-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IZU+ET13eoJrem3sJLbk9VdBvbQ4REG2HCU5bxwM/zgnuF3esWZiv5jTLQXHTNzF ROjrtrAyidh8aldCopceSg== 0001104659-08-064152.txt : 20081015 0001104659-08-064152.hdr.sgml : 20081015 20081015070624 ACCESSION NUMBER: 0001104659-08-064152 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20081015 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20081015 DATE AS OF CHANGE: 20081015 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COCA COLA CO CENTRAL INDEX KEY: 0000021344 STANDARD INDUSTRIAL CLASSIFICATION: BEVERAGES [2080] IRS NUMBER: 580628465 STATE OF INCORPORATION: DE FISCAL YEAR END: 0417 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02217 FILM NUMBER: 081123945 BUSINESS ADDRESS: STREET 1: ONE COCA COLA PLAZA CITY: ATLANTA STATE: GA ZIP: 30313 BUSINESS PHONE: 404-676-2121 MAIL ADDRESS: STREET 1: ONE COCA COLA PLAZA CITY: ATLANTA STATE: GA ZIP: 30313 8-K 1 a08-26119_18k.htm 8-K

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

October 15, 2008

 

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-02217

 

58-0628465

(State or other
jurisdiction
of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

 

 

 

 

One Coca-Cola Plaza

 

 

Atlanta, Georgia

 

30313

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (404) 676-2121

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o        Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o        Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o        Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o        Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

 

Item 2.02.

 

Results of Operations and Financial Condition.

 

 

 

Attached as Exhibit 99.1 is a copy of a press release of The Coca-Cola Company, dated October 15, 2008, reporting The Coca-Cola Company’s financial results for the third quarter and year-to-date 2008.  Such information, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

 

 

Item 9.01.

 

Financial Statements and Exhibits.

 

 

 

(d).

 

Exhibits

 

 

 

99.1

 

Press Release of The Coca-Cola Company, dated October 15, 2008, reporting The Coca-Cola Company’s financial results for the third quarter and year-to-date 2008.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

THE COCA-COLA COMPANY

 

 

(REGISTRANT)

 

 

 

 

 

 

Date: October 15, 2008

 

By:

/s/ Harry L. Anderson

 

 

 

Harry L. Anderson

 

 

 

Vice President and Controller

 

3



 

EXHIBIT INDEX

 

Exhibit No.

 

Exhibit

 

 

 

Exhibit 99.1

 

Press Release of The Coca-Cola Company, dated October 15, 2008, reporting The Coca-Cola Company’s financial results for the third quarter and year-to-date 2008.

 


EX-99.1 2 a08-26119_1ex99d1.htm PRESS RELEASE, DATED OCTOBER 15, 2008

Exhibit 99.1

 

 

Media Relations Department

P.O. Box 1734, Atlanta, GA 30301

Telephone (404) 676-2121

 

FOR IMMEDIATE RELEASE

 

CONTACT:

Investors:

Ann Taylor

 

 

 

(404) 676-5383

 

 

 

 

 

 

 

Media:

Dana Bolden

 

 

 

(404) 676-2683

 

THE COCA-COLA COMPANY REPORTS

 

THIRD QUARTER AND YEAR-TO-DATE 2008 RESULTS

 

·                  Third quarter EPS of $0.81, an increase of 14 percent; and $0.83 on a comparable basis, an increase of 17 percent.

 

·                  Third quarter net revenue growth of 9 percent; and 11 percent excluding impact from the disposal of certain bottlers.

 

·                  Worldwide unit case volume increased 5 percent in the quarter, led by 7 percent growth in International.

 

·                  Global volume and value share gains continue.

 

·                  Operating income increased 20 percent on a reported basis in the quarter; up 17 percent on a comparable basis.

 

ATLANTA, Oct. 15, 2008 — The Coca-Cola Company today reported third quarter earnings per share of $0.81, an increase of 14 percent versus the prior year quarter on a reported basis.  After considering items impacting comparability, earnings per share in the quarter were $0.83, an increase of 17 percent.  Earnings per share for the quarter included a net charge of $0.02 per share for restructuring charges and costs related to global productivity initiatives partially offset by a gain on the sale of a portion of the Company’s investment in the Pakistan bottler.  Earnings per share for the third quarter of 2007 were $0.71 and included a charge of $0.03 per share, primarily related to restructuring charges, which was offset by a $0.03 per share gain primarily related to the sale of a portion of the Company’s investment in Coca-Cola

 

- more -

 



 

Amatil Limited.

 

“We once again demonstrated our ability to perform consistently, delivering our eighth consecutive quarter of double-digit comparable earnings growth, despite an incredibly challenging economic environment,” said Muhtar Kent, president and chief executive officer, The Coca-Cola Company.  “We are managing our business for the future with continued investment behind our brands and an increased focus on effectiveness and efficiency.  These efforts support long-term growth while providing additional flexibility to enable sustainable results.  Importantly, our strategies are working as we diligently work alongside our bottling partners to continue to deliver global volume and value share gains.

 

“Our system’s ability to adapt to changing economic and consumer environments was key to our success during the quarter, and we believe that this adaptability will continue to be crucial to the business going forward.  Our International operations, in particular the emerging markets, continue to drive our growth, more than offsetting the challenges that we are addressing in North America.  We anticipate that the operating environment, especially in North America, will continue to be challenging as we finish 2008 and move into 2009.  However, we have been diligent in taking the evolving landscape into account as we are planning for 2009, and believe that the solid fundamentals of our business, our strong balance sheet and cash generating capability, the experience of our management team and the strength of our brands will drive the business through these difficult economic times.  With our continued focus on superior execution and driving productivity, I remain confident that the Coca-Cola system is well positioned for the future.”

 

(All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period.)

 

Financial Highlights

 

·                  Third quarter net operating revenues increased 9 percent.  Revenue growth reflected a 3 percent increase in concentrate sales, a 2 percent benefit from pricing and mix and a 6 percent positive currency impact, partially offset by a 2 percent

 

2



 

decrease from structural changes primarily resulting from the sale of certain bottlers.

 

·                  Operating income in the quarter increased 20 percent on a reported basis and 17 percent after considering items impacting comparability.  Items impacting comparability negatively affected third quarter pre-tax operating income by $47 million in 2008 and by $84 million in 2007.  Currency benefited operating income in the quarter by 9 percent.

 

·                  The Company is on track for delivering $400 to $500 million in annualized savings from productivity initiatives by year-end 2011 to provide additional flexibility to invest for growth.

 

Operational Highlights

 

(All references to unit case volume percentage changes in this section are computed based on average daily sales.  Group operational highlights are reported in line with the Company’s operating structure as described in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2008.)

 

Total Company

 

·                  Unit case volume increased 5 percent in the third quarter and 4 percent year-to-date, successfully cycling 6 percent growth in the prior year quarter and year-to-date periods.  Acquisitions contributed 1 point of unit case volume growth for the quarter.

 

·                  International operations delivered 7 percent unit case volume growth in the quarter, successfully cycling 8 percent growth in the prior year quarter.  Emerging markets continued to drive the results with China, Turkey, India, Southern Eurasia, Pakistan, Nigeria and Korea delivering double-digit unit case volume growth and Brazil, Eastern Europe, North and West Africa and the Middle East delivering high single-digit unit case volume growth.  Europe achieved solid unit case volume growth of 3 percent in the quarter and unit case volume in Japan increased 1 percent.  North America unit case volume declined 2 percent in the quarter.

 

·                  The Company continued to achieve solid growth in sparkling beverages, which increased unit case volume 3 percent in the quarter.  Key brands drove the results

 

3



 

with Trademarks Coca-Cola, Fanta and Sprite increasing unit case volume 2, 5 and 7 percent, respectively, in the quarter.

 

·                  Still beverage unit case volume increased 10 percent in the quarter, led by strong growth across the Company’s still brand portfolio, including juice and juice drink, tea, coffee, active lifestyle and water brands.

 

·                  Globally, the Company gained volume and value share in nonalcoholic ready-to-drink beverages as well as in core sparkling and still beverage categories.

 

Eurasia and Africa

 

 

 

Percent Change

 

 

From Prior Year

 

 

Third

 

Year-

 

 

Quarter

 

To-Date

Unit Case Volume

 

9%

 

7%

Net Revenues

 

17%

 

19%

Operating Income

 

34%

 

41%

 

·                  The Eurasia and Africa Group’s unit case volume increased 9 percent in the quarter, successfully cycling 13 percent growth in the prior year quarter.  Net revenues for the quarter increased 17 percent, benefiting from an 8 percent increase in concentrate sales and positive pricing and mix with negligible impact from currency.  Operating income growth in the quarter of 34 percent reflected the benefit of the net revenue increase, the continued investment in key business initiatives and the cycling of restructuring charges in the prior year.

 

·                  The group delivered solid unit case volume growth across most markets in the quarter, with double-digit growth in key markets including Turkey, India, Southern Eurasia and Nigeria and high single-digit growth in the Middle East and North and West Africa.  In the quarter, Russia’s unit case volume declined 3 percent, primarily reflecting the impact from continuing adverse weather conditions as well as a more challenging economic environment, and South Africa was up 1 percent.  Share gains continued for the group led by volume and value share gains in

 

4



 

Russia and Turkey in nonalcoholic ready-to-drink beverages.

 

Europe

 

 

 

Percent Change

 

 

From Prior Year

 

 

Third

 

Year-

 

 

Quarter

 

To-Date

Unit Case Volume

 

3%

 

2%

Net Revenues

 

10%

 

13%

Operating Income

 

14%

 

14%

 

·                  Unit case volume in the Europe Group increased 3 percent in the quarter.  Net revenues for the quarter increased 10 percent, reflecting even concentrate sales, positive pricing and mix and a high single-digit currency benefit.  Operating income increased 14 percent in the quarter primarily reflecting the higher net revenues while continuing to invest behind key marketing initiatives across the group.

 

·                  Unit case volume results were driven by mid single-digit growth in Northwest Europe and high single-digit growth in Eastern Europe.  Europe delivered balanced growth with unit case volume for sparkling beverages up 3 percent and for still beverages up 9 percent.  Key countries across the group including Germany, Great Britain and France gained volume and value share in nonalcoholic ready-to-drink beverages.

 

Latin America

 

 

 

Percent Change

 

 

From Prior Year

 

 

Third

 

Year-

 

 

Quarter

 

To-Date

Unit Case Volume

 

8%

 

8%

Net Revenues

 

24%

 

24%

Operating Income

 

30%

 

27%

 

5



 

·                  The Latin America Group continued to deliver strong unit case volume growth of 8 percent in the quarter, successfully cycling 9 percent growth in the prior year quarter.  Net revenues increased 24 percent in the quarter, reflecting a 5 percent increase in concentrate sales, positive pricing and mix and a low double-digit currency benefit.  Operating income increased 30 percent in the quarter, reflecting the net revenue increase while continuing to invest in key marketing initiatives.

 

·                  Solid unit case volume growth across the group and the benefit of acquisitions drove the results for the quarter.  Acquisitions contributed 3 points of the overall unit case volume growth.  Mexico, Brazil and Argentina achieved strong unit case volume growth of 7 percent, 7 percent and 5 percent, respectively, in the quarter and led to volume and value share gains for the group in both sparkling and still beverages.

 

North America

 

 

 

Percent Change

 

 

From Prior Year

 

 

Third

 

Year-

 

 

Quarter

 

To-Date

Unit Case Volume

 

(2%)

 

(1%)

Net Revenues

 

(2%)

 

6%

Operating Income

 

(12%)

 

(9%)

 

·                  Unit case volume in the North America Group declined 2 percent in the quarter, reflecting the continuing difficult U.S. economic environment.  Retail unit case volume declined 1 percent and Foodservice and Hospitality declined 3 percent.  Net revenues for the quarter decreased 2 percent, reflecting a 3 percent decrease in concentrate sales, partially offset by positive pricing and mix of finished goods.  Operating income decreased 12 percent in the quarter reflecting the decrease in net revenues, higher input costs in the finished goods businesses, unfavorable mix and continued investment behind strategic marketing programs.

 

6



 

·                  Sparkling beverage unit case volume declined 2 percent in the quarter.  Core sparkling beverages gained volume and value share reflecting the benefits of the strong, integrated Olympics program in the quarter.  The continued successful execution of the three-cola strategy resulted in Coca-Cola Classic, Diet Coke and Coca-Cola Zero combined gaining volume and value share in the U.S.  Coca-Cola Zero continued to deliver strong performance, increasing unit case volume 30 percent in the quarter, cycling strong double-digit growth in the prior year quarter.

 

·                  Still beverage unit case volume was even in the quarter and achieved volume and value share gains, due to the continued strong performance of glacéau and Fuze as well as strong growth in chilled warehouse juices and juice drinks behind the success of Trademark Simply and Minute Maid Enhanced Juices.

 

Pacific

 

 

 

Percent Change

 

 

From Prior Year

 

 

Third

 

Year-

 

 

Quarter

 

To-Date

Unit Case Volume

 

7%

 

7%

Net Revenues

 

6%

 

9%

Operating Income

 

15%

 

14%

 

·                  The Pacific Group increased unit case volume 7 percent in the quarter, successfully cycling 11 percent growth in the prior year quarter.  Net revenues increased 6 percent, reflecting a 9 percent increase in concentrate sales, positive pricing and a high single-digit currency benefit, partially offset by unfavorable country mix.  Operating income increased 15 percent reflecting the increase in net revenues while investing in key business initiatives, including the Olympics activation.

 

·                  In Japan, unit case volume increased 1 percent in the quarter, successfully cycling 4 percent growth in the prior year quarter, while achieving value share gains in nonalcoholic ready-to-drink beverages.  Trademark Coca-Cola delivered

 

7



 

unit case volume growth of 6 percent driven by the continued success of Coca-Cola Zero and the execution of the three-cola strategy.  Georgia Coffee unit case volume increased 4 percent in the quarter and 3 percent year-to-date, its fourth consecutive quarter of growth led by growth in core flavors.  Unit case volume declines in Sokenbicha and Aquarius reflected unfavorable weather in the quarter.

 

·                  In China, unit case volume increased 17 percent in the quarter, successfully cycling 20 percent growth in the prior year quarter.  The results were led by double-digit unit case volume growth in Trademark Coca-Cola, Trademark Sprite and Minute Maid along with the successful launch of Yuan Ye, an original green leaf tea.  The strong performance across the brands, supported by the successful execution of a fully integrated Olympics program, resulted in volume and value share gains in both sparkling and still beverages.  In the third quarter, the Company announced its intention to purchase China Huiyuan Juice Group Limited for a total value of approximately $2.4 billion and continues to work with the local regulatory authorities to secure the necessary approvals.

 

·                  In the Philippines, unit case volume declined 9 percent in the quarter, reflecting the continuing pressure from the impact of food and fuel inflation on consumer discretionary spending as well as poor weather conditions.  Despite the unit case volume decline, as a result of refocused marketing and successful in-market execution, volume and value share gains were achieved in nonalcoholic ready-to-drink beverages and in sparkling beverages.

 

Bottling Investments

 

 

 

Percent Change

 

 

 

From Prior Year

 

 

 

Third

 

Year-

 

 

 

Quarter

 

To-Date

 

Unit Case Volume

 

7%

 

19%

 

Net Revenues

 

12%

 

27%

 

Operating Income

 

14%

 

82%

 

 

8



 

·                  The Bottling Investments Group’s unit case volume increased 7 percent in the quarter, reflecting growth across most of the group, partially offset by the impact of structural changes.  Net revenues increased 12 percent in the quarter as a result of the unit case volume increase, a high single-digit currency benefit and structural changes.  Operating income increased 14 percent in the quarter reflecting the net revenue increase and the benefits of supply chain efficiencies and controlled operating expenses, partially offset by continued investments to enhance market execution capabilities and higher input costs.

 

Financial Review

 

Operating Results

 

Net operating revenues in the quarter increased 9 percent, reflecting a 3 percent increase in concentrate sales, a 2 percent benefit from pricing and mix and a 6 percent positive currency impact, partially offset by a 2 percent decrease from structural changes resulting primarily from the sale of certain bottlers.

 

Cost of goods sold increased 5 percent in the quarter, reflecting a 3 percent increase in concentrate sales, a 5 percent increase from currency and increases in commodity-based input and freight costs, partially offset by a 4 percent decrease from structural changes resulting primarily from the sale of certain bottlers.

 

Selling, general and administrative expenses in the quarter increased 8 percent reflecting a 6 percent increase from currency.  The Company continued to achieve expense leverage through investing in marketing to support brand growth while effectively managing general and administrative expenses through productivity initiatives.

 

The Company had other operating charges in the quarter of $47 million related to restructuring charges and costs related to global productivity initiatives.

 

Operating income in the quarter increased 20 percent, reflecting the growth in net revenues, the investments in marketing and effective management of general and administrative expenses.  After considering items impacting comparability, operating income increased 17 percent.  Currency increased operating income in the quarter by 9 percent.  Based on current expectations of market rates for the remainder of the

 

9



 

year and benefits of hedging coverage in place, the Company continues to expect at least a mid single-digit favorable currency impact on full year 2008 operating income.

 

In the quarter, the Company recorded a gain of $16 million on the sale of a portion of the Company’s investment in the Pakistan bottler to Coca-Cola Icecek A.S.

 

Effective Tax Rate

 

The reported effective tax rate for the quarter was 22.7 percent and the underlying effective tax rate on operations for the quarter was 22.0 percent.  The variance between the reported rate and the underlying rate was due to the tax impact of various separately disclosed items impacting comparability.

 

The Company anticipates that its underlying effective tax rate on operations for the full year 2008 will be 22.0 percent.  The Company’s estimated underlying effective tax rate does not reflect the impact of discrete events, which, if and when they occur, are separately recognized in the appropriate period.

 

New Operating Structure

 

As previously communicated, effective July 1, 2008, the Company made certain changes to its operating structure to align geographic responsibility.  The European Union Group was reconfigured to include the Adriatic and Balkans Region and was renamed the Europe Group; and the remaining Eurasia Group was combined with the Africa Group into the new Eurasia and Africa Group.  The changes in operating structure did not impact the other existing geographic operating segments, Bottling Investments or Corporate.  Reporting on the new structure began this quarter.  Reclassified operating segment information can be found in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2008.

 

Items Impacting Prior Year Results

 

In 2007, the third quarter results included a $0.03 per share charge primarily related to restructuring charges which was offset by a $0.03 per share gain primarily related to the sale of a portion of the Company’s investment in Coca-Cola Amatil

 

10



 

Limited.  In 2007, the second quarter results included a net charge of $0.05 per share primarily related to restructuring charges and a non-cash impairment charge at an equity investee.  In 2007, the first quarter results included a net charge of $0.02 per share primarily related to an asset write-off in the Philippines bottler, partially offset by gains on the sales of the equity interest in a Brazilian bottler and real estate in Spain.

 

Conference Call

 

The Company will host a conference call with investors and analysts to discuss the third quarter results today at 8:30 a.m. (EDT).  The Company invites investors to listen to the live audiocast of the conference call at the Company’s Web site,
www.thecoca-colacompany.com in the “Investors” section.  A replay in downloadable MP3 format will also be available within 24 hours after the audiocast on the Company’s Web site.  Further, the “Investors” section of the Company’s Web site includes a reconciliation of non-GAAP financial measures that may be used periodically by management when discussing the Company’s financial results with investors and analysts to our results as reported under GAAP.

 

11



 

THE COCA-COLA COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Income

 (UNAUDITED)

(In millions except per share data)

 

 

 

Three Months Ended

 

 

 

September 26,
2008

 

September 28,
2007 

 

% Change

 

Net Operating Revenues

 

$

8,393

 

$

7,690

 

9

 

Cost of goods sold

 

3,020

 

2,884

 

5

 

Gross Profit

 

5,373

 

4,806

 

12

 

Selling, general and administrative expenses

 

3,139

 

2,896

 

8

 

Other operating charges

 

47

 

81

 

 

Operating Income

 

2,187

 

1,829

 

20

 

Interest income

 

105

 

59

 

78

 

Interest expense

 

111

 

127

 

(13)

 

Equity income - net

 

272

 

287

 

(5)

 

Other income (loss) - net

 

(8

)

65

 

 

Income Before Income Taxes

 

2,445

 

2,113

 

16

 

Income taxes

 

555

 

459

 

21

 

Net Income

 

$

1,890

 

$

1,654

 

14

 

 

 

 

 

 

 

 

 

Diluted Net Income Per Share*

 

$

0.81

 

$

0.71

 

14

 

Average Shares Outstanding - Diluted*

 

2,329

 

2,331

 

 

 

 


*                 For the third quarter, “Basic Net Income Per Share” was $0.82 for 2008 and $0.72 for 2007 based on “Average Shares Outstanding - Basic” of 2,311 and 2,311 for 2008 and 2007, respectively.

 

12



 

THE COCA-COLA COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(UNAUDITED)

(In millions except per share data)

 

 

 

Nine Months Ended

 

 

 

September 26,
2008

 

September 28,
2007

 

% Change

 

Net Operating Revenues

 

$

24,818

 

$

21,526

 

15

 

Cost of goods sold

 

8,806

 

7,765

 

13

 

Gross Profit

 

16,012

 

13,761

 

16

 

Selling, general and administrative expenses

 

9,030

 

7,906

 

14

 

Other operating charges

 

242

 

129

 

 

Operating Income

 

6,740

 

5,726

 

18

 

Interest income

 

239

 

150

 

59

 

Interest expense

 

317

 

300

 

6

 

Equity income (loss) - net

 

(434

)

497

 

 

Other income - net

 

61

 

177

 

 

Income Before Income Taxes

 

6,289

 

6,250

 

1

 

Income taxes

 

1,477

 

1,483

 

0

 

Net Income

 

$

4,812

 

$

4,767

 

1

 

 

 

 

 

 

 

 

 

Diluted Net Income Per Share*

 

$

2.06

 

$

2.05

 

0

 

Average Shares Outstanding - Diluted*

 

2,341

 

2,326

 

 

 

 


*                 For the nine months, “Basic Net Income Per Share” was $2.08 for 2008 and $2.06 for 2007 based on “Average Shares Outstanding - Basic” of 2,316 and 2,312 for 2008 and 2007, respectively.

 

13



 

THE COCA-COLA COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(UNAUDITED)

(In millions except par value)

 

 

 

September 26, 2008

 

December 31, 2007

 

Assets

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

 

$

7,797

 

$

4,093

 

Marketable securities

 

287

 

215

 

Trade accounts receivable, less allowances of $61 and $56, respectively

 

3,674

 

3,317

 

Inventories

 

2,321

 

2,220

 

Prepaid expenses and other assets

 

2,741

 

2,260

 

Total Current Assets

 

16,820

 

12,105

 

 

 

 

 

 

 

Investments

 

 

 

 

 

Equity method investments

 

6,891

 

7,289

 

Cost method investments, principally bottling companies

 

530

 

488

 

Total Investments

 

7,421

 

7,777

 

 

 

 

 

 

 

Other Assets

 

2,625

 

2,675

 

Property, Plant and Equipment - net

 

8,527

 

8,493

 

Trademarks With Indefinite Lives

 

6,138

 

5,153

 

Goodwill

 

4,011

 

4,256

 

Other Intangible Assets

 

2,638

 

2,810

 

Total Assets

 

$

48,180

 

$

43,269

 

 

 

 

 

 

 

Liabilities and Shareowners’ Equity

 

Current Liabilities

 

 

 

 

 

Accounts payable and accrued expenses

 

$

7,659

 

$

6,915

 

Loans and notes payable

 

8,111

 

5,919

 

Current maturities of long-term debt

 

536

 

133

 

Accrued income taxes

 

281

 

258

 

Total Current Liabilities

 

16,587

 

13,225

 

 

 

 

 

 

 

Long-Term Debt

 

2,877

 

3,277

 

Other Liabilities

 

2,803

 

3,133

 

Deferred Income Taxes

 

2,168

 

1,890

 

 

 

 

 

 

 

Shareowners’ Equity

 

 

 

 

 

Common stock, $0.25 par value; Authorized - 5,600 shares; Issued - 3,519 shares and 3,519 shares, respectively

 

880

 

880

 

Capital surplus

 

7,927

 

7,378

 

Reinvested earnings

 

38,397

 

36,235

 

Accumulated other comprehensive income (loss)

 

759

 

626

 

Treasury stock, at cost - 1,207 shares and 1,201 shares, respectively

 

(24,218

)

(23,375

)

Total Shareowners’ Equity

 

23,745

 

21,744

 

Total Liabilities and Shareowners’ Equity

 

$

48,180

 

$

43,269

 

 

14



 

THE COCA-COLA COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(UNAUDITED)

(In millions)

 

 

 

Nine Months Ended

 

 

 

September 26, 2008

 

September 28, 2007

 

Operating Activities

 

 

 

 

 

Net income

 

$

4,812

 

$

4,767

 

Depreciation and amortization

 

943

 

794

 

Stock-based compensation expense

 

223

 

241

 

Deferred income taxes

 

(221

)

(67

)

Equity income or loss, net of dividends

 

638

 

(331

)

Foreign currency adjustments

 

(39

)

6

 

Gains on sales of assets, including bottling interests

 

(128

)

(213

)

Other operating charges

 

141

 

129

 

Other items

 

57

 

59

 

Net change in operating assets and liabilities

 

(758

)

72

 

Net cash provided by operating activities

 

5,668

 

5,457

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

Acquisitions and investments, principally trademarks and bottling companies

 

(655

)

(3,935

)

Purchases of other investments

 

(212

)

(29

)

Proceeds from disposals of other investments

 

454

 

266

 

Purchases of property, plant and equipment

 

(1,370

)

(1,091

)

Proceeds from disposals of property, plant and equipment

 

46

 

179

 

Other investing activities

 

(57

)

(2

)

Net cash used in investing activities

 

(1,794

)

(4,612

)

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

Issuances of debt

 

5,308

 

7,094

 

Payments of debt

 

(3,211

)

(3,599

)

Issuances of stock

 

570

 

1,013

 

Purchases of stock for treasury

 

(1,079

)

(1,699

)

Dividends

 

(1,764

)

(1,575

)

Net cash (used in) provided by financing activities

 

(176

)

1,234

 

 

 

 

 

 

 

Effect of Exchange Rate Changes on Cash and Cash Equivalents

 

6

 

97

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

 

 

 

 

Net increase during the period

 

3,704

 

2,176

 

Balance at beginning of period

 

4,093

 

2,440

 

Balance at end of period

 

$

7,797

 

$

4,616

 

 

15



 

THE COCA-COLA COMPANY AND SUBSIDIARIES

Operating Segments

(UNAUDITED)

(In millions)

 

Three Months Ended

 

 

 

Net Operating Revenues

 

Operating Income (Loss)

 

Income (Loss) Before Income Taxes

 

 

 

September 26, 
2008 
(1)

 

September 28,
2007 
(5)

 

% Fav. / 
(Unfav.)

 

September 26,
 2008
 (2)

 

September 28,
 2007
(6)

 

% Fav. / 
(Unfav.)

 

September 26,
2008 
(2), (3), (4)

 

September 28,
2007 
(6), (7), (8)

 

% Fav. /
(Unfav.)

 

Eurasia & Africa

 

$

592

 

$

504

 

17

 

$

180

 

$

134

 

34

 

$

166

 

$

144

 

15

 

Europe

 

1,529

 

1,384

 

10

 

796

 

698

 

14

 

811

 

708

 

15

 

Latin America

 

1,033

 

835

 

24

 

559

 

430

 

30

 

553

 

430

 

29

 

North America

 

2,152

 

2,186

 

(2

)

392

 

447

 

(12

)

396

 

452

 

(12

)

Pacific

 

1,276

 

1,206

 

6

 

491

 

428

 

15

 

486

 

424

 

15

 

Bottling Investments

 

2,309

 

2,058

 

12

 

66

 

58

 

14

 

319

 

308

 

4

 

Corporate

 

34

 

17

 

100

 

(297

)

(366

)

19

 

(286

)

(353

)

19

 

Eliminations

 

(532

)

(500

)

 

 

 

 

 

 

 

Consolidated

 

$

8,393

 

$

7,690

 

9

 

$

2,187

 

$

1,829

 

20

 

$

2,445

 

$

2,113

 

16

 

 


Note: Refer to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2008 for more information on the changes to the Company’s operating structure.

 

(1)

 

Intersegment revenues for the three months ended September 26, 2008 were $52 million for Eurasia and Africa, $280 million for Europe, $44 million for Latin America, $17 million for North America, $84 million for Pacific and $55 million for Bottling Investments.

 

 

 

(2)

 

Operating income (loss) and income (loss) before income taxes for the three months ended September 26, 2008 were reduced by approximately $1 million for Latin America, $6 million for North America, $12 million for Bottling Investments and $28 million for Corporate, as a result of restructuring costs and productivity initiatives.

 

 

 

(3)

 

Income (loss) before income taxes for the three months ended September 26, 2008 benefited from a gain of approximately $16 million for Corporate on the sale of 49 percent of our interest in Coca-Cola Beverages Pakistan Ltd. to Coca-Cola Icecek A.S.

 

 

 

(4)

 

Income (loss) before income taxes for the three months ended September 26, 2008 was decreased by approximately a net $3 million for Bottling Investments, primarily due to our proportionate share of restructuring charges recorded by equity method investees.

 

 

 

(5)

 

Intersegment revenues for the three months ended September 28, 2007 were $45 million for Eurasia and Africa, $231 million for Europe, $44 million for Latin America, $26 million for North America, $112 million for Pacific and $42 million for Bottling Investments.

 

 

 

(6)

 

Operating income (loss) and income (loss) before income taxes for the three months ended September 28, 2007 were reduced by approximately $15 million for Eurasia and Africa, $7 million for Europe, $1 million for Latin America, $13 million for North America, $14 million for Bottling Investments and $34 million for Corporate, primarily due to restructuring costs and asset write-downs.

 

 

 

(7)

 

Income (loss) before income taxes for the three months ended September 28, 2007 benefited from a gain of approximately $73 million for Corporate on the sale of Coca-Cola Amatil Limited shares.

 

 

 

(8)

 

Income (loss) before income taxes for the three months ended September 28, 2007 benefited from a net gain of approximately $21 million for Bottling Investments, primarily due to our proportionate share of tax benefits recorded by an equity method investee, which was partially offset by asset write-downs and restructuring charges recorded by equity method investees.

 

16



 

THE COCA-COLA COMPANY AND SUBSIDIARIES

Operating Segments

(UNAUDITED)

(In millions)

 

Nine Months Ended

 

 

 

Net Operating Revenues

 

Operating Income (Loss)

 

Income (Loss) Before Income Taxes

 

 

 

September 26, 
2008 
(1)

 

September 28,
 2007 
(5)

 

% Fav. / 
(Unfav.)

 

September 26,
 2008
(2)

 

September 28,
2007 
(6)

 

% Fav. / 
(Unfav.)

 

September 26,
2008 
(2), (3), (4)

 

September 28,
2007 
(6), (7), (8)

 

% Fav. /
(Unfav.)

 

Eurasia & Africa

 

$

1,820

 

$

1,530

 

19

 

$

676

 

$

479

 

41

 

$

660

 

$

500

 

32

 

Europe

 

4,626

 

4,078

 

13

 

2,547

 

2,226

 

14

 

2,580

 

2,251

 

15

 

Latin America

 

2,894

 

2,333

 

24

 

1,596

 

1,258

 

27

 

1,591

 

1,257

 

27

 

North America

 

6,306

 

5,950

 

6

 

1,173

 

1,294

 

(9

)

1,183

 

1,298

 

(9

)

Pacific

 

3,604

 

3,315

 

9

 

1,483

 

1,306

 

14

 

1,466

 

1,288

 

14

 

Bottling Investments

 

7,099

 

5,591

 

27

 

239

 

131

 

82

 

(237

)

562

 

0

 

Corporate

 

91

 

49

 

86

 

(974

)

(968

)

(1

)

(954

)

(906

)

(5

)

Eliminations

 

(1,622

)

(1,320

)

 

 

 

 

 

 

 

Consolidated

 

$

24,818

 

$

21,526

 

15

 

$

6,740

 

$

5,726

 

18

 

$

6,289

 

$

6,250

 

1

 

 


Note: Refer to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 8, 2008 for more information on the changes to the Company’s operating structure.

 

(1)

 

Intersegment revenues for the nine months ended September 26, 2008 were $159 million for Eurasia and Africa, $810 million for Europe, $164 million for Latin America, $47 million for North America, $272 million for Pacific and $170 million for Bottling Investments.

 

 

 

(2)

 

Operating income (loss) and income (loss) before income taxes for the nine months ended September 26, 2008 were reduced by approximately $1 million for Latin America, $12 million for North America, $25 million for Bottling Investments and $204 million for Corporate, primarily due to restructuring costs, contract termination costs, asset write-downs and productivity initiatives.

 

 

 

(3)

 

Income (loss) before income taxes for the nine months ended September 26, 2008 was reduced by approximately $1.1 billion for Bottling Investments, primarily as a result of our proportionate share of an impairment charge recorded by CCE.

 

 

 

(4)

 

Income (loss) before income taxes for the nine months ended September 26, 2008 was increased by approximately $118 million for Bottling Investments and Corporate, primarily due to the gain on the sale of Refrigerantes Minas Gerais Ltda.

 

 

 

(5)

 

Intersegment revenues for the nine months ended September 28, 2007 were $134 million for Eurasia and Africa, $615 million for Europe, $104 million for Latin America, $63 million for North America, $297 million for Pacific and $107 million for Bottling Investments.

 

 

 

(6)

 

Operating income (loss) and income (loss) before income taxes for the nine months ended September 28, 2007 were reduced by approximately $35 million for Eurasia and Africa, $12 million for Europe, $3 million for Latin America, $13 million for North America, $1 million for Pacific, $43 million for Bottling Investments and $35 million for Corporate primarily due to restructuring costs and asset write-downs.

 

 

 

(7)

 

Income (loss) before income taxes for the nine months ended September 28, 2007 was reduced by approximately $141 million for Bottling Investments, primarily due to our proportionate share of asset write-downs and restructuring charges recorded by equity method investees.

 

 

 

(8)

 

Income (loss) before income taxes for the nine months ended September 28, 2007 benefited from gains of approximately $209 million for Corporate, primarily due to the sale of real estate in Spain, the sale of our equity ownership in Vonpar Refrescos S. A. and the sale of Coca-Cola Amatil Limited shares.

 

17



 

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

(In millions except per share data)

 

 

 

Three Months Ended September 26, 2008

 

 

 

% Change -

 

 

 

 

 

Items Impacting Comparability

 

After

 

 

 

After

 

 

 

Reported
(GAAP)

 

Asset
Impairments/
Restructuring

 

Productivity
Initiatives

 

Equity
Investees

 

Transaction
Gains

 

Certain Tax
Matters (1)

 

Considering
Items
(Non-GAAP)

 

% Change -
Reported
(GAAP)

 

Considering
Items
(Non-GAAP)

 

Net Operating Revenues

 

$

8,393

 

 

 

 

 

 

 

 

 

 

 

$

8,393

 

9

 

9

(2)

Cost of goods sold

 

3,020

 

 

 

 

 

 

 

 

 

 

 

3,020

 

5

 

5

 

Gross Profit

 

5,373

 

 

 

 

 

 

 

 

 

 

 

5,373

 

12

 

12

(3)

Selling, general and administrative expenses

 

3,139

 

 

 

 

 

 

 

 

 

 

 

3,139

 

8

 

8

 

Other operating charges

 

47

 

$

(35

)

$

(12

)

 

 

 

 

 

 

 

 

 

Operating Income

 

2,187

 

35

 

12

 

 

 

 

 

 

 

2,234

 

20

 

17

(3), (4)

Interest income

 

105

 

 

 

 

 

 

 

 

 

 

 

105

 

78

 

78

 

Interest expense

 

111

 

 

 

 

 

 

 

 

 

 

 

111

 

(13

)

(13

)

Equity income - net

 

272

 

 

 

 

 

$

3

 

 

 

 

 

275

 

(5

)

3

 

Other income (loss) - net

 

(8

)

 

 

 

 

 

 

$

(16

)

 

 

(24

)

 

 

Income Before Income Taxes

 

2,445

 

35

 

12

 

3

 

(16

)

 

 

2,479

 

16

 

18

 

Income taxes

 

555

 

7

 

6

 

(21

)

3

 

$

(5

)

545

 

21

 

24

 

Net Income

 

$

1,890

 

$

28

 

$

6

 

$

24

 

$

(19

)

$

5

 

$

1,934

 

14

 

16

 

Diluted Net Income Per Share

 

$

0.81

 

$

0.01

 

$

0.00

 

$

0.01

 

$

(0.01

)

$

0.00

 

$

0.83

(5)

14

 

17

 

Average Shares Outstanding - Diluted

 

2,329

 

2,329

 

2,329

 

2,329

 

2,329

 

2,329

 

2,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

64.0

%

 

 

 

 

 

 

 

 

 

 

64.0

%

 

 

 

 

Operating Margin

 

26.1

%

 

 

 

 

 

 

 

 

 

 

26.6

%

 

 

 

 

Effective Tax Rate

 

22.7

%

 

 

 

 

 

 

 

 

 

 

22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 28, 2007

 

 

 

 

 

 

Items Impacting Comparability

 

After

 

 

 

 

Reported (GAAP)

 

Asset Impairments/
Restructuring

 

Equity Investees

 

Gains on Sales of Assets

 

Certain Tax Matters (1)

 

Considering Items
(Non-GAAP)

 

 

Net Operating Revenues

 

$

7,690

 

 

 

 

 

 

 

 

 

$

7,690

 

 

Cost of goods sold

 

2,884

 

$

(3

)

 

 

 

 

 

 

2,881

 

 

Gross Profit

 

4,806

 

3

 

 

 

 

 

 

 

4,809

 

 

Selling, general and administrative expenses

 

2,896

 

 

 

 

 

 

 

 

 

2,896

 

 

Other operating charges

 

81

 

(81

)

 

 

 

 

 

 

 

 

Operating Income

 

1,829

 

84

 

 

 

 

 

 

 

1,913

 

 

Interest income

 

59

 

 

 

 

 

 

 

 

 

59

 

 

Interest expense

 

127

 

 

 

 

 

 

 

 

 

127

 

 

Equity income - net

 

287

 

 

 

$

(21

)

 

 

 

 

266

 

 

Other income (loss) - net

 

65

 

 

 

 

 

$

(73

)

 

 

(8

)

 

Income Before Income Taxes

 

2,113

 

84

 

(21

)

(73

)

 

 

2,103

 

 

Income taxes

 

459

 

16

 

(7

)

(31

)

$

4

 

441

 

 

Net Income

 

$

1,654

 

$

68

 

$

(14

)

$

(42

)

$

(4

)

$

1,662

 

 

Diluted Net Income Per Share

 

$

0.71

 

$

0.03

 

$

(0.01

)

$

(0.02

)

$

0.00

 

$

0.71

 

 

Average Shares Outstanding - Diluted

 

2,331

 

2,331

 

2,331

 

2,331

 

2,331

 

2,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

62.5

%

 

 

 

 

 

 

 

 

62.5

%

 

Operating Margin

 

23.8

%

 

 

 

 

 

 

 

 

24.9

%

 

Effective Tax Rate

 

21.7

%

 

 

 

 

 

 

 

 

21.0

%

 

 


Note: Items to consider for comparability include primarily charges, gains, and accounting changes.  Charges and accounting changes negatively impacting net income are reflected as increases to reported net income.  Gains and accounting changes positively impacting net income are reflected as deductions to reported net income.

 

(1)   Primarily related to changes in reserves related to certain tax matters.

(2)   Net operating revenues excluding structural changes:

 

 

 

2008

 

2007

 

% Change

 

Reported net operating revenues

 

$

8,393

 

$

7,690

 

9

%

Structural changes

 

(166

)

(257

)

 

Net operating revenues excluding structural changes

 

$

8,227

 

$

7,433

 

11

%

 

(3)   Operating expense leverage after considering items impacting comparability for the three months ended September 26, 2008 is 5%, which is calculated by subtracting gross profit growth after considering items impacting comparability of 12% from operating income growth after considering items impacting comparability of 17%.

(4)   Operating income after considering items impacting comparability for the three months ended September 26, 2008 includes a positive currency impact of approximately 9%.  Currency neutral operating income growth after considering items impacting comparability is 8%.

(5)   Per share amounts do not add due to rounding.

 

The Company reports its financial results in accordance with U. S. generally accepted accounting principles (GAAP).  However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability.  Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance.  See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended September 26, 2008 and September 28, 2007. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

 

18



 

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

(In millions except per share data)

 

 

 

Nine Months Ended September 26, 2008

 

 

 

% Change -

 

 

 

 

 

Items Impacting Comparability

 

After

 

 

 

After

 

 

 

Reported
(GAAP)

 

Asset
Impairments/
Restructuring

 

Productivity
Initiatives

 

Equity Investees

 

Transaction Gains

 

Certain Tax Matters (1)

 

Considering Items
(Non-GAAP)

 

% Change -
Reported
(GAAP)

 

Considering
Items
(Non-GAAP)

 

Net Operating Revenues

 

$

24,818

 

 

 

 

 

 

 

 

 

 

 

$

24,818

 

15

 

15

(2)

Cost of goods sold

 

8,806

 

 

 

 

 

 

 

 

 

 

 

8,806

 

13

 

14

 

Gross Profit

 

16,012

 

 

 

 

 

 

 

 

 

 

 

16,012

 

16

 

16

(3)

Selling, general and administrative expenses

 

9,030

 

 

 

 

 

 

 

 

 

 

 

9,030

 

14

 

14

 

Other operating charges

 

242

 

$

(218

)

$

(24

)

 

 

 

 

 

 

 

 

 

Operating Income

 

6,740

 

218

 

24

 

 

 

 

 

 

 

6,982

 

18

 

19

(3), (4)

Interest income

 

239

 

 

 

 

 

 

 

 

 

 

 

239

 

59

 

59

 

Interest expense

 

317

 

 

 

 

 

 

 

 

 

 

 

317

 

6

 

6

 

Equity income - net

 

(434

)

 

 

 

 

$

1,130

 

 

 

 

 

696

 

 

9

 

Other income (loss) - net

 

61

 

 

 

 

 

 

 

$

(118

)

 

 

(57

)

 

 

Income Before Income Taxes

 

6,289

 

218

 

24

 

1,130

 

(118

)

 

 

7,543

 

1

 

19

 

Income taxes

 

1,477

 

43

 

9

 

195

 

(29

)

$

(36

)

1,659

 

0

 

19

 

Net Income

 

$

4,812

 

$

175

 

$

15

 

$

935

 

$

(89

)

$

36

 

$

5,884

 

1

 

19

 

Diluted Net Income Per Share

 

$

2.06

 

$

0.07

 

$

0.01

 

$

0.40

 

$

(0.04

)

$

0.02

 

$

2.51

(5)

0

 

18

 

Average Shares Outstanding - Diluted

 

2,341

 

2,341

 

2,341

 

2,341

 

2,341

 

2,341

 

2,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

64.5

%

 

 

 

 

 

 

 

 

 

 

64.5

%

 

 

 

 

Operating Margin

 

27.2

%

 

 

 

 

 

 

 

 

 

 

28.1

%

 

 

 

 

Effective Tax Rate

 

23.5

%

 

 

 

 

 

 

 

 

 

 

22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 28, 2007

 

 

 

 

 

Items Impacting Comparability

 

After

 

 

 

Reported
(GAAP)

 

Asset
Impairments/
Restructuring

 

Equity
Investees

 

Gains on
Sales of
Assets

 

Certain Tax
Matters (1)

 

Considering
Items
(Non-GAAP)

 

Net Operating Revenues

 

$

21,526

 

 

 

 

 

 

 

 

 

$

21,526

 

Cost of goods sold

 

7,765

 

$

(13

)

 

 

 

 

 

 

7,752

 

Gross Profit

 

13,761

 

13

 

 

 

 

 

 

 

13,774

 

Selling, general and administrative expenses

 

7,906

 

 

 

 

 

 

 

 

 

7,906

 

Other operating charges

 

129

 

(129

)

 

 

 

 

 

 

 

Operating Income

 

5,726

 

142

 

 

 

 

 

 

 

5,868

 

Interest income

 

150

 

 

 

 

 

 

 

 

 

150

 

Interest expense

 

300

 

 

 

 

 

 

 

 

 

300

 

Equity income - net

 

497

 

 

 

$

141

 

 

 

 

 

638

 

Other income (loss) - net

 

177

 

 

 

 

 

$

(209

)

 

 

(32

)

Income Before Income Taxes

 

6,250

 

142

 

141

 

(209

)

 

 

6,324

 

Income taxes

 

1,483

 

30

 

19

 

(104

)

$

(37

)

1,391

 

Net Income

 

$

4,767

 

$

112

 

$

122

 

$

(105

)

$

37

 

$

4,933

 

Diluted Net Income Per Share

 

$

2.05

 

$

0.05

 

$

0.05

 

$

(0.05

)

$

0.02

 

$

2.12

 

Average Shares Outstanding - Diluted

 

2,326

 

2,326

 

2,326

 

2,326

 

2,326

 

2,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

63.9

%