Sweetheart Brands Acquisition
First Half 2013 Reconciliation of Reported to Adjusted Earnings
First Half of Fiscal 2013
As reported (GAAP)
Office consolidation costs (a)
Revaluation of contingent consideration (b)
Amortization of tradenames (c)
Facility closure costs - Hogansville DC (d)
As adjusted (e)
First Half of Fiscal 2012
As reported (GAAP)
Revaluation of contingent consideration (b)
Facility closure costs - Hogansville DC (d)
SG&A
$380.4
(18.2)
(1.9)
(1.0)
(0.6)
(21.6)
$358.8
SG&A
$306.0
% of
sales
34.3%
32.4%
% of
sales
29.9%
(1.8)
(1.8)
(3.6)
$302.4 29.5%
$ in millions, except EPS
Operating
Income
$99.7
18.2
1.9
1.0
0.6
21.6
$121.3
Operating
Income
$88.2
1.8
1.8
3.6
$91.8
% of
sales
9.0%
10.9%
8.6%
Net
Income
% of
Net
sales Income
$61.1
11.4
1.9
0.6
0.4
14.3
$75.4
9.0%
$53.1
1.8
1.2
2.9
Diluted
EPS
$56.0
$1.02
0.19
0.03
0.01
0.01
0.24
$1.26
Diluted
EPS
$0.89
0.03
0.02
0.05
$0.94
Segment Reporting
International % of Corporate
Operating segment Operating
net sales Expenses
Income
As adjusted (e)
(a) Costs related to the office consolidation.
(b) Revaluation of the contingent consideration liability associated with the June 2011 acquisition of Bonnie Togs.
(c) Amortization of H.W. Carter and Sons tradenames.
$12.3
1.9
1.9
$14.2
International % of
Operating segment
Income
net sales
$13.0
1.8
1.8
10.7%
$14.8
12.4%
Segment Reporting
15.5%
($59.5)
18.2
17.6%
1.0
0.6
19.7
($39.8)
Corporate
Operating
Expenses
% of
segment
net sales
(5.4%)
(3.6%)
% of
segment
net sales
($35.0) (3.4%)
1.8
1.8
($33.1) (3.2%)
(d) Costs related to the closure of a distribution facility located in Hogansville, GA, announced in the first quarter of fiscal 2012.
(e) The Company has provided adjusted, non-GAAP financial measurements that present SG&A,
ating income, net income, and net income on a diluted
share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company's results.
The adjusted, non-GAAP financial measurements should not be considered as an alternative to net income or as any other measurement of performance
derived in accordance with GAAP. The adjusted, non-GAAP financial measurements are presented for informational purposes only and are not necessarily
indicative of the Company's future condition or results of operations.
Note: Results may not be additive due to rounding.
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