Coca-Cola Bottling Co. Consolidated announced it earned $11.2 million, or basic net income per share of $1.21, on net sales of $429.0 million for the second quarter of 2013, compared to net income of $10.7 million, or basic net income per share of $1.16, on net sales of $430.7 million for the second quarter of 2012. The results for the second quarter of 2013 included a $0.1 million increase in income tax expense due to the recording of a valuation allowance for certain deferred tax assets and other income tax changes. The results for the second quarter of 2012 included a $0.4 million increase in income tax expense due to the recording of a valuation allowance for certain deferred tax assets and other income tax changes.
On a comparable basis, the company earned $11.3 million in the second quarter of 2013, or comparable basic net income per share of $1.22, versus $11.1 million in the second quarter of 2012, or comparable basic net income per share of $1.20.
The company earned $16.1 million, or basic net income per share of $1.74, on net sales of $812.5 million for the first six months of 2013, compared to net income of $15.3 million, or basic net income per share of $1.66, on net sales of $807.9 million for the first six months of 2012. The results for the first six months of 2013 included $0.3 million of after-tax losses ($0.5 million on a pre-tax basis) due to mark-to-market adjustments on commodity hedges and a $0.3 million net decrease in income tax expense due to certain favorable tax items associated with the American Taxpayer Relief Act (H.R.8) enacted on Jan. 2, 2013 and other income tax changes. The results for the first six months of 2012 included a $1.3 million net increase in income tax expense due to the recording of a valuation allowance for certain deferred tax assets and other income tax changes.
On a comparable basis, the company earned $16.1 million in the first six months of 2013, or comparable basic net income per share of $1.74, versus $16.6 million in the first six months of 2012, or comparable basic net income per share of $1.80.
J. Frank Harrison, III, Chairman and CEO, said in a prepared statement, “We are pleased to report that despite a very challenging environment for virtually all beverage categories, our earnings per share for the second quarter grew from the prior year. The company has, and will continue to have, a long-term focus. The benefits of our commitment to reducing our debt over the past decade and strengthening the company’s financial position were clearly evident in the second quarter and first half of 2013 as lower interest cost helped to mitigate softer than expected operating results. We will continue to focus our efforts on driving value for our shareholders. As part of our long-term strategy, we continue to work diligently on the potential acquisition of new territories in Eastern Tennessee and Kentucky from The Coca-Cola Co. Our team is making good progress and we continue to be excited about the possibility of bringing these employees and new markets into the company in late 2014.”
Hank Flint, president and COO, added, “The trends we experienced in the second quarter were similar to those in the first quarter with softer than expected volume and revenue. We continued to experience much cooler and wetter weather compared to recent historical patterns, which adversely impacted some of our most important selling periods including the Memorial Day holiday and early summer. Lower than expected revenue was partially offset by lower than projected increases in key raw material components of our cost of sales. Additionally, our SD&A [selling, general and administrative] expenses were flat for both the second quarter and first half of 2013 as we continue to focus on operating efficiencies. We are prepared for a more favorable selling environment in the second half of 2013, which should allow us to grow revenue and earnings.”
