Fourth Quarter 2016 Highlights - Pro Forma(1)(2)
- Worldwide beer volume: 22.1 million hectoliters, increased 1.2%; Coors Light volume decreased 1.9% worldwide
- Net sales: $2.468 billion, decreased 4.2% on a reported basis, and decreased 2.2% in constant currency
- Net sales per HL: $105.75, decreased 2.8% on a reported basis, and decreased 0.8% in constant currency
- U.S. GAAP net loss from continuing operations attributable to MCBC: Loss of $608.1 million ($(2.83) per diluted share) compared to net income of $6.7 million a year ago
- Underlying after-tax income: $98.7 million ($0.46 per diluted share), increased 16.4%
- Underlying EBITDA (earnings before interest, taxes, depreciation and amortization): $405.1 million, increased 4.6%
Full Year 2016 Highlights - Pro Forma(1)(2)
- Worldwide beer volume: 95.2 million hectoliters, decreased 0.8%; Coors Light volume decreased 0.2% worldwide
- Net sales: $10.983 billion, decreased 2.3% on a reported basis, and decreased 0.6% in constant currency
- Net sales per HL: $107.75, decreased 0.3% on a reported basis, and increased 1.4% in constant currency
- U.S. GAAP net income from continuing operations attributable to MCBC: $277.5 million ($1.28 per diluted share), decreased 48.9%
- Underlying after-tax income: $936.0 million ($4.33 per diluted share), increased 1.9%
- Underlying EBITDA (earnings before interest, taxes, depreciation and amortization): $2.383 billion, increased 2.6%
DENVER, Colo., and MONTREAL, Quebec – February 14, 2017 – Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today reported a U.S. GAAP net loss from continuing operations attributable to MCBC of $608.1 million on a pro forma basis for the fourth quarter, down from $6.7 million of net income a year ago. This decrease was driven by an impairment charge recorded for the Molson brands in Canada, higher U.S. GAAP tax expense, and an indirect tax provision recorded in Europe. The Company also reported a 16.4 percent increase in underlying after-tax income on a pro forma basis for the fourth quarter of 2016, driven by higher income in the U.S. and improved performance in International, partially offset by the indirect tax provision in Europe.
Molson Coors president and chief executive officer Mark Hunter said, "The biggest news for 2016 was completing our acquisition of the remaining 58 percent of MillerCoors and the Miller global brand portfolio for $12 billion, representing the largest transaction in the Company’s history, which made Molson Coors the third-largest global brewer. We also retained the rights to all of the brands that were in the MillerCoors portfolio in the U.S. and Puerto Rico. The transaction was completed at a 9.2-times effective purchase multiple, including the present value of cash tax benefits. Additionally, we will be driving substantial cost synergies in the next three years, and we continue to expect this transaction to be significantly accretive to underlying earnings in the first full year of operations. With the completion of the transaction and the changes we are making to align and enhance our organization, the building blocks are in place for our company to drive top-line growth, profit, cash generation, debt pay-down, and total shareholder returns in the years ahead. Led by our First Choice for Consumers and Customers agenda, these building blocks are grouped into four areas: First, our organization and brands are all under one roof for the first time. Second, our consumer excellence approach with our global brand portfolio of Coors, Miller and Staropramen, supported by our national champion, craft and specialty brands, now gives a platform for accelerating performance outside of our core developed markets over time. Third, our customer excellence approach, where we are investing in sales capability and execution improvement. And lastly, our focus on talent development, diversity and inclusion is laser-focused on enabling our First Choice agenda and leadership capability across the enterprise."
Mark added, "The completion of the MillerCoors transaction represents a step forward in the size and strength of our business, and this will drive some significant changes in our financial numbers in the near term as we align and enhance our financial reporting. In order to provide more comparable financial information, unless otherwise indicated, all fourth quarter and full year 2016 consolidated and U.S. results in this release will be presented on a pro-forma basis, as if the MillerCoors transaction and its financing had been completed at the beginning of 2015. Canada, Europe, International and Corporate results will not be presented on a pro forma basis."