16
Earnings Release July 20, 2016 Second Quarter 2016

Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

Earnings Release July 20, 2016

Second Quarter 2016

Page 2: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

2

Forward looking statements

We are making some forward looking statements today that use

words like “outlook” or “target” or similar predictive words. Such

forward looking statements involve risks and uncertainties detailed in

our recent periodic reports as filed in accordance with the Securities

and Exchange Act of 1934. These risks and uncertainties may cause

actual results to differ materially from our statements today.

Visit www.tupperwarebrands.com

Page 3: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

3

Second Quarter Highlights

• Sales down 4% in dollars

• Sales up 3% in local currency (high-end of range)

• Emerging markets, +7% (66% of sales)

• Established markets, -4% (34% of sales)

• Adjusted EPS of $1.16. Up 8% in local currency, 4 cents over

high end of guidance range, down 4% in dollars

• Returned $34M to shareholders through dividends

• Total Sales Force count up 5% year-over-year

• Active Sellers down 2% compared with last year

Page 4: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

4

Second Quarter Sales up 3% in Local Currency*

Brazil +41%

Indonesia +4%

Malaysia/ Singapore

+20%

India -7%

TW Mexico +16%

Germany -4%

France -10%

TW S. Africa +24%

TW U.S./Canada

+1%

BeautiControl -14%

Fuller Mexico -6%

Avroy Shlain +14%

Korea -11%

Argentina +27%

Turkey -38%

Emerging

Markets

+7% in Local Currency Sales

66% of Second Quarter Sales

Established

Markets

-4% in Local Currency Sales

34% of Second Quarter Sales

Middle East and N. Africa

-74%

China +25%

Philippines -13%

CIS +21%

*See information in dollars in appendix

Page 5: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

5

Financial Highlights

Page 6: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

6

$1.07 ( $0.01)

$0.05

$0.02 $0.02

$0.01 $1.16

$0.95

$1.00

$1.05

$1.10

$1.15

$1.20

$1.25

$1.30

2015 at 2016Rates

Shares Ops Interest Unallocated Tax 2016

8% Increase in Local Currency

*See GAAP to NON-GAAP reconciliation attached to Q2 2016 earnings release

Q2 Adjusted Earnings per Share Roll-Forward* (diluted)

Page 7: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

7

2016 Second Quarter

High End Guidance

2016 Second Quarter

Actual

2015 Pretax ROS 13.8% 13.8%

Translation FX (60) bp (70) bp

2015 Pretax ROS (constant currency) 13.2% 13.1%

LC Operating Margin Improvement 10 bp 40 bp

Net interest expense 10 20

2016 Pretax ROS 13.4% 13.7%

Return on Sales*

*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q2 2016 earnings release

Page 8: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

8

Uses of Cash 2016 Guidance

Cash Flow from Operating

Net of Investing Activities Guidance: $195 to $205 million Includes $28 million in potential Q3 land proceeds

Dividends

68 cents per share quarterly = $138 million

Improve Leverage Ratio To At Least Meet

1.75X Target

through EBITDA growth & debt repayment

Page 9: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

9

Third Quarter 2016 Guidance

2016 Full Year Guidance

USD Sales +1% – 3% (2)% – (1)%

GAAP EPS $0.94 – $0.99 $4.18 – $4.28

GAAP Pre-tax ROS 13.1% – 13.5% 12.9% – 13.1%

Local Currency Sales +2% – 4% +3% – 4%

EPS, excluding items* $0.77 – $0.82 $4.25 – $4.35

Pre-tax ROS, excluding items 10.0% – 10.5% 12.9% – 13.1%

FX Impact on EPS comparison, excluding items ($0.02) ($0.34)

Outlook*

*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q2 2016 earnings release

Page 10: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

10

$4.37 ($0.34)

($0.04) ($0.03)

$0.35 $0.04 $4.35

$3.50

$4.00

$4.50

2015 FX 2015 at 2016Rates

Tax Shares Ops Unallocated 2016

2 cent decrease in Reported $

8% increase in Local Currency

$4.03

*High end of range. See information on GAAP basis in appendix

Full Year 2016 EPS Outlook Excluding Items* (diluted)

Page 11: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

11

2016 Third Quarter

High End Guidance

2016 Full Year

High End Guidance

2015 Pretax ROS 10.2% 12.8%

Translation FX -- (40) bp

2015 Pretax ROS (constant currency) 10.2% 12.4%

LC Operating Margin Improvement 40 bp 60 bp

Net Interest Expense (10) 10

2016 Pretax ROS (high end guidance) 10.5% 13.1%

Return on Sales Guidance*

*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q2 2016 earnings release

Page 12: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

12

Appendix

Page 13: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

13

Non-GAAP Financial Reconciliation

*High end of guidance range provided in July 20, 2016 Earnings Release. Includes Orlando land transaction with $28 million proceeds.

Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm.

2015 Q1 2016 Q2 2016 Q3 2016* 2016*

Net Sales $2,283.8 $525.7 $564.7 $534.5 $2,265.7

Net Income (GAAP) $185.8 $43.4 $52.4 $50.4 $217.1

Adjustments:

Gains on disposal of assets including insurance recoveries (13.7) (0.1) (0.8) (22.4) (23.3)

Re-engineering and other restructuring costs (includes Pension Settlement costs) 21.8 1.1 2.7 4.5 11.6

Impact of Venezuelan bolivar devaluation from balance sheet positions 14.9 0.2 3.6 -- 3.8

Acquired intangible asset amortization 10.2 2.0 2.0 1.9 7.7

Income tax impact of adjustments 1.5 (0.7) (1.2) 7.0 3.9

Net Income (Adjusted) $220.5 $45.9 $58.7 $41.4 $220.8

Adjusted EPS $4.37 $0.91 $1.16 $0.82 $4.35

Pre-tax Adjusted ROS 12.8% 11.7% 13.7% 10.5% 13.1%

Average number of diluted shares (millions) 50.4 50.6 50.7 50.7 50.7

Page 14: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

14

Second Quarter Sales Down 4% in Dollars

Brazil +22%

Indonesia +3%

Malaysia/ Singapore

+9%

India -12%

TW Mexico -2%

Germany -1%

France -8%

TW S. Africa +1%

TW U.S./Canada

Even

BeautiControl -14%

Fuller Mexico -20%

Avroy Shlain

-8%

Korea -16%

Argentina -19%

Turkey -43%

Emerging

Markets

+7% in Local Currency Sales

66% of Second Quarter Sales

Established

Markets

-4% in Local Currency Sales

34% of Second Quarter Sales

Middle East and N. Africa

-77%

China +19%

Philippines -17%

CIS -11%

Page 15: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

15

Global Portfolio – Second Quarter

Europe 25%

Asia Pacific 34%

Tupperware N.A 17%

Beauty NA 9%

South America 15%

Segment Sales Share

34%

84%

42%

76%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Europe Asia Pacific TupperwareNA

Beauty NA SouthAmerica

Established Emerging

Emerging/Established %

Page 16: Second Quarter Earnings Release 2016 July 20, 2016/media/Files/T/... · 2016. 7. 20. · 2016 Second Quarter High End Guidance 2016 Second Quarter Actual 2015 Pretax ROS 13.8% 13.8%

Earnings Release July 20, 2016

Second Quarter 2016