Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) today provided historical pro forma financial results for its Central Europe business, formerly called StarBev, which was acquired on June 15, 2012. These unaudited pro forma statements of operations have been converted from IFRS accounting to US GAAP accounting and adjusted to reflect the Company’s accounting policies and to make the presentation more comparable on a go-forward basis. These unaudited statements present the Central Europe operation’s historical performance as if the StarBev acquisition had been completed at the beginning of 2011 and include the four quarters and full year of 2011, as well as the first two quarters of 2012. 1
Molson Coors president and chief executive officer Peter Swinburn said, “During the quarter, we financed and closed the acquisition of StarBev, now called Molson Coors Central Europe. We completed the acquisition on June 15, 2012, with a final purchase price of €2.7 billion, equivalent to $3.4 billion. We believe the EBITDA margins are sustainable, synergies will be delivered and capital spend will be lower than our original expectation.
“In pro forma US GAAP, the purchase price represents a multiple of 10.8-times 2011 underlying EBITDA. 2 This is a very reasonable multiple for a business with a good long-term growth profile, and we expect it to be earnings accretive in the first full year. For 2011, Central Europe pro forma results under US GAAP included net sales of $940 million, underlying pretax income of $182 million, and underlying EBITDA of $317 million. Gross margin as a percent of net sales was 44%, underlying EBITDA margin was 34%, and underlying operating margin was 19%. These results confirm that the business has a solid margin structure from which to grow.” Unadjusted pro forma pretax income for 2011 was $175 million.
Historical pro forma results under U.S. GAAP have been prepared to provide comparable information in all periods presented. Pro forma adjustments include, but are not limited to, purchase accounting valuation adjustments, interest expense related to extinguished debt, and acquisition-related expenses. For more detailed information regarding the nature of these pro forma adjustments, please see the Company’s acquisition-related Form 8-K/A. Underlying results have also been adjusted to exclude certain Special and other Non-Core Items, as described and reconciled in the tables of this release.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV