Molson Coors Provides Historical Pro Forma Financial Results for Its Recently Acquired Central Europe Business
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.
8 Aug 2012 --- Molson Coors Brewing Company 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.
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.
