Exhibit 99.1
TUPPERWARE BRANDS REPORTS FOURTH QUARTER EARNINGS AND RAISES 2006 OUTLOOK
ORLANDO, Fla., Jan. 30 /PRNewswire-FirstCall/ -- Tupperware Brands (NYSE:
TUP) today reported fourth quarter and full-year earnings as follows:
Fourth Quarter Summary
* Sales up 1% as reported and 5% in local currency
* EPS at 51 cents including 6 cents negative impact v. 2004 from foreign
currency. Previous guidance was 12 to 17 cents
- Includes 41 cents not in previous guidance from settlement of pre-
1996 taxes
* After adjustments, EPS was 54 cents versus previous guidance of 50 to 55
cents (see detail in the Non-GAAP Financial Measures Reconciliation
Schedule)
- Includes 4 cents positive impact from year-end tax planning
Full Year Summary
* Sales up 4% as reported and in local currency
* EPS at $1.41
* After adjustments, EPS was up 6% to $1.49 (see detail in the Non-GAAP
Financial Measures Reconciliation Schedule)
"We were pleased to achieve full-year growth in both local currency sales
and EPS after adjustments," said Rick Goings, Chairman and CEO. "We look forward
to progress in 2006 as we continue to expand beauty through our recent
acquisition and BeautiControl. We will also be capitalizing on our other
strategic growth initiatives that include developing the business in our
emerging markets and refreshing the party, opportunity and products," Goings
continued.
Tupperware will conduct a conference call tomorrow, January 31, at 10:00 am
Eastern time. The conference call will be simulcast and archived, along with a
copy of this news release, at http://www.tupperware.com .
Fourth Quarter Segment Highlights
Europe
Sales decreased 12% as reported and 5% in local currency in spite of a
higher active sales force count due to lower sales force productivity. The
shortfall was mainly in Germany although there was a sales force size advantage
as of year end.
Profit was down $12.8 million or 25% as reported and $8.9 million or 19% in
local currency. The profit decline was more than the sales decline due to higher
operating expenses and a lower gross margin percentage.
Asia Pacific
Sales were up 4% as reported and 8% in local currency. This comparison
benefited from the inclusion in 2004 of a product recall of $5.5 million, at the
current foreign exchange rate. The quarter included significant sales increases
in China and Korea offset by decreases in Japan and the Philippines.
Profit was up 11% as reported and 14% in local currency, which was better
than the sales increase, due to improvements in manufacturing capacity
utilization and the Japanese value chain.
Latin America
Sales were up 8% as reported and 2% in local currency. Profit was down about
$1.0 million, both as reported and in local currency, reflecting strategic
investments to expand BeautiControl in Mexico along with an unfavorable sales
mix.
North America
Sales were down $18.4 million including a $3 million decline due to a shift
in the promotional calendar that moved sales from the fourth quarter into the
third quarter compared with last year.
Profit improved 33% due to value chain improvements and a $0.4 million
positive impact from reduction of LIFO inventory reserve requirements. In the
fourth quarter, there were $5.6 million of restructuring costs primarily related
to U.S. warehousing and distribution.
BeautiControl North America
Sales were up 5% due to a larger sales force than last year. The rate of
growth was slower than prior quarters due to a difficult comparison against a
37% increase last year, a shift in the calendar and the impact from hurricanes.
The sales force leadership pipeline is strong and the sales force size
advantage was 20% at the end of 2005 versus 2004. Profit improved in the quarter
61%, ahead of the increase in sales, due to an improved gross margin and lower
selling costs.
International Beauty
Sales and profit contribution after the December 5th closing were $37.9
million and $0.9 million, respectively, including $1.8 million of purchase
accounting amortization.
Sales and profit were strong in Mexico and South Africa, partially offset by
some weakness in Australia and the Philippines. After considering incremental
interest expense related to the acquisition, this segment had little net impact
on fourth quarter earnings.
Liquidity
The year-end cash balance was $182 million. The relatively high cash balance
reflected about $120 million associated with the International Beauty
acquisition that will be paid out in 2006.
The year-end debt balance was $753 million. Shortly before the end of
December, the Company made a prepayment of $30 million on its term loans with a
portion of the proceeds received in connection with settling its pre-1996 income
taxes. The year-end 2005 debt to total capital ratio was 69%.
2006 Outlook
* Sales $1.75 to $1.8 billion
- Tupperware/BeautiControl sales up slightly
- International Beauty organic sales growth of 3-5%
* EPS of $1.53-$1.63, including 3-cents negative impact from foreign
currency v. 2005
- Raised 12 cents v. previous guidance due to weaker U.S. dollar and
lower purchase accounting amortization
* After adjustments, but including negative impact of foreign exchange, EPS
will be up about 20% to $1.72-$1.82 (see detail in the Non-GAAP Financial
Measures Outlook Reconciliation schedule)
2006 Segment Outlook
In 2006, the company will begin reporting segments as follows in order to
incorporate the post-acquisition management structure.
Europe (no change in composition of reporting segment)
2006 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. The return on
sales is expected to remain at about 20%.
Asia Pacific and Mexico (continues to include Tupperware and BeautiControl
within these geographies)
Local currency sales and profit are expected to be up low-single digit
percentages in 2006, reflecting continued growth in Australia, Mexico, China and
weakness in Japan.
North America (no change in composition of reporting segment)
Tupperware North America sales are anticipated to be down by a single digit
percentage in 2006 with a lower loss than 2005.
BeautiControl North America (no change in composition of reporting segment)
Sales in 2006 are expected to increase by a double-digit percentage and
generate an improved return on sales.
International Beauty (includes acquired businesses along with Tupperware
Central and South America and the Philippines)
Local currency sales are expected to increase organically by 3-5%, with
greater growth in profit from continuing good results in Mexico and a lower
investment in South America.
First Quarter 2006
* Sales at $425-435 million, including approximately $11.0 million negative
impact from foreign currency v. 2005
- Tupperware/BeautiControl sales down slightly in local currency
- International Beauty contributing $115-$120 million
* EPS of 22-24 cents, including 3-cents negative impact of foreign exchange
v. 2005
* After adjustments, but including the negative impact of foreign exchange,
EPS of 35-37 cents (see detail in the Non-GAAP Financial Measures Outlook
Reconciliation Schedule)
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 beauty and personal care 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 and to increase the carrying value of
other depreciable assets. The amortization expense of these assets will continue
for several 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 are excluded from indicated financial information
to also provide a more useful measure for analysis and predictive purposes.
Finally, the Company will not have future significant tax-related settlements
with its former parent company, and accordingly has excluded the benefit of its
2005 settlement from indicated financial information.
TUPPERWARE BRANDS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
13 Weeks 13 Weeks 53 Weeks 52 Weeks
Ended Ended Ended Ended
(In millions, except per share December December December December
data) 31, 2005 25, 2004* 31, 2005 25, 2004*
- ----------------------------------- ---------- ---------- ---------- ----------
Net sales $ 361.8 $ 357.7 $ 1,279.3 $ 1,224.3
Cost of products sold 131.5 128.1 456.2 425.4
Gross margin 230.3 229.6 823.1 798.9
Delivery, sales and
administrative expense 187.4 182.4 699.0 688.8
Re-engineering and impairment
charges 8.9 4.5 16.7 7.0
Gains on disposal of assets 0.6 1.5 4.0 13.1
Operating income 34.6 44.2 111.4 116.2
Interest income 1.6 0.5 3.8 1.9
Other income -- 0.7 0.5 1.0
Interest expense 33.0 4.3 48.9 14.9
Other expense 0.6 0.4 1.1 2.2
Income before income taxes 2.6 40.7 65.7 102.0
Provision for income taxes (29.4) 4.9 (20.5) 15.1
Net income before accounting
change 32.0 35.8 86.2 86.9
Cumulative effect of accounting
change (net of income taxes of
$0.4 million) (0.8) -- (0.8) --
Net income $ 31.2 $ 35.8 $ 85.4 $ 86.9
Basic earnings per share:
Before accounting change 0.55 0.61 1.46 1.49
Cumulative effect of
accounting change (0.01) -- (0.01) --
$ 0.54 $ 0.61 $ 1.45 $ 1.49
Diluted earnings per share:
Before accounting change 0.52 0.61 1.42 1.48
Cumulative effect of
accounting change (0.01) -- (0.01) --
$ 0.51 $ 0.61 $ 1.41 $ 1.48
* Certain prior year amounts have been reclassified on the consolidated
statements of income to conform with current year presentation.
TUPPERWARE BRANDS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
13 Weeks 13 Weeks
Ended Ended Reported Restated Foreign
(Amounts in millions, December December % % Exchange
except per share) 31, 2005 25, 2004 Inc (Dec) Inc (Dec) Impact
- ---------------------------- ---------- ---------- ---------- ---------- ----------
SALES
Europe $ 160.0 $ 181.8 (12) (5) $ (13.7)
Asia Pacific 63.0 60.5 4 8 (2.0)
Latin America 29.9 27.8 8 2 1.5
North America 35.2 53.6 (34) (34) 0.2
BeautiControl
North America 35.8 34.0 5 5 --
International Beauty 37.9 -- + + --
$ 361.8 $ 357.7 1 5 $ (14.0)
SEGMENT PROFIT (LOSS)
Europe $ 37.6 $ 50.4 (25) (19) $ (3.9)
Asia Pacific 9.7 8.7 11 14 (0.2)
Latin America 2.1 3.2 (35) (37) 0.1
North America (3.8) (5.8) 33 33 --
BeautiControl
North America 6.0 3.8 61 61 --
International Beauty 0.9 -- + + --
52.5 60.3 (13) (8) $ (4.0)
Unallocated expenses (9.6) (12.7) (25)
Hedge income (costs) (0.6) (0.1) +
Other income 0.6 1.5 (65)
Re-engineering and
impairment charges (8.9) (4.5) +
Interest expense, net (31.4) (3.8) +
Income before taxes 2.6 40.7 (94)
Provision for income
taxes (29.4) 4.9 --
Net income before
accounting change 32.0 35.8 (11)
Cumulative effect of
accounting change
(net of income taxes of
$0.4 million) (0.8) -- +
Net income $ 31.2 $ 35.8 (13)
Net income per common
share (diluted)
Before accounting
change 0.52 0.61 (15)
Cumulative effect of
accounting change (0.01) -- +
$ 0.51 $ 0.61 (16)
Average number of diluted
shares 61.2 58.9
53 Weeks 52 Weeks
Ended Ended
December December Reported Restated Foreign
31, 25, % % Exchange
2005 2004 Inc (Dec) Inc (Dec) Impact
---------- ---------- ---------- ---------- ----------
SALES
Europe $ 600.3 $ 597.0 1 1 $ (1.3)
Asia Pacific 214.5 208.6 3 2 1.6
Latin America 121.3 105.5 15 11 3.6
North America 158.6 195.0 (19) (19) 1.2
BeautiControl
North America 146.7 118.2 24 24 0.1
International Beauty 37.9 -- + + --
$ 1,279.3 $ 1,224.3 4 4 $ 5.2
SEGMENT PROFIT (LOSS)
Europe $ 116.4 $ 133.4 (13) (12) $ (1.1)
Asia Pacific 20.0 20.8 (4) (5) 0.3
Latin America 10.9 10.4 5 4 --
North America (10.4) (31.0) 66 66 --
BeautiControl
North America 14.0 8.0 76 76 --
International Beauty 0.9 -- + + --
151.8 141.6 7 7 $ (0.8)
Unallocated expenses (28.2) (30.9) (9)
Hedge income (costs) (0.1) (1.8) --
Other income 4.0 13.1 (70)
Re-engineering and
impairment charges (16.7) (7.0) +
Interest expense, net (45.1) (13.0) +
Income before taxes 65.7 102.0 (36)
Provision for income
taxes (20.5) 15.1 --
Net income before
accounting change 86.2 86.9 (1)
Cumulative effect of
accounting change
(net of income taxes
of $0.4 million) (0.8) -- +
Net income $ 85.4 $ 86.9 (2)
Net income per common
share (diluted)
Before accounting
change 1.42 1.48 (4)
Cumulative effect of
accounting change (0.01) -- +
$ 1.41 $ 1.48 (5)
Average number of diluted
shares 60.6 58.8
TUPPERWARE BRANDS CORPORATION
RECONCILIATION
(In millions except per share data)
13 Weeks Ended 13 Weeks Ended
December 31, December 25,
2005 2004
------------------------ ---------------------------
Excl Excl
Reported Adj's Adj's Reported Adj's Adj's
---------- ---------- ---------- ---------- ---------- ----------
Segment profit (loss)
Europe $ 37.6 0.6a $ 38.2 $ 50.4 $ 50.4
Asia Pacific 9.7 -- 9.7 8.7 8.7
Latin America 2.1 0.1a 2.2 3.2 3.2
North America (3.8) (0.3)b (4.1) (5.8) (5.8)
BeautiControl
North America 6.0 -- 6.0 3.8 3.8
International Beauty 0.9 1.8c 2.7 -- --
52.5 2.2 54.7 60.3 -- 60.3
Unallocated expenses (9.6) 0.5d (9.1) (12.7) (12.7)
Hedge costs (0.6) -- (0.6) (0.1) (0.1)
Other income 0.6 (0.6)f -- 1.5 (1.5)f --
Re-eng and impairment
chgs (8.9) 8.9e -- (4.5) 4.5e --
Interest expense, net (31.4) 25.5g (5.9) (3.8) (3.8)
Income before taxes 2.6 36.5 39.1 40.7 3.0 43.7
Provision for
income taxes (29.4) 35.4h 6.0 4.9 1.0 h 5.9
Net income before
accounting change 32.0 1.1 33.1 35.8 2.0 37.8
Cumulative effect of
accounting change
(net of income taxes
of $0.4 million) (0.8) 0.8 -- -- -- --
Net income $ 31.2 $ 1.9 $ 33.1 $ 35.8 $ 2.0 $ 37.8
Net income per common
share (diluted)
Before
accounting
change 0.52 0.02 0.54 0.61 0.03 0.64
Cumulative
effect of
accounting
change (0.01) 0.01 -- -- -- --
$ 0.51 $ 0.03 $ 0.54 $ 0.61 $ 0.03 $ 0.64
53 Weeks Ended 52 Weeks Ended
December 31, December 25,
2005 2004
-------------------------------------- --------------------------------------
Excl Excl
Reported Adj's Adj's Reported Adj's Adj's
---------- ---------- ---------- ---------- ---------- ----------
Segment profit (loss)
Europe $ 116.4 0.9a $ 117.3 $ 133.4 $ 133.4
Asia Pacific 20.0 0.5a 20.5 20.8 20.8
Latin America 10.9 0.6a 11.5 10.4 10.4
North America (10.4) (4.4)b (14.8) (31.0) (31.0)
BeautiControl
North America 14.0 14.0 8.0 8.0
International Beauty 0.9 1.8c 2.7
151.8 (0.6) 151.2 141.6 -- 141.6
Unallocated expenses (28.2) 0.5d (27.7) (30.9) (30.9)
Hedge costs (0.1) (0.1) (1.8) (1.8)
Other income 4.0 (4.0)f -- 13.1 (13.1)f --
Re-eng and impairment
chgs (16.7) 16.7e -- (7.0) 7.0e --
Interest expense, net (45.1) 28.6g (16.5) (13.0) (13.0)
Income before taxes 65.7 41.2 106.9 102.0 (6.1) 95.9
Provision for
income taxes (20.5) 36.9h 16.4 15.1 (2.5)h 12.6
Net income before
accounting change 86.2 4.3 90.5 86.9 (3.6) 83.3
Cumulative effect of
accounting change
(net of income taxes
of $0.4 million) (0.8) 0.8 -- -- -- --
Net income $ 85.4 $ 5.1 $ 90.5 $ 86.9 $ (3.6) $ 83.3
Net income per common
share (diluted)
Before
accounting change 1.42 0.07 1.49 1.48 (0.07) 1.41
Cumulative effect
of accounting
change (0.01) 0.01 -- -- -- --
$ 1.41 $ 0.08 $ 1.49 $ 1.48 $ (0.07) $ 1.41
(a) Primarily machinery relocation costs incurred in connection with shift of
capacity from Hemingway, South Carolina to other manufacturing facilities.
(b) Reduction of LIFO inventory reserve requirements primarily from shift of
capacity from Hemingway, South Carolina to other manufacturing facilities
which report inventory on the FIFO basis of accounting were $0.4 million in
the fourth quarter and $5.6 million YTD. Offsetting these amounts were
costs of $0.1 million in the fourth quarter and $1.2 million YTD related to
the transfer of machinery and equipment to the other manufacturing
facilities.
(c) Amortization of International Beauty (Sara Lee Corporation direct selling
beauty business) intangibles of $1.8 million.
(d) Discrete internal costs associated with the acquisition of International
Beauty.
(e) The YTD re-engineering and impairment charges of $16.7 million included
$10.2 million primarily related to severance costs incurred to reduce
headcount in the Company's South Carolina, Orlando, Australian mold making,
Belgium, France and Portugal operations, of which $2.4 million was recorded
in the fourth quarter, and $6.5 million for impairment charges related to
facilities in the United States, all of which was recorded in the fourth
quarter. Pre- tax re-engineering and impairment charges for 2004 of $7.0
million YTD included $2.6 million primarily related to severance costs
incurred to reduce headcount in the Company's United States, Philippines,
Japan, Korea, New Zealand and Mexico operations, of which $0.9 million was
recorded in the fourth quarter. In addition, $0.8 million related to asset
impairments in the Philippines manufacturing operation were recorded for
December YTD 2004 and $0.4 million related to asset impairments in the
United States were recorded in the fourth quarter and December YTD 2004.
These charges also included $3.2 million related to the liquidation of a
foreign finance subsidiary in the fourth quarter of 2004.
(f) Other income of $0.6 million for the fourth quarter and $4.0 million
December YTD 2005 were gains on sale of land held for development near the
Company's Orlando, Florida headquarters ("land sales"). During 2004, pretax
gains from land sales were $11.6 million and were recorded in other income.
In addition to gains from the land sales in 2004, gains related to
insurance recoveries for hurricane damage were $1.5 million for the fourth
quarter and December YTD 2004.
(g) During the fourth quarter the Company was required to pay a make- whole
payment of $21.9 million for the call of its $150 million notes in
connection with entering into new financing arrangements for the
acquisition of International Beauty and $6.8 million for the discharge of
obligations related to $100 million of bonds due in 2006. A credit of $3.2
million to recognize a deferred gain on an interest rate swap offset the
quarter expenses. Year-to-date interest expense also included $3.1 million
due to the early termination of an interest rate hedge agreement. This
agreement was no longer an effective hedge due to a refinancing of the
Company's debt associated with the acquisition of International Beauty.
(h) Provision for income taxes represents the net tax impact of adjusted items
and $25.1 million for a favorable settlement of pre-1996 taxes in 2005.
See note regarding non-GAAP financial measures in the attached press
release.
TUPPERWARE BRANDS CORPORATION
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE
January 30, 2006
($ in millions, except per share amounts)
First
Quarter
2006 Outlook
First Range
Quarter -----------------------
2005 Actual Low High
------------ ---------- ----------
Income before income taxes $ 29.8 $ 17.5 $ 19.0
% change from prior year -41% -36%
Income tax $ 5.9 $ 3.9 $ 4.1
Effective Rate 19% 22% 22%
Net Income (GAAP) $ 23.9 $ 13.7 $ 14.9
% change from prior year -43% -38%
Adjustments(1):
Land gains (3.4) -- --
Re-engineering costs 6.1 6.2 6.2
Acquisition Financing
costs/Purchase Accounting -- 5.0 5.0
Cumulative effect of
accounting change (net of
taxes) -- -- --
Income tax(2) (1.1) (3.1) (3.1)
Net Income (Adjusted) $ 25.5 $ 21.7 $ 23.0
% change from prior year -15% -10%
Exchange rate impact(3) (1.8) -- --
Net Income (Adjusted and 2005
Restated for currency changes) $ 23.7 $ 21.7 $ 23.0
% change from prior year -8% -3%
Net income (GAAP) per common share
(diluted) $ 0.40 $ 0.22 $ 0.24
Net Income (Adjusted) per common
share (diluted) $ 0.43 $ 0.35 $ 0.37
Average number of diluted shares
(millions) 59.8 61.7 61.7
(1) Refer to Non-GAAP Financial Measures section of attached release for
description of the general nature of adjustment items
(2) Represents income tax impact of adjustments
(3) 2005 restated at current currency exchange rates
TUPPERWARE BRANDS CORPORATION
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE
January 30, 2006
($ in millions, except per share amounts)
2006 Outlook
Range
-----------------------
2005 Actual Low High
------------ ---------- ----------
Income before income taxes $ 64.5 $ 123.9 $ 131.8
% change from prior year 92% 104%
Income tax $ (20.9) $ 29.2 $ 31.1
Effective Rate -33% 24% 24%
Net Income (GAAP) $ 85.4 $ 94.7 $ 100.7
% change from prior year 11% 18%
Adjustments(1):
Land gains (4.0) (15.0) (15.0)
Re-engineering costs 14.3 10.0 10.0
Acquisition Financing
costs/Purchase Accounting 30.8 20.0 20.0
Cumulative effect of
accounting change (net of
taxes) 0.8 -- --
Income tax (2) (36.9) (3.6) (3.6)
Net Income (Adjusted) $ 90.4 $ 106.1 $ 112.1
% change from prior year 17% 24%
Exchange rate impact (3) (1.7) -- --
Net Income (Adjusted and 2005
Restated for currency changes) $ 88.7 $ 106.1 $ 112.1
% change from prior year 20% 26%
Net income (GAAP) per common share
(diluted) $ 1.41 $ 1.53 $ 1.63
Net Income (Adjusted) per common
share (diluted) $ 1.49 $ 1.72 $ 1.82
Average number of diluted shares
(millions) 60.6 61.7 61.7
(1) Refer to Non-GAAP Financial Measures section of attached release
for description of the general nature of adjustment items
(2) Represents income tax impact of adjustments
(3) 2005 restated at current currency exchange rates
TUPPERWARE BRANDS CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS
(UNAUDITED)
Dec. 31, Dec. 25,
(In millions) 2005 2004
- ---------------------------------------- ---------- ----------
Cash and cash equivalents $ 181.5 $ 90.9
Accounts receivable 149.1 119.0
Less allowances for doubtful accounts (17.2) (15.0)
131.9 104.0
Inventories 229.6 163.0
Deferred income tax benefits, net 59.6 59.4
Non-trade amounts receivable 32.3 35.8
Prepaid expenses 29.1 12.9
Total current assets 664.0 466.0
Deferred income tax benefits, net 162.1 160.5
Property, plant and equipment 1,149.8 1,131.2
Less accumulated depreciation (895.3) (915.2)
254.5 216.0
Long-term receivables, net of allowances
of $17.9 million at December 31, 2005
and $25.7 million at December 25, 2004 37.3 42.6
Other Intangible Assets 258.6 --
Goodwill 252.9 56.2
Other assets 35.0 41.9
Total assets $ 1,664.4 $ 983.2
TUPPERWARE BRANDS CORPORATION
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(UNAUDITED)
(Dollars in millions, except per Dec. 31, Dec. 25,
share amounts) 2005 2004
- ---------------------------------------- ---------- ----------
Accounts payable $ 105.7 $ 91.0
Short-term borrowings and current
portion of long-term debt 2.3 2.6
Accrued liabilities 322.9 198.5
Total current liabilities 430.9 292.1
Long-term debt 750.9 246.5
Accrued post-retirement benefit cost 35.3 35.3
Other liabilities 111.5 118.4
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 28.4 25.6
Subscription receivable (12.7) (18.7)
Retained earnings 577.4 560.9
Treasury Stock, 1,935,746 shares
at December 31, 2005 and 3,542,135
shares at December 25, 2004 at cost (51.7) (96.8)
Unearned portion of restricted
stock issued for future service (6.4) (2.9)
Accumulated other comprehensive loss (199.8) (177.8)
Total shareholders' equity 335.8 290.9
Total liabilities and shareholders'
equity $ 1,664.4 $ 983.2
TUPPERWARE BRANDS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
53 weeks ended 52 weeks ended
December 31, December 25,
(In millions) 2005 2004
- ---------------------------------------- -------------- --------------
OPERATING ACTIVITIES
Net income $ 85.4 $ 86.9
Adjustments to reconcile net
income to net cash provided
by operating activities 88.0 56.4
Other balance sheet changes (5.8) (21.9)
Net cash provided by operating
activities 167.6 121.4
INVESTING ACTIVITIES
Capital expenditures (52.0) (43.6)
Purchase of International Beauty,
net of acquired cash (464.3) --
Proceeds from disposal of
property, plant & equipment 8.0 16.6
Payment to terminate interest
rate hedge (3.1) --
Net cash used in investing
activities (511.4) (27.0)
FINANCING ACTIVITIES
Dividend payments to shareholders (52.4) (51.5)
Proceeds from exercise of stock
options 30.2 4.1
Proceeds from payments of
subscriptions receivable 0.6 1.5
Net proceeds from issuance of
term debt 762.5 --
Payments on term debt (30.0) --
Settlement of long-term notes (277.9) --
Net decrease in short-term debt (0.9) (4.2)
Net cash provided by (used in)
financing activities 432.1 (50.1)
Effect of exchange rate changes on
cash and cash equivalents 2.3 1.6
Net increase in cash and cash
equivalents 90.6 45.9
Cash and cash equivalents at
beginning of period 90.9 45.0
Cash and cash equivalents at end of
period $ 181.5 $ 90.9
Supplemental disclosure:
Loans settled with common stock $ 5.6 $ 0.7
TUPPERWARE BRANDS CORPORATION
SUPPLEMENTAL INFORMATION
Fourth Quarter Ended December 31, 2005
Sales Force Statistics (a):
Segment DIST. % CHG. AVG. ACTIVE % CHG. TOTAL % CHG.
- -------------------- ------------ ------------ ------------ ------------ ------------ ------------
Europe 743 4 68,946 6 272,306 13
Asia Pacific 690 -- 36,388 (13) 306,462 1
Latin America 173 (7) 59,497 9 246,091 4
North America n/a --(b) 21,978(c) (28) 82,922 (20)
Tupperware 1,606 -- 186,809 (3) 907,781 2
BeautiControl N.A. n/a n/a 37,421 17 102,621 20
International Beauty n/a n/a n/a n/a 883,998 +
Total 1,606 1 224,230 -- 1,894,400 95
(a) As collected by the Company and provided by distributors and sales
force.
(b) North America distributor counts are no longer applicable due to the
implementation of a new compensation plan.
(c) Changed methodology to align with monthly business cycle. Prior year
amounts are restated in computation of percentage change
UNAUDITED SELECTED FINANCIAL DATA FOURTH QUARTER 2005
($ in millions)
Total Debt to
Cash $ 181.5 Capital Ratio (d) 69%
Net Current
Receivables 131.9 Equity $ 335.8
Capital
Net Inventory 229.6 Expenditures 52.0
Depreciation and
Short-Term Debt 2.3 Amortization 49.0
Long-Term Debt 750.9
(d) Capital is defined as total debt plus shareholders' equity.
SOURCE Tupperware Corporation
-0- 01/30/2006
/CONTACT: Jane Garrard, Tupperware Brands Corporation, +1-407-826-4522/
/Web site: http://www.tupperware.com /