Charlotte, N.C., April 29, 2008 - Coca-Cola Bottling Co. Consolidated today announced a loss of $4.3 million, or basic net loss per share of $.47, in the first quarter of 2008 compared to net income of $4.7 million, or basic net income per share of $.51, in the first quarter of 2007.
The first quarter of 2007 results included the after-tax impact of restructuring costs of $1.3 million, or basic net income per share of $.14, related to the simplification of the Company's operating management structure and reduction in workforce.
"We face many of the same macro economic cost and consumer spending pressures that much of the American business community is facing currently. At Coca-Cola Consolidated, we continue to experience unprecedented levels of cost increases in our raw materials and energy costs, particularly fuel prices," J. Frank Harrison, III, Chairman and CEO, said. He added, "In addition, we are also experiencing an impact from the economic pressures affecting consumer spending patterns, which affected our volumes and pricing for the quarter. The combination of the consumer spending pressure on revenues and the commodity cost pressure on expenses caused a significant decline in our year over year gross margin performance."
William B. Elmore, President and COO, added, "We are intensifying our efforts to improve gross margin performance. The current commodity cost environment is extremely challenging and requires that we execute price increases sufficient to offset higher product costs while also growing revenue. We are also working to increase efficiencies in our supply chain, especially in the selling and delivery expense structure. Despite the difficult operating environment, we are excited about the product innovation in the still beverage category, primarily from the introduction of vitaminwater, smartwater, FUZE and NOS(R) energy products over the past two quarters."
J. Frank Harrison, III summarized, "The American economy is in difficult economic times right now. While we are disappointed with our results this quarter, we are working on many things that we believe position us for excellent long term success. We will remain diligent and faithful to our mission and continue to evolve our business strategy to capitalize on the long term opportunities."
Coca-Cola Bottling Co. Consolidated
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
In Thousands (Except Per Share Data)
First Quarter
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2008 2007
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Net sales $337,674 $337,556
Cost of sales 197,756 186,065
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Gross margin 139,918 151,491
Selling, delivery and administrative expenses 136,133 130,831
Amortization of intangibles 110 111
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Income from operations 3,675 20,549
Interest expense 10,434 12,218
Minority interest (339) 681
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Income (loss) before income taxes (6,420) 7,650
Income taxes (benefit) (2,085) 2,999
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Net income (loss) $ (4,335) $ 4,651
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Basic net income (loss) per share:
Common Stock $ (.47) $ .51
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Weighted average number of Common Stock shares
outstanding 6,644 6,643
Class B Common Stock $ (.47) $ .51
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Weighted average number of Class B Common Stock
shares outstanding 2,500 2,480
Diluted net income (loss) per share:
Common Stock $ (.47) $ .51
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Weighted average number of Common Stock shares
outstanding - assuming dilution 9,151 9,131
Class B Common Stock $ (.47) $ .51
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Weighted average number of Class B Common Stock
shares outstanding - assuming dilution 2,507 2,488