ORLANDO, Fla., Nov. 3, 2021 /PRNewswire/ -- Tupperware
Brands Corporation (NYSE: TUP), a leading global consumer products
company, today reported operating results for the third
quarter ended September 25, 2021. In
connection with the disposition of certain key brands of the
Company's beauty business, the Company has determined that the
necessary criteria have been met to classify these brands as held
for sale assets and discontinued operations, beginning in the third
quarter of 2021. Accordingly, the presentation below reflects
results from continuing operations only.
Third Quarter 2021 Financial Highlights, from continuing
operations
- Net sales were $376.9 million, a
decrease of 11% year over year (or 13% on a constant currency
basis)
- Gross profit was $247.9, or 65.8%
of net sales
- Income from continuing operations was $60.4 million
- Diluted earnings per share was $1.14
- Adjusted diluted earnings per share (non-GAAP) was $1.19
- Adjusted EBITDA (non-GAAP) was $68.9
million
- Debt to EBITDA (as defined in the Company's Credit Agreement)
was 2.28
"We are continuing to build the foundation that will enable us
to strengthen and evolve our business into a global, omnichannel,
premium-branded company, and by expanding into new channels and
product categories, we will achieve sustainable growth over the
long term," said Miguel Fernandez,
President and Chief Executive Officer of Tupperware Brands.
"Despite challenging year-over-year comparisons and the persisting
negative effects of the global pandemic, we are proud of our
ability to post solid results during our ongoing turnaround. We are
as confident as ever in our business outlook, our strategy, and our
ability to execute."
"We continue to execute on our high priority strategic
initiatives, including the divestiture of our non-core beauty
businesses and excess land holdings, the utilization of our share
repurchase authorization, and further implementation of our tax
strategy. These actions will further optimize our capital structure
and position us well to drive long-term growth," said Sandra Harris, Chief Financial Officer and Chief
Operations Officer of Tupperware Brands. "Our third quarter results
demonstrate our ability to continue delivering on our Turnaround
Plan, even while we respond to changing market conditions."
Third Quarter 2021 Operating Results, from continuing
operations
Total net sales were $376.9
million, a decrease of 11% (or 13% on a constant currency
basis) compared to the prior year period.
- Net sales in Asia Pacific were
$112.9 million, a decrease of 13% (or
15% on a constant currency basis) compared to the prior year
period, driven primarily by lockdowns and disruptions caused by the
pandemic.
- Net sales in Europe were
$91.3 million, a decrease of 19% (or
20% on a constant currency basis) compared to the prior year
period, driven primarily by elevated levels of summer
vacationing.
- Net sales in North America
were $103.1 million, a decrease of
11% (or 15% on a constant currency basis) compared to the prior
year period, driven primarily by disruptions resulting from the
implementation of a new sales force solution.
- Net sales in South America
were $69.6 million, an increase of 6%
(or 9% on a constant currency basis) compared to the prior year
period, driven primarily by recruiting efforts and improvements
made to onboarding and training.
Gross profit was $247.9 million,
or 65.8% of net sales, as compared to 68.7% for the prior year
period. The decrease was driven primarily by higher input and
logistics costs, country and product mix, and strategic growth
investments, partially offset by operational efficiencies.
Net income was $60.4 million, as
compared to $29.4 million for the
prior year period. Diluted earnings per share was $1.14, as compared to $0.56 for the prior year period. The increase was
primarily driven by a lower tax rate, partially offset by volume
loss.
Adjusted diluted earnings per share (non-GAAP) was $1.19, as compared to $1.12 for the prior year period. The increase was
primarily driven by a lower tax rate, partially offset by volume
loss.
A reconciliation of non-GAAP measures to comparable GAAP
measures can be found in the tables included in this
release.
Liquidity
As of September 25, 2021, the
Company continued to be in compliance with its financial covenants
under its Credit Agreement, with a debt to EBITDA ratio of
2.28, as compared to 3.72 for the prior year period.
Financial Reporting Presentation in Accordance with Non-Core
Asset Sales
Due to the sale or pending sale of certain key brands of the
Company's beauty business, the Company has determined that these
dispositions represent a strategic shift that will have a major
effect on its results of operations. As such, the results of these
beauty businesses are presented as discontinued operations,
including all comparative prior period information, in the
Company's financial statements. Certain costs previously allocated
to the beauty business for segment reporting purposes do not
qualify for classification within discontinued operations and have
been reallocated to continuing operations. In the third quarter of
2021, the Company recorded a net loss on the held for sale assets
of $148.1 million based on total
expected proceeds less costs to sell. This loss is comprised of
accumulated currency translation losses from discontinued
operations that will be recognized in conjunction with completion
of the sales. Total loss from disposal group is $147.1 million for the year to date period
ended September 25, 2021, which
includes the gain of $1.0 million previously recognized from the
sale of Avroy Shlain in the first quarter of 2021.
Share Repurchase Activity
During the second quarter of 2021, the Company's Board of
Directors authorized share repurchases of up to $250 million of the Company's outstanding shares
of common stock, enhancing the Company's capital allocation policy.
During the third quarter of 2021, the Company repurchased one
million shares of its outstanding common stock for a total
acquisition cost of $25 million. This
represents the maximum amount allowed within the limitations of its
debt covenants, and is the first time since 2018 that the Company
has repurchased any of its outstanding common shares.
Tax Election Change
The Company made an election on its 2020 tax return to change
its capitalization policy for tax purposes related to certain
direct and indirect costs for inventory and self-constructed assets
under IRC Section 263A. This method change will allow the Company
to utilize a portion of its tax attributes in the U.S., primarily
foreign tax credits, that were previously fully reserved. The
non-recurring impact of this method change is a 2020 return to
provision discrete benefit as well as an additional current year
benefit from the release of valuation allowances that will be
included in the annual effective rate for the year. This change
only impacts a portion of the Company's foreign tax credits and the
Company will maintain a valuation allowance against the remaining
balance of foreign tax credits.
Earnings Conference Call
The Company will host its third quarter 2021 earnings conference
call today, November 3, 2021, at
8:30 a.m. ET. A link to the live
webcast can be found under the Events and Presentations of the
Investor Relations section of the Company's website at
https://ir.tupperwarebrands.com. A webcast replay will be made
available in the same section of the Company's Investor Relations
website later today.
About Tupperware Brands Corporation
Tupperware Brands Corporation (NYSE: TUP) is a leading global
consumer products company that designs innovative, functional and
environmentally responsible products that people love and trust.
Founded in 1946, Tupperware's signature container created the
modern food storage category that revolutionized the way the world
stores, serves and prepares food. Today, this iconic brand has more
than 8,500 functional design and utility patents for
solution-oriented kitchen and home products. With a purpose to
nurture a better future, Tupperware products are an alternative to
single-use items. The Company distributes its products into nearly
70 countries primarily through independent representatives around
the world. For more information, visit Tupperwarebrands.com or
follow Tupperware on Facebook, Instagram, LinkedIn and
Twitter.
Forward-Looking Statements
Statements contained in this release that are not historical
fact and use predictive words such as "estimates", "outlook",
"guidance", "expect", "believe", "intend", "designed", "target",
"plans", "may", "will", "we are confident" and similar words are
forward-looking statements. These forward-looking statements and
related assumptions involve risks and uncertainties that could
cause actual results and outcomes to differ materially from any
forward-looking statements or views expressed herein. These risks
and uncertainties include, but are not limited to, the following:
the effects of the outbreak of the novel coronavirus (COVID-19)
pandemic; the Company's ability to ship product to customers on a
timely basis, including because of delays caused by its supply
chain; the Company's ability to sustain the same level of growth in
net sales and net income that we recorded in the prior quarters;
the success of the Company's efforts to improve its profitability
and liquidity position and any capital structure actions that it
may take the Company's ability to comply with its financial
covenants under its term loan and credit agreement; the Company's
ability to remediate the material weaknesses identified, as well as
the reasonable possibility that, until such material weaknesses are
remediated, the material weaknesses could result in a material
misstatement to the Company's annual or interim consolidated
financial statements that would not be prevented or detected;
cyberattacks and ransomware demands that could cause the Company to
not be able to operate its systems and/or access or control its
data, including private data; risks related to the ongoing SEC
inquiry; the success and timing of growth and turnaround
initiatives; leadership development and succession changes;
impairment and other charges related to purchase accounting
goodwill and restructuring actions; the risk of foreign-currency
fluctuations and currency translation impacts on the Company's
business associated with these fluctuations; the Company's ability
to engage in hedging transactions (including, without limitation,
forwards and swaps) with financial institutions to mitigate risks
relating to foreign-currency fluctuations and/or interest rate
fluctuations and the possibility that such hedging transactions,
even if entered into, are unsuccessful; the risk of changes in cash
flow resulting from changes in foreign exchange rates and hedge
settlements; uncertainties related to the interpretation of, and
regulations under, changes in the U.S. tax law and tax laws and
regulations in other countries; the Company's future tax-planning
initiatives; any prospective or retrospective increases in duties
on the Company's products; any adverse results of tax audits or
unfavorable changes to tax laws in the Company's various markets;
risk that direct selling laws and regulations in any of the
Company's markets may be modified, interpreted or enforced in a
manner that results in negative changes to the Company's business
models or negatively impacts its revenue, sales force or business,
including through the interruption of recruiting and sales
activities, loss of licenses, imposition of fines, or any other
adverse actions or events; unpredictable economic and political
conditions and events globally; the success of new product
introductions and promotional programs to generate interest among
the Company's sales force and customers and generate selling
activities on a sustained basis; success of business-to-business
selling arrangements and their timing; success of buyers in
obtaining financing or attracting tenants for commercial and
residential developments; the timing and success of closing asset
sales; risks related to accurately predicting, delivering or
maintaining sufficient quantities of products to support planned
initiatives or launch strategies; governmental approvals of
materials for use in the Company's products; continued competitive
pressures for products or sales force in the Company's markets; and
other risks detailed in the Company's periodic reports as filed in
accordance with the Securities Exchange Act of 1934, as
amended.
The Company updates each month the impact of changes in foreign
exchange rates versus the prior year, posting it on Tupperware
Brands Foreign Exchange Translation Impact Update. Other than
updating for changes in foreign currency exchange rates, the
Company does not intend to update forward-looking information.
Non-GAAP Financial Measures
The Company utilizes non-GAAP financial measures in this
release, which are provided to assist readers' understanding of the
Company's results of operations. These amounts exclude certain
items that at times materially impact the comparability of the
Company's results of operations. The adjusted information is
intended to be indicative of the Company's primary operations, and
to assist readers in evaluating performance and analyzing trends
across periods by providing what the Company believes is a useful
measure for predictive purposes. These results should be considered
in addition to, not as a substitute for, results reported in
accordance with GAAP.
The non-GAAP financial measures include comparisons related to
profit that exclude:
- gains from the sale of property, plant and equipment and other
real estate related operations
- insurance settlement gains or significant charges related to
casualty losses caused by significant weather events, fires or
similar circumstances
- exit or disposal cost obligations related to rationalizing
supply chain operations and other re-engineering activities
performed to wind-down or significantly restructure businesses,
including cumulative translation adjustments recognized in income
upon liquidation of operations in a country, asset sales or fixed
asset impairments, inventory obsolescence and other operating
losses incurred in conjunction with such activities
- certain asset retirement obligations
- pension settlements
- significant discrete impacts of new tax laws upon adoption,
including the impact on cumulative deferred taxes from items
previously recorded as cumulative translation adjustments
- amortization of definite-lived intangible assets
- non-cash impairment charges related to the carrying value of
acquired intangible assets and goodwill
- infrequent costs incurred in connection with a change in
capital structure
- the impact from hyper-inflationary economies on net monetary
assets and other balance sheet positions that impact near term
income
- non-recurring costs associated with the turnaround plan
While these types of events can and do recur periodically, they
are not part of the Company's primary business operations and are
excluded from indicated financial information due to their
distinction from ongoing business operations, inherent volatility
and impact on the comparability of earnings across periods, as
amounts recognized in any given period are not indicative of
amounts that may be recognized in any particular future period.
Additionally, the Company engages in business to business
transactions, in which it sells products to a partner company.
Since the level of these sales is volatile from quarter-to-quarter
and year-to-year, and is largely independent of the activities of
its sales force, the Company at times, in addition to disclosing
reported sales, discloses "core" sales amounts and comparisons,
which excludes amounts sold under business to business
transactions. This illustrates sales results and trends directly
associated with activities of its independent sales force. All
financial information disclosed and presented includes business to
business transactions unless specifically stated as "core" sales or
otherwise indicated.
Also, as the impact of changes in exchange rates is an important
factor in understanding period-to-period comparisons. The Company
believes the presentation of results on a constant currency basis,
in addition to reported results, helps improve readers' ability to
understand the Company's operating results and evaluate performance
in comparison with prior periods. The Company presents constant
currency information that compares results between periods as if
current period exchange rates had been the exchange rates in the
prior period. The Company uses results on a constant currency basis
as one measure to evaluate performance and generally refers to such
amounts as restated or excluding the impact of foreign
currency.
These core sales and constant currency results should be
considered in addition to, not as a substitute for, results
reported in accordance with GAAP. Core sales and results on a
constant currency basis may not be comparable to similarly titled
measures used by other companies and are not measures of
performance presented in accordance with GAAP.
Information included with this release includes references to
EBITDA, debt covenant EBITDA as well as references to debt to debt
covenant EBITDA ratio, which are non-GAAP financial measures used
in the Company's term loan agreement and credit agreement. The
Company uses these measures in its capital allocation decision
process and in discussions with investors, analysts and other
interested parties, and therefore believes it is useful to disclose
this amount and ratio. The Company's calculation of these measures
is in accordance with its term loan agreement and credit agreement,
and is set forth in the reconciliation from GAAP amounts in an
attachment to this release; however, the reader is cautioned that
other companies define these measures in different ways, and
consequently they may not be comparable with similarly labeled
amounts disclosed by others.
Investors: Alexis Callahan,
alexiscallahan@tupperware.com, 321.588.5129
Media: Cameron Klaus,
cameronklaus@tupperware.com, 407.371.9784
Summary Financial
Statements
|
TUPPERWARE BRANDS
CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
13 weeks
ended
|
|
39 weeks
ended
|
(In millions,
except per share amounts)
|
September
25,
2021
|
|
September
26,
2020
|
|
September
25,
2021
|
|
September
26,
2020
|
Net sales
|
376.9
|
|
423.7
|
|
1,207.4
|
|
1,109.5
|
Cost of products
sold
|
129.0
|
|
132.5
|
|
380.0
|
|
362.1
|
Gross
profit
|
247.9
|
|
291.2
|
|
827.4
|
|
747.4
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
190.7
|
|
205.7
|
|
620.5
|
|
608.7
|
Re-engineering
charges
|
1.8
|
|
3.9
|
|
9.7
|
|
29.6
|
(Gain) loss on
disposal of assets
|
(1.7)
|
|
32.3
|
|
(8.9)
|
|
18.5
|
Operating income
(loss)
|
57.1
|
|
49.3
|
|
206.1
|
|
90.6
|
|
|
|
|
|
|
|
|
(Gain) Loss on debt
extinguishment
|
0.0
|
|
(9.9)
|
|
8.1
|
|
(49.9)
|
Interest
expense
|
8.2
|
|
8.2
|
|
29.7
|
|
30.5
|
Interest
income
|
(0.3)
|
|
(0.3)
|
|
(0.9)
|
|
(1.0)
|
Other (income)
expense, net
|
1.2
|
|
0.0
|
|
0.8
|
|
(10.7)
|
Income (loss) from
continuing operations before income taxes
|
48.0
|
|
51.3
|
|
168.4
|
|
121.7
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
(12.4)
|
|
21.9
|
|
32.2
|
|
38.7
|
Income (loss) from
continuing operations
|
60.4
|
|
29.4
|
|
136.2
|
|
83.0
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations
|
4.3
|
|
6.3
|
|
8.1
|
|
10.3
|
Loss on
disposal
|
(148.1)
|
|
0.0
|
|
(147.1)
|
|
0.0
|
Provision (benefit)
for income taxes
|
2.7
|
|
1.3
|
|
2.4
|
|
2.9
|
Gain (loss) on
discontinued operations
|
(146.5)
|
|
5.0
|
|
(141.4)
|
|
7.4
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
(12.4)
|
|
21.9
|
|
32.2
|
|
38.7
|
Net income
(loss)
|
(86.1)
|
|
34.4
|
|
(5.2)
|
|
90.4
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic earnings (loss)
from continuing operations - per share
|
1.22
|
|
0.60
|
|
2.75
|
|
1.69
|
Basic earnings (loss)
from discontinued operations per share
|
(2.97)
|
|
0.10
|
|
(2.85)
|
|
0.15
|
Basic earnings (loss)
per share - Total
|
(1.75)
|
|
0.70
|
|
(0.10)
|
|
1.84
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) from continuing operations - per share
|
1.14
|
|
0.56
|
|
2.56
|
|
1.62
|
Diluted earnings
(loss) from discontinued operations - per share
|
(2.77)
|
|
0.09
|
|
(2.66)
|
|
0.14
|
Diluted earnings
(loss) per share - Total
|
(1.63)
|
|
0.65
|
|
(0.10)
|
|
1.76
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
weighted-average shares
|
49.4
|
|
49.1
|
|
49.5
|
|
49.0
|
Diluted
weighted-average shares
|
52.8
|
|
53.1
|
|
53.1
|
|
51.5
|
TUPPERWARE BRANDS
CORPORATION
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
|
|
|
As
of
|
(In millions,
except share amounts)
|
September
25,
2021
|
|
December
26,
2020
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
123.8
|
|
|
$
|
134.1
|
|
Other current
assets
|
435.5
|
|
|
412.0
|
|
Total current
assets
|
559.3
|
|
|
546.1
|
|
|
|
|
|
Property, plant and
equipment, net
|
166.8
|
|
|
188.7
|
|
Other
assets
|
481.6
|
|
|
485.1
|
|
Total
assets
|
$
|
1,207.7
|
|
|
$
|
1,219.9
|
|
|
|
|
|
Liabilities And
Shareholders' Equity
|
|
|
|
Current debt and
finance lease obligations
|
$
|
512.4
|
|
|
$
|
424.7
|
|
Other current
liabilities
|
508.5
|
|
|
485.0
|
|
Total current
liabilities
|
1,020.9
|
|
|
909.7
|
|
|
|
|
|
Long-term debt and
finance lease obligations
|
166.0
|
|
|
258.6
|
|
Other
liabilities
|
244.1
|
|
|
256.3
|
|
Total
liabilities
|
1,431.0
|
|
|
1,424.6
|
|
|
|
|
|
Total shareholders'
equity (deficit)
|
(223.3)
|
|
|
(204.7)
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,207.7
|
|
|
$
|
1,219.9
|
|
TUPPERWARE BRANDS
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
39 weeks
ended
|
(In
millions)
|
September
25,
2021
|
|
September
26,
2020
|
Operating
Activities
|
|
|
|
Net cash provided by
(used in) operating activities
|
3.6
|
|
|
112.4
|
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(25.1)
|
|
|
(20.5)
|
|
Proceeds from
disposal of assets
|
14.1
|
|
|
16.4
|
|
Net cash provided by
(used in) investing activities
|
(11.0)
|
|
|
(4.1)
|
|
Financing
Activities
|
|
|
|
Term loan
repayment
|
(101.2)
|
|
|
—
|
|
Senior notes
repayment
|
—
|
|
|
(163.9)
|
|
Net increase
(decrease) in short-term debt
|
94.4
|
|
|
100.3
|
|
Debt issuance costs
payment
|
(2.2)
|
|
|
(2.0)
|
|
Finance lease
repayments
|
(1.0)
|
|
|
(0.3)
|
|
Common stock
repurchase
|
(25.0)
|
|
|
—
|
|
Cash payments of
employee withholding tax for stock awards
|
(2.9)
|
|
|
(0.2)
|
|
Proceeds from
exercise of stock options
|
0.5
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
(37.4)
|
|
|
(66.1)
|
|
|
|
|
|
Cash provided (used
in) discontinued operations
|
33.2
|
|
|
(0.5)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(6.4)
|
|
|
(6.5)
|
|
Net change in cash,
cash equivalents and restricted cash
|
(18.0)
|
|
|
35.2
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
150.5
|
|
|
126.1
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
132.5
|
|
|
$
|
161.3
|
|
|
|
|
|
|
|
|
|
Segment Information
The Company manufactures and distributes a broad portfolio of
products, primarily through independent direct sales force members.
Certain operating segments have been aggregated based upon
consistency of economic substance, geography, products, production
process, class of customers and distribution method.
|
|
|
|
|
|
|
|
|
|
|
Change excluding
the foreign
exchange impact
|
|
Percent of total
|
(In
millions)
|
13 weeks
ended
|
|
Change
|
|
Foreign
exchange
impact
|
|
|
13 weeks
ended
|
Sep 25,
2021
|
|
Sep 26,
2020
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
Sep 25,
2021
|
|
Sep 26,
2020
|
Asia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
112.9
|
|
|
$
|
129.6
|
|
|
$
|
(16.7)
|
|
|
(13)
|
%
|
|
$
|
3.1
|
|
|
$
|
(19.8)
|
|
|
(15)
|
%
|
|
30
|
%
|
|
31
|
%
|
Segment
profit
|
$
|
25.7
|
|
|
$
|
36.3
|
|
|
$
|
(10.6)
|
|
|
(29)
|
%
|
|
$
|
1.3
|
|
|
$
|
(11.9)
|
|
|
(32)
|
%
|
|
40
|
%
|
|
37
|
%
|
Segment profit as
percent of net sales
|
22.8
|
%
|
|
28.0
|
%
|
|
N/A
|
|
|
(5.2) pp
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
91.3
|
|
|
$
|
112.5
|
|
|
$
|
(21.2)
|
|
|
(19)
|
%
|
|
$
|
1.9
|
|
|
$
|
(23.1)
|
|
|
(20)
|
%
|
|
24
|
%
|
|
27
|
%
|
Segment
profit
|
$
|
14.7
|
|
|
$
|
27.1
|
|
|
$
|
(12.4)
|
|
|
(46)
|
%
|
|
$
|
0.7
|
|
|
$
|
(13.1)
|
|
|
(47)
|
%
|
|
23
|
%
|
|
28
|
%
|
Segment profit as
percent of net sales
|
16.1
|
%
|
|
24.1
|
%
|
|
N/A
|
|
|
(8.0) pp
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
103.1
|
|
|
$
|
116.2
|
|
|
$
|
(13.1)
|
|
|
(11)
|
%
|
|
$
|
4.6
|
|
|
$
|
(17.7)
|
|
|
(15)
|
%
|
|
27
|
%
|
|
27
|
%
|
Segment
profit
|
$
|
10.5
|
|
|
$
|
18.9
|
|
|
$
|
(8.4)
|
|
|
(44)
|
%
|
|
$
|
1.3
|
|
|
$
|
(9.7)
|
|
|
(48)
|
%
|
|
16
|
%
|
|
19
|
%
|
Segment profit as
percent of net sales
|
10.2
|
%
|
|
16.3
|
%
|
|
N/A
|
|
|
(6.1) pp
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
69.6
|
|
|
$
|
65.4
|
|
|
$
|
4.2
|
|
|
6
|
%
|
|
$
|
(1.8)
|
|
|
$
|
6.0
|
|
|
9
|
%
|
|
19
|
%
|
|
15
|
%
|
Segment
profit
|
$
|
13.5
|
|
|
$
|
15.2
|
|
|
$
|
(1.7)
|
|
|
(11)
|
%
|
|
$
|
(0.1)
|
|
|
$
|
(1.6)
|
|
|
(11)
|
%
|
|
21
|
%
|
|
16
|
%
|
Segment profit as
percent of net sales
|
19.4
|
%
|
|
23.2
|
%
|
|
N/A
|
|
|
(3.8) pp
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
sales
|
$
|
376.9
|
|
|
$
|
423.7
|
|
|
$
|
(46.8)
|
|
|
(11)
|
%
|
|
$
|
7.8
|
|
|
$
|
(54.6)
|
|
|
(13)
|
%
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
N/A - not
applicable
|
pp - percentage
points
|
+ - change greater
than ±100%
|
|
|
|
|
|
|
|
|
|
|
|
Change excluding
the foreign
exchange impact
|
|
Percent of total
|
(In
millions)
|
39 weeks
ended
|
|
Change
|
|
Foreign
exchange
impact
|
|
|
39 weeks
ended
|
Sep 25,
2021
|
|
Sep 26,
2020
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
Sep 25,
2021
|
|
Sep 26,
2020
|
Asia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
343.8
|
|
|
$
|
368.1
|
|
|
$
|
(24.3)
|
|
|
(7)
|
%
|
|
$
|
19.2
|
|
|
$
|
(43.5)
|
|
|
(11)
|
%
|
|
29
|
%
|
|
33
|
%
|
Segment
profit
|
$
|
81.9
|
|
|
$
|
84.8
|
|
|
$
|
(2.9)
|
|
|
(3)
|
%
|
|
$
|
5.2
|
|
|
$
|
(8.1)
|
|
|
(9)
|
%
|
|
34
|
%
|
|
44
|
%
|
Segment profit as
percent of net sales
|
23.8
|
%
|
|
23.0
|
%
|
|
N/A
|
|
|
0.8 pp
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
326.8
|
|
|
$
|
296.3
|
|
|
$
|
30.5
|
|
|
10
|
%
|
|
$
|
14.8
|
|
|
$
|
15.7
|
|
|
5
|
%
|
|
27
|
%
|
|
27
|
%
|
Segment
profit
|
$
|
66.5
|
|
|
$
|
37.8
|
|
|
$
|
28.7
|
|
|
76
|
%
|
|
$
|
1.3
|
|
|
$
|
27.4
|
|
|
70
|
%
|
|
28
|
%
|
|
19
|
%
|
Segment profit as
percent of net sales
|
20.3
|
%
|
|
12.8
|
%
|
|
N/A
|
|
|
7.5 pp
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
343.0
|
|
|
$
|
289.4
|
|
|
$
|
53.6
|
|
|
19
|
%
|
|
$
|
11.6
|
|
|
$
|
42.0
|
|
|
14
|
%
|
|
28
|
%
|
|
26
|
%
|
Segment
profit
|
$
|
42.6
|
|
|
$
|
42.6
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
2.6
|
|
|
$
|
(2.6)
|
|
|
(6)
|
%
|
|
18
|
%
|
|
22
|
%
|
Segment profit as
percent of net sales
|
12.4
|
%
|
|
14.7
|
%
|
|
N/A
|
|
|
(2.3) pp
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
193.8
|
|
|
$
|
155.7
|
|
|
$
|
38.1
|
|
|
24
|
%
|
|
$
|
(11.1)
|
|
|
$
|
49.2
|
|
|
34
|
%
|
|
16
|
%
|
|
14
|
%
|
Segment
profit
|
$
|
46.8
|
|
|
$
|
29.4
|
|
|
$
|
17.4
|
|
|
59
|
%
|
|
$
|
(1.1)
|
|
|
$
|
18.5
|
|
|
66
|
%
|
|
20
|
%
|
|
15
|
%
|
Segment profit as
percent of net sales
|
24.1
|
%
|
|
18.9
|
%
|
|
N/A
|
|
|
5.2 pp
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
sales
|
$
|
1,207.4
|
|
|
$
|
1,109.5
|
|
|
$
|
97.9
|
|
|
9
|
%
|
|
$
|
34.6
|
|
|
$
|
63.3
|
|
|
6
|
%
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
N/A - not
applicable
|
pp - percentage
points
|
+ - change greater
than ±100%
|
Sales Force Statistics
Sales force statistics shown below are collected by the Company
and, in some cases, provided by distributors and sales force.
Active sales force is defined as the average number of sellers
ordering in each cycle over the course of the quarter. Constant
currency changes, or changes excluding foreign exchange impact, are
measured by comparing current year results with those of the prior
year, translated at the current year's foreign exchange rates.
|
Net
Sales
|
|
Active Sales
Force
|
|
Third Quarter
2021
versus
Third Quarter
2020
|
|
13 weeks
ended
|
|
|
September
25,
2021
|
|
September
26,
2020
|
|
|
Segments
|
Change
%
|
|
Change
excluding
foreign exchange impact
%
|
|
Count
|
|
Count
|
|
Change
%
|
Asia
Pacific
|
(13)%
|
|
(15)%
|
|
74,304
|
|
|
117,249
|
|
|
(37)%
|
Europe
|
(19)%
|
|
(20)%
|
|
83,971
|
|
|
106,994
|
|
|
(22)%
|
North
America
|
(11)%
|
|
(15)%
|
|
237,391
|
|
|
225,100
|
|
|
5%
|
South
America
|
6%
|
|
9%
|
|
156,747
|
|
|
148,910
|
|
|
5%
|
Total
|
(11)%
|
|
(13)%
|
|
552,413
|
|
|
598,253
|
|
|
(8)%
|
GAAP to Non-GAAP Financial Measures Reconciliation
GAAP to non-GAAP
Earnings Per Share Reconciliation
|
|
|
13 weeks
ended
|
|
39 weeks
ended
|
(In millions,
except per share amounts)
|
September
25,
2021
|
|
September
26,
2020
|
|
September
25,
2021
|
|
September
26,
2020
|
Net income from
continuing operations
|
$
|
60.4
|
|
|
$
|
29.4
|
|
|
$
|
136.2
|
|
|
$
|
83.0
|
|
|
|
|
|
|
|
|
|
Re-engineering
charges
|
1.8
|
|
|
3.9
|
|
|
9.7
|
|
|
29.6
|
|
(Gain) Loss on debt
extinguishment
|
—
|
|
|
(9.9)
|
|
|
8.1
|
|
|
(49.9)
|
|
(Gain) loss on
disposal of assets
|
(1.7)
|
|
|
32.3
|
|
|
(8.9)
|
|
|
18.5
|
|
Exit costs and
other
|
3.1
|
|
|
3.7
|
|
|
8.0
|
|
|
18.7
|
|
Pension
costs
|
0.2
|
|
|
0.8
|
|
|
0.4
|
|
|
1.2
|
|
Litigation settlement
costs
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
Adjustments before
income taxes
|
4.6
|
|
|
30.8
|
|
|
18.5
|
|
|
18.1
|
|
Provision (benefit)
for income taxes
|
(1.7)
|
|
|
(1.5)
|
|
|
(1.9)
|
|
|
(0.9)
|
|
Net
adjustments
|
$
|
2.9
|
|
|
$
|
29.3
|
|
|
$
|
16.6
|
|
|
$
|
17.2
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss)
|
63.3
|
|
|
58.7
|
|
|
152.8
|
|
|
100.2
|
|
|
|
|
|
|
|
|
|
Basic
weighted-average shares
|
49.4
|
|
|
49.1
|
|
|
49.5
|
|
|
49.0
|
|
Diluted
weighted-average shares
|
52.8
|
|
|
53.1
|
|
|
53.1
|
|
|
51.5
|
|
|
|
|
|
|
|
|
|
Adjusted basic
earnings (loss) per share
|
$
|
1.28
|
|
|
$
|
1.20
|
|
|
$
|
3.09
|
|
|
$
|
2.04
|
|
Adjusted diluted
earnings (loss) per share
|
$
|
1.19
|
|
|
$
|
1.12
|
|
|
$
|
2.87
|
|
|
$
|
1.96
|
|
Net Income to
EBITDA Reconciliation,
Net Income to Debt
Covenant EBITDA Reconciliation
and Total Debt to
Debt Covenant EBITDA Ratio (1)
|
|
|
Four quarters
ending
|
(In
millions)
|
September
25,
2021
|
Net income from
continuing operations
|
$
|
176.0
|
|
|
|
Add:
|
|
Interest
expense
|
37.8
|
|
Provision (benefit)
for income taxes
|
72.2
|
|
Depreciation and
amortization
|
39.2
|
|
EBITDA -
continuing operations
|
$
|
325.2
|
|
|
|
Add:
|
|
Stock-based
compensation expense
|
8.3
|
|
Re-engineering
charges and other expenses
|
29.9
|
|
|
|
Subtract:
|
|
Cash paid for
re-engineering charges
|
(31.6)
|
|
(Gain) Loss on
disposal of assets
|
(41.7)
|
|
|
|
Net Income (loss)
from discontinued operations
|
(159.4)
|
|
|
|
Add:
|
|
Provision (benefit)
for income taxes
|
20.9
|
|
Depreciation and
amortization
|
2.7
|
|
EBITDA -
discontinued operations
|
$
|
(135.8)
|
|
|
|
Subtract:
|
|
(Gain) Loss on
disposal of assets
|
147.1
|
|
|
|
Debt covenant
EBITDA
|
$
|
301.4
|
|
|
|
Total debt
|
$
|
686.9
|
|
|
|
Total debt to debt
covenant EBITDA ratio
|
2.28
|
|
|
|
(1)
|
Amounts and
calculations are based on the definitions and provisions of the
Company's $650.0 million Credit Agreement dated March 29, 2019 and
the $275.0 million Term Loan Credit Agreements dated December 3,
2020 (together "Credit Agreements") and, where applicable, are
based on the trailing four quarter amounts. "Debt covenant EBITDA"
is calculated as defined for "Consolidated EBITDA" in the Credit
Agreements.
|
Net Income to
Adjusted Net Income Reconciliation and
Net Income to
Adjusted EBITDA Reconciliation
|
|
|
Four quarters
ending
|
|
39 weeks
ended
|
|
13 weeks
ended
|
|
13 weeks
ended
|
13 weeks
ended
|
(In
millions)
|
September
25,
2021
|
|
September
25,
2021
|
|
December
26,
2020
|
|
September
25,
2021
|
September
26,
2020
|
Net income from
continuing operations
|
$
|
176.0
|
|
|
$
|
136.2
|
|
|
$
|
39.8
|
|
|
$
|
60.4
|
|
$
|
29.4
|
|
|
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
GAAP to non-GAAP
adjustments
|
2.7
|
|
|
16.6
|
|
|
(13.9)
|
|
|
2.9
|
|
29.6
|
|
Adjusted net
income
|
178.7
|
|
|
152.8
|
|
|
25.9
|
|
|
63.3
|
|
59.0
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest
expense
|
37.8
|
|
|
29.7
|
|
|
8.1
|
|
|
8.2
|
|
8.2
|
|
Adjusted provision
(benefit) for income taxes
|
72.2
|
|
|
34.1
|
|
|
38.1
|
|
|
(12.4)
|
|
21.9
|
|
Depreciation and
amortization
|
39.2
|
|
|
29.2
|
|
|
10.0
|
|
|
9.8
|
|
10.4
|
|
Adjusted
EBITDA
|
$
|
327.9
|
|
|
$
|
245.8
|
|
|
$
|
82.1
|
|
|
$
|
68.9
|
|
$
|
99.5
|
|
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SOURCE Tupperware Brands Corporation