Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) today announced it earned $5.9 million, or basic net income per share of $.64, on net sales of $359.6 million for the first quarter of 2011, compared to net income of $4.7 million, or basic net income per share of $.51, on net sales of $347.5 million for the first quarter of 2010. The results for the first quarter of 2011 included $0.4 million of after-tax losses ($0.7 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges. The results for the first quarter of 2010 included $0.1 million of after-tax gains ($0.2 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges and a $0.5 million increase in income tax expense due to the change in tax law eliminating the tax deduction once available for Medicare Part D subsidies.
On a comparable basis, the Company earned $6.4 million in the first quarter of 2011, or comparable basic net income per share of $.69, versus $4.9 million in the first quarter of 2010, or comparable basic net income per share of $.54.
The following table reconciles reported GAAP net income and basic net income per share to comparable net income and basic net income per share for the first quarter of 2011 and 2010:
Basic Net Income Per
|In Thousands, Except Per Share Amounts||2011||2010||2011||2010|
|Reported net income (GAAP)||$||5,913||$||4,660||$||0.64||$||0.51|
|Net (gain) loss on fuel & aluminum hedges, net of tax||396||(149||)||0.04||(0.02||)|
|Impact of change in tax law regarding Medicare Part D subsidy||-||464||-||0.05|
|Other income tax changes||62||(35||)||0.01||(0.00||)|
|Comparable net income (a)||$||6,371||$||4,940||$||0.69||$||0.54|
(a) This non-GAAP financial information is provided to allow investors to more clearly evaluate operating performance and business trends for the first quarters of 2011 and 2010. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results.
J. Frank Harrison, III, Chairman and CEO, said, “We are pleased with our first quarter results. We continued to grow our revenue and effectively control costs which resulted in a strong start to 2011. Our first quarter results reflect strong execution across our entire business. We continue to face many challenges including the potential for significant increases in commodity costs and persistently high unemployment in the areas we serve. ”