Exhibit 99.1
TUPPERWARE BRANDS REPORTS FIRST QUARTER EARNINGS
ORLANDO, Fla., April 25 /PRNewswire-FirstCall/ -- Tupperware Brands (NYSE:
TUP) today reported first quarter earnings as follows:
First Quarter Summary
* Sales up 30% as reported and 34% in local currency
-- Tupperware/BeautiControl sales down 3% in local currency
-- International Beauty acquired units contributed $120 million
* EPS at 26 cents; ahead of previous guidance of 22-24 cents
-- 4 cents negative impact from foreign exchange v. 2005 (1 cent worse
than prior outlook)
* EPS after adjustments at 36 cents against previous guidance of 35-37 cents
(see detail in the Non-GAAP Financial Measures Reconciliation Schedule)
"We were pleased to finish the quarter in line with our expectations after
adjustments, with positive profit comparisons in all segments, except Europe,"
said Rick Goings, Chairman and CEO. "The quarter included sales growth in our
beauty brand segments, which contributed 39% of total sales this quarter,"
Goings continued.
Tupperware will conduct a conference call tomorrow, Wednesday, April 26, at
10:00 am Eastern time. The conference call will be webcast and archived, along
with a copy of this news release, at http://www.tupperware.com .
First Quarter Segment Highlights
Tupperware Brand Segments
Europe
Sales decreased 11% as reported and 4% in local currency in spite of a
higher active sales force count. This decline was primarily due to a shift in
promotional program sales in Germany and over $4 million less business-to-
business sales. The key emerging markets in the segment, Russia, Turkey and
Poland, performed well with a 34% increase in local currency sales.
Profit was $30.3 million, down $8.2 million or 21% as reported and $5.6
million or 16% in local currency. This decline was a result of the lower sales
and an unfavorable sales mix in Germany.
Asia Pacific and Mexico
Sales were up 2% as reported and in local currency. The key emerging markets
of China, India and Indonesia were up 34%, led by China. Japan was also up
modestly, which was the first increase in sales in 11 quarters, partially offset
by lower sales in Malaysia/Singapore and Tupperware Mexico.
Profit was up $1.5 million as reported and $1.3 million in local currency,
which was better than the sales increase, due to a decline in operating expenses
and lower strategic investment costs.
North America
Sales were down $4.5 million or 12%, due to a decline in the average active
sales force size. The year-over-year decline in active sellers in the first
quarter at 14% improved compared with the fourth quarter 2005 decline of 28%.
The first quarter loss was lower than last year by $0.8 million in spite of
the lower sales and the benefit in the prior year of a $1.6 million reduction in
the LIFO inventory reserve requirement. The lower loss was primarily due to a
higher gross margin percentage from a favorable sales mix and lower promotional
and production costs.
Beauty Brand Segments
International Beauty
Sales during the quarter were $129.0 million, reflecting 1% organic growth.
Fuller Mexico had very strong results, which were partially offset by lower
sales in the Philippines. The sales led to a profit contribution of $6.0
million, which included $6.1 million of purchase accounting amortization.
BeautiControl North America
Sales were up 3% on an 11% improvement in the average active sales force
size. The Company estimates that there was a 6 percentage point adverse impact
on the comparison due to an additional week last year. The sales increase
contributed to a profit improvement of $1.0 million and a return on sales of
11%. The higher return on sales reflected a favorable sales mix and lower costs
throughout the value chain.
Unallocated
Unallocated costs were up from prior year primarily due to an environmental
cost recovery last year along with higher foreign exchange expense.
2006 Outlook
Second Quarter
* Sales at $445-$450 million
-- Tupperware/BeautiControl sales about flat in local currency
-- International Beauty contributing $138-$143 million -- flat to up 4%
organic sales growth
-- $3.0 million negative impact from foreign exchange v. 2005
* EPS of 44-46 cents, including 1 cent negative impact of foreign exchange
v. 2005
* EPS after adjustments at 49-51 cents, a 9-13% increase from prior year
(see detail in the Non-GAAP Financial Measures Outlook Reconciliation
Schedule)
Full Year
* Sales at $1.75 to $1.8 billion
-- no change
-- Tupperware/BeautiControl sales up slightly in local currency
-- International Beauty organic sales growth of 3-5%
-- $8 million negative impact from foreign exchange v. 2005
* EPS of $1.53-$1.63
-- no change; includes
-- 2 cents negative impact from foreign exchange v. 2005
-- V. prior outlook
-- lower re-engineering costs offset by higher purchase accounting
amortization
* EPS after adjustments at $1.72-$1.82, a 15-22% increase from the prior
year
-- no change (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 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 most recent periodic report
as filed in accordance with the Securities Exchange Act of 1934. 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. 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 as indicated. 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 is
recognizing certain definite-lived intangible assets, primarily for the value of
the independent sales forces acquired and has increased 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 Ended 14 Weeks Ended
April 1, April 2,
(In millions, except per share data) 2006 2005
- ---------------------------------------- -------------- --------------
Net sales $ 423.7 $ 326.4
Cost of products sold 148.2 114.5
Gross margin 275.5 211.9
Delivery, sales and administrative
expense 241.2 175.6
Re-engineering and impairment charges 2.1 6.0
Gains on disposal of assets -- 3.4
Operating income 32.2 33.7
Interest income 2.3 0.6
Other income -- 0.1
Interest expense 13.2 4.3
Other expense 0.5 0.3
Income before income taxes 20.8 29.8
Provision for income taxes 4.8 5.9
Net income $ 16.0 $ 23.9
Net income per common share:
Basic $ 0.27 $ 0.41
Diluted $ 0.26 $ 0.40
TUPPERWARE BRANDS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Amounts in millions, except per share)
13 Weeks 14 Weeks
Ended Ended Reported Restated Foreign
April 1, April 2, % % Exchange
2006 2005 Inc (Dec) Inc (Dec) Impact
---------- ---------- ---------- ---------- ----------
SALES
Europe $ 160.1 $ 179.3 (11) (4) $ (11.9)
Asia Pacific and
Mexico 64.4 63.4 2 2 (0.2)
North America 34.7 39.2 (12) (12) 0.2
BeautiControl North
America 35.5 34.6 3 2 --
International Beauty 129.0 9.9 + + 0.6
$ 423.7 $ 326.4 30 34 $ (11.3)
SEGMENT PROFIT (LOSS)
Europe $ 30.3 $ 38.5 (21) (16) $ (2.6)
Asia Pacific and
Mexico 4.4 2.9 51 41 0.2
North America (3.0) (3.8) 19 20 --
BeautiControl North
America 3.8 2.8 36 36 --
International Beauty 6.0 0.2 + + (0.1)
41.5 40.6 2 9 (2.5)
Unallocated expenses (7.7) (4.5) 71
Other income -- 3.4 --
Re-engineering and
impairment charges (2.1) (6.0) (64)
Interest expense, net (10.9) (3.7) +
Income before taxes 20.8 29.8 (30)
Provision for income
taxes 4.8 5.9 (19)
Net income $ 16.0 $ 23.9 (33)
Net income per common
share (diluted) $ 0.26 $ 0.40 (35)
Average number of
diluted shares 61.4 59.8
TUPPERWARE BRANDS CORPORATION
RECONCILIATION
(In millions except per
share data)
13 Weeks Ended April 1, 14 Weeks Ended April 2,
2006 2005
--------------------------------------- ----------------------------------------
Excl Excl
Reported Adj's Adj's Reported Adj's Adj's
---------- ---------- ---------- ---------- ---------- ----------
Segment profit (loss)
Europe $ 30.3 $ 30.3 $ 38.5 $ 38.5
Asia Pacific and Mexico 4.4 4.4 2.9 2.9
North America (3.0) (3.0) (3.8) 0.1(a) (3.7)
BeautiControl North
America 3.8 3.8 2.8 2.8
International Beauty 6.0 6.1(b) 12.1 0.2 --
41.5 6.1 47.6 40.6 0.1 40.7
Unallocated expenses (7.7) (7.7) (4.5) (4.5)
Other income -- -- 3.4 (3.4)(c) --
Re-eng and impairment
chgs (2.1) 2.1(d) -- (6.0) 6.0(d) --
Interest expense, net (10.9) (10.9) (3.7) (3.7)
Income before taxes 20.8 8.2 29.0 29.8 2.7 32.5
Provision for income
taxes 4.8 2.1(e) 6.9 5.9 1.1(e) 7.0
Net income $ 16.0 $ 6.1 $ 22.1 $ 23.9 $ 1.6 $ 25.5
Net income per common
share (diluted) $ 0.26 $ 0.10 $ 0.36 $ 0.40 $ 0.03 $ 0.43
(a) Machinery relocation costs incurred in connection with shift of capacity
from Hemingway, South Carolina to other manufacturing facilities.
(b) Amortization of International Beauty intangibles of $6.1 million.
(c) Pre-tax gain from the sale of land held for development near the Company's
Orlando, Florida headquarters was $3.4 million in the first quarter of 2005.
(d) Pre-tax re-engineering and impairment charges in the first quarter of 2006
of $2.1 million were primarily related to severance costs incurred to reduce
headcount in the Company's Canada, Belgium and Philippines operations. In 2005
re-engineering and impairment charges of $6 million were primarily related to
severance costs incurred to reduce headcount in the Company's Hemingway, South
Carolina manufacturing facility.
(e) Provision for income taxes represents the net tax impact of adjusted
amounts.
See note regarding non-GAAP financial measures in the attached press release.
TUPPERWARE BRANDS CORPORATION
NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE
April 25, 2006
($ in millions, except per share amounts)
Second Quarter
2006 Outlook
Range
Second Quarter -----------------------------
2005 Actual Low High
-------------- ------------ ------------
Income before income taxes $ 31.7 $ 36.0 $ 37.5
% change from prior year 14% 18%
Income tax $ 4.0 $ 8.6 $ 9.0
Effective Rate 12% 24% 24%
Net Income (GAAP) $ 27.7 $ 27.4 $ 28.5
% change from prior year -1% 3%
Adjustments(1):
Land gains -- (4.6) (4.6)
Re-engineering costs (1.3) 1.7 1.7
Acquisition Financing
costs/Purchase Accounting -- 6.1 6.1
Cumulative effect of
accounting change (net of
taxes) -- -- --
Income tax (2) 0.7 (0.4) (0.4)
Net Income (Adjusted) $ 27.1 $ 30.1 $ 31.3
% change from prior year 11% 15%
Exchange rate impact (3) (0.4) -- --
Net Income (Adjusted and 2005
Restated for currency changes) $ 26.7 $ 30.1 $ 31.3
% change from prior year 13% 17%
Net income (GAAP) per common share
(diluted) $ 0.46 $ 0.45 $ 0.46
Net Income (Adjusted) per common
share (diluted) $ 0.45 $ 0.49 $ 0.51
Average number of diluted shares
(millions) 60.5 61.4 61.4
(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
April 25, 2006
($ in millions, except per share amounts)
2006 Outlook
Range
-----------------------------
2005 Actual Low High
------------ ------------ ------------
Income before income taxes and
accounting change $ 65.7 $ 123.9 $ 131.8
% change from prior year 89% 101%
Income tax (benefit) provision $ (20.5) $ 29.2 $ 31.1
Effective Rate -32% 24% 24%
Cumulative effect of accounting
change (net of taxes) 0.8 -- --
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 6.0 6.0
Acquisition Financing
costs/Purchase Accounting 30.8 24.4 24.4
Cumulative effect of
accounting change (net of
taxes) 0.8 -- --
Income tax (2) (36.9) (3.7) (3.7)
Net Income (Adjusted) $ 90.4 $ 106.4 $ 112.4
% change from prior year 18% 24%
Exchange rate impact (3) (1.3) -- --
Net Income (Adjusted and 2005
Restated for currency changes) $ 89.1 $ 106.4 $ 112.4
% change from prior year 19% 26%
Net income (GAAP) per common share
(diluted) $ 1.41 $ 1.54 $ 1.64
Net Income (Adjusted) per common
share (diluted) $ 1.49 $ 1.73 $ 1.83
Average number of diluted shares
(millions) 60.6 61.4 61.4
(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)
Apr. 1, Dec. 31,
(In millions) 2006 2005
- ---------------------------------------- -------------- --------------
Cash and cash equivalents $ 74.2 $ 181.5
Accounts receivable 164.6 149.1
Less allowances for doubtful
accounts (17.7) (17.2)
146.9 131.9
Inventories 244.5 235.1
Deferred income tax benefits, net 67.5 66.8
Non-trade amounts receivable 42.5 32.9
Prepaid expenses 24.5 24.5
Total current assets 600.1 672.7
Deferred income tax benefits, net 170.6 168.4
Property, plant and equipment 1,160.7 1,149.8
Less accumulated depreciation (909.0) (895.3)
251.7 254.5
Long-term receivables, net of
allowances of
$17.3 million at April 1, 2006 and
$17.9 million at December 31, 2005 37.2 37.3
Other Intangible Assets 255.2 261.3
Goodwill 310.2 309.9
Other assets 37.0 36.1
Total assets $ 1,662.0 $ 1,740.2
TUPPERWARE BRANDS CORPORATION
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(UNAUDITED)
(Dollars in millions, except per Apr. 1, Dec. 31,
share amounts) 2006 2005
- ---------------------------------------- -------------- --------------
Accounts payable $ 100.2 $ 105.7
Short-term borrowings and current
portion of long-term debt 0.8 1.1
Accrued liabilities 261.4 347.9
Total current liabilities 362.4 454.7
Long-term debt 740.3 750.5
Accrued post-retirement benefit cost 35.9 35.3
Other liabilities 166.0 164.2
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 29.3 28.4
Subscription receivable (12.3) (12.7)
Retained earnings 578.7 577.4
Treasury Stock, 1,770,484 shares
at April 1, 2006 and 1,935,746
shares at December 31, 2005
at cost (47.2) (51.7)
Unearned portion of restricted
stock issued for future service (6.0) (6.4)
Accumulated other comprehensive
loss (185.7) (200.1)
Total shareholders' equity 357.4 335.5
Total liabilities and
shareholders' equity $ 1,662.0 $ 1,740.2
TUPPERWARE BRANDS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
13 weeks ended 14 weeks ended
April 1, April 2,
(In millions) 2006 2005
- ---------------------------------------- -------------- --------------
OPERATING ACTIVITIES
Net income $ 16.0 $ 23.9
Adjustments to reconcile net
income to net
cash provided by operating
activities:
Depreciation and amortization 19.1 13.0
Amortization of restricted
stock compensation 0.6 0.1
Amortization of revolver fees 1.0 --
Net loss (gain) on disposal
of assets 0.4 (3.3)
Provision for bad debts 0.5 1.4
Net impact of writedown of
inventories and change
in LIFO reserve 1.2 (1.3)
Increase in net deferred
income taxes (0.7) (0.3)
Stock option expense 0.9 0.6
Changes in assets and
liabilities:
(Increase) decrease in accounts
receivable (15.0) 2.3
Increase in inventories (9.7) (6.1)
(Increase) decrease in non-
trade amounts receivable (3.1) 3.4
Decrease (increase) in prepaid
expenses 0.1 (2.4)
Decrease in other assets 0.5 0.7
Decrease in accounts payable
and
accrued liabilities (8.3) (30.9)
(Decrease) increase in income
taxes payable (6.8) 2.2
Increase in other liabilities 6.4 1.6
Net cash impact from hedging
activity 0.7 2.2
Other 0.4 0.2
Net cash provided by operating
activities 4.2 7.3
INVESTING ACTIVITIES
Capital expenditures (12.4) (9.4)
Purchase of International Beauty,
net of acquired cash (79.8) --
Proceeds from disposal of
property, plant & equipment 0.7 6.6
Net cash used in investing
activities (91.5) (2.8)
FINANCING ACTIVITIES
Dividend payments to shareholders (13.3) (12.9)
Proceeds from exercise of stock
options 3.0 10.9
Proceeds from payments of
subscriptions receivable 0.1 0.2
Repayment of long-term debt (10.0) --
Net (decrease) increase in short-
term debt (0.7) 2.2
Net cash (used in) provided by
financing activities (20.9) 0.4
Effect of exchange rate changes on
cash and cash equivalents 0.9 (1.1)
Net (decrease) increase in cash and
cash equivalents (107.3) 3.8
Cash and cash equivalents at
beginning of year 181.5 90.9
Cash and cash equivalents at end of
year $ 74.2 $ 94.7
Supplemental disclosure:
Loans settled with common stock $ 0.3 $ 0.8
TUPPERWARE BRANDS CORPORATION
SUPPLEMENTAL INFORMATION
First Quarter Ended April 1, 2006
Sales Force Statistics (a):
AVG.
Segment DIST. % CHG. ACTIVE % CHG. TOTAL % CHG.
- ------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Europe 754 5 79,654 17 287,096 18
Asia Pacific and Mexico 699 (4) 65,931 (2) 400,912 4
North America n/a --(b) 21,221 (14) 79,607 (20)
Tupperware 1,453 1 166,806 4 767,615 5
BeautiControl North
America n/a n/a 38,817 11 105,827 14
International Beauty 130 (6) 512,032 + 990,879 +
Total 1,583 -- 717,655 + 1,864,321 91
(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.
UNAUDITED SELECTED FINANCIAL DATA FIRST QUARTER 2006
($ in millions)
Cash $ 74.2
Net Current Receivables 146.9
Net Inventory 244.5
Short-Term Debt 0.8
Long-Term Debt 740.3
Total Debt to
Capital Ratio (c) 67%
Equity $ 357.4
Capital
Expenditures 12.4
Depreciation and
Amortization 19.1
(c) Capital is defined as total debt plus shareholders' equity.
SOURCE Tupperware Corporation
-0- 04/25/2006
/CONTACT: Jane Garrard, Tupperware, +1-407-826-4522 /
/Web site: http://www.tupperware.com /
(TUP)
MD-MR
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