Mead Johnson Nutrition Reports Nine Percent Constant Dollar Sales Growth for Full Year 2014 and Five Percent Growth on a Reported Basis; Provides 2015 Guidance
“We are pleased with our overall performance in 2014,” said Chief
Executive Officer Kasper Jakobsen. “The geographic diversity of our
business allowed us to succeed in a more challenging global economic
environment. We delivered strong volume growth in our
(1) Reported sales growth by segment for the fourth
quarter of 2014 was 12 percent for
(2) Non-GAAP results exclude Specified Items. For a description of Specified Items and a reconciliation of GAAP to non-GAAP results, see the schedules titled “Supplemental Financial Information” and “Reconciliation of non-GAAP to GAAP results.”
(3)Reported sales growth by segment for full year
2014 was one percent for
Fourth Quarter Company Results
Sales were $1,094.2 million in the fourth quarter of 2014, up three percent from $1,060.7 million in the same period a year ago. Constant dollar sales increased eight percent; five percent from price and three percent from volume. Foreign exchange adversely affected sales growth by five percent. Gross margin was lower than the prior year quarter due mainly to higher dairy costs and adverse foreign exchange. Earnings before interest and income taxes (“EBIT”) were also negatively impacted by unfavorable MTM adjustments due to updated actuarial assumptions. EBIT totaled $209.6 million in the fourth quarter of 2014, compared to $203.9 million for the comparative period in 2013.
The company’s effective tax rate (“ETR”) was 19.8 percent in the fourth quarter, compared to 18.8 percent in the prior year quarter. The ETR in 2013 was lower because of a decision to permanently invest certain prior years’ foreign earnings and profits abroad.
In the fourth quarter of 2014, GAAP and non-GAAP EPS increased four percent and 12 percent, respectively, when compared to the fourth quarter of 2013. On a GAAP basis, net earnings attributable to shareholders totaled $158.4 million, or $0.78 per diluted share, in the fourth quarter of 2014, compared to $152.5 million, or $0.75 per diluted share, in the prior year quarter. On a non-GAAP basis, net earnings attributable to shareholders totaled $186.2 million, or $0.92 per diluted share, for the fourth quarter of 2014, compared to $167.2 million, or $0.82 per diluted share, for the same quarter a year ago.
Fourth Quarter Segment Results
The
The
The
Corporate and Other expenses were $122.2 million for the fourth quarter of 2014, up from $91.6 million in the fourth quarter of 2013 of which $25.3 million was due to MTM losses.
Full-Year Company Results
Sales were $4,409.3 million in 2014, up five percent from $4,200.7
million a year ago. Constant dollar sales increased nine percent; five
percent from price and four percent from volume. Foreign exchange
adversely impacted sales growth by four percent. Price increases in
The effective tax rate for 2014 was 21.5 percent, compared to 25.4
percent a year ago. The ETR improvement was driven by a favorable
geographic earnings mix, the absence of the non-deductible prior year
administrative penalty in
For 2014, GAAP and non-GAAP EPS increased five percent and seven percent, respectively, compared to 2013. GAAP net earnings attributable to shareholders for 2014 totaled $719.8 million, or $3.54 per diluted share, up from $683.8 million, or $3.36 per diluted share, in 2013. On a non-GAAP basis, net earnings attributable to shareholders for 2014 totaled $759.4 million, or $3.74 per diluted share, up from $714.7 million, or $3.51 per diluted share, in 2013.
Full-Year Segment Results
The
The
The
Corporate and Other expenses for 2014 were $320.4 million, up from
$283.5 million in 2013. The increase in expense was mainly due to MTM
losses in 2014 compared to gains in 2013. Such losses were driven by
updated actuarial assumptions. These expenses were partially offset by
the absence of the 2013 administrative penalty in
Outlook for 2015
“We look forward to continued success in 2015 and expect constant dollar revenue growth around seven percent,” Mr. Jakobsen said. “As we enter 2015, we face significant headwinds from a strengthening dollar. Approximately three quarters of our revenue is in foreign currencies while much of our cost base is dollar denominated. As a result, our earnings are somewhat exposed to currency fluctuations. Lower commodity costs will, however, allow us to improve gross margins and invest incrementally behind our brands. We expect 2015 non-GAAP EPS in the range of $3.90 to $4.00.”
The company expects reported sales growth to be approximately three percent, which includes adverse foreign exchange of four percent. Specified Items are currently expected to be $0.05 per diluted share excluding any MTM adjustments. As a result, full year GAAP EPS is expected to be in the range of $3.85 to $3.95.
Conference Call Scheduled
Mead Johnson will host a conference call at
Security analysts and investors wishing to participate by telephone
should call (877) 359-9508, pass code: Mead Johnson. Callers outside of
Forward-Looking Statements
Certain statements in this news release are forward-looking as defined
in the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may be identified by the fact they use words
such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,”
“project,” “guidance,” “intend,” “plan,” “believe” and other words and
terms of similar meaning and expression. Such statements are likely to
relate to, among other things, a discussion of goals, plans and
projections regarding financial position, results of operations, cash
flows, market position, product development, product approvals, sales
efforts, expenses, capital expenditures, performance or results of
current and anticipated products and the outcome of contingencies such
as legal proceedings and financial results. Forward-looking statements
can also be identified by the fact that they do not relate strictly to
historical or current facts. Such forward-looking statements are based
on current expectations that involve inherent risks, uncertainties and
assumptions that may cause actual results to differ materially from
expectations as of the date of this news release. These risks include,
but are not limited to: (1) the ability to sustain brand strength,
particularly the Enfa family of brands; (2) the effect on the company’s
reputation of real or perceived quality issues; (3) the effect of
regulatory restrictions related to the company’s products; (4) the
adverse effect of commodity costs; (5) increased competition from
branded, private label, store and economy-branded products; (6) the
effect of an economic downturn on consumers’ purchasing behavior and
customers’ ability to pay for product; (7) inventory reductions by
customers; (8) the adverse effect of changes in foreign currency
exchange rates; (9) the effect of changes in economic, political and
social conditions in the markets where we operate; (10) changing
consumer preferences; (11) the possibility of changes in the WIC(4)
program, or participation in WIC; (12) legislative, regulatory or
judicial action that may adversely affect the company’s ability to
advertise its products, maintain product margins, or negatively impact
the company’s reputation or result in fines or penalties that decrease
earnings; and (13) the ability to develop and market new, innovative
products. For additional information regarding these and other factors,
see the company’s filings with the
(4)
About Mead Johnson
Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, go to www.meadjohnson.com.
MEAD JOHNSON NUTRITION COMPANY |
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CONSOLIDATED STATEMENTS OF EARNINGS |
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(Dollars and shares in millions, except per share data) |
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(UNAUDITED) |
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Three Months Ended | Years Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013(a) | 2014 | 2013(a) | ||||||||||||
NET SALES | $ | 1,094.2 | $ | 1,060.7 | $ | 4,409.3 | $ | 4,200.7 | |||||||
Cost of Products Sold | 430.2 | 399.2 | 1,700.6 | 1,528.5 | |||||||||||
GROSS PROFIT | 664.0 | 661.5 | 2,708.7 | 2,672.2 | |||||||||||
Operating Expenses: | |||||||||||||||
Selling, General and Administrative | 263.5 | 255.7 | 978.9 | 903.5 | |||||||||||
Advertising and Promotion | 149.5 | 169.2 | 638.7 | 645.1 | |||||||||||
Research and Development | 32.6 | 29.1 | 115.1 | 100.2 | |||||||||||
Other (Income)/Expenses—net | 8.8 | 3.6 | (12.3 | ) | 48.5 | ||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 209.6 | 203.9 | 988.3 | 974.9 | |||||||||||
Interest Expense – net | 14.3 | 11.7 | 60.3 | 50.6 | |||||||||||
EARNINGS BEFORE INCOME TAXES | 195.3 | 192.2 | 928.0 | 924.3 | |||||||||||
Provision for Income Taxes | 38.7 | 36.1 | 199.2 | 235.1 | |||||||||||
NET EARNINGS | 156.6 | 156.1 | 728.8 | 689.2 | |||||||||||
Less Net Earnings Attributable to Noncontrolling Interests | (1.8 | ) | 3.6 | 9.0 | 5.4 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 158.4 | $ | 152.5 | $ | 719.8 | $ | 683.8 | |||||||
Earnings per Share(b)– Basic | |||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.78 | $ | 0.75 | $ | 3.55 | $ | 3.37 | |||||||
Earnings per Share(b)– Diluted | |||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.78 | $ | 0.75 | $ | 3.54 | $ | 3.36 | |||||||
Weighted-average Shares – Diluted | 202.9 | 202.7 | 202.7 | 203.1 | |||||||||||
Dividends Declared per Share | $ | 0.38 | $ | 0.34 | $ | 1.50 | $ | 1.36 |
(a) See the company’s Form 8-K filed on
(b) The numerator for basic and diluted earnings per share is net earnings attributable to shareholders reduced by dividends and undistributed earnings attributable to unvested shares. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. The denominator for diluted earnings per share is the weighted-average shares outstanding adjusted for the effect of dilutive stock options and performance share awards.
MEAD JOHNSON NUTRITION COMPANY |
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CONSOLIDATED BALANCE SHEETS |
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(Dollars and shares in millions, except per share data) |
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(UNAUDITED) |
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December 31, 2014 | December 31, 2013 (a) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and Cash Equivalents | $ | 1,297.7 | $ | 1,050.8 | ||||
Receivables – net of allowances of $9.6 and $6.5, respectively | 387.8 | 384.4 | ||||||
Inventories | 555.5 | 534.8 | ||||||
Deferred Income Taxes – net of valuation allowance | 86.8 | 75.3 | ||||||
Income Taxes Receivable | 7.7 | 15.9 | ||||||
Prepaid Expenses and Other Assets | 82.6 | 56.9 | ||||||
Total Current Assets | 2,418.1 | 2,118.1 | ||||||
Property, Plant, and Equipment – net | 912.7 | 867.5 | ||||||
Goodwill | 162.7 | 196.8 | ||||||
Other Intangible Assets – net | 75.4 | 97.5 | ||||||
Deferred Income Taxes – net of valuation allowance | 65.1 | 37.0 | ||||||
Other Assets | 142.5 | 157.2 | ||||||
TOTAL | $ | 3,776.5 | $ | 3,474.1 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term Borrowings | $ | 4.1 | $ | 2.0 | ||||
Accounts Payable | 512.3 | 566.8 | ||||||
Dividends Payable | 76.6 | 69.3 | ||||||
Current Portion of Long-Term Debt | — | 505.6 | ||||||
Accrued Expenses | 203.7 | 220.0 | ||||||
Accrued Rebates and Returns | 329.1 | 314.9 | ||||||
Deferred Income – current | 34.3 | 46.6 | ||||||
Income Taxes – payable and deferred | 46.4 | 56.1 | ||||||
Total Current Liabilities | 1,206.5 | 1,781.3 | ||||||
Long-Term Debt | 1,503.9 | 1,009.1 | ||||||
Deferred Income Taxes – noncurrent | 12.4 | 15.3 | ||||||
Pension and Other Post-employment Liabilities | 211.1 | 161.8 | ||||||
Other Liabilities | 192.8 | 156.4 | ||||||
Total Liabilities | 3,126.7 | 3,123.9 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
REDEEMABLE NONCONTROLLING INTEREST | 66.0 | 49.7 | ||||||
EQUITY | ||||||||
Shareholders’ Equity | ||||||||
Common Stock, $0.01 par value: 3,000 authorized, 207.2 and 206.8 issued, respectively | 2.1 | 2.1 | ||||||
Additional Paid-in/(Distributed) Capital | (641.3 | ) | (721.5 | ) | ||||
Retained Earnings | 1,775.0 | 1,432.3 | ||||||
Treasury Stock – at cost | (362.6 | ) | (351.9 | ) | ||||
Accumulated Other Comprehensive Loss | (198.9 | ) | (69.2 | ) | ||||
Total Shareholders’ Equity | 574.3 | 291.8 | ||||||
Noncontrolling Interests | 9.5 | 8.7 | ||||||
Total Equity | 583.8 | 300.5 | ||||||
TOTAL | $ | 3,776.5 | $ | 3,474.1 |
(a) See the company’s Form 8-K filed on
MEAD JOHNSON NUTRITION COMPANY |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Dollars in millions) |
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(UNAUDITED) |
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Years Ended December 31, | ||||||||
2014 | 2013(a) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Earnings | $ | 728.8 | $ | 689.2 | ||||
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 91.6 | 83.1 | ||||||
Other | 77.2 | 53.4 | ||||||
Changes in Assets and Liabilities |
(54.0 |
) | 0.3 | |||||
Payments for Settlement of Interest Rate Forward Swaps | (45.0 | ) | — | |||||
Pension and Other Post-employment Benefits Contributions | (5.2 | ) | (19.4 | ) | ||||
Net Cash Provided by Operating Activities |
793.4 |
806.6 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Payments for Capital Expenditures | (186.6 | ) | (240.4 | ) | ||||
Proceeds from Sale of Property, Plant and Equipment | 0.2 | 2.6 | ||||||
Proceeds from/(Investment in) Other Companies | 4.0 | (2.7 | ) | |||||
Net Cash Used in Investing Activities | (182.4 | ) | (240.5 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from Short-term Borrowings | 3.2 | 6.9 | ||||||
Repayments of Short-term Borrowings | (0.6 | ) | (165.4 | ) | ||||
Repayments of Notes Payable | (500.0 | ) | (27.6 | ) | ||||
Payments of Dividends | (296.6 | ) | (267.7 | ) | ||||
Stock-Based Compensation Related Proceeds and Excess Tax Benefits | 46.2 | 23.6 | ||||||
Purchases of Treasury Stock | (62.0 | ) | (106.0 | ) | ||||
Long-term Debt Borrowings, net of original issue discount and expenses paid |
492.0 |
— | ||||||
Distributions to Noncontrolling Interests | (7.7 | ) | (9.5 | ) | ||||
Net Cash Used in Financing Activities |
(325.5 |
) | (545.7 | ) | ||||
Effects of Changes in Exchange Rates on Cash and Cash Equivalents | (38.6 | ) | (11.7 | ) | ||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 246.9 | 8.7 | ||||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of Period | 1,050.8 | 1,042.1 | ||||||
End of Period | $ | 1,297.7 | $ | 1,050.8 |
(a) See the company’s Form 8-K filed on
SUPPLEMENTAL FINANCIAL
INFORMATION
(Dollars in millions)
(UNAUDITED)
This news release contains non-GAAP financial measures, which may include non-GAAP net sales, gross profit, certain components of operating expenses including selling, general and administrative, research and development and other (income)/expenses net, EBIT, earnings and earnings per share information. The items included in GAAP measures, but excluded for the purpose of determining the above listed non-GAAP financial measures, include significant income/expenses not indicative of underlying operating results, including the related tax effect. The above listed non-GAAP measures represent an indication of the company’s underlying operating results and are intended to enhance an investor’s overall understanding of the company’s financial performance. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Tables that reconcile non-GAAP to GAAP disclosure follow.
Three Months Ended December 31, | % Change | % Change Due to | |||||||||||||||||||||||||||
% of | % of | Constant | Foreign | ||||||||||||||||||||||||||
Net Sales | 2014 | Total | 2013 | Total | Reported | Dollar | Volume | Price/Mix | Exchange | ||||||||||||||||||||
Asia | $ | 548.6 | 50 | % | $ | 544.2 | 52 | % | 1 | % | 3 | % | (2 | )% | 5 | % | (2 | )% | |||||||||||
Latin America | 207.8 | 19 | % | 215.8 | 20 | % | (4 | )% | 14 | % | 3 | % | 11 | % | (18 | )% | |||||||||||||
North America/Europe | 337.8 | 31 | % | 300.7 | 28 | % | 12 | % | 14 | % | 11 | % | 3 | % | (2 | )% | |||||||||||||
Net Sales | $ | 1,094.2 | 100 | % | $ | 1,060.7 | 100 | % | 3 | % | 8 | % | 3 | % | 5 | % | (5 | )% | |||||||||||
Earnings Before Interest and Income Taxes (EBIT) | 2014 |
EBIT |
2013(a) |
EBIT |
% Change | ||||||||||||||||||||||||
Asia | $ | 195.3 | 36 | % | $ | 183.0 | 34 | % | 7 | % | |||||||||||||||||||
Latin America | 46.4 | 22 | % | 50.1 | 23 | % | (7 | )% | |||||||||||||||||||||
North America/Europe | 90.1 | 27 | % | 62.4 | 21 | % | 44 | % | |||||||||||||||||||||
Corporate and Other | (122.2 | ) | (91.6 | ) | (33 | )% | |||||||||||||||||||||||
EBIT | $ | 209.6 | 19 | % | $ | 203.9 | 19 | % | 3 | % | |||||||||||||||||||
Years Ended December 31, | % Change | % Change Due to | |||||||||||||||||||||||||||
% of | % of | Constant | Foreign | ||||||||||||||||||||||||||
Net Sales | 2014 | Total | 2013 | Total | Reported | Dollar | Volume | Price/Mix | Exchange | ||||||||||||||||||||
Asia | $ | 2,278.4 |
52 |
% |
$ | 2,179.3 | 52 | % | 5 | % | 7 | % | 2 | % | 5 | % | (2 | )% | |||||||||||
Latin America | 867.5 |
20 |
% |
861.4 | 20 | % | 1 | % | 16 | % | 6 | % | 10 | % | (15 | )% | |||||||||||||
North America/Europe | 1,263.4 |
28 |
% |
1,160.0 | 28 | % | 9 | % | 10 | % | 7 | % | 3 | % | (1 | )% | |||||||||||||
Net Sales | $ | 4,409.3 |
100 |
% |
$ | 4,200.7 | 100 | % | 5 | % | 9 | % | 4 | % | 5 | % | (4 | )% | |||||||||||
Earnings Before Interest and Income Taxes (EBIT) | 2014 |
EBIT |
2013(a) |
EBIT |
% Change | ||||||||||||||||||||||||
Asia | $ | 818.7 | 36 | % | $ | 796.2 | 37 | % | 3 | % | |||||||||||||||||||
Latin America | 199.0 | 23 | % | $ | 207.2 | 24 | % | (4 | )% | ||||||||||||||||||||
North America/Europe | 291.0 | 23 | % | $ | 255.0 | 22 | % | 14 | % | ||||||||||||||||||||
Corporate and Other | (320.4 | ) | $ | (283.5 | ) | (13 | )% | ||||||||||||||||||||||
EBIT | $ | 988.3 | 22 | % | $ | 974.9 | 23 | % | 1 | % |
(a) See the company’s Form 8-K filed on
MEAD JOHNSON NUTRITION COMPANY |
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RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
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(Dollars in millions, except per share data) |
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(UNAUDITED) |
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Three Months Ended December 31, 2014 | Three Months Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||
Specified Items (a) | Specified Items (a) | |||||||||||||||||||||||||||||||||||||||||||
GAAP | Mark-to-Market Pension | Legal, Settlement and Related Costs | Severance and Other Costs | Non-GAAP | GAAP (b) | Mark-to-Market Pension | Admin Penalty (China) | Legal, Settlement and Related Costs | Severance and Other Costs | Non-GAAP (b) | ||||||||||||||||||||||||||||||||||
NET SALES | $ | 1,094.2 | $ | 1,094.2 | $ | 1,060.7 | $ | 1,060.7 | ||||||||||||||||||||||||||||||||||||
Cost of Products Sold | 430.2 | (13.4 | ) | — | — | 416.8 | 399.2 | (8.0 | ) | — | — | — | 391.2 | |||||||||||||||||||||||||||||||
GROSS PROFIT | 664.0 | 13.4 | — | — | 677.4 | 661.5 | 8.0 | — | — | — | 669.5 | |||||||||||||||||||||||||||||||||
GROSS MARGIN % | 60.7 | % | 1.2 | % | — | % | — | % | 61.9 | % | 62.4 | % | 0.7 | % | — | % | — | % | — | % | 63.1 | % | ||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative | 263.5 | (23.1 | ) | (0.7 | ) | — | 239.7 | 255.7 | (5.9 | ) | — | (7.9 | ) | (0.5 | ) | 241.4 | ||||||||||||||||||||||||||||
Advertising and Promotion | 149.5 | — | — | — | 149.5 | 169.2 | — | — | — | — | 169.2 | |||||||||||||||||||||||||||||||||
Research and Development | 32.6 | (4.0 | ) | — | — | 28.6 | 29.1 | (1.3 | ) | — | — | — | 27.8 | |||||||||||||||||||||||||||||||
Other (Income)/Expenses – net | 8.8 | — | — | (1.2 | ) | 7.6 | 3.6 | — | — | — | — | 3.6 | ||||||||||||||||||||||||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 209.6 | 40.5 | 0.7 | 1.2 | 252.0 | 203.9 | 15.2 | — | 7.9 | 0.5 | 227.5 | |||||||||||||||||||||||||||||||||
EBIT as a % of Sales | 19.2 | % | 3.7 | % | 0.1 | % | 0.1 | % | 23.0 | % | 19.2 | % | 1.4 | % | — | % | 0.7 | % | — | % | 21.4 | % | ||||||||||||||||||||||
Interest Expense – net | 14.3 | — | — | — | 14.3 | 11.7 | — | — | — | — | 11.7 | |||||||||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 195.3 | 40.5 | 0.7 | 1.2 | 237.7 | 192.2 | 15.2 | — | 7.9 | 0.5 | 215.8 | |||||||||||||||||||||||||||||||||
Provision for Income Taxes | 38.7 | 14.3 | 0.3 | — | 53.3 | 36.1 | 5.3 | 0.6 | 2.9 | — | 44.9 | |||||||||||||||||||||||||||||||||
Effective Tax Rate | 19.8 | % | 2.7 | % | — | % | (0.1 | )% | 22.4 | % | 18.8 | % | 1.1 | % | 0.3 | % | 0.7 | % | (0.1 | )% | 20.8 | % | ||||||||||||||||||||||
NET EARNINGS | 156.6 | 26.2 | 0.4 | 1.2 | 184.4 | 156.1 | 9.9 | (0.6 | ) | 5.0 | 0.5 | 170.9 | ||||||||||||||||||||||||||||||||
Less Net Earnings Attributable to Noncontrolling Interests | (1.8 | ) | — | — | — | (1.8 | ) | 3.6 | — | 0.1 | — | — | 3.7 | |||||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 158.4 | $ | 26.2 | $ | 0.4 | $ | 1.2 | $ | 186.2 | $ | 152.5 | $ | 9.9 | $ | (0.7 | ) | $ | 5.0 | $ | 0.5 | $ | 167.2 | |||||||||||||||||||||
Earnings per Share– Diluted | ||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.78 | $ | 0.13 | $ | — | $ | 0.01 | $ | 0.92 | $ | 0.75 | $ | 0.05 | $ | — | $ | 0.02 | $ | — | $ | 0.82 |
Certain figures do not sum due to rounding.
(a) All Specified Items are included in Corporate and Other.
(b) See the Company’s Form 8-K filed on
MEAD JOHNSON NUTRITION COMPANY |
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RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
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(Dollars in millions, except per share data) |
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(UNAUDITED) |
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Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Specified Items (a) | Specified Items (a) | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Mark-to-Market Pension | Pension Curtailment | Legal, Settlement and Related Costs | Severance and Other Costs | Non-GAAP | GAAP (b) | Mark-to-Market Pension | Admin Penalty (China) | Legal, Settlement and Related Costs | Severance and Other Costs | Non-GAAP (b) | |||||||||||||||||||||||||||||||||||||
NET SALES | $ | 4,409.3 | $ | 4,409.3 | $ | 4,200.7 | $ | 4,200.7 | ||||||||||||||||||||||||||||||||||||||||
Cost of Products Sold | 1,700.6 | (19.1 | ) | — | — | — | 1,681.5 | 1,528.5 | 1.3 | — | — | — | 1,529.8 | |||||||||||||||||||||||||||||||||||
GROSS PROFIT | 2,708.7 | 19.1 | — | — | — | 2,727.8 | 2,672.2 | (1.3 | ) | — | — | — | 2,670.9 | |||||||||||||||||||||||||||||||||||
GROSS MARGIN % | 61.4 | % | 0.4 | % | — | % | — | % | — | % | 61.9 | % | 63.6 | % | — | % | — | % | — | % | — | % | 63.6 | % | ||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative | 978.9 | (32.2 | ) | — | (13.5 | ) | (0.3 | ) | 932.9 | 903.5 | 9.2 | (0.2 | ) | (9.0 | ) | (2.6 | ) | 900.9 | ||||||||||||||||||||||||||||||
Advertising and Promotion | 638.7 | — | — | — | — | 638.7 | 645.1 | — | — | — | — | 645.1 | ||||||||||||||||||||||||||||||||||||
Research and Development | 115.1 | (5.6 | ) | — | — | — | 109.5 | 100.2 | 1.5 | — | — | — | 101.7 | |||||||||||||||||||||||||||||||||||
Other (Income)/Expenses – net | (12.3 | ) | — | 5.4 | 3.2 | (1.2 | ) | (4.9 | ) | 48.5 | — | (33.2 | ) | (0.2 | ) | — | 15.1 | |||||||||||||||||||||||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 988.3 | 56.9 | (5.4 | ) | 10.3 | 1.5 | 1,051.6 | 974.9 | (12.0 | ) | 33.4 | 9.2 | 2.6 | 1,008.1 | ||||||||||||||||||||||||||||||||||
EBIT as a % of Sales | 22.4 | % | 1.3 | % | (0.1 | )% | 0.2 | % | — | % | 23.8 | % | 23.2 | % | (0.3 | )% | 0.8 | % | 0.2 | % | 0.1 | % | 24.0 | % | ||||||||||||||||||||||||
Interest Expense – net | 60.3 | — | — | — | — | 60.3 | 50.6 | — | — | — | — | 50.6 | ||||||||||||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 928.0 | 56.9 | (5.4 | ) | 10.3 | 1.5 | 991.3 | 924.3 | (12.0 | ) | 33.4 | 9.2 | 2.6 | 957.5 | ||||||||||||||||||||||||||||||||||
Provision for Income Taxes | 199.2 | 20.0 | — | 3.5 | 0.2 | 222.9 | 235.1 | (4.7 | ) | (0.3 | ) | 3.2 | 0.3 | 233.6 | ||||||||||||||||||||||||||||||||||
Effective Tax Rate | 21.5 | % | 0.8 | % | 0.1 | % | 0.1 | % | — | % | 22.5 | % | 25.4 | % | (0.2 | )% | (0.9 | )% | 0.1 | % | — | % | 24.4 | % | ||||||||||||||||||||||||
NET EARNINGS | 728.8 | 36.9 | (5.4 | ) | 6.8 | 1.3 | 768.4 | 689.2 | (7.3 | ) | 33.7 | 6.0 | 2.3 | 723.9 | ||||||||||||||||||||||||||||||||||
Less Net Earnings Attributable to Noncontrolling Interests | 9.0 | — | — | — | — | 9.0 | 5.4 | — | 3.8 | — | — | 9.2 | ||||||||||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 719.8 | $ | 36.9 | $ | (5.4 | ) | $ | 6.8 | $ | 1.3 | $ | 759.4 | $ | 683.8 | $ | (7.3 | ) | $ | 29.9 | $ | 6.0 | $ | 2.3 | $ | 714.7 | ||||||||||||||||||||||
Earnings per Share– Diluted | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 3.54 | $ | 0.18 | $ | (0.03 | ) | $ | 0.04 | $ | 0.01 | $ | 3.74 | $ | 3.36 | $ | (0.04 | ) | $ | 0.15 | $ | 0.03 | $ | 0.01 | $ | 3.51 |
Certain figures do not sum due to rounding.
(a) All Specified Items are included in Corporate and Other.
(b) See the company’s Form 8-K filed on
Source:
Mead Johnson Nutrition Company
Investors:
Kathy
MacDonald, (847) 832-2182
kathy.macdonald@mjn.com
or
Media:
Christopher
Perille, (847) 832-2178
chris.perille@mjn.com
1/29/2015