COCA-COLA EUROPEAN PARTNERS US, LLC - FORM 8-K - EX-99.1 - EXHIBIT - October 24, 2013

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Exhibit 99.1



CONTACT: Thor Erickson - Investor Relations            
+1 (678) 260-3110

Fred Roselli - Media Relations
+1 (678) 260-3421

Lauren Sayeski - European Media Relations
+ 44 (0) 7528 251 022



COCA-COLA ENTERPRISES, INC. REPORTS
THIRD-QUARTER 2013 RESULTS

•
Third-quarter diluted earnings per share totaled $1.07 on a reported basis, or 82 cents on a comparable basis, including a currency benefit of approximately 2 cents.

•
Net sales totaled $2.2 billion, up 5 percent on a reported basis or up 2½ percent on a currency neutral basis, driven by volume growth of 2½ percent and a net pricing per case increase of ½ percent.

•
Operating income totaled $314 million on a reported basis, or $320 million on a comparable basis. Operating income grew 2½ percent on a reported basis, 4½ percent on a comparable basis, or 2 percent on a comparable and currency neutral basis.

•
CCE will repurchase at least $1 billion of its shares in 2013, with a year-end net debt to EBITDA ratio within its long-term range of 2½ to 3 times.

•
For 2013, CCE affirms comparable earnings per diluted share in the upper half of a range of $2.45 to $2.50, which includes a currency benefit of approximately 1½ percent at recent rates.


ATLANTA, October 24, 2013 - Coca-Cola Enterprises, Inc. (NYSE/Euronext Paris: CCE) today reported third-quarter diluted earnings per share of $1.07 on a reported basis, or 82 cents on a comparable basis. Currency translation had a positive impact of approximately 2 cents per share compared to the same quarter a year ago.

Page 2 of 12

Third-quarter reported net income was $289 million, or $221 million on a comparable basis. Items affecting comparability are detailed on pages 10 through 13 of this release.    
Net sales totaled $2.2 billion, up 5 percent on a reported basis, or up 2½ percent on a currency neutral basis. Third-quarter reported operating income totaled $314 million, an increase of 2½ percent. On a comparable basis, operating income totaled $320 million, an increase of 4½ percent, or 2 percent on a comparable and currency neutral basis.
“Our return to volume growth in the quarter was driven by our operating strategies, customer and consumer support of our brands, and beneficial weather,” said John F. Brock, chairman and chief executive officer. “While we are pleased to return to volume growth, we continue to face persistent macroeconomic headwinds, a challenging consumer and customer environment, and dynamic competitive conditions that are impacting our near-term outlook.
“Long term, we are focused on growth opportunities and realizing the value of our diversified brand portfolio, executing at the highest levels every day, and effectively managing each lever of our business,” Mr. Brock said. “We remain fully committed to our ultimate objective - creating growth in shareowner value.”
Operating Review
In the third quarter, volume increased 2½ percent, reflecting improved weather and ongoing marketing initiatives, including the ‘Share a Coke’ campaign. Sparkling drinks grew approximately 4 percent, including growth of 5 percent for Coca-Cola trademark brands. This includes growth of 4 percent for Coca-Cola and 23 percent for Coca-Cola Zero. CCE’s portfolio of energy brands grew 15 percent, driven by growth of Monster and Relentless brands. Still beverages declined 5 percent, including a 6 percent decline in water, lapping growth of 21 percent in the same quarter a year ago. Total volume in Great Britain grew 3 percent, and volume in continental Europe (including Norway and Sweden) increased 2½ percent.

Page 3 of 12

Net pricing per case in the third quarter was up ½ percent and cost of sales per case increased 1½ percent. Operating expenses were down approximately 1½ percent. These figures are comparable and currency neutral.
“Although we returned to volume growth in the third quarter, we continue to manage through the current challenges of the marketplace and the impact of sustained macroeconomic headwinds,” said Hubert Patricot, executive vice president and president, European Group. “We will meet these challenges by working closely with our customers to create value growth, and by managing our resources effectively.”    
Full-Year 2013 Outlook
CCE continues to expect 2013 comparable earnings per diluted share in the upper half of the previously stated range of $2.45 to $2.50, including a positive currency translation impact of 1½ percent at recent rates. Including this currency impact, comparable full-year net sales and operating income are now expected to grow in a low single-digit range versus prior year.
CCE continues to repurchase shares under a $1.5 billion share repurchase program that began in January 2013. The company will repurchase at least $1 billion of its shares by the end of 2013. The company also expects its year-end net debt to EBITDA ratio to be within its long-term range of 2½ to 3 times, reflecting the impact of its plan to return cash to shareowners and incremental optimization of its capital structure. These plans may be adjusted depending on economic, operating, or other factors, including acquisition opportunities.
The company expects 2013 free cash flow of approximately $500 million after including a year-over-year increase in cash restructuring expenses in a range of $100 million to $125 million. Capital expenditures are expected to be in a range of $300 million to $325 million. Weighted average cost of debt is expected to be approximately 3 percent and the comparable effective tax rate for 2013 is now expected to be in a range of 26 percent to 27 percent.


Page 4 of 12

Conference Call
CCE will host a conference call with investors and analysts today at 10 a.m. EDT. The call can be accessed through the company’s website at www.cokecce.com.
About CCE
    Coca-Cola Enterprises, Inc. (CCE) is the leading Western European marketer, producer, and distributor of non-alcoholic ready-to-drink beverages and one of the world’s largest independent Coca-Cola bottlers. CCE is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. We operate with a local focus and have 17 manufacturing sites across Europe, where we manufacture nearly 90 percent of our products in the markets in which they are consumed. Corporate responsibility and sustainability is core to our business, and we have been recognized by leading organizations in North America and Europe for our progress in water use reduction, carbon footprint reduction, and recycling initiatives. For more information about our company, please visit our website at www.cokecce.com and follow us on Twitter at @cokecce.
# # #
Forward-Looking Statements

Included in this news release are forward-looking management comments and other statements that reflect management’s current outlook for future periods. As always, these expectations are based on currently available competitive, financial, and economic data along with our current operating plans and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. The forward-looking statements in this news release should be read in conjunction with the risks and uncertainties discussed in our filings with the Securities and Exchange Commission (“SEC”), including our Form 10-K for the year ended December 31, 2012 and other SEC filings.



Page 5 of 12

COCA-COLA ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; in millions, except per share data)


 
Third Quarter
 
First Nine Months
 
2013
 
2012
 
2013
 
2012
Net sales
$
2,174

 
$
2,070

 
$
6,180

 
$
6,146

Cost of sales
1,387

 
1,295

 
4,006

 
3,908

Gross profit
787

 
775

 
2,174

 
2,238

Selling, delivery, and administrative expenses
473

 
469

 
1,477

 
1,460

Operating income
314

 
306

 
697

 
778

Interest expense, net
26

 
23

 
75

 
69

Other nonoperating income (expense)
1

 
1

 
(3
)
 
4

Income before income taxes
289

 
284

 
619

 
713

Income tax expense
—

 
21

 
87

 
136

Net income
$
289

 
$
263

 
$
532

 
$
577

Basic earnings per share
$
1.09

 
$
0.91

 
$
1.96

 
$
1.94

Diluted earnings per share
$
1.07

 
$
0.89

 
$
1.92

 
$
1.90

Dividends declared per share
$
0.20

 
$
0.16

 
$
0.60

 
$
0.48

Basic weighted average shares outstanding
264

 
291

 
271

 
297

Diluted weighted average shares outstanding
269

 
297

 
277

 
304




Page 6 of 12

COCA-COLA ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited; in millions)


 
 
Third Quarter
 
First Nine Months
 
 
2013
 
2012
 
2013
 
2012
Net income
 
$
289

 
$
263

 
$
532

 
$
577

Components of other comprehensive income:
 
 
 
 
 
 
 
 
Currency translations
 
 
 
 
 
 
 
 
    Pretax activity, net
 
204

 
127

 
14

 
119

    Tax effect
 
—

 
—

 
—

 
—

Currency translations, net of tax
 
204

 
127

 
14

 
119

Net investment hedges
 
 
 
 
 
 
 
 
    Pretax activity, net
 
(52
)
 
(31
)
 
(34
)
 
(18
)
    Tax effect
 
18

 
9

 
12

 
4

Net investment hedges, net of tax
 
(34
)
 
(22
)
 
(22
)
 
(14
)
Cash flow hedges
 
 
 
 
 
 
 
 
    Pretax activity, net
 
(10
)
 
(15
)
 
18

 
(18
)
    Tax effect
 
3

 
4

 
(5
)
 
4

Cash flow hedges, net of tax
 
(7
)
 
(11
)
 
13

 
(14
)
Pension plan adjustments
 
 
 
 
 
 
 
 
    Pretax activity, net
 
8

 
4

 
20

 
13

    Tax effect
 
(2
)
 
(1
)
 
(4
)
 
(3
)
Pension plan adjustments, net of tax
 
6

 
3

 
16

 
10

Other comprehensive income, net of tax
 
169

 
97

 
21

 
101

Comprehensive income
 
$
458

 
$
360

 
$
553

 
$
678




Page 7 of 12

COCA-COLA ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)


 
September 27,
2013
 
December 31,
2012
ASSETS
 
 
 
Current:
 
 
 
Cash and cash equivalents
$
488

 
$
721

Trade accounts receivable
1,689

 
1,432

Amounts receivable from The Coca-Cola Company
80

 
66

Inventories
442

 
386

Other current assets
230

 
157

Total current assets
2,929

 
2,762

Property, plant, and equipment, net
2,282

 
2,322

Franchise license intangible assets, net
3,927

 
3,923

Goodwill
125

 
132

Other noncurrent assets
429

 
371

Total assets
$
9,692

 
$
9,510

LIABILITIES
 
 
 
Current:
 
 
 
Accounts payable and accrued expenses
$
2,060

 
$
1,844

Amounts payable to The Coca-Cola Company
140

 
103

Current portion of debt
594

 
632

Total current liabilities
2,794

 
2,579

Debt, less current portion
3,321

 
2,834

Other noncurrent liabilities
249

 
276

Noncurrent deferred income tax liabilities
1,119

 
1,128

Total liabilities
7,483

 
6,817

SHAREOWNERS’ EQUITY
 
 
 
Common stock
3

 
3

Additional paid-in capital
3,881

 
3,825

Reinvested earnings
1,494

 
1,126

Accumulated other comprehensive loss
(409
)
 
(430
)
Common stock in treasury, at cost
(2,760
)
 
(1,831
)
Total shareowners’ equity
2,209

 
2,693

Total liabilities and shareowners’ equity
$
9,692

 
$
9,510





Page 8 of 12

COCA-COLA ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)


 
First Nine Months
 
2013
 
2012
Cash Flows from Operating Activities:
 
 
 
Net income
$
532

 
$
577

Adjustments to reconcile net income to net cash derived from operating activities:
 
 
 
Depreciation and amortization
231

 
252

Share-based compensation expense
24

 
27

Deferred income tax benefit
(66
)
 
(72
)
Pension expense less than contributions
(3
)
 
(52
)
Net changes in assets and liabilities
(121
)
 
(49
)
Net cash derived from operating activities
597

 
683

Cash Flows from Investing Activities:
 
 
 
Capital asset investments
(220
)
 
(254
)
Capital asset disposals
—

 
13

Net cash used in investing activities
(220
)
 
(241
)
Cash Flows from Financing Activities:
 
 
 
Net change in commercial paper
182

 
—

Issuances of debt
459

 
430

Payments on debt
(220
)
 
(13
)
Shares repurchased under share repurchase programs
(888
)
 
(600
)
Dividend payments on common stock
(161
)
 
(142
)
Other financing activities, net
8

 
(5
)
Net cash used in financing activities
(620
)
 
(330
)
Net effect of currency exchange rate changes on cash and cash equivalents
10

 
7

Net Change in Cash and Cash Equivalents
(233
)
 
119

Cash and Cash Equivalents at Beginning of Period
721

 
684

Cash and Cash Equivalents at End of Period
$
488

 
$
803





Page 9 of 12

COCA-COLA ENTERPRISES, INC.
RECONCILIATION OF GAAP TO NON-GAAP (a)
(Unaudited; in millions, except per share data which is calculated prior to rounding)

 
 
Third-Quarter 2013
 
 
Cost of Sales
Selling, Delivery, and Administrative Expenses
Operating Income
Income Tax Expense
Net Income
Diluted Earnings Per Share
Reported (GAAP) (b)
$
1,387

473

314

—

$
289

$
1.07

 
Items Impacting Comparability:
 
 
 
 
 
 
 
Mark-to-Market Effects (c)
1

—

(1
)
—

(1
)
—

 
Restructuring Charges (d)
—

(7
)
7

3

4

0.01

 
Net Tax Items (e)
—

—

—

71

(71
)
(0.26
)
Comparable (non-GAAP)
$
1,388

466

320

74

$
221

$
0.82

 
 
 
 Diluted Weighted Average Shares Outstanding
 
269

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third-Quarter 2012
 
 
Cost of Sales
Selling, Delivery, and Administrative Expenses
Operating Income
Income Tax Expense
Net Income
Diluted Earnings Per Share
Reported (GAAP) (b)
$
1,295

469

306

21

$
263

$
0.89

 
Items Impacting Comparability:
 
 
 
 
 
 
 
Mark-to-Market Effects (c)
8

4

(12
)
(4
)
(8
)
(0.03
)
 
Restructuring Charges (d)
—

(12
)
12

5

7

0.02

 
Net Tax Items (e)
—

—

—

50

(50
)
(0.17
)
Comparable (non-GAAP)
$
1,303

461

306

72

$
212

$
0.71

 
 
 
 Diluted Weighted Average Shares Outstanding
 
297



(a) These non-GAAP measures are provided to allow investors to more clearly evaluate our operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b) As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
 
 
(c) Amounts represent the net out of period mark-to-market impact of non-designated commodity hedges.
 
(d) Amounts represent non-recurring restructuring charges.
 
 
 
 
(e) Amounts represent the deferred tax benefit related to the enactment of corporate income tax rate reductions in the United Kingdom.




Page 10 of 12

COCA-COLA ENTERPRISES, INC.
RECONCILIATION OF GAAP TO NON-GAAP (a)
(Unaudited; in millions, except per share data which is calculated prior to rounding)

 
 
First Nine Months 2013
 
 
Cost of Sales
Selling, Delivery, and Administrative Expenses
Operating Income
Income Tax Expense
Net Income
Diluted Earnings Per Share
Reported (GAAP) (b)
$
4,006

1,477

697

87

$
532

$
1.92

 
Items Impacting Comparability:
 
 
 
 
 
 
 
Mark-to-Market Effects (c)
(8
)
—

8

2

6

0.02

 
Restructuring Charges (d)
(4
)
(105
)
109

31

78

0.29

 
Net Tax Items (e)
—

—

—

71

(71
)
(0.26
)
Comparable (non-GAAP)
$
3,994

1,372

814

191

$
545

$
1.97

 
 
 
 Diluted Weighted Average Shares Outstanding
 
277

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Nine Months 2012
 
 
Cost of Sales
Selling, Delivery, and Administrative Expenses
Operating Income
Income Tax Expense
Net Income
Diluted Earnings Per Share
Reported (GAAP) (b)
$
3,908

1,460

778

136

$
577

$
1.90

 
Items Impacting Comparability:






 
Mark-to-Market Effects (c)
3

—

(3
)
(1
)
(2
)
(0.01
)
 
Restructuring Charges (d)
—

(34
)
34

11

23

0.08

 
Net Tax Items (e)
—

—

—

50

(50
)
(0.17
)
Comparable (non-GAAP)
$
3,911

1,426

809

196

$
548

$
1.80

 
 
 
 Diluted Weighted Average Shares Outstanding
 
304




(a) These non-GAAP measures are provided to allow investors to more clearly evaluate our operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b) As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
 
 
(c) Amounts represent the net out of period mark-to-market impact of non-designated commodity hedges.
 
(d) Amounts represent non-recurring restructuring charges.
 
 
 
 
(e) Amounts represent the deferred tax benefit related to the enactment of corporate income tax rate reductions in the United Kingdom.




Page 11 of 12

COCA-COLA ENTERPRISES, INC.
RECONCILIATION OF GAAP TO NON-GAAP SEGMENT INCOME (a)
(Unaudited; in millions)

 
 
Third-Quarter 2013
 
 
Europe
Corporate
Operating Income
Reported (GAAP) (b)
$
350

$
(36
)
$
314

 
Items Impacting Comparability:
 
 
 
 
Mark-to-Market Effects (c)
—

(1
)
(1
)
 
Restructuring Charges (d)
7

—

7

Comparable (non-GAAP)
$
357

$
(37
)
$
320

 
 
 
 
 
 
 
Third-Quarter 2012
 
 
Europe
Corporate
Operating Income
Reported (GAAP) (b)
$
322

$
(16
)
$
306

 
Items Impacting Comparability:
 
 
 
 
Mark-to-Market Effects (c)
—

(12
)
(12
)
 
Restructuring Charges (d)
12

—

12

Comparable (non-GAAP)
$
334

$
(28
)
$
306

 
 
 
 
 
 
 
 
 
 
 
 
First Nine Months 2013
 
 
Europe
Corporate
Operating Income
Reported (GAAP) (b)
$
804

$
(107
)
$
697

 
Items Impacting Comparability:
 
 
 
 
Mark-to-Market Effects (c)
—

8

8

 
Restructuring Charges (d)
109

—

109

Comparable (non-GAAP)
$
913

$
(99
)
$
814

 
 
 
 
 
 
 
First Nine Months 2012
 
 
Europe
Corporate
Operating Income
Reported (GAAP) (b)
$
879

$
(101
)
$
778

 
Items Impacting Comparability:
 
 
 
 
Mark-to-Market Effects (c)
—

(3
)
(3
)
 
Restructuring Charges (d)
34

—

34

Comparable (non-GAAP)
$
913

$
(104
)
$
809



(a) These non-GAAP measures are provided to allow investors to more clearly evaluate our operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b) As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
 
(c) Amounts represent the net out of period mark-to-market impact of non-designated commodity hedges.
(d) Amounts represent non-recurring restructuring charges.
 
 


Page 12 of 12

COCA-COLA ENTERPRISES, INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited; in millions, except percentages)

 
 
 
Third-Quarter 2013 Change Versus Third-Quarter 2012
First Nine Months 2013 Change Versus First Nine Months 2012
Net Sales Per Case
 
 
Change in Net Sales per Case
3.0%
1.5%
 
Impact of Excluding Post Mix, Non-Trade, and Other
—%
—%
Bottle and Can Net Pricing Per Case
3.0%
1.5%
 
Impact of Currency Exchange Rate Changes
(2.5)%
(1.0)%
Currency-Neutral Bottle and Can
 
 
 
Net Pricing Per Case(a)
0.5%
0.5%
 
 
 
 
 
Cost of Sales Per Case
 
 
Change in Cost of Sales per Case
4.5%
3.5%
 
Impact of Excluding Post Mix, Non-Trade, and Other
(0.5)%
(0.5)%
Bottle and Can Cost of Sales Per Case
4.0%
3.0%
 
Impact of Currency Exchange Rate Changes
(2.5)%
(1.0)%
Currency-Neutral Bottle and Can
 
 
 
Cost of Sales Per Case(a)
1.5%
2.0%
 
 
 
 
 
Physical Case Bottle and Can Volume
 
 
Change in Volume
 
2.5%
(1.0)%
 
Impact of Selling Day Shift
—%
0.5%
Comparable Bottle and Can Volume(b)
2.5%
(0.5)%
 
 
 
 
 
 
 
 
 
 
 
 
 
First Nine Months
Reconciliation of Free Cash Flow (c)
2013
2012
Net Cash Derived From Operating Activities
$
597

$
683

Less: Capital Asset Investments
(220
)
(254
)
Add: Capital Asset Disposals
—

13

Free Cash Flow
 
$
377

$
442

 
 
 
 
 
 
 
 
September 27,
December 31,
Reconciliation of Net Debt (d)
2013
2012
Current Portion of Debt
$
594

$
632

Debt, Less Current Portion
3,321

2,834

Less: Cash and Cash Equivalents
(488
)
(721
)
Net Debt
 
$
3,427

$
2,745



(a) The non-GAAP financial measures "Currency-Neutral Bottle and Can Net Pricing Per Case" and "Currency-Neutral Bottle and Can Cost of Sales per Case" are used to more clearly evaluate bottle and can pricing and cost trends in the marketplace. These measures exclude items not directly related to bottle and can pricing or cost and currency exchange rate changes.
(b) The non-GAAP measure "Comparable Bottle and Can Volume" is used to analyze the performance of our business on a constant period basis. There were the same number of selling days in the third quarter of 2013 versus the third quarter of 2012. There was one less selling day in the first nine months of 2013 versus the first nine months of 2012.
(c) The non-GAAP measure "Free Cash Flow" is provided to focus management and investors on the cash available for debt reduction, dividend distributions, share repurchase, and acquisition opportunities.
(d) The non-GAAP measure "Net Debt" is used to more clearly evaluate our capital structure and leverage.


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