Mead Johnson Reports Strong Fourth Quarter and Full Year Constant Dollar Sales Growth of 7 Percent; Delivers Non-GAAP EPS Growth of 10 Percent; Provides 2013 Guidance
(1)See “Non-GAAP Financial Measures” and the reconciliation of GAAP and non-GAAP results included in this release.
“We are pleased with our strong sales and earnings performance in the
fourth quarter and the overall performance of the business in 2012,”
said Chief Executive Officer Stephen W. Golsby. “The Asia/
*WIC =
Fourth Quarter Results
Sales for the fourth quarter of 2012 totaled $981.1 million, up eight percent from $911.3 million a year ago. Sales benefited five percent from price, two percent from volume, and one percent from foreign exchange. Earnings before interest and income taxes (EBIT) for the fourth quarter totaled $189.7 million, up 30 percent from $146.1 million in the prior-year period. This was primarily driven by higher sales, the earlier recognition of pension settlement expense in 2012, and lower IT and other IPO-related separation expenses. These benefits were partially offset by higher demand-generation investments.
Net earnings attributable to shareholders totaled $134.2 million, or $0.66 per diluted share, compared to $85.6 million, or $0.42 per diluted share in the prior-year quarter. In addition to the increase in EBIT, the effective tax rate (ETR) decreased for the fourth quarter to 23.8 percent, compared to 32.5 percent a year ago, primarily due to favorable adjustments associated with prior years' tax filings and lower required tax accruals. Net earnings in the fourth quarter of 2012 also benefited by $0.01 per diluted share from favorable prior years' tax items.
On a non-GAAP basis, which excludes specified items, net earnings attributable to shareholders totaled $146.7 million, or $0.72 per diluted share, for the fourth quarter of 2012, compared to $106.5 million, or $0.52 per diluted share, for the same quarter a year ago.
Fourth Quarter Segment Results
The
The
Corporate and Other expenses declined primarily from the timing of pension settlement expense, which was initially triggered in the second quarter of 2012 compared to the fourth quarter of 2011.
Full-Year 2012 Results
For the year ended
Gross margin was down 110 basis points in 2012 versus the prior year
from higher dairy and other commodity costs, mainly in the
EBIT for 2012 totaled $870.0 million, up from $774.1 million a year earlier. The EBIT increase was primarily driven by sales growth. In addition, general and administrative expenses were lower, driven by the reduction in IT and IPO-related separation costs, the elimination of duplicate shared service costs in 2011, and lower performance-based compensation expense. These factors were partially offset by lower gross margins, higher demand-generation investments and increased pension settlement expense.
The effective tax rate for 2012 was 23.9 percent versus 28.1 percent a year ago. The lower effective tax rate was primarily attributable to favorable adjustments associated with prior years' tax filings, changes in management's assertion that certain current and prior years' foreign earnings and profits are permanently invested abroad, and changes in the geographic earnings mix. The benefit from prior years' tax items was $0.07 per diluted share.
Net earnings attributable to shareholders for 2012 totaled $604.5 million, or $2.95 per diluted share, compared with $508.5 million, or $2.47 per diluted share, for the prior-year period.
On a non-GAAP basis, which excludes specified items, net earnings attributable to shareholders totaled $630.1 million, or $3.08 per diluted share, in 2012, compared to $573.1 million, or $2.79 per diluted share, in 2011.
Full-Year 2012 Segment Results
Sales in the
The
Corporate and Other expenses decreased from lower IT and IPO-related separation costs, lower performance-based compensation expense and the elimination of duplicate costs from the overlap in shared services providers incurred in 2011 during the SAP implementation project. These factors were partially offset by higher pension settlement expense.
Outlook for 2013
“We expect to continue to deliver strong sales growth through 2013,” Mr. Golsby said. “We are initiating non-GAAP EPS guidance in the range of $3.22 to $3.30, up from the $3.08 per share we delivered in 2012. Annual constant dollar sales growth from ongoing operations are expected to be in the range of 7 percent to 8 percent and will be reduced by 1 percent as we exit several low margin non-core businesses. Therefore, key assumptions underlying non-GAAP guidance include an expected sales increase of 6 percent to 7 percent excluding the effect of foreign exchange. Improved gross margins will help fund continued increases in demand-generation investments. The 2013 non-GAAP effective tax rate is expected to be about 25 percent, slightly higher than the 24.3 percent reported in 2012, which included prior years' tax benefits.”
Conference Call Scheduled
Mead Johnson will host a conference call at
Forward-Looking Statements
Certain statements in this news release are forward looking as defined
in the Private Securities Litigation Reform Act of 1995. These
statements, which are identified by words such as “expects,” “intends”
and “believes,” involve certain 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 adverse effect of commodity
costs; (4) increased competition from branded, private label, store and
economy-branded products; (5) the effect of an economic downturn on
consumers' purchasing behavior and customers' ability to pay for
product; (6) inventory reductions by customers; (7) the adverse effect
of changes in foreign currency exchange rates; (8) the effect of changes
in economic, political and social conditions in the markets where we
operate; (9) legislative, regulatory or judicial action that may
adversely affect the company's ability to advertise its products or
maintain product margins; (10) the possibility of changes in the Women,
Infant and Children (WIC) program, or participation in WIC; and (11) the
ability to develop and market new, innovative products. For additional
information on these and other factors, see the risk factors identified
in the company's periodic reports, including the annual report on Form
10-K for 2011, quarterly reports on Form 10-Q and current reports on
Form 8-K, filed with, or furnished to, the
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 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 December 31, | Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
NET SALES | $ | 981.1 | $ | 911.3 | $ | 3,901.3 | $ | 3,677.0 | |||||||
Cost of Products Sold | 382.0 | 354.9 | 1,485.3 | 1,362.3 | |||||||||||
GROSS PROFIT | 599.1 | 556.4 | 2,416.0 | 2,314.7 | |||||||||||
Expenses: | |||||||||||||||
Selling, General and Administrative | 235.6 | 237.3 | 877.8 | 926.8 | |||||||||||
Advertising and Promotion | 139.5 | 128.7 | 552.8 | 501.7 | |||||||||||
Research and Development | 27.8 | 28.1 | 95.4 | 92.5 | |||||||||||
Other Expenses | 6.5 | 16.2 | 20.0 | 19.6 | |||||||||||
EARNINGS BEFORE INTEREST AND INCOME TAXES | 189.7 | 146.1 | 870.0 | 774.1 | |||||||||||
Interest Expense | 16.0 | 13.8 | 65.0 | 52.2 | |||||||||||
EARNINGS BEFORE INCOME TAXES | 173.7 | 132.3 | 805.0 | 721.9 | |||||||||||
Provision for Income Taxes | 41.4 | 43.0 | 192.6 | 202.9 | |||||||||||
NET EARNINGS | 132.3 | 89.3 | 612.4 | 519.0 | |||||||||||
Less Net Earnings Attributable to Noncontrolling Interests | (1.9 | ) | 3.7 | 7.9 | 10.5 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS | $ | 134.2 | $ | 85.6 | $ | 604.5 | $ | 508.5 | |||||||
Earnings per Share—Basic | |||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.66 | $ | 0.42 | $ | 2.96 | $ | 2.48 | |||||||
Earnings per Share—Diluted | |||||||||||||||
Net Earnings Attributable to Shareholders | $ | 0.66 | $ | 0.42 | $ | 2.95 | $ | 2.47 | |||||||
Weighted-average Shares | 202.9 | 203.8 | 203.6 | 204.3 | |||||||||||
Dividends Declared per Share | $ | 0.30 | $ | 0.26 | $ | 1.20 | $ | 1.04 |
MEAD JOHNSON NUTRITION COMPANY |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(Dollars in millions) |
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(UNAUDITED) |
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December 31, | ||||||||
2012 | 2011 | |||||||
NET EARNINGS | $ | 612.4 | $ | 519.0 | ||||
OTHER COMPREHENSIVE INCOME/(LOSS) | ||||||||
Foreign Currency Translation Adjustments | ||||||||
Translation Adjustments | (8.4 | ) | (27.2 | ) | ||||
Tax Benefit/(Expense) | (13.0 | ) | 4.7 | |||||
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges | ||||||||
Deferred Gains/(Losses) on Derivatives Qualifying as Hedges for the Period | (12.7 | ) | 5.8 | |||||
Reclassification Adjustment for (Gains)/Losses Included in Net Earnings | 0.8 | 2.9 | ||||||
Tax Benefit/(Expense) | 3.5 | (2.6 | ) | |||||
Pension and Other Post-Retirement Benefits | ||||||||
Deferred Gains on Pension and Other Post-Retirement Benefits | (58.5 | ) | (90.7 | ) | ||||
Reclassification Adjustment for (Gains)/Losses Included in Net Earnings | 23.8 | 14.6 | ||||||
Tax Expense | 10.6 | 24.1 | ||||||
OTHER COMPREHENSIVE INCOME/(LOSS) | (53.9 | ) | (68.4 | ) | ||||
COMPREHENSIVE INCOME | 558.5 | 450.6 | ||||||
Less Comprehensive Income Attributable to Noncontrolling Interests | 7.9 | 10.6 | ||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS | $ | 550.6 | $ | 440.0 |
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, | ||||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and Cash Equivalents | $ | 1,042.1 | $ | 840.3 | ||||
Receivables – net of allowances of $7.6 and $6.3, respectively | 364.6 | 352.6 | ||||||
Inventories (1) | 435.9 | 534.9 | ||||||
Deferred Income Taxes – net of valuation allowance | 86.4 | 118.5 | ||||||
Income Taxes Receivable | 26.0 | 3.3 | ||||||
Prepaid Expenses and Other Assets | 60.0 | 40.1 | ||||||
Total Current Assets | 2,015.0 | 1,889.7 | ||||||
Property, Plant, and Equipment – net | 689.9 | 576.1 | ||||||
Goodwill | 270.6 | 117.5 | ||||||
Other Intangible Assets – net | 129.9 | 91.6 | ||||||
Deferred Income Taxes – net of valuation allowance | 24.5 | 16.5 | ||||||
Other Assets | 128.3 | 75.4 | ||||||
TOTAL | $ | 3,258.2 | $ | 2,766.8 | ||||
LIABILITIES AND EQUITY/(DEFICIT) | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term Borrowings | $ | 161.0 | $ | — | ||||
Accounts Payable | 508.5 | 488.1 | ||||||
Dividends Payable | 61.3 | 53.3 | ||||||
Note Payable | 26.0 | — | ||||||
Accrued Expenses | 220.4 | 229.0 | ||||||
Accrued Rebates and Returns | 314.8 | 300.1 | ||||||
Deferred Income – current | 36.1 | 47.0 | ||||||
Income Taxes – payable and deferred | 41.8 | 82.6 | ||||||
Total Current Liabilities | 1,369.9 | 1,200.1 | ||||||
Long-Term Debt | 1,523.2 | 1,531.9 | ||||||
Deferred Income Taxes – noncurrent | 15.9 | 5.2 | ||||||
Pension, Post-Retirement and Post Employment Liabilities | 188.8 | 157.2 | ||||||
Other Liabilities | 95.1 | 40.4 | ||||||
Total Liabilities | 3,192.9 | 2,934.8 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
REDEEMABLE NONCONTROLLING INTEREST | 36.3 | — | ||||||
EQUITY/(DEFICIT) | ||||||||
Shareholders’ Equity | ||||||||
Common Stock, $0.01 par value: 3,000 authorized, 206.0 and 205.1 issued, respectively | 2.1 | 2.1 | ||||||
Additional Paid-in/(Distributed) Capital | (676.6 | ) | (728.4 | ) | ||||
Retained Earnings | 1,124.8 | 770.0 | ||||||
Treasury Stock – at cost | (244.6 | ) | (89.7 | ) | ||||
Accumulated Other Comprehensive Loss | (187.0 | ) | (133.1 | ) | ||||
Total Shareholders’ Equity/(Deficit) | 18.7 | (179.1 | ) | |||||
Noncontrolling Interests | 10.3 | 11.1 | ||||||
Total Equity/(Deficit) | 29.0 | (168.0 | ) | |||||
TOTAL | $ | 3,258.2 | $ | 2,766.8 |
(1) For the year ended
MEAD JOHNSON NUTRITION COMPANY |
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CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT) AND REDEEMABLE NONCONTROLLING INTEREST |
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(Dollars in millions) |
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(UNAUDITED) |
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Additional | Accumulated | Redeemable | |||||||||||||||||||||||||||||
Paid-in | Other | Non- | Total | Non- | |||||||||||||||||||||||||||
Common | (Distributed) | Retained | Treasury | Comprehensive | controlling | Equity/ | controlling | ||||||||||||||||||||||||
Stock | Capital | Earnings | Stock | Loss | Interests | (Deficit) | Interest | ||||||||||||||||||||||||
Balance as of December 31, 2010 | $ | 2.0 | $ | (775.6 | ) | $ | 474.0 | $ | (3.2 | ) | $ | (64.6 | ) | $ | 9.1 | $ | (358.3 | ) | $ | — | |||||||||||
Stock-based Compensation Awards (includes income tax benefits of $2.8) | 0.1 | 47.2 | (4.9 | ) | 42.4 | ||||||||||||||||||||||||||
Treasury Stock Acquired | (81.6 | ) | (81.6 | ) | |||||||||||||||||||||||||||
Distributions to Noncontrolling Interests | (8.6 | ) | (8.6 | ) | |||||||||||||||||||||||||||
Cash Dividends Declared | (212.5 | ) | (212.5 | ) | |||||||||||||||||||||||||||
Net Earnings | 508.5 | 10.5 | 519.0 | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | (68.5 | ) | 0.1 | (68.4 | ) | ||||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 2.1 | $ | (728.4 | ) | $ | 770.0 | $ | (89.7 | ) | $ | (133.1 | ) | $ | 11.1 | $ | (168.0 | ) | $ | — | |||||||||||
Stock-based Compensation Awards (includes income tax benefits of $11.8) | 51.8 | (15.2 | ) | 36.6 | |||||||||||||||||||||||||||
Treasury Stock Acquired | (139.7 | ) | (139.7 | ) | |||||||||||||||||||||||||||
Acquisition | — | 30.2 | |||||||||||||||||||||||||||||
Distributions to Noncontrolling Interests | (7.6 | ) | (7.6 | ) | |||||||||||||||||||||||||||
Cash Dividends Declared | (244.7 | ) | (244.7 | ) | |||||||||||||||||||||||||||
Net Earnings | 604.5 | 6.8 | 611.3 | 1.1 | |||||||||||||||||||||||||||
Redeemable Noncontrolling Interest Accretion | (5.0 | ) | (5.0 | ) | 5.0 | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | (53.9 | ) | — | (53.9 | ) | ||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 2.1 | $ | (676.6 | ) | $ | 1,124.8 | $ | (244.6 | ) | $ | (187.0 | ) | $ | 10.3 | $ | 29.0 | $ | 36.3 |
MEAD JOHNSON NUTRITION COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Dollars in millions) |
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(UNAUDITED) |
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December 31, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Earnings | $ | 612.4 | $ | 519.0 | ||||
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 76.9 | 75.3 | ||||||
Stock-Based Compensation Expense | 32.2 | 39.9 | ||||||
Deferred Income Tax | 17.1 | (33.3 | ) | |||||
Gain on Sale of Intangible Assets | (6.5 | ) | — | |||||
Exchange Loss from Devaluation | — | — | ||||||
Other | 1.8 | 2.3 | ||||||
Changes in Assets and Liabilities | ||||||||
Receivables | (8.5 | ) | (7.9 | ) | ||||
Inventories | 109.8 | (183.3 | ) | |||||
Accounts Payable | (30.9 | ) | 114.7 | |||||
Accrued Expenses, Rebates and Returns | (6.3 | ) | 50.0 | |||||
Income Taxes Payable | (62.2 | ) | 53.2 | |||||
Other Assets and Liabilities | (14.8 | ) | 12.6 | |||||
Pension and Other Post Retirement Benefits Contributions | (28.3 | ) | (9.7 | ) | ||||
Net Cash Provided by Operating Activities | 692.7 | 632.8 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Payments for Capital Expenditures | (124.4 | ) | (109.5 | ) | ||||
Proceeds from Sale of Property, Plant and Equipment | 1.5 | 1.6 | ||||||
Proceeds from Sale of Intangible Assets | 6.5 | — | ||||||
Investment in Other Companies | (6.3 | ) | (4.7 | ) | ||||
Payment for Acquisition | (106.1 | ) | — | |||||
Net Cash Used in Investing Activities | (228.8 | ) | (112.6 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from Short-term Borrowings | 391.2 | 72.0 | ||||||
Repayments of Short-term Borrowings | (230.2 | ) | (73.2 | ) | ||||
Payment for Capital Lease Termination | — | — | ||||||
Repayments of Notes Payable | (52.6 | ) | — | |||||
Payments of Dividends | (236.7 | ) | (205.7 | ) | ||||
Stock-based-compensation-related Proceeds and Excess Tax Benefits | 23.3 | 4.5 | ||||||
Purchases of Treasury Stock | (154.9 | ) | (87.7 | ) | ||||
Proceeds from Termination of Interest Rate Swaps | — | 23.5 | ||||||
Proceeds from Promissory Note | — | — | ||||||
Distributions to Noncontrolling Interests | (7.6 | ) | (8.6 | ) | ||||
Net Cash Used in Financing Activities | (267.5 | ) | (275.2 | ) | ||||
Effects of Changes in Exchange Rates on Cash and Cash Equivalents | 5.4 | (0.3 | ) | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 201.8 | 244.7 | ||||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of Period | 840.3 | 595.6 | ||||||
End of Period | $ | 1,042.1 | $ | 840.3 |
MEAD JOHNSON NUTRITION COMPANY |
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SUPPLEMENTAL FINANCIAL INFORMATION |
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(Dollars in millions) |
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(UNAUDITED) |
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The following chart has been restated for a segment reorganization implemented during the fourth quarter of 2012. See additional information on page 14 of this press release. |
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Three Months Ended December 31, | % Change Due to | |||||||||||||||||||
Foreign | ||||||||||||||||||||
Net Sales | 2012 | 2011 | % Change | Volume | Price | Exchange | ||||||||||||||
Asia/Latin America | $ | 663.5 | $ | 604.8 | 10 | % | 3 | % | 6 | % | 1 | % | ||||||||
North America/Europe | 317.6 | 306.5 | 4 | % | (1 | )% | 5 | % | — | |||||||||||
Net Sales | $ | 981.1 | $ | 911.3 | 8 | % | 2 | % | 5 | % | 1 | % | ||||||||
Earnings Before Interest and Income Taxes | 2012 | 2011 | % Change | |||||||||||||||||
Asia/Latin America | $ | 187.4 | $ | 179.7 | 4 | % | ||||||||||||||
North America/Europe | 88.9 | 64.1 | 39 | % | ||||||||||||||||
Corporate and Other | (86.6 | ) | (97.7 | ) | 11 | % | ||||||||||||||
EBIT | $ | 189.7 | $ | 146.1 | 30 | % | ||||||||||||||
Year Ended December 31, | % Change Due to | |||||||||||||||||||
Foreign | ||||||||||||||||||||
Net Sales | 2012 | 2011 | % Change | Volume | Price | Exchange | ||||||||||||||
Asia/Latin America | $ | 2,719.5 | $ | 2,447.2 | 11 | % | 5 | % | 7 | % | (1 | )% | ||||||||
North America/Europe | 1,181.8 | 1,229.8 | (4 | )% | (7 | )% | 4 | % | (1 | )% | ||||||||||
Net Sales | $ | 3,901.3 | $ | 3,677.0 | 6 | % | 1 | % | 6 | % | (1 | )% | ||||||||
Year Ended December 31, | ||||||||||||||||||||
Earnings Before Interest and Income Taxes | 2012 | 2011 | % Change | |||||||||||||||||
Asia/Latin America | $ | 901.3 | $ | 811.6 | 11 | % | ||||||||||||||
North America/Europe | 246.1 | 308.4 | (20 | )% | ||||||||||||||||
Corporate and Other | (277.4 | ) | (345.9 | ) | 20 | % | ||||||||||||||
EBIT | $ | 870.0 | $ | 774.1 | 12 | % | ||||||||||||||
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, including non-GAAP EBIT, earnings and earnings per share information. The items included in GAAP measures, but excluded for the purpose of determining non-GAAP EBIT, earnings and earnings per share, are IT separation and other costs (Specified Items). In addition, other items include the tax impact on Specified Items. Non-GAAP EBIT, earnings and earnings per share information adjusted for these items is an indication of the company's underlying operating results and 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 GAAP to non-GAAP disclosure follow:
MEAD JOHNSON NUTRITION COMPANY |
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RECONCILIATION OF GAAP TO NON-GAAP RESULTS |
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(Dollars in millions, except per share data) |
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(UNAUDITED) |
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FOR THE THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011 |
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Earnings Before Interest | Net Earnings Attributable | Earnings per Common | |||||||||||||||||||||||||||||||
and Income Taxes | to Shareholders | Share - Diluted | |||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||
GAAP Results | $ | 189.7 | $ | 146.1 | $ | 134.2 | $ | 85.6 | $ | 0.66 | $ | 0.42 | |||||||||||||||||||||
Specified Items: (1) | |||||||||||||||||||||||||||||||||
IT and other separation costs (2) | 7.9 | 13.5 | |||||||||||||||||||||||||||||||
Gain on sale of certain non-core intangible assets (3) | (1.0 | ) | — | ||||||||||||||||||||||||||||||
Severance and other costs (3) | 11.5 | 11.4 | |||||||||||||||||||||||||||||||
Legal, settlements and related costs (2,3) | (0.3 | ) | 3.2 | ||||||||||||||||||||||||||||||
Specified Items before income taxes | 18.1 | 28.1 | 18.1 | 28.1 | 0.09 | 0.14 | |||||||||||||||||||||||||||
Income tax impact on items above | (5.6 | ) | (7.2 | ) | (0.03 | ) | (0.04 | ) | |||||||||||||||||||||||||
Non-GAAP Results | $ | 207.8 | $ | 174.2 | $ | 146.7 | $ | 106.5 | $ | 0.72 | $ | 0.52 |
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011 |
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Earnings Before Interest | Net Earnings Attributable | Earnings per Common | |||||||||||||||||||||||||||||||
and Income Taxes | to Shareholders | Share - Diluted | |||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||
GAAP Results | $ | 870.0 | $ | 774.1 | $ | 604.5 | $ | 508.5 | $ | 2.95 | $ | 2.47 | |||||||||||||||||||||
Specified Items: (1) | |||||||||||||||||||||||||||||||||
IT and other separation costs (2) | 19.9 | 74.7 | |||||||||||||||||||||||||||||||
Gain on sale of certain non-core intangible assets (3) | (6.5 | ) | — | ||||||||||||||||||||||||||||||
Severance and other costs (3) | 21.1 | 11.6 | |||||||||||||||||||||||||||||||
Legal, settlements and related costs (2,3) | 2.8 | 7.6 | |||||||||||||||||||||||||||||||
Specified Items before income taxes | 37.3 | 93.9 | 37.3 | 93.9 | 0.18 | 0.46 | |||||||||||||||||||||||||||
Income tax impact on items above | (11.7 | ) | (29.3 | ) | (0.05 | ) | (0.14 | ) | |||||||||||||||||||||||||
Non-GAAP Results | $ | 907.3 | $ | 868.0 | $ | 630.1 | $ | 573.1 | $ | 3.08 | $ | 2.79 |
(1) All Specified Items are included in the Corporate and Other segment |
(2) Included in Selling, General and Administrative expenses |
(3) Included in Other Expenses/(Income)-net |
Segment Reorganization
During the fourth quarter of 2012, the company implemented a change in
its organizational structure involving the transfer of the Puerto Rican
operations from the
MEAD JOHNSON NUTRITION COMPANY |
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SUPPLEMENTAL FINANCIAL INFORMATION |
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(Dollars in millions) |
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(UNAUDITED) |
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2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 1Q | 2Q | 3Q | 4Q | Total Year | Total Year | |||||||||||||||||||||||||||||
Net Sales | |||||||||||||||||||||||||||||||||||||
Original Reportable Segment Structure: | |||||||||||||||||||||||||||||||||||||
Asia/Latin America | $ | 701.3 | $ | 695.2 | $ | 639.9 | $ | 576.9 | $ | 611.6 | $ | 636.1 | $ | 598.6 | $ | 2,423.2 | $ | 1,927.1 | |||||||||||||||||||
North America / Europe | 285.3 | 317.1 | 281.4 | 322.9 | 320.4 | 297.8 | 312.7 | 1,253.8 | 1,214.5 | ||||||||||||||||||||||||||||
Total | $ | 986.6 | $ | 1,012.3 | $ | 921.3 | $ | 899.8 | $ | 932.0 | $ | 933.9 | $ | 911.3 | $ | 3,677.0 | $ | 3,141.6 | |||||||||||||||||||
New Reportable Segment Structure: | |||||||||||||||||||||||||||||||||||||
Asia/Latin America | $ | 707.3 | $ | 702.0 | $ | 646.7 | $ | 582.5 | $ | 617.1 | $ | 642.8 | $ | 604.8 | $ | 2,447.2 | $ | 1,951.0 | |||||||||||||||||||
North America/Europe | 279.3 | 310.3 | 274.6 | 317.3 | 314.9 | 291.1 | 306.5 | 1,229.8 | 1,190.6 | ||||||||||||||||||||||||||||
Total | $ | 986.6 | $ | 1,012.3 | $ | 921.3 | $ | 899.8 | $ | 932.0 | $ | 933.9 | $ | 911.3 | $ | 3,677.0 | $ | 3,141.6 | |||||||||||||||||||
Earnings Before Interest and Taxes | |||||||||||||||||||||||||||||||||||||
Original Reportable Segment Structure: | |||||||||||||||||||||||||||||||||||||
Asia/Latin America | $ | 279.0 | $ | 237.5 | $ | 190.7 | $ | 216.8 | $ | 209.8 | $ | 198.4 | $ | 177.9 | $ | 802.9 | $ | 646.1 | |||||||||||||||||||
North America/Europe | 33.7 | 74.6 | 55.6 | 92.9 | 86.4 | 71.9 | 65.9 | 317.1 | 357.7 | ||||||||||||||||||||||||||||
Corporate and Other | (63.9 | ) | (63.8 | ) | (63.1 | ) | (87.1 | ) | (92.5 | ) | (68.6 | ) | (97.7 | ) | (345.9 | ) | (320.9 | ) | |||||||||||||||||||
Total | $ | 248.8 | $ | 248.3 | $ | 183.2 | $ | 222.6 | $ | 203.7 | $ | 201.7 | $ | 146.1 | $ | 774.1 | $ | 682.9 | |||||||||||||||||||
New Reportable Segment Structure: | |||||||||||||||||||||||||||||||||||||
Asia/Latin America | $ | 280.9 | $ | 239.9 | $ | 193.1 | $ | 219.0 | $ | 211.5 | $ | 201.4 | $ | 179.7 | $ | 811.6 | $ | 656.3 | |||||||||||||||||||
North America/Europe | 31.8 | 72.2 | 53.2 | 90.7 | 84.7 | 68.9 | 64.1 | 308.4 | 347.5 | ||||||||||||||||||||||||||||
Corporate and Other | (63.9 | ) | (63.8 | ) | (63.1 | ) | (87.1 | ) | (92.5 | ) | (68.6 | ) | (97.7 | ) | (345.9 | ) | (320.9 | ) | |||||||||||||||||||
Total | $ | 248.8 | $ | 248.3 | $ | 183.2 | $ | 222.6 | $ | 203.7 | $ | 201.7 | $ | 146.1 | $ | 774.1 | $ | 682.9 | |||||||||||||||||||
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
1/31/2013