MEAD JOHN : Mead Johnson Reports Record 2010 Results; Forecasts Continued Strong Sales Growth and Provides Initial 2011 EPS Guidance
01/27/2011| 07:35am US/Eastern
Recommend:
Mead Johnson Nutrition Company (NYSE: MJN) announced today its financial
results for the fourth quarter and year ended Dec. 31, 2010.
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GAAP net earnings rose to $2.20 per diluted share for 2010, up from
$1.99 per diluted share in 2009.
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Non-GAAP (1) net earnings for 2010 increased to
$2.42 per diluted share, up from $2.23 per diluted share a year
earlier.
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Sales for 2010 were up 11 percent to $3,141.6 million from $2,826.5
million in 2009, benefiting by 2 percent from foreign exchange.
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GAAP net earnings totaled $0.48 per diluted share for the fourth
quarter of 2010, compared with $0.31 per diluted share for the
year-ago fourth quarter.
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Non-GAAP net earnings increased to $0.57 per diluted
share for the fourth quarter, up from $0.48 per diluted share in 2009.
The increase was driven by strong growth in emerging markets and
market share gains in the United States, partially offset by higher
commodity costs, demand-generation investments and a shared service
cost overlap. Earnings also benefited from lower interest expense and
a reduced effective tax rate.
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Sales for the fourth quarter of 2010 were up 13 percent to $803.7
million from $714.4 million a year ago with continued double-digit
growth reported in Asia and Latin America and low-single-digit growth
for North America and Europe. Foreign exchange contributed 2 percent
to sales growth in the quarter.
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The company provided initial full-year 2011 non-GAAP EPS guidance of
$2.55 to $2.65. Including specified items estimated at $0.27 per
share, GAAP EPS guidance is $2.28 to $2.38.
(1)See ?Non-GAAP Financial Measures? and the
reconciliation of GAAP and non-GAAP results included in this release.
?We concluded the year on a strong note reporting record sales and
earnings for 2010,? said Chief Executive Officer Stephen W. Golsby. ?The
year unfolded as expected with Asia and Latin America continuing to
deliver double-digit sales growth and the North America/Europe segment
growing in the low single-digits. In order to drive sustainable growth,
we met our commitment to increase investment in demand-generation
activities and our research and development capabilities. During 2010,
we introduced several important product and packaging innovations that
will give us momentum this year. Other accomplishments of note include
geographic expansion in China; investments in Brazil, Russia, India and
the Middle East; a record level of productivity, which helped offset the
impact of higher commodity costs; and significant progress on our
transition to a new shared service provider and our own IT platform. Our
strong performance is evidence of the effectiveness of our growth
strategy, and we expect that 2011 will be another successful year for
Mead Johnson.?
Fourth Quarter Results
Net sales for the fourth quarter of 2010 totaled $803.7 million, up 13
percent from $714.4 million a year earlier. Sales benefited 7 percent
from volume, 4 percent from price and 2 percent from foreign exchange.
Earnings before interest and income taxes (EBIT) totaled $146.6 million,
up from $113.0 million in 2009. EBIT in the fourth quarter of 2010 was
adversely affected by higher commodity and shared service overlap costs.
The fourth quarter of 2010 includes $28.1 million of specified items
largely relating to IT separation costs. The fourth quarter of 2009
included $54.2 million of specified items consisting of legal,
severance, IT separation and IPO-related costs.
Net earnings attributable to shareholders for the fourth quarter of 2010
totaled $99.6 million, or $0.48 per diluted share, compared with $64.0
million, or $0.31 per diluted share, for the prior-year period. Results
for 2010 benefited from lower interest expense and a lower effective tax
rate compared with the year-ago fourth quarter.
On a non-GAAP basis, which excludes the specified items noted above, net
earnings attributable to shareholders totaled $116.5 million, or $0.57
per diluted share, for the fourth quarter of 2010, compared with net
earnings attributable to shareholders of $99.4 million, or $0.48 per
diluted share, for the same quarter a year earlier.
Fourth Quarter Segment Results
The Asia/Latin America segment had net sales of $509.7 million for the
fourth quarter of 2010, up 20 percent from $425.4 million in 2009. Sales
benefited 10 percent from volume, 7 percent from price and 3 percent
from foreign exchange. EBIT totaled $154.1 million, up 11 percent
compared with $138.5 million for the year-ago fourth quarter. Segment
sales were driven by particularly strong performance in China and Hong
Kong, as well as in Latin America. The increase in EBIT was due to
higher sales, partially offset by higher commodity costs and
demand-generation investments along with sales force additions,
primarily in China and Brazil.
The North America/Europe segment reported net sales of $294.0 million
for the fourth quarter of 2010, up 2 percent from $289.0 million in
2009, all driven by volume. The segment benefited from an increase in
sales due to share gains driven by new products and a competitor's
temporary product recall in the United States. EBIT totaled $85.0
million compared with $81.3 million in the fourth quarter a year ago.
Full-Year 2010 Results
For the year ended Dec. 31, 2010, net sales totaled $3,141.6 million, up
11 percent from $2,826.5 million for 2009. Sales benefited 5 percent
from volume, 4 percent from price and 2 percent from foreign exchange.
EBIT increased to $682.9 million, up from $679.6 million a year earlier.
Net earnings attributable to shareholders for 2010 totaled $452.7
million, up 13 percent from $399.6 million in 2009. The year benefited
from strong sales growth, lower interest expense and a reduced effective
tax rate, which were largely offset by continued investment in
demand-generation activities, higher commodity costs, the impact of the
January 2010 devaluation of the Venezuela bolivar and the shared service
cost overlap. Results for 2010 include $71.4 million of specified items,
primarily IT separation costs. Results for 2009 included $81.1 million
of specified items, consisting of IPO-related, severance, IT separation
and legal costs and settlements, as well as a gain on an asset sale.
Earnings per diluted share for 2010 were $2.20 compared with $1.99 in
2009.
On a non-GAAP basis, which excludes the above-mentioned specified items,
net earnings attributable to shareholders totaled $498.2 million, or
$2.42 per diluted share, in 2010, compared with $456.3 million, or $2.23
per diluted share, in 2009.
Outlook for 2011
?As we look ahead, we expect to report another year of solid sales and
earnings growth,? Mr. Golsby said. ?We are initiating 2011 non-GAAP EPS
guidance in the range of $2.55 to $2.65, up from $2.42 per share in
2010.?
Key assumptions underlying non-GAAP guidance include a net sales
increase of 7 percent to 8 percent, excluding the effect of foreign
exchange; higher raw material and packaging costs, offset by continued
productivity gains and pricing; increasing investments in
demand-generation activities and continued expansion in developing
markets; an approximately $15 million increase in non-cash compensation
expense for performance-based equity awards; approximately $10 million
of incremental depreciation and amortization and an effective tax rate
between 28 percent and 29 percent.
Conference Call Scheduled
The company will host a conference call at 8:30 a.m. CST today during
which company executives will review fourth quarter financial results
and respond to questions from analysts and investors. The call will be
broadcast over the Internet at meadjohnson.com.
To listen to the call, go to the Web site at least 15 minutes before the
call and click on the Investors tab. Security analysts and investors
wishing to participate by telephone should call 1-866-700-0133, pass
code: Mead Johnson. Callers outside of North America should call
+1-617-213-8831 to be connected. A replay of the conference call will be
available through midnight Thursday, Feb. 3, 2011, by calling
1-888-286-8010 or outside of North America by calling +1-617-801-6888,
pass code: 97740224. The replay will also be available at meadjohnson.com.
Forward-Looking Statements
Certain statements in this news release are forward looking as defined
in the Private Securities Litigation Reform Act of 1995. These
statements, which are identified by words such as ?expects,? ?intends?
and ?believes,? involve certain risks, uncertainties and assumptions
that may cause actual results to differ materially from expectations as
of the date of this news release. These risks include, but are not
limited to: (1) the ability to sustain brand strength, particularly the
Enfa family of brands; (2) the effect on the company's reputation of
real or perceived quality issues; (3) the adverse effect of commodity
price increases; (4) increased competition from branded, private label,
store and economy-branded products; (5) the effect of an economic
downturn on consumers' purchasing behavior and customers' ability to pay
for product; (6) inventory reductions by customers; (7) the adverse
effect of changes in foreign currency exchange rates; (8) legislative,
regulatory or judicial action that may adversely affect the company's
ability to advertise its products or maintain product margins; (9) the
possibility of changes in the Women, Infant and Children (WIC) program,
or increases in levels of participation in WIC; (10) business disruption
due to a systems failure during the transition to a stand-alone IT
platform; and (11) the ability to develop and market new, innovative
products. For additional information on these and other factors, see the
risk factors identified in the company's periodic reports, including the
annual report on Form 10-K for 2009, quarterly reports on Form 10-Q and
current reports on Form 8-K, filed with, or furnished to, the Securities
and Exchange Commission, available upon request or at meadjohnson.com.
The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
About Mead Johnson
Mead Johnson, a global leader in pediatric nutrition, develops,
manufactures, markets and distributes more than 70 products in 60
markets worldwide. The company's mission is to nourish the world's
children for the best start in life. The Mead Johnson name has been
associated with science-based pediatric nutrition products for over 100
years. The company's ?Enfa? family of brands, including Enfamil®
infant formula, is the world's leading brand franchise in pediatric
nutrition. For more information, go to meadjohnson.com
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MEAD JOHNSON NUTRITION COMPANY
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CONSOLIDATED STATEMENTS OF EARNINGS
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(Dollars and shares in millions, except per share data)
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(UNAUDITED)
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Three Months Ended December 31,
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Year Ended December 31,
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2010
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2009
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2010
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2009
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NET SALES
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$
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803.7
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$
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714.4
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$
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3,141.6
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$
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2,826.5
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COST OF PRODUCTS SOLD
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302.8
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246.4
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1,149.6
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974.7
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GROSS PROFIT
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500.9
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468.0
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1,992.0
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1,851.8
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EXPENSES:
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SELLING, GENERAL AND ADMINISTRATIVE
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218.5
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183.1
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762.7
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665.3
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ADVERTISING AND PROMOTION
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112.0
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119.2
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438.7
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401.9
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RESEARCH AND DEVELOPMENT
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20.2
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20.6
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78.5
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71.9
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OTHER EXPENSES/(INCOME)?NET
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3.6
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32.1
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29.2
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33.1
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EARNINGS BEFORE INTEREST AND INCOME TAXES
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146.6
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113.0
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682.9
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679.6
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INTEREST EXPENSE?NET
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12.9
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17.3
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48.6
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92.6
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EARNINGS BEFORE INCOME TAXES
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133.7
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95.7
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634.3
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587.0
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PROVISION FOR INCOME TAXES
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32.9
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28.5
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176.1
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176.4
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NET EARNINGS
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100.8
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67.2
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458.2
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410.6
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Less Net Earnings attributable to noncontrolling interests
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1.2
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3.2
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5.5
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11.0
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NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS
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$
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99.6
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$
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64.0
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$
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452.7
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$
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399.6
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Earnings per Share – Basic
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Net Earnings attributable to shareholders
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$
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0.49
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$
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0.31
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$
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2.20
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$
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1.99
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Earnings per Share – Diluted
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Net Earnings attributable to shareholders
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$
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0.48
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$
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0.31
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$
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2.20
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$
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1.99
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Weighted Average Shares
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204.7
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204.5
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204.7
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200.6
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Dividends declared per Share
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$
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0.225
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$
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0.20
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$
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0.90
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$
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0.70
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MEAD JOHNSON NUTRITION COMPANY
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CONSOLIDATED BALANCE SHEETS
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DECEMBER 31, 2010 AND 2009
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(Dollars and shares in millions, except per share data)
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(UNAUDITED)
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December 31,
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2010
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2009
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ASSETS
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CURRENT ASSETS:
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Cash and Cash Equivalents
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$
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595.6
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$
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561.1
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Receivables?net of allowances of $8.3 and $6.2, respectively
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352.0
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317.6
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Note Receivable
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?
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30.0
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Inventories
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356.7
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309.9
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Deferred Income Taxes?net of valuation allowance
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97.9
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89.4
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Income Taxes Receivable
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15.6
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5.6
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Prepaid Expenses and Other Assets
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31.2
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22.5
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Total Current Assets
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1,449.0
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1,336.1
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Property, Plant, and Equipment?net
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550.5
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501.4
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Goodwill
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117.5
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117.5
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Other Intangible Assets?net
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80.3
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50.5
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Deferred Income Taxes?net of valuation allowance
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13.4
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16.0
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Other Assets
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82.4
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48.8
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TOTAL
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$
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2,293.1
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$
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2,070.3
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LIABILITIES AND EQUITY (DEFICIT)
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CURRENT LIABILITIES:
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Short-Term Borrowings
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$
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1.2
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$
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120.0
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Accounts Payable
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365.8
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361.3
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Dividends Payable
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46.3
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41.0
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Accrued Expenses
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208.7
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206.6
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Accrued Rebates and Returns
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278.9
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268.2
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Deferred Income?current
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37.0
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19.9
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Income Taxes?payable and deferred
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38.2
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83.2
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Total Current Liabilities
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976.1
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1,100.2
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Long-Term Debt
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1,532.5
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1,484.9
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Deferred Income?noncurrent
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2.1
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2.8
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Deferred Income Taxes?noncurrent
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42.6
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5.1
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Pension, Post Retirement and Post Employment Liabilities
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71.7
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123.6
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Other Liabilities
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26.4
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18.0
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Total Liabilities
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2,651.4
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2,734.6
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COMMITMENTS AND CONTINGENCIES
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EQUITY (DEFICIT)
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Shareholders' Equity
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Common Stock, $0.01 par value: 4,200 authorized, 204.8 and 204.5
issued, respectively
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2.0
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2.0
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Additional Paid-in (Distributed) Capital
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(775.6
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)
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(797.4
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)
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Retained Earnings
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474.0
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206.1
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Treasury Stock?at cost
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(3.2
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)
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?
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Accumulated Other Comprehensive Income (Loss)
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(64.6
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)
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(85.6
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)
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Total Shareholders' Equity (Deficit)
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(367.4
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(674.9
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Noncontrolling Interests
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9.1
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10.6
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Total Equity (Deficit)
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(358.3
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)
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(664.3
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)
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TOTAL
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$
|
2,293.1
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$
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2,070.3
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MEAD JOHNSON NUTRITION COMPANY
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008
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(Dollars in millions)
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(UNAUDITED)
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December 31,
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2010
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2009
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2008
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net Earnings
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$
|
458.2
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$
|
410.6
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$
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401.0
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Adjustments to Reconcile Net Earnings to Net Cash Provided by
Operating Activities:
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Depreciation and Amortization
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64.7
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|
|
58.9
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|
|
|
52.1
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|
Stock-Based Compensation Expense
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|
|
19.7
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|
|
|
17.7
|
|
|
|
9.2
|
|
|
Deferred Income Tax
|
|
|
19.2
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|
|
(20.5
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)
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6.0
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Gain on Sale of Intangible Assets
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?
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(11.9
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)
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?
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Exchange Loss from Devaluation
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8.5
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?
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?
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Other
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6.9
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1.1
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0.5
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Change in Assets and Liabilities:
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Receivables
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(34.8
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)
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(31.8
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)
|
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|
(0.9
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)
|
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Inventories
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|
|
(40.4
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)
|
|
|
45.9
|
|
|
|
(79.9
|
)
|
|
Accounts Payable
|
|
|
78.6
|
|
|
|
19.3
|
|
|
|
47.0
|
|
|
Accrued Expenses
|
|
|
11.4
|
|
|
|
60.1
|
|
|
|
54.1
|
|
|
Accrued Rebates and Returns
|
|
|
9.8
|
|
|
|
13.7
|
|
|
|
(5.9
|
)
|
|
Income Taxes Payable
|
|
|
(69.5
|
)
|
|
|
37.5
|
|
|
|
4.4
|
|
|
Pension and Other Post Retirement Benefits Contributions
|
|
|
(55.5
|
)
|
|
|
(27.2
|
)
|
|
|
?
|
|
|
Prepaid Expenses and Other Assets
|
|
|
(3.8
|
)
|
|
|
(6.3
|
)
|
|
|
?
|
|
|
Deferred Income
|
|
|
15.6
|
|
|
|
(9.9
|
)
|
|
|
1.9
|
|
|
Other Liabilities
|
|
|
25.6
|
|
|
|
19.4
|
|
|
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
514.2
|
|
|
|
576.6
|
|
|
|
489.0
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Payments for Capital Expenditures
|
|
|
(172.4
|
)
|
|
|
(95.8
|
)
|
|
|
(81.1
|
)
|
|
Proceeds from Sale of Property, Plant and Equipment
|
|
|
3.3
|
|
|
|
2.6
|
|
|
|
1.7
|
|
|
Proceeds from Sale of Intangible Asset
|
|
|
?
|
|
|
|
11.9
|
|
|
|
?
|
|
|
Investment in Other Companies
|
|
|
(5.5
|
)
|
|
|
?
|
|
|
|
?
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in Investing Activities
|
|
|
(174.6
|
)
|
|
|
(81.3
|
)
|
|
|
(79.4
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from Short-term Borrowings
|
|
|
134.7
|
|
|
|
200.0
|
|
|
|
?
|
|
|
Repayments of Short-term Borrowings
|
|
|
(253.5
|
)
|
|
|
(80.0
|
)
|
|
|
?
|
|
|
Payment for Capital Lease Termination
|
|
|
(47.0
|
)
|
|
|
?
|
|
|
|
?
|
|
|
Cash Dividends Paid
|
|
|
(179.6
|
)
|
|
|
(102.3
|
)
|
|
|
?
|
|
|
Issuance of Stock for Stock-Based Compensation
|
|
|
2.1
|
|
|
|
?
|
|
|
|
?
|
|
|
Treasury Stock Purchases
|
|
|
(2.0
|
)
|
|
|
?
|
|
|
|
?
|
|
|
Termination of Interest Rate Swaps
|
|
|
15.6
|
|
|
|
?
|
|
|
|
?
|
|
|
Proceeds from Initial Public Offering, net of offering costs
|
|
|
?
|
|
|
|
782.3
|
|
|
|
?
|
|
|
Repayment of Related Party Debt and Lease
|
|
|
?
|
|
|
|
(2,348.1
|
)
|
|
|
?
|
|
|
Promissory Note from BMS
|
|
|
30.0
|
|
|
|
(30.0
|
)
|
|
|
?
|
|
|
Net Transfers (to) from BMS, excluding non-cash items
|
|
|
?
|
|
|
|
137.7
|
|
|
|
(397.9
|
)
|
|
Long-term Debt Borrowings, net of original issue discount
|
|
|
?
|
|
|
|
1,495.3
|
|
|
|
?
|
|
|
Distributions to Noncontrolling Interests
|
|
|
(6.7
|
)
|
|
|
(5.8
|
)
|
|
|
(11.7
|
)
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by (Used in) Financing Activities
|
|
|
(306.4
|
)
|
|
|
49.1
|
|
|
|
(409.6
|
)
|
|
Effects of Changes in Exchange Rates on Cash and Cash Equivalents
|
|
|
1.3
|
|
|
|
16.7
|
|
|
|
?
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
34.5
|
|
|
|
561.1
|
|
|
|
?
|
|
|
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
|
|
Beginning of Year
|
|
|
561.1
|
|
|
|
?
|
|
|
|
?
|
|
|
|
|
|
|
|
|
|
|
End of Year
|
|
$
|
595.6
|
|
|
$
|
561.1
|
|
|
$
|
?
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
Noncash Financing Activities?Related Party Debt Issuance/(Reduction)
|
|
$
|
?
|
|
|
$
|
(250.0
|
)
|
|
$
|
2,000.0
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
(Dollars in millions)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
% Change Due to
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
|
|
Foreign
|
|
|
|
2010
|
|
2009
|
|
% Change
|
|
Volume
|
|
Price
|
|
Exchange
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia/Latin America
|
|
$
|
509.7
|
|
|
$
|
425.4
|
|
|
20
|
%
|
|
10
|
%
|
|
7
|
%
|
|
3
|
%
|
|
North America/Europe
|
|
|
294.0
|
|
|
|
289.0
|
|
|
2
|
%
|
|
2
|
%
|
|
0
|
%
|
|
0
|
%
|
|
Total
|
|
$
|
803.7
|
|
|
$
|
714.4
|
|
|
13
|
%
|
|
7
|
%
|
|
4
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest and Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia/Latin America
|
|
$
|
154.1
|
|
|
$
|
138.5
|
|
|
11
|
%
|
|
|
|
|
|
|
|
North America/Europe
|
|
|
85.0
|
|
|
|
81.3
|
|
|
5
|
%
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
(92.5
|
)
|
|
|
(106.8
|
)
|
|
-13
|
%
|
|
|
|
|
|
|
|
Total
|
|
$
|
146.6
|
|
|
$
|
113.0
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
(Dollars in millions)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
% Change Due to
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
Foreign
|
|
|
|
2010
|
|
2009
|
|
% Change
|
|
Volume
|
|
Price
|
|
Exchange
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia/Latin America
|
|
$
|
1,927.1
|
|
|
$
|
1,625.5
|
|
|
19
|
%
|
|
10
|
%
|
|
6
|
%
|
|
3
|
%
|
|
North America/Europe
|
|
|
1,214.5
|
|
|
|
1,201.0
|
|
|
1
|
%
|
|
0
|
%
|
|
0
|
%
|
|
1
|
%
|
|
Total
|
|
$
|
3,141.6
|
|
|
$
|
2,826.5
|
|
|
11
|
%
|
|
5
|
%
|
|
4
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest and Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia/Latin America
|
|
$
|
646.1
|
|
|
$
|
577.0
|
|
|
12
|
%
|
|
|
|
|
|
|
|
North America/Europe
|
|
|
357.7
|
|
|
|
391.8
|
|
|
-9
|
%
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
(320.9
|
)
|
|
|
(289.2
|
)
|
|
11
|
%
|
|
|
|
|
|
|
|
Total
|
|
$
|
682.9
|
|
|
$
|
679.6
|
|
|
0
|
%
|
|
|
|
|
|
|
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, including
non-GAAP EBIT, earnings and earnings per share information. The items
included in GAAP measures, but excluded for the purpose of determining
non-GAAP EBIT, earnings and earnings per share, are IT separation,
initial public offering (IPO) and other costs (Specified Items). In
addition, other items include the tax impact on Specified Items, and the
number of shares outstanding in 2009 to reflect the increase in shares
due to the IPO. Non-GAAP EBIT, earnings and earnings per share
information adjusted for these items is an indication of the company's
underlying operating results and intended to enhance an investor's
overall understanding of the company's financial performance. In
addition, this information is among the primary indicators the company
uses as a basis for evaluating company performance, setting incentive
compensation targets, and planning and forecasting of future periods.
This information is not intended to be considered in isolation or as a
substitute for financial measures prepared in accordance with GAAP.
Tables that reconcile GAAP to non-GAAP disclosure follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|
FOR THE THREE MONTHS ENDED DECEMBER 31, 2010 and 2009
|
|
(Dollars in millions, except per share data)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest
and Income Taxes
|
|
|
|
Net Earnings attributable
to shareholders
|
|
|
|
Earnings per common
share-Diluted
|
|
|
2010
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
GAAP results
|
$
|
146.6
|
|
$
|
113.0
|
|
|
|
$
|
99.6
|
|
|
$
|
64.0
|
|
|
|
|
$
|
0.48
|
|
|
$
|
0.31
|
|
|
Specified Items:(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IT and other separation costs(2)
|
|
23.2
|
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance and other costs(3)
|
|
0.3
|
|
|
13.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal, settlements and related costs(2,3)
|
|
4.6
|
|
|
22.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPO-related costs(2)
|
|
-
|
|
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specified Items before income taxes
|
|
28.1
|
|
|
54.2
|
|
|
|
|
28.1
|
|
|
|
54.2
|
|
|
|
|
|
0.14
|
|
|
|
0.26
|
|
|
Income tax impact on items above
|
|
|
|
|
|
|
|
(10.3
|
)
|
|
|
(18.8
|
)
|
|
|
|
|
(0.05
|
)
|
|
|
(0.09
|
)
|
|
Write-off of deferred tax asset related to BMS stock options
|
|
|
|
|
|
|
|
(0.9
|
)
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Non-GAAP results
|
$
|
174.7
|
|
$
|
167.2
|
|
|
|
$
|
116.5
|
|
|
$
|
99.4
|
|
|
|
|
|
0.57
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)All Specified Items are included in the
Corporate and Other segment
|
|
(2)Included in Selling, General and
Administrative expenses
|
|
(3)Included in Other Expenses/(Income)-net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEAD JOHNSON NUTRITION COMPANY
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|
FOR THE YEAR ENDED DECEMBER 31, 2010 and 2009
|
|
(Dollars in millions, except per share data)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest
and Income Taxes
|
|
Net Earnings attributable
to shareholders
|
|
Earnings per common
share-Diluted
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
GAAP results
|
|
$
|
682.9
|
|
$
|
679.6
|
|
|
$
|
452.7
|
|
|
$
|
399.6
|
|
|
$
|
2.20
|
|
|
$
|
1.99
|
|
|
Specified Items:(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IT and other separation costs(2)
|
|
|
57.1
|
|
|
19.2
|
|
|
|
|
|
|
|
|
|
|
Severance and other costs(3)
|
|
|
5.1
|
|
|
25.3
|
|
|
|
|
|
|
|
|
|
|
Legal, settlements and related costs(2,3)
|
|
|
9.2
|
|
|
17.5
|
|
|
|
|
|
|
|
|
|
|
IPO-related costs(2)
|
|
|
-
|
|
|
31.0
|
|
|
|
|
|
|
|
|
|
|
Gain on asset sale(3)
|
|
|
-
|
|
|
(11.9
|
)
|
|
|
|
|
|
|
|
|
|
Specified Items before income taxes
|
|
|
71.4
|
|
|
81.1
|
|
|
|
71.4
|
|
|
|
81.1
|
|
|
|
0.35
|
|
|
|
0.40
|
|
|
Income tax impact on items above
|
|
|
|
|
|
|
(25.9
|
)
|
|
|
(24.4
|
)
|
|
|
(0.13
|
)
|
|
|
(0.12
|
)
|
|
Effect of newly issued shares(4)
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(0.04
|
)
|
|
Non-GAAP results
|
|
$
|
754.3
|
|
$
|
760.7
|
|
|
$
|
498.2
|
|
|
$
|
456.3
|
|
|
$
|
2.42
|
|
|
$
|
2.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)All Specified Items are included in the
Corporate and Other segment
|
|
(2)Included in Selling, General and
Administrative expenses
|
|
(3)Included in Other Expenses/(Income)-net
|
|
(4)Prior to Feb. 10, 2009, there were 170.0
million shares of common stock outstanding. The company issued an
additional 34.5 million shares of common stock in the IPO.
|
Mead Johnson Nutrition Company
Investors:
Kathy
MacDonald, (847) 832-2182
kathy.macdonald@mjn.com
or
Media:
Christopher
Perille, (847) 832-2178
chris.perille@mjn.com
© Business Wire 2011
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