Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016...
Transcript of Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016...
Earnings Release July 20, 2016
Second Quarter 2016
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Forward looking statements
We are making some forward looking statements today that use
words like “outlook” or “target” or similar predictive words. Such
forward looking statements involve risks and uncertainties detailed in
our recent periodic reports as filed in accordance with the Securities
and Exchange Act of 1934. These risks and uncertainties may cause
actual results to differ materially from our statements today.
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Second Quarter Highlights
• Sales down 4% in dollars
• Sales up 3% in local currency (high-end of range)
• Emerging markets, +7% (66% of sales)
• Established markets, -4% (34% of sales)
• Adjusted EPS of $1.16. Up 8% in local currency, 4 cents over
high end of guidance range, down 4% in dollars
• Returned $34M to shareholders through dividends
• Total Sales Force count up 5% year-over-year
• Active Sellers down 2% compared with last year
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Second Quarter Sales up 3% in Local Currency*
Brazil +41%
Indonesia +4%
Malaysia/ Singapore
+20%
India -7%
TW Mexico +16%
Germany -4%
France -10%
TW S. Africa +24%
TW U.S./Canada
+1%
BeautiControl -14%
Fuller Mexico -6%
Avroy Shlain +14%
Korea -11%
Argentina +27%
Turkey -38%
Emerging
Markets
+7% in Local Currency Sales
66% of Second Quarter Sales
Established
Markets
-4% in Local Currency Sales
34% of Second Quarter Sales
Middle East and N. Africa
-74%
China +25%
Philippines -13%
CIS +21%
*See information in dollars in appendix
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Financial Highlights
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$1.07 ( $0.01)
$0.05
$0.02 $0.02
$0.01 $1.16
$0.95
$1.00
$1.05
$1.10
$1.15
$1.20
$1.25
$1.30
2015 at 2016Rates
Shares Ops Interest Unallocated Tax 2016
8% Increase in Local Currency
*See GAAP to NON-GAAP reconciliation attached to Q2 2016 earnings release
Q2 Adjusted Earnings per Share Roll-Forward* (diluted)
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2016 Second Quarter
High End Guidance
2016 Second Quarter
Actual
2015 Pretax ROS 13.8% 13.8%
Translation FX (60) bp (70) bp
2015 Pretax ROS (constant currency) 13.2% 13.1%
LC Operating Margin Improvement 10 bp 40 bp
Net interest expense 10 20
2016 Pretax ROS 13.4% 13.7%
Return on Sales*
*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q2 2016 earnings release
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Uses of Cash 2016 Guidance
Cash Flow from Operating
Net of Investing Activities Guidance: $195 to $205 million Includes $28 million in potential Q3 land proceeds
Dividends
68 cents per share quarterly = $138 million
Improve Leverage Ratio To At Least Meet
1.75X Target
through EBITDA growth & debt repayment
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Third Quarter 2016 Guidance
2016 Full Year Guidance
USD Sales +1% – 3% (2)% – (1)%
GAAP EPS $0.94 – $0.99 $4.18 – $4.28
GAAP Pre-tax ROS 13.1% – 13.5% 12.9% – 13.1%
Local Currency Sales +2% – 4% +3% – 4%
EPS, excluding items* $0.77 – $0.82 $4.25 – $4.35
Pre-tax ROS, excluding items 10.0% – 10.5% 12.9% – 13.1%
FX Impact on EPS comparison, excluding items ($0.02) ($0.34)
Outlook*
*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q2 2016 earnings release
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$4.37 ($0.34)
($0.04) ($0.03)
$0.35 $0.04 $4.35
$3.50
$4.00
$4.50
2015 FX 2015 at 2016Rates
Tax Shares Ops Unallocated 2016
2 cent decrease in Reported $
8% increase in Local Currency
$4.03
*High end of range. See information on GAAP basis in appendix
Full Year 2016 EPS Outlook Excluding Items* (diluted)
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2016 Third Quarter
High End Guidance
2016 Full Year
High End Guidance
2015 Pretax ROS 10.2% 12.8%
Translation FX -- (40) bp
2015 Pretax ROS (constant currency) 10.2% 12.4%
LC Operating Margin Improvement 40 bp 60 bp
Net Interest Expense (10) 10
2016 Pretax ROS (high end guidance) 10.5% 13.1%
Return on Sales Guidance*
*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q2 2016 earnings release
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Appendix
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Non-GAAP Financial Reconciliation
*High end of guidance range provided in July 20, 2016 Earnings Release. Includes Orlando land transaction with $28 million proceeds.
Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm.
2015 Q1 2016 Q2 2016 Q3 2016* 2016*
Net Sales $2,283.8 $525.7 $564.7 $534.5 $2,265.7
Net Income (GAAP) $185.8 $43.4 $52.4 $50.4 $217.1
Adjustments:
Gains on disposal of assets including insurance recoveries (13.7) (0.1) (0.8) (22.4) (23.3)
Re-engineering and other restructuring costs (includes Pension Settlement costs) 21.8 1.1 2.7 4.5 11.6
Impact of Venezuelan bolivar devaluation from balance sheet positions 14.9 0.2 3.6 -- 3.8
Acquired intangible asset amortization 10.2 2.0 2.0 1.9 7.7
Income tax impact of adjustments 1.5 (0.7) (1.2) 7.0 3.9
Net Income (Adjusted) $220.5 $45.9 $58.7 $41.4 $220.8
Adjusted EPS $4.37 $0.91 $1.16 $0.82 $4.35
Pre-tax Adjusted ROS 12.8% 11.7% 13.7% 10.5% 13.1%
Average number of diluted shares (millions) 50.4 50.6 50.7 50.7 50.7
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Second Quarter Sales Down 4% in Dollars
Brazil +22%
Indonesia +3%
Malaysia/ Singapore
+9%
India -12%
TW Mexico -2%
Germany -1%
France -8%
TW S. Africa +1%
TW U.S./Canada
Even
BeautiControl -14%
Fuller Mexico -20%
Avroy Shlain
-8%
Korea -16%
Argentina -19%
Turkey -43%
Emerging
Markets
+7% in Local Currency Sales
66% of Second Quarter Sales
Established
Markets
-4% in Local Currency Sales
34% of Second Quarter Sales
Middle East and N. Africa
-77%
China +19%
Philippines -17%
CIS -11%
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Global Portfolio – Second Quarter
Europe 25%
Asia Pacific 34%
Tupperware N.A 17%
Beauty NA 9%
South America 15%
Segment Sales Share
34%
84%
42%
76%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Europe Asia Pacific TupperwareNA
Beauty NA SouthAmerica
Established Emerging
Emerging/Established %
Earnings Release July 20, 2016
Second Quarter 2016