PepsiAmericas Reports 25.5 Percent Increase In Net Income for the First Quarter of 2001

Apr 25, 2001, 01:00 ET from PepsiAmericas, Inc.

    MINNEAPOLIS, April 25 /PRNewswire/ -- PepsiAmericas, Inc. (NYSE:   PAS)
 today reported improved results for the first quarter of 2001.  Net income, as
 reported, increased 25.5 percent to $12.8 million, or $0.08 per diluted share,
 compared to $0.07 per share in the prior year first quarter.  Results for the
 first quarter of 2001 included a gain from the curtailment of the existing
 salaried pension plans of $8.9 million and special charges, primarily related
 to organizational changes, of $4.6 million.  These non-recurring items
 increased net income by $2.6 million, or 1 cent per share.
     The company, previously known as Whitman Corp., significantly increased
 the size of its operations through its acquisition of the former PepsiAmericas
 in November 2000.  As such, results for the first quarter of 2001 compared to
 pro forma results for the first quarter of 2000 provide a more meaningful
 comparison.  The pro forma results assume the November 2000 merger between
 Whitman and the former PepsiAmericas occurred on January 1, 2000.  On a
 comparable basis and excluding the impact of the non-recurring items recorded
 in the 2001 first quarter, results for the current quarter were as follows:
 
     -- Total volume increased 1.8 percent.
     -- Average revenue per case in the U.S. increased 2.4 percent.
     -- Worldwide revenue grew 2.6 percent to $705.4 million.
     -- Operating income increased 6.3 percent to $42.5 million.
     -- Earnings before interest, taxes, depreciation and amortization (EBITDA)
        increased 2.3 percent to $93.6 million.
     -- Net income increased 34.2 percent to $10.2 million compared with
        pro forma net income of $7.6 million in the first quarter of 2000.
     -- Earnings per share on a diluted basis were $0.07 compared to
        $0.05 a year ago, up 40 percent.
 
     "PepsiAmericas is off to a good start in the first quarter of fiscal 2001,
 especially given comparison with a strong first quarter a year ago," said
 Robert C. Pohlad, chief executive officer of PepsiAmericas.  "We made progress
 on each of our priorities for 2001, especially improving profitability
 internationally, driving growth in flavored CSD's and non-carbonated beverages
 and maintaining pricing discipline.  We also continued to make progress in the
 merger integration."
     While total worldwide volume on a raw case basis increased 1.8 percent,
 volume in the U.S. was essentially flat, up 0.1 percent.  However, on an
 8-ounce equivalent case basis domestic volume grew 1.5 percent, reflecting the
 mix shift to the 2-liter and 24-ounce packages.  Volume growth was driven by
 the fourth quarter 2000 introduction of Sierra Mist and continued strong
 growth in Aquafina.  Volume in international markets increased 8.8 percent,
 including incremental volume in Trinidad and Tobago, territories acquired in
 December 2000.  Excluding the incremental volume, volume in comparable
 territories increased 5.9 percent.
     Domestic revenue increased 2.5 percent to $614.4 million and revenue in
 the international markets increased 3.6 percent to $91 million.
     PepsiAmericas' international business made progress in the first quarter
 of 2001, with both the Caribbean and Central Europe improving profitability.
 These results were led by the Caribbean, with operating losses reduced by 60
 percent in the first quarter.  "We're pleased that the Caribbean markets
 turned in a positive EBITDA performance in the quarter largely due to
 significant improvement in our business in Puerto Rico," said Mr. Pohlad.
     "We remain committed to achieving our forward-looking growth targets for
 2001," stated Mr. Pohlad.  "For the full year, we continue to expect to
 achieve volume growth in the range of 2 to 3 percent, EBITDA growth of 8 to 10
 percent and earnings per share growth of 18 to 22 percent, with stronger
 comparisons in the second half of the year."
 
     PepsiAmericas is the number-two anchor bottler in the Pepsi system with
 operations in 18 states as well as Puerto Rico, Jamaica, Bahamas, Trinidad and
 Tobago, Poland, Hungary, the Czech Republic and Republic of Slovakia.  In
 total, the company serves a population of more than 117 million people.
 PepsiAmericas manufactures, distributes and markets a broad portfolio of
 Pepsi-Cola, Dr. Pepper and Seven-Up brands.  PepsiCo, Inc. (NYSE:   PEP) holds a
 36.7 percent equity interest in PepsiAmericas.
 
     PepsiAmericas will hold an earnings conference call at 9:00 AM (EDT) on
 April 25, 2001.  To listen live to this discussion with financial analysts,
 please dial 888-886-7046 within the U.S. and 303-205-0044 from outside the
 U.S.  Request the PepsiAmericas conference call.  A playback of the discussion
 will be available for seven days after the call at 800-405-2236 within the US
 and 303-590-3000 from outside the US.  The conference will also be simulcast
 on the web at www.pepsiamericas.com, or www.ccbn.com.
 
     This release contains forward-looking statements of expected future
 developments.  We wish to ensure such statements are accompanied by meaningful
 cautionary statements pursuant to the safe harbor established by the Private
 Securities Litigation Reform Act of 1995.  The forward-looking statements in
 the release refer to the expectations regarding continuing operating
 improvement and other matters.  These forward-looking statements reflect
 management's expectations and are based on currently available data; however,
 actual results are subject to future events and uncertainties, which could
 materially affect actual performance.  Our future performance involves a
 number of risks and uncertainties.  Accordingly, any forward-looking
 statements should be read in conjunction with information about risks and
 uncertainties set forth in the company's Securities and Exchange Commission
 reports, including its annual report and Form 10-K for the year ended December
 30, 2000.
 
 
                                PEPSIAMERICAS, INC.
                          CONDENSED STATEMENTS OF INCOME
                           FOR THE FIRST QUARTER OF 2001
                   COMPARED WITH THE SAME PERIOD OF FISCAL 2000
                (UNAUDITED AND IN MILLIONS, EXCEPT PER SHARE DATA)
 
                                                         First Quarter
 
                                                   As Reported        Pro Forma
                                                 2001        2000        2000
 
      Sales                                     $705.4      $548.9      $687.3
      Cost of goods sold                         428.3       319.7       411.4
           Gross profit                          277.1       229.2       275.9
      Selling, delivery and administrative
       expenses                                  222.3       181.5       223.5
      Amortization expense                        12.3        10.1        12.4
      Special charges                              4.6          --          --
      Gain on pension curtailment                 (8.9)         --          --
           Operating income                       46.8        37.6        40.0
      Interest expense, net                      (24.5)      (20.3)      (25.6)
      Other income, net                            1.5         2.1         0.8
           Income before income taxes             23.8        19.4        15.2
      Income taxes                                11.0         9.2         7.6
 
      Net income                                 $12.8       $10.2        $7.6
 
      EBITDA (exclusive of special charges
       and credits)                              $93.6       $82.8       $91.5
 
      Basic earnings per share:
           On net income                         $0.08       $0.07       $0.05
           Excluding nonrecurring charges
            and credits                           0.07        0.07        0.05
 
           Weighted average shares outstanding   155.8       138.1       157.2
 
      Diluted earnings per share:
           On net income                         $0.08       $0.07       $0.05
           Excluding nonrecurring charges
            and credits                           0.07        0.07        0.05
 
           Weighted average shares outstanding   156.8       138.5       158.2
 
 
                                PEPSIAMERICAS, INC.
                             CONDENSED BALANCE SHEETS
                            (UNAUDITED AND IN MILLIONS)
 
                                                 First Quarter      Fiscal Year
                                                       2001              2000
 
      Cash                                            $50.0             $51.2
      Receivables                                     194.2             203.0
      Inventory                                       169.0             164.0
      Other current assets                             74.2              58.8
         Total current assets                         487.4             477.0
      Net property                                  1,000.0           1,004.7
      Intangible assets                             1,735.6           1,740.7
      Other assets                                    117.2             113.2
 
         Total assets                              $3,340.2          $3,335.6
 
      Short-term debt                                $308.4            $513.3
      Payables                                        206.1             199.1
      Other current liabilities                       145.2             174.6
         Total current liabilities                    659.7             887.0
      Long-term debt                                1,086.5             860.1
      Deferred income taxes                            53.1              47.0
      Other liabilities                                82.0              92.0
 
      Shareholders' equity                          1,458.9           1,449.5
 
          Total liabilities and
           shareholders' equity                    $3,340.2          $3,335.6
 
 
                          PEPSIAMERICAS, INC.
                   CONDENSED STATEMENTS OF CASH FLOWS
                     FOR THE FIRST QUARTER OF 2001
              COMPARED WITH THE SAME PERIOD OF FISCAL 2000
                      (UNAUDITED AND IN MILLIONS)
 
                                                         First Quarter
 
                                                  As Reported        Pro Forma
                                                2001          2000       2000
 
      Cash Flows from Operating Activities:
      Income from continuing operations         $12.8         $10.2      $7.6
      Adjustments to reconcile to net cash
       provided by operating activities of
         continuing operations:
         Depreciation and amortization           50.0          43.1      50.6
         Gain on pension curtailment             (8.9)           --        --
         Gain on sale of franchises               -            (1.4)       --
         Special charges                          4.6            --        --
         Special charges reserve spending       (11.8)        (10.0)    (10.0)
         Other                                    2.4          (0.9)      0.6
      Changes in assets and liabilities,
       exclusive of acquisitions and divestitures:
         Net change in primary working capital    1.4          13.9      18.0
         Net change in other assets and
          liabilities                           (31.4)        (16.2)    (24.8)
      Net cash provided by operating
       activities of continuing operations       19.1          38.7      42.0
 
      Cash Flows from Investing Activities:
      Capital investments, net                  (37.7)        (34.3)    (46.6)
      Acquisitions and divestitures, net         (5.1)          2.5        --
      Proceeds from sales of investments          1.6            --        --
      Net cash used in investing activities     (41.2)        (31.8)    (46.6)
 
      Cash Flows from Financing Activities:
      Proceeds from issuance of long-term
       debt                                     352.7            --        --
      Repayment of long-term debt              (127.7)         (0.3)       --
      Net borrowings of short-term debt        (205.2)         25.7      40.2
      Issuance of common stock                    6.6           1.0       1.0
      Treasury stock purchases                    -           (31.5)    (31.5)
      Net cash provided by (used in)
       financing activities                      26.4          (5.1)      9.7
 
      Net Cash Used in Discontinued Operations   (5.3)         (4.1)     (4.1)
      Effects of Exchange Rate Changes on
       Cash and Equivalents                      (0.2)         (0.3)     (0.3)
      Change in Cash and Equivalents             (1.2)         (2.6)      0.7
      Cash and Equivalents at Beginning of Year  51.2         114.5      85.0
      Cash and Equivalents at End of Quarter    $50.0        $111.9     $85.7
 
 
      Notes to Condensed Consolidated Financial Statements:
 
      1. The Company's fiscal year consists of 52 or 53 weeks ending on the
         Saturday closest to December 31.  The Company's 2001 and 2000 first
         quarters ended March 31, 2001 and April 1, 2000, respectively, and are
         each based on thirteen weeks.
 
      2. The pro forma and financial information presented on the Condensed
         Statements of Income and Cash Flows assumes the acquisition of the
         former PepsiAmericas occurred at the beginning of 2000.  Interest
         expense has been adjusted to assume the interest rates in effect in
         both years for the Company would have been in effect for debt assumed
         from the former PepsiAmericas business units.
 
      3. The pension curtailment gain recorded in the first quarter of 2001
         resulted from the integration of former Whitman and former
         PepsiAmericas domestic benefit plans.  The existing domestic salaried
         pension plans will be replaced by an additional 401(K) plan
         contribution.
 
 
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SOURCE PepsiAmericas, Inc.
    MINNEAPOLIS, April 25 /PRNewswire/ -- PepsiAmericas, Inc. (NYSE:   PAS)
 today reported improved results for the first quarter of 2001.  Net income, as
 reported, increased 25.5 percent to $12.8 million, or $0.08 per diluted share,
 compared to $0.07 per share in the prior year first quarter.  Results for the
 first quarter of 2001 included a gain from the curtailment of the existing
 salaried pension plans of $8.9 million and special charges, primarily related
 to organizational changes, of $4.6 million.  These non-recurring items
 increased net income by $2.6 million, or 1 cent per share.
     The company, previously known as Whitman Corp., significantly increased
 the size of its operations through its acquisition of the former PepsiAmericas
 in November 2000.  As such, results for the first quarter of 2001 compared to
 pro forma results for the first quarter of 2000 provide a more meaningful
 comparison.  The pro forma results assume the November 2000 merger between
 Whitman and the former PepsiAmericas occurred on January 1, 2000.  On a
 comparable basis and excluding the impact of the non-recurring items recorded
 in the 2001 first quarter, results for the current quarter were as follows:
 
     -- Total volume increased 1.8 percent.
     -- Average revenue per case in the U.S. increased 2.4 percent.
     -- Worldwide revenue grew 2.6 percent to $705.4 million.
     -- Operating income increased 6.3 percent to $42.5 million.
     -- Earnings before interest, taxes, depreciation and amortization (EBITDA)
        increased 2.3 percent to $93.6 million.
     -- Net income increased 34.2 percent to $10.2 million compared with
        pro forma net income of $7.6 million in the first quarter of 2000.
     -- Earnings per share on a diluted basis were $0.07 compared to
        $0.05 a year ago, up 40 percent.
 
     "PepsiAmericas is off to a good start in the first quarter of fiscal 2001,
 especially given comparison with a strong first quarter a year ago," said
 Robert C. Pohlad, chief executive officer of PepsiAmericas.  "We made progress
 on each of our priorities for 2001, especially improving profitability
 internationally, driving growth in flavored CSD's and non-carbonated beverages
 and maintaining pricing discipline.  We also continued to make progress in the
 merger integration."
     While total worldwide volume on a raw case basis increased 1.8 percent,
 volume in the U.S. was essentially flat, up 0.1 percent.  However, on an
 8-ounce equivalent case basis domestic volume grew 1.5 percent, reflecting the
 mix shift to the 2-liter and 24-ounce packages.  Volume growth was driven by
 the fourth quarter 2000 introduction of Sierra Mist and continued strong
 growth in Aquafina.  Volume in international markets increased 8.8 percent,
 including incremental volume in Trinidad and Tobago, territories acquired in
 December 2000.  Excluding the incremental volume, volume in comparable
 territories increased 5.9 percent.
     Domestic revenue increased 2.5 percent to $614.4 million and revenue in
 the international markets increased 3.6 percent to $91 million.
     PepsiAmericas' international business made progress in the first quarter
 of 2001, with both the Caribbean and Central Europe improving profitability.
 These results were led by the Caribbean, with operating losses reduced by 60
 percent in the first quarter.  "We're pleased that the Caribbean markets
 turned in a positive EBITDA performance in the quarter largely due to
 significant improvement in our business in Puerto Rico," said Mr. Pohlad.
     "We remain committed to achieving our forward-looking growth targets for
 2001," stated Mr. Pohlad.  "For the full year, we continue to expect to
 achieve volume growth in the range of 2 to 3 percent, EBITDA growth of 8 to 10
 percent and earnings per share growth of 18 to 22 percent, with stronger
 comparisons in the second half of the year."
 
     PepsiAmericas is the number-two anchor bottler in the Pepsi system with
 operations in 18 states as well as Puerto Rico, Jamaica, Bahamas, Trinidad and
 Tobago, Poland, Hungary, the Czech Republic and Republic of Slovakia.  In
 total, the company serves a population of more than 117 million people.
 PepsiAmericas manufactures, distributes and markets a broad portfolio of
 Pepsi-Cola, Dr. Pepper and Seven-Up brands.  PepsiCo, Inc. (NYSE:   PEP) holds a
 36.7 percent equity interest in PepsiAmericas.
 
     PepsiAmericas will hold an earnings conference call at 9:00 AM (EDT) on
 April 25, 2001.  To listen live to this discussion with financial analysts,
 please dial 888-886-7046 within the U.S. and 303-205-0044 from outside the
 U.S.  Request the PepsiAmericas conference call.  A playback of the discussion
 will be available for seven days after the call at 800-405-2236 within the US
 and 303-590-3000 from outside the US.  The conference will also be simulcast
 on the web at www.pepsiamericas.com, or www.ccbn.com.
 
     This release contains forward-looking statements of expected future
 developments.  We wish to ensure such statements are accompanied by meaningful
 cautionary statements pursuant to the safe harbor established by the Private
 Securities Litigation Reform Act of 1995.  The forward-looking statements in
 the release refer to the expectations regarding continuing operating
 improvement and other matters.  These forward-looking statements reflect
 management's expectations and are based on currently available data; however,
 actual results are subject to future events and uncertainties, which could
 materially affect actual performance.  Our future performance involves a
 number of risks and uncertainties.  Accordingly, any forward-looking
 statements should be read in conjunction with information about risks and
 uncertainties set forth in the company's Securities and Exchange Commission
 reports, including its annual report and Form 10-K for the year ended December
 30, 2000.
 
 
                                PEPSIAMERICAS, INC.
                          CONDENSED STATEMENTS OF INCOME
                           FOR THE FIRST QUARTER OF 2001
                   COMPARED WITH THE SAME PERIOD OF FISCAL 2000
                (UNAUDITED AND IN MILLIONS, EXCEPT PER SHARE DATA)
 
                                                         First Quarter
 
                                                   As Reported        Pro Forma
                                                 2001        2000        2000
 
      Sales                                     $705.4      $548.9      $687.3
      Cost of goods sold                         428.3       319.7       411.4
           Gross profit                          277.1       229.2       275.9
      Selling, delivery and administrative
       expenses                                  222.3       181.5       223.5
      Amortization expense                        12.3        10.1        12.4
      Special charges                              4.6          --          --
      Gain on pension curtailment                 (8.9)         --          --
           Operating income                       46.8        37.6        40.0
      Interest expense, net                      (24.5)      (20.3)      (25.6)
      Other income, net                            1.5         2.1         0.8
           Income before income taxes             23.8        19.4        15.2
      Income taxes                                11.0         9.2         7.6
 
      Net income                                 $12.8       $10.2        $7.6
 
      EBITDA (exclusive of special charges
       and credits)                              $93.6       $82.8       $91.5
 
      Basic earnings per share:
           On net income                         $0.08       $0.07       $0.05
           Excluding nonrecurring charges
            and credits                           0.07        0.07        0.05
 
           Weighted average shares outstanding   155.8       138.1       157.2
 
      Diluted earnings per share:
           On net income                         $0.08       $0.07       $0.05
           Excluding nonrecurring charges
            and credits                           0.07        0.07        0.05
 
           Weighted average shares outstanding   156.8       138.5       158.2
 
 
                                PEPSIAMERICAS, INC.
                             CONDENSED BALANCE SHEETS
                            (UNAUDITED AND IN MILLIONS)
 
                                                 First Quarter      Fiscal Year
                                                       2001              2000
 
      Cash                                            $50.0             $51.2
      Receivables                                     194.2             203.0
      Inventory                                       169.0             164.0
      Other current assets                             74.2              58.8
         Total current assets                         487.4             477.0
      Net property                                  1,000.0           1,004.7
      Intangible assets                             1,735.6           1,740.7
      Other assets                                    117.2             113.2
 
         Total assets                              $3,340.2          $3,335.6
 
      Short-term debt                                $308.4            $513.3
      Payables                                        206.1             199.1
      Other current liabilities                       145.2             174.6
         Total current liabilities                    659.7             887.0
      Long-term debt                                1,086.5             860.1
      Deferred income taxes                            53.1              47.0
      Other liabilities                                82.0              92.0
 
      Shareholders' equity                          1,458.9           1,449.5
 
          Total liabilities and
           shareholders' equity                    $3,340.2          $3,335.6
 
 
                          PEPSIAMERICAS, INC.
                   CONDENSED STATEMENTS OF CASH FLOWS
                     FOR THE FIRST QUARTER OF 2001
              COMPARED WITH THE SAME PERIOD OF FISCAL 2000
                      (UNAUDITED AND IN MILLIONS)
 
                                                         First Quarter
 
                                                  As Reported        Pro Forma
                                                2001          2000       2000
 
      Cash Flows from Operating Activities:
      Income from continuing operations         $12.8         $10.2      $7.6
      Adjustments to reconcile to net cash
       provided by operating activities of
         continuing operations:
         Depreciation and amortization           50.0          43.1      50.6
         Gain on pension curtailment             (8.9)           --        --
         Gain on sale of franchises               -            (1.4)       --
         Special charges                          4.6            --        --
         Special charges reserve spending       (11.8)        (10.0)    (10.0)
         Other                                    2.4          (0.9)      0.6
      Changes in assets and liabilities,
       exclusive of acquisitions and divestitures:
         Net change in primary working capital    1.4          13.9      18.0
         Net change in other assets and
          liabilities                           (31.4)        (16.2)    (24.8)
      Net cash provided by operating
       activities of continuing operations       19.1          38.7      42.0
 
      Cash Flows from Investing Activities:
      Capital investments, net                  (37.7)        (34.3)    (46.6)
      Acquisitions and divestitures, net         (5.1)          2.5        --
      Proceeds from sales of investments          1.6            --        --
      Net cash used in investing activities     (41.2)        (31.8)    (46.6)
 
      Cash Flows from Financing Activities:
      Proceeds from issuance of long-term
       debt                                     352.7            --        --
      Repayment of long-term debt              (127.7)         (0.3)       --
      Net borrowings of short-term debt        (205.2)         25.7      40.2
      Issuance of common stock                    6.6           1.0       1.0
      Treasury stock purchases                    -           (31.5)    (31.5)
      Net cash provided by (used in)
       financing activities                      26.4          (5.1)      9.7
 
      Net Cash Used in Discontinued Operations   (5.3)         (4.1)     (4.1)
      Effects of Exchange Rate Changes on
       Cash and Equivalents                      (0.2)         (0.3)     (0.3)
      Change in Cash and Equivalents             (1.2)         (2.6)      0.7
      Cash and Equivalents at Beginning of Year  51.2         114.5      85.0
      Cash and Equivalents at End of Quarter    $50.0        $111.9     $85.7
 
 
      Notes to Condensed Consolidated Financial Statements:
 
      1. The Company's fiscal year consists of 52 or 53 weeks ending on the
         Saturday closest to December 31.  The Company's 2001 and 2000 first
         quarters ended March 31, 2001 and April 1, 2000, respectively, and are
         each based on thirteen weeks.
 
      2. The pro forma and financial information presented on the Condensed
         Statements of Income and Cash Flows assumes the acquisition of the
         former PepsiAmericas occurred at the beginning of 2000.  Interest
         expense has been adjusted to assume the interest rates in effect in
         both years for the Company would have been in effect for debt assumed
         from the former PepsiAmericas business units.
 
      3. The pension curtailment gain recorded in the first quarter of 2001
         resulted from the integration of former Whitman and former
         PepsiAmericas domestic benefit plans.  The existing domestic salaried
         pension plans will be replaced by an additional 401(K) plan
         contribution.
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X58838315
 
 SOURCE  PepsiAmericas, Inc.