Coca-Cola Bottling reports Q4 net earnings of US$1.8M, down 52.6% from year-ago period amid US$1.3M in after-tax losses; net sales up 5.2% to US$372.9M

Nevin Barich

CHARLOTTE, North Carolina , March 7, 2012 (press release) – Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE - News) today announced it earned $28.6 million, or basic net income per share of $3.11, on net sales of $1.56 billion for fiscal 2011, compared to net income of $36.1 million, or basic net income per share of $3.93, on net sales of $1.51 billion for fiscal 2010. The results for 2011 included $4.1 million of after-tax losses ($6.8 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges and $0.6 million of net after-tax losses related to changes in reserves for uncertain tax positions and other income tax changes. The results for 2010 included $3.2 million of after-tax losses ($5.2 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges, $0.5 million of after-tax gains ($0.9 million on a pre-tax basis) from insurance recoveries on assets lost or damaged due to the Nashville, Tennessee area flood in May 2010, a $0.5 million increase in tax expense due to the change in tax law eliminating the tax deduction previously available for Medicare Part D subsidies, and $1.5 million of net after-tax gains related to changes in reserves for uncertain tax positions and other income tax changes.

On a comparable basis, the Company earned $33.3 million in fiscal 2011, or comparable basic net income per share of $3.62, versus $37.7 million in fiscal 2010, or comparable basic net income per share of $4.11.

This non-GAAP financial information is provided to allow investors to more clearly evaluate operating performance and business trends on a comparable basis for fiscal 2011 and 2010. Management uses this information to review results after excluding items that are not necessarily indicative of ongoing results.

The Company earned $1.8 million, or basic net income per share of $0.20, on net sales of $372.9 million in the fourth quarter of 2011, compared to net income of $3.8 million, or basic net income per share of $0.42, on net sales of $354.4 million in the fourth quarter of 2010. The fourth quarter of 2011 results included $1.6 million of after-tax losses ($2.6 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges and $1.3 million of after-tax losses related to other income tax changes. The fourth quarter of 2010 results included $0.5 million of after-tax losses ($0.7 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges and $0.2 million of after-tax losses related to other income tax changes.

On a comparable basis, the Company earned $4.7 million in the fourth quarter of 2011, or comparable basic net income per share of $0.51, versus $4.4 million in the fourth quarter of 2010, or comparable basic net income per share of $.48.

This non-GAAP financial information is provided to allow investors to more clearly evaluate operating performance and business trends on a comparable basis for the fourth quarter of 2011 and 2010. Management uses this information to review results after excluding items that are not necessarily indicative of ongoing results.

J. Frank Harrison, III, Chairman and CEO, said, “We are pleased to report another year of solid results. The Company was able to increase revenue by over three percent and grow volume and market share. 2011 presented many challenges including an economy that has continued to recover slowly coupled with significant increases in the cost of key commodities and raw materials. Our focus on market execution, process innovation and strong expense management were all instrumental in driving our results in 2011. We continue to deliver value for our customers and stockholders and provide consumers with the products they want. Our success is also attributable to the outstanding work of our employees and the work they do with our customers and consumers and in their communities.”

William B. Elmore, President and COO, added, “Our results for 2011 reflect another year of solid performance in a difficult operating environment. We saw significant increases in our cost of goods and a value oriented consumer whose weak buying power made it challenging to pass along these costs. Working with our customers, we continued to innovate to bring good value to the consumer. We introduced new packaging during 2011 including the 12.5-ounce package for the immediate consumption market and the 1.25-liter package for the take-home market. Both of these new packages are directed toward the value oriented consumer and played an important role in our portfolio. The challenges of the past few years will persist in 2012, including sustained increases in raw material costs. As always, we are committed to offering products our customers want at competitive prices.”

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