Tupperware Brands Reports Fourth Quarter 2011 Results; Increases Quarterly Dividend 20% to 36 Cents Per Share

13 Weeks Ending

14 Weeks

52 Weeks Ending

53 Weeks

March 31, 2012

Ended

Dec 29, 2012

Ended

Low

High

April 2, 2011

Low

High

Dec 31, 2011

USD Sales Growth vs Prior Year

(3)

%

(1)

%

14

%

2

%

4

%

12

%

GAAP EPS

$

0.92

$

0.97

$

0.88

$

4.85

$

4.95

$

3.55

GAAP Pre-Tax ROS

11.3

%

11.7

%

11.6

%

13.7

%

13.8

%

11.4

%

Local Currency+ Sales Growth vs Prior Year

1

%

3

%

10

%

5

%

7

%

9

%

EPS Excluding Items*

$

0.94

$

0.99

$

0.90

$

5.00

$

5.10

$

4.45

Pre-Tax ROS Excluding Items

11.6

%

12.0

%

12.0

%

14.2

%

14.2

%

13.9

%

FX Impact on EPS Comparison

($0.07)

($0.07)

$

(0.22)

$

(0.22)

TUPPERWARE BRANDS CORPORATION

FOURTH QUARTER SALES STATISTICS**

(UNAUDITED)

All Units

Reported
Sales
Inc/(Dec)%

Restated+
Sales
Inc/(Dec)%

Active
Sales
Force

Inc/(Dec)
vs. 4Q '10
%

Total
Sales
Force

Inc/(Dec)
vs. Dec. 25, 2010
%

Europe (1)

(2)

3

94,672

(13)

573,066

(11)

Asia Pacific

13

13

231,896

13

921,271

9

TW North America

-

4

106,748

9

322,988

9

Beauty North America

(15)

(8)

330,678

(2)

571,735

-

South America

35

40

101,206

(3)

272,667

12

All Units Total

3

7

865,200

1

2,661,727

2

Emerging Market Units

Europe (1)

(12)

(2)

58,942

(17)

398,222

(16)

Asia Pacific

27

29

197,520

17

808,375

19

TW North America

4

16

79,499

12

237,364

12

Beauty North America (2)

(17)

(7)

295,702

(1)

480,149

1

South America (3)

35

40

101,206

(3)

272,667

12

Total Emerging Market Units (3)

8

16

732,869

3

2,196,777

5

Established Market Units

Europe (4)

3

5

35,730

(4)

174,844

4

Asia Pacific (5)

(13)

(17)

34,376

(3)

112,896

(32)

TW North America

(4)

(3)

27,249

1

85,624

2

Beauty North America (6)

(10)

(10)

34,976

(14)

91,586

(3)

South America

-

-

-

-

-

-

Total Established Market Units

(3)

(3)

132,331

(6)

464,950

(9)

** Sales force statistics as collected by the Company and, in some cases, provided by distributors and sales force. The Company classifies Established Market Units as those operating in Western Europe, including Scandinavia, the United States, Canada, Australia and Japan and its remaining units as Emerging Market Units.  Active Sales Force is defined as the average number of orders received per ordering cycle in each unit over the course of the quarter, and Total Sales Force is defined as the number of sales force members of the units as of the end of the quarter.
+ Local currency changes are measured by comparing current year results with those of the prior year translated at the current year's foreign exchange rates.
(1) During the fourth quarter of 2011, the Company sold its Swissgarde unit in South Africa.  This had a negative 7 percentage point impact on the total sales force size comparison for Europe overall and Europe's emerging markets, and a 2 percentage point negative impact on the year-over-year total sales force size comparison for the whole company and all the emerging markets as a group. Additionally, stricter standards for being included in the total sales force number have been used in 2011 than in 2010 in the Tupperware South Africa business.
(2) Fuller Mexico had a 19 percent total sales force size advantage at the end of the third quarter of 2011 that resulted from aggressive sales force recruiting campaigns in the second and third quarters.  Many of these recruits were less productive than is normally the case, which resulted in a decrease to a 1 percent total sales force size advantage at the end of the fourth quarter and 1 percent less active sellers during the quarter.
(3 ) The lower number of active sellers reflected performance in Argentina, where the order size has increased significantly in line with the Company's strategy to emphasize the sale of housewares products that have higher average price points than beauty and personal care products.  This unit has a much higher proportion of South America's active sellers than sales.
(4) Under a "pay for performance" strategy implemented in Italy, qualification standards under various programs have been raised significantly,
which has resulted in a much smaller but much more productive number of active sellers.
(5) The Company has changed its business model in its Tupperware Japan business over the last couple of years in an effort to attract and motivate a higher proportion of active rather than passive sellers.  As part of this change, it has raised the standards required to be included in the unit's total sales force, and this had a meaningfully negative impact on the number of total sellers beginning during the first quarter of 2011.
(6) There were a lower number of active sellers in BeautiControl as a result of a poor response to promotional activities, as well as the timing of promotional programs.

TUPPERWARE BRANDS CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

13 Weeks Ended

13 Weeks Ended

53 Weeks Ended

52 Weeks Ended

Dec 31,

Dec 25,

Dec 31,

Dec 25,

(In millions, except per share data)

2011

2010

2011

2010

Net sales

$                  676.1

$                  655.0

$               2,585.0

$               2,300.4

Cost of products sold

226.3

223.6

862.5

766.2

Gross margin

449.8

431.4

1,722.5

1,534.2

Delivery, sales and administrative expense

327.7

306.4

1,340.0

1,193.1

Re-engineering and impairment charges

3.2

3.6

7.9

7.6

Impairment of goodwill and intangible assets

-

4.3

36.1

4.3

Gains on disposal of assets

3.1

-

3.8

0.2

Operating income

122.0

117.1

342.3

329.4

Interest income

0.7

0.8

3.2

2.5

Interest expense

7.9

7.7

49.0

29.3

Other expense

0.6

0.3

1.2

2.9

Income before income taxes

114.2

109.9

295.3

299.7

Provision for income taxes

27.3

29.2

77.0

74.1

Net income

$                    86.9

$                    80.7

$                  218.3

$                  225.6

Net income per common share:

Basic earnings per share

$                    1.53

$                    1.29

$                    3.63

$                    3.60

Diluted earnings per share

$                    1.50

$                    1.26

$                    3.55

$                    3.53

TUPPERWARE BRANDS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(Amounts in millions, except per share)

13 Weeks

13 Weeks

53 Weeks

52 Weeks

Ended

Ended

Reported

Restated

Foreign

Ended

Ended

Reported

Restated

Foreign

Dec 31,

Dec 25,

%

%

Exchange

Dec 31,

Dec 25,

%

%

Exchange

2011

2010

Inc (Dec)

Inc (Dec)

Impact *

2011

2010

Inc (Dec)

Inc (Dec)

Impact *

Net Sales:

Europe

$                       225.1

$                                229.6

(2)

3

$            (10.4)

$                       848.9

$                       796.0

7

3

$                25.3

Asia Pacific  

198.1

175.0

13

13

0.9

714.0

584.0

22

15

34.9

TW North America

84.9

85.3

-

4

(3.5)

352.0

331.5

6

5

3.2

Beauty North America

92.5

109.3

(15)

(8)

(8.6)

395.5

406.0

(3)

(3)

3.0

South America

75.5

55.8

35

40

(2.1)

274.6

182.9

50

48

2.7

$                       676.1

$                                655.0

3

7

$            (23.7)

$                    2,585.0

$                    2,300.4

12

9

$                69.1

Segment profit:

Europe

$                         50.1

$                                  57.5

(13)

(9)

$              (2.6)

$                       148.3

$                       147.1

1

(1)

$                  3.2

Asia Pacific  

46.8

38.6

21

22

(0.3)

147.0

111.8

31

26

5.2

TW North America

16.1

14.7

9

16

(0.8)

58.4

52.8

11

9

0.8

Beauty North America

10.6

19.5

(45)

(39)

(2.2)

37.9

58.9

(36)

(36)

0.3

South America

15.3

9.9

56

62

(0.3)

48.6

24.4

99

92

0.9

138.9

140.2

(1)

4

(6.2)

440.2

395.0

11

9

10.4

Unallocated expenses  

(17.4)

(15.5)

12

6

(0.8)

(58.9)

(56.8)

4

1

(1.8)

Gains on disposal of assets

3.1

-

+

+

-

3.8

0.2

+

+

-

Re-engineering and impairment charges

(3.2)

(3.6)

(9)

(9)

-

(7.9)

(7.6)

4

4

-

Impairment of goodwill and intangible assets

-

(4.3)

-

-

-

(36.1)

(4.3)

+

+

-

Interest expense, net

(7.2)

(6.9)

4

4

-

(45.8)

(26.8)

71

71

-

Income before taxes

114.2

109.9

4

11

(7.0)

295.3

299.7

(1)

(4)

8.6

Provision for income taxes

27.3

29.2

(7)

(1)

(1.6)

77.0

74.1

4

1

2.1

Net income

$                         86.9

$                                  80.7

8

15

$              (5.4)

$                       218.3

$                       225.6

(3)

(6)

$                  6.5

Net income per common share (diluted)

$                         1.50

$                                  1.26

19

27

(0.07)

$                         3.55

$                         3.53

1

(2)

0.11

Weighted average number of diluted shares

58.1

63.8

61.4

63.8

*  2011 actual compared with 2010 translated at 2011 foreign exchange rates.

TUPPERWARE BRANDS CORPORATION

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

(In millions except per share data)

13 Weeks Ended Dec 31, 2011

13 Weeks Ended Dec 25, 2010

Reported

Adj's

Excl Adj's

Reported

Adj's

Excl Adj's

Segment profit

Europe

$    50.1

$   0.1

a

$     50.2

$    57.5

$   0.2

a

$     57.7

Asia Pacific

46.8

0.8

a

47.6

38.6

0.4

a

39.0

TW North America

16.1

-

16.1

14.7

-

14.7

Beauty North America

10.6

0.3

a

10.9

19.5

0.4

a

19.9

South America

15.3

-

15.3

9.9

-

9.9

138.9

1.2

140.1

140.2

1.0

141.2

Unallocated expenses

(17.4)

-

(17.4)

(15.5)

-

(15.5)

Gains on disposal of assets

3.1

(3.1)

b

-

-

-

-

Re-engineering and impairment charges

(3.2)

3.2

c

-

(3.6)

3.6

c

-

Impairment of goodwill and intangible assets

-

-

-

(4.3)

4.3

d

-

Interest expense, net

(7.2)

-

(7.2)

(6.9)

-

(6.9)

Income before taxes

114.2

1.3

115.5

109.9

8.9

118.8

Provision for income taxes

27.3

1.1

f

28.4

29.2

1.1

f

30.3

Net income

$    86.9

$   0.2

$     87.1

$    80.7

$   7.8

$     88.5

Net income per common share (diluted)

$    1.50

$     -

$     1.50

$    1.26

$ 0.12

$     1.38

53 Weeks Ended Dec 31, 2011

52 Weeks Ended Dec 25, 2010

Reported

Adj's

Excl Adj's

Reported

Adj's

Excl Adj's

Segment profit

Europe

$  148.3

$   0.5

a

$   148.8

$  147.1

$   0.7

a

$   147.8

Asia Pacific

147.0

2.9

a

149.9

111.8

1.5

a

113.3

TW North America

58.4

-

58.4

52.8

-

52.8

Beauty North America

37.9

1.1

a

39.0

58.9

1.6

a

60.5

South America

48.6

0.1

a

48.7

24.4

0.1

a

24.5

440.2

4.6

444.8

395.0

3.9

398.9

Unallocated expenses

(58.9)

-

(58.9)

(56.8)

-

(56.8)

Gains on disposal of assets

3.8

(3.8)

b

-

0.2

(0.2)

b

-

Re-engineering and impairment charges

(7.9)

7.9

c

-

(7.6)

7.6

c

-

Impairment of goodwill and intangible assets

(36.1)

36.1

d

-

(4.3)

4.3

d

-

Interest expense, net

(45.8)

19.8

e

(26.0)

(26.8)

-

(26.8)

Income before taxes

295.3

64.6

359.9

299.7

15.6

315.3

Provision for income taxes

77.0

9.6

f

86.6

74.1

3.3

f

77.4

Net income

$  218.3

$ 55.0

$   273.3

$  225.6

$ 12.3

$   237.9

Net income per common share (diluted)

$    3.55

$ 0.90

$     4.45

$    3.53

$ 0.19

$     3.72

(a)  Amortization of intangibles of acquired beauty units as well as inventory obsolescence of $1.7 million related to the integration of our two businesses in Malaysia., $0.5 million of which was in the fourth quarter of 2011.
(b)  Gains on disposal of assets of $3.8 million in year-to-date 2011 is from insurance proceeds of $3.1 million, which were received in the fourth quarter, related to a flood in Australia,  as well as  $0.7 million related to the sale of land held for development near the Company's Orlando, FL headquarters.   Gain on disposal of assets of $0.2 million in 2010 is related to the sale of property in Australia, which occurred in the third quarter.
(c)  Re-engineering and impairment charges of $7.9 million in 2011 are primarily for severance costs incurred to reduce headcount in the Company's Argentina, Australia, BeautiControl, France, Greece, Japan, Malaysia, Mexico, Spain, South Carolina and United Kingdom operations, of which $3.2 million was incurred in the fourth quarter.  Charges of $7.6 million in 2010  included $1.1 million related to new plants in India and China and relocation expenses in Japan and Belgium Mfg, and $6.5 million for severance costs incurred to reduce headcount in the Company's Argentina,  Australia, BeautiControl, France, Greece, Japan and Mexico operations , of which $3.6 million was incurred in the fourth quarter.
(d)  Upon review in the third quarter of 2011, the purchase accounting intangibles of Nutrimetics were deemed to be impaired, resulting in a non-cash charge of $36.1 million.  In the fourth quarter of 2010, the decision was made to cease operating separately the Swissgarde business in South Africa, which impaired $4.3 million of intangible assets.  
(e)  The $19.8 adjustment in  2011 is related to the impairment of interest rate swaps and the write off of deferred debt costs in conjunction with the early extinguishment of debt.
(f)  Provision for income taxes represents the net tax impact of adjusted amounts.
See the description of non-GAAP financial measures in the attached press release.

TUPPERWARE BRANDS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

53 Weeks Ended

52 Weeks Ended

December 31,

December 25,

(In millions)

2011

2010

OPERATING ACTIVITIES

Net cash provided by operating activities

$                            274.7

$                            299.5

INVESTING ACTIVITIES

Capital expenditures

(73.9)

(56.1)

Proceeds from disposal of property, plant & equipment

5.0

10.0

Net cash used in investing activities

(68.9)

(46.1)

FINANCING ACTIVITIES

Dividend payments to shareholders

(73.8)

(63.2)

Repurchase of common stock

(428.6)

(62.5)

Net proceeds from issuance of senior notes

393.3

-

Repayment of long-term debt and capital lease obligations

(407.4)

(2.2)

Net change in short-term debt

193.5

0.2

Debt issuance costs

(3.0)

-

Proceeds from exercise of stock options

16.1

16.8

Excess tax benefits from share-based payment arrangements

9.0

7.0

Net cash used in financing activities

(300.9)

(103.9)

Effect of exchange rate changes on cash and

cash equivalents

(15.4)

(13.2)

Net change in cash and cash equivalents

(110.5)

136.3

Cash and cash equivalents at beginning of year

248.7

112.4

Cash and cash equivalents at end of year

$                            138.2

$                            248.7

TUPPERWARE BRANDS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

Dec. 31,

Dec. 25,

(In millions)

2011

2010

Assets

Cash and cash equivalents

$

138.2

$

248.7

Other current assets

629.7

600.5

  Total current assets

767.9

849.2

Property, plant and equipment, net

273.1

258.0

Other assets

843.1

908.6

  Total assets

$

1,884.1

$

2,015.8

Liabilities and Shareholders' Equity

Short-term borrowings and current  

  portion of long-term debt

$

195.4

$

1.9

Accounts payable and other current liabilities

530.3

498.5

  Total current liabilities

725.7

500.4

Long-term debt

415.5

426.8

Other liabilities

242.7

298.8

  Total shareholders' equity

500.2

789.8

  Total liabilities and shareholders' equity

$

1,884.1

$

2,015.8

Debt to Adjusted EBITDA* Ratio for the four quarters ended December 31, 2011:  1.37 times.

*Adjusted EBITDA as defined in the Company's credit agreement under Consolidated EBITDA.  See calculation attached to this release.  

TUPPERWARE BRANDS CORPORATION

NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE

February 1, 2012

($ in millions, except per share amounts)

First Quarter

First Quarter

2011 Actual

2012 Outlook

Range

Low

High

Income before income taxes

$             74.0

$ 70.0

$ 73.7

   Income tax

$             18.2

$ 17.3

$ 18.3

        Effective Rate

25%

25%

25%

   Net Income (GAAP)

$             55.8

$ 52.7

$ 55.4

        % change from prior year

-6%

-1%

   Adjustments(1):

       Re-engineering and other restructuring costs

$               1.4

$   1.5

$   1.5

       Acquired intangible asset amortization

0.7

0.5

0.5

       Income tax (2)

(0.8)

(0.7)

(0.7)

    Net Income (adjusted)

$             57.1

$ 54.0

$ 56.7

      Exchange rate impact (3)

(4.3)

-

-

    Net Income (adjusted and 2011 restated for currency changes)

$             52.8

$ 54.0

$ 56.7

        % change from prior year

2%

7%

Net income (GAAP) per common share (diluted)

$             0.88

$ 0.92

$ 0.97

        % change from prior year

5%

10%

Net Income (adjusted) per common share (diluted)

$             0.90

$ 0.94

$ 0.99

Net Income (adjusted & restated) per common share (diluted)

$             0.83

$ 0.94

$ 0.99

        % change from prior year

13%

19%

Average number of diluted shares (millions)

63.5

57.2

57.2

(1)  Refer to Non-GAAP Financial Measures section of attached release for description of the general nature of adjustment items

(2)  Represents income tax impact of adjustments

(3)  Difference between 2011 actual and 2011 restated at current currency exchange rates

TUPPERWARE BRANDS CORPORATION

NON-GAAP FINANCIAL MEASURES OUTLOOK RECONCILIATION SCHEDULE

February 1, 2012