Central European Distribution Corporation Announces Third Quarter
2012 Results; Company Finalizes Restatement for 2nd Quarter 2012
MT. LAUREL, N.J., Nov. 16, 2012 /PRNewswire/ -- Central
European Distribution Corporation (NASDAQ: CEDC) today announced
its results for the third quarter of 2012. CEDC also announced that
it has finalized the restatement of its financial statements for
the second quarter 2012.
Third Quarter 2012 Results
CEDC today announced that, for the three months ended
September 30, 2012 net sales were
$191.3 million as compared to
$209.6 million reported for the same
period in 2011. CEDC also announced that its net income on a
U.S. GAAP basis (as hereinafter defined), for the third quarter was
$35.8 million or $0.44 per fully diluted share, as compared to a
net loss of $848.7 million or
$11.71 per fully diluted share, for
the same period in 2011. On a comparable basis, CEDC
announced a net loss of $0.3 million,
or $0.00 per fully diluted share, for
the third quarter of 2012, as compared to a net loss of
$4.5 million, or $0.06 per fully diluted share, for the same
period in 2011. The number of fully diluted shares used in
computing the earnings per share was 81.8 million for the third
quarter of 2012 and 72.6 million for the same period in 2011.
For a complete reconciliation of comparable net income to net
income reported under United States Generally Accepted Accounting
Principles ("U.S. GAAP"), please see the section "Unaudited
Reconciliation of Non-GAAP Measures".
Q3 2012 Business summary (in comparison to Q3 2011):
- Net sales of $191 million
(-8.7%), driven by organic growth of 1 % which was offset by
negative impact of FX (-9.7%);
- Overall comparable gross margin improvement from 38% to
43%;
- Comparable operating profit up by 22%; and
- Further growth of domestic vodka sales in volume and value in
Poland; decline in the Russian
market due to among others factors prior overstocking of the market
before July 1st excise tax
increase.
"In spite of the challenges faced by the company during this
period, the changes in operational management and controls are
starting to produce improved operating results. The efforts we
have put into better execution of our pricing policy and focus on
more profitable product mix in all of our key markets resulted in
improvement of our comparable gross margin and significant increase
of our comparable operating profit," commented David Bailey, CEO of CEDC
For further information regarding the third quarter of 2012, a
slide presentation will be available on the Investor Relations
section of our website at www.cedc.com/investor-relations.
Financial Restatement
As previously disclosed, upon the recommendation of senior
management, the Audit Committee of CEDC's board of directors
concluded that CEDC's unaudited condensed consolidated financial
statements for the three and six months ended June 30, 2012, should no longer be relied upon
because of a need to correct an excess write-off of accounts
receivable previously recorded to account for promotional
compensation granted to one customer at the Russian Alcohol Group
("RAG"), its main operating subsidiary in Russia. The excess write-off resulted in an
inadvertent understatement of CEDC's accounts receivable. CEDC's
management has concluded that as a result of the correction,
accounts receivable as at June 30,
2012 were understated by $5.8
million, taxes other than income taxes were understated by
$0.1 million, foreign currency
translation adjustment was overstated by $0.3 million and selling, general and
administrative expenses for the three and six months ended
June 30, 2012 were overstated by
$6.0 million, resulting in an
understatement of the net income for the three and six months ended
June 30, 2012 of $6.0 million. These amounts reflect the fact that
certain accounts receivable from one customer of RAG that had been
written off in the CEDC's unaudited condensed consolidated
financial statements for the three and six month period ended
June 30, 2012, were recovered before
the filing of the CEDC's unaudited condensed consolidated financial
statements for the three and six months ended June 30, 2012 with the United States Securities
and Exchange Commission and therefore the associated accounts
receivable should have been higher. The adjustments have no impact
on previously reported net cash provided by operating activities
reported in the cash flow statements during the period.
In addition to the error in recognition of accounts receivable
in previously issued financial statements described
above, the restated unaudited condensed consolidated
financial statements for the three and six months ended
June 30, 2012 to be filed by CEDC
will also correct the presentation of non-trade receivables from
accounts receivable and accrued liabilities to other current
assets, and as a result reported accounts receivable will be
decreased by $8.6 million, other
accrued liabilities will be decreased by $2.0 million and other current assets will be
increased by $6.6 million. The
unaudited condensed consolidated statement of operations for the
three and six month period ended June 30,
2012 and the unaudited condensed consolidated statement of
cash flow for the six months then ended will not be affected by
this presentation error.
CEDC is currently targeting a date of November 19, 2012, for filing an amended
quarterly report on Form 10-Q for the three and six months ended
June 30, 2012 with the United States
Securities and Exchange Commission to reflect the restated
financial statements. There can be no assurance, however, that this
filing will be made within the anticipated period.
NASDAQ Compliance Letter
CEDC also announced that on November 14,
2012 it received a letter from the Nasdaq Listing
Qualifications Department stating that, since CEDC has not yet
filed its Form 10-Q for the period ended September 30, 2012, it no longer complies with
Nasdaq Listing Rule 5250(c)(1). The letter states that CEDC has
until January 8, 2013 to submit a
plan to regain compliance and that, if it accepts CEDC's plan,
Nasdaq can grant an exception until May 8,
2013 for CEDC to regain compliance. CEDC intends to file its
Form 10-Q as soon as practicable and expects to regain compliance
with Listing Rule 5250(c)(1) upon such filing.
Non-GAAP Financial Information
CEDC has reported net income and fully diluted net income per
share in accordance with GAAP and on a non-GAAP basis, referred to
in this release as comparable net income. CEDC's management
believes that the non-GAAP reporting giving effect to the
adjustments shown in the attached reconciliation provides
meaningful information and an alternative presentation useful to
investors' understanding of CEDC's core operating results and
trends. CEDC discusses results and guidance on a comparable basis
in order to give investors better insight into underlying business
trends from continuing operations. CEDC's calculation of these
measures may not be the same as similarly named measures presented
by other companies. These measures are not presented as an
alternative to net income computed in accordance with GAAP as a
performance measure, and you should not place undue reliance on
such measures.
About Central European Distribution Corporation
CEDC is one of the largest producers of vodka in the world and
Central and Eastern Europe's
largest integrated spirit beverage business. CEDC produces
the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli,
Royal and Soplica brands, among others. CEDC currently exports its
products to many markets around the world, including the United States, England, France and Japan.
CEDC also is a leading importer of alcoholic beverages in
Poland, Russia and Hungary. In Poland, CEDC imports many of the world's
leading brands, including brands such as Carlo Rossi Wines, Concha y Toro wines, Metaxa
Liqueur, Remy Martin Cognac, Sutter
Home wines, Grant's Whisky, Jagermeister, E&J Gallo, Jim
Beam Bourbon, Sierra Tequila, Teacher's Whisky, Campari, Cinzano,
and Old Smuggler. CEDC is also a leading importer of premium
spirits and wines in Russia with
such brands as Concha y Toro, among others.
Cautionary Statement about Forward-Looking
Information
This press release contains forward looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
including, without limitation, statements regarding the effect of
changes in CEDC management and controls on CEDC's operating
results, gross margin or operating profit.
Forward looking statements are based on our knowledge
of facts as of the date hereof and involve known and unknown risks
and uncertainties that may cause the actual results, performance or
achievements of CEDC to be materially different from any future
results, performance or achievements expressed or implied by our
forward looking statements. Such risks include, among others,
uncertainties regarding the timing of the filing of the
restatement, unanticipated accounting issues or audit issues
regarding the financial data for the period to be restated or
adjusted and the inability of CEDC or its independent registered
public accounting firm to confirm relevant information or data.
Investors are cautioned that forward looking statements are not
guarantees of future performance and that undue reliance should not
be placed on such statements. CEDC undertakes no obligation to
publicly update or revise any forward looking statements or to make
any other forward looking statements, whether as a result of new
information, future events or otherwise, unless required to do so
by securities laws. Investors are referred to the full discussion
of risks and uncertainties included in CEDC's Form 10-K/A for the
fiscal year ended December 31, 2011,
filed with the SEC on October 5,
2012, including statements made under the captions "Item 1A.
Risks Relating to Our Business" and in other documents filed by
CEDC with the SEC.
Contact:
In the U.S.:
Jim Archbold
Investor Relations Officer
Central European Distribution Corporation
856-273-6980
In Europe:
Anna Załuska
Corporate PR Manager
Central European Distribution Corporation
48-22-456-6061
CENTRAL
EUROPEAN DISTRIBUTION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
All amounts are expressed in thousands
(except share information)
|
|
|
|
30
September,
2012
|
|
31
December,
2011
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and
cash equivalents
|
|
$102,713
|
|
$94,410
|
Accounts
receivable, net of allowance for doubtful accounts at
September
30, 2012
of $26,512 and at December 31, 2011 of $24,510
|
|
220,802
|
|
410,866
|
Inventories
|
|
160,061
|
|
117,690
|
Prepaid
expenses
|
|
27,472
|
|
16,538
|
Other
current assets
|
|
48,780
|
|
23,020
|
Deferred
income taxes
|
|
5,173
|
|
4,717
|
Debt
issuance costs
|
|
7,389
|
|
2,962
|
Total
Current Assets
|
|
572,390
|
|
670,203
|
|
|
|
|
|
Intangible
assets, net
|
|
486,787
|
|
463,848
|
Goodwill
|
|
706,924
|
|
670,294
|
Property,
plant and equipment, net
|
|
178,871
|
|
176,660
|
Deferred
income taxes, net
|
|
23,195
|
|
21,488
|
Debt
issuance costs
|
|
11,324
|
|
13,550
|
Non-current assets held for sale
|
|
675
|
|
675
|
Total
Non-Current Assets
|
|
1,407,776
|
|
1,346,515
|
|
|
|
|
|
Total
Assets
|
|
$1,980,166
|
|
$2,016,718
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Trade
accounts payable
|
|
$78,735
|
|
$144,797
|
Bank loans
and overdraft facilities
|
|
115,196
|
|
85,762
|
Obligations under Convertible Senior Notes
|
|
257,122
|
|
0
|
Obligations under Debt Security
|
|
70,000
|
|
0
|
Income
taxes payable
|
|
9,421
|
|
9,607
|
Taxes
other than income taxes
|
|
101,820
|
|
189,515
|
Other
accrued liabilities
|
|
75,357
|
|
48,208
|
Current
portions of obligations under capital leases
|
|
832
|
|
1,109
|
Total
Current Liabilities
|
|
708,483
|
|
478,998
|
|
|
|
|
|
Long-term
obligations under capital leases
|
|
674
|
|
532
|
Long-term
obligations under Convertible Senior Notes
|
|
0
|
|
304,645
|
Long-term
obligations under Senior Secured Notes
|
|
933,871
|
|
932,089
|
Long-term
accruals
|
|
2,093
|
|
2,000
|
Deferred
income taxes
|
|
94,815
|
|
91,128
|
Commitments and contingent liabilities (Note
15)
|
|
|
|
|
Total
Long-Term Liabilities
|
|
1,031,453
|
|
1,330,394
|
|
|
|
|
|
Temporary equity
|
|
29,443
|
|
0
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
Common
Stock ($0.01 par value, 120,000,000 shares authorized,
73,045,992
and 72,740,302 shares issued and outstanding at
September
30, 2012
and December 31, 2011, respectively)
|
|
730
|
|
727
|
Preferred
Stock ($0.01 par value, 1,000,000 shares authorized, none issued
and outstanding)
|
|
0
|
|
0
|
Additional
paid-in-capital
|
|
1,371,389
|
|
1,369,471
|
Accumulated deficit
|
|
(1,189,620)
|
|
(1,197,884)
|
Accumulated other comprehensive income
|
|
28,438
|
|
35,162
|
Less
Treasury Stock at cost (246,037 shares at September 30, 2012 and
December 31, 2011, respectively)
|
|
(150)
|
|
(150)
|
|
|
|
|
|
Total
Stockholders' Equity
|
|
210,787
|
|
207,326
|
|
|
|
|
|
Total
Liabilities and Equity
|
|
$1,980,166
|
|
$2,016,718
|
|
|
|
|
|
CENTRAL
EUROPEAN DISTRIBUTION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(UNAUDITED)
All amounts are expressed in thousands
(except per share information)
|
|
|
Three
months ended September 30,
|
|
Nine
months ended September 30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$401,113
|
|
$432,942
|
|
$1,125,619
|
|
$1,176,861
|
Excise
taxes
|
(209,782)
|
|
(223,304)
|
|
(601,098)
|
|
(630,513)
|
Net
sales
|
191,331
|
|
209,638
|
|
524,521
|
|
546,348
|
Cost of
goods sold
|
109,317
|
|
131,427
|
|
312,055
|
|
340,820
|
|
|
|
|
|
|
|
|
Gross
profit
|
82,014
|
|
78,211
|
|
212,466
|
|
205,528
|
|
42.9%
|
|
37.3%
|
|
40.5%
|
|
37.6%
|
Selling,
general and administrative
expenses
|
66,835
|
|
61,710
|
|
187,909
|
|
180,836
|
Gain on
remeasurement of previously
held
equity interests
|
0
|
|
0
|
|
0
|
|
(7,898)
|
Impairment
charge
|
0
|
|
674,515
|
|
0
|
|
674,515
|
|
|
|
|
|
|
|
|
Operating income / (loss)
|
15,179
|
|
(658,014)
|
|
24,557
|
|
(641,925)
|
|
|
|
|
|
|
|
|
Non
operating income / (expense), net
|
|
|
|
|
|
|
|
Interest
income / (expense), net
|
(26,231)
|
|
(28,123)
|
|
(78,139)
|
|
(83,336)
|
Other
financial income / (expense), net
|
58,490
|
|
(170,337)
|
|
80,648
|
|
(120,807)
|
Other non
operating income / (expense),
net
|
(5,883)
|
|
(10,683)
|
|
(10,982)
|
|
(14,320)
|
|
|
|
|
|
|
|
|
Income
/ (loss) before income taxes and
equity
in net losses from
unconsolidated investments
|
41,555
|
|
(867,157)
|
|
16,084
|
|
(860,388)
|
Income tax
benefit / (expense)
|
(5,786)
|
|
18,422
|
|
(7,820)
|
|
14,232
|
Equity in
net losses of affiliates
|
0
|
|
0
|
|
0
|
|
(7,946)
|
|
|
|
|
|
|
|
|
Net
income / (loss) attributable to the
company
|
35,769
|
|
(848,735)
|
|
8,264
|
|
(854,102)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income / (loss) from operations per
share
of common stock, basic
|
$0.46
|
|
($11.71)
|
|
$0.11
|
|
($11.85)
|
Net
income / (loss) from operations per
share
of common stock, diluted
|
$0.44
|
|
($11.71)
|
|
$0.10
|
|
($11.85)
|
|
|
|
|
|
|
|
|
Other
comprehensive income / (loss),
net of
tax:
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
10,945
|
|
(215,010)
|
|
(6,724)
|
|
(50,410)
|
|
|
|
|
|
|
|
|
Comprehensive income / (loss)
attributable to the company
|
$46,714
|
|
($1,063,745)
|
|
$1,540
|
|
($904,512)
|
|
|
|
|
|
|
|
|
CENTRAL
EUROPEAN DISTRIBUTION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
All amounts are expressed in thousands
|
|
|
|
Nine
months ended September 30,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Cash
flows from operating activities
|
|
|
|
|
Net income
/ (loss)
|
|
$8,264
|
|
($854,102)
|
Adjustments to reconcile net loss to net cash
provided by
operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
15,075
|
|
15,328
|
Deferred income taxes
|
|
(1,948)
|
|
(5,138)
|
Unrealized foreign exchange gains
|
|
(77,591)
|
|
118,366
|
Stock options fair value expense
|
|
1,919
|
|
1,998
|
Equity loss in affiliates
|
|
0
|
|
7,946
|
Gain on fair value remeasurement of previously held
equity
interest
|
|
0
|
|
(6,397)
|
Impairment charge
|
|
0
|
|
674,515
|
Impairments related to assets held for
sale
|
|
0
|
|
7,355
|
Other non cash items
|
|
849
|
|
6,170
|
Changes in operating assets and
liabilities:
|
|
|
|
|
Accounts receivable
|
|
211,483
|
|
246,153
|
Inventories
|
|
(33,969)
|
|
(9,183)
|
Prepayments and other current assets
|
|
(42,447)
|
|
(7,701)
|
Trade accounts payable
|
|
(78,804)
|
|
(42,518)
|
Other accrued liabilities and payables
(including
taxes)
|
|
(71,829)
|
|
(106,396)
|
Net cash
provided by / (used in) operating activities
|
|
(68,998)
|
|
46,396
|
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
|
Purchase
of fixed assets
|
|
(8,017)
|
|
(5,422)
|
Proceeds
from the disposal of fixed assets
|
|
381
|
|
0
|
Purchase
of intangibles
|
|
0
|
|
(693)
|
Purchase
of trademarks
|
|
0
|
|
(17,473)
|
Acquisitions of subsidiaries, net of cash
acquired
|
|
0
|
|
(24,125)
|
Net cash
used in investing activities
|
|
(7,636)
|
|
(47,713)
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
Borrowings
on bank loans and overdraft facility
|
|
78,177
|
|
36,027
|
Payment of
bank loans, overdraft facility and other borrowings
|
|
(45,439)
|
|
(37,892)
|
Debt
security, net of debt issuance cost of $838
|
|
69,162
|
|
0
|
Repayment
of Convertible Senior Notes
|
|
(50,392)
|
|
0
|
Issuance
of shares in private placement
|
|
29,885
|
|
0
|
Decrease
in short term capital leases payable
|
|
(252)
|
|
(34)
|
Proceeds
from options exercised
|
|
0
|
|
72
|
Net cash
provided by / (used in) financing activities
|
|
81,141
|
|
(1,827)
|
|
|
|
|
|
|
|
|
|
|
Currency
effect on brought forward cash balances
|
|
3,796
|
|
(7,781)
|
Net
increase in cash
|
|
8,303
|
|
(10,925)
|
Cash and
cash equivalents at beginning of period
|
|
94,410
|
|
122,116
|
Cash and
cash equivalents at end of period
|
|
$102,713
|
|
$111,191
|
|
|
|
|
|
Supplemental Schedule of Non-cash Investing
Activities
|
|
|
|
|
Common
stock issued in connection with investment in
subsidiaries
|
|
$0
|
|
$23,175
|
|
|
|
|
|
CENTRAL
EUROPEAN DISTRIBUTION CORPORATION
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES
All amounts are expressed in thousands
|
|
|
|
|
|
|
|
|
GAAP
|
A
|
B
|
C
|
D
|
Comparable
|
|
|
|
|
|
|
|
|
Q3-12
|
FX
|
APB
14
|
Advisory
costs
|
Restructuring /
Re-licensing Costs
|
Q3-12
|
|
|
|
|
|
|
|
Sales
|
$401,113
|
$0
|
$0
|
$0
|
$0
|
$401,113
|
Excise
taxes
|
(209,782)
|
0
|
0
|
0
|
0
|
(209,782)
|
Net
sales
|
191,331
|
0
|
0
|
0
|
0
|
191,331
|
Cost of
goods sold
|
109,317
|
0
|
0
|
0
|
0
|
109,317
|
|
|
|
|
|
|
|
Gross
profit
|
82,014
|
0
|
0
|
0
|
0
|
82,014
|
|
42.86%
|
|
|
|
|
42.86%
|
Operating
expenses
|
66,835
|
0
|
0
|
(11,383)
|
(1,932)
|
53,520
|
|
|
|
|
|
|
|
Operating income
|
15,179
|
0
|
0
|
11,383
|
1,932
|
28,494
|
|
7.93%
|
|
|
|
|
14.89%
|
Non
operating income / (expense), net
|
|
|
|
|
|
|
Interest income / (expense), net
|
(26,231)
|
0
|
1,510
|
0
|
0
|
(24,721)
|
Other financial income / (expense), net
|
58,490
|
(58,490)
|
0
|
0
|
0
|
0
|
Other non operating income / (expense),
net
|
(5,883)
|
0
|
0
|
1,867
|
0
|
(4,016)
|
|
|
|
|
|
|
|
Income
/ (loss) before taxes and equity in net income from
unconsolidated investments
|
41,555
|
(58,490)
|
1,510
|
13,250
|
1,932
|
(243)
|
Income tax
benefit / (expense)
|
(5,786)
|
11,698
|
(529)
|
(4,355)
|
(1,043)
|
(15)
|
|
|
|
|
|
|
|
Net
income /(loss)
|
$35,769
|
($46,792)
|
$981
|
$8,895
|
$889
|
($258)
|
|
|
|
|
|
|
|
Net
income / (loss) from continuing operations per share
of
common
stock, basic
|
$0.46
|
|
|
|
|
($0.00)
|
|
|
|
|
|
|
|
Net
income / (loss) from continuing operations per share
of
common
stock, diluted
|
$0.44
|
|
|
|
|
($0.00)
|
|
|
|
|
|
|
|
A. Represents the net after tax impact
of the foreign currency revaluation related to our USD and EUR
liabilities as a majority of these have been lent down to entities
that have the Polish Zloty or Russian Ruble as their functional
currency. Also includes the proportional net after tax impact
of the foreign currency revaluation related to the foreign currency
liabilities included in the earnings of the Russian Alcohol Group
as it has the Russian Ruble as its functional currency.
B. In May
2008, the FASB issued FSP APB 14-1, which impacts the
accounting treatment for convertible debt instruments that allow
for either mandatory or optional cash settlements. FSP APB 14-1
will impact the accounting associated with our $310.0 million senior convertible notes. This FSP
requires us to recognize additional non-cash interest expense on a
retrospective basis, based on the market rate for similar debt
instruments without the conversion feature. Furthermore, it
requires recognizing interest expense in prior periods pursuant to
the retrospective accounting treatment. FSP APB 14-1 has become
effective beginning in our first quarter of 2009 and is required to
be applied retrospectively to all presented periods, as
applicable.
C. Represents one-off legal and
other professional service costs associated with transaction with
the Russian Standard and the restatement process.
D. Represents net impact of
one-off items related to restructuring associated with the Russian
Alcohol Group and the Whitehall Group in Russia as well as severance payments for
former officers of the Company.
|
|
GAAP
|
A
|
B
|
C
|
D
|
Comparable
|
|
|
|
|
|
|
|
|
|
|
Q3-11
|
FX
|
APB
14
|
Restructuring
Costs
|
Other
Adjustments
|
Q3-11
|
|
|
|
|
|
|
|
|
Sales
|
|
$432,942
|
$0
|
$0
|
$0
|
$0
|
$432,942
|
Excise
taxes
|
|
(223,304)
|
0
|
0
|
0
|
0
|
(223,304)
|
Net
sales
|
|
209,638
|
0
|
0
|
0
|
0
|
209,638
|
Cost of
goods sold
|
|
131,427
|
0
|
0
|
(446)
|
0
|
130,981
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
78,211
|
0
|
0
|
446
|
0
|
78,657
|
|
|
37.31%
|
|
|
|
|
37.52%
|
Operating
expenses
|
|
61,710
|
0
|
0
|
(6,415)
|
0
|
55,295
|
Impairment
charge
|
|
674,515
|
0
|
0
|
0
|
(674,515)
|
0
|
Operating income / (loss)
|
|
(658,014)
|
0
|
0
|
6,861
|
674,515
|
23,362
|
|
|
-313.88%
|
|
|
|
|
11.14%
|
Non
operating income / (expense), net
|
|
|
|
|
|
|
|
Interest income / (expense), net
|
|
(28,123)
|
0
|
1,101
|
0
|
0
|
(27,022)
|
Other financial income / (expense), net
|
|
(170,337)
|
170,337
|
0
|
0
|
0
|
0
|
Other non operating income / (expense),
net
|
|
(10,683)
|
0
|
0
|
8,678
|
0
|
(2,005)
|
|
|
|
|
|
|
|
|
Income
/ (loss) before taxes and equity in net income from
unconsolidated investments
|
|
(867,157)
|
170,337
|
1,101
|
15,539
|
674,515
|
(5,665)
|
Income tax
benefit / (expense)
|
|
18,422
|
(34,067)
|
(385)
|
(3,263)
|
20,484
|
1,190
|
Net
income /(loss)
|
|
($848,735)
|
$136,270
|
$716
|
$12,276
|
$694,999
|
($4,475)
|
|
|
|
|
|
|
|
|
Net
loss from continuing operations per share of common
stock,
basic
|
|
($11.71)
|
|
|
|
|
($0.06)
|
|
|
|
|
|
|
|
|
Net
loss from continuing operations per share of common
stock,
diluted
|
|
($11.71)
|
|
|
|
|
($0.06)
|
|
|
|
|
|
|
|
|
A. Represents the net after tax impact
of the foreign currency revaluation related to our USD and EUR
liabilities as a majority of these have been lent down to entities
that have the Polish Zloty or Russian Ruble as their functional
currency. Also includes the proportional net after tax impact
of the foreign currency revaluation related to the foreign currency
liabilities included in the earnings of the Russian Alcohol Group
as it has the Russian Ruble as its functional currency.
B. In May
2008, the FASB issued FSP APB 14-1, which impacts the
accounting treatment for convertible debt instruments that allow
for either mandatory or optional cash settlements. FSP APB 14-1
will impact the accounting associated with our $310.0 million senior convertible notes. This FSP
requires us to recognize additional non-cash interest expense on a
retrospective basis, based on the market rate for similar debt
instruments without the conversion feature. Furthermore, it
requires recognizing interest expense in prior periods pursuant to
the retrospective accounting treatment. FSP APB 14-1 has become
effective beginning in our first quarter of 2009 and is required to
be applied retrospectively to all presented periods, as
applicable.
C. Includes elimination costs
associated with the re-licensing in Russia. Primarily
consists of costs related to facility improvements and preparation
of facilities for inspection as well as accounts receivables
related to wholesalers who did not obtain required wholesale
licenses. Also includes costs associated with the Tula plant
which was discontinued during the period, including related fixed
asset write-downs.
D. Net impact of impairment charge
for goodwill and brands as well as tax true up of NOL provision in
income taxes
SOURCE Central European Distribution Corporation