks Ended 26 Weeks Ended
July 2, 2005 June 26, 2004
-------------------------------------- --------------------------------------
Excl Excl
Reported Adj's Adj's Reported Adj's Adj's
---------- ---------- ---------- ---------- ---------- ----------
Segment profit (loss)
Europe $ 68.9 0.1 a $ 69.0 $ 66.9 $ 66.9
Asia Pacific 5.9 0.2 a 6.1 8.1 8.1
Latin America 6.4 0.3 a 6.7 4.9 4.9
North America (3.2) (3.0)b (6.2) (17.6) (17.6)
BeautiControl
North America 6.4 6.4 2.5 2.5
84.4 (2.4) 82.0 64.8 -- 64.8
Unallocated expenses (12.7) (12.7) (11.5) (11.5)
Hedge costs 0.7 0.7 (0.9) (0.9)
Other income 3.4 (3.4)d -- 1.5 (1.5)d --
Re-eng and impairment
chgs (7.2) 7.2 c -- (0.7) 0.7 c --
Interest expense, net (7.1) (7.1) (5.9) (5.9)
Income before taxes 61.5 1.4 62.9 47.3 (0.8) 46.5
Provision for income
taxes 9.9 0.4 e 10.3 9.1 (0.3) e 8.8
Net income $ 51.6 $ 1.0 $ 52.6 $ 38.2 $ (0.5) $ 37.7
Net income per common
share (diluted) $ 0.86 $ 0.02 $ 0.88 $ 0.65 $ (0.01) $ 0.64
(a) Primarily machinery relocation costs incurred in connection with shift of
capacity from Hemingway, South Carolina to other manufacturing facilities.
(b) $3.7 million reduction of LIFO inventory reserve requirements from shift of
capacity from Hemingway, South Carolina to other manufacturing facilities
which report inventory on the FIFO basis of accounting. Offsetting this
amount is $0.6 million in costs related to the transfer of machinery and
equipment to the other manufacturing facilities.
(c) Pretax re-engineering and impairment charges in the second quarter of 2005
of $1.2 million and in the first quarter of 2005 of $6.0 million were
primarily related to severance costs incurred to reduce headcount in the
Company's Hemingway, South Carolina manufacturing facility. Re-engineering
and impairment charges of $0.7 million in the second quarter of 2004 were
primarily related to manufacturing rationalization and headcount reductions
in the United States.
(d) Pretax gains from the sale of land held for development near the Company's
Orlando, Florida headquarters was $0.1 million for the second quarter of
2004 and $1.4 million in the first quarter of 2004. In 2005 gain on the sale
of land was $3.4 million in the first quarter of 2005.
(e) Provision for income taxes represents the net tax impact of adjusted
amounts.
See note regarding non-GAAP financial measures in the attached press release.
TUPPERWARE CORPORATION
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE
July 26, 2005
Full year ended Dec 25, 2004
Adjusted
before FX
GAAP Adjustments impact Adjusted
---------- --------------------------- ---------- ----------
Land and
hurricane Exchange
($ in millions, insurance Re-engineering rate
except per share amounts) gains Costs impact (a)
- ------------------------------ ---------- -------------- ----------
Income before
income taxes $ 102.0 $ (13.1) $ 7.0 $ 95.9 $ -- $ 95.9
Income tax 15.1 (5.1) 2.6 12.6 12.6
Net income 86.9 (8.0) 4.4 83.3 83.3
Net income per
common share
(diluted) $ 1.48 $ (0.14) $ 0.07 $ 1.41 $ -- $ 1.41
Average number of diluted
shares (millions) 58.9
Full year ended Dec 31, 2005 - Outlook
GAAP Adjusted
Range Adjustments Range
------------------------ --------------------------- -----------------------
Re-engineering
Low High Land gains Costs Low High
---------- ---------- ---------- -------------- ---------- ----------
Income before
income taxes $ 110.5 $ 118.2 $ (7.7) $ 3.8 $ 106.6 $ 114.3
% vs prior year 8% 16% 11% 19%
Income tax 22.1 23.6 (3.0) 1.5 20.6 22.1
Net income 88.4 94.6 (4.7) 2.3 86.0 92.2
Net income per
common share
(diluted) $ 1.46 $ 1.56 $ (0.08) $ 0.04 $ 1.42 $ 1.52
Average number
of diluted
shares
(millions) 60.5
% vs prior year -1% 6% 0% 8%
Third Quarter - 2004
Adjusted
before FX
GAAP Adjustments impact Adjusted
---------- --------------------------- ---------- ----------
Exchange
Re-engineering rate
Land gains Costs impact (a)
---------- -------------- ----------
Income before
income taxes $ 14.0 $ (10.1) $ 1.8 $ 5.7 $ 0.5 $ 6.2
Income tax 1.1 (3.7) 0.6 (2.0) $ 0.1 (1.9)
Net income 12.9 (6.4) 1.2 7.7 0.4 8.1
Net income per
common share
(diluted) $ 0.22 $ (0.11) $ 0.02 $ 0.13 $ 0.01 $ 0.14
Average number
of diluted
shares
(millions) 58.7
Third Quarter 2005 - Outlook
GAAP Adjusted
Range Adjustments Range
------------------------ --------------------------- -----------------------
Re-engineering
Low High Land gains Costs Low High
---------- ---------- ---------- -------------- ---------- ----------
Income before
income taxes $ (1.0) $ 1.0 $ -- $ 2.1 $ 1.1 3.1
% vs prior year -82% -50%
Income tax (0.2) 0.2 -- 0.8 0.6 1.0
Net income (0.8) 0.8 -- 1.3 0.5 2.1
Net income per
common share
(diluted) $ (0.01) $ 0.01 $ -- $ 0.02 $ 0.01 $ 0.03
Average number
of diluted
shares
(millions) 60.9
% vs prior year -92% -75%
(a) Impact of current exchange rates; 2004 restated at rates used for the 2005
outlook
TUPPERWARE CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS
(UNAUDITED)
Jul. 2, Dec. 25,
(In millions) 2005 2004
- ---------------------------------------- ---------- ----------
Cash and cash equivalents $ 113.7 $ 90.9
Accounts receivable 110.0 119.0
Less allowances for doubtful
accounts (16.0) (15.0)
94.0 104.0
Inventories 167.4 163.0
Deferred income tax benefits, net 60.3 59.4
Non-trade amounts receivable 29.0 35.8
Prepaid expenses 17.4 12.9
Total current assets 481.8 466.0
Deferred income tax benefits, net 162.4 160.5
Property, plant and equipment 1,102.0 1,131.2
Less accumulated depreciation (899.0) (915.2)
203.0 216.0
Long-term receivables, net of
allowances of $17.6 million at
July 2, 2005 and $25.7 million
at December 25, 2004 39.4 42.6
Goodwill 56.2 56.2
Other assets 41.4 41.9
Total assets $ 984.2 $ 983.2
TUPPERWARE CORPORATION
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(UNAUDITED)
(Dollars in millions, except per Jul. 2, Dec. 25,
share amounts) 2005 2004
- ---------------------------------------- ---------- ----------
Accounts payable $ 67.8 $ 91.0
Short-term borrowings and current
portion of long-term debt 2.4 2.6
Accrued liabilities 194.1 198.5
Total current liabilities 264.3 292.1
Long-term debt 241.8 246.5
Accrued post-retirement benefit cost 35.0 35.3
Other liabilities 127.2 118.4
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 26.9 25.6
Subscription receivable (15.8) (18.7)
Retained earnings 576.4 560.9
Treasury Stock, 2,533,721 shares
at July 2, 2005 and 3,542,135
shares at December 25, 2004 at
cost (68.4) (96.8)
Unearned portion of restricted
stock issued for future service (2.3) (2.9)
Accumulated other comprehensive
loss (201.5) (177.8)
Total shareholders' equity 315.9 290.9
Total liabilities and
shareholders' equity $ 984.2 $ 983.2
TUPPERWARE CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
27 weeks ended 26 weeks ended
July 2, June 26,
(In millions) 2005 2004
- ---------------------------------------- -------------- --------------
OPERATING ACTIVITIES
Net income $ 51.6 $ 38.2
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and
amortization 24.4 25.0
Net gains on disposal of
assets (3.2) (1.0)
Provision for bad debts 2.2 3.2
Net impact of writedown
of inventories and
change in LIFO reserve (4.2) 2.5
Non-cash impact of
re-engineering and
impairment costs -- 0.3
Changes in assets and
liabilities:
Decrease in accounts
receivable 2.6 7.2
Increase in inventories (8.7) (12.3)
Decrease in accounts payable
and accrued liabilities (27.4) (12.8)
Increase (decrease) in income
taxes payable 9.1 (2.8)
Increase in net deferred
income taxes (0.6) (11.6)
Net cash impact from hedge
activity 1.9 (8.0)
Other, net (4.2) (6.6)
Net cash provided by
operating activities 43.5 21.3
INVESTING ACTIVITIES
Capital expenditures (18.3) (20.2)
Proceeds from disposal of
property, plant & equipment 7.1 2.8
Net cash used in investing
activities (11.2) (17.4)
FINANCING ACTIVITIES
Dividend payments to
shareholders (26.0) (25.8)
Proceeds from exercise of stock
options 21.0 1.0
Proceeds from payments of
subscriptions receivable 0.4 1.5
Net decrease in short-term debt (0.5) (1.5)
Net cash used in financing
activities (5.1) (24.8)
Effect of exchange rate changes on
cash and cash equivalents (4.4) (0.6)
Net increase (decrease) in cash and
cash equivalents 22.8 (21.5)
Cash and cash equivalents at
beginning of period 90.9 45.0
Cash and cash equivalents at end of
period $ 113.7 $ 23.5
Supplemental disclosure:
Loans settled with common stock $ 2.7 $ 0.6
TUPPERWARE CORPORATION
SUPPLEMENTAL INFORMATION
Second Quarter Ended July 2, 2005
Sales Force Statistics (a):
AVG.
Segment DIST. % CHG. ACTIVE % CHG. TOTAL % CHG.
- ------------------------------ ---------- ------ ---------- ------ ---------- ------
Europe 724 4 67,781 3 253,251 7
Asia Pacific 678 (2) 38,043 (7) 298,958 (6)
Latin America 183 (1) 56,414 (5) 236,162 3
North America 301 (16) 28,976 (b) (20) 95,155 (6)
Tupperware 1,886 (2) 191,214 (6) 883,526 --
BeautiControl N.A n/a n/a 37,351 32 113,377 38
Total 1,886 (2) 228,565 (1) 996,903 3
(a) As collected by the Company and provided by distributors and sales
force.
(b) Changed methodology to align with monthly business cycle. Prior year
amounts are restated in computation of percentage change.
UNAUDITED SELECTED FINANCIAL DATA SECOND QUARTER 2005
($ in millions)
Net Debt to Capital
Cash $ 113.7 Ratio (c) 29%
Net Current Receivables 94.0 Equity $ 315.9
Net Inventory 167.4 Capital Expenditures 18.3
Short-Term Debt 2.4 Depreciation and
Long-Term Debt 241.8 Amortization 24.4
(c) Net debt is defined as total debt less cash on hand. Capital is defined
as total debt less cash on hand plus shareholders' equity.
SOURCE Tupperware Corporation
-0- 07/26/2005
/CONTACT: Jane Garrard, Tupperware Corporation, +1-407-826-4522/
/Web site: http://www.tupperware.com
http://www.beauticontrol.com /
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