Coca-Cola Bottling Co. Consolidated today announced it earned $2.4 million, or basic net income per share of $.26, on net sales of $388.6 million for the first quarter of 2014, compared to net income of $4.9 million, or basic net income per share of $.53, on net sales of $383.6 million for the first quarter of 2013.
The results for the first quarter of 2014 included $0.5 million of after-tax gains ($0.8 million on a pre-tax basis) due to mark-to-market adjustments on commodity hedges, $1.2 million of expenses ($2.0 million on a pre-tax basis) related to franchise territory expansion, and a $0.2 million increase to tax expense primarily due to an increase in the valuation allowance.
The results for the first quarter 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, $0.3 million of expenses ($0.6 million on a pre-tax basis) related to franchise territory expansion, and a $0.4 million decrease to tax expense due to certain favorable tax items associated with the American Taxpayer Relief Act (H.R.8) enacted on January 2, 2013 and other income tax changes.
On a comparable basis, the Company earned $3.3 million in the first quarter of 2014, or comparable basic net income per share of $.36, versus $5.1 million in the first quarter of 2013, or comparable basic net income per share of $.55.
J. Frank Harrison, III, Chairman and CEO, said, "Our business continues to face a challenging market place as consumer tastes and buying patterns evolve. We are focused on evolving with our customers and consumers to ensure that we provide the right products in the right channels at the right price to meet their needs. We continue to innovate and bring new packaging to the market as evidenced by the 253 ml bottle we introduced recently. This package is a smaller serving size designed to attract new consumers and provide existing consumers who want a smaller serving size an alternative. We will continue to innovate and invest in our business in order to drive long-term value growth.
We are also continuing our work on agreements with The Coca-Cola Company for the anticipated franchise territory expansion covered in our previously announced letter of intent. We are excited about the prospect of serving consumers, customers and communities in these new territories as their local Coca-Cola bottler."
