Coors Achieves Higher First Quarter Sales And Higher Income and Earnings Per Share

Apr 26, 2001, 01:00 ET from Adolph Coors Company

    GOLDEN, Colo., April 26 /PRNewswire/ -- Adolph Coors Company (NYSE:   RKY)
 today announced higher net sales, net income and earnings per share for the
 first quarter of 2001.
     For the 13-week quarter ended April 1, 2001, the company achieved net
 sales of $543.7 million, a 7.6 percent increase from a year earlier.  First
 quarter 2001 sales volume totaled 5,112,000 barrels, a 5.9 percent increase
 from 2000, as the company built distributor inventories in preparation for the
 peak summer season.  Distributor sales to retail decreased about 1.3 percent,
 after adjusting for fiscal calendar differences between 2000 and 2001, as
 compared to an exceptionally strong first quarter of 2000, when sales to
 retail increased 6.3 percent over 1999.
     The company achieved 2001 first quarter net income of $18.3 million, a
 23.7 percent increase from $14.8 million in the first quarter of 2000.  First
 quarter 2001 basic and diluted earnings per share were both $0.49, growing
 from $0.40 per basic and diluted share last year.
     Peter H. Coors, chairman of Coors Brewing Company (CBC), said, "Our first
 quarter 2001 results were mixed.  Although we grew unit volume, pricing and
 profitability, our volume growth was the result of a planned increase in
 wholesale inventories to prepare for peak season demand.  Most important, our
 momentum at retail softened during the quarter.  This softness was caused in
 part by challenging sales-to-retail comparisons from a year ago, poor weather
 in many regions of the U.S. and generally weak economic conditions.  Wholesale
 inventories for our products at the end of the first quarter were
 approximately 300,000 barrels higher than a year earlier.  Our retail sales
 trends will determine how significantly this inventory build will impact our
 unit volume and financial results for peak season this year.  The entire
 industry suffered in the first quarter at retail, but we believe the long-term
 underlying industry fundamentals remain quite positive."
     W. Leo Kiely III, CBC president and chief executive officer, said, "In
 addition to the wholesale inventory build, our net sales were driven by solid
 domestic pricing, partially offset by a mix shift away from higher-net-revenue
 brands.  Our first quarter operating results also benefited from improved
 production cost management.  Other income increased primarily because of a
 gain on the sale of some marketable securities driven by our tax strategy."
     "Looking toward the balance of the year," Kiely continued, "it is
 difficult to predict what impact weather, the economy and other
 industry-related factors will have on our business.  Regardless, we expect our
 retail sales trends to benefit from easier comparisons with last year.  In
 addition, we've increased our already solid sales-execution efforts, including
 working with distributors and retailers to expand feature advertisements and
 product displays.  We have also continued to strengthen our distributor
 network through consolidations and implementation of best practices.  In
 summary, we are sticking to our strategy of working the basics that drive beer
 sales.  Our entire organization is focused on returning our retail sales
 trends to the robust levels we have achieved consistently in the past few
 years."
 
 
                               ADOLPH COORS COMPANY
                               SUMMARY OF OPERATIONS
                                  1st QUARTER 2001
                                    (Unaudited)
 
 
                                                     Thirteen Weeks Ended
                                                   April 1,         March 26,
     (Dollars in thousands, except per
      share data)                                    2001              2000
 
     Barrels of beer and other malt
      beverages sold                              5,112,000         4,827,000
 
     Sales - domestic and international            $637,828          $596,789
     Beer excise taxes                              (94,128)          (91,360)
     Net sales                                      543,700           505,429
 
     Costs and expenses:
       Cost of goods sold                          (351,153)         (326,919)
         Gross Profit                               192,547           178,510
 
       Marketing, general and
        administrative                             (169,958)         (157,640)
     Operating income                                22,589            20,870
 
       Other income - net                             3,172               375
       Interest income - net                          3,801             2,851
     Income before income taxes                      29,562            24,096
     Income tax expense                             (11,234)           (9,277)
     Net income                                     $18,328           $14,819
 
     Net income per common share (basic)              $0.49             $0.40
     Net income per common share (diluted)            $0.49             $0.40
 
     Weighted average number of shares o/s
      (basic)                                    37,202,952        36,662,752
     Weighted average number of shares o/s
      (diluted)                                  37,687,836        37,215,833
 
     Cash dividends declared per share               $0.185            $0.165
 
 
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SOURCE Adolph Coors Company
    GOLDEN, Colo., April 26 /PRNewswire/ -- Adolph Coors Company (NYSE:   RKY)
 today announced higher net sales, net income and earnings per share for the
 first quarter of 2001.
     For the 13-week quarter ended April 1, 2001, the company achieved net
 sales of $543.7 million, a 7.6 percent increase from a year earlier.  First
 quarter 2001 sales volume totaled 5,112,000 barrels, a 5.9 percent increase
 from 2000, as the company built distributor inventories in preparation for the
 peak summer season.  Distributor sales to retail decreased about 1.3 percent,
 after adjusting for fiscal calendar differences between 2000 and 2001, as
 compared to an exceptionally strong first quarter of 2000, when sales to
 retail increased 6.3 percent over 1999.
     The company achieved 2001 first quarter net income of $18.3 million, a
 23.7 percent increase from $14.8 million in the first quarter of 2000.  First
 quarter 2001 basic and diluted earnings per share were both $0.49, growing
 from $0.40 per basic and diluted share last year.
     Peter H. Coors, chairman of Coors Brewing Company (CBC), said, "Our first
 quarter 2001 results were mixed.  Although we grew unit volume, pricing and
 profitability, our volume growth was the result of a planned increase in
 wholesale inventories to prepare for peak season demand.  Most important, our
 momentum at retail softened during the quarter.  This softness was caused in
 part by challenging sales-to-retail comparisons from a year ago, poor weather
 in many regions of the U.S. and generally weak economic conditions.  Wholesale
 inventories for our products at the end of the first quarter were
 approximately 300,000 barrels higher than a year earlier.  Our retail sales
 trends will determine how significantly this inventory build will impact our
 unit volume and financial results for peak season this year.  The entire
 industry suffered in the first quarter at retail, but we believe the long-term
 underlying industry fundamentals remain quite positive."
     W. Leo Kiely III, CBC president and chief executive officer, said, "In
 addition to the wholesale inventory build, our net sales were driven by solid
 domestic pricing, partially offset by a mix shift away from higher-net-revenue
 brands.  Our first quarter operating results also benefited from improved
 production cost management.  Other income increased primarily because of a
 gain on the sale of some marketable securities driven by our tax strategy."
     "Looking toward the balance of the year," Kiely continued, "it is
 difficult to predict what impact weather, the economy and other
 industry-related factors will have on our business.  Regardless, we expect our
 retail sales trends to benefit from easier comparisons with last year.  In
 addition, we've increased our already solid sales-execution efforts, including
 working with distributors and retailers to expand feature advertisements and
 product displays.  We have also continued to strengthen our distributor
 network through consolidations and implementation of best practices.  In
 summary, we are sticking to our strategy of working the basics that drive beer
 sales.  Our entire organization is focused on returning our retail sales
 trends to the robust levels we have achieved consistently in the past few
 years."
 
 
                               ADOLPH COORS COMPANY
                               SUMMARY OF OPERATIONS
                                  1st QUARTER 2001
                                    (Unaudited)
 
 
                                                     Thirteen Weeks Ended
                                                   April 1,         March 26,
     (Dollars in thousands, except per
      share data)                                    2001              2000
 
     Barrels of beer and other malt
      beverages sold                              5,112,000         4,827,000
 
     Sales - domestic and international            $637,828          $596,789
     Beer excise taxes                              (94,128)          (91,360)
     Net sales                                      543,700           505,429
 
     Costs and expenses:
       Cost of goods sold                          (351,153)         (326,919)
         Gross Profit                               192,547           178,510
 
       Marketing, general and
        administrative                             (169,958)         (157,640)
     Operating income                                22,589            20,870
 
       Other income - net                             3,172               375
       Interest income - net                          3,801             2,851
     Income before income taxes                      29,562            24,096
     Income tax expense                             (11,234)           (9,277)
     Net income                                     $18,328           $14,819
 
     Net income per common share (basic)              $0.49             $0.40
     Net income per common share (diluted)            $0.49             $0.40
 
     Weighted average number of shares o/s
      (basic)                                    37,202,952        36,662,752
     Weighted average number of shares o/s
      (diluted)                                  37,687,836        37,215,833
 
     Cash dividends declared per share               $0.185            $0.165
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X80531470
 
 SOURCE  Adolph Coors Company