Coca-Cola Bottling Co. Consolidated Sees Income Growth in Q3

Charlotte, N.C., Nov. 5 - Coca-Cola Bottling Co. Consolidated today announced it earned $15.4 million, or basic net income per share of $1.68, in the third quarter of 2009 compared to a loss of $3.1 million, or basic net loss per share of $.34, in the third quarter of 2008.

The third quarter of 2009 results included $.5 million of mark-to-market after-tax gains ($.8 million on a pre-tax basis) due to the Company’s fuel and aluminum hedging programs and also included $5.4 million in tax benefits which reduced the Company’s effective tax rate to 6.3%. The third quarter of 2008 results included after-tax charges of $9.7 million ($18.8 million on a pre-tax basis) due to pension exit and strike settlement costs, restructuring expenses and fuel hedging losses.

The following table reconciles reported and comparable net income (loss) and basic net income (loss) per share for the third quarter of 2009 and 2008:

^(a) This non-GAAP financial information is provided to allow investors to more clearly evaluate operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results.

For the first nine months of 2009, the Company earned $36.1 million, or basic net income per share of $3.94, compared to net income of $7.7 million, or basic net income per share of $.84, for the first nine months of 2008. The results for the first nine months of 2009 included $4.4 million of mark-to-market after-tax gains ($7.3 million on a pre-tax basis) due to the hedging programs and also included $7.1 million in tax benefits which reduced the Company’s effective tax rate to 24.8%. The results for the first nine months of 2008 included $8.8 million of after-tax items impacting comparability ($17.0 million on a pre-tax basis) which were due to pension exit and strike settlement costs, restructuring expenses and fuel hedging gains.

The following table reconciles reported and comparable net income and basic net income per share for the first nine months of 2009 and 2008:

^(a) This non-GAAP financial information is provided to allow investors to more clearly evaluate operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results.

J. Frank Harrison, III, Chairman and CEO, said, “2009 has been a challenging year for our industry and our Company, as it has been for the entire US economy. Although we are very pleased with the significant improvement in our income from operations, the comparable year over year results included several unusual operating expense items last year that did not occur in 2009. On a comparable basis, our bottom line performance was strong relative to last year on lower volume, increased pricing and flat gross margin. Our team has worked hard this year to achieve positive results through the first nine months, and we are pleased given the difficult economic conditions in our territories. As we look to the remainder of 2009 and into 2010, we continue to be extremely focused and disciplined in our pursuit of profitable revenue growth and cost management.”

William B. Elmore, President and COO, added, “We have faced many challenges since the fourth quarter of 2007. These two years presented us a difficult operating environment which has caused us to intensify our focus on quality customer service, productivity gains and diligent cost management. Our 2008 restructuring positioned us well in a very weak economy and, through nine months of 2009, has helped us achieve a strong comparable operating performance (as shown in the tables above). We appreciate the efforts of our employees, and we will continue to find new and improved ways to deliver quality Coke products and services.”

—