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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 1, 1997
COCA-COLA ENTERPRISES INC.
(Exact name of registrant as specified in its charter)
Delaware 01-09300 58-0503352
(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
2500 Windy Ridge Parkway, Atlanta, Georgia 30339
(Address of principal executive offices, including zip code)
(770) 989-3000
(Registrant's telephone number, including area code)
Page 1 of 6 pages
Exhibit Index Page 4
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Item 5. Other Events
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On April 1, 1997, Coca-Cola Enterprises Inc. (the "Company")
issued a press release announcing that first-quarter 1997
noncash expenses related to certain stock-based compensation
plans will be higher than the Company's original 1997
expectations due to strong first quarter 1997 stock-price
performance.
Item 7. Financial Statements and Exhibits
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(c) Exhibits.
99 Press Release of Coca-Cola Enterprises Inc. issued
April 1, 1997.
Page 2 of 6 pages
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SIGNATURE
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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 hereunto duly authorized.
COCA-COLA ENTERPRISES INC.
(Registrant)
S/ LOWRY F. KLINE
Date: April 7, 1997 By:__________________________________
Lowry F. Kline
Senior Vice President and
General Counsel
Page 3 of 6 pages
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COCA-COLA ENTERPRISES INC.
EXHIBIT INDEX
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Exhibit No. Page
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99 Press release of Coca-Cola Enterprises Inc. 5
issued April 1, 1997.
Page 4 of 6
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EXHIBIT 99
COCA-COLA ENTERPRISES INC. PRESS RELEASE
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CONTACT: Laura Asman - Media Relations
(770) 989-3023
Margaret Carton - Investor Relations
(770) 989-3622
FOR IMMEDIATE RELEASE
COCA-COLA ENTERPRISES INC. REPORTS FIRST-QUARTER 1997 INCREASE
IN NONCASH STOCK-PERFORMANCE RELATED EXPENSES AND ONE-TIME
CHARGE RELATING TO DEBT REDEMPTION
ATLANTA, April 1, 1997 -- Coca-Cola Enterprises today announced that
first-quarter 1997 noncash expenses related to certain stock-based
compensation plans will be higher than the Company's original 1997
expectations. The Company's stock price increased as much as 36 percent
during the first quarter of 1997 and ended the quarter up approximately
25 percent. This growth in market value, along with the Company's outlook
for strong full-year 1997 performance, will result in higher stock-related
Selling, General, and Administrative (SG&A) Expenses, primarily noncash
amortization expenses. Based on current expectations, total noncash
franchise and stock-related amortization expenses will be $96 million
in first-quarter 1997 and approximately $330 million for full-year 1997.
The full-year 1997 amortization of $330 million represents approximately
$273 million of franchise amortization and $57 million of stock-related
amortization.
Since the incremental costs associated with the performance-based
restricted stock and stock option plans are noncash amortization expenses,
there is no impact on cash operating profit (earnings before interest,
taxes, depreciation, amortization, and other nonoperating expenses),
cash flow, or amortization adjusted earnings per share. The implementation
of changes to the Company's stock-based employee benefit plans at the end
of 1996 eliminated certain cash SG&A Expenses associated with the stock
performance. The Company believes these performanced-based stock
compensation plans are effective tools for maximizing results and
share-owner value since they increase employee ownership in
Coca-Cola Enterprises.
"While SG&A Expenses will be higher than originally anticipated due
to our strong first-quarter 1997 stock price performance, we continue to
expect full-year 1997 comparable cash operating profit growth of 9 percent,
which should generate 1997 earnings per share growth of 10 percent to
15 percent above 1996 adjusted earnings of 80 cents per share," stated
Summerfield K. Johnston, Jr., vice chairman and chief executive officer of
Coca-Cola Enterprises. "The fundamentals of our operating performance remain
strong and on target, even with the highly competitive marketplace conditions
that currently exist. Our domestic volume growth is higher than the industry
rate, our international growth is outpacing domestic growth, and in most
territories our growth rate is exceeding our competitors."
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Coca-Cola Enterprises also reported that effective April 1, 1997, the
Company redeemed all of its outstanding 8 3/4 percent Debentures due
April 1, 2017. The Company had approximately $142 million outstanding under
this debt issue. The Company's first-quarter 1997 results will include a
one-time charge associated with this debt redemption of approximately $6
million, or 3 cents per common share after tax based on shares outstanding
prior to the proposed 3-for-1 stock split. The Company has already
refinanced this debt issue with lower cost debt, enhancing the Company's
long-term debt portfolio.
The forward-looking statements in this news release should be read in
conjunction with cautionary statements found on page 27 of the Company's
1996 Annual Report.
Coca-Cola Enterprises Inc. (NYSE: CCE) is the world's largest bottler
of liquid nonalcoholic refreshment, distributing more than 58 percent of
The Coca-Cola Company's United States bottle and can volume. Coca-Cola
Enterprises is also the sole licensed bottler for products of The
Coca-Cola Company in Belgium, Great Britain, the Netherlands, and most of
France.
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