Exhibit 99.1
TUPPERWARE BRANDS UPDATES OUTLOOK
ORLANDO, Fla., Dec. 13 /PRNewswire-FirstCall/ -- Tupperware Brands (NYSE:
TUP) today updates its 2005 sales and earnings per share outlook and provides
its initial 2006 and long-range sales and earnings guidance.
2005 Outlook
* Sales up 6-7% as reported and in local currency, including 4p.p.
contribution from International Beauty (former Sara Lee Corporation's direct
selling businesses)
* EPS at $1.02-$1.07
- Decrease of 6 cents is due to purchase accounting amortization and
additional re-engineering
* After excluding items, EPS remains at $1.45-$1.50 versus $1.41 last
year; see detail in the Non-GAAP Financial Measures reconciliation schedule
The Company is in the final stages of negotiations with its former parent
company regarding pre-spin-off tax liabilities. It expects to reach an agreement
within the next three months, which may result in a significant income tax
benefit.
2006 Outlook
* Sales $1.75 to $1.8 billion, including approximately $35 million
negative impact from foreign currency
- Tupperware/BeautiControl sales up 2-3% in local currency
- International Beauty organic sales growth of 3-5%
* EPS of $1.41-$1.51, including 10-cent negative impact from foreign
currency
* After excluding items but including negative impact of foreign exchange,
EPS will be up 10-20% to $1.65-$1.75; see detail in the Non-GAAP Financial
Measures reconciliation schedule
* Tax rate estimated at 23-24%
* Capital expenditures about $70 million
* Unallocated expenses of $30-$33 million
* Interest forecasted at $45-$47 million
* Net cash provided by operating activities less capital expenditures at
$85-$90 million
Segment 2006 Outlook
European sales are forecast about even with 2005 in local currency.
Continued growth in emerging and developing markets will be offset by a
difficult comparison from high business-to-business sales in 2005, and a poor
consumer spending environment in Germany. The return on sales is expected to
remain at about 20%.
Asia Pacific and Latin America local currency sales and profit will be up
low-single digit percentages, reflecting continued growth in Mexico, Australia
and the emerging markets, and weakness in Japan.
Tupperware North America sales are anticipated to be down by a single digit
percentage with a lower loss than 2005.
BeautiControl North America sales are expected to increase in the teens on a
percentage basis and generate an improved return on sales.
International Beauty local currency sales are expected to increase by a
mid-single digit percentage, with greater growth in profit from continuing good
results in Mexico and a lower investment in Brazil.
Purchase Accounting
The Company has not completed its purchase accounting. It currently believes
that the only significant allocation of the purchase price to an amortizable
intangible will be to the existing independent sales force. The Company
estimates the total amount of non-cash charges will be $60 million, and about
$25 million of this amount will be amortized over the twelve months through
November 2006. Decreasing amounts are expected to be amortized to expense over
the following seven years.
Long-Term Outlook
* Sales up 5-7% beginning in 2007; increase from previous outlook of 5%
annual growth due to International Beauty acquisition
- 3-4% from beauty expansion
- 1.5-2% from emerging market growth
- 0.5-1.0% from refreshing opportunity, party and products in
developed markets
* Pretax ROS target of 8-9% - Down from previous 10% due to higher
interest expense
The Company will be holding a meeting from 8-10 am today at the Four Seasons
Hotel in New York to discuss the International Beauty acquisition and the 2006
and long-range outlook. The meeting will be webcast and archived at
http://www.tupperware.com .
Tupperware Brands Corporation is a global direct seller of premium,
innovative products across multiple brands and categories through an independent
sales force of approximately 1.9 million. Product brands and categories include
design-centric preparation, storage and serving solutions for the kitchen and
home through the Tupperware brand and personal care and cosmetics products
through its Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo
and Swissgarde brands.
The Company's 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 integration of its
acquired businesses, 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. The
Company does not intend to regularly update forward-looking information.
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 in 2005 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.
The Company has also elected to present financial measures excluding certain
items directly related to its acquisition of the Sara Lee Corporation's direct
selling businesses. The financing of the acquisition necessitated one-time
payments to settle outstanding notes prior to their scheduled maturity dates.
These payments were made in 2005 and will not recur. No amounts representing
incremental interest on the Company's increased debt levels are part of this
exclusion. Additionally, in accounting for the acquisition, the Company expects
to recognize certain definite-lived intangible assets, primarily for the value
of the independent sales forces acquired. The amortization expense of these
assets is expected to continue for up to 8 years. However, based on the
Company's current estimates, this amortization will decline significantly as the
years progress. As such, the Company believes that this non-cash charge will not
be representative in any single year of amounts recorded in prior years or
expected to be recorded in future years. Therefore, they too are excluded from
indicated financial information to also provide a more useful measure for
analysis and predictive purposes.
TUPPERWARE BRANDS CORPORATION
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE
December 13, 2005
($ in millions, except per share amounts)
2005 Outlook 2006 Outlook
Range Range
------------------------- -------------------------
Low High Low High
---------- ---------- ---------- ----------
Income before income taxes $ 63.5 $ 67.5 $ 112.0 $ 120.0
% change from prior year 66% 89%
Income tax $ 1.7 $ 2.4 $ 26.3 $ 28.2
Effective Rate 3% 3% 23% 23%
Net Income (GAAP) $ 61.8 $ 65.1 $ 85.7 $ 91.8
% change from prior year 32% 49%
Adjustments(1):
Land gains (3.4) (3.4) (15.7) (15.7)
Re-engineering costs 14.5 14.5 10.0 10.0
Acquisition Financing
costs/Purchase Accounting 29.5 29.5 25.0 25.0
Income tax(2) (14.7) (14.7) (5.2) (5.2)
Net Income (Adjusted) $ 87.7 $ 91.0 $ 99.8 $ 105.9
% change from prior year 10% 21%
Exchange rate impact(3) (6.9) (6.9) -- --
Net Income (Adjusted and 2005
Restated for currency changes) $ 80.8 $ 84.1 $ 99.8 $ 105.9
% change from prior year 19% 31%
Net income (GAAP) per common share
(diluted) $ 1.02 $ 1.07 $ 1.41 $ 1.51
Net Income (Adjusted) per common
share (diluted) $ 1.45 $ 1.50 $ 1.65 $ 1.75
Average number of diluted shares
(millions) 60.6 60.9
(1) Refer to Non-GAAP Financial Measures section of attached release for
description of adjustment items
(2) Represents income tax impact of adjustments
(3) 2005 restated at December 5, 2005 currency exchange rates
SOURCE Tupperware Brands Corporation
-0- 12/13/2005
/CONTACT: Jane Garrard of Tupperware, +1-407-826-4522/
/Web site: http://www.tupperware.com /
(TUP)