UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
X EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
Commission File Number 0-9286
COCA-COLA BOTTLING CO. CONSOLIDATED
(Exact name of registrant as specified in its charter)
Delaware 56-0950585
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification Number)
1900 Rexford Road, Charlotte, North Carolina 28211
(Address of principal executive offices) (Zip Code)
(704) 551-4400
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at May 3, 1996
Common Stock, $1 Par Value 7,958,059
Class B Common Stock, $1 Par Value 1,336,362
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
In Thousands (Except Share Data)
<TABLE>
<CAPTION>
March 31, Dec. 31, April 2,
1996 1995 1995
ASSETS
<S> <C> <C> <C>
Current Assets:
Cash $ 2,479 $ 2,434 $ 2,139
Accounts receivable, trade, less allowance for
doubtful accounts of $391, $406 and $402 9,847 12,098 8,923
Accounts receivable from The Coca-Cola Company 8,167 6,725 6,582
Due from Piedmont Coca-Cola Bottling Partnership 5,156 4,584 188
Accounts receivable, other 5,292 9,492 5,096
Inventories 30,935 27,989 31,884
Prepaid expenses and other current assets 6,944 6,935 5,239
Total current assets 68,820 70,257 60,051
Property, plant and equipment, less accumulated
depreciation of $157,341, $153,602 and $143,635 190,582 191,800 185,997
Investment in Piedmont Coca-Cola Bottling Partnership 64,700 65,624 66,930
Other assets 33,861 33,268 24,055
Identifiable intangible assets, less accumulated
amortization of $88,002, $85,535 and $78,134 245,516 247,983 255,384
Excess of cost over fair value of net assets of
businesses acquired, less accumulated
amortization of $24,552, $23,980 and $19,971 67,067 67,639 69,357
Total $670,546 $676,571 $661,774
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
<PAGE>
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
In Thousands (Except Share Data)
<TABLE>
<CAPTION>
March 31, Dec. 31, April 2,
1996 1995 1995
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C> <C>
Current Liabilities:
Portion of long-term debt payable within one year $ 120 $ 120 $ 247
Accounts payable and accrued liabilities 58,581 65,510 60,506
Accounts payable to The Coca-Cola Company 4,425 3,636 4,638
Accrued compensation 2,661 5,049 2,118
Accrued interest payable 5,103 6,259 5,998
Total current liabilities 70,890 80,574 73,507
Deferred income taxes 97,856 97,252 90,862
Other liabilities 41,841 39,877 27,391
Long-term debt 422,374 419,896 436,400
Total liabilities 632,961 637,599 628,160
Shareholders' Equity:
Convertible Preferred Stock, $100 par value:
Authorized-50,000 shares; Issued-None
Nonconvertible Preferred Stock, $100 par value:
Authorized-50,000 shares; Issued-None
Preferred Stock, $.01 par value:
Authorized-20,000,000 shares; Issued-None
Common Stock, $1 par value:
Authorized-30,000,000 shares;
Issued-10,090,859 shares 10,090 10,090 10,090
Class B Common Stock, $1 par value:
Authorized-10,000,000 shares;
Issued-1,964,476 shares 1,965 1,965 1,965
Class C Common Stock, $1 par value:
Authorized-20,000,000 shares; Issued-None
Capital in excess of par value 118,409 120,733 127,704
Accumulated deficit (75,095) (76,032) (84,595)
Minimum pension liability adjustment (138) (138) (3,904)
55,231 56,618 51,260
Less-Treasury stock, at cost:
Common-2,132,800 shares 17,237 17,237 17,237
Class B Common-628,114 shares 409 409 409
Total shareholders' equity 37,585 38,972 33,614
Total $670,546 $676, 571 $661,774
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
<PAGE>
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
In Thousands
<TABLE>
<CAPTION>
Capital Minimum
Class B in Pension
Common Common Excess of Accumulated Liability Treasury
Stock Stock Par Value Deficit Adjustment Stock
<S> <C> <C> <C> <C> <C> <C>
Balance on
January 1, 1995 $ 10,090 $1,965 $130,028 $(86,552) $ (3,904) $ 17,646
Net income 1,957
Cash dividends
paid:
Common (2,324)
Balance on
April 2, 1995 $10,090 $1,965 $127,704 $(84,595) $(3,904) $17,646
Balance on
December 31, 1995 $10,090 $1,965 $120,733 $(76,032) $(138) $17,646
Net income 937
Cash dividends
paid:
Common (2,324)
Balance on
March 31, 1996 $10,090 $1,965 $118,409 $(75,095) $(138) $17,646
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
<PAGE>
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
In Thousands (Except Per Share Data)
<TABLE>
<CAPTION>
First Quarter
1996 1995
<S> <C> <C>
Net sales (includes sales to Piedmont of $ 171,996 $ 170,977
$12,075 and $16,682)
Cost of products sold, (excluding depreciation shown
below includes $10,594 and $15,222 related to sales
to Piedmont) 98,268 98,903
Gross margin 73,728 72,074
Selling expenses 40,726 36,448
General and administrative expenses 12,708 13,493
Depreciation expense 7,007 6,386
Amortization of goodwill and intangibles 3,057 3,057
Income from operations 10,230 12,690
Interest expense 7,693 8,437
Other (income) expense, net 982 964
Income before income taxes 1,555 3,289
Federal and state income taxes 618 1,332
Net income $ 937 $ 1,957
Net income (per share) $ .10 $ .21
Cash dividends per share:
Common Stock $ .25 $ .25
Class B Common Stock .25 .25
Weighted average number of Common and
Class B Common shares outstanding 9,294 9,294
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
<PAGE>
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
In Thousands
<TABLE>
<CAPTION>
First Quarter
1996 1995
<S> <C> <C>
Cash Flows from Operating Activities
Net income $ 937 $ 1,957
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation expense 7,007 6,386
Amortization of goodwill and intangibles 3,057 3,057
Deferred income taxes 618 1,332
Losses on sale of property, plant and equipment 311 507
Amortization of debt costs 131 114
Undistributed loss of Piedmont Coca-Cola Bottling Partnership 924 799
Increase in current assets less current liabilities (8,202) (5,862)
Increase in other noncurrent assets (721) (723)
Increase (decrease) in other noncurrent liabilities 2,296 (129)
Other 2 2
Total adjustments 5,423 5,483
Net cash provided by operating activities 6,360 7,440
Cash Flows from Financing Activities
Proceeds from the issuance of long-term debt 2,884 3,434
Payments on long-term debt (405) (5)
Cash dividends paid (2,324) (2,324)
Other (368) (960)
Net cash provided by (used in) financing activities (213) 145
Cash Flows from Investing Activities
Additions to property, plant and equipment (6,123) (7,641)
Proceeds from the sale of property, plant and equipment 21 383
Net cash used in investing activities (6,102) (7,258)
Net increase in cash 45 327
Cash at beginning of period 2,434 1,812
Cash at end of period $ 2,479 $ 2,139
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
<PAGE>
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements (Unaudited)
1. Accounting Policies
The consolidated financial statements include the accounts of Coca-Cola Bottling
Co. Consolidated and its majority owned subsidiaries (the "Company"). All
significant intercompany accounts and transactions have been eliminated.
The information contained in the financial statements is unaudited. The
statements reflect all adjustments which, in the opinion of management, are
necessary for a fair statement of the results for the interim periods presented.
All such adjustments are of a normal, recurring nature.
The accounting policies followed in the presentation of interim financial
results are the same as those followed on an annual basis. These policies are
presented in Note 1 to the consolidated financial statements included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1995 filed
with the Securities and Exchange Commission.
Certain prior year amounts have been reclassified to conform to current year
classifications.
<PAGE>
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements (Unaudited)
2. Summarized Income Statement Data of Piedmont Coca-Cola Bottling Partnership
On July 2, 1993, the Company and The Coca-Cola Company formed Piedmont Coca-Cola
Bottling Partnership ("Piedmont") to distribute and market soft drink products
primarily in portions of North Carolina and South Carolina. The Company and The
Coca-Cola Company, through their respective subsidiaries, each beneficially own
a 50% interest in Piedmont. The Company provides a portion of the soft drink
products to Piedmont at cost and receives a fee for managing the business of
Piedmont pursuant to a management agreement. Summarized income statement data
for Piedmont is as follows:
<TABLE>
<CAPTION>
First Quarter
In Thousands 1996 1995
<S> <C> <C>
Net sales $ 47,925 $ 45,688
Gross margin 20,409 18,923
Income from operations 728 1,004
Net loss 1,849 1,598
</TABLE>
3. Inventories
Inventories are summarized as follows:
<TABLE>
<CAPTION>
Mar. 31, Dec. 31, April 2,
In Thousands 1996 1995 1995
<S> <C> <C> <C>
Finished products $ 19,401 $ 17,809 $ 18,708
Manufacturing materials 10,207 8,809 11,633
Used bottles and cases 1,327 1,371 1,543
Total inventories $ 30,935 $ 27,989 $ 31,884
</TABLE>
<PAGE>
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements (Unaudited)
4. Long-Term Debt
Long-term debt is summarized as follows:
<TABLE>
<CAPTION>
Fixed(F) or
Interest Variable Interest Mar. 31, Dec. 31, April 2,
In Thousands Maturity Rate (V) Rate Paid 1996 1995 1995
<S> <C> <C> <C> <C> <C> <C> <C>
Lines of Credit 1997 5.65%- V Varies $ 25,490 $ 22,590 $ 96,860
5.75%
Term Loan Agreement 2002- 5.78%- V Varies 170,000 170,000 120,000
2003 5.95%
Medium-Term Notes 1998 6.03% V Quarterly 10,000 10,000 10,000
Medium-Term Notes 1998 10.00% F Semi- 2,000 2,000
annually
Medium-Term Notes 1999 7.99% F Semi- 28,585 28,585 66,500
annually
Medium-Term Notes 2000 10.00% F Semi- 25,500 25,500 57,000
annually
Medium-Term Notes 2002 8.56% F Semi- 47,000 47,000 66,500
annually
Debentures 2007 6.85% F Semi- 100,000 100,000 --
annually
Notes acquired in
Sunbelt acquisition 2001 8.00% F Quarterly 200 217 5,321
Capital leases and 1995- 6.85%- F Varies 13,719 14,124 14,446
other notes payable 2001 10.00%
422,494 420,016 436,647
Less: Portion of long-
term debt payable
within one year 120 120 247
Long-term debt $422,374 $419,896 $436,400
</TABLE>
<PAGE>
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements (Unaudited)
4. Long-Term Debt (cont.)
As of March 31, 1996, the Company was in compliance with all of the
covenants of its various borrowing agreements.
It is the Company's intent to renew its lines of credit, commercial paper
borrowings and borrowings under the revolving credit facility as they
mature. To the extent that these borrowings do not exceed the amount
available under the Company's $170 million revolving credit facility, they
are classified as noncurrent liabilities.
A $100 million commercial paper program was established in January 1990 with
funds to be used for general corporate purposes. There were no balances
outstanding under this program on March 31, 1996, December 31, 1995 or April
2, 1995.
In June 1992, the Company entered into a three-year arrangement under which
it has the right to sell an undivided interest in a designated pool of trade
accounts receivable up to a maximum of $40 million. The Company had sold
trade receivables of $35 million as of March 31, 1996, December 31, 1995 and
April 2, 1995. This arrangement has been amended to extend it to June 1998
on terms substantially similar to those previously in place.
On October 12, 1994, a $400 million shelf registration for debt and equity
securities filed with the Securities and Exchange Commission became
effective and the securities thereunder became available for issuance. On
November 1, 1995, the Company issued $100 million of 6.85% debentures due
2007 pursuant to such registration. The net proceeds from this issuance were
used principally for refinancing a portion of the existing public
indebtedness with the remainder used to repay other bank debt.
On November 20, 1995, the Company entered into a $170 million loan agreement
with $85 million maturing in November 2002 and $85 million maturing in
November 2003. This loan was used to repay two $60 million loans previously
entered into by the Company and other bank debt.
The Company has guaranteed a portion of the debt for two cooperatives in
which the Company is a member. The amounts guaranteed were $34.6 million,
$35.2 million and $34.2 million as of March 31, 1996, December 31, 1995 and
April 2, 1995, respectively.
<PAGE>
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements (Unaudited)
5. Derivative Financial Instruments
The Company uses derivative financial instruments to modify risk from
interest rate fluctuations in its underlying debt. The Company has
historically altered its fixed/floating interest rate mix based upon
anticipated operating cash flows of the Company relative to its debt level
and the Company's ability to absorb increases in interest rates. These
derivative financial instruments are not used for trading purposes.
The Company has entered into interest rate swaps that resulted in weighted
average interest rates for the debt portfolio of approximately 7.0%, 7.2%
and 7.5% as of March 31, 1996, December 31, 1995 and April 2, 1995,
respectively. The Company's overall weighted average interest rate on its
long-term debt decreased from an average of 7.3% during the first quarter of
1995 to an average of 7.0% during the first quarter of 1996. After taking
into account the effect of all of the interest rate swap activities,
approximately 49%, 48% and 47% of the total debt portfolio was subject to
changes in short-term interest rates as of March 31, 1996, December 31, 1995
and April 2, 1995, respectively.
A rate increase of 1% would have increased interest expense for the first
quarter of 1996 by approximately $2 million and net income for the first
quarter ended March 31, 1996 would have been reduced by approximately $1.2
million. Interest coverage as of March 31, 1996 would have been 2.5 times
(versus 2.6 times) if interest rates had increased by 1%.
Derivative financial instruments were as follows:
<TABLE>
<CAPTION>
March 31, 1996 December 31, 1995 April 2, 1995
Remaining Remaining Remaining
In Thousands Amount Term Amount Term Amount Term
<S> <C> <C> <C> <C> <C> <C>
Interest rate swaps-floating $ 60,000 7.5 years $ 60,000 8 years $221,600 5-8 years
Interest rate swaps-fixed 60,000 7.5 years 60,000 8 years 215,000 1-8 years
Interest rate caps 30,000 .5 year
</TABLE>
<PAGE>
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements (Unaudited)
5. Derivative Financial Instruments (cont.)
The table below summarizes interest rate swap activity for the three months
ended March 31, 1996.
First Quarter
In Thousands 1996
Total swaps, beginning of period $120,000
New swaps --
Terminated swaps --
Expired swaps --
Total swaps, end of period $120,000
The carrying amounts and fair values of the Company's balance sheet and
off-balance-sheet instruments were as follows:
<TABLE>
<CAPTION>
March 31, 1996 December 31, 1995
Carrying Fair Carrying Fair
In Thousands Amount Value Amount Value
<S> <C> <C> <C> <C>
Balance Sheet Instruments
Public debt $ 213,085 $ 215,757 $ 213,085 $ 228,103
Non-public variable rate long-term
debt 195,490 195,490 192,590 192,590
Non-public fixed rate long-term debt 13,919 14,899 14,341 16,189
Off-Balance-Sheet Instruments
Interest rate swaps (4,843) (4,725)
</TABLE>
The fair values of the interest rate swaps represent the estimated amounts the
Company would have had to pay to terminate these agreements.
<PAGE>
Coca-Cola Bottling Co. Consolidated
Notes to Consolidated Financial Statements (Unaudited)
6. Supplemental Disclosures of Cash Flow Information
Changes in current assets and current liabilities affecting cash were as
follows:
<TABLE>
<CAPTION>
First Quarter
In Thousands 1996 1995
<S> <C> <C>
Accounts receivable, trade, net $ 2,251 $(1,167)
Due from Piedmont Coca-Cola Bottling Partnership (572) 1,195
Accounts receivable, other 2,758 68
Inventories (2,946) (13)
Prepaid expenses and other current assets (9) (185)
Portion of long-term debt payable within one year (53)
Accounts payable and accrued liabilities (6,140) 1,698
Accrued compensation (2,388) (2,128)
Accrued interest payable (1,156) (5,277)
Increase in current assets less current liabilities $(8,202) $(5,862)
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Introduction:
The following discussion presents management's analysis of the results of
operations for the first three months of 1996 compared to the first three months
of 1995 and changes in financial condition from April 2, 1995 and December 31,
1995 to March 31, 1996.
The Company reported net income of $.9 million or $.10 per share for the first
quarter of 1996 compared with net income of $2.0 million or $.21 per share for
the same period in 1995.
While overall sales volume increased during the quarter, inclement weather
conditions in certain areas of the Company's franchise territory had a
significant impact on the Company's higher margin vending and convenience store
channels resulting in lower sales in these channels than during the comparable
period in the prior year. The expansion of the Company's cold drink channel in
the past few years has resulted in significant capital investment for equipment.
The lease expense related to cold drink asset additions is recognized on
a straight-line basis throughout the year while the revenue generated by these
assets tends to be more seasonal, with the majority of the revenue coming in the
months from April to September.
The results for interim periods are not necessarily indicative of the results to
be expected for the year due to seasonal factors.
Results of Operations:
Net sales for the first quarter of 1996 increased less than 1% from the first
quarter of 1995. Net franchise sales increased 5.3% over the same period in 1995
due primarily to a 4.6% increase in case volume. Contract sales dropped by $6.6
million from the first quarter of 1995. Approximately half of the reduction in
contract sales reflects lower sales to third parties on which the Company
generates a modest profit margin. The other half of the reduction in contract
sales reflects lower sales to Piedmont Coca-Cola Bottling Partnership which is
purchasing more of its product from a regional Coca-Cola manufacturing
cooperative. The increase in franchise sales volume was primarily in food
stores. Sprite continued to enjoy significant growth with increased volume of
25% over the first quarter of 1995. The new proprietary Sprite 20 ounce PET
bottle is being introduced throughout the Company's franchise territory. Selling
prices were at levels comparable to the first quarter 1995, a period during
which selling prices were up approximately 6.5% over comparable 1994 levels.
<PAGE>
Gross margin on net franchise sales increased by 3.1% from 1995 due primarily to
the increase in food store sales. The increase in gross margin was less than the
increase in net franchise sales due to a higher percentage of food store sales
that have lower margins than other market channels.
For the first quarter of 1996, selling expenses increased 11.7% over the 1995
period. Selling expenses related to franchise sales increased more than 7% due
primarily to higher employment costs and increased expenses related to sales
development programs. The increase in sales development funds was related
primarily to growth in food store volume. The higher employment costs are
attributable to an increase in volume and the Company's efforts to improve
employee retention in certain key market areas of its franchise territory.
General and administrative expenses decreased by 5.9% due to certain employee
benefit accruals.
Depreciation expense increased 9.7% between the first quarter of 1995 and the
first quarter of 1996. This increase is due to the level of capital expenditures
during 1995. The Company made significant capital expenditures in 1995 for
manufacturing equipment necessary for the introduction of new packages.
Interest expense decreased 8.8% from the first quarter of 1995 to the first
quarter of 1996 due to reduced long-term debt balances and lower interest rates
as a result of the early retirement of some of the Company's Medium-Term Notes
in the fourth quarter of 1995. Outstanding long-term debt decreased
approximately $14 million from April 2, 1995 to March 31, 1996. The Company's
overall weighted average interest rate decreased from an average of 7.3% during
the first quarter of 1995 to an average of 7.0% during the first quarter of
1996.
Changes in Financial Condition:
Working capital increased $8.2 million from December 31, 1995 to March 31, 1996
and increased $6.1 million from April 2, 1995 to March 31, 1996. The increase
from December 31, 1995 resulted principally from an increase in inventories due
to the seasonal nature of the business as well as a reduction in certain accrued
liabilities. The increase from April 2, 1995 was due principally to an increase
in amounts due from Piedmont Coca-Cola Bottling Partnership. The Company had
sold trade accounts receivable of $35 million as of March 31, 1996, December 31,
1995 and April 2, 1995 under its arrangement to sell an undivided interest
in a designated pool of trade accounts receivable up to a maximum of $40
million.
Capital expenditures in the first quarter of 1996 were $6.1 million as compared
to $7.6 million in the first quarter of 1995. Expenditures for 1996 capital
additions are expected to be lower than expenditures for 1995 due to reduced
capital requirements for manufacturing equipment.
Long-term debt decreased $14 million from April 2, 1995 to March 31, 1996 and
increased $2.5 million from December 31, 1995 to March 31, 1996. Long-term debt
has decreased from April 2, 1995 due to repayments of debt from operations. On
November 1, 1995, the Company issued $100 million of 6.85% debentures due 2007
pursuant to a $400 million shelf registration filed in 1994 with the Securities
and Exchange Commission. The net proceeds from this issuance were used to
<PAGE>
repurchase $87 million of the Company's Medium-Term Notes due between 1997 and
2002 and to repay other outstanding borrowings. As of March 31, 1996, the
Company was in compliance with all of the covenants of its various borrowing
agreements.
It is the Company's intent to renew any borrowings under its $170 million
revolving credit facility and the informal lines of credit as they mature and,
to the extent that any borrowings under the revolving credit facility, the
informal lines of credit and commercial paper program do not exceed the amount
available under the Company's $170 million revolving credit facility, they are
classified as noncurrent liabilities. As of March 31, 1996, the Company had no
amounts outstanding under the revolving credit facility or the commercial paper
program and had approximately $25.5 million outstanding under the informal lines
of credit.
As of March 31, 1996 the debt portfolio had a weighted average interest rate of
approximately 7.0% and approximately 49% of the total portfolio of $422.5
million was subject to changes in short-term interest rates.
Management believes that the Company, through the generation of cash flow from
operations and the utilization of unused borrowing capacity, has sufficient
financial resources available to maintain its current operations and provide for
its current capital expenditure requirements. The Company considers the
acquisition of additional franchise territories on an ongoing basis.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
On March 4, 1993, a Complaint was filed against the Company, the predecessor
bottling company for the Laurel, Mississippi territory and other unnamed parties
in the matter of Mrs. Elsie Langley, Administratrix of the Estate of Walter
Langley v. Coca-Cola Bottling Co. Consolidated, et al., Cause No. 93-3-30 in the
Circuit Court of the Second Judicial District for Jones County, Mississippi.
This suit by the testatrix spouse of a deceased former employee of the
predecessor bottler alleged misrepresentation and fraud in connection with the
severance package offered to employees terminated by the predecessor bottler in
connection with the acquisition of the Laurel franchise subsidiary of the
Company. Plaintiff claimed that the former employee was led to believe that the
severance package was to include continuation of health insurance by the
Company. The plaintiff's original Complaint sought damages in an amount up to
$18 million in compensatory and punitive damages. Plaintiff later requested that
the Court permit her to amend her Complaint to strike certain allegations,
leaving claims for up to $11 million in compensatory and punitive damages. On
December 7, 1994, the Company filed a Motion to Dismiss this case, based on
ERISA preemption. A second hearing on the Motion was held on March 18, 1996, at
which time the Court dismissed all of Plaintiff's claims against the Company,
with prejudice.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit
Number Description
27 Financial data schedule for period ended March 31, 1996.
(b) Reports on Form 8-K
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COCA-COLA BOTTLING CO. CONSOLIDATED
(REGISTRANT)
Date: May 13, 1996 By: /s/ David V. Singer
David V. Singer
Principal Financial Officer of the Registrant
and
Vice President-Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements as of and for the three months ended March 31, 1996
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,479
<SECURITIES> 0
<RECEIVABLES> 10,238
<ALLOWANCES> 391
<INVENTORY> 30,935
<CURRENT-ASSETS> 68,820
<PP&E> 347,923
<DEPRECIATION> 157,341
<TOTAL-ASSETS> 670,546
<CURRENT-LIABILITIES> 70,890
<BONDS> 422,374
0
0
<COMMON> 12,055
<OTHER-SE> 43,176
<TOTAL-LIABILITY-AND-EQUITY> 670,546
<SALES> 171,996
<TOTAL-REVENUES> 171,996
<CGS> 98,268
<TOTAL-COSTS> 98,268
<OTHER-EXPENSES> 63,498
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,693
<INCOME-PRETAX> 1,555
<INCOME-TAX> 618
<INCOME-CONTINUING> 937
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 937
<EPS-PRIMARY> 0.10
<EPS-DILUTED> 0
</TABLE>
