Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) today announced it earned $11.1 million, or basic net income per share of $1.21, on net sales of $422.9 million for the second quarter of 2011, compared to net income of $12.0 million, or basic net income per share of $1.31, on net sales of $417.4 million for the second quarter of 2010. The results for the second quarter of 2011 included $1.1 million of after-tax losses ($1.7 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges. The results for the second quarter of 2010 included $4.7 million of after-tax losses ($7.8 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges and a $0.4 million after-tax gain ($0.6 million on a pre-tax basis) from insurance recoveries on assets lost or damaged due to the Nashville flood in May 2010.

On a comparable basis, the Company earned $12.3 million in the second quarter of 2011, or comparable basic net income per share of $1.33, versus $16.3 million in the second quarter of 2010, or comparable basic net income per share of $1.78.

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 second quarter of 2011 and 2010:
Second Quarter
Net Income  

Basic Net Income

Per Share
In Thousands, Except Per Share Amounts 2011   2010 2011   2010
 
Reported net income (GAAP) $ 11,101 $ 12,043 $ 1.21 $ 1.31
 
Net (gain) loss on fuel & aluminum hedges, net of tax 1,051 4,749 0.11 0.52
Impact of Nashville area flood, net of tax (372 ) (0.04 )
Other income tax changes   114   (99 )   0.01   (0.01 )
 
Total   1,165   4,278     0.12   0.47  
 
Comparable net income (a) $ 12,266 $ 16,321   $ 1.33 $ 1.78  

(a) This non-GAAP financial information is provided to allow investors to more clearly evaluate operating performance and business trends on a comparable basis for the second quarters of 2011 and 2010. Management uses this information to review results after excluding items that are not necessarily indicative of ongoing results.

The Company earned $17.0 million, or basic net income per share of $1.85, on net sales of $782.5 million for the first half of 2011, compared to net income of $16.7 million, or basic net income per share of $1.82, on net sales of $764.9 million for the first half of 2010. The results for the first half of 2011 included $1.4 million of after-tax losses ($2.4 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges. The results for the first half of 2010 included $4.6 million of after-tax losses ($7.6 million on a pre-tax basis) due to mark-to-market adjustments on fuel and aluminum hedges and a $0.4 million after-tax gain ($0.6 million on a pre-tax basis) from the impact of the Nashville flood.

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