COCA-COLA ENTERPRISES INC. Exhibit 99
CONSOLIDATED STATEMENTS OF OPERATIONS Page 1 of 5
(Unaudited; In Millions Except Per Share Data)
Fourth-Quarter
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1999 1998 Change
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Net Operating Revenues $ 3,509 $ 3,241 8%
Cost of Sales 2,179 2,011 8%
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Gross Profit 1,330 1,230 8%
Selling, Delivery, and Administrative
Expenses 1,164 1,100 6%
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Operating Income 166 130 28%
Interest Expense, Net 192 184 4%
Other Nonoperating Income, Net -- (1)
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Loss Before Income Taxes (26) (53)
Income Tax Benefit (8) (19)
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Net Loss Applicable to
Common Share Owners $ (18) $ (34)
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Basic and Diluted Average Common
Shares Outstanding 426 393
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Basic and Diluted Net Loss Per Share
Applicable to Common Share Owners (a) $ (0.04) $ (0.09)
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Cash Operating Profit Data:
Operating Income $ 166 $ 130 28%
Depreciation 236 199 19%
Amortization 114 109 5%
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Cash Operating Profit $ 516 $ 438 18%
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(a) Per share data calculated prior to rounding to millions.
COCA-COLA ENTERPRISES INC. Exhibit 99
CONSOLIDATED STATEMENTS OF INCOME Page 2 of 5
(In Millions Except Per Share Data)
Full-Year
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1999 (a) 1998 (b) Change
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Net Operating Revenues $14,406 $13,414 7%
Cost of Sales 9,015 8,391 7%
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Gross Profit 5,391 5,023 7%
Selling, Delivery, and Administrative
Expenses 4,552 4,154 10%
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Operating Income 839 869 (3)%
Interest Expense, Net 751 701 7%
Other Nonoperating Income, Net -- (1)
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Income Before Income Taxes 88 169
Income Tax Expense 29 56
Income Tax Rate Change Benefit (c) -- (29)
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Net Income 59 142
Preferred Stock Dividends 3 1
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Net Income Applicable to Common Share Owners $ 56 $ 141
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Basic Average Common Shares Outstanding 425 393
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Basic Net Income Per Share Applicable
to Common Share Owners (d) $ 0.13 $ 0.36
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Diluted Average Common Shares Outstanding 436 406
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Diluted Net Income Per Share Applicable to
Common Share Owners (d) $ 0.13 $ 0.35
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Cash Operating Profit Data:
Operating Income $ 839 $ 869 (3)%
Depreciation 899 725 24%
Amortization 449 395 14%
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Cash Operating Profit $ 2,187 $ 1,989 10%
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(a) Full-year 1999 results reflect the 7 acquisitions completed late
in 1998 and early in 1999 as if the transactions were completed on
January 1, 1999. In addition, 1999 results include nonrecurring
product recall costs of $103 million pretax, or 16 cents per share after
tax. The costs were allocated $91 million to cost of sales and $12 million
to selling, delivery, and administrative expenses.
(b) Full-year 1998 results include the Coke Southwest acquisition from the
closing date of June 5, 1998.
(c) Full-year 1998 results include a one-time benefit from the reduction
of the United Kingdom tax rate of 7 cents per diluted share.
(d) Per share data calculated prior to rounding to millions.
COCA-COLA ENTERPRISES INC. Exhibit 99
CONDENSED CONSOLIDATED BALANCE SHEETS Page 3 of 5
(In Millions)
December 31, December 31,
1999 1998
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ASSETS
Current Assets $ 2,557 $ 2,285
Net Property, Plant, and Equipment 5,594 4,891
Franchises and Other Noncurrent Assets 14,555 13,956
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$22,706 $21,132
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LIABILITIES AND SHARE-OWNERS' EQUITY
Current Liabilities $ 3,590 $ 3,397
Long-Term Debt 10,153 9,605
Other Long-Term Obligations 1,088 977
Deferred Income Taxes 4,951 4,715
Share-Owners' Equity 2,924 2,438
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$22,706 $21,132
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COCA-COLA ENTERPRISES INC. Exhibit 99
Other Key Financial Information Page 4 of 5
(Unaudited)
Reported Comparable
Fourth-Quarter 1999 Change Change (a)
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Cash Operating Profit - Consolidated 18% 14%
Physical Case Bottle and Can Volume (b)
Consolidated 6% 1%
North America 6% Less than 1%
Europe 6% 3%
Fountain Gallon Volume (b) 8% 3%
Net Revenues Per Case to Retailers -
Bottle and Can 1 1/2% 3 1/2%
Cost of Sales Per Case - Bottle and Can 1 1/2% Flat
Full-Year 1999
-------------------
Cash Operating Profit - Consolidated 10% 11%
Physical Case Bottle and Can Volume (b)
Consolidated 4% Less than (1)%
North America 4% Less than (2)%
Europe 3% 3%
Fountain Gallon Volume (b) 10% 2%
Net Revenues Per Case to Retailers -
Bottle and Can 3% 4%
Cost of Sales Per Case - Bottle and Can 2 1/2% Flat
(a) To determine the comparable results for the change in key operating
variables, 1998 and 1999 acquisitions are included for the same period
in 1998 as reported in 1999 and 1999 results have been adjusted to
exclude the second-quarter 1999 nonrecurring product recall costs.
(b) To determine comparable results for the change in volume, 1998 results
have also been adjusted to include the same number of fiscal days as
fourth-quarter 1999.
COCA-COLA ENTERPRISES INC. Exhibit 99
Other Key Financial Information Page 5 of 5
2000 PROJECTIONS
----------------
For 2000 the Company expects approximately 12 percent comparable cash
operating profit growth from 1999 results adjusted for nonrecurring product
recall costs of $103 million and approximately $30 million of cash operating
profit lost in June when the Company's products were not available in certain
markets in Europe. 2000 cash operating profit results are expected to reflect
continued focus on improving profitability in the future consumption channels
from the depressed levels experienced throughout the mid-1990s, moderate
volume growth, and leveraging operating expenses. 2000 diluted earnings per
share should exceed 70 cents reflecting strong operating results and a
reduction in depreciation expense.
The lower depreciation expense is a result of 1999 capital expenditures
of slightly under $1.5 billion, expected 2000 capital spending levels of
approximately $1.4 billion, and an extension of the estimated useful lives
of certain equipment categories. Since beginning its accelerated capital
spending levels, the Company has implemented several new programs designed
specifically to extend equipment useful lives through asset management and
structured maintenance and refurbishment plans. A comprehensive study of the
effect of these programs was completed in the fourth quarter of 1999. The
extension of equipment useful lives lowers 2000 depreciation expense by
approximately $160 million, or approximately 23 cents per diluted share
after tax.
*************
This Form 8-K contains forward-looking statements concerning management's
current outlook for future periods and should be read in conjunction with
cautionary statements found on page 19 of the Company's 1998 Annual Report
and in the Company's third-quarter 1999 Form 10-Q.
