Turnaround Plan Continues; Retail Expansion in
North America
ORLANDO,
Fla., Nov. 2, 2022 /PRNewswire/ -- Tupperware
Brands Corporation (NYSE: TUP), a leading global consumer products
company, today reported operating results for the third quarter
ended September 24, 2022.
Third Quarter 2022 Financial Summary
- Net sales were $302.8 million, a
decrease of 20% year over year (or 14% on a constant currency
basis), compared to $376.9 million in
the prior year period
- Gross profit was $196.6 million,
or 64.9% of net sales, compared to $247.9
million, or 65.8% of net sales, in the prior year
period
- (Loss) income from continuing operations was $(3.8) million, compared to $60.4 million in the prior year period
- Diluted (loss) earnings per share from continuing operations
was $(0.09), compared to $1.14 in the prior year period
- Adjusted diluted earnings per share (non-GAAP) from continuing
operations was $0.14, compared to
$1.19 in the period year period
- Adjusted EBITDA (non-GAAP, per debt covenant)1 from
continuing operations was $29.9
million, compared to $77.7
million in the prior year period
- Consolidated Net Leverage Ratio (non-GAAP) was 4.17, within the
4.5 debt covenant limit for the quarter
The Company continues to implement its Turnaround Plan; fixing
the core, right sizing the business, divesting non-core assets and
opening new channels of distribution. "While we are excited to
expand the Tupperware ecosystem to have some of our products
available at a major US retailer early in the fourth quarter, we
faced internal and external challenges in the third quarter that
eroded our business economics," said Miguel
Fernandez, President and Chief Executive Officer of
Tupperware Brands. We experienced decelerating top line trends in
Asia Pacific and North America, and continuing declines
in Europe given ongoing
geopolitical tensions and the difficult macroeconomic environment
there. These trends were partially offset by continued
positive sales growth in South
America, where pricing actions have more than offset a
modest decrease in sales force activity. Additionally,
currency headwinds were more than expected given the continued
strengthening of the dollar against most major currencies.
"While we continue to make investments that are essential for
our turnaround, we remain disciplined to ensure we are focused on
meeting our debt covenants, while making decisions that we believe
will improve long term profitability," said Mariela Matute, Chief Financial Officer of
Tupperware Brands. "Given the revenue trends year to date, we
expect to take additional restructuring actions in the fourth
quarter, as well as implementing stringent inventory reduction
programs."
Third Quarter 2022 Operating Results
Total net sales were $302.8
million, a decrease of 20% (or 14% on a constant currency
basis) compared to the prior year period. The decrease was driven
primarily by lower overall sales force activity, continuing
lockdowns in China, lower consumer
sentiment in Europe and adverse
impact to unit volumes due to price elasticity, partially offset by
strength in South America, driven
by retention efforts and promotional campaigns, as well as the
overall benefit from broad-based price increases taken throughout
the year. For detailed performance by region, please refer to the
segment tables in the appended exhibit.
Gross profit was $196.6 million,
as compared to $247.9 million for the
prior year period. Gross margin was 64.9%, as compared to
65.8% for the prior year period. The decrease was driven by lower
volumes, higher resin and logistics costs, and country and product
mix, partially offset by additional pricing actions taken during
the quarter.
Selling, General and Administrative expenses were $175.6 million, a decline of 7.9% from
$190.7 million in the prior
year. However, it was 740 basis points higher as a percent of
sales given the magnitude of the sales declines experienced in the
quarter. While the Company believes it is making progress on
its right sizing efforts, it continues to make investments in
conjunction with the Turnaround Plan, and the Company is also
experiencing inflation in its freight and labor costs.
1 "Adjusted EBITDA (non-GAAP, per debt
covenant)" is calculated the same way as the non-GAAP measure "Debt
covenant EBITDA" that the Company disclosed in its prior earnings
releases.
Note: All figures reflect results from continuing operations
only. A reconciliation of non-GAAP measures to comparable GAAP
measures can be found in the tables included in this
release.
(Loss) income from continuing operations was $(3.8) million, as compared to $60.4 million for the prior year period. Diluted
(loss) earnings per share from continuing operations was
$(0.09), as compared to $1.14 for the prior year period. Adjusted diluted
earnings per share from continuing operations (non-GAAP) was
$0.14, as compared to $1.19 for the prior year period. The decrease was
driven by lower volumes, higher resin costs, logistics costs and
tax rate.
Personnel Changes
The Company is pleased to announce that, as part of the next
chapter of the Turnaround Plan, Hector
Lezama has been promoted to Chief Commercial Officer (CCO)
to holistically oversee the Company's efforts to achieve
sustainable growth and profitability. He will be responsible
for guiding all commercial activities around the world.
Liquidity and Balance Sheet
Cash balances at the end of the quarter were $103 million, compared to $267 million as of the end of 2021. Total
debt was $704.0 million, compared to
$684.8 million a year ago. Cash
flow from operations was an outflow of $65.8
million year to date driven by an increase in working
capital and lower than expected earnings. The Company's recent
credit agreement amendment calls for the maximum leverage ratio to
decrease from 4.5x in the third quarter to 4.25x in the following
two quarters (the fourth quarter of 2022 and the first quarter of
2023).
The Company has experienced volatility in earnings during the
nine months ended September 24, 2022
as it executes the Turnaround Plan and responds to the
unpredictability in the market related to recessionary concerns,
inflation and COVID lockdowns. As of September 24, 2022, the Company was in compliance
with its financial covenants in the First Amendment to the Credit
Agreement. Due to the volatility in the Company's earnings and
progressive tightening of the financial covenants in the First
Amendment to the Credit Agreement, it is probable that the Company
will not be able to maintain compliance with the covenants in its
Credit Agreement, including the existing Consolidated Net Leverage
Ratio covenant, for the next twelve months, which raises
substantial doubt about the Company's ability to continue as a
going concern. The Company is in negotiations with its lenders to
amend the Credit Agreement; however, the Company's ability to amend
its covenants, obtain a waiver or otherwise refinance its debt, as
well as the timing and terms of any such amendment or refinancing,
are dependent upon a number of factors, and there can be no
assurance that the Company will be successful in such efforts.
53rd Week
Due to the timing of the Company's fiscal calendar, 2022 will
have 53 weeks as compared to 52 weeks in 2021, which will occur
during the last week of the calendar year. The Company
expects the extra week in 2022 to contribute an incremental 5% to
sales in the fourth quarter and 1% to the full year.
Earnings Conference Call
The Company will host its third quarter 2022 earnings conference
call today, November 2, 2022, at
8:30 a.m. ET. A link to the live
webcast can be found under the Events and Presentations section of
the Company's Investor Relations page on 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", "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 continuing effects of the novel coronavirus (COVID-19)
pandemic; the successful execution of the Company's Turnaround
Plan; the effects of inflation on the Company's business; the sale
of the Company's Nuvo business; the impact of the Russia-Ukraine conflict on the Company's business;
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 it 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 access to, and the costs of, financing and other sources
of liquidity and the potential that banks with which the Company
maintains lines of credit may be unable to fulfill their
commitments; the costs and covenant restrictions associated with
the Company's current credit facility with Wells Fargo Bank, N.A.
and the other lenders; the Company's ability to comply with, or
further amend, financial covenants under its credit agreement and
its ability to repay or refinance the debt outstanding under its
current credit facility and take other actions to address its
capital structure, as well as potential downgrades to the Company's
credit ratings; the absence of foreign exchange lines of credit;
the potential impact of management's determination that the Company
may not be able to continue to operate as a going concern;
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; 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 litigation against the Company, including
pending securities class action lawsuits filed against the Company
and certain of its current and former officers and directors; 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 available at
https://ir.tupperwarebrands.com/financial-information/foreign-exchange-impact.
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, specifically, Adjusted Diluted Earnings Per Share from
continuing operations ("Adjusted Diluted Earnings Per Share"),
Adjusted EBITDA (non-GAAP, per debt covenant), and Consolidated Net
Leverage Ratio, each of which are provided to assist readers'
understanding of the Company's results of operations. The Company
believes Adjusted Diluted Earnings Per Share is useful as it is
used by management in their capital allocation decision process and
in discussions with investors, analysts, and other interested
parties. This measure is based on a continuing operations basis.
Adjusted EBITDA (non-GAAP, per debt covenant) and Consolidated Net
Leverage Ratio are useful as they reflect the Company's liquidity
as required under its credit facility. These measures are based on
a consolidated basis with the results of both continuing operations
and discontinued operations included. 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.
1 Information included with this release includes references to
Adjusted Diluted Earnings Per Share, and covenants under the
Company's credit agreement with Wells Fargo Bank, N.A.: Net
Consolidated Leverage Ratio and Adjusted EBITDA (non-GAAP, per debt
covenant). The Company uses Adjusted Diluted Earnings Per Share as
this measure is used in its capital allocation decision process and
in discussions with investors, analysts and other interested
parties, while management believes Net Consolidated Leverage Ratio
and Adjusted EBITDA (non-GAAP, per debt covenant) are useful to
investors as they are used by management to assess the Company's
liquidity. The Company's calculation of its Net Consolidated
Leverage Ratio and Adjusted EBITDA (non-GAAP, per debt covenant) is
in accordance with its credit agreement, and such
calculations, as well as the Company's calculation of Adjusted
Diluted Earnings Per Share, 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: Douglas M. Lane, CFA,
douglaslane@tupperware.com, (321) 503-9640
Media: Cameron Klaus,
cameronklaus@tupperware.com, (407) 371-9784
Summary Financial Statements
TUPPERWARE BRANDS
CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
(Unaudited)
|
|
|
13 weeks
ended
|
|
39 weeks
ended
|
(In millions, except
per share amounts)
|
September 24,
2022
|
|
September 25,
2021
|
|
September 24,
2022
|
|
September 25,
2021
|
Net sales
|
$
302.8
|
|
$
376.9
|
|
$
991.3
|
|
$
1,207.4
|
Cost of products
sold
|
106.2
|
|
129.0
|
|
352.0
|
|
380.0
|
Gross
profit
|
196.6
|
|
247.9
|
|
639.3
|
|
827.4
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
175.6
|
|
190.7
|
|
565.9
|
|
620.5
|
Re-engineering
charges
|
4.5
|
|
1.8
|
|
13.0
|
|
9.7
|
Loss (gain) on disposal
of assets
|
0.7
|
|
(1.7)
|
|
2.3
|
|
(8.9)
|
Operating
income
|
15.8
|
|
57.1
|
|
58.1
|
|
206.1
|
|
|
|
|
|
|
|
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
8.1
|
Interest
expense
|
8.3
|
|
8.2
|
|
18.9
|
|
29.7
|
Interest
income
|
(1.3)
|
|
(0.3)
|
|
(3.2)
|
|
(0.9)
|
Other expense,
net
|
1.6
|
|
1.2
|
|
6.6
|
|
0.8
|
Income from continuing
operations before income taxes
|
7.2
|
|
48.0
|
|
35.8
|
|
168.4
|
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes
|
11.0
|
|
(12.4)
|
|
32.6
|
|
32.2
|
(Loss) income from
continuing operations
|
(3.8)
|
|
60.4
|
|
3.2
|
|
136.2
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
(Loss) income from
operations of discontinued operations before income
taxes
|
(0.7)
|
|
4.3
|
|
(6.2)
|
|
8.1
|
Gain (loss) on held for
sale assets and dispositions
|
22.6
|
|
(148.1)
|
|
21.4
|
|
(147.1)
|
Provision for income
taxes
|
1.3
|
|
2.7
|
|
0.5
|
|
2.4
|
Income (loss) on
discontinued operations
|
20.6
|
|
(146.5)
|
|
14.7
|
|
(141.4)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
16.8
|
|
$
(86.1)
|
|
$
17.9
|
|
$
(5.2)
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic (loss)
earnings from continuing operations - per share
|
$
(0.09)
|
|
$
1.22
|
|
$
0.07
|
|
$
2.75
|
Basic earnings (loss)
from discontinued operations - per share
|
0.47
|
|
(2.97)
|
|
0.32
|
|
(2.85)
|
Basic earnings (loss)
per share - Total
|
$
0.38
|
|
$
(1.75)
|
|
$
0.39
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings
from continuing operations - per share
|
$
(0.09)
|
|
$
1.14
|
|
$
0.07
|
|
$
2.56
|
Diluted earnings (loss)
from discontinued operations - per share
|
0.47
|
|
(2.77)
|
|
0.30
|
|
(2.66)
|
Diluted earnings (loss)
per share - Total
|
$
0.38
|
|
$
(1.63)
|
|
$
0.37
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
|
Basic weighted-average
shares
|
44.5
|
|
49.4
|
|
46.0
|
|
49.5
|
Diluted
weighted-average shares
|
44.5
|
|
52.8
|
|
49.0
|
|
53.1
|
TUPPERWARE BRANDS
CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
As of
|
(In millions, except
share amounts)
|
September
24,
2022
|
|
December 25,
2021
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
102.9
|
|
$
267.2
|
Other current
assets
|
380.0
|
|
381.0
|
Total current
assets
|
482.9
|
|
648.2
|
|
|
|
|
Property, plant and
equipment, net
|
149.6
|
|
160.9
|
Other assets
|
421.1
|
|
446.3
|
Total
assets
|
$ 1,053.6
|
|
$ 1,255.4
|
|
|
|
|
Liabilities And
Shareholders' Equity
|
|
|
|
Current debt and
finance lease obligations
|
$
13.0
|
|
$
8.9
|
Other current
liabilities
|
361.8
|
|
547.0
|
Total current
liabilities
|
374.8
|
|
555.9
|
|
|
|
|
Long-term debt and
finance lease obligations
|
687.8
|
|
700.5
|
Other
liabilities
|
166.4
|
|
206.1
|
Total
liabilities
|
1,229.0
|
|
1,462.5
|
|
|
|
|
Total shareholders'
equity (deficit)
|
(175.4)
|
|
(207.1)
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 1,053.6
|
|
$ 1,255.4
|
TUPPERWARE BRANDS
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
39 weeks
ended
|
(In
millions)
|
September
24,
2022
|
|
September
25,
2021
|
Operating
Activities
|
|
|
|
Net cash (used in)
provided by operating activities
|
$
(65.8)
|
|
$
3.6
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(25.9)
|
|
(25.1)
|
Proceeds from disposal
of assets
|
4.1
|
|
14.1
|
Net cash used in in
investing activities
|
(21.8)
|
|
(11.0)
|
Financing
Activities
|
|
|
|
Term loan
repayment
|
(7.1)
|
|
(101.2)
|
Borrowings on revolver
facility
|
209.0
|
|
—
|
Repayment of revolver
facility
|
(188.2)
|
|
—
|
Net increase in
short-term debt
|
2.0
|
|
94.4
|
Debt issuance costs
payment
|
(1.4)
|
|
(2.2)
|
Finance lease
repayments
|
(1.7)
|
|
(1.0)
|
Common stock
repurchase
|
(75.0)
|
|
(25.0)
|
Cash payments of
employee withholding tax for stock awards
|
(1.9)
|
|
(2.9)
|
Proceeds from exercise
of stock options
|
—
|
|
0.5
|
Net cash used in
financing activities
|
(64.3)
|
|
(37.4)
|
Discontinued
Operations
|
|
|
|
Cash (used in) provided
by operating activities
|
(4.8)
|
|
2.7
|
Cash provided by
investing activities
|
6.9
|
|
30.5
|
Cash provided by
discontinued operations
|
2.1
|
|
33.2
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(12.4)
|
|
(6.4)
|
Net change in cash,
cash equivalents and restricted cash
|
(162.2)
|
|
(18.0)
|
Cash, cash equivalents
and restricted cash at beginning of year
|
273.8
|
|
150.5
|
Cash, cash equivalents
and restricted cash at end of period
|
$
111.6
|
|
$
132.5
|
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 24,
2022
|
|
Sep 25,
2021
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
Sep 24,
2022
|
|
Sep 25,
2021
|
Asia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
85.4
|
|
$
112.9
|
|
$
(27.5)
|
|
(24) %
|
|
$
(8.1)
|
|
$
(19.4)
|
|
(19) %
|
|
28 %
|
|
30 %
|
Segment
profit
|
$
11.1
|
|
$
25.7
|
|
$
(14.6)
|
|
(57) %
|
|
$
(0.5)
|
|
$
(14.1)
|
|
(56) %
|
|
34 %
|
|
40 %
|
Segment profit as
percent of net sales
|
13.0 %
|
|
22.8 %
|
|
N/A
|
|
(9.8) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
60.8
|
|
$
91.3
|
|
$
(30.5)
|
|
(33) %
|
|
$
(11.5)
|
|
$
(19.0)
|
|
(24) %
|
|
20 %
|
|
24 %
|
Segment
profit
|
$
2.0
|
|
$
14.7
|
|
$
(12.7)
|
|
(86) %
|
|
$
(1.8)
|
|
$
(10.9)
|
|
(84) %
|
|
6 %
|
|
23 %
|
Segment profit as
percent of net sales
|
3.3 %
|
|
16.1 %
|
|
N/A
|
|
(12.8) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
86.3
|
|
$
103.1
|
|
$
(16.8)
|
|
(16) %
|
|
$
(0.5)
|
|
$
(16.3)
|
|
(16) %
|
|
29 %
|
|
27 %
|
Segment
profit
|
$
5.7
|
|
$
10.5
|
|
$
(4.8)
|
|
(47) %
|
|
$
(0.1)
|
|
$
(4.7)
|
|
(45) %
|
|
17 %
|
|
16 %
|
Segment profit as
percent of net sales
|
6.6 %
|
|
10.2 %
|
|
N/A
|
|
(3.6) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
70.3
|
|
$
69.6
|
|
$
0.7
|
|
1 %
|
|
$
(3.8)
|
|
$
4.5
|
|
7 %
|
|
23 %
|
|
18 %
|
Segment
profit
|
$
14.3
|
|
$
13.5
|
|
$
0.8
|
|
6 %
|
|
$
(0.1)
|
|
$
0.9
|
|
7 %
|
|
43 %
|
|
21 %
|
Segment profit as
percent of net sales
|
20.3 %
|
|
19.4 %
|
|
N/A
|
|
0.9 %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
sales
|
$
302.8
|
|
$ 376.9
|
|
$
(74.1)
|
|
(20) %
|
|
$
(23.9)
|
|
$
(50.2)
|
|
(14) %
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A - not
applicable
|
+ - change greater than
±100%
|
|
|
|
|
|
|
|
|
|
|
|
Change excluding
the
foreign exchange impact
|
|
Percent of total
|
(In
millions)
|
39 weeks
ended
|
|
Change
|
|
|
|
|
39 weeks
ended
|
Sep 24,
2022
|
|
Sep 25,
2021
|
|
Amount
|
|
Percent
|
Foreign
exchange
impact
|
|
Amount
|
|
Percent
|
Sep 24,
2022
|
|
Sep 25,
2021
|
Asia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 273.9
|
|
$ 343.8
|
|
$
(69.9)
|
|
(20) %
|
|
$
(14.8)
|
|
$
(55.1)
|
|
(17) %
|
|
28 %
|
|
28 %
|
Segment
profit
|
$
35.3
|
|
$
81.9
|
|
$
(46.6)
|
|
(57) %
|
|
$
(3.5)
|
|
$
(43.1)
|
|
(55) %
|
|
29 %
|
|
34 %
|
Segment profit as
percent of net sales
|
12.9 %
|
|
23.8 %
|
|
N/A
|
|
(10.9) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 222.6
|
|
$ 326.8
|
|
$
(104.2)
|
|
(32) %
|
|
$
(34.3)
|
|
$
(69.9)
|
|
(24) %
|
|
22 %
|
|
27 %
|
Segment
profit
|
$
14.3
|
|
$
66.5
|
|
$
(52.2)
|
|
(78) %
|
|
$
(6.9)
|
|
$
(45.3)
|
|
(76) %
|
|
12 %
|
|
28 %
|
Segment profit as
percent of net sales
|
6.4 %
|
|
20.3 %
|
|
N/A
|
|
(13.9) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 292.4
|
|
$ 343.0
|
|
$
(50.6)
|
|
(15) %
|
|
$
(1.4)
|
|
$
(49.1)
|
|
(14) %
|
|
29 %
|
|
28 %
|
Segment
profit
|
$
32.3
|
|
$
42.6
|
|
$
(10.3)
|
|
(24) %
|
|
$
(0.1)
|
|
$
(10.2)
|
|
(24) %
|
|
27 %
|
|
18 %
|
Segment profit as
percent of net sales
|
11.0 %
|
|
12.4 %
|
|
N/A
|
|
(1.4) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 202.4
|
|
$ 193.8
|
|
$
8.6
|
|
4 %
|
|
$
(2.8)
|
|
$
11.4
|
|
6 %
|
|
20 %
|
|
16 %
|
Segment
profit
|
$
38.9
|
|
$
46.8
|
|
$
(7.9)
|
|
(17) %
|
|
$
(0.1)
|
|
$
(7.8)
|
|
(17) %
|
|
32 %
|
|
20 %
|
Segment profit as
percent of net sales
|
19.2 %
|
|
24.1 %
|
|
N/A
|
|
(4.9) %
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
sales
|
$ 991.3
|
|
$
1,207.4
|
|
$
(216.1)
|
|
(18) %
|
|
$
(53.4)
|
|
$
(162.7)
|
|
(14) %
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A - not
applicable
|
+ - 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 2022
versus
Third
Quarter 2021
|
|
13 weeks
ended
|
|
|
September
24,
2022
|
|
September
25,
2021
|
|
|
Segments
|
Change
%
|
|
Change
excluding foreign
exchange impact %
|
|
Count
|
|
Count
|
|
Change
%
|
Asia Pacific
|
(24) %
|
|
(19) %
|
|
42,245
|
|
49,971
|
|
(15) %
|
Europe
|
(33) %
|
|
(24) %
|
|
66,773
|
|
83,971
|
|
(20) %
|
North
America
|
(16) %
|
|
(16) %
|
|
55,496
|
|
65,223
|
|
(15) %
|
South
America
|
1 %
|
|
7 %
|
|
141,091
|
|
146,175
|
|
(3) %
|
Total
|
(20) %
|
|
(14) %
|
|
305,605
|
|
345,340
|
|
(12) %
|
GAAP to Non-GAAP Financial Measures Reconciliation
|
13 weeks
ended
|
|
39 weeks
ended
|
(In millions, except
per share amounts)
|
September
24,
2022
|
|
September
25,
2021
|
|
September
24,
2022
|
|
September
25,
2021
|
(Loss) income from
continuing operations
|
$
(3.8)
|
|
$
60.4
|
|
$
3.2
|
|
$
136.2
|
|
|
|
|
|
|
|
|
Re-engineering
charges
|
4.5
|
|
1.8
|
|
13.0
|
|
9.7
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
8.1
|
Loss (gain) on disposal
of assets
|
0.7
|
|
(1.7)
|
|
2.3
|
|
(8.9)
|
Exit and other
costs
|
2.3
|
|
3.5
|
|
4.9
|
|
6.9
|
Consulting
|
1.2
|
|
0.1
|
|
3.0
|
|
1.2
|
Foreign currency
hyperinflation
|
2.9
|
|
—
|
|
9.3
|
|
0.6
|
Software
licensing
|
—
|
|
0.9
|
|
—
|
|
0.9
|
Adjustments before
income taxes
|
11.6
|
|
4.6
|
|
32.5
|
|
18.5
|
Provision for income
taxes
|
1.0
|
|
1.7
|
|
3.0
|
|
1.9
|
Net
adjustments
|
$
10.6
|
|
$
2.9
|
|
$
29.5
|
|
$
16.6
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
6.8
|
|
$
63.3
|
|
32.7
|
|
152.8
|
|
|
|
|
|
|
|
|
Basic weighted-average
shares
|
44.5
|
|
49.4
|
|
46.0
|
|
49.5
|
Diluted
weighted-average shares
|
47.2
|
|
52.8
|
|
49.0
|
|
53.1
|
|
|
|
|
|
|
|
|
Adjusted basic earnings
per share from continuing operations
|
$
0.15
|
|
$
1.28
|
|
$
0.71
|
|
$
3.09
|
Adjusted diluted
earnings per share from continuing operations
|
$
0.14
|
|
$
1.19
|
|
$
0.67
|
|
$
2.87
|
Net Income to Adjusted EBITDA (non-GAAP, per debt
covenant) Reconciliation and Consolidated Net Leverage Ratio
(1)
|
52 weeks
ended
|
|
13 weeks
ended
|
|
13 weeks
ended
|
(In
millions)
|
September
24,
2022
|
|
September
24,
2022
|
|
|
September
25,
2021
|
Income (loss) from
continuing operations
|
$
22.6
|
|
$
(3.8)
|
|
|
$
60.4
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
Interest
expense
|
24.4
|
|
8.3
|
|
|
8.2
|
Provision (benefit) for
income taxes
|
43.0
|
|
11.0
|
|
|
(12.4)
|
Depreciation and
amortization
|
39.4
|
|
9.2
|
|
|
9.6
|
Adjusted EBITDA -
from continuing operations
|
$
129.4
|
|
$
24.7
|
|
|
65.8
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash impairment
charges or asset write-offs
|
8.1
|
|
—
|
|
|
—
|
Other adjustments per
Credit Agreement
|
18.0
|
|
4.4
|
|
|
6.4
|
Other non-cash
extraordinary, unusual or non-recurring losses
|
33.7
|
|
4.5
|
|
|
6.8
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
Cash paid for
re-engineering charges
|
(13.3)
|
|
(4.1)
|
|
|
(4.7)
|
Extraordinary, unusual
or non-recurring (gains) losses
|
(21.1)
|
|
0.7
|
|
|
(1.7)
|
|
|
|
|
|
|
|
Adjusted EBITDA -
discontinued operations
|
$
25.0
|
|
$
22.3
|
|
|
$
(143.0)
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
Gain (loss) on disposal
of assets
|
35.0
|
|
22.6
|
|
|
$
(148.1)
|
Total Adjusted
EBITDA (non-GAAP, per debt covenant)
|
$
144.8
|
|
$
29.9
|
|
|
$
77.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
debt
|
$
704.0
|
|
|
|
|
|
Unrestricted cash and
cash equivalents
|
(100.0)
|
|
|
|
|
|
Consolidated total debt
less unrestricted cash and cash equivalents
|
$
604.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Leverage Ratio
|
4.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amounts and
calculations are based on the definitions and provisions of the
Company's Credit Agreement dated November 23, 2021 and, where
applicable, are based on the trailing four quarter amounts.
"Consolidated Net Leverage Ratio" is calculated as defined in the
Credit Agreement.
|
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SOURCE Tupperware Brands Corporation