The WhiteWave Foods Company (NYSE:WWAV) today reported financial
results for the second quarter ended June 30, 2016.
| |
|
| Financial
Summary: |
Three Months Ended June 30, |
|
| In millions, except
EPS |
|
2016 |
|
|
|
2015 |
|
|
% Change* |
|
|
|
|
|
|
|
|
|
| Total Net
Sales |
|
|
|
|
|
|
| Reported |
$ |
1,050 |
|
|
$ |
924 |
|
|
|
+14 |
% |
|
| Constant Currency |
$ |
1,052 |
|
|
$ |
924 |
|
|
|
+14 |
% |
|
| Organic Constant Currency |
$ |
989 |
|
|
$ |
924 |
|
|
|
+7 |
% |
|
|
|
|
|
|
|
|
|
| Total Operating
Income |
|
|
|
|
|
|
| Reported |
$ |
101 |
|
|
$ |
77 |
|
|
|
+31 |
% |
|
| Adjusted |
$ |
104 |
|
|
$ |
85 |
|
|
|
+23 |
% |
|
| Adjusted Constant Currency |
$ |
107 |
|
|
$ |
85 |
|
|
|
+26 |
% |
|
|
|
|
|
|
|
|
|
| Net
Income |
|
|
|
|
|
|
| Reported |
$ |
52 |
|
|
$ |
37 |
|
|
|
+38 |
% |
|
| Adjusted |
$ |
55 |
|
|
$ |
44 |
|
|
|
+27 |
% |
|
| Adjusted, excluding China J.V. |
$ |
58 |
|
|
$ |
47 |
|
|
|
+24 |
% |
|
|
|
|
|
|
|
|
|
| Diluted Earnings
per Share (EPS) |
|
|
|
|
|
|
| Reported |
$ |
0.29 |
|
|
$ |
0.21 |
|
|
|
+38 |
% |
|
| Adjusted |
$ |
0.31 |
|
|
$ |
0.24 |
|
|
|
+27 |
% |
|
| Adjusted, excluding China J.V. |
$ |
0.32 |
|
|
$ |
0.26 |
|
|
|
+24 |
% |
|
| Adj. Constant Currency, excluding
China J.V. |
$ |
0.33 |
|
|
$ |
0.26 |
|
|
|
+28 |
% |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
| Adjusted |
$ |
143 |
|
|
$ |
115 |
|
|
|
+24 |
% |
|
| Adjusted, excluding China J.V. |
$ |
146 |
|
|
$ |
119 |
|
|
|
+23 |
% |
|
| Adj. Constant Currency, excluding
China J.V. |
$ |
149 |
|
|
$ |
119 |
|
|
|
+25 |
% |
|
| |
|
| *Certain
change percentages may not recalculate using the rounded dollar
amounts provided |
|
| |
|
WhiteWave’s second quarter 2016 reported diluted earnings per
share was $0.29 and adjusted diluted earnings per share was $0.32,
excluding operating costs associated with its China joint venture.
Including joint venture costs, WhiteWave reported second quarter
2016 adjusted diluted earnings per share of $0.31.
1 Please refer to “Forward Outlook” and “Explanation of
Non-GAAP Financial Measures” for additional information. WhiteWave
provides guidance on a non-GAAP basis and does not reconcile
guidance to GAAP as the company cannot predict certain elements
which are included in reported GAAP results, including foreign
exchange impacts, mark-to-market adjustments of hedging activities,
and costs related to merger and acquisition activities that may
have a significant impact to reported GAAP results.
Net sales for second quarter 2016 were $1.1 billion, a 14
percent increase from net sales of $924 million in second quarter
2015. These results were driven by strong organic growth in both
the Americas and Europe segments, as well as contributions from
acquisitions.
On a constant currency basis, net sales increased 14 percent in
second quarter 2016, when compared to second quarter 2015.
Excluding acquisitions, organic constant currency net sales
increased 7 percent in second quarter 2016, when compared to second
quarter 2015.
Reported operating income for second quarter 2016 increased 31
percent to $101 million compared to second quarter 2015, and on an
adjusted basis increased 23 percent to $104 million, compared to
$85 million in second quarter 2015. On a constant currency basis,
adjusted operating income increased 26 percent in second quarter
2016 over the same period in 2015.
"We are pleased with the double-digit topline growth, continued
strong margin expansion and robust earnings growth we generated in
the second quarter and for the first half of 2016,” said Gregg
Engles, chairman and chief executive officer. “In early July, we
entered into a definitive merger agreement to be acquired by
Danone. This transaction represents an exciting next chapter of
growth for WhiteWave as we bring together two companies with a
shared mission of changing the way the world eats for the
better.”
AMERICAS FOODS & BEVERAGES
SEGMENTWhiteWave’s Americas Foods & Beverages segment
consists of four platforms: Plant-based Foods and Beverages, Fresh
Foods, Premium Dairy, and Coffee Creamers and Beverages. In second
quarter 2016, net sales for Americas Foods & Beverages were
$898 million, an increase of 14 percent over second quarter 2015.
Growth in the segment reflects strong organic sales growth and
contributions from acquisitions. Excluding acquisitions and the
impact of currency translations, organic constant currency net
sales in the segment increased 6 percent in second quarter 2016
over second quarter 2015. The organic growth rate for second
quarter 2016 increased 7.5 percent excluding the impact of Fresh
Foods’ results, which began being included within the segment in
2016. Organic growth in the segment continues to be primarily
volume driven.
Reported operating income for the Americas Foods & Beverages
segment increased 19 percent in second quarter 2016, compared to
the same period in 2015. On an adjusted constant currency basis,
segment operating income increased 21 percent, with 70 basis points
of operating margin expansion when compared to the prior year
period. This increase was driven by continued scale leverage,
favorable sales mix, supply chain investments and related
efficiencies, and the profit contribution from completed
acquisitions.
| |
| Americas Foods & Beverages Segment
Summary |
| $ In millions |
Three Months Ended June 30, |
| |
|
2016 |
|
|
|
2015 |
|
|
% Change* |
| Reported Net Sales |
$ |
898 |
|
|
$ |
791 |
|
|
|
+14 |
% |
| Constant Currency Net Sales |
$ |
899 |
|
|
$ |
791 |
|
|
|
+14 |
% |
| Organic Constant Currency Net Sales |
$ |
836 |
|
|
$ |
791 |
|
|
|
+6 |
% |
| |
|
|
|
|
|
| Reported Segment Operating Income |
$ |
106 |
|
|
$ |
89 |
|
|
|
+19 |
% |
| Adj. Segment Operating Income |
$ |
105 |
|
|
$ |
87 |
|
|
|
+21 |
% |
| Adj. Constant Currency Segment Op. Income |
$ |
106 |
|
|
$ |
87 |
|
|
|
+21 |
% |
|
|
| *Certain
change percentages may not recalculate using the rounded dollar
amounts provided |
|
|
Plant-based Foods and BeveragesThe Americas
Plant-based Foods and Beverages platform includes Silk® beverages
and yogurts, So Delicious® beverages, frozen desserts and yogurts,
and Vega® nutritional protein powders and bars. Net sales for this
platform increased 25 percent in second quarter 2016 compared to
second quarter 2015. Sales were driven by the contribution of Vega,
which was acquired on August 1, 2015, and organic growth.
Organic sales, which exclude Vega, increased mid-single digits
on a percentage basis in second quarter 2016, driven by continued
strong growth in beverages and yogurts, which was partially offset
by softness in So Delicious frozen desserts due to temporary
customer service disruptions in the quarter that impacted
distribution levels. Nut-based beverages experienced high-single
digit percentage growth, with plant-based yogurts growing over 20
percent in the quarter. Vega continued its strong growth plot in
second quarter 2016, even while lapping prior period distribution
increases. WhiteWave continues to maintain its leadership positions
across all plant-based categories in which it participates.
“While our organic growth rate in U.S. plant-based was lower
than high-single digits in the quarter due to the impact from the
disruption in frozen desserts, we continue to see robust long-term
growth opportunities for plant-based foods and beverages,” said
Blaine McPeak, executive vice president and chief operating
officer. “We have launched a completely new advertising campaign to
further broaden consumer awareness of the benefits of plant-based
and are very excited with new Silk branding and packaging we are
rolling out in the third quarter. We also have several new
innovative products and packaging formats in both Silk and Vega
that we are introducing over the balance of the year.”
Fresh FoodsThe Fresh Foods platform consists of
the Earthbound Farm® brand, which includes organic salads, fruits
and vegetables. While the platform’s frozen product offerings
experienced strong growth in the quarter, net sales declined 2
percent in second quarter 2016 when compared to second quarter
2015, as tighter industry supplies of organic salad could not fully
service demand and as the business continues to rebuild its
distribution following SAP implementation-related disruptions
during fourth quarter 2015.
A larger warehouse for this platform was completed and became
operational at the end of second quarter 2016, and is expected to
begin providing improved efficiencies over the second half of 2016.
Management continues to expect ongoing operating improvements over
the balance of the year and net sales growth in this platform for
2016, driven by strong sales growth in fourth quarter 2016.
Premium DairyThe Premium Dairy platform
includes Horizon Organic® milk and dairy products, macaroni and
cheese, and snacks, along with Wallaby® organic yogurts and kefir
beverages. Net sales for this platform increased 11 percent in
second quarter 2016 compared to second quarter 2015. Increased
sales were primarily driven by the inclusion of Wallaby, which was
acquired on August 31, 2015, which continued its strong growth
trend in the quarter and continues to exceed management’s original
expectations.
Organic sales in this platform grew low-single digits as prior
period price increases on Horizon milks were completely lapped
during second quarter 2016 and conventional milk prices remained at
historically low levels.
The recent innovation of Sir BananasTM bananamilks have
performed well in test markets and are in the process of being
rolled out nationwide. With a broad product portfolio that meets
families’ needs for healthy and convenient kids’ meals and snacks,
along with planned marketing campaigns, management believes this
platform is well positioned for the back-to-school season.
Coffee Creamers and BeveragesThe Coffee
Creamers and Beverages platform includes coffee creamers and
ready-to-drink beverages under the International Delight®, Dunkin
Donuts®, Silk and So Delicious brands, as well as half-and-half
dairy creamers under the LAND O LAKES® and Horizon Organic brands.
Net sales for this platform increased 15 percent in second quarter
2016 compared to second quarter 2015. Organic sales grew in the
mid-teens on a percentage basis in second quarter 2016, driven by
strong performance across WhiteWave’s broad creamer portfolio,
including flavored creamers, plant-based creamers and half-and-half
creamers. With increased velocities and strong share performance,
WhiteWave continues to grow ahead of the coffee creamers and
whiteners categories in which it participates.
Recent innovations in this platform, which include Simply Pure®,
an all-natural and simple ingredient creamer, and StokTM, a
cold-brew iced coffee beverage available in multi-serve and
single-serve formats across traditional retailers and convenience
stores, have been performing well. International Delight also
recently expanded its larger size offerings to further align with
increasing consumer demand for larger package size formats. In
addition, a new International Delight advertising campaign launched
in early second quarter 2016 is delivering encouraging initial
results.
EUROPE FOODS & BEVERAGES SEGMENTThe Europe
Foods & Beverages segment consists of plant-based foods and
beverages that are sold primarily under the Alpro® brand. Net sales
in the segment increased 14 percent on a reported basis and 15
percent on a constant currency basis in second quarter 2016
compared to second quarter 2015. Sales growth was driven primarily
by increased volumes behind continued strong growth in beverages
and plant-based yogurts.
Reported operating income for the Europe Foods & Beverages
segment increased 23 percent in second quarter 2016, compared to
second quarter 2015. On a constant currency basis, segment
operating income increased 38 percent in second quarter 2016, with
over 250 basis points of operating margin expansion when compared
to the prior year period, driven by continued scale leverage,
favorable sales mix, increased internal production levels and other
operating efficiencies.
| |
| Europe Foods & Beverages Segment
Summary |
| $ In millions |
Three Months Ended June 30, |
| |
|
2016 |
|
|
|
2015 |
|
|
% Change* |
| Reported Net Sales |
$ |
151 |
|
|
$ |
133 |
|
|
|
+14 |
% |
| Constant Currency Net
Sales |
$ |
153 |
|
|
$ |
133 |
|
|
|
+15 |
% |
|
|
|
|
|
|
|
| Reported Segment Operating
Income |
$ |
21 |
|
|
$ |
17 |
|
|
|
+23 |
% |
| Constant Currency Segment
Op. Income |
$ |
23 |
|
|
$ |
17 |
|
|
|
+38 |
% |
| |
| *Certain
change percentages may not recalculate using the rounded dollar
amounts provided |
| |
“We are pleased with the strong second quarter results we
achieved on the top and bottom line,” said Greg Christenson,
executive vice president and chief financial officer. “We continue
to expect strong performance over the second half of 2016 behind
continued core growth, additional innovation, and our new branding
and marketing campaigns. We continue to forecast increasing
operating performance over the back half of the year and expect to
deliver on our goals of high-single digit organic constant currency
percentage sales growth and at least 75 basis points of constant
currency operating margin expansion for 2016.”
OTHER ITEMS Danone Merger
Agreement Danone S.A. and WhiteWave entered into a
definitive merger agreement on July 6, 2016, under which Danone
will acquire WhiteWave for $56.25 per share in an all-cash
transaction, representing a total enterprise value of approximately
$12.5 billion, including debt and other WhiteWave liabilities. The
transaction is expected to close by the end of the year, subject to
the approval of WhiteWave’s shareholders, regulatory approvals and
customary conditions.
IPP AcquisitionWhiteWave completed the
acquisition of Innovation Packaging and Process, S.A. DE C.V.
(“IPP”) on June 2, 2016, for a purchase price of approximately $18
million in cash. Founded in 2007 and based in San Luis Potosi,
Mexico, IPP is an aseptic beverage manufacturer that produces a
variety of products for WhiteWave and other parties. The
acquisition supports WhiteWave’s growth initiatives in Latin
America with internal production capacity.
FORWARD OUTLOOKWhile the company expects the
merger with Danone to be completed by the end of 2016, the
following outlook assumes that WhiteWave remains an independent
company through December 31, 2016.
The company provides guidance on a non-GAAP basis and does not
reconcile guidance to GAAP as the company cannot predict certain
elements which are included in reported GAAP results, including
foreign exchange impacts, mark-to-market adjustments of hedging
activities, and costs related to merger and acquisition activities
that may have a significant impact to reported GAAP results.
WhiteWave continues to expect category and volume growth across
its core portfolio and further topline growth in acquired
businesses to drive strong net sales growth over the balance of
2016. Despite currency movements since the company previously
provided its outlook having an increased negative impact to
reported currency net sales growth rates, management continues to
expect full year 2016 net sales growth to be 10.5 percent to 11.5
percent in reported currency and 11.0 percent to 12.0 percent on a
constant currency basis. Management continues to forecast high
single-digit organic net sales percentage growth on a constant
currency basis for full year 2016.
The company continues to expect strong adjusted operating income
growth during 2016 from the benefits of increased internal
production capacity, cost reduction initiatives, further scale
leverage, and increasing profit contributions from completed
acquisitions while maintaining high levels of marketing
investments. For full year 2016, management continues to expect
total operating income percentage growth in the high-teens to
twenty percent in reported currency and in the low twenties on a
constant currency percentage growth basis. Management continues to
target 75 basis points of constant currency operating margin
expansion for full year 2016.
The company continues to support the ongoing operating
investments of its China joint venture behind the development of a
plant-based beverages business. Management continues to expect the
amount of the company’s investment in 2016 to be between $10
million and $12 million on an after-tax basis, and approximately
$0.06 dilutive to full year 2016 adjusted diluted earnings per
share. The timing and amount of actual investments made in 2016 may
vary by quarter.
Reflecting the company’s second quarter 2016 results, management
now expects constant currency adjusted diluted earnings per share
of $1.43 to $1.46 for full year 2016, excluding investments in the
China joint venture. Due to changes in current foreign exchange
rates since providing its previous outlook having a negative impact
to reported currency results, management continues to expect
adjusted diluted earnings per share of $1.38 to $1.41 in reported
currency for full year 2016, excluding investments in the China
joint venture.
| |
| 2016 Forward Outlook Summary |
|
|
|
Full Year 2016 |
|
|
|
Reported Currency |
|
Constant Currency |
| Net Sales Growth |
|
+ 10.5% - 11.5% |
|
+ 11.0% - 12.0% |
| |
|
|
|
|
| |
|
|
|
|
| Adjusted Total Operating Income Growth |
|
+ High Teens to Twenty % |
|
+ Low Twenties % |
| |
|
|
|
|
| |
|
|
|
|
| Adjusted Diluted Earnings Per Share |
|
$1.32 - $1.35 |
|
$1.37 - $1.40 |
| China Joint Venture Impact |
|
≈$0.06 |
|
≈$0.06 |
| |
|
|
|
|
| |
|
|
|
|
| Adjusted Diluted EPS – Excluding China J.V. |
|
$1.38 - $1.41 |
|
$1.43 - $1.46 |
| |
|
|
|
|
CONFERENCE CALLAs a result of its planned
merger with Danone S.A., WhiteWave will not host a conference call
for its second quarter 2016 financial results.
ABOUT THE WHITEWAVE FOODS COMPANYThe WhiteWave
Foods Company is a leading consumer packaged food and beverage
company that manufactures, markets and sells branded plant-based
foods and beverages, coffee creamers and beverages, premium dairy
products and organic produce. It sells products primarily in North
America, Europe and through a joint venture in China. WhiteWave is
focused on providing consumers with innovative, great-tasting food
and beverage choices that meet their increasing desires for
nutritious, flavorful, convenient, and responsibly-produced
products. The Company's widely-recognized, leading brands
distributed in North America include Silk®, So Delicious® and Vega™
plant-based foods and beverages, International Delight® and LAND O
LAKES®* coffee creamers and beverages, Horizon Organic® and Wallaby
Organic® premium dairy products and Earthbound Farm® organic
salads, fruits and vegetables. Its popular plant-based foods and
beverages brands in Europe include Alpro® and Provamel®. To learn
more about WhiteWave, visit www.whitewave.com.
*The LAND O LAKES brand is owned by Land O’Lakes, Inc. and is
used by license.
FORWARD-LOOKING STATEMENTSSome of the
statements in this press release are “forward-looking” and are made
pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. These “forward-looking” statements
include statements under the heading “Forward Outlook” and in the
“2016 Guidance Summary” table, and statements relating to, among
other things, projections of net sales, operating income, and
earnings per share, on a GAAP, adjusted and constant currency basis
during full year 2016, the expected timeline for the completion of
our merger with Danone S.A., our innovation and marketing plans,
the success of our cost improvement and margin expansion
initiatives, anticipated profit growth and margin expansion, the
expected growth and financial impact of Vega, Wallaby and other
business acquisitions, the expected financial impact of our
investments in our joint venture in China, and other statements
that begin with words such as “believe,” “expect,” “estimates,”
“intend,” “forecasts,” “projects” or “anticipate.” These statements
involve risks and uncertainties that may cause results to differ
materially from the statements set forth in this press release.
Financial projections are based on a number of assumptions, and
actual results could be materially different than projected if
those assumptions are erroneous. Completion of our contemplated
merger with Danone S.A. is subject to stockholder approval and the
satisfaction of certain closing conditions, including receipt of
required regulatory approvals, and we cannot be certain that we
will be able to obtain stockholder approval or satisfy or obtain a
waiver of the other conditions. The company’s ability to meet
targeted financial and operating results depend on a variety of
economic, competitive, and governmental factors, including raw
material availability and costs, the demand for the company’s
products, the company’s ability to access capital under its credit
facilities or otherwise, the timing of the completion of our
contemplated merger with Danone S.A., the disruption to our
business caused by the announcement of the contemplated merger and
the risk of stockholder litigation relating to the contemplated
merger, many of which are beyond the company’s control and which
are described in the company’s 2015 Annual Report on Form 10-K
filed with the Securities and Exchange Commission on February 29,
2016 and in our quarterly reports on Form 10-Q. The company’s
ability to profit from its branding initiatives depends on a number
of factors, including consumer acceptance of the company’s
products. Our growth plans depend, in part, on our ability to
innovate successfully and on a cost-effective basis. Our financial
outlook for the full year 2016 may be impacted by our ability or
inability to effectively integrate and operate acquired businesses,
our ability to complete and the timing of the completion of our
contemplated merger with Danone S.A., and the amount of our future
additional investments in our joint venture in China and
expectations for sales and profits or losses in the joint venture.
The company’s expected operating income growth will depend in part
on its ability to cost effectively expand capacity. The
forward-looking statements in this press release speak only as of
the date of this release. The company expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to such statements to reflect any change in its
expectations with regard thereto or any changes in the events,
conditions or circumstances on which any such statement is
based.
EXPLANATION OF NON-GAAP FINANCIAL MEASURESIn
addition to the results prepared in accordance with GAAP, we have
presented certain non-GAAP financial measures, including adjusted
financial information for the periods presented, such as operating
income, EBITDA, net income and diluted earnings per share. We
present these non-GAAP measures in order to facilitate meaningful
evaluation of our operating performance across periods. These
adjustments eliminate certain costs and benefits, including
corporate costs associated with equity awards granted to certain of
our executive officers, employees and directors in conjunction with
the company’s initial public offering in October 2012 (the “IPO
Grants”); non-recurring transaction and integration costs related
to acquisitions and other investments; SAP transition costs;
non-cash income or expense related to mark-to-market adjustments on
interest rate and commodity hedges and amortization related to
foreign exchange contracts; costs incurred to manage, and losses
incurred on our investment in the China joint venture; and with
respect solely to the adjusted EBITDA calculation, other non-cash
charges related to stock-based compensation expense. These
adjustments are intended to provide greater transparency of
underlying profit trends and to allow investors to evaluate our
business on the same basis as our management, which uses these
non-GAAP measures in making financial and operating decisions and
evaluating the company’s performance. These adjustments are not
necessarily indicative of what our actual financial performance
would have been during the periods presented and should be viewed
in addition to, and not as an alternative to, the company’s results
prepared in accordance with GAAP. Further details regarding these
adjustments are included in the tables below.
Basis of PresentationCertain financial measures
in this release are presented on a non-GAAP basis that includes
results provided on a constant currency basis and on an adjusted
basis.
Organic ResultsResults presented on an organic
basis for second quarter 2016 exclude the operating results of
Wallaby acquired on August 31, 2015, the operating results of Vega
acquired on August 1, 2015, the operating results of EIEIO acquired
May 29, 2015 through May 31 2016, and the operating results of IPP
acquired on June 2, 2016.
Constant Currency ResultsThe company determines
its constant currency results by dividing or multiplying, as
appropriate, the current period local currency results by the
currency exchange rates used to translate the company’s financial
results in the prior period to determine what the current period
U.S. dollar operating results would have been if the currency
exchange rate had not changed from the comparable prior period.
Adjusted ResultsSegment financial results for
the three and six months ended June 30, 2015 and 2016 in the
Americas Foods & Beverages segment are adjusted to exclude the
expense related to the mark-to-market adjustment on commodity
hedges, acquisition related non-recurring transaction and
integration costs, and SAP transition costs. All other adjustments
relate to corporate and other items. See reconciliations at the end
of this release for further details and for reconciliations of the
non-GAAP measures to GAAP.
| |
| The WhiteWave Foods Company |
| Condensed Consolidated Statements of Income |
| (Unaudited, GAAP Basis) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
|
|
|
(In thousands, except share and per share data) |
| |
|
|
|
|
|
| |
Net sales |
|
$ |
1,049,648 |
|
|
$ |
923,632 |
|
| |
Cost of sales |
|
679,240 |
|
|
597,474 |
|
| |
Gross profit |
|
370,408 |
|
|
326,158 |
|
| |
Operating
expenses: |
|
|
|
|
| |
Selling, distribution and
marketing |
|
188,465 |
|
|
174,311 |
|
| |
General and administrative |
|
81,115 |
|
|
74,845 |
|
| |
Total operating expenses |
|
269,580 |
|
|
249,156 |
|
| |
Operating income |
|
100,828 |
|
|
77,002 |
|
| |
Other expense: |
|
|
|
|
| |
Interest expense |
|
18,437 |
|
|
13,933 |
|
| |
Other expense, net |
|
1,289 |
|
|
988 |
|
| |
Total other expense |
|
19,726 |
|
|
14,921 |
|
| |
Income before income
taxes |
|
81,102 |
|
|
62,081 |
|
| |
Income tax expense |
|
27,188 |
|
|
22,214 |
|
| |
Income before loss in
equity method investments |
|
53,914 |
|
|
39,867 |
|
| |
Loss in equity method
investments |
|
2,145 |
|
|
2,423 |
|
| |
Net income |
|
$ |
51,769 |
|
|
$ |
37,444 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Weighted average common
shares: |
|
|
|
|
| |
Basic |
|
176,968,212 |
|
|
175,317,750 |
|
| |
Diluted |
|
180,731,638 |
|
|
180,044,401 |
|
| |
|
|
|
|
|
| |
Net income per
share: |
|
|
|
|
| |
Basic |
|
$ |
0.29 |
|
|
$ |
0.21 |
|
| |
Diluted |
|
$ |
0.29 |
|
|
$ |
0.21 |
|
| |
|
|
|
|
|
| The WhiteWave Foods Company |
| Condensed Consolidated Statements of Income |
| (Unaudited, GAAP Basis) |
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
|
|
|
(In thousands, except share and per share data) |
| |
|
|
|
|
|
| |
Net sales |
|
$ |
2,089,343 |
|
|
$ |
1,834,773 |
|
| |
Cost of sales |
|
1,365,168 |
|
|
1,200,041 |
|
| |
Gross profit |
|
724,175 |
|
|
634,732 |
|
| |
Operating
expenses: |
|
|
|
|
| |
Selling, distribution and
marketing |
|
374,309 |
|
|
342,072 |
|
| |
General and administrative |
|
165,201 |
|
|
145,589 |
|
| |
Total operating expenses |
|
539,510 |
|
|
487,661 |
|
| |
Operating income |
|
184,665 |
|
|
147,071 |
|
| |
Other expense: |
|
|
|
|
| |
Interest expense |
|
32,117 |
|
|
22,600 |
|
| |
Other expense, net |
|
3,728 |
|
|
4,787 |
|
| |
Total other expense |
|
35,845 |
|
|
27,387 |
|
| |
Income before income
taxes |
|
148,820 |
|
|
119,684 |
|
| |
Income tax expense |
|
50,096 |
|
|
42,396 |
|
| |
Income before loss in
equity method investments |
|
98,724 |
|
|
77,288 |
|
| |
Loss in equity method
investments |
|
4,355 |
|
|
6,497 |
|
| |
Net income |
|
$ |
94,369 |
|
|
$ |
70,791 |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Weighted average common
shares: |
|
|
|
|
| |
Basic |
|
176,759,289 |
|
|
175,007,291 |
|
| |
Diluted |
|
180,595,772 |
|
|
179,662,304 |
|
| |
|
|
|
|
|
| |
Net income per
share: |
|
|
|
|
| |
Basic |
|
$ |
0.53 |
|
|
$ |
0.40 |
|
| |
Diluted |
|
$ |
0.52 |
|
|
$ |
0.39 |
|
| |
|
|
|
|
|
| The WhiteWave Foods Company |
| Condensed Consolidated Balance Sheets |
| (Unaudited, GAAP Basis) |
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
|
|
(In thousands) |
| ASSETS |
|
|
|
|
| Cash and cash equivalents |
|
$ |
64,345 |
|
|
$ |
38,610 |
|
| Trade receivables, net of allowance
of $1,812 and $2,127 |
|
257,877 |
|
|
257,548 |
|
| Inventories |
|
295,104 |
|
|
270,737 |
|
| Prepaid expenses and other current
assets |
|
50,354 |
|
|
39,782 |
|
| Total current assets |
|
667,680 |
|
|
606,677 |
|
| Equity method investments |
|
26,075 |
|
|
30,772 |
|
| Property, plant, and equipment,
net |
|
1,165,205 |
|
|
1,137,521 |
|
| Identifiable intangible and other
assets, net |
|
1,055,590 |
|
|
1,038,577 |
|
| Goodwill |
|
1,439,769 |
|
|
1,415,322 |
|
| Total Assets |
|
$ |
4,354,319 |
|
|
$ |
4,228,869 |
|
| |
|
|
|
|
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
| Accounts payable and accrued
expenses |
|
$ |
501,729 |
|
|
$ |
549,713 |
|
| Current portion of debt and capital
lease obligations |
|
46,356 |
|
|
51,449 |
|
| Income taxes payable |
|
5,954 |
|
|
3,043 |
|
| Total current liabilities |
|
554,039 |
|
|
604,205 |
|
| Long-term debt and capital lease
obligations, net of debt issuance costs |
|
2,102,729 |
|
|
2,078,940 |
|
| Deferred income taxes |
|
303,266 |
|
|
293,326 |
|
| Other long-term liabilities |
|
46,789 |
|
|
41,490 |
|
| Total Liabilities |
|
3,006,823 |
|
|
3,017,961 |
|
| |
|
|
|
|
| Common stock |
|
1,771 |
|
|
1,762 |
|
| Additional paid-in capital |
|
933,653 |
|
|
914,975 |
|
| Retained earnings |
|
520,074 |
|
|
425,705 |
|
| Accumulated other comprehensive
loss |
|
(108,002 |
) |
|
(131,534 |
) |
| Total Shareholders'
Equity |
|
1,347,496 |
|
|
1,210,908 |
|
| Total Liabilities and
Shareholders' Equity |
|
$ |
4,354,319 |
|
|
$ |
4,228,869 |
|
| |
| The WhiteWave Foods Company |
| Condensed Consolidated Statements of Cash Flows |
| (Unaudited, GAAP Basis) |
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
|
|
|
(In thousands) |
| Operating
Activities |
|
|
|
|
| |
Net income |
|
$ |
94,369 |
|
|
$ |
70,791 |
|
| |
Adjustments to reconcile net income
to net cash provided by operating activities: |
|
|
|
|
| |
Depreciation and amortization |
|
68,388 |
|
|
55,337 |
|
| |
Share-based compensation
expense |
|
19,262 |
|
|
20,433 |
|
| |
Amortization of debt issuance
costs |
|
2,215 |
|
|
2,017 |
|
| |
Unrealized gain on derivative
instruments |
|
(5,003 |
) |
|
(262 |
) |
| |
Loss in equity method
investments |
|
4,355 |
|
|
6,497 |
|
| |
Other |
|
8,839 |
|
|
12,667 |
|
| |
Net change in operating assets and
liabilities, net of acquisitions |
|
(75,879 |
) |
|
(60,617 |
) |
| |
Net cash provided by operating
activities |
|
116,546 |
|
|
106,863 |
|
| |
|
|
|
|
|
| Investing
Activities |
|
|
|
|
| |
Investment in equity method
investments |
|
— |
|
|
(701 |
) |
| |
Payments for acquisitions, net of
cash acquired of $835 and $1,530 |
|
(17,418 |
) |
|
(38,672 |
) |
| |
Proceeds from acquisition
adjustments |
|
— |
|
|
346 |
|
| |
Payments for property, plant, and
equipment |
|
(93,082 |
) |
|
(140,637 |
) |
| |
Proceeds from sale of fixed
assets |
|
87 |
|
|
8,880 |
|
| |
Net cash used in investing
activities |
|
(110,413 |
) |
|
(170,784 |
) |
| |
|
|
|
|
|
| Financing
Activities |
|
|
|
|
| |
Debt related activities |
|
16,485 |
|
|
37,661 |
|
| |
Other financing activities |
|
(495 |
) |
|
7,299 |
|
| |
Net cash provided by financing
activities |
|
15,990 |
|
|
44,960 |
|
| |
Effect of exchange rate changes on
cash and cash equivalents |
|
3,612 |
|
|
(3,871 |
) |
| Increase
(decrease) in cash and cash equivalents |
|
25,735 |
|
|
(22,832 |
) |
| Cash and
cash equivalents, beginning of period |
|
38,610 |
|
|
50,240 |
|
| Cash and
cash equivalents, end of period |
|
$ |
64,345 |
|
|
$ |
27,408 |
|
| |
|
|
|
|
|
| The WhiteWave Foods Company |
| GAAP to Non-GAAP Reconciliation |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2016 |
|
Three months ended June 30, 2015 |
|
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
|
GAAP |
|
Adjustments |
|
Adjusted |
|
|
|
|
(In thousands, except share and per share data) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total net sales |
$ |
1,049,648 |
|
|
$ |
— |
|
|
$ |
1,049,648 |
|
|
$ |
923,632 |
|
|
$ |
— |
|
|
$ |
923,632 |
|
|
| |
Cost of sales |
679,240 |
|
|
(2,665 |
) |
(a)(b) |
676,575 |
|
|
597,474 |
|
|
1,210 |
|
(b) |
598,684 |
|
|
| |
Gross profit |
370,408 |
|
|
2,665 |
|
|
373,073 |
|
|
326,158 |
|
|
(1,210 |
) |
|
324,948 |
|
|
| |
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selling, distribution, and
marketing |
188,465 |
|
|
5,727 |
|
(b) |
194,192 |
|
|
174,311 |
|
|
3,019 |
|
(b) |
177,330 |
|
|
| |
General and administrative |
81,115 |
|
|
(6,297 |
) |
(a) |
74,818 |
|
|
74,845 |
|
|
(12,004 |
) |
(a) |
62,841 |
|
|
| |
Total operating expenses |
269,580 |
|
|
(570 |
) |
|
269,010 |
|
|
249,156 |
|
|
(8,985 |
) |
|
240,171 |
|
|
| |
Operating income |
100,828 |
|
|
3,235 |
|
|
104,063 |
|
|
77,002 |
|
|
7,775 |
|
|
84,777 |
|
|
| |
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest expense |
18,437 |
|
|
— |
|
|
18,437 |
|
|
13,933 |
|
|
— |
|
|
13,933 |
|
|
| |
Other expense, net |
1,289 |
|
|
(1,289 |
) |
(c) |
— |
|
|
988 |
|
|
(988 |
) |
(c) |
— |
|
|
| |
Total other expense |
19,726 |
|
|
(1,289 |
) |
|
18,437 |
|
|
14,921 |
|
|
(988 |
) |
|
13,933 |
|
|
| |
Income before income
taxes |
81,102 |
|
|
4,524 |
|
|
85,626 |
|
|
62,081 |
|
|
8,763 |
|
|
70,844 |
|
|
| |
Income tax expense |
27,188 |
|
|
897 |
|
(d) |
28,085 |
|
|
22,214 |
|
|
2,582 |
|
(d) |
24,796 |
|
|
| |
Income before loss in
equity method investments |
53,914 |
|
|
3,627 |
|
|
57,541 |
|
|
39,867 |
|
|
6,181 |
|
|
46,048 |
|
|
| |
Loss in equity method
investments |
2,145 |
|
|
— |
|
|
2,145 |
|
|
2,423 |
|
|
— |
|
|
2,423 |
|
|
| |
Net income |
$ |
51,769 |
|
|
$ |
3,627 |
|
|
$ |
55,396 |
|
|
$ |
37,444 |
|
|
$ |
6,181 |
|
|
$ |
43,625 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings per
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic |
|
|
|
|
$ |
0.31 |
|
|
|
|
|
|
$ |
0.25 |
|
|
| |
Diluted |
|
|
|
|
$ |
0.31 |
|
|
|
|
|
|
$ |
0.24 |
|
|
| |
Weighted
Average Common Shares: |
|
|
|
|
|
|
|
|
|
| |
Basic |
|
|
|
|
176,968,212 |
|
|
|
|
|
|
175,317,750 |
|
|
| |
Diluted |
|
|
|
|
180,731,638 |
|
|
|
|
|
|
180,044,401 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted net income excluding China joint venture
activities: |
|
|
|
|
|
|
|
|
| |
Adjusted net
income |
|
|
|
|
55,396 |
|
|
|
|
|
|
43,625 |
|
|
| |
Corporate
related joint venture expenses, net of tax |
|
722 |
|
(e) |
|
|
|
|
762 |
|
(e) |
| |
Loss in
China joint venture equity method investment |
|
1,893 |
|
(f) |
|
|
|
|
2,219 |
|
(f) |
| |
Adjusted net income
excluding China joint venture activities |
|
$ |
58,011 |
|
|
|
|
|
|
$ |
46,606 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted
earnings per share excluding China joint venture activities: |
|
|
|
|
|
|
|
|
| |
Basic |
|
|
|
|
$ |
0.33 |
|
|
|
|
|
|
$ |
0.27 |
|
|
| |
Diluted |
|
|
|
|
$ |
0.32 |
|
|
|
|
|
|
$ |
0.26 |
|
|
| |
| The WhiteWave Foods Company |
| GAAP to Non-GAAP Reconciliation |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2016 |
|
Three months ended June 30, 2015 |
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
|
GAAP |
|
Adjustments |
|
Adjusted |
|
|
|
(In thousands) |
| Income
statement amounts by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
| Americas Foods & Beverages |
|
$ |
898,456 |
|
|
$ |
— |
|
|
$ |
898,456 |
|
|
$ |
791,015 |
|
|
$ |
— |
|
|
$ |
791,015 |
|
| Europe Foods & Beverages |
|
151,192 |
|
|
— |
|
|
151,192 |
|
|
132,617 |
|
|
— |
|
|
132,617 |
|
| Total net sales |
|
$ |
1,049,648 |
|
|
$ |
— |
|
|
$ |
1,049,648 |
|
|
$ |
923,632 |
|
|
$ |
— |
|
|
$ |
923,632 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Americas Foods & Beverages |
|
$ |
105,920 |
|
|
$ |
(550 |
) |
(a)(b) |
$ |
105,370 |
|
|
$ |
89,144 |
|
|
$ |
(1,777 |
) |
(b) |
$ |
87,367 |
|
| Europe Foods & Beverages |
|
20,506 |
|
|
— |
|
|
20,506 |
|
|
16,744 |
|
|
— |
|
|
16,744 |
|
| Total reportable segment operating
income |
|
126,426 |
|
|
(550 |
) |
|
125,876 |
|
|
105,888 |
|
|
(1,777 |
) |
|
104,111 |
|
| Corporate and other |
|
(25,598 |
) |
|
3,785 |
|
(a) |
(21,813 |
) |
|
(28,886 |
) |
|
9,552 |
|
(a) |
(19,334 |
) |
| Total operating income |
|
$ |
100,828 |
|
|
$ |
3,235 |
|
|
$ |
104,063 |
|
|
$ |
77,002 |
|
|
$ |
7,775 |
|
|
$ |
84,777 |
|
| |
| The WhiteWave Foods Company |
| Reconciliation of GAAP Net Income to EBITDA and
Adjusted EBITDA |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
|
|
|
(In thousands) |
|
| Net income |
|
$ |
51,769 |
|
|
$ |
37,444 |
|
|
| Interest expense,
net |
|
18,437 |
|
|
13,933 |
|
|
| Income tax expense |
|
27,188 |
|
|
22,214 |
|
|
| Depreciation and
amortization |
|
34,948 |
|
|
27,807 |
|
|
| EBITDA |
|
$ |
132,342 |
|
|
$ |
101,398 |
|
|
| Transaction,
integration & transition costs |
|
10,043 |
|
(a) |
5,214 |
|
(a) |
| Mark to market
adjustments on hedging transactions |
|
(5,897 |
) |
(b)(c) |
(3,240 |
) |
(b)(c) |
| IPO grants &
non-cash stock-based compensation |
|
6,492 |
|
(a)(g) |
12,049 |
|
(a)(g) |
| Adjusted EBITDA |
|
$ |
142,980 |
|
|
$ |
115,421 |
|
|
| |
|
|
|
|
|
| Corporate related joint
venture expenses |
|
$ |
1,076 |
|
(e) |
$ |
1,172 |
|
(e) |
| Loss in China joint
venture equity method investment |
|
1,893 |
|
(f) |
2,219 |
|
(f) |
| Adjusted EBITDA excluding China
joint venture activities |
|
$ |
145,949 |
|
|
$ |
118,812 |
|
|
| |
| The WhiteWave Foods Company |
| GAAP to Non-GAAP Reconciliation |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2016 |
|
Six months ended June 30, 2015 |
|
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
|
GAAP |
|
Adjustments |
|
Adjusted |
|
|
|
|
(In thousands, except share and per share data) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total net sales |
$ |
2,089,343 |
|
|
$ |
— |
|
|
$ |
2,089,343 |
|
|
$ |
1,834,773 |
|
|
$ |
— |
|
|
$ |
1,834,773 |
|
|
| |
Cost of sales |
1,365,168 |
|
|
(6,732 |
) |
(a)(b) |
1,358,436 |
|
|
1,200,041 |
|
|
1,443 |
|
(b) |
1,201,484 |
|
|
| |
Gross profit |
724,175 |
|
|
6,732 |
|
|
730,907 |
|
|
634,732 |
|
|
(1,443 |
) |
|
633,289 |
|
|
| |
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selling, distribution, and
marketing |
374,309 |
|
|
5,950 |
|
(b) |
380,259 |
|
|
342,072 |
|
|
3,608 |
|
(b) |
345,680 |
|
|
| |
General and administrative |
165,201 |
|
|
(8,914 |
) |
(a) |
156,287 |
|
|
145,589 |
|
|
(17,507 |
) |
(a) |
128,082 |
|
|
| |
Total operating expenses |
539,510 |
|
|
(2,964 |
) |
|
536,546 |
|
|
487,661 |
|
|
(13,899 |
) |
|
473,762 |
|
|
| |
Operating income |
184,665 |
|
|
9,696 |
|
|
194,361 |
|
|
147,071 |
|
|
12,456 |
|
|
159,527 |
|
|
| |
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest expense |
32,117 |
|
|
— |
|
|
32,117 |
|
|
22,600 |
|
|
— |
|
|
22,600 |
|
|
| |
Other expense, net |
3,728 |
|
|
(3,727 |
) |
(c) |
1 |
|
|
4,787 |
|
|
(4,787 |
) |
(c) |
— |
|
|
| |
Total other expense |
35,845 |
|
|
(3,727 |
) |
|
32,118 |
|
|
27,387 |
|
|
(4,787 |
) |
|
22,600 |
|
|
| |
Income before income
taxes |
148,820 |
|
|
13,423 |
|
|
162,243 |
|
|
119,684 |
|
|
17,243 |
|
|
136,927 |
|
|
| |
Income tax expense |
50,096 |
|
|
3,962 |
|
(d) |
54,058 |
|
|
42,396 |
|
|
5,463 |
|
(d) |
47,859 |
|
|
| |
Income before loss in
equity method investments |
98,724 |
|
|
9,461 |
|
|
108,185 |
|
|
77,288 |
|
|
11,780 |
|
|
89,068 |
|
|
| |
Loss in equity method
investments |
4,355 |
|
|
— |
|
|
4,355 |
|
|
6,497 |
|
|
— |
|
|
6,497 |
|
|
| |
Net income |
$ |
94,369 |
|
|
$ |
9,461 |
|
|
$ |
103,830 |
|
|
$ |
70,791 |
|
|
$ |
11,780 |
|
|
$ |
82,571 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings per
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic |
|
|
|
|
$ |
0.59 |
|
|
|
|
|
|
$ |
0.47 |
|
|
| |
Diluted |
|
|
|
|
$ |
0.57 |
|
|
|
|
|
|
$ |
0.46 |
|
|
| |
Weighted
Average Common Shares: |
|
|
|
|
|
|
|
|
|
| |
Basic |
|
|
|
|
176,759,289 |
|
|
|
|
|
|
175,007,291 |
|
|
| |
Diluted |
|
|
|
|
180,595,772 |
|
|
|
|
|
|
179,662,304 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted net income excluding China joint venture
activities: |
|
|
|
|
|
|
|
|
|
| |
Adjusted net
income |
|
|
|
|
103,830 |
|
|
|
|
|
|
82,571 |
|
|
| |
Corporate
related joint venture expenses, net of tax |
|
1,259 |
|
(e) |
|
|
|
|
1,041 |
|
(e) |
| |
Loss in
China joint venture equity method investment |
|
3,887 |
|
(f) |
|
|
|
|
6,157 |
|
(f) |
| |
Adjusted net income
excluding China joint venture activities |
|
$ |
108,976 |
|
|
|
|
|
|
$ |
89,769 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted
earnings per share excluding China joint venture activities: |
|
|
|
|
|
|
|
|
| |
Basic |
|
|
|
|
$ |
0.62 |
|
|
|
|
|
|
$ |
0.51 |
|
|
| |
Diluted |
|
|
|
|
$ |
0.60 |
|
|
|
|
|
|
$ |
0.50 |
|
|
| |
| The WhiteWave Foods Company |
| GAAP to Non-GAAP Reconciliation |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2016 |
|
Six months ended June 30, 2015 |
|
|
|
GAAP |
|
Adjustments |
|
Adjusted |
|
GAAP |
|
Adjustments |
|
Adjusted |
|
|
|
(In thousands) |
| Income
statement amounts by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
| Americas Foods & Beverages |
|
$ |
1,793,218 |
|
|
$ |
— |
|
|
$ |
1,793,218 |
|
|
$ |
1,571,388 |
|
|
$ |
— |
|
|
$ |
1,571,388 |
|
| Europe Foods & Beverages |
|
296,125 |
|
|
— |
|
|
296,125 |
|
|
263,385 |
|
|
— |
|
|
263,385 |
|
| Total net sales |
|
$ |
2,089,343 |
|
|
$ |
— |
|
|
$ |
2,089,343 |
|
|
$ |
1,834,773 |
|
|
$ |
— |
|
|
$ |
1,834,773 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Americas Foods & Beverages |
|
$ |
201,635 |
|
|
$ |
5,437 |
|
(a)(b) |
$ |
207,072 |
|
|
$ |
170,850 |
|
|
$ |
(209 |
) |
(a)(b) |
$ |
170,641 |
|
| Europe Foods & Beverages |
|
35,710 |
|
|
— |
|
|
35,710 |
|
|
31,108 |
|
|
— |
|
|
31,108 |
|
| Total reportable segment operating
income |
|
237,345 |
|
|
5,437 |
|
|
242,782 |
|
|
201,958 |
|
|
(209 |
) |
|
201,749 |
|
| Corporate and other |
|
(52,680 |
) |
|
4,259 |
|
(a) |
(48,421 |
) |
|
(54,887 |
) |
|
12,665 |
|
(a) |
(42,222 |
) |
| Total operating income |
|
$ |
184,665 |
|
|
$ |
9,696 |
|
|
$ |
194,361 |
|
|
$ |
147,071 |
|
|
$ |
12,456 |
|
|
$ |
159,527 |
|
| |
| The WhiteWave Foods Company |
| Reconciliation of GAAP Net Income to EBITDA and
Adjusted EBITDA |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
|
|
|
(In thousands) |
|
| Net income |
|
$ |
94,369 |
|
|
$ |
70,791 |
|
|
| Interest expense,
net |
|
32,117 |
|
|
22,600 |
|
|
| Income tax expense |
|
50,096 |
|
|
42,396 |
|
|
| Depreciation and
amortization |
|
68,388 |
|
|
55,337 |
|
|
| EBITDA |
|
$ |
244,970 |
|
|
$ |
191,124 |
|
|
| Transaction,
integration & transition costs |
|
17,790 |
|
(a) |
7,705 |
|
(a) |
| Mark to market
adjustments on hedging transactions |
|
(5,004 |
) |
(b)(c) |
(261 |
) |
(b)(c) |
| IPO grants &
non-cash stock-based compensation |
|
19,515 |
|
(a)(g) |
25,515 |
|
(a)(g) |
| Adjusted EBITDA |
|
$ |
277,271 |
|
|
$ |
224,083 |
|
|
| |
|
|
|
|
|
| Corporate related joint
venture expenses |
|
$ |
1,888 |
|
(e) |
$ |
1,601 |
|
(e) |
| Loss in China joint
venture equity method investment |
|
3,887 |
|
(f) |
6,157 |
|
(f) |
| Adjusted EBITDA excluding China
joint venture activities |
|
$ |
283,046 |
|
|
$ |
231,841 |
|
|
|
|
The adjusted results differ from WhiteWave’s results under GAAP
due to the following:
(a) The adjustment reflects:i. Elimination of stock compensation
expense for IPO grants.
- $0.4 million for the three months ended June 30, 2016
- $6.8 million for the three months ended June 30, 2015
- $0.6 million for the six months ended June 30, 2016
- $9.8 million for the six months ended June 30, 2015
ii. Elimination of non-recurring purchase accounting
adjustments, transaction and integration costs related to merger
and acquisition activities and other investments.Americas Foods
& Beverages
- $5.1 million in SAP implementation related costs and $1.6
million of other transaction and integration costs related to
acquisitions for the three months ended June 30, 2016
- $2.5 million transaction and integration costs related to
acquisitions for the three months ended June 30, 2015
- $12.1 million in SAP implementation related costs and $2.1
million of other transaction and integration costs related to
acquisitions for the six months ended June 30, 2016
- $4.8 million transaction and integration costs related to
acquisitions for the six months ended June 30, 2015
Corporate
- $3.4 million in transaction costs related to merger and
acquisition activities for the three months ended June 30,
2016
- $2.7 million in transaction costs related to acquisitions for
the three months ended June 30, 2015
- $3.6 million in transaction costs related to merger and
acquisition activities for the six months ended June 30, 2016
- $2.9 million in transaction costs related to acquisitions for
the six months ended June 30, 2015
(b) The adjustment reflects elimination of the income related to
the mark-to-market adjustment on commodity hedges.
- $7.2 million for the three months ended June 30, 2016
- $4.2 million for the three months ended June 30, 2015
- $8.7 million for the six months ended June 30, 2016
- $5.1 million for the six months ended June 30, 2015
(c) The adjustment reflects elimination of the expense related
to the mark-to-market adjustment on interest rate hedges and
amortization of forward points on foreign exchange contracts.
- $1.3 million for the three months ended June 30, 2016
- $1.0 million for the three months ended June 30, 2015
- $3.7 million for the six months ended June 30, 2016
- $4.8 million for the six months ended June 30, 2015
(d) Income tax in the adjustments columns represent the
adjustment to income tax expense required to arrive at an adjusted
effective tax rate on adjusted income before taxes.
(e) The adjustment reflects the elimination of costs incurred to
manage our China Joint Venture investment.
- $1.1 million ($0.7 million, net of tax) for the three months
ended June 30, 2016
- $1.2 million ($0.8 million, net of tax) for the three months
ended June 30, 2015
- $1.9 million ($1.3 million, net of tax) for the six months
ended June 30, 2016
- $1.6 million ($1.0 million, net of tax) for the six months
ended June 30, 2015
(f) The adjustment reflects the elimination of the loss incurred
on the investment in the China Joint Venture.
- $1.9 million for the three months ended June 30, 2016
- $2.2 million for the three months ended June 30, 2015
- $3.9 million for the six months ended June 30, 2016
- $6.2 million for the six months ended June 30, 2015
(g) The adjustment reflects non-cash related stock-based
compensation expense, excluding amounts already included in IPO
grants.
- $6.1 million for the three months ended June 30, 2016
- $5.3 million for the three months ended June 30, 2015
- $18.9 million for the six months ended June 30, 2016
- $16.0 million for the six months ended June 30, 2015
CONTACTS
Investor Relations:
Dave Oldani
+1 (303) 635-4747
Media:
Molly Keveney
+1 (303) 635-4529
Whitewave Foods Company (The) (delisted) (NYSE:WWAV)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Whitewave Foods Company (The) (delisted) (NYSE:WWAV)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
